BNSF Railway Co. said Thursday it is cutting back hiring and instituting furloughs because of declining freight demand.
“Our workforce needs are driven by our customers’ freight transportation needs. Customers’ volumes in the near term have come down somewhat from their prior estimates; as a result, we are having to adjust our workforce demand numbers down to match volume and the work required to move that volume,” the company said in an emailed statement.
BNSF Railway spokeswoman Roxanne Butler said the company would be reducing its hiring plans for the next several months and temporarily furloughing a number of employees.
A freight train struck another train head-on early Tuesday in southeastern New Mexico, killing one crew member on the moving train and injuring a second, a railroad official said. The accident occurred about 6:20 a.m. on a siding — a short section of tracks alongside the main tracks — about 10 miles southeast of Roswell. Read the complete story at ABC News.
CSX Corporation announced increases in its first quarter earnings April 14. Net earnings for the first quarter of 2015 came in at $442 million, an 11 percent increase over the $398 million reported for the same quarter of 2014.
The company announced a 13 percent increase of earnings per share to $0.45 over last year’s reported $0.40 per share for the same quarter. Operating income also saw an increase of 14 percent to $843 million and operating ratio improved 330 basis points to 72.2 percent. Revenue for the quarter came in at $3.0 billion.
The CSX board of directors has approved an increase in the quarterly dividend and a new share repurchase program. The quarterly dividend has increased 13 percent to $0.18 per share. The new $2 billion share repurchase program is expected to be implemented over the next 24 months.
“In this dynamic economic and business environment, CSX’s core earnings remain strong and we are continuing our drive to provide excellent service for our customers and value for our shareholders,” Chairman and CEO Michael J. Ward said. “Our commitment and confidence in CSX’s future is underscored by the positive shareholder actions we’re taking today.”
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.
Canadian National Railway reported its financial and operating results for the first quarter ended Mar. 31. The railway saw increases across the board in its earnings.
CN announced net income for the quarter at C$704 million or C$0.86 per diluted share, up from 2014’s first quarter reported net income of C$623 million or C$0.75 per diluted share.
Diluted earnings per share saw a 30 percent increase to C$0.86 from the reported C$0.66 from the first quarter last year. Net income also saw a 28 percent increase to C$704 million over last year’s reported C$551 million. Operating income saw a 30 percent increase to C$1,063 million. Revenues for the first quarter increased 15 percent to C$3,098 million; revenue ton-mile increased by seven percent and carloadings increased nine percent. CN’s operating ratio improved by 3.9 points to 65.7 percent over last years 69.6 percent.
“CN turned in a solid first-quarter performance thanks to strong freight demand and continued productivity improvements, helped in part by easier winter conditions compared with last year’s polar vortex,” President and CEO Claude Mongeau said. “CN is pleased to affirm its outlook for double-digit EPS growth in 2015 versus last year’s adjusted diluted EPS of C$3.76, despite weaker than expected energy markets and a mixed economy.
“As always we remain committed to growing our business faster than the overall economy and doing so at low incremental cost. We are equally committed to running a safe railway and are increasing our 2015 capital envelope by C$100 million to C$2.7 billion to sustain additional rail infrastructure safety investments.”
Canadian Pacific Railway announced the lowest first quarter operating ratio in the company’s history and the highest-ever net income for the period. Operating ratio came in at a record 63.2 percent for the first quarter 2015, an 880 basis point improvement over the first quarter of 2014. Net income came in at an all-time quarterly high of C$320 million or C$1.92 per diluted share, an improvement of 33 percent.
CP’s revenues climbed 10 percent to a first quarter record of C$1.67 billion and adjusted earnings per share saw an improvement of 59 percent to C$2.26.
“CP’s success in the first quarter of the year is a result of hard work by its people and a business model that responds nimbly to any shift in economic conditions,” CEO E. Hunter Harrison said. “CP’s relentless focus on rail safety and cost control has created a solid foundation for growth, innovation and creative collaboration with customers.
