Better scheduling, increased rail car access improve CP’s grain franchise

Canadian Pacific has improved service for its Canadian grain customers this crop year by reducing scheduling variability and increasing access to rail car supply. Crop year-to-date, empty order fulfillment, a metric that highlights rail car availability, has increased by 19 percent or 11,000 units versus a year ago.

KCS de Mexico recognizes nine customers for reducing their carbon footprint

At the second annual awards ceremony in Mexico City on December 6, Kansas City Southern de Mexico recognized ArcelorMittal, Cemex, Dow Química Mexicana, ExxonMobil, Mexichem, M&G Polímeros, Petróleos Mexicanos, Ternium and Vitro. By choosing to use rail on shipments that could have moved by truck, these companies reduced their carbon footprint by avoiding the generation of 316,823 tons of CO2 by shipping their freight via rail.

Congressman reintroduces Freight Mobility bill

Congressman Adam Smith (D-WA) reintroduced the National Freight Mobility Infrastructure Act, H.R. 3607, that will ensure federal support for the national freight mobility network and critical freight infrastructure and transportation improvements throughout the United States.

"America’s freight transportation system is a national asset and critical to our productivity and global competitiveness," said Rep. Smith. "Over the next 20 years, it is estimated that the volume of domestic freight will double while international freight will triple. This bill ensures our freight and transportation infrastructure remains competitive and strengthens economic growth."

This legislation creates the Freight Mobility Infrastructure Improvement Program within the U.S. Department of Transportation to provide long-term financing for critical infrastructure improvement goals. Through it, states, ports and regional transportation authorities would work in collaboration with non-governmental stakeholders and freight transportation industry entities to identify high-priority projects and apply for funds. The Secretary of Transportation would then competitively award grants based upon a project’s impact on freight mobility improvement, cost effectiveness and regional/national economic impact.

"Our multimodal freight transportation system is a national asset that we have failed to appreciate and support. Nowhere is this need more pressing than in the freight system that provides for our nation’s commerce," said Port of Tacoma Commissioner Don Meyer.

Funds for this program would be generated by a freight-specific user fee and deposited into a newly-created National Freight Mobility Infrastructure Fund exclusively dedicated to supporting freight mobility projects. The fee would be imposed at a rate of one percent on the fair market value of multi-modal ground transportation costs, with a few exceptions for federal, state and local government transportation and transport within a local geographic area.

 

VTA Board awards $772 million design build contract for BART extension project

The Santa Clara Valley Transportation Authority’s Board of Directors unanimously voted Thursday, December 8, 2011, to award the first major contract for BART Silicon Valley, to Skanska-Shimmick-Herzog a Joint Venture.This first contract includes completing the design and construction of the line, track, systems and stations for the 10-mile Berryessa Extension Project, the first phase of the 16-mile BART Extension into Santa Clara County.

"Today’s vote by the VTA Board keeps faith with the voters and taxpayers of Silicon Valley, who cast visionary votes in 2000 and 2008 that made the dream of BART service to Silicon Valley a reality," said Silicon Valley Leadership Group CEO Carl Guardino.

The decision marks a key project milestone and will immediately generate local jobs. Nearly 5,500 jobs will be created during the construction of the line, track, systems and stations elements of the Berryessa Extension. An additional 4,000 indirect jobs are created due to activities related to this contract and 3,800 more jobs are created to support construction of the station campus areas, access roadways, parking structures and transit centers.

"The extension of BART into the South Bay is the priority project in VTA’s Measure A Transportation Improvement Program. Skanska-Shimmick-Herzog a Joint Venture, was able to propose constructing the Berryessa Extension at $77 million less than the engineer’s estimate while also accelerating the construction schedule, making it possible to deliver BART sooner than 2018," stated Margaret Abe Koga, chair, VTA Board of Directors.

Skanska-Shimmick-Herzog a Joint Venture brings more than 150 years experience to the project management team.

VTA is seeking a $900 million federal grant for the Berryessa Extension Project from the Federal New Starts funding program and anticipates receipt of it early next year. The grant will complete the funding plan and enable major construction to begin by mid-2012. BART Silicon Valley’s Communications and Outreach team will conduct public meetings prior to commencement of major construction activities. VTA continues project development activities for the second six-mile phase of the project that includes a 5.1 mile-long subway tunnel through downtown San Jose and ends in Santa Clara near the Caltrain Station. Construction on the second phase of the project will commence as additional funding is secured.

CP extends clean energy supply chain

Canadian Pacific Logistics Solutions developed a new wind energy supply chain connecting manufacturers in Quebec, Canada, and Florida with a new clean energy transload facility in upper New York state.

