FRA clears the way for Maine to purchase Montreal, Maine and Atlantic Railway

The FRA has cleared all legal hurdles for the State of Maine to take ownership of 233 miles of the Montreal, Maine and Atlantic Railway in Aroostook and Penobscot counties, preserving rail service for that part of the State. The U.S. Department of Transportation provided a $10.5 million grant in October 2010 to the Maine DOT for repairs and upgrades for that section of the railroad.

"As an Aroostook County native, I understand how important the continued operation of this rail line is to Maine’s economy,” said U.S. Senator Susan Collins, a member of the Senate Approptiations Subcommittee on Transportation. “[The] news allows the State of Maine to take clear ownership of this portion of track, rehabilitate it, and improve it in order to preserve rail service for nearly two dozen employers in Aroostook and Penobscot counties. This will help prevent the loss of nearly 2,000 jobs which are dependent upon rail service."

According to a press release from the Governor’s office in October 2010, funding includes $7 million from a June 2010 bond, $4 million from a November 2009 bond that is being repurposed, $7 million from state reserve accounts, $1.1 million from rail balances from canceled projects and $1 million from a major shipper on the line.

Last April, FRA Administrator Joe Szabo traveled to Bangor, at Senator Collins’ request, to meet with the Senator, the Governor, local and state officials and businesses to discuss how to preserve rail service in Northern Maine. 

"Today’s decision by FRA clears the way for the state to take over this rail line, so we can begin the important work of upgrading and rehabilitating the tracks to preserve and improve rail service for northern Maine" said Senator Collins.

This purchase will preserve a vital economic corridor and transportation asset in Northern Maine. More than 25 businesses in the area rely on this rail link and an estimated 750-1,000 jobs would have been threatened or at risk if the tracks were abandoned.

CPR prepares to operate regardless of possible strike

Workers have voted to take strike action if necessary at both CN and CPR as negotiations with the companies continue and the deadline approaches. The workers are represented by the Canadian Auto Workers.

CPR has advised that it has trained 1,200 managers and has a comprehensive contingency plan in place to fully operate the railway should a labor dispute occur with the CAW, with the earliest possible date being February 8, 2011.

Workers at CN make up three different CAW bargaining units and have voted in favor of a strike if necessary, as follows:
Local 100 – 95 percent

Council 4000 (office and clerical) – 82 percent

Council 4000 (mechanical) -100 percent

Council 4000 CNTL (owner operators) – 93 percent

The CN strike deadline is Tuesday, January 25 at 12:01 a.m. The CAW represents 4,300 workers at CN in all bargaining units combined.

Workers at CPR, represented by CAW Local 101, voted 89 percent in favor of going on strike if necessary. The strike deadline is Tuesday, February 8 at 12:01 a.m. The CAW represents 2,100 workers at CPR.

CAW President Ken Lewenza said that negotiations with both companies have been challenging so far with each demanding concessions of the workers.

"Our members have spoken loudly and clearly about their issues and concerns and this high strike vote is a strong indication that our members are absolutely serious in addressing these concerns at the bargaining table," said Lewenza. "Workers at CN and CP will enjoy the full support of the union as they fight concessionary demands and secure a decent contract."

WMATA launches aggressive safety plan

Washington Metropolitan Area Transit Authority is launching a plan to improve safety and bring the Metro rail system back to a state of good repair that will have staff working around the clock to get the work done as quickly and safely as possible. The end result will mean improved service reliability, on-time performance and a smoother ride.

“This is the short-term pain of outages on weekends for long term gains for our customers in terms of a safer, more reliable and better quality service,” said Richard Sarles, Metro’s general manager. “This is the most aggressive program of work Metro has taken since the system was built.”

To minimize inconvenience and maximize efficiencies, track work will be accelerated and performed around the clock. Regular weekend single tracking will commence at 9 p.m. on Fridays and continue through closing on Sunday nights. Shutdowns during holiday weekends will typically commence at 9 p.m. on Fridays and continue through closing on Monday nights. Metro officials will periodically schedule daytime single tracking that will not impact off-peak schedules. As a result of this aggressive work plan, Metro will need to close portions of the rail system multiple times during weekends in 2011. The work will necessitate single-tracking and/or station closures. 


