Rail

Friday, February 17, 2012

     The U.S. Surface Transportation Board said Thursday it will hold a March 22 public hearing to explore the impact of Berkshire Hathaway's acquisition of the BNSF Railway in 2010 on certain costing determinations.    Berkshire, headed by the billionaire investor Warren Buffett, paid $43 billion to acquire BNSF.    STB said the Western Coal Traffic League (WCTL) and other parties argue that BNSF's acquisition price produced an $8.1 billion write-up in the r...

Wednesday, February 15, 2012

     Union Pacific plans to invest $200 million in South Louisiana to meet current and expected shipper demand from the petrochemical plants along the Mississippi River.    Louisiana Gov. Bobby Jindal and UP Chairman James R. Young announced the investment Tuesday.    Jindal said "rail lines are the backbone of the chemical and manufacturing industries in Louisiana, and Union Pacific's expansion will allow the railroad to better serve key plants along the Mississi...

Tuesday, February 14, 2012

     President Obama is proposing a fiscal year 2013 budget for the Department of Transportation of $74 billion, 2 percent, or $1.4 billion, above the 2012 enacted amount.    It's one piece of a $3.8 trillion plan that raises spending to support the middle class through incentives for domestic manufacturing, lower payroll taxes, infrastructure investment and other steps while raising revenue through taxes on the wealthiest Americans and reductions in subsidies for the ...

Friday, February 10, 2012

     North Carolina’s Railinc Corp., which provides data services to the rail industry, has finished its first round of tests and implementations for its comprehensive equipment performance monitoring (CEPM) program and CEPM-Wheelsets.    The CEPM-Wheelsets lets rail carriers, equipment owners, wheel shops and repair shops have a clear look at the health and history of wheelsets through the CEPM’s tracking options to help plan repairs and manage both the wheels and rel...

Thursday, February 09, 2012

     Owens Corning has an active policy to transport as much of its building materials and supplies as possible on trucks powered by liquefied natural gas engines to save fuel costs, Wayne Johnson, the company's manager of global carrier relations, said Jan. 24 at the Transportation Research Board's annual meeting in Washington.    The Toledo, Ohio-based manufacturer has a contract with Dillon Transport for 25 dedicated LNG tank trucks to haul sand and asphalt to plants in ...

Thursday, February 09, 2012

     The U.S. Army Corps of Engineers released work plans for its civil works program through the end of the current fiscal year 2012 and increased the amount it will spend on harbor deepening projects.    Projects underway or planned to deepen harbors in Jacksonville, Fla.; Savannah, Ga.; Charleston, S.C.; Wilmington, N.C., and the Delaware River all received multimillion increases in funding.    The South Carolina Ports Authority said the plan included $2.5...

Wednesday, February 08, 2012

     Canadian National Railway has opened a new intermodal terminal at Chippewa Falls, Wis.    Located 100 miles east of Minneapolis/St. Paul, CN said it offers Wisconsin and Minnesota customers new options to ship and receive goods in containers.    "This terminal gives companies in the Upper Midwest direct and efficient single-rail-line access to new North American and global markets via our continental network as well as the ports we serve on the Pacific, ...

Thursday, February 02, 2012

     The U.S. Department of Transportation on Tuesday said it will make $500 million available this year in the fourth round of TIGER funding for surface transportation investment.     Infrastructure projects will be evaluated on how they advance the Obama administration's goals of safety, improving the nation's economic competitiveness, livable communities, environmental sustainability, keeping assets in a state of good repair and short-term job creation.    The ...

Thursday, February 02, 2012

   RMI, a GE Transportation company and provider of transport management software, has released a new information technology application aimed at helping railroads better analyze revenue management, improve rating accuracy and automation, and decrease rating cycle times.    The new service, RMI said, came about because of customer requests for help with revenue management performance. RMI is adding its new offering to its packaged RailConnect Revenue Management System.

Wednesday, February 01, 2012

     A new transportation bill was introduced in the U.S. House by Transportation and Infrastructure Committee Chairman John L. Mica, R-Fla., and other members of his committee on Tuesday.    They said the American Energy & Infrastructure Jobs Act (H.R. 7) would authorize approximately $260 billion over five years to fund federal highway, transit and safety programs, “consistent with current funding levels.”    Mica called it the “largest transportation reform...

