WASHINGTON – In response to a deadly train derailment last summer, the Canadian government Wednesday ordered the country’s railroads to phase out tens of thousands of older, puncture-prone tank cars from crude oil transportation within three years.
Though Transport Canada and its U.S. equivalent, the Department of Transportation, have been working together to address widespread concerns about the safety of moving large quantities of crude oil and ethanol in trains, the announcement puts Canada a step ahead.
Buses are starting to give airlines, trains, and even cars a run for their money. With spiffed up coaches, internet reservations, and often significantly cheaper fares, bus travel is becoming an increasingly popular alternative to flying, taking the train and even driving your own car, according to a new study released Monday.
“It’s a … mode of travel that’s really shaking things up,” says Joseph Schwieterman, director of DePaul University’s Chaddick Institute which conducted the study. “The ability to hop on a bus for half the price of the next cheapest option is a game changer.”
CLEVELAND – As part of an ongoing effort to secure a law mandating a minimum of two crew members in the cab of all locomotives, the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART–TD) have provided their state legislative boards with model legislation to secure minimum crew size laws on the state level. The state-lobbying campaign was developed jointly by the two unions. “Significant research and work has gone into developing language that both minimizes the potential for a federal pre-emption challenge and maximizes the likelihood that the legislation will survive any such challenge,” wrote BLET National President Dennis R. Pierce and SMART Transportation Division President John Previsich in a cover letter introducing the model legislation to BLET and SMART local officers. “Therefore, when proposing legislation on this subject, it is imperative that you do not deviate from the model.” Among other items, the legislation stipulates that any person who willfully violates the two-person crew law would be subject to financial penalties. Crew size has become a hot button issue following the 2013 oil train derailment and explosion in Lac-Megantic, Quebec. While an official cause has not been determined, the train in question was operated by a single employee. “We urge BLET and SMART Transportation Division officers to work with their counterparts in moving legislation forward on this issue of paramount importance to the members we represent,” President Pierce and President Previsich wrote. On the national level, the Safe Freight Act (H.R. 3040) is currently making its way through the U.S. House of Representatives. Representatives Michael Michaud (D-Maine) and Chellie Pingree (D-Maine) introduced the legislation on Aug. 2, 2013, in the aftermath of the Lac-Megantic tragedy, and the bill currently has 70 co-sponsors. H.R. 3040 would require that “no freight train or light engine used in connection with the movement of freight may be operated unless it has a crew consisting of at least 2 individuals, one of whom is certified under regulations promulgated by the Federal Railroad Administration as a locomotive engineer pursuant to section 20135, and the other of whom is certified under regulations promulgated by the Federal Railroad Administration as a conductor pursuant to section 20163.”
The recent spate of accidents in the U.S. and Canada involving trains carrying crude oil demonstrates that “far too often, safety has been compromised,” the head of the top U.S. transportation safety agency said today.
The amount of crude oil transported on railroads — shipments that frequently pass through the Chicago area — has more than quadrupled since 2005, and some of it is especially volatile, said National Transportation Safety Board Chairman Deborah Hersman.
CSX reported to the public its first quarter 2014 earnings and dividend increase. The railroad announced net earnings of $398 million or $.040 per share. This is a decrease from last year’s first quarter reports of $462 million or $0.45 per share.
However, revenue for the quarter grew two percent to $3 billion on volume increases of three percent, with strength in merchandise markets and intermodal offsetting the declines in coal shipments.
Operating income for the railroad declined 16 percent to $739 million, while operating ratio increased 520 basis points to 75.5 percent, due to harsh weather. CSX estimates that weather interruptions in service increased expenses by around six cents per share. Optimistically, CSX expects modest full-year earnings growth in 2014.
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.
“The company is indebted to the dedicated men and women of CSX who worked tirelessly through one of the worst winters on record to keep the network running as fluidly as possible,” Chairman, President and CEO Michael J. Ward. “Thanks to the hard work of our employees, service levels are gradually recovering, and we are capitalizing on an economy that continues to show positive momentum.”
In an announcement made April 16, Kansas City Southern reported record first quarter revenues and carloads. Revenues for the first quarter were $607 million, an increase of 10 percent more than last year’s first quarter. The railroad also saw a four percent increase in carloads for the quarter.