The 2011 tentative shutdown schedule: 


Jan. 14 to 17, 2011 — Martin Luther King, Jr. Holiday Weekend: Metro plans to close the Foggy Bottom-GWU Metrorail station on the Blue and Orange lines during the three-day Martin Luther King, Jr. Holiday Weekend from 10 p.m., Friday, Jan. 14, through Monday, Jan. 17, as the agency undertakes a major rehabilitation and rebuilding project to improve safety, to comply with a recommendation made by the National Transportation Safety Board and maintain service reliability and a state of good repair. During the Martin Luther King, Jr. Holiday Weekend, Metro will replace four track switches. Metro also will conduct several additional projects in the area of the closure to maximize the amount of work to be done while there are no trains in the area.

Feb. 18 to 21, 2011 — Presidents Day Holiday Weekend:
Metro will close two Blue and Orange Line stations (Federal Triangle and Smithsonian Metrorail stations) during the three-day Presidents Day Holiday Weekend from 9 p.m., Friday, Feb. 18, through Monday, Feb. 21. During the Presidents Day Holiday Weekend, Metro will replace four track switches, to comply with a NTSB recommendation.

March 4 to 6 and March 11 to 13, 2011 – Cheverly Aerial Structure Repairs: There will be no train service on the Orange Line between the Stadium-Armory and New Carrollton Metrorail stations as Metro works to stabilize the ground, the abutment and aerial structure outside the Cheverly Metrorail station.

Orange Line Dulles Corridor Metrorail Project: During the weekends of March 18 to 20, March 25 to 27, May 27 to 30, June 3 to 5, Sept. 2 to 5, and Oct. 7 to 10, the Dulles Corridor Metrorail Project will continue major construction activities that will eventually connect the new rail line to the existing Metrorail system. During these weekends, the East Falls Church and West Falls Church-VT/UVA Metrorail stations will remain open although there will be no train service between those stations. 



May 27 to 30, 2011 — Memorial Day Holiday Weekend: Metro will close the Eastern Market Metrorail station on the Blue and Orange lines during the three-day Memorial Day Holiday Weekend from 9 p.m., Friday, May 27, through Monday, May 30. During the Memorial Day Holiday Weekend, Metro will replace four track switches, which comprise the entire rail interlocking at the Eastern Market Metrorail station to comply with a NTSB recommendation. 



Sept. 2 to 5, 2011 — Labor Day Holiday Weekend:
Metro will close two Blue Line stations (Franconia-Springfield and Van Dorn Street Metrorail stations) during the three-day Labor Day Holiday Weekend from 9 p.m., Friday, Sept. 2, through Monday, Sept. 5. During the Labor Day Holiday Weekend, Metro will install two new track switches between the Van Dorn Street and King Street Metrorail stations, to comply with a NTSB recommendation. 



Oct. 7 to 10, 2011 — Columbus Day Holiday Weekend:
Metro will close the U St/African-Amer Civil War Memorial/Cardozo Metrorail stations on the Green and Yellow lines during the three-day Columbus Day Holiday Weekend from 9 p.m., Friday, Oct. 7, through Monday, Oct. 10. During the Columbus Day Holiday Weekend, Metro will replace four track switches, which comprise the entire rail interlocking at the U St/African-Amer Civil War Memorial/Cardozo Metrorail station to comply with a NTSB recommendation. 



Nov. 10 to 13, 2011 — Veterans Day Holiday Weekend: Metro will close the Anacostia and Navy Yard Metrorail stations on the Green Line during the three-day Veterans Day Holiday Weekend from 9 p.m., Thursday, Nov. 10, through Sunday, Nov. 13. During the Veterans Day Holiday Weekend, Metro will replace eight track switches, which comprise the entire rail interlockings at the Anacostia and Navy Yard Metrorail stations, to comply with a NTSB recommendation. 


Closures are subject to change.