Tuesday, January 31, 2012

   The Michigan Department of Transportation has finalized its State Rail Plan to guide development of passenger and freight rail systems during the next 20 years and announced Timothy Hoeffner as director of the newly created Office of Rail.       The plan identifies $7.2 billion in current and future needs and makes recommendations to encourage ongoing rail investments.    State officials would need to come up with another $2.6 billion above current spending...

Tuesday, January 31, 2012

   The Urban Institute has established a multi-dimensional Infrastructure Initiative designed to inform the public and government officials about the important tradeoffs in developing, operating, maintaining and financing the nation's core systems that support society.    The research effort will examine the fiscal, social and environmental costs and benefits of policy choices at all levels of government related to transportation, electrical, water, sewer, wireless and broadband ...

Monday, January 30, 2012

     Savi, a subsidiary of Lockheed Martin, has launched a mobile tracking system that identifies and tracks in real-time the location, movement, and condition of high-value assets.    Savi said its new system is aimed at governments, heavy industry, large organizations, and manufacturers that have complex logistics requirements.    The Savi Mobile Tracking System includes software and hardware designed to monitor a range of cargo, such as ocean containe...

Monday, January 30, 2012

     Cleveland-based ContainerPort Group said this spring it plans to open a “mega” multipurpose terminal at Columbus, Ohio.    The new facility will allow CPG to consolidate its trucking, container yard, maintenance (chassis and containers), and cargo transfer services into a single location. The site will have access to both CSX and Norfolk Southern railroads. CPG said it secured land to expand its existing facility to about 70 acres.    CPG ...

Friday, January 27, 2012

     The Crescent River Port Pilots Association has decided to increase its maximum draft recommendation from 42 feet to 44 feet on the Lower Mississippi River.    Capt. A.J. Gibbs said he made the recommendation Thursday after "reviewing the most current survey in the Pilottown Cubit's Gap area, and due to the successful transit of the two 44 feet test vessels."    Sean M. Duffy Sr., executive director of the Big River Coalition, said the recommend...

Friday, January 27, 2012

     DB Schenker Rail GmbH has appointed Axel Marschall to head of sales in Europe, effective Feb. 1.    He has performed this function on an interim basis since the departure of Karsten Sachsenröder in November. Marschall was previously chief executive officer of DB Schenker Rail Automotive GmbH in 2009.    Marschall joined Deutsche Bahn in 1999 and has held various management positions. In 2005, he was appointed head of strategy in the Transportation and Logistics Di...

Thursday, January 26, 2012

     The two remaining labor unions that tentatively accepted new contracts with the freight railroad industry are expected to ratify those deals within the next week or two, Edward R. Hamberger, president of the Association of American Railroads, said Monday during a presentation at the Transportation Research Board's annual conference in Washington.    Members of the International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers and Helpers; the Inter...

Thursday, January 26, 2012

     Canadian Pacific Railway said it had a profit of 221 million Canadian dollars (U.S. $220.69 million) in the fourth quarter ended Dec. 31, compared to C$186 million in the fourth quarter of 2010.    Revenue in the quarter was C$1.41 billion, compared to C$1.29 billion in the fourth quarter 2010.    For the full year, the company had a profit of C$570 million in 2011, compared to C$651 million in 2010. Revenue in 2011 was C$5.18 billion, compared to C$4.98 billion t...

Thursday, January 26, 2012

     BNSF Railway has released two new online tools to help existing and new customers compare carload shipping options.    The tools, Carload Shipping Advisor and Serving Carrier Reciprocal Switch Inquiry, allow customers to view shipping options and sort them by price, equipment, and route for multiple origins and destinations.    "All of the features in the Carload Shipping Advisor tool are based on direct customer feedback and designed to meet customer needs," said...

Wednesday, January 25, 2012

     Norfolk Southern Corp. said Tuesday it had record fourth-quarter profit of $480 million, 19 percent more than the $402 million earned in the fourth quarter of 2010.     The railroad's operating revenues increased to $2.8 billion, a fourth-quarter record, up 17 percent compared with the same period a year earlier.    The 2011 full-year profit was $1.9 billion, 28 percent higher compared with $1.5 billion for 2010. Operating revenues for the full year 2011...