“The diversity of the business and efficiency of CP’s network and team has the company well positioned for the rest of the year. We are confident in our plan and our people, and are committed to achieving our goals for 2015.”
Kansas City Southern reported decreases in earnings for the first quarter of 2015 as compared to the first quarter earnings of 2014.
Revenue decreased one percent to $603 million. KCS’ operating income also saw a one percent decrease to $178 million. Operating ratio saw a 0.2 point increase to 70.5 percent or an adjusted operating ratio of 68.9 percent. The first quarter of 2014 saw an operating ratio of 73.7 percent. Diluted earnings per share also saw a two percent decrease to $0.91 and adjusted diluted earnings per share came in at $1.03.
Overall, the railroad reports that carload volumes were one percent higher than in the first quarter of 2014. KCS also saw a one percent decrease in operating expenses of $415 million for the quarter. Reported net income totaled $101 million for the first quarter of 2015.
“Lower than expected carloadings in a few commodity groups, particularly utility coal, coupled with a weak peso and the impact of low U.S. fuel prices on fuel surcharge revenues, combined to exert pressure on first quarter consolidated revenues,” CEO David L. Starling said. “We believe our ability to scale operating expenses and capital where necessary, provide KCS with the opportunity to improve earnings as 2015 progresses. In addition, we remain fully committed to managing our railroad in a manner designed to allow our company and its stockholders to benefit from the abundant growth opportunities that should emerge in the years ahead.”
Union Pacific Corporation reported mostly increases in earnings for the first quarter of 2015.
The railroad reported a first quarter net income of $1.2 billion or $1.30 per diluted share, a nine percent increase over last year’s first quarter of $1.1 billion or $1.19 per diluted share. Operating income increased seven percent to $2 billion and operating ratio improved 2.3 points to 64.8 percent.
Operating revenue stayed at $5.6 billion while total revenue carloads declined two percent compared to the first quarter of 2014.
“While we took actions during the quarter to adjust for volume decline, we did not run an efficient operation,” President and CEO Lance Fritz said. “We’ve had some challenges to start off the year, but we’re taking the steps needed to work through those challenges and realize the opportunities we see ahead. We expect to see solid improvement in network performance and cost efficiency over the coming months. As we leverage the strengths of our diverse franchise, we continue to be intently focused on safety, service and shareholder returns.”
Norfolk Southern Corporation reported a decrease in earnings for the first quarter 2015. Net income for the railroad saw a 16 percent decrease to $310 million compared to the $368 million that was reported for the first quarter of 2014. Income from railway operations came in at $606 million, a nine percent decrease compared to last year’s first quarter. Diluted earnings per share for the first quarter came in at $1.00 compared to last year’s $1.17.
NS reported a five percent decrease to operating revenues to $2.6 billion due to a lower fuel surcharge, lower coal volumes and lower average revenue per unit. Total volume saw a two percent increase, reflecting gains in intermodal and merchandise traffic. Railway operating expenses declined three percent to $2.0 billion, also due to lower fuel costs. NS reported an operating ratio of 76.4 percent compared to last year’s operating ratio of 75.2 percent for the same quarter.
“Our first quarter results reflected continued weakness in our coal markets along with a slowdown in network velocity in part caused by severe winter weather which impacted both our expenses and our volumes,” CEO Wick Moorman said. “Looking ahead, while the market uncertainties remain, the resources that we are deploying are driving improved network performance, and we expect our service levels will be significantly higher in the second half.”
The campus shuttle operators for the University of Tennessee’s transportation service unanimously ratified their first agreement with their employer after choosing SMART representation last year, Alternate Vice President – Bus Alvy Hughes reports. The members of newly formed Local 1703 at Knoxville, Tenn., are employed by First Transit, Inc., based in Cincinnati, Ohio. The three-year agreement is retroactive to June 1, 2014. It consists of improved work rules, a 401k retirement savings plan, additional vacation allowances based on seniority, increase company contributions to the employees’ comprehensive group health insurance coverage, a personal day, sick time off, and an increasing scale of wages through the term of agreement, Hughes said. It also establishes a labor-management committee providing a forum for discussion on work-related issues that may arise. “I thank General Chairperson Heath Harper and Vice General Chairperson Dallas Jones for their hard work, leadership and their commitment to the bargaining process to get this agreement accomplished,” Hughes said. 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.
