According to Li Chenggang, Zibo city spokesman, the tracks where the trains crashed are being upgraded in advance of the Olympics. The upgraded line is supposed to reduce travel time between Jinan and Qingdao, a coastal city that is hosting the Olympic sailing competition.

Officials previously said excessive speed could be to blame for the Monday (April 28) train crash. Investigators said train operators were advised prior to the wreck to reduce their speed in this section of the track, according to Chinese media reports.

According to a Xinhua news report, an express train traveling to the east China city of Qingdao from Beijing was traveling 131 kph (81 mph) in an 80 kph (50 mph) zone. The train derailed and crashed into a second train, which was traveling from Yantai in the Shandong province to the Jiangsu province city of Xuzhou, authorities said.

At least three senior railway officials in the Shandong province were fired because of the wreck, said to the worst in China in more than a decade. It is not clear whether the train engineers survived the crash.

The wreck is the worst in China since 1997. During the 1997 crash in the central province of Hunan, more than 100 people were killed, according to media reports.

The Qingdao-Jinan Railway was closed for roughly 20 hours after the derailment.

– Railfanning.org News Wire

According to a Xinhua news report, an express train traveling to the east China city of Qingdao from Beijing  was traveling 131 kph (81 mph) in an 80 kph (50 mph) zone. The train derailed and crashed into a second train, which was traveling from Yantai in the Shandong province to the Jiangsu province city of Xuzhou, authorities said.

“So far, the accident site has been cleaned up and the stranded passengers evacuated,” Xinhua quoted Wang Jun, head of the State Administration of Work Safety, as saying. “All the injured have been hospitalized and the dead have been transferred to local funeral homes.”

The wreck is the worst in China since 1997. During the 1997 wreck in the central province of Hunan, more than 100 people were killed, according to media reports.

The Qingdao-Jinan Railway was closed for roughly 20 hours after the derailment.

– Railfanning.org News Wire

“This strong measure better ensures that rail shipments of hazardous materials will reach their final destinations safely and without incident,” said Peters, noting the rule applies to trains hauling Poison Inhalation Hazard (PIH) commodities such as chlorine and anhydrous ammonia which are heavily used in farming, water purification, and manufacturing.

Beginning June 1, the rule requires railroads to conduct a comprehensive safety and security risk analysis of its primary route and any practicable alternative routes over which it has authority to operate. The analysis must consider information provided by local communities and a minimum of 27 risk factors like trip length, volume and type of hazmat being moved, existing safety measures along the route, and population density, Peters said.

Railroads must implement their routing decisions based on these analyses by September 2009. In addition, the rule includes several rail security provisions designed to guard against tampering with the rail hazmat car during transportation, the Secretary said.

The new rule complements the Department’s proposal last month to increase by 500 percent on average the amount of energy a rail hazmat tank car must absorb during a train accident before a catastrophic failure occurs, Peters said. This dramatic improvement in puncture resistance can be achieved with innovative designs, materials, and technologies available today and in combination with speed restrictions, she said.

“Stronger hazmat tank cars moving on the safest and most secure rail routes will enhance safety for people living in big cities and rural towns all across America,” Peters said.

The interim final rule on rail hazmat routing was developed by the Department’s Pipeline and Hazardous Materials Safety Administration in consultation with the Federal Railroad Administration, and fully complies with the provisions of the Implementing Recommendations of the 9/11 Commission Act of 2007.

– Special to Railfanning.org News Wire

Hundreds more were injured — included dozens in serious condition — in the pre-dawn train wreck, said to be the worst in China in more than a decade. Some authorities indicated the death toll could rise.

The wreck occurred when an express train traveling to the east China city of Qingdao from Beijing derailed and crashed into a second train, which was traveling from Yantai in the Shandong province to the Jiangsu province city of Xuzhou, authorities said. The two trains were traveling at full speed at the time of the crash.

Human error — and not terrorism — was blamed for the wreck. Vice Premier Zhang Dejiang was sent to the crash site to direct rescue efforts.

The wreck is the worst in China since 1997. During the 1997 wreck in the central province of Hunan, more than 100 people were killed, according to media reports.

– Railfanning.org News Wire

Annual ridership on the full route is estimated at about 187,000 passengers, based on two daily round-trips and if improvements are made allowing maximum speeds of 79 mph. The states of Iowa and Illinois would share the capital investment costs and the estimated annual Amtrak operating contract expense of about $6 million. The estimated cost to upgrade the railroad infrastructure in this example is $54.9 million.

“Regional intercity passenger rail service is a positive alternative to highway and air travel. Rail service has tremendous advantages in terms of reducing our dependence on fossil fuels and foreign sources of oil; slowing the growth of highway congestion and associated pollution; energy conservation; and lifestyle enhancement through improved mobility for persons who either cannot or simply do not want to drive or fly,” said Iowa Governor Chet Culver. “That’s why passenger rail service has a bright future in America and why we are going to have to give it a higher priority in moving people in Iowa.”

“In light of escalating fuel prices, congested interstates and the environmental impacts of highway transportation, modal opportunities such as rail passenger service need to be seriously examined,” said Iowa DOT Director Nancy Richardson.