"CPLS has demonstrated competence and expertise in the movement of these super-sized dimensional wind energy components," said Stephen Whitney, vice president market development. "Our end-to-end logistics solution creates value and drives service to new levels for these specialized customers."

The new supply chain connects wind tower sections produced in Trois Rivière, Québec, Canada, and machine heads produced in Pensacola, Fla., move in dedicated unit trains or multiple car blocks using specialized railcars to a dedicated transload facility in Plattsburgh, N.Y. The components will then travel by truck to the wind project site in Pennsylvania. CPLS coordinates the entire logistics process, including permitting, scheduling, transloading, trucking and freight rail movements.

Rail will benefit from Governor Cuomo’s $785 million Regional Council funding

New York State awarded $785 million for the Regional Economic Development Council initiative, continuing New York Governor Andrew Cuomo’s efforts to redesign the way state government works in order to drive economic growth and create jobs.

Announced in July, Regional Councils represent a fundamental shift in the state’s approach to economic development from a top-down development model to a community-based, performance-driven approach, which empowers individual areas to develop comprehensive strategic plans that invest in regional solutions to create jobs and economic growth. As part of the Regional Council process, a Strategic Plan Review Committee was chosen to analyze and rank the strategic plans for each region competing for $200 million in specially targeted economic development funding.

The plans are the result of months of consideration by the Regional Councils and input from the public in each region. The process included holding more than 100 public meetings, forums and community workshops across the state. Thousands of New Yorkers contributed to the development of the plans through these events.

Consistent with the Governor’s Executive Order issued earlier this year to increase Minority and Women Business Enterprise participation in state contracting, all projects awarded grants through this initiative must use best efforts to reach the goal of 20 percent MWBE participation.

Southern Tier awarded up to $49.4 million

The Southern Tier Regional Council developed a vision for economic growth and job creation that builds upon the region’s strengths. This includes, $1.8 million to the Wellsboro & Corning Railroad Co. for the restoration of mainline railroad track and the reconstruction of a former second main track. This project will help advance necessary improvements in transportation infrastructure, allowing the railroad to continue to provide timely, efficient and environmentally-friendly service to rail commuters in the Southern Tier.

Additionally, $1.5 million will go toward the rehabilitation of the Utica line between Broome and Chenango and Bath & Hammondsport to provide timely and efficient rail service to industries in the Southern Tier.

North Country was named Best Plan Awardee and will receive $103.2 million

The North Country Regional Council Strategic Plan provided a long-term roadmap to attract private investment, promote and facilitate connectivity between communities and create a climate that will allow entrepreneurs to flourish. Funds of $9.9 million will rehabilitate the Newton Falls Rail Project to rehabilitate and reopen the 46-mile Newton Falls Rail Line. This project will restore and enhance the most efficient, environmentally-friendly and reliable form of transportation, at the most cost-effective price, to service the paper mill at Newton Falls and the operations at Benson Mines.

Additionally, $2.5 million will support Bombardier’s expansion of their main plant in Plattsburgh, which will increase their capacity for new contracts. The project includes a 57,000 sq.-ft. increase of the main plant, a 2,100 sq.-ft. expansion at the off-site testing facility and electrification of an additional half mile of railroad track at the test facility.

Capital Regional was awarded $62.7 million

The Capital Region Economic Development Council Strategic Plan presented a vision to collaborate locally and make the region globally competitive and economically vibrant.

Funds of $2.2 million will support the development of a rail transloading facility in Columbia County, which will serve businesses in the Capital Region that do not have rail access. The project will allow businesses to transfer products from trucks to rail cars for outgoing purposes and to move incoming products.

Additionally, $4 million will construct the Ronkonkoma-MacArthur Transit Hub project, providing for a new sewage treatment plant and allowing construction of a new transit-oriented, live-work-play destination in a blighted area. This project will also strengthen ties between Suffolk’s busiest rail station and LI MacArthur Airport.

BNSF names Andersen AVP, Community and Public Affairs

BNSF named Zak Andersen assistant vice president, community and public affairs, effective January 16, 2012, reporting to John Ambler, vice president, corporate relations.

Andersen will oversee the public affairs team within the corporate relations department, with additional responsibility for community relations, public policy messaging and public affairs communication and strategy. To better integrate BNSF’s community activities with its contribution programs, Andersen will also work to manage the BNSF Foundation, under the leadership of Ambler, who will continue to serve as president of the foundation.

"Zak Andersen is an insightful leader," said Ambler. "With his deep understanding of national public policy issues and how to effectively interact with community interests, we expect to further enhance relationships with our stakeholders and their support for the railroad."

