North County Transit District
North County Transit District Delays Sprinter Opening
January 28, 2008

The North County Transit District (NCTD) needs a little more time to put the finishing touches on its Sprinter light-rail line. The agency, which had planned to open the 22-mile Oceanside-to-Escondido, Calif. line this month, now plans to launch service on March 9.

NCTD officials underestimated the time it would take to complete all regulatory safety inspections and compliance approvals, the agency said. For example, diesel multiple unit trains ‹ which NCTD will use for the Sprinter service ‹ have never been operated in California before, so state and federal regulatory agencies have increased scrutiny during inspections, NCTD said.

After the line opens, the agency still will have additional work to do on the line, such as adjusting the eastbound platform at the Escondido Avenue station to more accurately line up with vehicle doors. The project currently is under way and scheduled to be complete in late spring. After Sprinter opens, passengers will be transported to that station via bus until the platform is complete.

The revised start date also will give the operations contractor more time to test the schedule, NCTD said.

(Progressive Railroading)

Utah Transit Authority
UTA Obtains Three Honors for FrontRunner Project
January 24, 2008

The Utah Transit Authority (UTA) recently won three awards for its FrontRunner commuter-rail project.

Intermountain Contractor magazine recognized FrontRunner as the best transportation project and best concrete project in the intermountain region for 2007. And the Associated General Contractors of Utah named FrontRunner the "Transportation Project of the Year."

Scheduled to open this spring, the 44-mile FrontRunner commuter-rail line will run from Salt Lake City to Weber County.

In addition, the general contractors association named Tony Foster, a Salt Lake Commuter Rail Constructors contractor, as superintendent of the year in the highway/transportation division. Foster is the superintendent for UTA's Gateway Hub-TRAX extension.

(Progressive Railroading)

Canadian National/Algoma Central
Algoma Central Obtains Another $4.2 Million in Federal Operating Funds
January 18, 2008

Yesterday, the Canadian government announced it will provide Algoma Central Railway $4.2 million to help cover passenger-rail operating expenses until March 31, 2009.

The Canadian National Railway Co. subsidiary provides service between Sault Ste. Marie and Hearst, Ontario, and carries passengers, staff and supplies to remote commercial lodges and tour points, many of which can only be reached by rail. In 2007, Algoma Central carried 7,800 passengers.

For the past decade, the Canadian government has provided up to $2.1 million annually for the railroad. In 2006, the government awarded Algoma Central an additional $1.5 million to refurbish its fleet.

(Progressive Railroading)

Amtrak
Amtrak and Labor Organizations Sign Tentative Agreement, Averting a Strike
January 18, 2008

Amtrak and representatives of nine labor organizations that were legally free to strike January 30, 2008 have signed a tentative agreement that keeps the national passenger railroad and numerous commuter railroads that are dependent on Amtrak and its facilities in full operation. The National Mediation Board had released the parties from mediation on November 1, 2007, and a Presidential Emergency Board handed down recommended settlement terms December 30.

Details of the tentative pact will be sent to the affected union members for their ratification vote during the next several weeks and will be withheld from public release until the ratification process has begun.

Amtrak President and CEO Alex Kummant said, "Investing in the railroad comes in many forms, and one of the best ways is to invest in its people, which we've done with this tentative agreement. I want to thank the leadership of the labor organizations. It has not been easy for any of us, and I know they share our sense of relief and resolve to move forward in a productive and cooperative spirit to provide excellent passenger rail service. The Amtrak Board of Directors, management and labor are now united in that single purpose. By reaching these tentative agreements, we have averted a possible strike that could have had a crippling effect on the lives of millions of Americans."

The labor organizations that signed the tentative agreements today are as follows:

• Brotherhood of Maintenance of Way Employees
• International Brotherhood of Electrical Workers
• International Association of Machinists & Aerospace Workers
• Brotherhood of Railroad Signalmen
• Joint Council of Carmen, Helpers, Coach Cleaners and Apprentices
• American Train Dispatchers Association
• National Conference of Firemen & Oilers/Service Employees International Union
• American Railway & Airline Supervisors Association (Maintenance of Equipment; Maintenance of Way)

(Amtrak)

Dakota, Minnesota & Eastern
SDCGA names MVP in Agriculture
January 16, 2008

The South Dakota Corn Growers Association (SDCGA) presented Kevin Schieffer CEO of the DM&E Railroad, with the Most Valuable Player in Agriculture Award at their 22nd Annual Meeting Jan. 5 for the tremendous impacts he has made in the industry over the past two decades.

