Track Maintenance

UP performing trackwork in Colorado

Union Pacific plans to strengthen Colorado’s transportation infrastructure by investing $6.5 million in the rail line between Boyero and Limon. The project, funded entirely by Union Pacific, began November 21 and is scheduled to be completed by the end of December.

CP names Demosky as EVP-CFO

Canadian Pacific appointed Bart Demosky to executive vice president and chief financial officer (CFO), effective December 28, 2013; Brian Grassby will retire as the company’s senior vice president and CFO at year-end.

UTU reports Rep. Blumenauer to introduce transit infrastructure bills

It is expected that U.S. Rep. Earl Blumenauer (D-Ore.) will introduce legislation on December 4 to fund U.S. transportation infrastructure in the nation now and into the future, reported the United Transportation Union.

The two bills will establish a series of pilot projects to further study the application of a vehicle-miles-traveled fee and establish a 15-cents-per-gallon increase to the federal gas tax.

“Increased vehicle-fuel efficiency allows for increased demands on our transportation system without contributing as much to its maintenance. An analysis by the Congressional Budget Office based on current driving patterns demonstrates the newest fuel economy standards for automobiles will result in a 21 percent reduction in Highway Trust Fund revenue by 2040,” Blumenauer said.

He pointed to already significant funding challenges and said that Congress has transferred $55 billion in general fund revenues to the Highway Trust Fund to avoid bankruptcy since 2009. When the current authorization expires, the Highway Trust Fund will require almost $15 billion a year in addition to existing gas tax receipts, merely to maintain 2009 funding levels.

“Our failure to adequately fund transportation infrastructure imposes huge costs on American citizens and businesses. Last year, congestion cost urban Americans $87.2 billion a year in time wasted sitting in traffic and higher transportation costs have pushed logistics costs to nearly 10 percent of our gross domestic product. A recent analysis by the American Society of Civil Engineers suggests that the cost of our declining transportation system could result in the loss of 876,000 jobs by 2020. Until we tie our transportation revenues to our transportation demands, this situation will worsen.”

The National Surface Transportation Policy and Revenue Study Commission noted that a vehicle-miles-traveled charge is the “the most promising alternative revenue measure” to the existing gas tax, while the National Surface Transportation Infrastructure Financing Commission reported that “a charge for each mile driven . . . has emerged as the consensus choice for the future.” Both commissions found that this system was efficient at raising revenue.

A number of states, including Oregon, Nevada, Minnesota, Iowa, Texas and New York have tested pilot projects where they charged drivers for the number of miles they traveled rather than the fuel they consumed. The tests have proved convenient for drivers, demonstrated strong protections for personal privacy and have been easily administrable, he says.

 

Gross & Janes begins construction on new crosstie production and treatment facility

Gross & Janes Co. has begun construction of a new $2.2-million crosstie production and borate treatment facility in Camden, Ark. The new facility will replace an existing Gross & Janes crosstie plant and also consolidate production from two other company plants in Taylor, Ark., and Carthage, Texas.

When fully operational after its scheduled completion in March 2014, the plant will employ 15 people and have the capacity to produce 600,000 crossties annually.

“The Camden location was chosen for its logistical advantages in serving three of our largest railroad clients, including Union Pacific, BNSF and Kansas City Southern,” said Mike Pourney, president and CEO of Gross & Janes. “In addition, the surrounding area in southern Arkansas has some of the best oak timber in the country. This area is also home to some of our most productive sawmills.”

Most crossties processed at the new Camden facility will be Gross & Janes’ borate pre-treated crossties called Tuff-Tie. This crosstie is treated with borate using a non-pressurized process prior to drying and shipping to the customer for creosote treatment. The company notes that this two-step treatment process eliminates the cost of pressurized application of borate at the time of creosote application, while also offsetting the amount of oil-based creosote needed for tie protection.

When the new Camden facility opens, the Carthage plant will remain open as a railcar loading facility and the Taylor plant will close.