Wednesday, January 25, 2012

     Kansas City Southern Railways reported profit in the fourth quarter of 2011 of $96 million, 73 percent more than the $56 million during the same period the previous year.    Revenue in the quarter was a record $530 million, 11 percent more than the $479 million recorded in the fourth quarter of 2010. Fourth quarter carloads of 522,000, also a record, increased 7 percent over fourth quarter 2010.    For the year 2011, the company had a profit of $332 million, ...

Wednesday, January 25, 2012

     Canadian National Railway had a profit of $592 million Canadian dollars ($586 million) in the fourth quarter ending Dec. 31, 18 percent more than the fourth-quarter 2010 net income of C$503 million.    Revenue was C$2.38 billion in the quarter, 12 percent more than the C$2.12 billion in the fourth quarter of 2010.    All but one of CN’s commodity groups experienced increased revenues: metals and minerals (+30 percent), intermodal (+16 percent), petroleum and chemi...

Wednesday, January 25, 2012

     A proxy battle for control of Canadian Pacific Railway took a step forward Tuesday as the investment firm Pershing Square Capital Management nominated a slate of five directors to the railroad's board in advance of CP's annual meeting of shareholders on May 17.    The nominees are Pershing Square Chief Executive Officer Bill Ackman, Gary F. Colter, Paul C. Hilal, Rebecca MacDonald and Anthony R. Melman.    Ackman, whose firm owns 14 percent of ...

Tuesday, January 24, 2012

     The ability to move larger ships through the Panama Canal will reduce the cost of all-water service between the Far East and the eastern part of the United States, but speakers at a conference held last week in Tampa, Fla. were divided on how significant theimpact of the canal will be on cargo routing.    "We are not the fat hog waiting to be cut," said Dean Wise, vice president of network strategy for the BNSF Railway. "We are not going to sit back and see t...

Tuesday, January 24, 2012

     CSX Corp. reported a profit of $457 million in the fourth quarter ending Dec. 30, a 6 percent increase over the fourth quarter of 2010.    Revenue for the quarter was $2.95 billion, 5 percent more than in the fourth quarter of the previous year.    For the year, CSX had a profit of $1.8 billion, 17 percent more than in 2010. Revenue in 2011 was $11.7 billion, 10 percent higher than in 2010.    In the fourth quarter, the company s...

Monday, January 23, 2012

     Republican presidential hopeful Newt Gingrich played to the local audience in Thursday’s televised primary debate leading up to the South Carolina primary by talking about infrastructure upgrades at the Port of Charleston as an example of how the government could help create jobs.    Gingrich won on the South Carolina primary on Saturday.    The former speaker of the House said he would push for increased off-shore drilling for natural gas and use the royalties to...

Monday, January 23, 2012

     Union Pacific reported it had a profit of $3.29 billion in 2011, 18 percent more than the $2.78 billion earned in 2010, despite weaker intermodal and agricultural volumes.    Operating revenue for the railroad amounted to $19.6 million in 2011, 15 percent more than the $17 billion recorded in 2010.    Fourth quarter profit for 2011 was $964 million, a 24 percent increase over the same period in 2010, and revenue in the fourth quarter of 2011 was $5.1 billion,...

Monday, January 23, 2012

     Canadian Pacific Railway announced Monday a 10-year agreement to be the principal Canadian railway for potash producer Canpotex.    CP will transport the large majority of potash shipments to Canpotex's main terminal in Vancouver, British Columbia. In conjunction with Union Pacific, CP will transport potash to Portland, Ore.    CP said that to move Canpotex's potash more efficiently and reliably, it had enhanced the infrastructure of its north main line ...

Wednesday, January 18, 2012

Bentley     Helen Delich Bentley, a former Maryland congresswoman and past chairman of the Federal Maritime Commission, has proposed changing the Harbor Maintenance Tax so that it's collected not only on ocean-borne cargo, but on all freight from foreign sources entering the United States.     The tax is not paid by freight entering the United States from Canada or Mexico.    A press release said she made her proposal Tuesday evening in Tacoma, Wash.,&nb...