“This project is an excellent example of the type of public-private partnership that will be essential to sustaining and expanding this country’s multi-modal transportation network. The Iowa DOT appreciates Amtrak’s interest in expanding rail passenger service in Iowa, and is anxious to join them, the Iowa Interstate Railroad and Illinois Department of Transportation in determining the next steps to making this route a reality,” Richardson added.

“State-supported routes are the fastest growing part of our business. We look forward to working with Iowa and Illinois to meet with the host railroads and take the next steps to initiate this service,” said Amtrak President and CEO Alex Kummant.

Amtrak has never operated scheduled trains to Iowa City, which lost its Rock Island Railroad passenger rail service in 1970, or the Quad Cities, which lost its Rock Island Railroad service in 1978.

The Amtrak study released today is an addendum to an earlier study and report issued in December 2007 for the Illinois Department of Transportation, analyzing the feasibility of rail passenger service from Chicago to the Illinois Quad Cities. Both reports are available at: www.iowadot.gov/amtrakstudy/.

The Illinois report found the best route between the Quad Cities and Chicago would use a portion of the former Rock Island Railroad, now owned by Iowa Interstate Railroad (IAIS), from the Quad Cities to a proposed track connection to the BNSF Railway near Wyanet, Ill. The choice of the IAIS/BNSF route is also enhanced by taking advantage of recently improved Amtrak stations at Princeton, Mendota and Naperville, Ill.

A map depicting the preferred routes from Chicago to the Quad Cities and from the Quad Cities to Iowa City can be found at: www.iowadot.gov/amtrakstudy/.

For Amtrak service to reach Iowa City, passenger rail service must first be established to the Quad Cities. The addendum released today specifically examines the feasibility of extending service the 59 miles from the Quad Cities to Iowa City via the Iowa Interstate Railroad.

“Each year we remember those employees who have lost their lives or suffered injury in occupational incidents in an effort to continuously strengthen our focus on workplace safety,” said Executive Vice-President and Chief Operating Officer Kathryn McQuade. “Safety is our number one priority.”

Trains across Canadian Pacific’s 13,500-mile North American rail network, locomotives in CP yards and terminals, and crane operators in intermodal terminals will stop at safe locations for one minute of silence followed by one lone whistle as a further salute. CP employees working on the road will safely park their vehicles and observe one minute of silence at the same time. Shop workers and office employees, too, will observe a minute of silence.

“As a result of dedicated joint union-management Occupational Health and Safety teams across our rail network, Canadian Pacific has one of the best on-the-job safety records in the North American rail industry,” added McQuade.

Canadian Pacific’s personal injury frequency for 2008 is currently about 1.4 injuries per 200,000 employee hours, comparing favorably to a North American industry average of approximately 1.6 injuries per 200,000 employee hours according to Federal Railroad Administration (FRA) statistics, the railroad said. Personal injuries have declined 76 percent in the past decade and 24% in the first quarter of 2008 in comparison to the first quarter of 2007.

Measured by train incidents, CP has been North America’s safest large railway in six of the last seven years, according to the railroad.

On March 31, Canadian Pacific became the second large railroad to join the Confidential Close Call Reporting Pilot Project, a FRA-funded study of workplace incidents that could have resulted in an accident, but did not. The pilot project involves the FRA, Canadian Pacific, and employees represented by the Brotherhood of Locomotive Engineers and Trainmen (BLET) and United Transportation Union (UTU) in Portage and Milwaukee, Wisc., as well as certain BLET and UTU represented employees based in St. Paul, Minn.

– PRNewswire-FirstCall

Trains on CTA’s Red Line were interrupted because of the accident.

“Right now this is just a tragic traffic accident,” The Associated Press quoted Chicago Police Department Deputy Chief Joseph Patterson as saying. Two women who were walking near the shelter were killed, and more than 20 people were taken to the hospital.

Red line trains continued to operate, though they bypassed the Cermak-Chinatown station.

– Railfanning.org News Wire

The Department of Justice is seeking civil penalties and injunctive relief under the Clean Water Act and the Comprehensive Environmental Response, Compensation and Liability Act.

On Jan. 6, 2005, a northbound Norfolk Southern Railway freight train encountered an “improperly lined” switch, and the train diverted from the main line onto an industry track. There, it struck an unoccupied, parked train.

Among the derailed cars were three tank cars containing chlorine, one of which was breached, releasing chlorine gas. The train engineer and eight other people died as a result of chlorine gas inhalation.

Hundreds more were evacuated because of spilled chemicals.

“DOJ has rejected efforts by Norfolk Southern to resolve the matter and Norfolk Southern is disappointed the government is taking this action given its response following the derailment, its full cooperation in the investigation and its payment of governmental response costs,” the railroad said in a statement. “Norfolk Southern is confident that the civil penalties and relief sought by the Department will not be sustained.”

– Railfanning.org News Wire

First-quarter 2008 results were impacted by the settlement of a lawsuit relating to the 2005 accident at Graniteville, S.C., which, when combined with other favorable claims-related adjustments, reduced earnings by $0.02 per diluted share.

