---

Railroad Newsline for Wednesday, January 31, 2007

Compiled by Larry W. Grant

In Memory of Rob Carlson, 1952 – 2006

---

---

RAIL NEWS

BNSF ISSUES WEEKLY PRB COAL UPDATE FOR JANUARY 30, 2007

PRB Train Loadings Exceed 50 per Day

Average BNSF Railway Company daily train loadings for the Powder River Basin (PRB), including Wyoming and Montana mines, totaled 51.6 trains per day the week ended January 28, 2007, as the flow of empty and loaded trains recovered from the effects of winter weather earlier in the month. Last week's average daily loadings were up 6.6 percent from the average of 48.4 trains per day loaded during the week ended January 29, 2006.

Year-to-date through January 28, 2007, BNSF has loaded a total daily average of 48.4 trains in the PRB, up 2 percent from the 47.4 trains loaded through the same period in 2006.

BNSF Announces $2.75 Billion Capital Commitment Program

On January 23, BNSF announced its planned $2.75 billion capital commitment program for 2007. BNSF anticipates investing over $750 million in track and facilities to expand capacity to meet unprecedented demand for consistent freight rail service.

Among the major coal capacity expansion programs, some extending into 2008, are the addition of about 60 miles of third and fourth main track on the PRB Joint Line and completion of about 50 miles of double track in Nebraska and Wyoming.

Coal customers also will benefit from construction of multiple sidings between Springfield, Missouri, and Birmingham, Alabama; additional sidings in South Dakota and Oklahoma; and from fueling and mechanical facilities in North Dakota, Illinois and Texas.

Construction Projects Update

Track laying for three additional yard tracks at the Donkey Creek Yard near Rozet, Wyoming, was completed last week, and installation of turnouts has begun. The three new tracks are scheduled to go into service in March after all turnouts are installed and the track is surfaced.

Grading has begun for 21 miles of fourth main track at Logan Hill on the PRB Joint Line. The additional trackage is scheduled to go into service by the end of this year. - BNSF Service Advisory

---

UNION PACIFIC ELECTS PRESIDENT AND CEO JAMES R. YOUNG CHAIRMAN OF THE BOARD

OMAHA, NE -- Union Pacific Corporation (NYSE: UNP) today elected James R. Young, its president and chief executive officer, to the additional post of chairman of its board of directors, effective February 1, 2007. A 29-year veteran with the railroad, Young has held a variety of professional, managerial, and senior management positions, including Chief Financial Officer. He was elected president and chief operating officer of Union Pacific Railroad in January 2004, and chief executive officer of Union Pacific Corporation effective Jan. 1, 2006.

In naming Young to his new position, the board also paid tribute to retiring Chairman Dick Davidson. After a 47-year career that took him from brakeman to chairman of the nation's largest railroad corporation, Davidson is retiring effective Jan. 31, 2007.

"Dick's retirement marks the end of a long and successful career," said Young. We all owe Dick a huge debt of gratitude for his leadership and vision in helping create today's Union Pacific. We wish him a long, healthy and happy retirement, which is very well deserved."

Davidson's career parallels a period of great technological and economical advancement in the nation's railroad industry. When Davidson began his railroad career in 1960, radios were just coming into use. Today, technology has revolutionized every aspect of the industry, from track and locomotive maintenance to train-control systems - helping boost safety and quality while improving productivity.

Davidson was a manager in the Operating Department when partial de-regulation took place in 1980, and he played a role in the subsequent consolidations and mergers that made Union Pacific the nation's largest railroad. During his 10 years as chairman of the corporation, Davidson helped launch unprecedented quality control and construction projects to handle growing shipping volume - and built a foundation for Union Pacific's future growth. - Kathryn Blackwell, UP News Release

---

S&P: KANSAS CITY SOUTHERN ON CREDITWATCH

Standard & Poor's Ratings Services said Tuesday it placed most of its ratings on railroad Kansas City Southern, including its 'B' junk corporate credit rating, on CreditWatch with negative implications.

S&P said its 'D' rating on KSU's preferred stock is not on CreditWatch.

The ratings agency said the CreditWatch placement follows the railroad company's announcement that it is seeking to change certain rules related to its 9.5 percent notes due 2008 and 7.5 percent notes due 2009, as well as to waive defaults.