GOP Senator Hutchison to retire

The United Transportation Union reports Senator Kay Bailey Hutchison of Texas, the senior Republican on the Senate Commerce Committee, has announced she will retire at the end of 2012, when her third six-year term ends.

The Senate Commerce Committee has oversight of many rail, transit, air and bus issues. She is considered a moderate Republican.

The Senate Commerce Committee, with a Democratic majority, is chaired by Sen. Jay Rockefeller (D-W.Va.).

Harris joins BR&L

Birmingham Rail & Locomotive Co., Inc. has named Jeff Harris national accounts manager. He will be responsible for business development within all North American Class 1, regional and shortline railroads while focusing on expanding the Vulcan
Spike Division into a primary or secondary track-spike supplier throughout the industry.   

Harris is a 15-year rail veteran with experience in the track division of Nortrak, BNSF, and Progress Rail.
 
BR&L’s Vulcan Spike manufactures 5/8 inch x 6 inch track spikes for the railroad and industrial communities. The Birmingham, Ala. – based company also supplies rail, OTM and switch material along with complete locomotive service and maintenance.

Pittsburgh Port Authority approves 15% service cut

The Pittsburgh Port Authority Board approved a 15 percent service cut as a substitute for an earlier plan to slash service by 35 percent, the Pittsburgh Post-Gazette reports. They were able to do so because of $45 million in emergency funding provided by Gov. Ed Rendell.

The action will eliminate 29 routes and cut weekday service on 47 others, worsening the overcrowding problems that have generated rider complaints during a two-year transit overhaul that was designed to refocus service on areas of high demand.

It also will cut 270 positions from the agency’s 2,700-member work force, causing layoffs of 180 existing union and management employees.

Rail service will be cut. The Brown Line to Allentown will be eliminated and the Blue Line-South Hills Village will no longer operate on weekends. Weekday Blue Line and Red Line service will be reduced.

Authority spokesman Jim Ritchie said in general, the trips most likely to be eliminated on bus and rail routes are on the "fringes" — early mornings, middays and late at night. "The idea is to preserve the core of the service," he said.

Patrick McMahon, president and business agent of Local 85, Amalgamated Transit Union, called the cuts "an unnecessary mistake."

"We are going in the wrong direction. If the region truly wants to attract emerging new industries, retain the amazing talent that graduates from our world-class colleges and universities and elevate the standard of living to a level competitive with any other major city in America, we need a public transit system equal to the challenge. We should be expanding, not shrinking, transit services,” McMahon said.

In a year, the transportation-funding shortfall will have hit PennDOT and other transit agencies. "In 2012, it will most definitely be a Pennsylvania problem and then we’ll have more of a base to work with," he said.

Sound Transit releases UW light-rail station design

The $38 million light-rail project at the University of Washington calls for pedestrian bridges over Montlake Boulevard Northeast and Northeast Pacific Place traffic, linking the light-rail station and University of Washington buildings to the Rainier Vista Triangle, the Seattle Times reports.

The plan does cost more than four times as much as Sound Transit’s original $8 million bridge, a narrow overcrossing from the station directly to upper campus. The UW regents and the city approved the simpler bridge in 2008, but the university later suggested a more ambitious vision that makes use of the triangle and aids bus routes.

In a tentative agreement among five governments, the state Department of Transportation agreed to supply $22 million from its Highway 520 bridge budget, because the triangle plan enhances the bicycle and pedestrian trails that will be part of a new six-lane, $4.6 billion crossing, according to Kerry Ruth, a DOT project manager. Sound Transit pledged $12 million, and UW $4 million.

According to the University newspaper, The Daily, Sound Transit predicts the University link line will bring in an extra 70,000 boardings per day by 2030. Sound Transit spokesman Bruce Gray said this portion of the light rail will have the highest amount of riders and noted its speed as compared to current options.

Josh Kavanagh, the director of UW Transportation Services said, “The Light Rail has been warmly received by commuters in towns, and we look forward to having that connection to the university.”

One major benefit of the station is that it will give students a direct route to the airport. The University Link will have stops around the city, including one in Capitol Hill, where a station is currently under construction. Despite the stops, Rebecca Barnes, the university architect and campus-planning assistant vice provost, is supportive of the plan.

