WASHINGTON – An alleged al Qaeda-backed plot to derail a U.S. passenger train in Canada sought to exploit the vulnerabilities of railroads that have not gotten much attention from the American public.
While the United States has sharply tightened security around airlines since the September 11, 2001, attacks, trains are far harder to police, with masses of passengers getting on and off and stops at many stations on a single line. Thousands of miles of track, bridges and tunnels present a major challenge to monitor.
The Maine House has rejected a pair of right-to-work bills. The first bill would make Maine a “right-to-work” state and the second would prohibit employers from deducting union dues or service fees from employees who have opted out of being in a union. If the bills had passed, it would have been illegal for employers in Maine to require workers to join a union or pay union dues as a condition of employment. The largely Democratic House defeated the right-to-work bill by a 92-53 vote and the service fees bill was rejected by a 89-56 vote. Though the House rejected the bills, they still have to be voted on by the state Senate. 04/26/13 UPDATE: The Maine Senate voted down both right-to-work bills, effectively killing them. The bills were supported by Governor Paul LePage and republicans.
George K. Strickland, the former director of public relations for UTU Canada, died April 14. He was 91. Strickland served with Royal Canadian Mounted Police before hiring out with Canadian Pacific Railway. He later worked as a UTUIA field supervisor prior to becoming the Canadian director of public relations. A member of Local 483 at Toronto, Ont., Strickland was a 32nd Degree Mason, a member of the Tunis Temple Shriners and Worl War II veteran. He is survived by children Jim, Bob and Cathy, and was preceded in death by his wife, Eileen.
Canadian Pacific
Canadian Pacific reported April 24 first-quarter net income of C$217 million, up from C$142 million in the first quarter of 2012, a 51 percent improvement in earnings per share.
First-quarter revenue of roughly C$1.5 billion was up 9 percent, setting “a quarterly record,” the company said. CP’s operating ratio was 75.8%, a 430 basis point improvement and also a quarterly record, the company said.
“CP delivered the best first quarter results in its history despite challenging winter conditions,” said CP CEO E. Hunter Harrison. “This is a true testament to the determination and perseverance of our outstanding team of railroaders. There remains a lot of work to do as we continue to make significant changes to our operating model. With a very strong start to the year and momentum quickly building, I am now even more confident that we are on pace toward the best year-end financial and operating performance in CP’s history.”
Norfolk Southern
Norfolk Southern reported a 10 percent improvement in first-quarter profit April 23 as an increase in shipping volume and a land sale offset continued weak coal demand.
The Norfolk, Va.,-based railroad said it generated $450 million net income, or $1.41 per share, on $2.74 billion revenue. That’s up from $410 million, or $1.23 per share, a year ago.
Revenue was relatively flat compared to last year’s $2.79 billion. Intermodal revenue improved by 9 percent and revenue from all other shipments improved 2 percent to nearly offset coal’s decline. The first-quarter railway operating ratio was 74.8 percent.
Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.
“Coal continues to be the wild card in our business outlook, although we do see some signs of stability,” CEO Wick Moorman said.
Norfolk Southern operates about 20,000 miles of track in 22 states and the District of Columbia.
Canadian National
Canadian National Railway Co. earnings declined less than analysts estimated in the first quarter as cargo growth blunted the impact of higher operating costs.
Earnings were curbed by an increase in operating costs such as fuel, labor and snow removal, as the winter brought extreme cold and more precipitation than normal in western Canada.
The results however increased 3 percent from the adjusted earnings of C$1.18 ($1.17) in the year-ago quarter. Revenues increased 5 percent year over year to C$2,466 million (approximately $2,447 million), which was attributed to improved performance across most of Canadian National’s commodity segments.
On a year-over-year basis, revenues increased 17 percent for Petroleum and Chemicals, 7 percent for Intermodal, 3 percent for Metals and Minerals, 2 percent for Forest Products, 2 percent for Automotive and 1 percent for Grain and Fertilizers. Coal business witnessed a drop of 1 percent.
Operating ratio (defined as operating expenses as a percentage of revenue) was 68.4 percent.
Union Pacific
Union Pacific reported a profit of $957 million April 18 for the first quarter, up 11 percent from $863 million a year earlier. It also reported that revenue increased 3.5 percent to $5.29 billion.
Both earnings and revenue were higher for the first quarter, despite weaker shipments of coal and agricultural products. Coal shipments declined 6 percent and agricultural shipments dropped 9 percent. Chemicals and automotive volume rose 14 percent and 13 percent, respectively.
Chief Executive Jack Koraleski said much uncertainty remains in the year ahead, but the company’s “diverse franchise supports our continued focus on profitable growth and business development opportunities.”
The company’s operating ratio of 69.1 percent improved 1.4 points.
