The U.S. Senate yesterday passed a short-term surface transportation funding extension that includes a long-term extension of the positive train control (PTC) implementation deadline. The Senate’s action followed the House’s approval of the bill on Tuesday, and President Obama is expected to sign it.
The legislation reauthorizes funding of transportation programs through Nov. 20, and pushes back the Dec. 31 deadline for railroads to install PTC safety technology to Dec. 31, 2018, and as late as 2020 under certain circumstances.
The deadline extension will ward off a nationwide shutdown of railroad services, which industry leaders said would occur after Jan. 1, 2016, if the deadline wasn’t postponed. Most railroads would have missed the Dec. 31 deadline, and many indicated they wouldn’t operate in violation of federal law.
Read more from Progressive Railroading about PTC extension and Sarah Feinberg’s confirmation as administrator to the FRA.
SMART Transportation Division Director of Organizing Rich Ross reports that non-operating employees of Central Maine & Quebec Railway (CMQ) located in Hermon, Maine, have voted in overwhelming favor of representation by the SMART Transportation Division.
The National Mediation Board certified the election results October 28, 2015. “I would like to thank SMART TD Organizer Larry Grutzius (Local 1895 – Chicago) for all of his hard work in this campaign,” Ross said.
CMQ is a Class III freight railroad responsible for car repair, car storage and switching services in the states of Maine and Vermont. The non-operating employees build and repair track and track infrastructure, repair and inspect freight cars and locomotives. CMQ operates 220 miles of track in Maine and 23 miles in Vermont. The railway is owned by Railroad Acquisition Holdings, LLC.
WASHINGTON — Transportation labor leaders — gathered today at the fall Executive Committee meeting of the Transportation Trades Department, AFL-CIO (TTD) — met with key members of Congress to seek solutions to a woefully underfunded transportation system and to boost job creation in what remains a slow recovery that TTD’s leader said is “leaving too many working people behind.”
“The need for long-term investments in our transportation system and infrastructure will not ‘just go away,’” said Edward Wytkind, president of TTD, who added that the dialogue with congressional guests “focused like a laser” on ending the stalemate on crucial investment bills. “With the recent progress on a surface transportation bill and strong bipartisan display of support for the U.S. Merchant Marine, we may be witnessing a brief but important timeout from senseless partisanship.”
TTD hosted roundtable discussions with Rep. Peter DeFazio (D-OR), the ranking Democrat on the Transportation and Infrastructure Committee, Senator Bill Nelson (D-FL), the ranking Democrat on the Senate Commerce Committee, and Rep. Mario Diaz-Balart (R-FL), chairman of the Transportation, Housing and Urban Development Appropriations Subcommittee.
“As Chairman of the Transportation Appropriations Subcommittee, I value input from my friends in the transportation labor community who bring a critically needed front-line employee perspective to our work,” Diaz-Balart said. “By seeking the views of both labor and business, community leaders and other important partners, we can develop real, long-term solutions to our nation’s transportation infrastructure challenges.”
“We need to increase investments in our infrastructure and focus on the areas that will truly help create jobs and support our economy,” Nelson said. “We also need to protect the men and women who are out there every day making our transportation systems work.”
“Transportation infrastructure is at the heart of the U.S. economy. Our economic competitiveness, our businesses and millions of American jobs depend on robust investments in our crumbling network of roads, bridges, highways and transit systems,” DeFazio said. “We must continue to push for legislation that will modernize our nation’s transportation infrastructure, create good jobs and enhance the rights and working conditions of the men and women who keep America moving. I thank TTD for joining in that effort.”
The Executive Committee also held a discussion about plans for member education in the 2016 presidential election.