Continuing a cooperative effort to promote safety in the railroad industry, the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers International Association (SMART) have jointly announced that legislation requiring at least two crew members on all freight trains in the U.S. has been introduced in the 114th Congress. The Safe Freight Act (H.R. 1763), introduced by U.S. Rep. Don Young (R-Alaska) April 13, would require two crew members — one certified locomotive engineer and one certified conductor — on all freight trains. The newly-introduced legislation mirrors H.R. 3040, which had more than 80 co-sponsors last year prior to conclusion of the 113th Congress. H.R. 1763 has been referred to the House Committee on Transportation and Infrastructure. H.R. 1763 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 joint effort reflects heightened concerns over crew size arising from the July 6, 2013, derailment of a Montreal, Maine & Atlantic (MM&A) oil train in Lac-Megantic, Quebec, which killed 47 people and destroyed the center of the town. The MM&A train was crewed by a single person. Since that time, there has also been movement by major freight railroads to seek collective bargaining agreements to allow for widespread use of one-person train operations. “The BLET continues to oppose and condemn single-person freight operations as adverse to worker and public safety,” BLET National President Dennis R. Pierce said. “All parties involved must understand that as things stand today, there are only two ways to end one-person train operations: federal laws or regulations that outlaw this dangerous practice, or collectively bargained contract language that requires two crew members on every train. We will continue to work to protect contractual language to defend two-person crews, and it also is our goal to protect the safety of railroad workers and the general public by advocating for passage of H.R. 1763.” SMART Transportation Division President John Previsich said, “The SMART Transportation Division has always espoused that the safest rail operation is a two-person crew operation. With several major train derailments having occurred in the last few months, most notably the oil train derailment and explosion near Charleston, W. Va., in February, our lawmakers and the general public must understand that multi-person crews are essential to ensuring the safest rail operations possible in their communities. I would like to thank Cong. Don Young (R-Alaska) for his leadership on this critical rail safety issue. No one would permit an airliner to fly with just one pilot, even though it can fly itself. Trains, which cannot operate themselves, should be no different.” Young is serving his 22nd term as Alaska’s only representative in the House and is a former Chairman of both the House Transportation and Infrastructure Committee (2001-2007) and the House Natural Resources Committee (1995-2001).
WASHINGTON — The U.S. Department of Transportation (DOT) today announced with its agencies, the Federal Railroad Administration (FRA) and Pipeline and Hazardous Materials Safety Administration (PHMSA), a package of targeted actions that will address some of the issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The volume of crude oil being shipped by rail has increased exponentially in recent years, and the number of significant accidents involving trains carrying ethanol or crude oil is unprecedented. “The boom in crude oil production, and transportation of that crude, poses a serious threat to public safety,” stated U.S. Transportation Secretary Anthony Foxx. “The measures we are announcing today are a result of lessons learned from recent accidents and are steps we are able to take today to improve safety. Our efforts in partnership with agencies throughout this Administration show that this is more than a transportation issue, and we are not done yet.” These actions represent the latest in a series of more than two dozen that DOT has initiated over the last nineteen months to address the significant threat to public safety that accidents involving trains carrying highly flammable liquids can represent. Today’s announcement includes one Emergency Order, two Safety Advisories, and notices to industry intended to further enhance the safe shipment of Class 3 flammable liquids. Actions
Preliminary investigation of one recent derailment indicates that a mechanical defect involving a broken tank car wheel may have caused or contributed to the incident. The Federal Railroad Administration is therefore recommending that only the highest skilled inspectors conduct brake and mechanical inspections of trains transporting large quantities of flammable liquids, and that industry decrease the threshold for wayside detectors that measure wheel impacts, to ensure the wheel integrity of tank cars in those trains.