Monday, January 16, 2012

     The U.S. Commerce Department on Friday reported that U.S. exports of goods and services in November 2011 fell 0.9 percent from the previous month to $177.8 billion.     However, the department noted that November’s exports of consumer goods ($15.7 billion) were the highest on record.    U.S. imports of goods and services increased 1.3 percent to reach $225.6 billion, causing the U.S. trade deficit to increase 10.4 percent to reach $47.8 billion in November. P...

Monday, January 16, 2012

     The National Industrial Transportation League has renewed a call for reforms so that captive rail shippers have better access to competing railroads.    The NIT League filed comments last week with the Surface Transportation Board as part of the agency's review of existing regulations to evaluate their viability and determine whether they are effective in addressing problems faced by railroads and shippers. This effort is part of an overall review being undertaken...

Monday, January 16, 2012

   Canadian National Railway Co. is alleging that private investor William Ackman's plan to have former CN chief executive officer Hunter Harrison run its competitior, Canadian Pacific Railway Ltd., may violate a non-compete agreement that Harrison signed when he left CN.    “As part of his employment contract with CN, Mr. Harrison agreed, upon retirement as president and chief executive officer on Dec. 31, 2009, to be bound by a broad range of confidentiality and multiyear non-c...

Tuesday, January 10, 2012

Ackman    William Ackman, the investor whose company Pershing Square has purchased a 14 percent stake in the Canadian Pacific Railway, said Monday he plans to wage a proxy fight to take control of the railroad and replace its current chief executive officer Fred Green with Hunter Harrison, the former chief executive officer of Canadian National Railway.    Ackman revealed his plans in interviews with several news organizations including Toronto's Globe and Mail , the W...

Tuesday, January 10, 2012

     Southern California's Port of Long Beach will hold a public hearing Wednesday to receive comments on a draft environmental impact report for a proposed grain export facility at its Pier T.    Total Terminals International, the operator of the terminal, has proposed to build a facility that would transfer grain from railcars into ocean shipping containers. The project would allow for the export of 750,000 to 1.5 million tons of grain per year, using existing rail a...

Friday, January 06, 2012

   Illinois-based third-party logistics provider Superior Logistics has opened an airside facility at cargo-dedicated Rickenbacker International Airport in Columbus, Ohio.    Superior is leasing 20,000 square feet of office and warehouse space from the Columbus Regional Airport Authority, which operates Rickenbacker International Airport and develops surrounding property.    The company specializes in import deconsolidation - the process of breaking down bulk internatio...

Friday, January 06, 2012

     Rail equipment maker Greenbrier Cos. said it had a profit of $14.5 million in the first quarter ending Nov. 30, 2011, compared to a loss of $2.3 million in the same period a year earlier.    Revenues for the first quarter of 2012 were $398.2 million, double the $198.9 million realized in the prior year's first quarter.    New railcar deliveries in the first quarter of 2012 were 3,300 units, compared to 1,050 units in the first quarter of 2011.  ...

Friday, January 06, 2012

   Members of the Brotherhood of Locomotive Engineers & Trainmen, the National Conference of Firemen and Oilers, and the International Brotherhood of Electrical Workers have ratified new contracts with the nation's largest freight railroads.    The three unions together represent about 33,170 workers.    Seven rail unions now have ratified contracts and another five unions have reached tentative agreements that are awaiting member ratification.   &nbs...

Wednesday, January 04, 2012

     The leadership of Canadian Pacific and its largest shareholder engaged in some highly public squabbling Tuesday about the future of the company.    In a letter to investor William Ackman, whose investment company owns 14.2 percent of CP's stock, CP chairman John Cleghorn complained about an article in last Friday's Globe and Mail newspaper that said Ackman wants to hire Hunter Harrison, the former CEO of rival Canadian National Railway, to work at CP.    The artic...

Friday, December 30, 2011

   A new terminal that APM Terminals (APMT) is planning to build in Lazaro Cardenas, Mexico will have an initial capacity to handle 1.2 million TEUs per year and be able to process as many as 4.2 million TEUs annually when fully completed.    APMT announced Thursday that it had been awarded a 32-year concession to design, build, and operate a new terminal in the Pacific Coast port at a cost of about $900 million.    Last year the port handled about 796,023 TEUs and through N...

