Southern California's Metrolink Board of Directors us initiating a public outreach process for a potential system-wide fare increase to help close an existing $13 million funding gap for Fiscal Year 12-13 budget and Metrolink's proposed Title VI Service Delivery Policy. The public will be asked to give feedback regarding an average system-wide fare increase between five and nine percent to go into effect on or after July 1, 2012.

"Last year, we were able to delay an increase to passenger fares and member agency subsidies while increasing train service by 14 percent. This year, despite continued efficient management practices, our costs have increased mostly because of the rising cost of fuel and an increase in our operations contracts, due to a sweeping nationwide labor negotiation settlement," said Metrolink CEO John Fenton. "A fare increase is a last resort to be able to maintain current service levels. The proposed fare increase will only cover a portion of the funding gap. It would take a 20 percent fare increase to cover the entire funding gap. Metrolink member agencies are also being asked to increase their subsidy to reduce the amount of the fare increase to passengers."

The major increases include:

• $4.7 million increase in fuel costs (in the past two years, Metrolink's fuel costs have increased by 78 percent)

• $3.2 million in increases to contracted vendor costs due to a nationwide labor agreement

• $1.3 million in connecting transit transfer costs for Metrolink riders

• $1.0 million in the Bombardier contract to support the rail reliability program and increased car cleaning costs associated with the additional rolling stock additions to the fleet.

• $2.5 million for post employment benefits, which weren't previously budgeted for

"The current economic climate, including soaring fuel prices, requires tough decisions by transportation leaders to fund operations at a level that will continue to meet the region's transportation needs. Many transportation providers across the country and in the Southern California region are faced with the same challenges and have responded by raising fares up to 35 percent," Fenton said.

This proposed fare increase is separate from the 2004 board adopted policy to restructure fares from a zone-based fee to mileage-based fares over a 10-year period. The phased restructuring is not meant to generate additional revenue for Metrolink, but was implemented to ensure a fair and equitable fare policy. When combined with the proposed five-nine percent increase, this could result in increases of up to 13.58 percent for less than one percent of monthly pass holders and up to 20 percent for less than one percent of one-way or roundtrip tickets.

The Peninsula Corridor Joint Powers Board, the agency that owns and operates Caltrain, will consider a preliminary operating budget at its board meeting on May 3 that will be balanced using one-time funds for the fourth consecutive year.

Caltrain is the only Bay Area transit system without a dedicated source of revenue.

For the past two years, Caltrain has maintained operations in part through one-time only funds. After Fiscal Year 2013, those funds will be gone, which means that that a year from now, Caltrain could face drastic service cuts and fare increases.

"We have not solved our fiscal crisis," said Caltrain Executive Director Mike Scanlon. "We have only delayed it by one year."

The board will review a $111 million proposed budget; no service cuts or fare increases are expected in the coming year.

The proposed budget includes $375,000 to add six new trains to relieve overcrowding during peak commute times. Caltrain's weekday ridership is at a historic high this year with a 12 percent increase and 20 consecutive months of ridership growth. During peak commute times, many of the system's most popular trains have more passengers than seats.

Expenses continue to be conservative. About 54 percent or $59.6 million will be spent on operating the service; 15 percent or $16.8 million on fuel and 12.5 percent or $13.9 million on administrative costs.

Without a dedicated source of funding, Caltrain relies on contributions from its three partner agencies, the city and county of San Francisco, SamTrans and the Santa Clara Valley Transportation Agency, to make up 30 percent or $33.5 million of the proposed operating budget. Fares account for 55 percent or $60.3 million. The remaining funds needed to balance the balance budget vary from year to year. In previous years, Caltrain used savings, one-time grants and extra fare revenue to balance the operating budget.

As the year moves forward, Caltrain will continue to work with its partners and stakeholders to develop strategies for new sources of revenue.

BNSF plans to invest an estimated $202 million on maintenance and rail capacity improvement and expansion projects in Nebraska this year.

