The Rail Safety Improvement Act of 2008 and the Passenger Rail Investment and Improvement Act of 2008 will increase funding for Amtrak over the next five years, require new safety controls on trains that help reduce crashes, allow states to regulate solid waste processing facilities along rail lines and allocate funding for improvements to Washington’s Metro transit system.

The legislation sets “an aggressive deadline” of 2015 for implementation of positive train control (PTC) across most of the rail network, Edward R. Hamberger, President and CEO of the Association of American Railroads said in a statement. Hamberger promised that “the freight railroad industry is committed to doing everything it can to ensure that PTC is implemented effectively and safely,” but admitted it would be a challenge.

“Nothing is more important to the railroad industry than the safety of our employees and the communities we serve,” Hamberger added. “Although 2007 was the industry’s safest year in history, we recognize that there is always room for improvement. Provisions of the new safety legislation will help facilitate even more improvements in safety.”

The rail legislation includes the Amtrak reauthorization bill which was developed from similar bills passed by the Senate last year (70-22) and passed by the House earlier this year (311-94). The bill:

– Authorizes $13.06 billion over five years for passenger rail— more than $2.6 billion annually for Amtrak, intercity passenger rail, and high speed rail programs, which is almost double what the U.S. is currently spending

– Requires reforms at Amtrak, including a new Board of Directors, improved accounting and financial planning, and new standards for service reliability and on-time performance.

– Requires a collaborative plan for bringing the Northeast Corridor to a state-of-good-repair by 2018

– Authorizes the Surface Transportation Board to fine freight railroads for delaying Amtrak trains.

– Requires Amtrak stations to comply with disability accessibility standards and authorize funding for such improvements.

The legislation also includes the Railroad safety improvement bill which was developed from similar bills passed unanimously by the Senate and by the House (377-38). The bill:

– Mandates positive train control (PTC) technology on passenger and certain hazmat rail main lines by 2015 and authorize $250 million in Federal grants for PTC installation.

– Guarantees a 12-hour work period and minimum 10-hour disruption-free rest period for train crews and signal employees.

– Limit the amount of time a rail worker may be in “limbo time.”

– Requires a Federal study and regulation on use of cell phones and other device distractions in locomotive cabs.

– Requires risk-based safety programs for all major railroads to prevent deaths and injuries.

– Creates a National Transportation Safety Board office to assist families of passengers following rail disasters.

Also, the Washington Metropolitan Area Transit Authority (WMATA) reauthorization bill, included in this bloated piece of legislation, authorizes $1.5 billion over 10 years for rehabilitation and improvements to Washington D.C.’s rail transit system.

“We are grateful to our entire Congressional delegation and others in Congress who understand the importance of protecting the substantial investment the federal government and the National Capital region have made in the Metro system,” said Metro General Manager John Catoe following passage of the bill. “Metro is an asset designed to serve the federal workforce and the National Capital Region.

“A safe, secure, and reliable Metro system is also a critical component for ensuring the continuity of federal operations during an emergency,” Catoe added.

Also included is the Clean Railroads Act of 2008 which allows states to clean up solid waste processing facilities on rail sites, which have avoided regulation through a loophole in Federal law and applies state standards for air pollution, water pollution and fire safety to transfer facilities handling and storing solid waste in open dumps.

“Today is a transformative and historic moment in our Nation’s transportation system, because we passed legislation improving intercity passenger rail service and enhancing a transportation solution that is affordable, accessible, and environmentally sustainable,” said Rep. James L. Oberstar, D-Minn. “… This legislation greatly increases safety standards for the rail industry, which is good news for rail workers and the general public.”

The bill now goes to the Senate.

Total volume was estimated at 32.8 billion ton-miles, down 6.8 percent from the comparable week last year.

Carload freight in the week totaled 312,662 cars, off 7.8 percent from last year. Volume was down 10.4 percent in the West and 4.3 percent in the East.

Intermodal volume, which is not included in the carload data, totaled 234,286 trailers or containers, down 6.2 percent from a year ago. Trailer volume was off 6.6 percent while container traffic was down 6.1 percent.

Eighteen of 21 carload commodity groups were down from a year ago. Chemical loadings were down 21.7 percent while grain was off 22.6 percent and lumber and wood products fell by 25.0 percent. Coal volume was up 2.2 percent from a year ago while metallic ores rose 16.6 percent.

Cumulative volume for the first 38 weeks of 2008 totaled 12,347,838 carloads, down 0.1 percent from 2007; 8,500,351 trailers or containers, down 3.1 percent; and total volume of an estimated 1.28 trillion ton-miles, up 1.0 percent from last year.

