Chicago

Metra leaders and elected officials came together to on Friday to officially dedicate the new Lovana S. "Lou" Jones/Bronzeville Station along the Rock Island Line.

FRA lifts EO 21, freight can return to Northwestern Pacific rail line

The Federal Railroad Administration has given the green light to restart freight service on the historic Northwestern Pacific rail line between Brazos Junction (Lombard) and Windsor.

In a published order signed by FRA Administrator, Joseph C. Szabo, the FRA said it was partially lifting the Emergency Order (EO 21) that stopped all train service on the North Coast in 1998 following a series of El Nino storms. FRA’s announcement permits freight service on a 62-mile stretch of railroad from Brazos Junction east to US 101, and extending north along US 101 through the cities of Novato, Petaluma, Cotati, Rohnert Park, Santa Rosa and Windsor, Calif.

"FRA’s decision is great news. It makes it possible to restart train service from Napa to Windsor by mid-June" said NCRA Chairman Hal Wagenet.

NCRA has invested more than $60 million since 2007 to repair 56 crossing signals, replace 50,000 crossties and 23,000 tons of ballast, shore-up levees in Schellville, repair 43 rail bridges and three movable bridges that traverse the Napa and Petaluma rivers between Windsor and the train connection with the Union Pacific (Brazos Junction/Lombard) located south of Napa.

NCRA leases the track to a private short-haul rail operator, the NWP Co. According to NWP Co. president, John Williams, three round trip trains per week will haul feed grains, wood products, building materials, wine and other general merchandise during the start-up phase between Napa and Windsor. He said he plans to continue repairing the line north to Willits as financing becomes available.

Wagenet said the NCRA is planning to certify a $3 million Environmental Impact Report in June that evaluates the impacts of train operations on the Russian River Division of the line between Brazos Junction and Willits. NCRA must also finalize agreements with SMART and the city of Novato prior to start-up of train operations.

"The impacts from the return of freight trains are overwhelmingly positive, said Wagenet.

In the published order dated May 4, FRA Administrator Szabo said the stretch of track from Brazos to Windsor "may open immediately to rail traffic."

 

UP Board approves $100 million in 2011 capex spending, dividend increase

Union Pacific’s Board of Directors has voted to increase the quarterly dividend on the company’s common shares by 25 percent to 47.5 cents per share. The increased dividend is payable July 1, 2011, to stockholders of record on May 31, 2011.

"Two weeks ago Union Pacific reported record first quarter earnings, building on the historic milestones we achieved in 2010," said Jim Young, Union Pacific chairman and chief executive officer. "We’re generating record free cash flows and have confidence in our ability to capitalize on future growth opportunities and reward our shareholders. This dividend increase is a significant step toward our target payout ratio of approximately 30 percent."

The Board also approved an additional $100 million of growth capital spending in 2011, increasing the full year capital investment plan to $3.3 billion.

"Looking ahead, we feel positive about the long-term fundamentals of our business," Young said. "We are investing for safety, service, growth and productivity gains that will help us improve the value we provide to our customers and shareholders."

Ottawa puts light rail on the fast track

The Canadian City of Ottawa released a report to accelerate the implementation of light rail transit as directed by the city’s Finance and Economic Development Committee. If approved, the revised schedule will see the light rail system fully operational in the spring of 2018, a full year earlier than planned under the previous Council.

Advancing the procurement process and completing the selection of a winning firm will enable the construction of the system to begin approximately six months earlier than had been planned. The preliminary engineering effort allowed for a more detailed look at the construction schedule, saving an additional six months. It is expected that the private sector will provide additional opportunities to speed implementation through a competitive process.

The accelerated timeline comes in response to committee direction in March to identify ways to realize the benefits of the project sooner.

"This project is the backbone of Ottawa’s future transit system and I’ve heard time and again from residents that they want to see this light rail project built," said Ottowa Mayor Jim Watson. "I feel very confident that this plan responds to the desire to speed up project delivery and keeps a strong focus on fiscal prudence and effective risk management."

The report also sets out a proven, private-sector procurement model that includes taking responsibility for delivering an integrated system. This will include the final design, construction and ongoing maintenance.