Wednesday, December 28, 2011

     Chicago-based Echo Global Logistics, a transportation management company, has acquired all of the outstanding stock of Trailer Transportation Systems (TTS).    The company will now do business as Echo Global.    TTS is an intermodal marketing company based in Rochester, N.Y., and has been in operation since 1981.    For Echo Global, the main benefit of TTS acquisition is an expansion of its rail capabilities and intermodal operations ...

Tuesday, December 27, 2011

     A U.S. Federal Maritime Commission inquiry into the movement of inland containerized cargo through Canadian and Mexican ports has already sparked numerous comments and last week the agency granted a request from the Shipping Federation of Canada to extend the time for comments from Dec 22 until Jan. 9.    The FMC announced this fall it would look at the increased movement of U.S. cargo through Canadian ports such as Prince Rupert and Mexican ports like L...

Thursday, December 22, 2011

     Test transmissions and processing of electronic sea and rail manifests for the new Automated Commercial Environment are going well, putting U.S. Customs and Border Protection on track to soon transition transportation providers to the new system, the agency announced Friday.    A sea/rail manifest pilot program involving one rail carrier and one ocean began in November. On Monday, OOCL identified itself as the first liner carrier to migrate to the new system. The ...

Wednesday, December 21, 2011

     CSX will commence on-dock rail service at the Port of Virginia's APM Terminal on Jan. 3, the company said Tuesday.    The Jacksonville, Fla.-based railroad previously offered limited service from the terminal to a small rail yard that required containers to be shuttled back and forth by truck.    In January, the carrier will use the Commonwealth Rail, a short line that shuttles containers between the APMT facility and a marshaling yard in nearby Suf...

Monday, December 19, 2011

By Eric Kulisch    If you don’t watch Fareed Zakharia’s “GPS” program Sunday mornings on CNN , you should. The journalist and foreign affairs analyst gets past the surface noise to provide provocative analysis about what’s really going on at the intersection of global economics and politics.   GPS stands for Global Public Square. It’s a forum for exchanging ideas about the critical issues of the day.    The show offers important lessons for freight executives at the domestic and ...

Friday, December 16, 2011

   Containerized cargo exports from the U.S. will continue to grow more quickly in the next four years than imports, bringing the nation's trade more into balance, said Mathijs Slangen, maritime advisor for the investment banking firm Seabury Group.    Slangen, who made his remarks Thursday during an American Shipper webinar , said by 2015, his firm expects exports will account for about 43 percent of U.S. containerized TEU volumes, "quite a massive increase" from the 30 percent they...

Thursday, December 15, 2011

     U.S. and Canadian officials last week outlined priorities for coordinating customs and cargo security processes, enhancing border infrastructure and harmonizing regulations to increase the efficiency of trade across the border and boost their respective economies.    A Beyond-the-Border action plan as well as new focus areas for a Regulatory Cooperation Council were the primary outcomes of Prime Minister Stephen Harper's visit to the White House. Th...

Wednesday, December 14, 2011

   U.S.-flag Great Lakes freighters carried 10 million tons of dry-bulk cargo in November, an increase of 11.9 percent over the 8.96 million tons carried in November 2011, said Lake Carriers’ Association, which represents 17 American companies that operate 56 U.S.-flag vessels on the Great Lakes. The November float was also 3.8 percent above the month’s 5-year average of 9.66 million tons.    Through the end of November, U.S. lakers moved 85 million tons this year, 4 percent more than...

Monday, December 12, 2011

     The International Longshoremen's Association (ILA) and National Industrial Transportation League are both expressing concern to the Federal Maritime Commission about plans by around 20 liner companies to alter their chassis pool agreement on file with the commission, questioning whether it will improperly extend antitrust immunity to companies not regulated by the Shipping Act of1984. Some of their concerns echo those raised by the Institute of International Container Lessors in...

Tuesday, December 06, 2011

   The Port of Stockton said it has hired Savage Companies to operate a barge service to move containers between the Port of Stockton and Port of Oakland.    Salt Lake City-based Savage will provide management, marketing, logistics and operating services for the project. Operations are slated to begin during the first quarter of 2012.    In February 2010, the U.S. Department of Transportation awarded $30 million to the ports of Oakland, Stockton and West Sacramento...