The consent solicitation expires on Feb. 9, but Kansas City Southern is offering special incentives for consents to be delivered by Feb. 5.

"If Kansas City Southern fails to get the consent solicitations needed to resolve the defaults, ratings could be lowered," said Standard & Poor's credit analyst Lisa Jenkins.

Standard & Poor's said it believes the company also is in default under its bank agreement as a result of this situation.

"While we do not expect the banks or bondholders to demand immediate repayment of their loans, Kansas City Southern will likely be precluded from borrowing additional amounts until the matter is resolved," Jenkins added. "We will continue to monitor the situation and take rating actions as required."

The agency said that if Kansas City Southern cures its defaults, its ratings will be removed from CreditWatch.

Kansas City Southern is a U.S.-based freight railroad company that also has extensive operations in Mexico. Shares rose 5 cents to $29.44 in morning trading on the NYSE. - The Associated Press, Forbes

---

AT LEAST 14 INJURED AS TRAIN HITS BUS IN DEER PARK, TEXAS

DEER PARK, TX -- A train crashed into a bus loaded with contract workers at Shell Oil Co.'s Deer Park plant Tuesday, sending about a dozen people to area hospitals with unspecified injuries, officials said.

The school-type bus carried more than 30 workers and was struck by the train on its left rear side as the bus crossed tracks inside the plant about a half mile from Texas 225 near Center Road, Shell spokesman Dave McKinney said. The crash occurred at 07:40.

Shell spokeswoman Emily Oberton said she was not sure what, if any, warning devices were in place at the crossing.

Early reports by a spokesman for the Houston Fire Department, which dispatched ambulances to the scene, put the number of people transported to hospitals at 14.

The workers on the bus -- just a few dozen of the 3,000 contract workers Shell officials said are involved in maintenance and updating operations at the huge plant -- were being transported to workplaces from satellite parking areas when the crash occurred, Oberton said.

The bus driver also is a contract employee, Oberton said.

The train that struck the bus is part of the Port Terminal Rail Authority, Oberton said. No information on the train's size or cargo was immediately available.

The accident did not cause any releases of chemicals or oil products, Oberton said.

The bus's passengers were being medically evaluated inside the plant and it was unclear late this morning whether more workers would be taken to hospitals. Ambulances were standing by.

Three Houston Fire Department ambulances were dispatched to the scene, along another paramedic unit and a supervisor, assistant chief Jack Williams said.

Besides Shell company officials, the accident will be investigated by the National Transportation Safety Board and federal Occupational Safety and Health Administration. - Kevin Moran and Ruth Rendon, The Houston Chronicle

---

RAILROAD PLANS TO IMPROVE TRACKS

BILLINGS, MT -- The BNSF Railway Company announced Monday that it intends to spend $54.4 million in capital improvements across Montana this year.

Company spokesman Gus Melonas also said the company plans to hire an additional 106 people to work its Montana operations during 2007.

"BNSF presence across Montana is stronger than ever," he said in a telephone interview from his office in Seattle. "We've been moving record volumes of freight."

The lion's share of expenditures this year will be for track improvements. The railroad plans to replace tens of thousands of ties during construction season, which begins in March and ends in November.

Local gangs and six regional gangs of 35 to 45 people will work at sites across the state. Another 300 people will be working with high-tech equipment to get the job done, he said.

The largest project will be along the Hi-Line, where more than 65,000 new wooden ties will be installed, including 52,000 on track in Valley County west of Glasgow. Other major projects will include replacing 37,000 ties near Wibaux and in Dawson County, 13,000 between Billings and Huntley and 5,516 between Laurel and the Wyoming line.

In Glacier National Park, 10,000 concrete ties will be installed and a snow shed will be stabilized.

Also included in the budget are track surfacing and work on bridges.

"Another key component in meeting increased customer demand is a strong work force," Melonas said.

BNSF plans to hire seven mechanical workers, 51 engineering and technical employees, 35 train crew members and 12 signal employees, he said.

BNSF capital spending on track this year is down slightly from 2006. Melonas said BNSF budgeted $55.7 million for Montana capital projects last year. - The Billings Gazette

---

UP DROPS REQUEST TO WAIVE INSPECTION

Union Pacific Railroad has withdrawn a request to run trains from inside Mexico up to 1,500 miles into the United States without stopping for a mechanical inspection.