California HSR planners opt for Grapevine route

The California High-Speed Rail Authority Board of Directors approved beginning a conceptual study of an alternate alignment between Bakersfield and Los Angeles, an alignment that would generally follow Interstate 5, along the route known as the Grapevine, to determine if it may be considered as a feasible alternative along with the two antelope Valley alignments being studied to connect Bakersfield to Los Angeles.

"We’re looking at as many alternatives as possible to make sure we construct the best system we can," said Roelof van Ark, CEO of the California High-Speed Rail Authority. "The Grapevine route could offer some advantages by saving time, distance and cost. A conceptual study gives us a chance to talk to the public and stakeholders to determine whether it will ultimately work."

Staff requested to reintroduce the study of the Grapevine alignment, which was conceptually studied in the statewide programmatic environmental review conducted in 2003-2005, because since that time a number of factors have changed in the corridor. In 2005, the Grapevine alignment was not selected based on preliminary information that revealed it to be technically less viable and potentially more costly than the Antelope Valley route.

"We’re looking at all factors and all means to get past the Tehachapi Mountains and into the Los Angeles Basin, and if that means we need to give the Grapevine another look, now is the time to do it," said van Ark.

The conceptual review of the Grapevine alternative is expected to assist staff in determining whether the option is viable, or whether it contains fatal flaws.

 

North Carolina Railroad Company rehabbing three bridges

Construction is wrapping up and kicking off to improve three railroad bridges in eastern North Carolina, all part of ongoing capital investment by the North Carolina Railroad Company. The repairs in New Bern and replacements in Kinston are being undertaken in partnership between NCRR and Norfolk Southern Railway Company.

"Agricultural, chemical, and fuel business continues to grow in the east," said Scott Saylor, NCRR president. "We continue to invest in capital projects that will improve rail service for existing customers, attract new industries to create jobs, enhance the rail infrastructure and continue to serve our military bases. Our joint capital investments with Norfolk Southern foster economic growth along our rail line."

The Kinston-based project, which is nearing completion, will rebuild two wooden trestle bridges over the Neuse River in Lenoir County and is a 50/50 cost share with Norfolk Southern Railway, totaling $8 million. In New Bern, repairs will soon start on the Trent River Bridge to encase steel piles, corroded by saltwater for more than 30 years in concrete. NCRR will invest $1.5 million in the project, also a 50/50 cost share with Norfolk Southern.

"Preserving and improving infrastructure like rail bridges and trestles helps maintain or increase train speed and weight capacities," said Saylor. "Our investment of railroad revenues into capital projects keeps rail service safe, reliable and efficient. That’s good for keeping businesses in our state and attracting new ones, at no cost to taxpayers."

The North Carolina Railroad Company owns and manages the 317-mile rail corridor extending from the Morehead City Port to Charlotte. The railroad carries 50-60 freight trains and ten passenger trains daily. NCRR is the oldest private company in the state and remains at the forefront of rail improvements and partnership development to promote jobs and rail-served industry across the state. It touches nearly a quarter of the state’s economy.

Siemens transports wind turbine nacelles by rail from new U.S. factory

Using a greener, more reliable and cost-effective method of transportation, Siemens transported 22 wind turbine nacelles and hubs by rail from its new wind turbine nacelle assembly facility in Hutchinson, Kan. Shipping the 87-metric-ton nacelles by train has significant efficiency and environmental benefits, including an up to 80 percent carbon footprint reduction compared to truck transportation over long distances.

"I’m very pleased that we mark yet another milestone in our quest to provide leading-edge wind turbine technology in the U.S.," said Jan Kjaersgaard, vice president and general manager of Siemens’ Wind Power business in the Americas. "We are transporting our first nacelles from our newly opened wind turbine nacelle assembly facility and, we are shipping them by rail, which offers the greatest efficiency and environmental benefits. I am very proud to work for a company that not only makes products that are good for the environment, but that also operates in a way that is environmentally responsible."

In addition to the nacelles, Siemens Energy is also transporting towers and blades via rail to various projects throughout the U.S.

The inaugural shipment of 22 wind turbine nacelles and hubs is headed to Puget Sound Energy’s Lower Snake River Wind Project near Pomeroy, Washington, where they will be combined with blades from Siemens’ Fort Madison, Iowa, wind turbine blade manufacturing facility and towers for installation.