Recent accidents revealed that certain critical information about the train and its cargo needs to be immediately available for use by emergency responders or federal investigators who arrive on scene shortly after an incident. To address the information gap, DOT is taking several actions to remind both the oil industry and the rail industry of their obligation to provide these critical details
PHMSA is issuing a safety advisory reminding carriers and shippers of the specific types of information (*listed below) that they must make immediately available to emergency responders;
FRA and PHMSA are issuing a joint safety advisory requesting that specific information (*listed below) also be made readily available to investigators;
FRA is sending a request to the Association of American Railroads asking the industry to develop a formal process by which this specific information (*listed below) becomes available to both emergency responders and investigators within 90 minutes of initial contact with an investigator, and;
FRA submitted to the Federal Register a notice proposing to expand the information collected on certain required accident reports, so that information specific to accidents involving trains transporting crude oil is reported.
DOT has determined that public safety compels issuance of an Emergency Order to require that trains transporting large amounts of Class 3 flammable liquid through certain highly populated areas adhere to a maximum authorized operating speed limit of 40 miles per hour in High Threat Urban Areas. Under the EO, an affected train is one that contains: 1) 20 or more loaded tank cars in a continuous block, or 35 or more loaded tank cars, of Class 3 flammable liquid; and, 2) at least one DOT Specification 111 (DOT-111) tank car (including those built in accordance with Association of American Railroads (AAR) Casualty Prevention Circular 1232 (CPC-1232)) loaded with a Class 3 flammable liquid.
“These are important, common-sense steps that will protect railroad employees and residents of communities along rail lines. Taking the opportunity to review safety steps and to refresh information before moving forward is a standard safety practice in many industries and we expect the shipping and carrier industries to do the same,” said Acting FRA Administrator Sarah Feinberg. “Our first priority is to prevent these accidents from ever happening,” stated Acting PHMSA Administrator Tim Butters. “But when accidents do occur, first responders need to have the right information quickly, so we are reminding carriers and shippers of their responsibility to have the required information readily available and up to date.” The actions taken today coincide with actions being taken by other government agencies including the Department of Homeland Security (DHS), the Federal Emergency Management Agency (FEMA), the Environmental Protection Agency (EPA), and the Department of Energy (DOE). *Information required by PHMSA Safety Advisory:
Basic description and technical name of the hazardous material the immediate hazard to health;
Risks of fire or explosion;
Immediate precautions to be taken in the event of an accident;
Immediate methods for handling fires;
Initial methods for handling spills or leaks in the absence of fire;
Preliminary first aid measures; and
24-hour telephone number for immediate access to product information.
*Information sought by U.S. DOT in the event of a crude-by-rail accident:
Information on the train consist, including the train number, locomotive(s), locomotives as distributed power, end-of-train device information, number and position of tank cars in the train, tank car reporting marks, and the tank car specifications and relevant attributes of the tank cars in the train.
Waybill (origin and destination) information
The Safety Data Sheet(s) or any other documents used to provide comprehensive emergency response and incident mitigation information for Class 3 flammable liquids
Results of any product testing undertaken prior to transportation that was used to properly characterize the Class 3 flammable liquids for transportation (initial testing)
Results from any analysis of product sample(s) (taken prior to being offered into transportation) from tank car(s) involved in the derailment
Date of acceptance as required to be noted on shipping papers under 49 CFR § 174.24.
If a refined flammable liquid is involved, the type of liquid and the name and location of the company extracting the material
The identification of the company having initial testing performed (sampling and analysis of material) and information on the lab (if external) conducting the analysis.
Name and location of the company transporting the material from well head to loading facility or terminal.
Name and location of the company that owns and that operates the terminal or loading facility that loaded the product for rail transportation.
Name of the Railroad(s) handling the tank car(s) at any time from point of origin to destination and a timeline of handling changes between railroads.
Since 2013 there have been 23 crude-related train accidents in the United States with the majority of incidents occurring without the release of any crude oil product.