Andersen joined BNSF in March 2006 as director, federal government affairs. He was promoted to assistant vice president, federal government affairs, in November 2008, with responsibility for federal legislative matters primarily related to economic regulation, energy and environmental issues.

CP expands Saskatchewan Bakken rail shipments

Canadian Pacific is expanding the transportation of crude oil by rail from the Saskatchewan Bakken Formation.

CP is now increasing volumes of crude oil movement by rail out of the Saskatchewan Bakken oil formation through a new CP transload facility, operated by Bulk Plus Logistics in Estevan. This is in addition to railcar loads already moving out of the Dollard, SK, transload facility, located on the Great Western Railway, a shortline partner of Canadian Pacific. This oil is destined to various refineries in both Canada and the United States.

The Bakken Formation, encompassing sections of Saskatchewan and North Dakota, is a key area of focus for Canadian Pacific and part of the railway’s growing energy portfolio. In the past three years, CP has demonstrated its ability to deliver crude oil by rail. Volumes of rail shipments out of North Dakota, for example, have grown from roughly 500 carloads in 2009 to more than 13,000 carloads in 2011. This is expected to grow to 70,000 annual carloads in the future.

"To move the crude by rail opportunities to the next level, CP will take what it has learned and the products developed in North Dakota and apply them in the emerging Saskatchewan and Alberta Bakken markets," said CP Energy and Merchandise VP Tracy Robinson. "The model we developed in North Dakota is proven and we’re now bringing that north. To fully capitalize on these opportunities, CP has established a specialized Energy Development Team to proactively position CP’s products and capabilities in this rapidly emerging market place."

CP is investing more than $90 million (US$88.5 million) to enhance capacity on its U.S. mainline south of Saskatchewan, through North Dakota and into Minnesota to handle anticipated increased Bakken crude shipments. This includes upgraded track and sidings.

 

STB initiates second independent audit of CN’s EJ&E acquisition

The Surface Transportation Board has initiated a second independent audit to verify the Canadian National’s monthly operational and quarterly environmental reports to assist the board in monitoring the impact of CN’s acquisition of the EJ&E West Co.


This second audit will focus on the information in CN’s operational reports for the months of November and December 2011 and on CN’s 4th Quarter 2011 Environmental Report. The audit will evaluate CN’s progress in constructing rail improvements, progress in road closure issues and grade crossing improvements and operational considerations. The audit also will include an assessment of the information submitted by CN related to the November 3, 2011, derailment near Bartlett at Spaulding, Ill.

 

Portland to Vancouver light-rail link pushes ahead with Columbia River Crossing OK

Plans to replace the aging Interstate 5 Columbia River Crossing bridges connecting Vancouver, Wash., and Portland, Ore., and build an interstate transit link can now move forward.

The Record of Decision represents the final clearance of the project’s environmental review and allows Oregon and Washington to begin right-of-way acquisition and construction.

"We are making the long-sought after rail transit link between Portland and Vancouver possible," Federal Transit Administrator Peter Rogoff said. "This is the type of forward-leaning project that will greatly benefit the entire region well into the future."

At a cost of approximately $3 billion for bridge, transit and highway improvements, the project is considered a long-term, comprehensive solution to address safety and congestion problems on five miles of I-5 from State Route 500 in Vancouver to Victory Boulevard in Portland and will be funded through a combination of state and federal sources.

The nearly three-mile light-rail portion of the project will extend from Portland’s Expo Center MAX station to Clark College in Vancouver. It is expected that the transit rail project will reduce the duration of daily congestion on I-5 near the Columbia River by 60 percent. By 2030, the light-rail line is expected to carry more than 22,000 daily passengers.

North Dakota rail loop project gets green light

The North Dakota Stutsman County Commission voted 4-1 to move forward with the creation of the Spiritwood Energy Park Association rail loop project.

The legal agreements still have to be completed and some details still need to be clearly determined, but the board agreed to move ahead with the process of combining 100 acres of land belonging to the Jamestown/Stutsman Development Corp. and another 451 acres of land owned by Great River Energy into the Spiritwood Energy Park Association.

The county will also contribute $375,000 in investment capital to SEPA, which would go toward building a rail loop for tenants in the energy park, a $7.5 million project intended to attract more tenants to the energy park.

Fairfax gives final approval needed for Dulles rail agreement

The Virginia Fairfax County Board of Supervisors approved changes to the funding agreement for the second phase of the Dulles Rail project, saving as much as an estimated $757 million in fees for Dulles Toll Road users.

