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January 2005 |
South Carolina Accident Alerts Nation | |
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In This Issue:
Contact Us: RailForce, Inc.
The Tech Corner Is your internet browser moving slow? When you enter a search on a browser page do strange things happen. Are you being directed to sites you never wanted know existed? Chances are your computer is infected with spyware. Spyware or Adware installs itself on your
computer and provides advertiser with information about sites you have
visited and sends the information back to advertisers. These programs can
also redirect your home page on your browser, or subject you to endless
pop-ups. If your system is moving very slowly, or taking you to web pages
you did not request, chances are you may have downloaded adware or spyware.
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The tragic accident in South Carolina on January 6th has sent ripples through the town, the railroad industry, and the nation. The event has demand the immediate attention of everyone involved as the question of hazardous material transport safety is raised. This article looks at the potential aftermath of the accident…from reducing train speeds in cities, to improving the safety of pressurized tank cars, to increasing national security, this accident is being closely studied in an effort to minimize future risks. The immediate impact has been to the town of Graniteville, South Carolina where 9 people are confirmed dead, 58 hospitalized and hundreds have sought medical treatment. This is the second railroad-related accident in Graniteville in three months. In the first incident, a carload of mill workers attempted to beat a train at a crossing and didn't make it. 5 people were killed in that accident. Certainly the driver of the car was at fault in that accident, but the Aiken County Council has been pursuing a reduction in train speeds following the first accident. Councilmen Charles Barton was quoted in The Virginian-Pilot stating, "Trains go through the little village between 45 and 49 miles per hour. In my opinion, that is a little too fast." Now he wonders what if? "If it had been going a little bit slower, maybe it wouldn't have been as bad." Norfolk Southern has not released an official statement regarding the accident, but has been quick to act by opening an accident assistance center in Aiken and bringing in representatives to begin processing claims and reimbursing people for food, lodging, inconvenience, property damage and personal injury. NS has also brought in representatives from the Center for Toxicology and Environmental Health to respond to inquiries about chlorine exposure. Norfolk Southern has been recognized as the nations' safest Class 1 railroad with the EH Harriman Memorial Awards' Gold Medal for 15 years in a row. With the level and severity of injuries involved, Norfolk Southern's liability is "potentially huge" according to an insurance expert quoted in the Virgina-Pilot article (Jan 10 2005). The Federal Railroad Administration has not released an official report on the accident, but the Administration has released an advisory. According to the New York Times News Service (Jan 11, 2005), the FRA has advised all freight railroads to re-examine their procedures for the operation of manual switches. Investigators suspect that a local train crew left a manual switch in the incorrect position, leading the Norfolk Southern train into a parked local train. The FRA will review changes made by the railroads and may propose regulations if there is not a significant response. Nationwide, fears have been mounting that hazardous materials shipments may make a compelling target for terrorists. First, the vulnerability of cars has been noted. Current standards for pressurized tank cars call for a heat treatment to make the steel stronger and less brittle. The National Transportation Safety Board estimates that of the 60,000 pressurized tank cars operating today, more than half were built before 1989. These cars may remain in service for up to 50 years. A New York Times article (Jan 10, 2004) states that railroad and chemical executives have formed a task force to study these issues and are currently testing other manufacturing and construction techniques to improve the safety of pressurized tank cars. In addition, concerns have been raised about the shipment of hazardous materials through densely populated areas. Federal officials have at times rerouted trains for security reasons, The USA Today states that "the rail industry has opposed efforts to permanently reroute hazardous cargo away from major cities, insisting that would simply shift the threat elsewhere." (Jan 12, 2004). While there is no acceptable location for a hazardous materials accident, The USA Today article quotes a government scientist's testimony that "a toxic release in a city can put 100,000 people at risk in less than 30 minutes, killing 100 people per second." There seems to be a rising call to address the hard questions of hazardous material transport before another tragic event occurs. While Federal authorities state that they have been working with railroads and the chemical industry to improve security, their efforts seem to be met with some skepticism by the press. The USA Today goes so far as to state "Any meaningful change appears unlikely. While the rail industry says a lot has been going on behind the scenes to address terrorism, there's little hard evidence of strategic thinking or government money aimed at hazardous train cargo." It seems that the focus on hazardous materials transportation safety will intensify and require a definitive response by the railroad industry. In addition, this accident may result in calls for action on the part of the Federal government to provide security for both hazmat shipments and freight rail lines.