Acting Federal Transit Administrator Therese McMillan has determined that the random drug-testing rate will remain at 25 percent for 2015 and the random alcohol-testing rate for 2015 will remain at 10 percent for transit employees performing safety-sensitive functions, according to the Federal Register. The determination was made due to a “positive rate” lower than one percent for random drug test data for the past two years. The random alcohol violation rate was lower than 0.5 percent for the last two years. The random drug rates for the two preceding years are 0.74 percent for 2013 and 0.87 percent for 2014. The random alcohol rates for the two preceding years are 0.12 percent for 2013 and 0.14 percent for 2014. On Jan. 1, 1995, FTA required large transit employers to begin drug and alcohol testing employees performing safety-sensitive functions and submit annual reports by March 15 of each year beginning in 1996. The annual report includes the number of employees who had a verified positive for the use of prohibited drugs, and the number of employees who tested positive for the misuse of alcohol during the reported year. The original rules required employers to conduct random drug tests at a rate equivalent to at least 50 percent of their total number of safety-sensitive employees for prohibited drug use and at least 25 percent for the misuse of alcohol. However, the rules provided the drug random testing rate may be lowered to 25 percent if the ‘‘positive rate’’ for the entire transit industry is less than one percent for two preceding consecutive years. The alcohol provisions provided the random rate may be lowered to 10 percent if the ‘‘violation rate’’ for the entire transit industry was less than 0.5 percent for two consecutive years. Click here to review the Federal Register notice. The U.S. Department of Transportation provides answers to employees’ Frequently Asked Questions at http://www.dot.gov/odapc/employee.
Latest safety statistics released by the Federal Railroad Administration (FRA) in April confirmed 2014 was the safest year on record for freight train operations in the United States, according to the Association of American Railroads. Highlights of FRA freight rail safety data (per million train miles):
Since 2000, the train accident rate is down 45 percent, a new low, and the 2014 train accident rate was down 7 percent compared with 2013.
The track-caused accident rate has dropped 54 percent since 2000 and 12 percent from 2013.
The equipment-caused accident rate has dropped 44 percent since 2000 and 6 percent from 2013.
The rate for human factor-caused accidents has declined 44 percent since 2000 and 4 percent from 2013.
“The freight rail industry is working all out to prevent any train incident, large or small. It is an ongoing 24/7 commitment and our goal remains zero accidents,” said Edward R. Hamberger, president and CEO of the AAR. “Freight railroads are always looking to further advance safety and will continue to move forward with safety-focused initiatives and cutting-edge research and development.” “The FRA statistics show that while freight railroads moved more products in 2014 than any time since 2007, the focus on safe train operations remained front and center through technological improvements, company-wide safety programs and ongoing record spending back into rail operations,” said Hamberger, who noted that since 1980, $575 billion has been spent on maintaining and modernizing the 140,000-mile rail system with $29 billion planned to be injected into rail infrastructure and equipment in 2015.
WASHINGTON – Amtrak is partnering with NOOK by Barnes & Noble, Chuggington and others at select Amtrak Train Days (ATD) events taking place across the country this spring, summer and fall. These celebrations are occurring in more than 20 locations with the official kick-off event at Chicago Union Station on May 9, 2015. ATD events will feature various components of the Amtrak experience at each location (a dedicated tour of the Amtrak Exhibit Train in select markets, interactive displays, excursion trains and tours). ATD tour and Amtrak Exhibit Train stops through June include:
The Amtrak and NOOK by Barnes & Noble partnership will create an enhanced travel experience by leveraging expert booksellers to curate a collection of free eBooks and e- magazines for Amtrak passengers – perfect for enjoying a comfortable train ride. Passengers will be thrilled to access bestselling titles from top publishers that have been customized to appeal to every reading preference, including classics, romances, mysteries, thrillers, children’s and business titles. To get ready for the Amtrak and NOOK promotion, you can install the free NOOK reading app today on your Android or iOS device by visiting www.NOOKapp.com. Chuggington, the sponsor of The Chuggington Kids Depot and Chuggington Live (at our Chicago kick-off event) joins Amtrak with train-themed kids’ activities based on the popular ATK-15-021 children’s animated television series, Chuggington, on Disney Junior. Other partners include Operation Lifesaver, Amtrak Vacations and local and state partner affiliates. This year, Amtrak is expanding its community program from multiple events on a single day to individual events over the course of the spring, summer and fall. Amtrak Train Days will focus on reaching current and new audiences across America to reinforce the importance, benefits and value of passenger train travel. Communities from across the nation are invited to join in the celebration of passenger train travel by hosting their own ATD events during 2015. To register an event, find additional tour stops or for more information about ATD, visit AmtrakTrainDays.com. Amtrak Train Days 2015 Sweepstakes is running from May 9 – Nov. 30. One Grand Prize winner will win a trip for four people courtesy of Amtrak Vacations, one Chuggington Prize Pack and a Walthers Model Train Set. Winners will be chosen on Dec. 1, 2015.