TTD, which represents some 2 million workers in every sector of transportation, has been working with its affiliates on a flurry of key issues. Just today TTD and its maritime and aviation affiliates sent a letter to President Obama urging his Administration to keep maritime and aviation out of any TTIP negotiations. TTD has aggressively countered the trucking lobby’s agenda to bring “unscientific” hair specimen drug testing to front line bus and truck drivers. And TTD coordinated efforts with its member unions to advance a surface transportation bill out of committee last week that awaits House floor consideration.
“When you’re talking about transportation jobs, you’re talking about middle-class jobs — the types of jobs that elude too many Americans,” Wytkind added. “The policies that affect our sector have a real impact on working families, and that’s something Congress can’t forget despite working in the Washington bubble.”
President Obama’s choice to lead the Federal Railroad Administration (FRA) has been approved by the Senate committee that handles transportation issues.
Obama’s nomination of Sarah Feinberg, who has been leading the FRA since January, for a full-time term atop the rail agency was approved by the Senate Commerce, Science and Transportation Committee on Tuesday in a 19-1 vote.
Lawmakers on the panel said Feinberg deserves a shot at the full-time FRA chief position after handling multiple accidents since she became interim rail administrator earlier this year.
In a letter to state directors, National Legislative Director John Risch and Alternate National Legislative Director Greg Hynes report the following:
“Unfortunately, a two-person crew amendment WILL NOT be offered to H.R. 3763, the Surface Transportation Reauthorization and Reform (STRR) Act of 2015.
“Due to the expected rules governing consideration of the legislation and agreements among the leadership of the House Transportation and Infrastructure Committee on which amendments will be allowed, there is no path for the amendment to pass or receive strong support. A significant loss on the floor would set back our efforts.
“Please pass this information down the chain to your LRs and other members you are able to reach.
“While this is not the result we hoped for, we ask that you all continue to push forward and generate support for the stand-alone, two-person crew legislation, H.R. 1763, the Safe Freight Act. The more cosponsors we have on H.R. 1763, the better position we will be in to pass it as a stand-alone bill or attach it to a larger bill next time the House considers rail safety legislation.
“As always, thank you for all of your hard work and willingness to assist in our efforts.”
In a press release Oct. 14, 2015, CSX announced record financial results for the third quarter of 2015.
Net earnings for the railroad came in at $507 million for the quarter, compared to the $509 million for the same period last year, which translates into a third quarter record of $0.52 per share, as compared to $0.51 per share in 2014.
CSX reports that revenue declined nine percent, while expenses decline 11 percent as a result of low fuel prices, cost reductions and savings from efficiency initiatives. The resulting $933 million in operating income drove a third quarter record operating ratio of 68.3 percent.
“CSX’s third quarter results demonstrate the company’s ability to leverage improving service while controlling costs in a dynamic environment where commodity prices and the strength of the U.S. dollar are challenging many of our markets,” CEO Michael J. Ward said. “Our performance supports strong pricing and continued efficiency gains as we continue to drive value for customers and shareholders.”
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.
Overall, Kansas City Southern (KCS) reported decreases in earnings for the third quarter 2015. However, the railroad did experience a record-setting operating ratio of 65.2 percent for the quarter, a 0.9-point improvement.
KCS reports revenues of $632 million, a decrease of seven percent as compared to the third quarter of 2014. Operating income also saw a four percent decrease to $220 million as compared to the reported $229 million a year ago. Reported net income totaled $132 million, or $1.20 per diluted share as compared with the $138 million or $1.25 per diluted share of a year ago. Adjusted earnings per share came in at $1.21 compared to the reported $1.29 of the third quarter 2014.
Overall, the railroad saw a decrease of two percent in carload volumes for the quarter. The third quarter saw a six percent increase in Agriculture & Minerals and a five percent increase in Chemical & Petroleum.
“Kansas City Southern’s third quarter 2015 financial and operational statistics point to meaningful sequential improvement from the second quarter,” CEO David L. Starling said. “While the company’s third quarter revenues increased $46 million over the second quarter, operating expenses grew by only $13 million. This improved financial performance contributed to a record third quarter operating ratio of 65.2 percent.