BNSF's 2012 capacity enhancement projects in Nebraska include adding a second mainline track in the Grand Island area, beginning work to replace BNSF's bridge over the Missouri River between Plattsmouth, Neb., and Pacific Jct., Iowa, expansion of BNSF's Lincoln locomotive shop, improvements to BNSF's Havelock car shop and significant signal upgrades for federally mandated positive train control.

BNSF will also continue its track maintenance program in Nebraska, which will include 1,405 miles of track surfacing and undercutting work and the replacement of 100 miles of rail and about 140,000 crossties.

"BNSF's investments will improve our ability to provide rail freight services to Nebraska businesses and communities and will expand opportunities to create more jobs and growth for the Nebraska economy," said Matthew Rose, chairman and chief executive officer.

Caltrans, BNSF and Amtrak broke ground on a $38 million rail project that will add 3.8 additional miles of track to the Los Angeles area, increasing efficiency and rail capacity.

The project is fully-funded by an American Recovery and Reinvestment Act grant from the Federal Railroad Administration and is part of a larger $163 million, 15-mile mainline track expansion between the cities of Commerce and Fullerton, known as the Triple Track Project, which lays an additional third track next to two existing lines.

"In a densely populated urban region such as Los Angeles, passenger and freight rail lines often compete for track access," said Acting Caltrans Director Malcolm Dougherty. "This project makes it possible for us to better serve the public by helping to alleviate congestion and improve on-time performance."

Construction of the Triple Track Project is divided into eight segments of mainline capital improvements. In addition to improving safety and reducing noise, completion of all 15 miles of the new track will allow for expanded passenger and commuter rail service through the corridor.

"BNSF and Caltrans share a long-term commitment to improve the efficiency of rail transportation in California," said D.J. Mitchell, BNSF assistant vice president, passenger services. "Investments such as this will help improve rail passenger service, while maintaining consistent and reliable rail freight capabilities within the region."

"Amtrak continues to look forward to the implementation of all track improvements to the Los Angeles-San Diego-San Luis Obispo Rail Corridor," said Michael Chandler, Amtrak general superintendent, Southwest Division.

Norfolk Southern broke ground on the Charlotte Regional Intermodal Facility at Charlotte Douglas International Airport. The facility, which will transfer trailers and containers between trucks and trains, will be capable of 200,000 lifts per year and will replace Norfolk Southern's existing intermodal facility in downtown Charlotte.

"Charlotte is a key hub on the Norfolk Southern intermodal system and on our Crescent Corridor, a new rail intermodal network under development stretching from New Jersey to Memphis and New Orleans," said Norfolk Southern CEO Wick Moorman. "This facility will greatly expand our ability to handle intermodal traffic and move more freight off the nation's overburdened highway system and onto the rails.

"Today's groundbreaking is a big deal for the city of Charlotte and our community," said Charlotte Mayor Anthony Foxx. "Norfolk Southern Corporation and the city of Charlotte have been working on this agreement since it was envisioned 15 years ago by the Airport and Charlotte businesses. This intermodal facility is projected to bring billions in business and places Charlotte even more in the manufacturing, distribution, transportation and economic growth business."

Because its existing 40-acre facility cannot be expanded, Norfolk Southern is building a more efficient, easily expandable, 200-acre terminal between two runways to handle the anticipated growth of intermodal traffic. A new interchange on I-485 that has just been completed will connect the facility to the region's highway system.

The $92-million facility will be constructed with the assistance of $15.7 million in federal funds and some financial support from the state of North Carolina. The Federal Highway Administration, the U.S. Department of Transportation, the North Carolina Department of Transportation and the city of Charlotte provided extensive help in planning the facility. Construction is expected to be completed in late 2013.

Kansas City Southern's subsidiary, The Kansas City Southern Railway Company, received the American Chemistry Council's Responsible Care Partner Award on April 30 at the 21st annual Responsible Care Conference and Expo in Hollywood, Fla.