"Puget Sound Energy’s wind-power facilities are producing clean, green energy for tens of thousands of homes and businesses, and with our new Siemens turbines, I’m thrilled to say, we’re also helping to generate new green jobs for American workers," said Kimberly Harris, PSE president and CEO.

 

Chicago to St. Louis line receives $186M from Florida’s rejected HSR Funds

The U.S. Department of Transportation awarded $186 million in high-speed rail funding to finance track and other improvements on the Chicago to St. Louis corridor between Dwight and Joliet, Ill. The U.S. Department of Transportation notified Congressional Appropriators that they have reprogrammed $400 million of the $2 billion in funding that was rejected by the governor of Florida.

"Illinois will be able to use this funding to upgrade an important segment of the Chicago to St. Louis corridor," said Senator Dick Durbin (D-IL), a co-chair and founding member of the Bi-Cameral High-Speed & Intercity Passenger Rail Caucus. "Improvements to this route will improve on-time performance, increase travel speeds and create jobs that our state badly needs.

U.S. Senator Mark Kirk (R-IL) said, "High-speed rail projects like this one will ensure that Illinois remains at the center of the nation’s infrastructure network, attracting more jobs and making us more economically competitive."

"Today’s announcement is an important step toward faster trains and even better rail service on the route between Chicago and St. Louis, ultimately making Illinois the Midwest’s hub for high-speed rail," Illinois Governor Pat Quinn said. "We are committed to quickly turning federal investment in rail into jobs and economic development across the state. This latest award is another example of our ongoing efforts to lead the nation in development of high-speed rail."

Last month, Durbin and Kirk led a group of Illinois Congressional Delegation members in expressing support for Illinois’ application for the federal funding for high-speed rail projects that was rejected by the governor of Florida. In their letter to the Secretary of Transportation, Ray LaHood, the members stressed the importance of the Chicago to St. Louis route as the backbone of the Midwest passenger rail system.

 

FTA sends RTD

On May 2, the Federal Transit Administration sent the Regional Transportation District of Denver’s Full Funding Grant Agreement for $1.03 billion to Congress for the required 60-day review period. This is FTA’s notification that it intends to award the FFGA to RTD for its Eagle P3 Project, giving members of Congress and their staff an opportunity to review the FFGA and ask clarifying questions about it. This is the final step before FTA can award the $1.03 billion FFGA to RTD

Following this 60-day period, FTA and RTD will hold a signing ceremony, which is the official execution of the FFGA. The $1.03 billion grant will help fund the East Rail Line to Denver International Airport and the Gold Line to Arvada and Wheat Ridge, which are the core of RTD’s Eagle P3 project.

UTU will represent Georgia & Florida Railway MOW employees

Maintenance-of-way employees on Georgia & Florida Railway, where train and engine workers have been UTU members since 2006, have voted unanimously in favor of UTU representation.

Georgia & Florida Railway, an OmniTrax property, is a 264-mile shortline serving southcentral Georgia. It interchanges with CSX Transportation and Norfolk Southern. Its principal commodities include beer, wood pulp, ethanol and agricultural products.

WMATA gets two new Board members, alternate director appointed

Two new members from Maryland, Michael D. Barnes and Alvin Nichols joined the Washington Metropolitan Area Transit Authority Board of Directors and Board member Anthony Giancola has become an alternate director representing the federal government as of April 28. 



Barnes represents Montgomery County and succeeds Peter Benjamin, as a principal director on the Metro Board.

Nichols succeeds principal director Elizabeth Hewlett and represents Prince George’s County.

Giancola had represented the District of Columbia as an alternate director since February 2007. 



 

CSXT’s Spatafore named rail industry’s top environmentalist

CSX Transportation’s Richard Spatafore, division engineer, Jacksonville, Fla., received the 2010 Association of American Railroads’ John H. Chafee Environmental Excellence Award. CSXT nominated Spatafore for the award, named for the late Rhode Island senator who devoted his long career in public service to protecting the environment and who understood the important environmental advantages of rail.

"Richard Spatafore personifies CSXT’s long-standing commitment to environmental stewardship," said Skip Elliott, vice president public safety and environment for CSXT. "His innovative resource re-use program is a model of how every CSXT employee can make a difference in protecting our environment while enhancing CSX’s efficiency."