“There is no question that KCS has been confronted with some challenges in 2015. The resiliency of this company has been demonstrated by its ability to hit these challenges head-on and recover quickly while maintaining strong margins. We look to finish this year with continued strong commercial and operational improvement and ride this positive momentum into 2016.”
Canadian Pacific Railway announced the highest-revenue ever for the third quarter 2015, a 16 percent growth in adjusted earnings per share and the lowest operating ratio for the period in the company’s history.
Revenue saw an increase of two percent to C$1.71 billion, while adjusted operating ratio improved 290 basis points to a record-low of 59.9 percent. Adjusted operating income also saw increases to C$685 million, a 10 percent increase. Adjusted earnings per share advanced 16 percent to C$2.69.
“I am proud of the CP team’s execution this quarter amid stubborn economic softness and the lowest commodity prices in more than a decade,” CEO E. Hunter Harrison said. “It’s clear that despite the ongoing tough economic environment, our continued focus on service, cost control and incremental investment in the franchise will serve customers and shareholders well in the long run.”
Union Pacific Railroad reported declines in revenue for the third quarter 2015. The railroad reported net income decreased to $1.3 billion or $1.50 per diluted share down two percent as compared to last year’s $1.4 billion or $1.53 per diluted share in the third quarter 2014.
Operating revenue decreased 10 percent to $5.6 billion. UP did set a quarterly record in operating ratio, which came in at 60.3 percent, two points better than the third quarter 2014 and 1.1 points better than the previous record set in the fourth quarter 2014. The railroad reported that operating income was down five percent to $2.2 billion.
“Total volumes decreased about six percent in the quarter, more than offsetting another quarter of solid core pricing gains,” CEO Lance Fritz said. “On the cost side, we’ve made significant progress aligning our resources to current demand, and I am pleased to report a quarterly record operating ratio of 60.3 percent.
“We’ve made great progress in meeting this year’s challenges. As we finish 2015 and head toward next year, we continue to face many uncertainties. Energy prices, the consumer economy, grain markets and the strength of the U.S. dollar will all be key to future demand. Over the long term, we are well positioned to safely provide our customers with excellent service, while delivering strong value to our shareholders.”
Canadian National Railway reported its financial and operating results for the third quarter. The railroad saw increases in net income, operating income, revenues and an improvement in operating ratio. The railway saw declines in carloadings and revenue ton-miles for the third quarter 2015.
CN saw an 18 percent increase in net income to C$1,007 million, while diluted earnings per share also increased 21 percent to C$1.26. Operating income increased 16 percent to C$3,222 million, while carloadings and revenue ton-miles each declined by six percent. CN set an operating ratio record of 53.8 percent, a five-percentage point improvement.
CFO Luc Jobin said, “CN delivered record third-quarter results thanks to strong team execution in safely and efficiently meeting our customers’ needs while recalibrating resources to the weaker volume environment. We remain committed to our long-term agenda of operational and service excellence, investing in the safety and integrity of our network, and fulfilling our role as a true backbone of the economy. With CN’s continued strong performance this year, we are pleased to reaffirm our outlook for double-digit adjusted earnings per share growth in 2015 versus last year’s adjusted diluted earnings per share of C$3.76.”
Norfolk Southern Corporation reported declines for the third quarter 2015. Net income declined to $452 million or $1.49 per diluted share, compared to last year’s reported $559 million or $1.79 per diluted share.
The railroad reported operating revenues saw a 10 percent decline to $2.7 billion due to reductions in fuel surcharge revenues and continued reductions in coal shipments. Overall, volume declined three percent to 1.9 million units for the quarter. Income from railway operations decreased by 18 percent to $822 million as compared to last year’s reported third quarter. Railway operating ratio came in at 69.7 percent. NS did see a decline in operating expenses by seven percent to $1.9 billion due to lower fuel costs.