Operating income came in at $160 million, but excluding lease termination costs, adjusted operating income came in at $190 million, a 17 percent increase over last year’s first quarter. The railroad saw an operating ratio of 73.7 percent or an adjusted operating ratio of 68.7 percent. This is a 1.8-point improvement over last year.
Diluted earning per share came in at $0.85 or adjusted diluted earnings per share were at $1.05 for the first quarter of 2014. This is an 18 percent increase over the first quarter of 2013. Net income came in at $94 million.
“We are pleased with how our company performed during the first quarter,” President and CEO David L. Starling said. “All six commodity groups reported year-over-year revenue gains led by Agriculture and Minerals, which increased 40 percent over the prior year. Later in the first quarter, we also recorded higher than expected utility coal volumes and revenues as a result of higher natural gas prices, which made coal a more competitive option benefitting certain plants we serve.
“While it is still early in the second quarter, KCS business levels have improved in April. The indication that our core business appears to be gaining strength provides us with positive momentum towards achieving the 2014 goals we outlined to investors in January.”
Union Pacific reported a record first quarter in an earnings announcement made April 17. The railroad reports a net income of $1.1 billion or $2.38 per diluted share, up from the first quarter 2013 reports of $957 million or $2.03 per diluted share. Taht is a 17 percent increase over last year.
Operating revenues totaled $5.6 billion, up seven percent over last year’s first quarter operating revenue of $5.3 billion. Business volumes, which are measured by total revenue carloads, increased five percent. Agricultural products, industrial products, coal, intermodal and automotive all increased in volume for the quarter. Freight revenue increased a total of six percent for the quarter.
Operating ratio for the railroad was at 67.1 percent, a first quarter record and 2.0 points better than the first quarter of 2013. Operating income was up 14 percent to $1.85 billion.
“As we look forward, we’re watching the economy very closely, as well as the potential impacts of weather, particularly on our coal and grain business,” Jack Koraleski, CEO, said. “There’s still a lot of year ahead of us, but we are seeing signs of gradual economic improvement, and we’re encouraged by the opportunities it presents. With the power and potential of the Union Pacific franchise, we’ll leverage these opportunities to drive record financial performance and shareholder returns this year and in the years to come.
“We’re proud of the efforts of the men and women of Union Pacific, who worked tirelessly to serve our customers despite these weather challenges and helped us achieve such a solid start to the year.”
In an announcement made early April 22, Canadian Pacific said the first quarter of 2014 had the best first quarter financial results in the company’s history.
The company saw a 16 percent increase in year-over-year improvement in earnings per share with a reported C$254 million or C$1.44 per diluted share. The first quarter of 2013 only reported C$217 million or C$1.24 per share.
Total revenues for the railway came in at C$1,509 million, an increase of one percent over last year’s first quarter. Operating expenses saw a four percent decrease to C$1,086 million. While operating income saw a 17 percent increase to C$423 million. Operating ratio also saw an improvement to 72.0 percent, a 380 basis point improvement.
“CP delivered solid results in a period that was severely impacted by extraordinary cold and severe winter weather conditions,” CEO E. Hunter Harrison said. “In the face of such difficult operating conditions, I am particularly proud of the women and men of CP who remained on the job 24/7, to keep the railway operating.
“Despite a slow start to the year and the reduced capacity which limited our ability to meet strong customer demand, we still have the utmost confidence in our ability to achieve our financial targets for 2014.”
Canadian National railway reported increases in revenues in a teleconference held late April 22. The railway reports a net income for the first quarter 2014 of C$623 million or C$0.75 per diluted share. Net income for the same quarter of 2013 was only at C$555 million or C$0.65 per diluted share.
The company saw a five percent increase of operating income to C$820 million. Revenues saw a nine percent increase to C$2,693 million, while revenue ton-miles also saw a five percent increase and carloads saw a one percent increase.
Operating ratio for the railway deteriorated 1.2 points to 69.6 percent. The previous year’s quarter reported operating ratio at 68.4 percent. Free cash flow for the first quarter of this year came in at C$494 million, quite an increase over last year’s C$151 million.
“CN delivered solid first quarter results thanks to a dedicated team of railroaders who labored long and hard to keep us rolling through the harshest winter in decades,” CEO and President Claude Mongeau said. “The winter of a lifetime took its toll on network capacity and affected all of our customers, but I’m pleased that CN’s recovery is now well underway, with key safety, operating and service metrics returning to pre-winter levels.