On Canadian railroads, during the week ended September 20 carload traffic totaled 71,794 cars, down 13.9 percent from last year while intermodal volume totaled 51,805 trailers or containers, up 2.1 percent from last year.

Cumulative originations for the first 38 weeks of 2008 on the Canadian railroads totaled 2,816,737 carloads, down 4.3 percent from last year, and 1,830,242 trailers and containers, an increase of 4.1 percent from last year.

Combined cumulative volume for the first 38 weeks of 2008 on U.S. and Canadian railroads totaled 15,164,575 carloads, down 0.9 percent from last year, and 10,330,593 trailers and containers, a 1.9 percent decrease from last year.

The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended September 20 totaled 7,927 cars, down 28.2 percent from last year. KCSM reported intermodal volume of 5,592 trailers or containers, up 8.0 percent from the 38th week of 2007.

For the first 38 weeks of 2008, KCSM reported cumulative volume of 391,399 cars, down 5.0 percent from last year, and 186,187 trailers or containers, up 8.5 percent.

Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail intermodal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator.

– Special to Railfanning.org News Wire

The project involves constructing a tunnel for KCS trains above which the existing highway bridge will be removed and replaced with an at-grade roadway. As a result, heavy trucks can resume operating on Washington Street, KCS will straighten its right-of-way, and a new connector road will be built to accommodate the closure of the Lee Street highway-rail grade crossing.

The City of Vicksburg is contributing $1 million to this project and KCS is providing $500,000.

“Over the years, the railroad industry has developed a strong safety culture,” said Edward R. Hamberger, president and CEO of the Association of American Railroads (AAR) at the annual E.H. Harriman Awards luncheon which honors railroads with the best employee safety records for the previous year.

“Last year the train accident rate was the lowest in history,” he said. “So was the grade crossing accident rate. The total number of fatalities from all rail-related incidents was also the lowest in history. And the employee injury rate was the second lowest in history, missing the record set in 2006 by less than one percent.”

Hamberger noted that 2008 is off to a strong start with respect to safety. “The employee injury rate, the train accident rate and the grade crossing incident rate were all lower in the first two months of this year than they were a year ago.”

The E.H. Harriman Awards celebrates the achievements of railroads with the best employee safety records by awarding twelve gold, silver or bronze awards in four categories at an annual luncheon and awards ceremony.

Hamberger credited the industry’s more than 230,000 dedicated employees as being responsible for the industry’s extraordinary safety record.

“This is a safe industry because of the dedication of the individuals who work for it … people who operate trains … people who maintain and repair tracks and signals … people who dispatch trains … people who maintain our fleet of 21,000 locomotives and 1.5 million freight cars … and all of the people who work “behind the scenes”.

Norfolk Southern was awarded top, gold honors for the nineteenth year in a row in Group A which is comprised of line-haul railroads whose employees worked 15 million employee-hours or more during 2007. Other Group A recipients included CSX Transportation (silver) and Union Pacific Railroad (bronze).

In Group B (line-haul railroads whose employees worked 4 to 15 million employee-hours in 2007), for the second year in a row, the gold award went to Kansas City Southern Railway. Silver going to Metra, the Chicago commuter railroad, and bronze went to Canadian Pacific Railway (US operations).

Group C includes railroads whose employees worked less than 4 million employee-hours during the award period. Awards were given to Iowa Interstate Railroad (gold), Elgin, Joliet and Eastern Railway (silver) and Florida East Coast Railway (bronze).

Group S&T is for switching and terminal companies and the Terminal Railroad Association of St. Louis took the award for gold. The silver award went to Union Railroad of Pittsburgh, while the Birmingham Southern Railroad received the bronze.

Certificates of Commendation were awarded recognizing four railroads with continuous gains in employee safety improvements over a three year period and showing the most improvement between 2006 and 2007.

Certificates went to Amtrak for Group A, the Long Island Rail Road (Group B), Wisconsin & Southern Railroad (Group C) and finally, Union Railroad for Group S&T.

The Harriman Awards was founded by the late Mrs. Mary W. Harriman in memory of her husband, Edward H. Harriman, an American legend in railroading.

Today, the awards are administered under the auspices of the E.H. Harriman Memorial Awards Institute, with support from the Mary W. Harriman Foundation.

Railroads’ commitment to safety is an integral part of the culture of railroading in America. Today, employee injury rates have declined sharply - down more than 80 percent since 1980. In fact, today railroad employees have injury rates comparable with employees working in the retail or food service industry and lower than those in other modes of transportation.

Harriman winners are selected by a committee of representatives from the transportation field and are granted on the basis of the lowest casualty rates per 200,000 employee-hours worked with a formula that accounts for volume of work performed as well as the number of fatalities and occupational illnesses. All data is documented by the Federal Railroad Administration.