“It will make it much easier to get to and from the university from parts of the city,” Barnes said. “[It’s] a faster connection from downtown and Capitol Hill.”

So far, the process is on schedule to be completed with the two-year tunneling process to create the underground station beginning this May.

CSXT members ratify pair of agreements

BLET members from two of the four general committees of adjustment on CSXT ratified two tentative collective bargaining agreements. They represent more than 40 percent of BLET engineers working for the Class 1 railroad.
BLET members from the Northern District GCA voted by an 82 percent to 18 percent margin to transition from the modified former Conrail Agreement to the CSXT Single System Agreement, with a majority of eligible members approving the change.

The Transitional Single System Agreement includes many new work rules and benefits. Those benefits include a new compensation system that combines a performance bonus plan, general wage increases and a signing bonus. The TSSA also resolves this GCA’s outstanding wage and rule Section 6 Notice for the current round of bargaining. Those members from the Northern District GCA and members from the Northern Lines GCA also ratified an agreement that implements a New York Dock notice served by the Carrier in 2009 to create the Northern Mid-Atlantic Seniority District. The NMAD Implementing Agreement was approved by a 69 percent to 31 percent margin and:

• preserves existing prior rights seniority for all employees working in the Northern, Eastern and Western Districts;

• provides expanded work opportunities in the Northern, Eastern and Western Districts using NMAD seniority;

• preserves seniority zones limiting the force assignment of locomotive engineers;

• provides for movement between seniority districts and zones that was heretofore restricted; and

• provides New York Dock protective benefits for displaced locomotive engineers with a connection to this transaction.

BLET National President Dennis Pierce praised those involved for their efforts. “I want to congratulate General Chairmen Rick Finamore and Jim Louis and their teams, as well as Vice President Gil Gore, for their hard work for more than a year to bring these negotiations to a successful conclusion,” Pierce said.

These agreements become effective as soon as possible and will cover more than 2,100 BLET members.

CTA launches Train Tracker tool developed with Americaneagle.com

Americaneagle.com, a website design, development and hosting company, assisted in the development and launch of the new CTA Train Tracker for the Chicago Transit Authority. This highly-anticipated tool enables CTA riders to view estimated arrival times for all 144 train stations across eight rail lines on CTA’s website through a computer or Web-enabled mobile device.

In helping to develop CTA Train Tracker, Americaneagle.com worked closely with the CTA to integrate with the software that monitors the agency’s signal system. The integration allows CTA Train Tracker to deliver the predicted arrival times of approaching trains to be posted within a 15-minute timeframe. The tool was built to then refresh prediction times every 20-30 seconds, giving riders the most up-to-date information available.

Americaneagle.com also worked with the CTA to create a dynamic yet user-friendly interface for the desktop and mobile versions of the tool. Riders can choose the number of results that appear and how they are sorted. The tool allows for results to appear by track, route or time.

Michael Svanascini, president of Americaneagle.com noted, “Americaneagle.com was thrilled to help develop the new innovative CTA Train Tracker. The tool is especially exciting for those who can now access it through a mobile smartphone or touchscreen Web-enabled device directly from a CTA train station, as it works to reduce uncertainty about train arrival times.”

Americaneagle.com will be working closely with the CTA in coming months to further improve CTA Train Tracker based on customer feedback.



WMATA proposes $1.4 billion FY2012 budget

Washington Metropoliatan Area Transit Authority General Manager Richard Sarles proposed a $1.4 billion operating budget for Fiscal Year 2012 that maintains the current level of rail, bus and paratransit services without increasing fares.

His proposed budget is the first step in a six-month-long budget planning process before the Board adopts a budget in June, in time to begin the new fiscal year on July 1.

“Fully funding Metro is vital to our ability to build our new safety culture, as well as provide a robust schedule of services for riders and continue to serve as an economic engine for the region,” Sarles said when he presented his budget proposal to the Metro Board Finance and Administration Committee.