“Witch continued focus on supply chain collaboration and solid execution, CN is reaffirming its 2014 financial outlook and increasing its capital envelope to C$2.25 billion in support of its commitment to growth, efficiency and safety.”
Norfolk Southern reported its first quarter financial results April 23. Net income for the railroad saw a decrease to $368 million or $1.17 per diluted share for the first quarter 2014. Net income for the same quarter of 2013 was at $450 million or $1.41 per diluted share. Although, $60 million or $0.19 per diluted share of the $450 million was due to a gain from a land sale.
Operating revenues for the railroad totaled $2.7 billion, a two percent decrease from first quarter 2013. Shipment volumes also decreased by one percent during the quarter. Income from railway operations came in at $667 million, three percent lower than last year.
Operating expenses for the first quarter came in at $2 billion, a one percent decrease from the same quarter of 2013. Operating ratio for the railroad was 75.2 percent versus 74.8 percent for the same period last year.
“Following the extreme winter weather across the U.S. rail network which impacted first-quarter results, we are seeing a rebound in shipments across all of our business,” said Wick Moorman, CEO. “Our people responded admirably to meet the challenges of the harsh conditions, and we remain focused on delivering superior service to our customers.”
Campus shuttle operators for the University of Tennessee’s transportation service chose the SMART Transportation Division as their collective bargaining representative in a representation election April 16.
Of the approximately 50 eligible voters, 26 voted for SMART, 10 voted for no union representation and 13 chose not to participate in the election
The operators transport students, faculty and staff throughout the 550-acre campus located in Knoxville, Tenn., and will provide rides to more than 814,000 passengers per year.
SMART Transportation Division Director of Organizing Rich Ross and Alternate Vice President – Bus Calvin Studivant spent nine days on the campus just prior to the vote, engaging operators in discussions about their needs and answering their questions.
The operators are employed by First Transit, Inc., based in Cincinnati, Ohio.
“The good news for this group of operators is that Calvin is close to finalizing an agreement for the First Transit group at Rutgers University that we organized in December and will be negotiating this contract with the same labor relations officer,” Ross said. “Hopefully, due to their familiarity, they can reach a mutually acceptable agreement quickly.”
Bus operators for Rutgers University’s inter-campus bus and shuttle system seeking union representation overwhelmingly chose the SMART Transportation Division Dec. 9 as their collective bargaining representative.
WASHINGTON – Edward Wytkind, president of the AFL-CIO’s Transportation Trades Department, issued this statement in support of U.S. Transportation Secretary Anthony Foxx’s effort to highlight the importance of investing in America’s surface transportation needs, and applauded the Secretary’s effort to engage transportation labor:
“In today’s economy, where there are too few jobs and too many potholes and aging transit systems, investing in infrastructure is an obvious and desperately-needed step that will keep America competitive. We applaud Secretary Foxx for crisscrossing the United States this week to highlight our crumbling infrastructure and the desperate need to advance a multi-year investment in our surface transportation system.
“We are also pleased that Secretary Foxx reached out to transportation unions as partners in this effort. Today we participated in a thoughtful and productive call with the Secretary during his latest stop in Louisiana and pledged our shared commitment to address the pending insolvency of the High Trust Fund and convince lawmakers that short-term stopgap funding measures will not cut it.
“Transportation should not be a partisan issue. The American people and businesses of all sizes need safe and efficient passenger and freight transportation systems. They know first-hand what it means to live with deteriorating infrastructure and transit systems that face rising demand and badly stressed budgets. “We pledge our full support to the Secretary’s effort to expand our surface transportation system, create millions of jobs and build a legacy we can be proud to pass on to the next generation. We can’t afford to wait.”
OCALA, Fla. – Ocala Police are searching for whoever robbed a freight train this week. The crime sent the train’s conductor to the hospital. Now the railroad company is offering a reward for the robber’s capture.
People at the Ocala Laundromat where train tracks run underneath the Highway 200 overpass, couldn’t believe the crime that happened there early Tuesday morning. Like something out of the “Old West”, someone robbed the train.