Since deregulation of the freight railroad industry in 1980, Class 1 freight ton-miles have increased 93 percent, while miles of track have decreased 40 percent, U.S. Rep. Corrine Brown, D-Fla., said. The U.S. Department of Transportation estimates that the demand for rail freight transportation will increase 88 percent by 2035, and their studies estimate that an investment of $148 billion in infrastructure expansion will be needed over the ext 28 years to keep pace with economic growth and to meet DOT’s expecteddemand, the Congresswoman added.

“Unfortunately, as freight movements have grown, so have the conflicts between freight and passenger trains, even though under existing federal law, Amtrak trains have priority over freight trains,” Brown said during a hearing last month. “This demand for space in the rail system has also caused unintended consequences for shippers.”

Freight traffic on U.S. railroads in 2007 was the second highest on record, according to the Association of American Railroads (AAR), following only 2006.

“Additionally, there is growing demand on the rail network for more than just freight movements,” U.S. Rep. James L. Oberstar, D-Minn., said during last month’s hearing. “In 2007, Amtrak moved 25.8 million passengers, the fifth straight year of record ridership. Additionally, commuter rail providers recorded 460 million trips in 2007.

“Congestion, heightened concerns over global warming, and rising gas prices will continue to push the demand for these alternatives to highway travel, and Amtrak and commuter rail must be able to continue to expand to accommodate their growing ridership,” Oberstar added. “Amtrak and commuter rail utilize portions of the freight rail network to provide service. However, their capacity needs are different from those of the freight railroads, meaning different capacity investments will be necessary if we want to continue to favor these modes.”

To help ease the congestion, some members of Congress are looking whether federal legislation needs to be passed, according to Oberstar.

“Unlike other modes of transportation, there is no dedicated stream of funding for rehabilitating, reconstructing, or expanding our nation’s rail network,” Oberstar said. “Some legislative proposals to deal with capacity concerns are circulating in Congress, including one to provide the railroads with a 25 percent infrastructure tax credit. I am currently reviewing that legislation.”

– Railfanning.org News Wire

The terms and conditions are set forth in the Offer to Purchase and Consent Solicitation Statement dated May 8.

– PRNewswire-FirstCall

• David R. Ebbrecht was promoted from assistant vice president network operations to vice president transportation, reporting to Scott E. Arvidson, executive vice president and chief operating officer.
• Jeff M. Crandall has moved from vice president transportation to vice president engineering, reporting to Jerry W. Heavin, senior vice president international engineering.
• Mitchell S. Whitmire was promoted from general director materials logistics to general manager locomotive operations, reporting to John E. Foster, vice president and chief mechanical officer.

“In everything that we do, we are implementing a methodical, repeatable, measurable approach to planning and execution – both for today’s and for tomorrow’s needs,” Arvidson said. “We are fortunate to have a talented group of individuals already in house with the expertise to produce the kind of results our customers and shareholders expect.”

In his new role, Crandall is responsible for maintenance of way for KCSR. He joined KCSR in November 2006 to lead the planning and scheduling area of the international engineering department and was promoted to vice president transportation for KCSR in November 2007.

Prior to joining KCSR, he spent 28 years with Union Pacific in a variety of engineering, mechanical and transportation roles. Crandall holds a bachelor of science in business management from Iowa State University.

In his new role, Ebbrecht is responsible for all KCSR field operations, System Transportation Center and tactical rail asset distribution functions. He joined KCSR in 2001 and has held positions in strategic planning, materials logistics, transportation management and network operations.

Ebbrecht has 12 years experience in the transportation logistics industry with KCSR and CSX, and an additional nine years which were spent as an aviation officer in the U.S. Army. Ebbrecht is a candidate for a master of business administration from the University of Missouri Kansas City and holds a bachelor of science in general engineering and psychology from the U.S. Military Academy at West Point.

In this newly created position, Mitchell S. Whitmire is responsible for improving the availability, reliability and quality of the locomotive fleet. He joined KCSR in 2006, after spending a year as an owner/operator of Whitmire Sawmill. Prior to that, he was a captain in the U.S. Army.

Over the course of an 18-year military career, Whitmire was on active duty as an enlisted infantryman and quartermaster officer, serving in Georgia, Iraq, Kentucky, California and Kuwait. He holds a bachelor of general studies degree from Arkansas State University and an associate’s degree in arts and sciences from Black River Technical College.

In addition to these promotions, the territories of the three transportation divisions have been realigned, as have their leaders. The Midwest Division territory is now defined as East St. Louis, Ill., west to Kansas City and south to Shreveport, La. The new general manager for this division is Kevin D. McIntosh, who most recently served as assistant vice president personnel services.