Spatafore, a 36-year veteran of CSXT, developed the "No Spike Left Behind" program, a successful, first-of-its-kind environmental business model for CSXT. The program involves evaluating all rail yards and CSXT right-of-way to identify accumulated on-track material, equipment and other railroad-related materials. Materials are then tagged as appropriate for re-use or recycling.

Additionally, Spatafore oversaw the design and construction of new environmentally safe storage centers within designated rail yards to serve as centralized material storage and usage hubs. Under his leadership, Spatafore’s team achieved 100 percent compliance with federal, state and local environmental regulations.

UP wins Texas environmental award

The Texas Commission on Environmental Quality presented Union Pacific Railroad with an Environmental Excellence Award for developing some of the most environmentally friendly locomotives, which are now operating in Texas.

The TCEQ honored the state’s most outstanding pollution prevention projects during a presentation in Austin. Union Pacific’s Genset switcher locomotives were recognized in the technical and technology category. Genset locomotives reduce emissions of particulate matter and oxides of nitrogen by 80 to 90 percent compared to older switching locomotives. In addition, Gensets use 37 percent less fuel and have an equal reduction in carbon dioxide emissions.

Union Pacific operates 98 Gensets in rail yards located in Texas. Instead of operating with one large engine, three 667-horsepower ultra-low emitting engines power the Genset locomotives. Gensets use a single engine for smaller jobs and activate the other two engines only when additional power is needed.

"We are honored to accept the Environmental Excellence Award," said Gregory Workman, Union Pacific vice president Operations for the Southern Region. "The Gensets are just one example of how our employees are using innovative technology to help Union Pacific protect the environment in the communities we serve."

 

Hallcon Corporation acquired by Southfield Capital Advisors

Southfield Capital Advisors, a private investment firm focused on the lower middle-market, has acquired majority ownership of Hallcon Corporation. Hallcon is a leading provider of specialty outsourced services to the railway and transit sectors in North America. Hallcon’s senior management team will continue in their current roles and will maintain a minority ownership position in the company.

Additional terms of the transaction were not released.

Founded in 1954 and headquartered in Toronto, Ontario, Hallcon provides rail operators with a complete outsourced solution for their crew transportation operations. In addition to the actual ground transportation, Hallcon manages its customers’ trip booking, dispatching, billing and reporting through the use of the Company’s proprietary software platform. Hallcon has established a dominant share in the Canadian crew transportation market and was recently awarded its first national contract to provide and administer crew transportation in the United States.

Tony Plut, president and CEO of Hallcon, said, "When selecting a partner, the Hallcon management team was focused on identifying a firm that could provide the operational, strategic and financial support to best position the company for future success. In addition to helping us manage our current growth, we believe Southfield Capital will help us identify and pursue new opportunities and assist us in implementing best practices across the entire platform. In collaboration, we expect to be able to continue on our exciting growth path and to fortify our industry leading position in North America."

Southfield Capital Operating Partner Vince Tyra said, "We are excited to have the opportunity to invest alongside such a talented management team with a proven track record and an unrelenting drive to make Hallcon a best-in-class provider of rail services in North America. Southfield Capital firmly believes that Hallcon is the ideal platform to take advantage of the favorable macroeconomic trends within the North American rail industry, which include considerable private and public investment towards freight and commuter rail."

 

U.S. Mayors want a voice in transportation infrastructure investment

The United States Conference of Mayors released a 176-city survey focusing on local transportation infrastructure investments. Atlanta, Georgia, Mayor Kasim Reed, USCM Transportation Committee chair, delivered the survey findings. Given the economic problems facing the nation, mayors believe it is more important than ever that federal transportation priorities be targeted to metropolitan areas, home to two-thirds of U.S. residents.

"As the federal government sets priorities for long-term spending and deficit reduction, future transportation infrastructure investments should focus spending on pressing metropolitan transportation infrastructure needs as opposed to low-priority highway expansion projects such as the infamous Bridge to Nowhere," said Atlanta Mayor Reed.

"The long-term productivity of transportation infrastructure spending is greater when it is invested where economic growth will occur, which is in the metropolitan areas, " Reed continued.

Findings of the United States Conference of Mayors Metropolitan Transportation Infrastructure survey include:

• Ninety-eight percent of the mayors point to investment in affordable, reliable transportation as an important part of their cities’ economic recovery and growth.