The MVP in Agriculture Award recognizes an individual or organization, which has helped achieve common goals and create milestones and advancement in the agricultural industry.

The access to safe affordable transportation is what makes the United States agriculture competitive on a world market and thanks to Kevin Schieffer, South Dakota corn producers have competition to move their product on two Class I Railroads in South Dakota.

In 1985 the CN&W began proceedings to abandon the rail that ran right through the heart of South Dakota. Schieffer, who as a legislative staffer for Senator Pressler, helped blocked the abandonment through regulatory and legislative maneuvers. Schieffer advised Pressler to convince the CNW to put the line up for sale, which led to the creation of the Dakota, Minnesota & Eastern Railroad in September of 1986.

In the first year of operation, 130 DM&E employees operated on less than 1,000 miles of track and loaded 40,000 carloads. Under Schieffer's leadership and with the hard work of the employees, the DM&E grew to the largest Class II railroad in the nation, with over 1,000 employees and 2,500 miles of track in eight states, loading over 280,000 carloads of freight.

This incredible growth is due in no small part to the leadership of its President & CEO, Schieffer, who continued DM&E's commitment to customer focus.

With rail as the only viable source of transporting ethanol from the new production plants rising up in the Midwestern prairie, DM&E embraced the opportunity and has increased the volumes of ethanol transported. Just as the ethanol industry has grown, so too has DM&E's business in hauling ethanol. In 2000, DM&E transported 4.5 million gallons of ethanol in 150 carloads. In 2007, the company hauled more than 500 million gallons in almost 17,000 carloads.

Today, seven ethanol plants are in production on DM&E's lines. Another five are under construction and several more have been announced.

On September 5, 2007, 21 years after DM&E's first train rolled down the tracks, Schieffer announced the next move for DM&E. It merged with the Canadian Pacific Railway. This move gives South Dakota and our agricultural industry greater access to the Northeast and Pacific Northwest and the grand daddy of it all - competition.

Schieffer too has pressed to expand and upgrade the DM&E. In this effort, he has persevered through multiple challenges and adversity in the eight-year regulatory approval process that included two legal challenges before the 8th U.S. Court of Appeals. And throughout this process, Schieffer insisted it was not the adversaries that "keep me up at night. It is the farmers, communities, supporters counting on this project to get done."

The SDCGA applauds Schieffer for having the tenacity and commitment to have given agriculture and the entire State of South Dakota unlimited opportunities. His vision of what the DM&E could and has become is what will move over a billion gallons of ethanol and millions of bushels of crops. Shieffer's actions have given the next generation of agriculture tremendous opportunity.

Schieffer's ties to production agriculture are more than professional; they are personal in several senses. He was raised on a farm near Crofton, Neb, and he still has family members involved in the industry. He understands the fundamental value of production agriculture to the economy of the State of South Dakota, as well as to feeding and sustaining the nation's and world's populations. He also sees the impact the growing energy crisis will have on American agriculture's ability to feed the world. That's why he's been committed to doing his part to develop more domestic sources of energy, such as biofuels and clean-burning coal.

(South Dakota Corn Growers Association)

High Speed Rail
The Western Hemisphere's First High Speed Rail System
January 16, 2008

The government of Argentina has awarded a contract worth more than $1.48 billion to a consortium led by Alstom Transport to build a high speed rail system, the French Finance Ministry announced today.

The 435-mile line will be the first dedicated high speed system in the Western Hemisphere. It will link the cities of Buenos Aires, Rosario, and Cordoba and use TGV technology. The Alstom-led Veloxia consortium was the sole bidder on the project.

The system, which will operate at speeds from 160 to 186 mph, will be built in two phases and involve upgrading and electrifying existing rights-of-way. Phase 1 covers the double-track Buenos Aires-Rosario line. Phase 2 covers the single-track Rosario-Cordoba line.