The National Transportation Safety Board April 6 issued four urgent recommendations calling for more robust and fire-resistant rail cars to be produced to safely carry flammable liquids such as crude oil and ethanol. In its recommendations, the Board calls for an aggressive schedule of replacing or retrofitting the current rail car fleet with better thermal protection against heat from fires, such as through a ceramic thermal blanket, and increasing the capacity of pressure relief devices. “We can’t wait a decade for safer rail cars,” said NTSB Chairman Christopher A. Hart. “Crude oil rail traffic is increasing exponentially. That is why this issue is on our Most Wanted List of Safety Improvements. The industry needs to make this issue a priority and expedite the safety enhancements, otherwise, we continue to put our communities at risk.” The Board said the current fleet of DOT-111 tank cars rupture too quickly when exposed to a pool fire caused by a derailment or other accident with resulting spillage and ignition. And based on a series of accidents the Board has investigated in recent months, performance of the industry’s enhanced rail car, the CPC-1232, is not satisfactory under these conditions. “The NTSB concludes that the thermal performance and pressure relief capacity of bare steel tank cars that conform to current federal and industry requirements is insufficient to prevent tank failures from pool fire thermal exposure and the resulting overpressurization,” said the letter that included the recommendations from the Board to Acting Administrator Timothy P. Butters of the Pipeline and Hazardous Materials Safety Administration. The Board also called for swiftness in changing the fleet and called for intermediate deadlines and transparent reporting to ensure the tank car fleet is being upgraded as quickly as possible. To view the recommendation, click on the following link: http://www.ntsb.gov/safety/safety-recs/recletters/R-15-014-017.pdf.
BNSF Railway Co. said Thursday it is cutting back hiring and instituting furloughs because of declining freight demand.
CSX Corporation announced increases in its first quarter earnings April 14. Net earnings for the first quarter of 2015 came in at $442 million, an 11 percent increase over the $398 million reported for the same quarter of 2014.
Canadian National Railway reported its financial and operating results for the first quarter ended Mar. 31. The railway saw increases across the board in its earnings.
Canadian Pacific Railway announced the lowest first quarter operating ratio in the company’s history and the highest-ever net income for the period. Operating ratio came in at a record 63.2 percent for the first quarter 2015, an 880 basis point improvement over the first quarter of 2014. Net income came in at an all-time quarterly high of C$320 million or C$1.92 per diluted share, an improvement of 33 percent.
Kansas City Southern reported decreases in earnings for the first quarter of 2015 as compared to the first quarter earnings of 2014.
Union Pacific Corporation reported mostly increases in earnings for the first quarter of 2015.
Norfolk Southern Corporation reported a decrease in earnings for the first quarter 2015. Net income for the railroad saw a 16 percent decrease to $310 million compared to the $368 million that was reported for the first quarter of 2014. Income from railway operations came in at $606 million, a nine percent decrease compared to last year’s first quarter. Diluted earnings per share for the first quarter came in at $1.00 compared to last year’s $1.17.