• Ninety-three percent of the mayors urge reforms in federal transportation programs to allow cities and their metropolitan areas to receive a greater share of federal funds directly.

• Absent a greater share of funding directly to cities and metropolitan areas, only seven percent of the mayors indicate support to increase the federal gas tax.

• Ninety-six percent of the mayors believe that the federal government should increase spending on transportation infrastructure to reverse decades of underinvestment in cities, with strong majorities indicating support to increase the federal gas tax to improve transportation infrastructure, if a greater share of the funding were invested in local road and bridge infrastructure (89 percent), and public transit (65 percent).

• Eighty percent of the mayors indicate that highway expansion should be a low priority.

• Seventy-five percent of the mayors say a national infrastructure bank or expanded availability of federal financing tools such as Transportation Infrastructure Finance and Innovation Act or Build America Bonds would accelerate or increase the number of transportation projects that could be implemented.

In the United States, metropolitan areas account for 86 percent of employment, 90 percent of wage income and over the next 20 years, 94 percent of the nation’s economic growth, but they are burdened with the nation’s worst traffic jams, its oldest roads and bridges and transit systems at capacity. These areas are receiving significantly less in federal transportation investments than would reflect their role and importance to the nation’s economy.

Tom Corchran, USCM CEO stated, "The largest metropolitan areas account for 87 percent of the nation’s traffic. The three most congested areas, Los Angeles, New York and Chicago, account for 27 percent of that traffic. Our metropolitan areas rank high among world economies, but they are saddled with bus and rail systems at capacity. Given these factors, metropolitan areas should be at the center of federal transportation infrastructure investment. They are the drivers of the 21st century United States economy."

The President and CEO of Parsons Brinkerhoff, which sponsored the survey, spoke to the global benefit of increased infrastructure investments in this country.

"While the United States has been disinvesting in transportation infrastructure, we see other countries taking a cue from our history by making significant investments in transportation," said Parsons Brinckerhoff President and CEO George J. Pierson.

"Today, we are investing approximately two percent of our GDP on infrastructure; Europe and China are investing approximately five percent and nine percent, respectively. Growth in India, China, Brazil and other surging economies is being fueled in part by investment in transit systems, roads, airports and other infrastructure. Thousands of miles of high-speed rail systems are being built in Europe and Asia, connecting population and economic centers.

"When mayors in the United States speak to their need to improve the quality of roads and transit systems in their cities, they are responding to a public need in a way that will arm their cities for success in global competition."

 

MBTA goes to bid on Assembly Row Orange Line station

The Massachusetts Bay Transportation Authority has submitted a notice to bidders for the construction of a new Orange Line T station for Assembly Row at Assembly Square. The new station at Assembly Row will be the first to be built on the Orange line since the Southwest Corridor Stations in 1987 and will be located between Sullivan Square and Wellington Station.

"We are pleased that the MBTA went to bid on construction for the new Orange Line T station in Somerville. This is the latest great step forward in the progress of this project and we look forward to seeing the bids that come back," said Don Briggs, president Federal Realty Investment Trust in Boston. "The vision of Assembly Row at Assembly Square cannot be realized without the Orange Line T station. People from all over the Commonwealth are going to come to Assembly Row to work, shop, live and enjoy the parks and open space. A large number of them will rely on public transportation to get there."

Construction of the new T Station could begin as soon as fall of 2011, with the potential to be online in 2014. Undoubtedly Massachusetts’ largest development project, Assembly Row at Assembly Square will create more than 19,000 permanent jobs, more than 21,000 construction jobs and significant new revenue for the City of Somerville and the Commonwealth of Massachusetts.

 

Delaware seeks public comment on State Rail Plan

The Delaware Department of Transportation and DART First State prepared a new State Rail Plan, which is currently available for public review and comment. The SRP is a project of Delaware Transit Corporation and the DelDOT Division of Planning, with consultant services from Parsons Brinckerhoff and S.L. Bassford and Associates. The Plan was prepared specifically in response to the Passenger Rail Investment and Improvement Act of 2008, which requires states to maintain current rail plans as a condition for federal funding.

