Railroad News

Despite the COVID-19 pandemic's impact on its bottom line, the Port Everglades' $1.6 billion in expansion and infrastructure improvements are proceeding on track, port officials announced yesterday.

The Florida port's diverse business sectors of cargo, cruise and petroleum helps balance a dip in one business sector, said Glenn Wiltshire, the port's acting chief executive and port director, in a press release.

Washington Metropolitan Area Transit Authority (WMATA) officials yesterday announced that the more than $767 million the agency received in federal pandemic relief funding will enable WMATA to close its current fiscal year with a balanced budget. 

Provided through the Coronavirus Aid, Relief and Economic Security Act (CARES), the funding enables the agency to cover its increased costs related to enhanced safety measures required during the COVID-19 pandemic, which also has led to a drop in fare revenue.

American Public Transportation Association (APTA) leaders and transit industry executives hosted a press call yesterday to explain why they're seeking additional federal stimulus relief to offset transit agencies' extraordinary revenue losses and cost increases related to the COVID-19 pandemic.

APTA recently called on Congress to provide nearly $24 billion in additional emergency funding, while a coalition of some of the nation's largest transit agencies are calling for an additional $32 billion in funding.

Union Tank Car Co. (UTLX) announced plans to convert its tank car manufacturing plant in Sheldon, Texas, into a rail-car repair facility. The company expects to cease manufacturing operations there in August and establish repair operations in 2021. The conversion was prompted by reduced industry demand for new tank cars and an increase in tank car repair needs as shippers rely more heavily on existing cars, UTLX officials said in press release. The Sheldon tank car plant employs about 350 people. The repair facility, when fully operational, is expected to employ about 100 people. 

FreightCar America Inc. reported first-quarter revenue of $5.2 million compared to $70.7 million in Q1 2019. The company logged a net loss in the quarter of $16.9 million, or $1.29 per diluted share, compared to a net loss of $14.0 million, or $1.12 per diluted share, in Q1 2019. The company delivered 11 rail cars, compared to 641 cars delivered in the same quarter last year. “We were obviously disappointed with our delivery figures for the quarter, a result of timing and weakness in the backlog, line startups in the quarter and lost production days at the end of the quarter due to COVID-19,” said Jim Meyer, president and chief executive officer of FreightCar America in a press release. The company withdrew its guidance for FY2020 due to the uncertainty caused by the pandemic. 

The California High Speed Rail Authority’s (CHSRA) first phase of a project to build a high-speed rail system will generate $46 billion in labor income and $131 billion in economic output over the course of the project, authority officials said in a press release.

In 2019, the system generated $600 million in labor income, and produced $1.6 billion in economic output, officials said.

Imports at major U.S. retail container ports are expected to log double-digit year-over-year declines this spring and summer, as the economic impact of the COVID-19 pandemic continues, according to a Global Port Tracker report released last week by the National Retail Federation (NRF) and Hackett Associates.

"Factories in China are largely back online and stores that closed here in the United States are starting to reopen, but volume is far lower than what we would see in a normal year," said NRF Vice President Jonathan Gold in a press release. "Shoppers will come back and there is still a need for essential items, but the economic recovery will be gradual and retailers will adjust the amount of merchandise they import to meet demand."

The Washington Metropolitan Area Transit Authority (WMATA) yesterday released preliminary details of its COVID-19 pandemic recovery plan, a flexible blueprint for ramping up service as the District of Columbia region prepares for recovery.

The recovery plan will follow four phases:

Customers were notified late last week that Union Pacific Railroad is ceasing operations of Cold Connect, a Loup Logistics service that moves refrigerated products from the West Coast to UP's warehouse in Rotterdam, New York.

On May 8, employees were informed that the service would permanently close and most Cold Connect-related positions have been eliminated, said UP spokesman Tim McMahan in an email.

The Massachusetts Bay Transportation Authority’s (MBTA) Fiscal and Management Control Board approved a nearly $159 million contract with Skanska DW White JV to build the Fall River Secondary Line between Fall River and Boston. 

The construction is part of Phase 1 of South Coast Rail, a project to build a new southern line of the MBTA commuter-rail system along several abandoned and freight-only rail lines. The line will connect southeastern Massachusetts and Boston in fall 2023, MBTA officials said in a press release.

Infinity Intermodal has launched a new expedited temperature-controlled intermodal service from Salt Lake City to Chicago. 

The three day, door-to-door service will allow Infinity to provide refrigerated intermodal transport throughout the greater Salt Lake City market, including areas of southern Idaho, company officials announced today in a press release.

Oil, is it? Black gold? Texas tea? I don’t think Jed’s a millionaire anymore … unless he took his money from Mr. Drysdale’s bank and invested in Cushing cash or super-tanker treasure — but not rail car reward.

Some U.S. and Canadian passenger railroads and transit agencies are gearing up to resume regular service as stay-at-home orders are lifted or modified during the COVID-19 pandemic. 

SunRail today resumed regular commuter-rail service in Orlando, Florida, and stepped up train and station cleanings. 

The Massachusetts Bay Transportation Authority (MBTA) on May 18 will close the Blue Line subway route to begin accelerated track and infrastructure work between the Bowdoin and Airport stations in Boston.

The 14-day project will include track replacement to address a speed restriction between the Airport and Maverick stations.

Vermont Rail System (VRS) last week announced it has entered into an agreement with New England Southern Railroad (NES) to purchase certain assets and operating rights from the New Hampshire railroad.

The acquisition will allow VRS to expand freight operations in New Hampshire and build on the development of new rail traffic, VRS officials said in a Facebook post.

The American Public Transportation Association (APTA) is urging Congress and the Trump administration to provide $23.8 billion in additional emergency funding to help U.S. public transit agencies continue to provide essential services as they and the local communities they serve seek to recover from the COVID-19 pandemic.

Although the $25 billion that agencies received under the federal stimulus legislation known as the CARES Act helped address immediate needs under the crisis, the public transportation industry continues to experience increased costs and dramatic revenue losses as the pandemic and related stay-at-home orders continue, APTA officials said in a press release.

San Diego Metropolitan Transit System (SDMTS) Chief Executive Officer Paul Jablonski died yesterday. He was 67. 

The agency announced that Jablonski died suddenly, but did not release further details.