The board’s authorization was the final step needed to adopt the changes. The project’s other partners, the Metropolitan Washington Airports Authority, Loudoun County, Commonwealth of Virginia and U.S. Department of Transportation, agreed to the deal last month.

"This strategy brings the cost of Phase 2 back down close to the original estimate and goes a long way to ensure this critical transportation project is completed," Chairman Sharon Bulova said. "Dulles Rail remains my top transportation priority and I am glad to approve this strategy."

Toll road commuters, who are paying for 75 percent of the project’s second phase, will see savings because the deal shaves the total cost by a third, from an estimated $3.8 to $2.8 billion. The most significant source for these savings results from the decision to build an above-ground station at Dulles Airport.

As was agreed, total project costs are shared as follows: 16.1 percent by Fairfax County; 4.8 percent by Loudoun County; 4.1 percent by the Metropolitan Washington Airports Authority; and 75 percent (less any federal and state funding) by Dulles Toll Road revenues.

To help pay for its overall share for the project, the county also plans to apply for a federal loan of up to $315 million under the Transportation Infrastructure Finance and Innovation Act. With its potentially low interest rate and option to defer repayment, this loan will save taxpayers money.

To further defray costs for toll road users, the state also agreed to seek $150 million in funding from the Virginia General Assembly.

The county’s share for the entire Dulles Rail project is estimated to be $893 to $923 million. Of this amount, $730 million, or approximately 80 percent, will be paid for by voluntary, special tax districts created by landowners.

The second phase of the rail project runs from Wiehle Avenue in Fairfax County to Route 772 in Loudoun County. The second phase of the project is estimated to be completed in 2017.The first phase of the project is currently under construction and it expected to be completed in late 2013.

Stella-Jones completes Thompson Industries acquisition

Stella-Jones Inc. has completed the acquisition of Thompson Industries, Inc.

Thompson’s sales for its fiscal year ended September 30, 2011, were approximately $49.0 million. The purchase price totaled approximately $39.0 million, subject to post closing adjustments. Stella-Jones financed the acquisition through existing credit facilities and an unsecured vendor note of $6.5 million.

"The acquisition of Thompson further enhances Stella-Jones’ status as a leading provider of treated wood products and services to the North American railroad industry. More importantly, we expect the transaction to be immediately accretive to earnings and to yield synergies, as our continental network will benefit from greater operating efficiencies," said Brian McManus, president and CEO of Stella-Jones.

Deutsche Plasser unveils 3D tamping simulator

On Dec.1, 2011, Deutsche Plasser presented the world’s first 3D-tamping simulator in the newly extended training center in Bingen on the Rhine, Germany.

With this new 09-3D tamping simulator, the training center now has a valuable training instrument. A completely new kind of simulation of the surroundings in the work cabin provides a realistic impression of a true working situation. This is augmented by numerous original components such as the operating panel, the work seat with operating controls installed in the armrests, a touch panel for the CWS computer working system, pedals for controlling the work units and the standard pilot lamps.

The real-time 3D simulation enables the trainee to learn how to perform normal plain line tamping and renewal tamping, but also how he or she must react when encountering obstacles such as level crossings, inductive track magnets, cable ducts, signal switching mechanisms, etc. and this improves the quality of the training.

The 09-3D tamping simulator assures
• tamping under realistic conditions
• intensive training without disruption of rail services or risk of damage to the track
• recording, analysis, evaluation and therefore a quality control of the training units attended
• better trained staff for a higher availability of the machines in operation
• no need to keep a machine specially for training purposes
• an increase in the overall machine output thanks to highly qualified and specialized machine operating staff

Due to the success in Bingen, an identical 09-3D tamping simulator is currently being prepared for installation in the Plasser & Theurer training centre in Linz, Austria.

CP refreshes locomotive fleet

Canadian Pacific has brought 61 new high horsepower GE Evolution Series AC locomotives into service and the railway has initiated a program to modernize its low and medium horsepower yard locomotives.

The new EVO locomotives, which are currently in transcontinental service on priority series trains, will increase capacity, enhance service reliability, further the company’s long train strategy, reduce emissions and contribute to the company’s one-two percent annual fuel efficiency improvement target.

CP also expects delivery of an additional 30 EVO locomotives in the first quarter of 2012.

Through Progress Rail Services’ Electro-Motive Diesel subsidiary, CP will also begin to modernize a portion of its low and medium horsepower locomotive fleet. The remanufacture of these locomotives, which will begin in 2012 and take place over the next several years, supports yard fluidity and yard dwell reduction goals and reduces fuel consumption and ongoing maintenance costs.