The SRP identifies the Delaware goals for freight and passenger rail as elements of the overall transportation system. Much of the SRP text comprises an inventory of railroads operating in the state, their tracks and facilities, commodities and customers and passenger services and stations.

The SRP identifies opportunities for expanded service as well as potential chokepoints and other obstacles. The Plan summarizes projects currently underway and those recently completed, some of which may serve as models for future public-private partnerships. The state plan discusses DelDOT’s organization for managing rail-related activities and cooperation with private rail companies, neighboring states and regional partnerships. The SRP concludes with a listing of all identified potential rail improvements and areas for further study.

Public comment can be made via the DART website (www.DartFirstState.com), by mail or by telephone by calling 800-652-DART. After the public comment period concludes on May 16th, and approved by the Acting Secretary of DelDOT, the final plan will be filed with the Federal Railroad Administration and placed on the DART website.

 

LACMTA to hold public meeting on FY12 budget

The Los Angeles County Metropolitan Transit Authority will hold a public hearing on a draft $4.145 billion budget for Fiscal Year 2011-12 on Wednesday, May 18, at Metro Headquarters.

The public can view copies of the balanced budget proposal at Metro.net (type in keyword budget in Search). LACMTA directors could consider adopting the budget for the fiscal year beginning July 1, 2011, following the public hearing or at their Thursday, May 26, meeting.

LACMTA CEO Art Leahy’s budget proposal calls for keeping fares at current levels, however, the CEO is proposing to lower the cost of the Metro day pass from $6 down to $5 for a six month test to help attract commuters and others squeezed by rising gas prices.

In FY 12, LACMTA may expand the Metro Rail system. Trains are being tested for the first phase of the Expo light rail line that will run from downtown Los Angeles to Culver City past USC.

Leahy stressed that LACMTA is not skimping on maintenance or on street supervision and is focused on improving on-time performance, equipment reliability and cleanliness. He also said he is positioning the agency to strategically add service where it’s needed and to give commuters and others more incentives to beat the high price of gas. Service is being added to the Silver Line express bus service from the South Bay into downtown Los Angeles, the Metro Gold Line and the Metro Red Line subway.

For the third year in a row, the budget assumes no wage increase for employees. However, LACMTA is negotiating new contracts with its major labor unions representing operators, maintenance employees and clerks.

The FY 12 draft budget is $247 million or 6.3 percent more than the current $3.898 billion budget. This reflects a significant expansion of the Measure R program in the next fiscal year. In 2008 more than 2 million Los Angeles County voters approved the Measure R half cent sales tax to advance a dozen major transit projects and 15 highway projects. In the new fiscal year LACMTA will be spending $1.164 billion on Measure R projects and programs compared to $889 million this fiscal year.

And the remaining five percent of the budget will be for developing real time customer information such as Nextrip that uses GPS technology to track when buses will arrive, preparing the LACMTA workforce for the next generation, ensuring financial sustainability and advancing Metro’s environmental efforts.

Beware that there are risk factors for the draft budget. LACMTA is not immune to the state and federal budget woes that could cut transportation funding.

 

AAR lauds bill to limit truck size, weight

The Association of American Railroads has lauded the introduction of both House and Senate versions of the Safe Highways and Infrastructure Preservation Act, which propose to freeze national truck size and weight limits on the U.S. interstate highway system. The bills, introduced by Sen. Frank Lautenberg (D-N.J.) and Rep. Jim McGovern (D-Mass.), would keep the nation’s highways safe and stop bigger trucks from adding to American taxpayers’ already heavy federal budget burden. Rep. Frank Wolf (R-V.A.) is the lead co-sponsor of H.R. 1574.

"Big, heavy trucks today don’t pay their full share of damage to our nation’s highways, costing American taxpayers billions of dollars each year for pothole and bridge repairs," said AAR vice president of Communications Patricia M. Reilly. "Now isn’t the time to increase the infrastructure subsidy enjoyed by trucks, which in turn increases the cost burden on taxpayers."

"The additional cost of repairing bridge damage alone caused by raising truck size 20 percent could be as much as $65 billion," she said. "That’s not money that will come from the trucking companies. Rather, these costs will be paid by U.S. taxpayers and motorists to repair the damage trucks cause to our highway infrastructure, a cost that will be even higher if we allow heavier and longer trucks."