Over the past year, Metro has made progress in safety, service reliability and financial stability. Through a Board- and management-led series of strategic investments and organizational changes, the agency has begun to build a safety culture, take action on National Transportation Safety Board recommendations and address other crucial safety and state-of-good-repair capital needs through the rehabilitation of aging infrastructure and rolling stock.

The FY2012 annual capital program of work advances 140 projects that address safety and state of good repair needs on the system – with respect to both infrastructure and rehabilitation of equipment – as well as planning for future expansion, including the new rail extension to Dulles.

In the coming fiscal year, the proposed budget accounts for the elimination of an additional $74.2 million in operating budget requirements without adversely impacting customers or laying off Metro employees who live in the region and contribute to the local economy.

Even with an aggressive program of management efficiencies, in the coming year, Metro faces substantial cost drivers, including wages and fringe benefits, paratransit service growth and carryover that increases the base budget by $85.8 million.

To ensure Metro stays on the path of improvement and delivers core services to support the growth of the region, the General Manager’s proposed budget continues current levels of service on all transit modes, as well as funds the level of effort necessary to support core services and a robust capital program. The budget proposal calls for $72.4 million of additional funding for the system through a slate of alternatives including: wage reserves, increased subsidies from the jurisdictions, commercial revenues through monetized ground leases and marketing station naming rights and funding preventive maintenance at FY2010 levels.

Operation Lifesaver launches safety campaign

Operation Lifesaver, Inc.,  launched two new safety public service announcements at Amtrak’s Union Station in Chicago. The television safety campaign, targeting 18-34-year-olds and Hispanic viewers, is aimed at preventing vehicle-train tragedies in the Chicago area, where crossing incidents increased in 2010. The Federal Railroad Administration provided Operation Lifesaver’s grant for the campaign.

“Operation Lifesaver selected Chicago to launch this public service campaign because of its status as an important railroad hub,” said Illinois Operation Lifesaver State Coordinator Chip Pew.  “With the growth of freight and commuter rail and the advent of high-speed rail, Operation Lifesaver’s safety message is more important than ever,” he said.

Joe Szabo, federal railroad administrator, said, “Once again, Operation Lifesaver is leading the charge to raise awareness about highway-rail safety.  These new PSAs serve as an excellent reminder to drivers about the need to be vigilant at grade crossings.”

The first PSA, Where’s the Best Man?, tells the story of a missing best man racing to his friend’s wedding. A hasty decision to ‘save time’ at the crossing brings consequences, raising the question: “Getting there. Is it worth your life?” The second PSA, Conductor Distraido (Distracted Driver), reaches out to 26 percent of the Chicago media market who watch Spanish-language TV.  It features two guys concentrating on a new truck’s electronic gadgets instead of the highway-rail grade crossing ahead, with the message:  “Stay Focused, Stay Alive at rail crossings.”

The spots will be shown on Chicago-area television stations and their websites in cooperation with the Illinois Broadcasters Association.

“These new safety PSAs remind drivers that their lives are worth the wait at rail crossings,” said Helen M. Sramek, president, Operation Lifesaver, Inc.  According to Sramek, the organization’s safety outreach has aided in an 80 percent drop in vehicle-train collisions over the past four decades. She noted that the PSAs will be distributed nationwide as funds become available.

Canadian Pacific releases 2011 capital plan

"CP is focused on continuously improving service reliability, asset velocity and productivity. With strong demand projected in many of our commodity based businesses, this capital plan will enable us to meet our customer’s needs and continue to lower our operating ratio to create a stronger franchise for the future," said Kathryn McQuade, CP’s Chief Financial Officer.
 
The 2011 Capital Plan will focus on:
 
1. Making strategic and targeted capacity investments to ensure that the efficiencies gained through its long train strategy, repair facility and yard consolidations are sustained as business levels return;

2. Investing in fast payback productivity and technology projects to further its lean and process re-engineering efforts thereby further improving shipment reliability and customer service;

3. Pursuing growth and market-based opportunities, such as its transload, intermodal and energy projects which produce compelling returns; and

4. Continuing to invest in its "Digital Railway" technologies to lift efficiency, service and safety to new levels.

 Major investment categories include the following approximate amounts:

•    $680 million for basic track infrastructure renewal;
•    $200 million for volume growth, productivity initiatives and network enhancements;
•    $80 million to strengthen and upgrade IT systems to enhance shipment visibility and information needs and
•    $40 million to address capital regulated by governments, principally train control.