“Norfolk Southern’s third-quarter results reflect commodities markets that continue to soften, as well as cost associated with restructuring initiatives to strengthen our company going forward. These pressures will linger in the fourth quarter, while traffic volume to date continues to lag behind last year. However, looking ahead to 2016, we are confident that with a reasonably stable economy and our own intense focus on service, returns and growth, we are poised for better results,” CEO James A. Squires said.
It has recently been announced that an attempt may be made to attach language from H.R. 1763, the Safe Freight Act, which is the federal two-person crew bill onto H.R. 3763.
H.R. 3763 is the Surface Transportation Reauthorization and Reform Act of 2015, which was passed by the House Committee on Transportation and Infrastructure Thursday, Oct. 22. This bill contains language extending the PTC implementation deadline to 2018 with an additional two-year extension beyond that date.
Members, friends and family are urged to contact their House Representatives immediately to ask them to co-sponsor and support H.R. 1763, as well as its inclusion to H.R. 3763.
“Now is the time to take action and contact your congressional representatives about co-sponsoring H.R. 1763,” said Alternate National Legislative Director Greg Hynes. “It’s in the best interest of public safety and the safety of our members.”
Click here to search for your House Representatives by state.
Click here to send an email to your representatives, asking for their support of H.R. 1763 for railroaders.
Click here to send an email to your representatives, asking for their support of H.R. 1763 for family members and friends.
TAMPA, Fla. — Is the solution to the Tampa Bay area’s mass transit woes already crisscrossing Hillsborough, Pasco and Pinellas counties?
That’s a question local planners will begin considering in the weeks and likely years to come as Jacksonville-based CSX Corp. considers selling off two rail lines that could conceivably be operated as commuter routes.
CSX floated the sale of 96 miles of track at a recent meeting of the Tampa Bay Transportation Management Area Leadership Group, which includes three elected officials each from the three counties’ Metropolitan Planning Organizations and sets regional transportation priorities.
SMART TD Ohio State Legislative Director Stu Gardner is calling members to action in response to the introduction of Senate Bill 229 (SB 229), the two-person crew bill introduced in the Ohio senate Oct. 14. The bill has been referred by the senate to the Public Utilities Committee.
“The call to action is this: I am requesting that every member in Ohio contact the Senators of the Public Utilities Committee and urge them to support SB 229,” Gardner said. “Email and call your state senator and tell them you want them to support SB 229 for the safety of our members and the general public that reside near the railroad tracks.
“Your message should be short and concise and to the point. We want them to understand that this is an important safety issue to you, your family and the public.
“I want you to understand that this is the first step. We want SB 229 to pass through this committee with a majority of votes. If SB 229 doesn’t get the majority of the votes in committee, it will die then and there.”
Dollar value of goods moved on the transportation network greater than ever before
WASHINGTON – U.S. Department of Transportation’s Federal Highway Administration (FHWA) and Bureau of Transportation Statistics (BTS) released the first product from the newest version of the “Freight Analysis Framework,” the most comprehensive publicly available data set of freight movement. The new data show an increase in the dollar value of goods moved on the transportation network. Earlier this week the Department released the draft National Freight Strategic Plan, which offers specific policy proposals and solutions to address the growing challenges of moving freight in this country and this data underscores the need for a plan like this.
“A transportation network that can support the freight needs of this country is essential to a healthy economy,” U.S. Transportation Secretary Anthony Foxx said. “The need for infrastructure investment is growing more urgent every day.”
Secretary Foxx emphasized the importance of freight to the economy in the Department’s study of transportation trends, “Beyond Traffic”, conducted earlier this year. The study pointed to a 45 percent growth in freight in the United States by 2040.