UP, which is based in Omaha, Neb., reported a profit of $957 million, or $2.03 a share, up 11% from $863 million, or $1.79 a share, a year earlier. Revenue increased 3.5 percent to $5.29 billion.
Kansas City Southern
Kansas City Southern beat analysts’ expectations with a 39 percent rise in quarterly profit, as strong automotive and cross-border intermodal shipments offset declines in grain volumes.
Intermodal shipment revenue rose about 15 percent to $79.8 million, while revenue from shipment of autos rose 31 percent to $49.1 million. Cross-border intermodal revenue rose 71 percent. Revenue from agriculture and minerals business fell about 28 percent.
KCS reported a first quarter 2013 operating ratio of 70.5 percent, a 0.7 point improvement from first quarter 2012
“We believe that if harvest levels return to normal in the fall, the KCS grain revenues should rebound later in 2013,” Chief Executive Officer David Starling said.
CSX
CSX said coal revenue fell by 13 percent to $726 million in the quarter as it delivered less to utilities. But exports of metallurgical coal, used in steel making, rose to 7 million tons over last year’s 6.3 million tons. The company’s first-quarter profit rose 2 percent.
The Jacksonville, Fla.-based railroad on April 16 reported $459 million net income, or 45 cents per share, on $2.96 billion in revenue, which beat Wall Street’s expectations and topped last year’s $449 million profit.
CSX’s operating ratio improved to 70.4 percent in the first quarter from 71.1 percent a year earlier.
“We are prepared for the economy to accelerate and have great confidence in the long-term outlook for the business,” said CSX chairman, president and CEO Michael J. Ward.
CSX operates some 21,000 route miles in 23 states and the District of Columbia.
WASHINGTON – Airline passengers will have to leave their knives at home after all. And their bats and golf clubs.
A policy change scheduled to go into effect this week that would have allowed passengers to carry small knives, bats and other sports equipment onto airliners will be delayed, federal officials said April 22.
Canadian police and intelligence agencies said Monday that they’ve thwarted an Al Qaeda-supported plot that aimed to blow up a passenger rail line, with some news accounts suggesting that the target was train service connecting Toronto and New York City.
Amtrak, which operates a train line between the two cities, issued a statement saying it was “aware” of the investigation. Amtrak President & CEO Joe Boardman said later on Facebook that the alleged plot didn’t pose an “imminent threat to Amtrak passengers, employees or the general public.”
Yet another packet of right-to-work bills has made an appearance, this time in Pennsylvania. Pennsylvania legislators drafted House Bills 50, 51, 52 and 53 to become a “Right-to-Work” state. Ten different unions marched in downtown Chambersburg, Pa., in protest of the bill over the weekend. If passed, the bills would allow non-union members the same benefits that dues-paying members receive, such as higher wages and benefits and union representation. House Bill 50, sponsored by Rep. Daryl Metcalfe, seeks to end union membership or dues payment by non-members as a condition of employment. House Bill 51, sponsored by Rep. Kathy Rapp, seeks to prohibit unions from collecting dues from non-union public school employees. House Bill 52, sponsored by Rep. Fred Keller, would prohibit unions from collecting dues from non-union state employees. House Bill 53, sponsored by Rep. Jim Cox, seeks to prohibit unions from collecting dues from non-union local government employees. Rep. Stephen Bloom is also proposing House Bill 250, that would repeal a state law known as “maintenance of membership.” The bill would essentially allow dissatisfied union members to quit their union at any time, as opposed to a current 15-day window toward the end of contracts. Rep. Jerry Knowles also seeks to pass an umbrella bill that would prevent union membership from being a condition of employment in the private sector. Metcalfe has introduced this union-busting legislation in every session over the past 14 years. This year is viewed as different, because Republicans control both the House and Senate of the Pennsylvania Legislature, as well as the governor’s seat. Legislators in favor of the bill hope to introduce it to the House speaker soon.
Two ethanol safety seminars are being held in Ohio this week hosted by The Renewable Fuels Association (RFA) and Wheeling & Lake Erie Railway.
The first safety seminar will be held Wednesday, April 24, at the American Red Cross in Akron, Ohio, and the second is to be held in Canton, Ohio, at the auditorium of the Canton Township Training Center on Thursday, April 25. Both seminars are free and have two sessions. The first session is from 9 a.m. – 2 p.m. and the second is from 5:30 p.m. – 10 p.m. on each day. The seminar is free and a meal will be provided at each session due to a grant received from the Federal Railroad Administration.
Attendees will receive information on ethanol safety and what to do in case of an accident involving ethanol. The seminar focuses on transportation and transfer of ethanol-blended fuels, storage and dispensing locations, firefighting foam principles, health and safety considerations for ethanol-blended emergencies and tank farm and bulk storage fire incidents.