"Our first priority is to re-invest in the business keeping our core franchise safe and well maintained,” said McQuade. “The improving economy creates opportunities to capture growth more efficiently through infrastructure and technology investments.”

STB to hold hearing on rail competition

The Surface Transportation Board will hold a public hearing on May 3 to explore the current state of competition in the railroad industry and possible policy initiatives to promote more rail-to-rail competition.

“I said last year that it was time for the Board to revisit the current rail regulatory framework and that is what we are doing,” said Board Chairman Daniel Elliott III. “We need to strike a balance between providing access to competitive rail transportation for shippers while maintaining the rail industry’s impressive economic renaissance.”

The hearing will begin at 9:30 a.m., in the Surface Transportation Board Hearing Room, at 395 E Street, SW in Washington, D.C. Written comments are due by February 18, and replies are due by March 18. Parties wishing to speak at the hearing must file a notice of intent to participate and written testimony by April 4.

PUCO approves upgrade of two rail crossings

The Public Utilities Commission of Ohio has received approved construction authorization from the Ohio Rail Development Commission directing Norfolk Southern to upgrade existing flashing lights and roadway gates at the Lewis Road and the Columbia Road/State Route 252 grade crossings located in the city of Olmsted Falls, Cuyahoga County.

NS must submit site plans and cost estimates for the projects to the PUCO by April 12, 2011. Funding for these upgrades will be provided by federal funds. NS will be responsible for completing construction of the upgrades by Jan. 12, 2012.
To increase public safety during the construction of the projects, the PUCO will assist the local government with the cost of improvements such as rumble strips, illumination, improved signage or other safety enhancements at the project location. Funding for the improvements will come from the State Grade Crossing Safety Fund, and will not exceed $5,000.

The PUCO is responsible for evaluating Ohio’s public grade crossings to determine the need for installing active warning devices. In 2010, the PUCO played a part in the installation of lights and gates at 72 grade crossings throughout the state. Over the past two decades, the annual number of train-motor vehicle crashes in Ohio has decreased significantly, from 412 in 1988 to 55 in 2009.

Gary McVoy joins PB

Gary R. McVoy has been named transportation sustainability practice leader of Parsons Brinckerhoff.  

In his new position, McVoy, who will be based in the firm’s Washington, D.C. office, will be responsible for advising PB’s clients on sustainability, environmental stewardship, operations and asset management matters.

McVoy comes to PB after a 31-year career with the New York State Department of Transportation where he most recently served as director of operations, managing the activities of more than 5,600 staff and responsible for the agency’s day-to-day operations. He previously served as the agency’s director of environmental analysis, maintenance and traffic operations. He has led projects and policy in transportation/sustainability, asset management, traveler information, emergency response, environmental stewardship and environmental assessment. He has extensive experience in transportation operations and maintenance management and organizational development. 

BL certifies Lat-Lon monitoring devices

Bourque Logistics, a rail logistics software company in The Woodlands, Texas, has certified Lat-Lon’s remote monitoring devices for integration with BL’s RAILTRAC® GPS software. With this combination, shippers can now enhance decision-making, asset management and regulatory compliance through regular data feeds and alerts on the location and status of railcars.  

Lat-Lon, LLC, of Denver, Colo., has produced solar tracking units for railcars and Locomotive Monitoring Units for 10 years and has partnered with BL to offer best-in-class rail logistics support. BL customers can now seamlessly access the data generated by Lat-Lon devices which includes GPS location, speed and course; wireless sensor data from hatches, brake linkages and trucks; over speed impact data from accelerometers and photographic data from the STU’s internal day/night security camera.  

