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Jul
19

Kansas City Southern posts higher profit, flat carload volume in Q2

Rail News Home Kansas City Southern 7/19/2016 Rail News: Kansas City Southern Kansas City Southern's second-quarter 2016 revenue declined 3 percent to $569 million, but operating income jumped 18 percent to $220 million compared with the same period a year ago, the Class I announced this morning. Excluding the estimated impact of Mexican peso depreciation and lower U.S. fuel prices, KCS' revenue rose 2 percent compared with the previous year's quarter, company officials said in a press release.Adjusted diluted earnings per share rose 18 percent to $1.22 for the quarter compared with a year ago, beating the Zacks Consensus estimate of $1.04.Net income for the quarter came in at $120 million, or $1.11 per diluted share, compared with $112 million, or $1.01 per diluted share a year ago.Carload volumes remained flat for the quarter compared with the year-ago period.Operating expenses dropped 13 percent to $349 million; however, excluding the peso depreciation and U.S. fuel price impacts, operating expenses fell 7 percent.KCS posted an operating ratio of 61.3 percent for the quarter, a 6.8-point improvement over second-quarter 2015's operating ratio."On balance, we were pleased with our second quarter 2016 results, particularly with the positive volume trend experienced during late May and the entire month of June," said KCS President and Chief Executive Patrick Ottensmeyer.KCS' carload numbers increased 2 percent last month and ended unchanged with second-quarter 2015 largely due to "continued good performance" in chemicals, petroleum, agriculture and minerals business units, as well as a stronger automotive business late in the quarter, Ottensmeyer said.Flooding in the Houston area affected customer service for the second consecutive quarter, he said."While bridge repairs were being made, KCS had to detour considerable traffic onto other carriers' routes," he said. "Again, we thank our railroad partners for their cooperation, as well as commend KCS transportation personnel for their efforts in keeping our service mostly fluid in the face of significant challenges." Contact Progressive Railroading editorial staff. More News from 7/19/2016

Jul
18

UP seeks input on communication center standards

Union Pacific Railroad is soliciting public comments on its Response Management Communications Center (RMCC) as part of a required assessment to maintain the center's accreditation.

The center centralizes UP's responses to critical incidents 24 hours a day, seven days a week. The center is accredited by the Commission on Accreditation for Law Enforcement Agencies (CALEA).

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Jul
15

NTSB: BNSF trains collided after one train missed a red light

Two BNSF Railway Co. trains collided head-on in Panhandle, Texas, last month after one of the trains missed a stop signal, the National Transportation Safety Board (NTSB) announced yesterday in a preliminary report.

Three crew members died when the eastbound and westbound trains collided at 8:21 a.m. June 28 in BNSF's Panhandle Subdivision. The collision caused the derailment of the locomotives and several cars from both trains, and resulted in a significant fire.

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Jul
14

CSX: Q2 revenue down 12 percent due to lower volumes

CSX Corp.'s second-quarter 2016 revenue declined 12 percent to $2.7 billion, driven by a 9 percent decrease in volume that affected all markets but especially coal, which plummeted more than 30 percent.

The company yesterday posted Q2 net income of $445 million, or 47 cents per share, down from $553 million, or 56 cents per share, in the same period last year.

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Jul
12

From the editor: Rail rides the uncertainty curve

— by Pat Foran, editor

Class I second-quarter earnings announcements were two to three weeks away as we prepared to finish our July issue, but Class I execs already had let the world know that the year-over-year comparisons weren’t going to be good. They told us that in April during their Q1 earnings conferences and reminded us last month.

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Jul
07

NS settles hiring discrimination case

Norfolk Southern Corp. will pay nearly $500,000 to 2,086 African-Americans as part of a settlement agreement with the U.S. Department of Labor to resolve allegations of race-based hiring discrimination, federal officials announced yesterday.