Meanwhile, the Argentine government has reportedly approved a $124 million plan to purchase Chinese-built passenger trains for Buenos Aires commuter services. The government will procure 24 multiple units and 160 locomotive-hauled coaches through Shanghai Golden Source International Economic and Trade Company, although the manufacturer of the vehicles has not been named. The first trains could be delivered as early as the end of this year.

(Railway Age)

Ohio Central
Ohio Central Logs Another Double-Digit Traffic Gain in '07
January 15, 2008

The Ohio Central Railroad System (OCRS) had a banner 2006, surpassing the 100,000-carload mark for the first time and registering a 20 percent year-over-year traffic increase. The short-line holding company had an even better 2007.

Although OCRS hadn't yet tabulated last year's traffic as of early January, the company expected carload growth to exceed 2006's 20 percent, according to the inaugural issue of OCRS' quarterly newsletter "Ohio Central Family Ties" released earlier this month.

"It's no secret that our business is very strong witness to the many new trains, cars handled and new customer start-ups across the system in the last year," said OCRS Vice President-Commercial Marty Pohlod in the newsletter. "There are segments of our business experiencing decline, largely attributable to slowness in the home building industry, [and] some railroads' customers are experiencing significant market and/or business model changes that negatively impact carloads. This is an ever-present dynamic that requires continuous new business development while working hard to retain existing traffic."

OCRS owns and operates the Aliquippa & Ohio River Railroad, Columbus & Ohio River Rail Road Co., Mahoning Valley Railway Co., Ohio Central Railroad Inc., Ohio & Pennsylvania Railroad Co., Ohio Southern Railroad Inc., Pittsburgh & Ohio Central Railroad Co., Youngstown & Austintown Railroad Inc., Warren & Trumbull Railroad Co. and Youngstown Belt Railroad Co.

(Progressive Railroading)

Canadian Pacific
Canadian Auto Workers Members OK Strike Mandate at CPR
December 14, 2008

Canadian Auto Workers (CAW)-represented workers at Canadian Pacific Railway on Friday overwhelmingly voted in favor of launching a strike if the union and railroad can't reach an agreement by 12:01 a.m. on Jan. 29.

The current contract between the union ‹ which represents 2,500 shopcraft workers at the railroad ‹ and CPR expires Jan. 28. The parties have been negotiating a contract since September and remain far apart on concessions, the CAW said.

"[After] years of record-breaking profits, we feel it's time for CP to come to the table and give members their just reward for their years of hard work," said CAW Local 101 President Tom Murphy in a prepared statement.

(Progressive Railroading)

Kansas City Southern de Mexico
KCSM Participates in Opening of New SLP Intermodal Terminal
January 11, 2008

On January 4, KCSM president and executive representative Jose Zozaya, along with Mexico's secretary of communications and transportation Luis Tellez and Governor Marcelo de los Santos of San Luis Potosi participated in the grand opening of a new intermodal terminal in San Luis Potosi. The new terminal, located in the 2,000 hectare Logistik Industrial Park, is two miles south of Interpuerto, a KCSM-served intermodal facility. The Logistik Industrial Park is home to a large new General Motors assembly plant with direct access to KCSM. The new GM facility will begin operations in May 2008.

Zozaya was given the opportunity to speak at the event and two KCSM locomotives served as a backdrop. In his remarks, Zozaya voiced KCSM's willingness to work with the SCT to make the railroad more efficient, as well as KCSM's support for President Calderon's national infrastructure plan. He mentioned KCSM's continued work with San Luis Potosi to move the yard out of the center of the city and KCSM's investments in new locomotives and other strategic projects. Following the event, dignitaries had an opportunity to see these investments firsthand with a tour of the new locomotives and a visit to Interpuerto.

In his remarks, Secretary Tellez was supportive of KCSM. He spoke positively of KCSM's commitment to resolve issues and of the importance of Lazaro Cardenas, the strategically-important port served by KCSM. Tellez mentioned that President Calderon was recently in Lazaro Cardenas for the opening of the new Hutchison facilities.