Last year, with the help of thousands of volunteers, letter carriers all across America collected more than 74.4 million pounds of non-perishable food—the second-highest amount since the drive began in 1992, bringing the grand total to just under 1.3 billion pounds. “It’s such an easy way for our customers to help people in their own communities,” NALC President Fredric Rolando said. “All they have to do is leave a non-perishable food donation in a bag by their mailboxes. And that’s it! Then, just like we do every Saturday of the year, letter carriers will swing by—only on Saturday, May 10, we’ll be ready to pick up the food donations and make sure they get to a local food bank or other charity within that community.” Food banks and shelters usually benefit from an upswing in charitable donations during the winter holiday season. By spring, these stocks dwindle. In addition, with the advent of the summer months, many low income families are left scrambling to find food for their children. In order to meet the high demand for donations, Union members froma cross the labor movement are assisting with the program by volunteering to distribute and collect food in their local communities. You can help by leaving any non-perishable items by your mailbox on Saturday may 10th where they will be picked up by your local letter carrier. Those with questions about the drive should contact NALC Community and Membership Outreach Coordinator Pam Donato at 202-662-2489, or send an e-mail to donato@nalc.org.
Visibility was 10 miles and the morning sun had pushed the temperature close to 90 as Danny Joe Hall guided his mile-long Union Pacific freight train east through the grasslands of the Oklahoma Panhandle. Near the farming town of Goodwell, federal investigators said, the 56-year-old engineer sped through a series of yellow and red signals warning him to slow down and stop for a Los Angeles-bound train moving slowly onto a side track.
The 83-mph collision killed Hall and two crewmen. Dozens of freight cars derailed, and the resulting inferno sent towers of black smoke over the plains, prompting the evacuation of a nearby trailer park. As it turned out, Hall was colorblind. The National Transportation Safety Board’s subsequent probe of the June 2012 wreck faulted the engineer’s deteriorating eyesight and inadequate medical screening that failed to fully evaluate his vision problems.
But the Goodwell crash underscored a far larger concern: Railroads are the only mode of U.S. commercial transportation without national requirements for thorough, regular health screenings to identify worker ailments and medications that could compromise public safety.
WASHINGTON – In response to a deadly train derailment last summer, the Canadian government Wednesday ordered the country’s railroads to phase out tens of thousands of older, puncture-prone tank cars from crude oil transportation within three years.
Buses are starting to give airlines, trains, and even cars a run for their money. With spiffed up coaches, internet reservations, and often significantly cheaper fares, bus travel is becoming an increasingly popular alternative to flying, taking the train and even driving your own car, according to a new study released Monday.
The recent spate of accidents in the U.S. and Canada involving trains carrying crude oil demonstrates that “far too often, safety has been compromised,” the head of the top U.S. transportation safety agency said today.
CSX reported to the public its first quarter 2014 earnings and dividend increase. The railroad announced net earnings of $398 million or $.040 per share. This is a decrease from last year’s first quarter reports of $462 million or $0.45 per share.
In an announcement made April 16, Kansas City Southern reported record first quarter revenues and carloads. Revenues for the first quarter were $607 million, an increase of 10 percent more than last year’s first quarter. The railroad also saw a four percent increase in carloads for the quarter.
Union Pacific reported a record first quarter in an earnings announcement made April 17. The railroad reports a net income of $1.1 billion or $2.38 per diluted share, up from the first quarter 2013 reports of $957 million or $2.03 per diluted share. Taht is a 17 percent increase over last year.
In an announcement made early April 22, Canadian Pacific said the first quarter of 2014 had the best first quarter financial results in the company’s history.
Canadian National railway reported increases in revenues in a teleconference held late April 22. The railway reports a net income for the first quarter 2014 of C$623 million or C$0.75 per diluted share. Net income for the same quarter of 2013 was only at C$555 million or C$0.65 per diluted share.
Norfolk Southern reported its first quarter financial results April 23. Net income for the railroad saw a decrease to $368 million or $1.17 per diluted share for the first quarter 2014. Net income for the same quarter of 2013 was at $450 million or $1.41 per diluted share. Although, $60 million or $0.19 per diluted share of the $450 million was due to a gain from a land sale.
Campus shuttle operators for the University of Tennessee’s transportation service chose the SMART Transportation Division as their collective bargaining representative in a representation election April 16.