"KCSR is honored to have been selected for this prestigious award," said KCS president and chief executive officer David Starling. "Moving our customer's freight in a safe and secure manner everyday is a priority for the KCS teams in both the U.S. and Mexico."

KCSR was among three companies to receive the Responsible Care Partner Award, which recognizes the performance and excellent safety record of companies involved in the distribution, transportation, storage, use, treatment-disposal and/or sales and marketing of chemicals. ACC Responsible Care award winners are selected by an external expert committee.

Dallas Area Rapid Transit named Jesse Oliver as deputy executive director and Carol Wise as executive vice president, chief operating officer. DART Senior Vice Presidents David Leininger and Timothy McKay were promoted to executive vice president.

Oliver has a diverse background with experience in labor and employment matters, legislative processes, legal expertise and transit development. A former Texas legislator, Oliver co-sponsored the legislation that created DART. He was later appointed by the city of Dallas to the DART board and served for 10 years as a member and chairman.

Wise, most recently with the New Jersey Transit Authority, has also worked at transit agencies in Washington, D.C., Pennsylvania and Ohio. She has broad transit experience managing bus operations, revenue equipment systems, vehicle maintenance, engineering, security, mobility services and planning. In her new role at DART, Wise will lead bus, light rail, maintenance, mobility management, DART police and materials management.

David Leininger, DART's chief financial officer, has added responsibility for procurement, information technology, risk management and marketing/communications. Leininger came to DART in 2008. He previously served the city of Irving as chief financial officer and managing director of development services and economic Initiatives.

Timothy McKay, previously senior vice president, rail program development, will assume responsibilities of the executive vice president, growth and regional development and will add service planning, as well as a new unit designed to address innovative services. He worked at Lockwood, Andrews & Newnam, Inc., before coming to DART in 2001 as assistant vice president, project management.

Tim Newby, previously the agency's sssistant vice president of bus operations, is now vice president, transportation. He has overall responsibility for DART's bus and light rail operations. He was chief operations officer and assistant general manager of development at Capital Metropolitan Transportation Authority in Austin. He joined DART as assistant vice president of service planning and scheduling in 1997 and moved to bus operations in 2006.

Jacksonville, Fla.-based RailAmerica, Inc., has officially completed its acquisition of Marquette Rail LLC for approximately $40 million. Marquette Rail is based in Ludington, Mich.

RailAmerica, Inc., owns and operates short line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces.

RMI, a GE Transportation company and provider of transportation management software and analytics to the railroad industry, has been selected as a 2012 Top 100 Logistics Technology Company by Inbound Logistics magazine for the seventh consecutive year.

Every April, Inbound Logistics recognize 100 logistics IT companies that support and enable logistics excellence. Inbound Logistics selects the Top 100 logistics IT providers who are leading the way in 2012. All companies selected reflect leadership by answering Inbound Logistics readers' needs for simplicity, ROI and efficient implementation.

Felecia Stratton, editor for Inbound Logistics magazine, said, "RMI consistently provides the kinds of technology solutions Inbound Logistics readers need to successfully manage their global transportation challenges, positioning them for growth, as well as enhancing their ability to compete. As railroads, rail shippers and 3PLs rely more heavily on the latest and most innovative logistics IT solutions, RMI continues to be flexible and responsive, anticipating customers' evolving needs. Inbound Logistics is proud to honor RMI for innovative solutions empowering rail logistics and supply chain excellence."

Kirk Knauff, senior vice president of marketing and services, said, "RMI is honored to be recognized once again by Inbound Logistics as a top logistics technology provider. RMI is dedicated to helping our clients succeed through our deep knowledge of the rail transportation business. As part of GE Transportation's global commercial platform, RMI will continue to offer dynamic and unique software solutions that help our customers solve the world's toughest transportation challenges."