Freight

House passes S. 808; next stop: the President

The U.S. House of Representatives on Dec. 10, 2015 passed S. 808, the Surface Transportation Board (STB) Reauthorization Act of 2015, which among other provisions, will increase the number of STB members from three to five, improving STB’s structure and decision-making processes by allowing, with proper disclosure, board members to speak with one another about cases on which the STB is ruling.

CP sweetens deals; NS says “no” again

Canadian Pacific’s pursuit of Norfolk Southern has taken on the tone of a rough-and-tumble yet well-intentioned star athlete pulling out all the stops to capture the heart of his dream woman, a relationship-shy political science major who continues to resist her suitor’s advances with perfectly logical yet unemotional reasons why the two aren’t right for each other.

NS to CP: Proposed merger “a poor combination”

Refuting practically every purported benefit that Canadian Pacific has given, and citing substantial regulatory risks and uncertainties as well as many other negatives, Norfolk Southern on Dec. 4, 2015 loudly and firmly rejected CP’s proposal to merge the two railroads into a transcontinental.

Apache Railway sold

The 98-year-old Apache Railway Company, a shortline railroad operating in Navajo County, Ariz., has been purchased by an entity formed by Aztec Land and Cattle Company Limited and related entities.

Gulf & Ohio Railways to operate Global Trans Park Rail Line in North Carolina

After a competitive solicitation for proposals to market and operate the state-owned Global Trans Park (GTP) railroad line in Lenoir County, the North Carolina Department of Transportation (NCDOT) selected Gulf & Ohio Railways, Inc. (G&O). The NCDOT Board of Transportation approved the new GTP Lease & Operating Agreement at its Nov. 5, 2015 meeting. Under the terms of the agreement, G&O will operate, maintain and market freight service on the GTP line.

R&N to own, operate track in Humboldt Industrial Park

Reading Blue Mountain & Northern Railroad (R&N) announced on Nov. 24, 2015 that it will take over ownership of the rail infrastructure at the Humboldt Industrial Park beginning Jan. 1, 2016 through an agreement with the park’s owner, CAN DO, Inc., according to CAN DO President Kevin O’Donnell and Andrew Muller, Jr., owner and CEO of the rail company.

In addition to owning and maintaining all of the track, R&N will also provide service to all of the customers in the industrial park.

CAN DO entered into an agreement in 2012 with R&N to take ownership of the more than seven miles of rail line inside Humboldt at the end of 2016. As a result of negotiations between the park’s current rail provider, Norfolk Southern Railroad Company (NS), and Reading & Northern, the timeline was accelerated to Jan. 1, 2016, O’Donnell said.

Muller said R&N plans to run a scheduled service, but will provide additional rail switches when business needs warrant them. The company will also offer railcar storage and personalized service for each business customer. Muller noted that all traffic to Humboldt Industrial Park will be received at Reading and move directly to Humboldt via Tamaqua and that no traffic to Humboldt should move through downtown Hazleton.

“Each customer will have their own local account representative who can assist them with all their rail needs and any issues that arise,” said Wayne Michel, R&N’s President. “At Reading & Northern the customer comes first and Humboldt customers will learn what our existing customers already know—our service is superior to that of any other railroad. Every Humboldt customer will be visited at least twice before we take over service. During those visits we will get to understand their needs. We will then design a service plan that guarantees every customer a service window and up to six-days-a-week service that meets their needs,” Michel said.

O’Donnell said CAN DO is excited to have R&N as a partner in its economic development efforts to attract new industry to Greater Hazleton. “Rail service is critical to many companies and has been instrumental in the growth of our industrial parks. The new provider promises to be an asset in our future growth.”

“As for potential customers, we will follow-up on all opportunities with our award-winning industrial development team. Reading & Northern, like CAN DO, has a national reputation for its innovative approach to economic development. We have won national awards for our efforts to attract business to the railroad,” Michel said. “We make investments in plant and equipment and we assist customers with their development. We also work to make rail infrastructure decisions easy by charging less for the needed rail work and being more flexible on track design. We have a strong team focused on industrial development and that team will work hand in hand with CAN DO.”

CAN DO constructed the 7.5 miles of track in its Humboldt Industrial Park, which is the region’s largest rail-served industrial park. CAN DO launched the rail service more than 40 years ago with a $165,000 matching grant from the Appalachia Regional Commission and has extended the track numerous times since. Currently, more than 15 industries are dependent on rail service to the park. In 2013, 4,569 rail cars moved through Humboldt and the number increased to 4,633 last year.

R&N is known nationwide for its commitment to working closely with economic development organizations. Michel said the company is proud to continue this approach in its partnership with CAN DO.

R&N is the largest privately owned railroad company in Pennsylvania and was the only railroad to be named Regional Railroad of the Year three times by Railway Age, receiving the honor in 2002, 2011 and 2015.

Glassman named CSX VP-strategy

CSX Corporation appointed Drew Glassman as vice president-strategy. Glassman brings 25 years of experience in corporate finance to his new role, in which he will oversee company-wide initiatives that position CSX for success.