The newly baselined Freight Analysis Framework estimates show that in 2012, nearly 17.0 billion tons of goods worth about $17.9 trillion were moved on the transportation network, which equates to 47 million tons of goods valued at more than $49 billion a day moved throughout the country on all transportation modes – compared to $45 billion per day in 2007. Trucks remain the most commonly used mode to move freight, transporting 64 percent of the weight and 71 percent of the value in 2012 – compared to 65 percent of the value in 2007.
“Once again the importance of highways to the economy is underscored even as the passage of a long-term reauthorization bill continues to be uncertain,” Federal Highway Administrator Gregory Nadeau said. “Efficient freight movement will be at the core of business success for decades to come.”
“BTS’ Transportation Services Index issued last week shows that freight on the nation’s transportation system has grown by almost a third since the low point during the recession in April 2009,” Bureau of Transportation Statistics Director Patricia Hu said. “Today’s release of the new Freight Analysis Framework, built on BTS’ Commodity Flow Survey, is the first in a series of tools that will help officials at all levels of government plan for continued freight growth.”
The “Freight Analysis Framework” includes data on the amount and types of goods that move by land, sea and air between large metropolitan areas, states and regions. It is designed to provide information on national level freight flows across the nation’s transportation network. This information helps the public and private sectors at all levels better understand freight movement; transportation planners use it to target resources to improve operations or increase capacity. Today’s product focuses on the origin and destination component of FAF. Additional elements are planned for future release.
More detail on the “Freight Analysis Framework” is available here.
The Department also continues to welcome feedback and comment on the draft National Freight Strategic Plan. Click here to submit your thoughts and to learn more about the draft plan.
SMART Transportation Division Director of Organizing Rich Ross reports that non-operating employees of Central Maine & Quebec Railway (CMQ) located in Hermon, Maine, have voted in overwhelming favor of representation by the SMART Transportation Division.
WASHINGTON — Transportation labor leaders — gathered today at the fall Executive Committee meeting of the Transportation Trades Department, AFL-CIO (TTD) — met with key members of Congress to seek solutions to a woefully underfunded transportation system and to boost job creation in what remains a slow recovery that TTD’s leader said is “leaving too many working people behind.”
In a letter to state directors, National Legislative Director John Risch and Alternate National Legislative Director Greg Hynes report the following:
In a press release Oct. 14, 2015, CSX announced record financial results for the third quarter of 2015.
Overall, Kansas City Southern (KCS) reported decreases in earnings for the third quarter 2015. However, the railroad did experience a record-setting operating ratio of 65.2 percent for the quarter, a 0.9-point improvement.
Canadian Pacific Railway announced the highest-revenue ever for the third quarter 2015, a 16 percent growth in adjusted earnings per share and the lowest operating ratio for the period in the company’s history.
Union Pacific Railroad reported declines in revenue for the third quarter 2015. The railroad reported net income decreased to $1.3 billion or $1.50 per diluted share down two percent as compared to last year’s $1.4 billion or $1.53 per diluted share in the third quarter 2014.
Canadian National Railway reported its financial and operating results for the third quarter. The railroad saw increases in net income, operating income, revenues and an improvement in operating ratio. The railway saw declines in carloadings and revenue ton-miles for the third quarter 2015.
Norfolk Southern Corporation reported declines for the third quarter 2015. Net income declined to $452 million or $1.49 per diluted share, compared to last year’s reported $559 million or $1.79 per diluted share.
TAMPA, Fla. — Is the solution to the Tampa Bay area’s mass transit woes already crisscrossing Hillsborough, Pasco and Pinellas counties?
WASHINGTON – U.S. Department of Transportation’s Federal Highway Administration (FHWA) and Bureau of Transportation Statistics (BTS) released the first product from the newest version of the “Freight Analysis Framework,” the most comprehensive publicly available data set of freight movement. The new data show an increase in the dollar value of goods moved on the transportation network. Earlier this week the Department released the draft National Freight Strategic Plan, which offers specific policy proposals and solutions to address the growing challenges of moving freight in this country and this data underscores the need for a plan like this.