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| Fitch Releases Economic Projections | ||
| Fitch Ratings has
released their report on US Rail Performance in 2005. Based on a predicted
3.3% increase in the US gross domestic product in 2005, Fitch sees
continued strong growth in rail volumes and revenues. Improvements in
operational efficiency should result in modest increases in cash flow.
Rather than pay off debt, Fitch predicts the railroads’ focus will remain
on returning cash to shareholders. Fitch also suggests that strong demand
will continue and that modest rate hikes (2-4%) can be supported. Demand
is expected to remain strong in coal and intermodal volumes, while auto
shipments are expected to be flat or slightly down.
Rail capacity will continue to be an issue. Plans to
improve capacity are focused on improving operational efficiency and
adding employees and equipment to improve the flow of railroad networks.
UP and CSX in particular are addressing operational problems that led to
reduced profitability, even though rail demand was at a record high in
2004. Read the
Complete Article |
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| Coal Transport Demand Increases | ||
| Demand for
coal transport is strong and getting stronger. CSX and Norfolk Southern,
the main railroads serving central Appalachia have reported large
increases in coal transportation. Both railroads indicate that they could
do more, if the capacity was available. A few coal company executives have
also reported that the lack of rail transportation is reducing their
ability to capitalize on additional coal sales.
More... |
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| Railroad Recruiting Gains National Press | ||
| In the 4th
quarter of 2004, the Association of American Railroads released a
statement that freight railroads expect to hire more than 80,000 employees
between now and the end of the decade. This fact, and the tough conditions
that accompany these new jobs is being reported across the mainstream
news. More.. |
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| CP Exceeds Grain Revenue Cap | ||
| The Canadian Press announced on December 30, 2004 that
Canadian Pacific Railway Co. had exceeded its permissible revenue cap
for grain transportation in the latest crop year and must pay a penalty,
according to the Canadian Transportation Agency. CP Rail's grain revenue of about $309.9 million was $321,912 above its revenue cap. More... |
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| Montana Legislature Faces Railroad Issues | ||
| Montana
Legislators are starting work to tackle railroad issues in their state.
Creating more competition and creating opportunities to improve and manage
branch lines are high on their list. BNSF operates 90% of the railroad
miles in Montana. A new state study shows that freight rates for Montana
shippers are often 50% higher than in states with greater rail
competition. At the same time, BNSF is focusing on high-volume
improvements to their network, and abandoning branch lines to small town,
traditional grain elevators. More.. |
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| CPR and Canadian Government Invest in Border Security | ||
| The Government of
Canada and Canadian Pacific Railway (CPR) announced a joint investment of
over $8 million to secure Canada’s busiest border crossing, a 7.5-km CPR
rail corridor from Walker Road in Windsor to the U.S. border. This will be accomplished by protecting that length of
track and preparing the site for the installation, by the U.S. government,
of a Vehicle and Cargo Inspection System (VACIS). This is a state-of-the-art
security system designed for rail cargo inspection.
More... |
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| KCS Names Exec VP and Chief Operating Officer | ||
| Kansas City
Southern announced that Arthur L. Shoener has been elected to the position of
Executive Vice President and Chief Operating Officer of KCS and the
positions of President and Chief Executive Officer of The Kansas City
Southern Railway Company (KCSR) and The Texas-Mexican Railway (Tex-Mex).
Shoener will report directly to Michael R. Haverty, who remains Chairman,
President and CEO of KCS and Chairman of KCSR. Haverty has also been elected
Chairman of Tex-Mex. More... |
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| We Want To Hear From You | ||
| Has this newsletter been helpful? Are there more topics that you would like to see covered? We are here to serve the railroad community, so send us your ideas, concerns or suggestions. | ||
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