Tuesday, December 06, 2011

     Canadian Pacific on Monday said it will further develop its long train strategy in 2012.    As part of CP’s previously announced 2011 capital expansion program, the railroad’s installation of new and extended sidings in several key regions throughout its network will allow it to further benefit from current double digit increases in train lengths.    By the end of 2013, the railroad is targeting an 11 percent increase in transcontinental train lengths by addi...

Tuesday, December 06, 2011

   The Port of Greater Baton Rouge in Louisiana on Monday witnessed the opening of a new multiagency maritime security operations center.     The recently completed facility overlooking the Mississippi River is located next to the port’s administrative offices in Port Allen. This regional center has the capacity and resources to operate during catastrophic events such as hurricanes, floods or other natural or man-made disasters and will assist multiple federal, state and loc...

Monday, December 05, 2011

   FedEx Corp. said it would increase shipping rates for FedEx Ground and FedEx Home Delivery by a net average of 4.9 percent effective Jan. 2, 2012.    The company said the FedEx Ground and FedEx Home Delivery full average rate increase of 5.9 percent will be partially offset by adjusting the fuel price threshold at which the fuel surcharge begins, reducing the fuel surcharge by one percentage point. FedEx SmartPost rates also will change.    FedEx previously announced in ...

Friday, December 02, 2011

     The United States avoided a damaging railroad shutdown that would have disrupted shipments of autos, consumer goods, agricultural products, raw materials and other materials after the nation's freight railroads Thursday night reached a tentative agreement with two holdout unions on a new labor deal, and agreed to extend negotiations with one remaining union.    The Association of American Railroads announced that the rail industry had agreed to...

Monday, November 28, 2011

   The National Industrial Transportation League, the nation's largest shipper group, on Wednesday asked Congress to quickly consider and apply the terms of a recently appointed Presidential Emergency Board on both rail management and labor if the parties fail to reach agreement in the next two weeks.    In a letter to all 535 members of the U.S. House and Senate, NITL President and Chief Executive Officer Bruce Carlton said in the event that labor and management cannot reach an...

Monday, November 21, 2011

    UPS on Friday released new published rates for 2012, including a net increase of 4.9 percent for UPS Ground packages and a net increase of 4.9 percent on all UPS Air services and U.S.-origin international shipments.     UPS said the rate increase for UPS Ground shipments is based on a 5.9 percent increase in the base rate, less a 1 percentage point reduction to the index-based ground fuel surcharge. The rate increase for UPS Air and international services shipments is b...

Friday, November 18, 2011

   The nation’s major freight railroads reached tentative collective bargaining agreements with four additional unions representing more than 11,000 employees: the International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers and Helpers; the Sheet Metal Workers’ International Association; the National Conference of Firemen and Oilers; and the Brotherhood of Railroad Signalmen.    The railroads now have now a total of 10 agreements covering more than 60...

Thursday, November 17, 2011

   Six down, seven to go.    The National Railway Labor Conference said it has reached tentative collective bargaining agreements with four additional unions this week: the International Brotherhood of Electrical Workers, the Brotherhood of Railway Carmen, the International Association of Machinists and Aerospace Workers, and the Transportation Communications International Union. The deals were struck after a Presidential Emergency Board made settlement recommendations earlier this m...

Tuesday, November 15, 2011

    The National Industrial Transportation League said it will continue to work toward getting its members more access to competitive rail service.     NIT League President Bruce Carlton said at a press conference at the league's annual meeting on Monday that he was disappointed with the decision by the Surface Transportation Board earlier this month to postpone making a decision on the league's petition to change the rules on reciprocal switching so that captive shippers s...

Friday, November 11, 2011

   DB Schenker made European rail freight history Friday with the first arrival of a regular new weekly container train from Poland to the United Kingdom.    The train is the first regular rail freight service to use the High Speed 1 rail route, the only European sized railway in the United Kingdom. As a result, the train can be loaded with European-sized curtain sided swap bodies, opening up a new freight and logistics market.    The train operates once a week leaving Wroc...

Monday, November 07, 2011

   The Surface Transportation Board said Friday that it is putting off consideration of a request by the country's largest shipper organization to revise its rules having to do with competitive railroad switching.    The National Industrial Transportation League asked the STB in July to adopt new rules so captive shippers served by a single railroad could gain access to competing carriers more easily. The League said existing competitive access rules did not work, and that no shipper...