Railcar and locomotive location and condition status are reported through cellular and/or satellite connections to help shippers with regulatory compliance, tampering risk reduction, improved fleet management and railroad billing disputes concerning car damage or routing. The value of wireless monitoring improves many aspects of a shipper’s business from sales to logistics to customer support to government compliance.

"This important integration between the Lat-Lon devices and RAILTRAC® GPS software will provide significant remote monitoring capabilities to our clients who ship hazardous products. In addition, Lat-Lon sensors will provide car heath data for railcar maintenance and regulatory compliance," said Steve Bourque, president of BL.

"We are pleased to be working with Bourque Logistics to offer more GPS tracking and wireless monitoring options to BL’s loyal customer base," commented David Baker, president of Lat-Lon, LLC.

Arch Coal acquires equity interest in west coast terminal

Arch Coal, Inc., of St. Louis, has acquired a 38 percent interest in Millennium Bulk Terminals-Longview, LLC, the owner of a bulk commodity terminal on the Columbia River near Longview, Wash., in exchange for $25 million plus additional consideration upon the completion of certain project milestones.

"This transaction gives us a direct stake in participating in the growth of U.S. coal exports off the West Coast," said Steven Leer, Arch’s chief executive officer. "With our superior operating position in the Powder River Basin and Western Bituminous Region, we have the capability to service growing coal demand in Asia, the world’s largest and fastest-growing coal market. We believe this first project – along with others in the pipeline – will provide Arch with more exposure to the seaborne thermal market and will further unlock the value inherent in our western coal assets."

Under terms of the agreement, Arch will control 38 percent of the terminal’s throughput and storage capacity to facilitate export shipments of coal off the west coast of the United States. The facility will be capable of handling panamax-sized vessels, which account for the vast majority of the seaborne thermal coal trade for the Asia-Pacific market. The terminal also is dual-served by the UP and BNSF railroads, which will provide Arch with the flexibility to export its southern Powder River Basin and Western Bituminous coals, and eventually coal from its recently-acquired Montana reserves.

The MBT terminal, a former aluminum smelter site, is currently operated as a bulk commodity facility. MBT continues to work on obtaining the required approvals and necessary permits to complete dredging and other upgrades to enable coal, alumina and cementitious material shipments through the brownfield terminal. Once completed, coal shipments could begin in 2012. As currently planned, the MBT facility will utilize existing infrastructure with some minor modifications to handle loading 5 million tons of coal per year in addition to other types of bulk commodities.

Encompassing more than 400 acres, the industrial site offers the potential for terminal expansion should market demand warrant. Should MBT elect to expand the facility, necessary regulatory approvals would be sought and additional infrastructure investment would be required.

According to MBT estimates, the terminal development project should create 120 temporary jobs during the build-out of the facility, and ultimately would result in 70 permanent jobs from ongoing operations at the terminal. The construction of the export facility will generate $2.7 million in sales tax revenue for state and county governments, while expected income tax revenue – once the facility is fully operational – will provide $1.2 million annually for state and county governments.

William Schafer Joins TranSystems

William Schafer, Jr., has joined TranSystems’ freight rail group bringing expertise in planning, engineering, and construction for freight and passenger main track infrastructure, terminal facilities and commuter and light rail systems. Schafer has more than 30 years experience in the rail industry specializing in railroad operation requirements and integration with facilities planning and design.

"We are very pleased to have Bill on board and are confident he will hit the ground running with his knowledge of the industry and strong industry relationships," said John Nussrallah, Market Sector Leader for TranSystems’ Freight Railroads group.

Schafer will be in the company’s Schaumburg, Ill., office focused on working with local passenger clients and Class 1 railroads associated with the Chicago Metroplex and CREATE projects respectively.

Schafer’s past experience has included leadership positions with Jacobs Edwards and Kelcey and Parsons Transportation Group both in Chicago, Ill., where he served as project manager for a number of rail infrastructure design and construction projects. As a former Division Engineer for Norfolk Southern Railroad, Schafer gained practical knowledge of the railroads planning and construction practices. Schafer’s clients have included Class I railroads, commuter rail agencies, light rail agencies, the Federal Railroad Administration, AMTRAK, ports, state DOTs, and local governments.