The case involves an NS business unit in its engineering department, Maintenance of Way No. 34, which entered into the agreement with the department's Office of Federal Contract Compliance Programs (OFCCP). NS is a federal contractor that has had more than $10 million contracts with the Federal Highway Administration, U.S. Department of the Navy, U.S. Department of Air Force and U.S. Fish & Wildlife Services.

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Jul
07

Melford Atlantic Gateway terminal will serve U.S., Canadian markets via CN

SSA Marine, Melford International Terminal and Cyrus Capital Partners LP announced yesterday the formation of a joint venture that will construct a container terminal as part of the Melford Atlantic Gateway project in Nova Scotia.

The new 315-acre marine container terminal will be built at the Strait of Canso, Nova Scotia, and will become the closest North American port on the circle route to Europe and Asia via the Suez Canal, the companies announced in a joint press release.

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Jul
05

NS exec to meet with manufacturers in China

Robert Martinez, Norfolk Southern Corp's. vice president of business development and real estate, will be in China this week to meet with business leaders who are considering locating their manufacturing plants in the United States, NS announced yesterday.

Martinez plans to meet with a range of Chinese companies, including manufacturers of automobiles, tires, chemicals, tissue and metals.

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Jul
05

Food Logistics recognizes UP's sustainable shipping practices

Union Pacific Railroad was recognized last week by Food Logistics as a "Top Green Provider" for delivering fresh food and beverages, the Class I announced last week.

UP is the first large North American railroad to receive the recognition. The publication's annual list recognizes companies whose products, services or leadership enhances sustainability within the food and beverage industry, UP officials said in a press release.

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Jul
01

CP to lay off 500 MOW workers

Canadian Pacific yesterday began laying off 500 track maintenance workers, the Teamsters Canada Rail Conference announced on its website.

The "temporary layoffs are the result of lower car volumes and a softening demand in a lackluster North American economy," said CP Assistant Vice President of Public Affairs and Communications Martin Cej in a prepared statement to CBC News, which the union also posted on its website.

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Jun
30

Remains of two BNSF employees recovered at Texas crash site

The remains of two BNSF Railway Co. crew members involved in a train collision on Tuesday have been recovered, the railroad announced yesterday.

A third crew member is still unaccounted for, while a fourth crew member is in "stable" condition at a local hospital, BNSF officials said in a post on the company's website.

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Jun
29

BNSF trains collide in Texas

Two BNSF Railway Co. trains were traveling on the same track when they collided head-on yesterday morning near Panhandle, Texas.

Three crew members are missing, and one crew member was injured after he jumped from the train before the collision, according to local news reports. Each train had a conductor and an engineer on board.

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Jun
28

Joint venture to construct intermodal fuel terminal in Beaumont, Texas

Green Plains Inc. and Jefferson Gulf Coast Energy Partners have formed a joint venture to construct and operate an intermodal fuels terminal at Jefferson's existing terminal in Beaumont, Texas.

The 50-50 joint venture is expected to invest about $55 million in the project's first phase, which will focus on storage and throughput capabilities for multiple grades of ethanol, according to the companies' press release.

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Jun
28

Joint venture to construct intermodal fuel terminal in Beaumont, Texas

Rail News Home Kansas City Southern 6/28/2016 Rail News: Kansas City Southern Green Plains Inc. and Jefferson Gulf Coast Energy Partners have formed a joint venture to construct and operate an intermodal fuels terminal at Jefferson's existing terminal in Beaumont, Texas.The 50-50 joint venture is expected to invest about $55 million in the project's first phase, which will focus on storage and throughput capabilities for multiple grades of ethanol, according to the companies' press release.In the future, the joint venture is expected to add to its capabilities the managing of multiple liquid products for import and export, including liquid hydrocarbons, vegetable oils and other non-liquid commodities."As demand for the products we produce continues to grow both globally and domestically, we want to create a world class solution to service our customers," said Green Plains President and Chief Executive Officer Todd Becker. The new terminal will have access to three Class Is, barges, and inbound and outbound vessels, he noted. The facility will be served by BNSF Railway Co., Kansas City Southern and Union Pacific Railroad.Green Plains Trade Group will be the joint venture's anchor customer. The terminal will serve other exporters, as well, said Jefferson President and CEO Greg Binion."This project will add the necessary infrastructure at Jefferson Beaumont to distribute ethanol to markets worldwide," Binion said. "We are confident that Jefferson’s multimodal capabilities and sustainable cost-advantaged logistics will contribute to the success of this joint venture." Contact Progressive Railroading editorial staff. More News from 6/28/2016