(Kansas City Southern)

Amtrak
Amtrak Releases Feasibility Study of State-Supported Rail Service to Illinois Quad Cities
January 7, 2008

Amtrak has completed a report requested by the Illinois Department of Transportation (Ill. DOT) that evaluates possible passenger train routes between Illinois Quad Cities (Moline-Rock Island) and Chicago. This "Feasibility Report on Proposed Amtrak Service, Quad Cities-Chicago" is also in response to a January 2007 town meeting in Rock Island, hosted by U.S. Sen. Dick Durbin (D-Ill.), who was joined by Amtrak and Ill. DOT representatives, labor officials and leaders from Illinois and Iowa.

In the report, the approximate cost of upgrading the railroad infrastructure to accommodate passenger train speeds is $14-to-23 million, over the shortest, fastest and least costly of the potential routes. Not included in this figure are any capital expenses for railcars and locomotives, nor the local costs of providing stations.

Annual ridership on the route is estimated to be nearly 111,000 if improvements are made allowing maximum speeds of 79 mph, based upon two daily round-trips.

The annual state operating cost for the possible routes is in the $6-million range. Quad Cities-Chicago travel times of about 3 1/2 hours are possible and would be competitive with automobile driving, dependant on the choice of routes, agreements with host railroads and required infrastructure improvements. Excerpts from the report and a map are attached. An executive summary of the report is now/will be available this week on the Ill. DOT and Amtrak websites.

"Amtrak and the State of Illinois have seen tremendous growth in passenger rail ridership since Gov. Rod Blagojevich and the Legislature increased funding for state supported routes in 2006," said IDOT Secretary Milton R. Sees. "These gains indicate there is a significant and growing demand for passenger rail service across the state. At a time when everyone is becoming more conscious of the need to conserve fuel, passenger rail moves people efficiently, helps reduce traffic and is good for our environment."

"Last year, we held a meeting that showed us that the Quad Cities are committed to bringing Amtrak back to the area," said Sen. Durbin. "Today, we have a feasibility study that shows us that adding rail service between the Quad Cities and Chicago will give businesses and tourists a time competitive and convenient alternative to driving. Amtrak already provides quick, cost-effective, and reliable public ground transportation to 30 communities in the state ‹ it's time to add the Quad Cities to that list."

"The first passenger rail train pulled into the Quad Cities more than 150 years ago," said Congressman Phil Hare (D-Rock Island). "It's time for it to return to this area. In addition to providing an affordable method of transportation between the Quad Cities and Chicago, our region could be an important gateway to Iowa City, Des Moines and Omaha as we continue to invest in transportation infrastructure."

Amtrak has never operated scheduled trains to the Quad Cities, which lost its Rock Island Railroad passenger rail service in 1978. The feasibility report found the most promising route between the Quad Cities and Chicago would be over a portion of the former Rock Island Railroad now owned by Iowa Interstate Railroad (IAIS) from the Quad Cities to a proposed track connection to the BNSF Railway near Wyanet, Ill.

The cost of restoring the entire former Rocket/Quad Citian route from Rock Island to Chicago via Joliet, Ill., is nearly quadruple the expense of the proposed IAIS/BNSF route. It would attract an estimated 26,500 fewer passengers and use five carriers on a route estimated to be more than 90 minutes longer than the combination of IAIS and BNSF with Amtrak.

The choice of the IAIS/BNSF route is also enhanced by taking advantage of recently improved Amtrak stations at Princeton, Mendota and Naperville, Ill. Station stops would be determined by Ill. DOT, which has been working with Quad Cities leaders and their consultant on the best choice for a station location in the Moline-Rock Island area.

"We look forward to taking the next step, which would involve negotiations with host railroads, development of detailed capital plans and funding requests," said Alex Kummant, Amtrak President and CEO. "This is the same procedure we laid out in the case of last year's Amtrak report on restoring Ill. DOT-supported service to Rockford and Dubuque (Iowa)."

Later this year, in response to a request from Iowa officials, Amtrak will release a version of this report that considers the feasibility of extending the western terminus of this route from the Quad Cities to Iowa City. Also this year, Amtrak will fulfill the Ill. DOT request for a feasibility report on providing state-supported service between Peoria and Chicago, which also lost its passenger rail service by the Rock Island Railroad in 1978.

The report can be downloaded here: http://www.amtrak.com/pdf/QuadCitiesReport_ExecSum.pdf

(Amtrak)