“Norfolk Southern delivered strong financial performance during the quarter, reporting the highest railway operating revenues in its history, in spite of a less than robust economy,” said Norfolk Southern CEO Wick Moorman. “The results clearly indicate the strength of our balanced franchise, and we remain optimistic that we will produce continuing positive results in 2008.”

First-quarter railway operating revenues were a record $2.5 billion, an increase of 11 percent, compared with the first-quarter of 2007. Weakness in automotive, housing, and intermodal shipments was partially offset by strong coal and agricultural volumes, resulting in a net 2 percent reduction in traffic volume for the quarter. Higher average revenue per unit more than offset the volume decline.

General merchandise revenues reached $1.35 billion, 10 percent higher compared with the same period last year. Coal revenues climbed 19 percent to a record $662 million compared with first quarter 2007 results. Intermodal revenues increased 5 percent to $486 million compared with the first quarter of 2007.

Railway operating expenses for the quarter were $1.9 billion, an increase of 12 percent over the same period of 2007, primarily due to higher fuel prices, which rose by $156 million or 63 percent.

The railway operating ratio was 76.9 percent, slightly higher compared with 76.5 percent during first-quarter 2007.

– PRNewswire-FirstCall

Diluted earnings per share, excluding the effects of foreign exchange gains and losses on long-term debt and other specified items, decreased $0.03 as there was a favourable change in provincial tax rates which partially offset the impacts of severe winter operating conditions and the increase in fuel costs. However, foreign exchange gains and losses and other specified items, discussed below, reduced earnings by a further $0.20.

Among the highlights:

-   Total revenues rose three per cent to $1.15 billion from $1.12 billion
-   Income before foreign exchange gains and losses on long-term debt and other specified items decreased five per cent to $116 million from $123 million
-   Adjusted diluted earnings per share decreased to $0.75 from $0.78
-   Operating ratio was 82.7 per cent compared with 79.5 per cent

“The first quarter brought many challenges as we continued to face remarkable year-over-year increases in both fuel prices and the Canadian dollar,” said Fred Green, President and CEO. “At the same time, we had a difficult winter with prolonged cold spells and record snowfall which affected the entire supply chain and resulted in very tough operating conditions throughout the central and eastern parts of our network. Although our busy western corridor remained fluid, the winter weather had a significant impact on our overall ability to move traffic efficiently.”

“The team will continue to focus on execution excellence and we intend to exploit all opportunities to improve efficiency including cost management, yield improvement and other strategic initiatives. Despite the tough first-quarter and continuing headwinds, our goal is still to deliver positive earnings growth in 2008.”

Freight revenues increased 10 per cent in the quarter, as global demand for bulk products remained solid, but the foreign exchange impact of a stronger Canadian dollar reduced this growth to three per cent. Grain, coal and sulphur and fertilizers all saw growth in the six to seven percent range. Industrial and consumer products increased 10 per cent over first-quarter 2007, built on a foundation of continued strength in Alberta. Intermodal revenues were also up four per cent. These gains were offset, in part, by decreases in forest products and automotive of 19 per cent and 12 per cent respectively, reflecting a weaker US economy.

Operating expenses in the quarter increased 13 per cent, but the positive foreign exchange impact of a stronger Canadian dollar reduced the increase to seven per cent. The majority of this increase was due to higher fuel costs and less efficient operations resulting from the challenging winter operating conditions.

“We faced a tough first quarter with substantial headwinds, and as we look to the balance of the year, we anticipate the continuing effects of a slowing North American economy on our business. Although demand remains strong for our bulk portfolio, we expect to see an impact on our intermodal business, and further deterioration of our merchandise business. We also expect high fuel prices, including the price of WTI and refining margins, will continue,” said Mike Lambert, CFO. “As a result, we are reducing our earnings guidance for 2008 and due to the ongoing economic uncertainty we are also widening the range of our guidance. We now expect that diluted earnings per share (before foreign exchange gains and losses on long-term debt and other specified items) will be in the range of $4.40 to $4.60, a change from $4.65 to $4.80.”

The 2008 estimate assumes an average currency exchange rate of the U.S. dollar at par with the Canadian dollar. Crude oil prices are expected to average US $98 per barrel, while crack spread is expected to increase an average of US $7 per barrel in 2008 compared with 2007 with an estimated all-in fuel price of US $3.35 per US gallon for the year. WTI is updated from US $87 per barrel.

CP expects to grow total revenue by four to six per cent in 2008, unchanged from previous assumptions as volume declines will be offset by fuel recovery. Total operating expenses are expected to increase by six to eight per cent, revised from the original assumption of three to five per cent due principally to higher fuel cost.

CP expects its tax rate to be in the 27 per cent to 29 per cent range, a change from the original outlook of 29 per cent to 31 per cent as a result of decreasing Canadian tax rates.

CP expects free cash to be approximately $200 million, adjusted downwards from the original outlook of in excess of $250 million in 2008, resulting from the expected decline in Operating Income.

The 2008 outlook includes the projected earnings of the Dakota Minnesota & Eastern Railroad (DM&E) on an equity accounting basis for the full year.

– PRNewswire-First Call