McIntosh joined KCSR in 1996. In addition to his personnel services role, he has served as general director safety, health and operating practices, has held a variety of transportation management positions and has worked in the accounting department. He holds a master of business administration from the Rockhurst University Executive Fellows Program and a bachelor of science in business management from the University of Missouri Columbia.

The Southeast Division territory is defined as Dallas, Texas, east to Shreveport, including Shreveport terminal, east to Meridian, Miss., and north to Counce, Tenn., as well as the line from Hattiesburg to Gulfport, Miss. The new general manager for this division is Claude N. Friesland, who most recently served as general manger for the Midwest Division.

Friesland joined KCSR in 2003 and has served in a variety of transportation management positions. Prior to joining KCSR, he spent eight years with Norfolk Southern. Friesland is a candidate for a bachelor of science in business administration from Phoenix University.

The Texas Division territory is now defined as Laredo, Texas, north to Shreveport and from Shreveport south to New Orleans, La. The new general manger for this division is Mark A. Redd, who most recently served as general manger for the Southeast Division.

Redd joined KCSR in 1993 with KCSR’s purchase of the Mid-South Railroad and has held a variety of transportation management positions. He holds a bachelor of science in management from the University of Phoenix.

– Business Wire

Upchurch will direct The Kansas City Southern Railway Co. (KCSR) and advise Kansas City Southern de Mexico, S.A. de C.V. (KCSM) on all long-range planning, purchasing and internal audit matters. He will report to executive vice president and chief financial officer Patrick J. Ottensmeyer.

“In addition to an extensive background in managing a broad array of financial functions for a major, international telecommunications company, Mike brings an impressive track record of change management, driving for results and leadership,” Ottensmeyer said. “We are pleased to have Mike join our finance team.”

Upchurch joins KCS from Sprint Nextel, where he spent 16 years, most recently as senior vice president financial operations. Prior to joining Sprint, he spent seven years with Price Waterhouse, where he served a diverse client base.

He holds a bachelor of science in business administration with an emphasis on accounting from Kansas State University. He is a Certified Public Accountant and serves on the College of Business Advisory Board and the Accounting Department Advisory Board for Kansas State University.

– Business Wire

Bowers will direct The Kansas City Southern Railway Company (KCSR) and advise Kansas City Southern de Mexico, S.A. de C.V. (KCSM) on the sales and marketing of these business units. Bowers will report to executive vice president sales and marketing Daniel W. Avramovich.

“KCS has a vast number of opportunities for business growth, especially in the NAFTA corridor and International Intermodal Corridor,” Avramovich said. “With 32 years of transportation leadership experience, Brian will play a critical role in helping to bring these opportunities to fruition and further develop these corridors.”

Bowers spent ten years with Schneider National, Inc., where most recently he served as senior vice president global wholesale services. While at Schneider, he also held leadership roles over global business development, intermodal and optimodal.

Prior to Schneider, he was president of Hub Group Dallas, Houston and New Orleans for ten years. He has also held leadership positions with North American Van Lines and Roadway Express. He holds a master of business administration from Ohio State University and a bachelor of arts in history and political science from Drake University.

– Business Wire

Davis was elected to fill a vacancy created by the resignation from the board of Arthur L. Shoener, KCS’ president and chief operating officer, who resigned in order to allow the company to increase the number of independent directors on its board without increasing the size of the board. Davis will seek re-election by the shareholders of the company at its annual meeting to be held on May 1.

“In addition to being a respected business and civic leader in Mexico, Henry has served on the board of directors of a number of public and private corporations as well as socially oriented philanthropic institutions in Mexico,” said KCS chairman and chief executive officer Michael R. Haverty. “With the importance of Kansas City Southern de Mexico to our company as a whole, Henry’s perspective, counsel and guidance will be very valuable as we strengthen ties with Mexico and develop new business opportunities in Mexico.”

Davis serves as president of the investment firm Promotora DAC, S.A. de C.V., which focuses its investments in the financial and real estate sectors. He served as president, chief executive officer and vice chairman of the board of Grupo Cifra from 1983, until its acquisition by Wal-Mart de México in 1998. He is a director of Grupo Bimbo, S.A.B. de C.V, Ixe Grupo Financiero S.A. de C.V. and Grupo Aeroportuario de Pacífico S.A.B. de C.V. Mr. Davis holds a bachelor of science in business administration from the National University of Mexico and a Management Development Program certificate from the Harvard Business School.

“With President Calderon’s program of new infrastructure development throughout Mexico, and Kansas City Southern de Mexico’s significant capital investments, it is clear that rail transportation is vital to the development of Mexico’s industrial base and its economic future,” Davis said. “I am honored to accept this position on Kansas City Southern’s board of directors.”