Jun
28

CN appoints Jobin to board, announces new roles for Cory, Houle

CN's board announced yesterday that incoming President and Chief Executive Officer Luc Jobin has been been named a board director. Jobin will take over the company's top executive position on Friday.

Jobin will succeed Claude Mongeau as president and CEO. As a board director, Jobin replaces Mongeau, who announced earlier this month that he would step down from his post due to health reasons.

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Jun
27

STB: CSX must report blocked crossings on Chicago rail line

CSX will need to submit monthly reports for the next year that detail situations in which grade crossings are blocked by trains on its line in southwest Chicago and adjacent suburbs, the Surface Transportation Board (STB) ruled last week.

The STB ordered that CSX can’t operate trains into or out of the Chicago terminal over the Elsdon Line unless the line is clear, according to the agency's decision.

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CSX
Jun
27

UP unveils infrastructure projects for Minnesota, Montana and Wisconsin

Union Pacific Railroad last week announced plans to upgrade its infrastructure this year in Minnesota, Wisconsin and Montana.

Between 2011 to 2015, the Class I has invested more than $50 million in Minnesota, $46 million in Wisconsin and $5.8 million in Montana on infrastructure improvements, according to UP press releases.

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Jun
23

Lac Megantic won't pursue legal action against CP for train disaster

Lac Megantic, Quebec, city officials have decided they will not pursue legal action against Canadian Pacific for the July 2013 crude-oil train disaster that killed 47 people.

The Lac Megantic city council voted Tuesday to drop all possible charges against the Class I, according to a press release posted on the city's website.

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Jun
23

Meridian Speedway rail line preps for upgrades in Louisiana, Mississippi

Meridian Speedway LLC, a joint venture between Kansas City Southern and Norfolk Southern Railway, will invest $28 million in construction and improvements on the Vicksburg and Meridian subdivisions, KCS announced yesterday.

The joint venture is a 320-mile rail line between Meridian, Miss., and Shreveport, La., offering end-to-end steel wheel interchange for intermodal customers.

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Jun
23

Meridian Speedway rail line preps for upgrades in Louisiana, Mississippi

Rail News Home Kansas City Southern 6/23/2016 Rail News: Kansas City Southern Meridian Speedway LLC, a joint venture between Kansas City Southern and Norfolk Southern Railway, will invest $28 million in construction and improvements on the Vicksburg and Meridian subdivisions, KCS announced yesterday.The joint venture is a 320-mile rail line between Meridian, Miss., and Shreveport, La., offering end-to-end steel wheel interchange for intermodal customers.The upcoming work involves the replacement of 6 miles of rail and 83,000 cross ties; improvements to more than 90 road crossings between Gibsland, La., and Vicksburg, Miss.; and upgrades to bridges between Shreveport, La. and Meridian, Miss., KCS officials said in a press release.The cross tie and road crossing projects will begin June 27 and continue through mid-August. The bridge work got underway earlier this year."KCS, through its U.S. and Mexican subsidiaries, continues to invest in capital projects to expand network capacity, keep maintenance in a regular and healthy cycle, and enhance the safety of our operation," said KCS Chief Executive Officer David Starling. "These investments also help us be an economic growth partner to our customers and the communities through which we operate." Contact Progressive Railroading editorial staff. More News from 6/23/2016