The RFA will be co-hosting Ethanol Safety Seminars throughout 2013. Scheduled seminar locations and dates are Troy, Mich., (May 9, 2013); Grand Island, Neb., (June 12, 2013); Columbus, Neb., (June 13, 2013); Salem, Ore., (June 18 & 19, 2013); and a statewide tour of California throughout July.
Those interested in attending a free seminar should register at www.rfa.traincaster.com. More information on ethanol emergency response can be found at www.ethanolresponse.com, or by calling (402) 391-1930.
The SMART Transportation Division (UTU) general committee of adjustment representing conductors and assistant conductors employed by Southeastern Pennsylvania Transportation Authority (SEPTA) has reached a tentative contract with the commuter railroad.
The agreement calls for wage increases totaling 11.5 percent over the five-year life of the contract that are similar to increases the carrier agreed to with the Transport Workers Union in 2009. TWU represents bus and subway operators and mechanics employed by SEPTA.
Approximately 390 conductors and assistant conductors are represented by SMART Transportation Division (UTU) Local 61 in Philadelphia.
Local 61 Treasurer Elliott D. Cintron said contract ballots, which have been mailed to all affected members, will be tabulated after April 24.
The tentative agreement must also be approved by SEPTA board members.
Amtrak employees represented by the SMART Transportation Division (UTU) have ratified a five-year agreement with management of the National Railroad Passenger Corp. (Amtrak).
The new pact covers approximately 2,300 members employed as conductors, assistant conductors, yardmasters and dining car stewards.
The agreement is retroactive to 2010 and the new rates of pay should become effective within 30 to 45 days. Payment of retroactive wages will be made approximately 60 days after the wage rates take effect.
“The membership recognized the value of the proposed contract and in ratifying the agreement have secured the wages and benefits that were hard-fought and hard-won by the negotiating team,” said SMART Transportation Division Assistant President John Previsich.
With the assistance of Previsich, the contract negotiations were conducted by Amtrak General Chairpersons Dirk Sampson (GO 769), Bill Beebe (GO 663) and Robert J. Keeley (GO 342).
“I must thank President Mike Futhey and Assistant President John Previsich, whose efforts made this agreement possible,” Sampson said. “Despite moments of uncertainty that existed, their leadership, patience and confident demeanor kept this very long and difficult round of negotiations moving forward. I would also like to recognize the efforts of General Chairperson Bill Beebe, Vice General Chairperson Charlie Yura and Local 1361 Chairperson Gary J. Hopson for their assistance in bringing these negotiations to a conclusion.”
Chairperson Robert Keeley added, “I would also like to thank the aforementioned, along with General Committee Secretary Charles Fowler, Vice General Chairperson Salvador Ruiz, Local Chairpersons Keenan Lett and James Madden, and Brother Cleophas Brickhouse,” Keeley said. “Solidarity has always been a fragile thing, fraught with complex and difficult commitments. Real solidarity is an easier statement to make than it is to keep and put into practice. We walked into negotiations together, and we found success together. I want to be sure to thank all involved for demonstrating union solidarity at its very best.”
The agreement was passed by nearly 60 percent of eligible train-service members that voted and by 86 percent of eligible yardmasters that voted.
WASHINGTON – An alleged al Qaeda-backed plot to derail a U.S. passenger train in Canada sought to exploit the vulnerabilities of railroads that have not gotten much attention from the American public.
Canadian Pacific reported April 24 first-quarter net income of C$217 million, up from C$142 million in the first quarter of 2012, a 51 percent improvement in earnings per share.
Norfolk Southern reported a 10 percent improvement in first-quarter profit April 23 as an increase in shipping volume and a land sale offset continued weak coal demand.
Canadian National Railway Co. earnings declined less than analysts estimated in the first quarter as cargo growth blunted the impact of higher operating costs.
Union Pacific reported a profit of $957 million April 18 for the first quarter, up 11 percent from $863 million a year earlier. It also reported that revenue increased 3.5 percent to $5.29 billion.
Kansas City Southern beat analysts’ expectations with a 39 percent rise in quarterly profit, as strong automotive and cross-border intermodal shipments offset declines in grain volumes.
CSX said coal revenue fell by 13 percent to $726 million in the quarter as it delivered less to utilities. But exports of metallurgical coal, used in steel making, rose to 7 million tons over last year’s 6.3 million tons. The company’s first-quarter profit rose 2 percent.
Canadian police and intelligence agencies said Monday that they’ve thwarted an Al Qaeda-supported plot that aimed to blow up a passenger rail line, with some news accounts suggesting that the target was train service connecting Toronto and New York City.
Yet another packet of right-to-work bills has made an appearance, this time in Pennsylvania. Pennsylvania legislators drafted House Bills 50, 51, 52 and 53 to become a “Right-to-Work” state.
The SMART Transportation Division (UTU) general committee of adjustment representing conductors and assistant conductors employed by Southeastern Pennsylvania Transportation Authority (SEPTA) has reached a tentative contract with the commuter railroad.