Schafer earned a Bachelor of Science in Civil Engineering from Ohio University in Athens, Ohio.

 

N.J. Governor

New Jersey Governor Chris Christie put forward a transportation capital plan for the next five years that will improve critical infrastructure throughout N.J. and begin to end the state’s long over reliance on debt to finance transportation projects.

The plan is consistent with the Governor’s commitment to putting N.J. on strong fiscal footing, which is why the plan is centered on responsible funding practices and prudent debt management. The Christie Transportation Capital Plan decreases borrowing while increasing "pay as you go" cash funding of transportation projects in each of the next five years. The plan does not call for any new or increased taxes.

"Today, we are continuing to put N.J. on the path towards fiscal health and proposing a sensible and responsible plan that prioritizes vital transportation projects, while limiting the already-heavy debt burden carried by the taxpayers of our state," said Governor Christie. "After years of mismanagement and the failure to soundly plan for New Jersey’s transportation future, we were left with an unacceptable situation – a system teetering on the edge of failure, without the ability to fund a basic, core function of government. Today, we begin to end that practice by putting forward a Transportation Capital Plan that meets our infrastructure needs and responsibly manages the debt incurred by taxpayers.

"Most importantly, ensuring these critical transportation projects move forward will create thousands of Jersey jobs. By responsibly investing in projects over the next five years we’re putting New Jerseyans to work now and in the future," continued Governor Christie.

The Christie Plan over five years consists of cash contributions from the General Fund and the New Jersey Turnpike Authority, bonding and $1.8 billion in projects requested by the Governor to be undertaken by the Port Authority of New York and New Jersey in conjunction with the State Department of Transportation. As a result, the State will be able to provide $1.6 billion each year for five years for much-needed transportation projects, including $672 million for N.J. Transit capital needs and $200 million per year for local government projects.

"As we have learned with so many other issues in N.J., our most pressing challenges simply will not fix themselves," concluded Governor Christie. "Just as we will not simply drift by chance into balanced budgets or stumble into a less costly, more efficient government, transportation investment in N.J. requires discipline and careful planning to meet our needs in a realistic and fiscally responsible manner. The plan outlined today meets these challenges and ensures that the state will succeed where prior funding schemes have failed."

The former plan, which is about to expire, began in Fiscal Year 2007 and provided $8 billion ($1.6 billion per year) for transportation projects, including $200 million per year for local government projects. This plan relied on a stable $895 million annual General Fund appropriation that became almost entirely devoted to making debt payments, instead of funding current transportation needs. Ultimately, the only way to continue paying for projects was for the state to incur debt. As a result, the former plan allowed the fund to run dry, while nearly all the money spent on current projects was borrowed.

Over the plan’s five year period, the Christie Plan provides almost 37 percent "pay as you go" funding in contrast to the former plan’s five-year PAYGO composition of 10.6 percent.

 

CSXT to grow, create jobs

Leveraging the economic and environmental benefits of rail, customers committed to 130 new or expanded facilities on CSXT lines in 2010. Upon completion, these projects will create as many as 5,200 new jobs.

The facilities are located in 18 states, and include markets such as energy, consumer goods and manufacturing. They represent more than $3.6 billion in customer investments, and ultimately will contribute $216 million in annual revenue to CSXT, said Clark Robertson, assistant vice president-regional development.

The facilities will be built on both CSXT lines and on some of the more than 240 shortlines and regional railroads that connect to CSXT.

"CSXT is playing an important role in our nation’s economic recovery, providing the critical link to connect producers, distributors and consumers," Robertson said. "Just as important, we’re helping to stimulate community investment and jobs."

In addition, 98 customers who had committed to new or increased rail traffic in 2010 and prior years began moving goods and commodities that at full production will result in more than $168 million in revenue.

Trains are capable of moving a ton of freight nearly 500 miles on a gallon of fuel. That fuel efficiency, coupled with CSXT’s market reach that includes connections to more than 70 ocean, lake and river ports, is important to customers and economic development agencies as they look for sites for a variety of businesses.