The Omaha-based railroad withdrew its request in a phone call to the Federal Railroad Administration late last week because the issue had drawn negative public reaction, a spokesman said.

"It has become a bad climate to pursue this, so we're just not going to pursue it," said spokesman Joe Arbona, who is based in Spring, Texas.

The Federal Railroad Administration has canceled a public hearing that had been scheduled for Feb. 7 in Laredo, Texas. The railroad might someday resubmit the request, Arbona said.

The FRA first rejected the request in 2004.

For now at least, U.P. trains will continue to be inspected both in Nuevo Laredo, Mexico, and across the border in Laredo, where Arbona said trains often are slowed by congestion and road crossings. With the Laredo inspections, trains can be forced to stop for up to seven hours, he said.

Arbona gave no estimate of the cost impact of the Laredo inspections.

"Cost was not an issue here at all," he said. "You've got a congestion problem that the folks in Laredo have had to deal with and we've had to deal with. You've got a redundant test, and we believed the waiver could have helped relieve the congestion."

Relieving congestion wasn't enough of an advantage to outweigh what the United Transportation Union perceived as safety risks associated with the proposal, spokesman Frank Wilner said.

"It had to do entirely with public safety and national security," Wilner said. "Nuevo Laredo is a lawless town . . . with no assurances that whatever was done in Mexico would adhere with FRA regulations. It's a town beset by drug violence in a country where it's said with enough money you can buy anything or corrupt anyone."

The union provided comment to the FRA opposing the plan, along with about three dozen other individuals and organizations. Among them were U.S. Reps. Ed Pastor, D-Ariz., and Charles A. Gonzalez, D-Texas; state lawmakers from Texas, Ohio, Arkansas, Colorado, Missouri and Oklahoma; a Mexican organization named Here We Are; locally elected officials from several states; and a Brotherhood of Locomotive Engineers and Trainmen official.

Letters of support came from U.P.'s partner railroad in Mexico, Kansas City Southern de Mexico, and a California-based intermodal company.

Arbona said the Mexican inspections would have been done according to FRA standards, adding that he thought the criticism was directed at Mexican workers.

"The implication that Mexican workers are in any way lesser than workers who do these inspections in the U.S. and Canada is not fair," he said. "I've met with them, and they are hard-working people who try to achieve high standards. The attacks are not fair."

Wilner said railroad inspectors in the United States are more familiar with federal safety requirements.

"Trained inspectors on U.S. railroads are as familiar with railroad equipment as the back of their hands, and they serve as a first line of defense," he said. "The inspections would have been done in Mexico and then, other than Customs and Immigration looking at the train at the border, there would not be a mechanical and safety inspection of all the components of that train for another 1,500 miles."

Arbona said U.P.'s request was to waive inspections for a single intermodal train per day carrying auto parts. Eventually, the railroad would have asked the FRA to expand the waiver to more of the 24 north- and southbound trains that move through the Laredo gateway, interchanging with Kansas City Southern de Mexico.

None of the trains would have carried hazardous materials, Arbona said.

Some of the comments filed with the FRA opposing U.P.'s plan mentioned concerns about national security. However, the FRA said in 2004, when it rejected U.P.'s first request, that it found no merit in the suggestion that the waiver would compromise national security. - Stacie Hamel, The Omaha World-Herald

---

RAILROAD OFFICIALS THINK VANDALS CAUSED DERAILMENT

YANTLEY, AL -- A freight train parked at the Concord Road crossing on the Meridian and Bigbee's line in Yantley unexpectedly began to move in the predawn hours Sunday, rolling more than a mile and a half down the tracks where it collided with another set of parked rail cars across County Road 1 near the intersection of Watermelon Drive.

An M&B spokesman in Meridian, Mississippi told the Sun on Monday that because the brakes were properly set on the train, the company suspects foul play.

An investigation involving the Federal Railroad Administration and other agencies was ongoing Monday afternoon.

The incident occurred sometime between 03:00 and 05:30 Sunday.

The two-engine train was pulling about 97 cars, according to Bill Gibson, Director of Choctaw County's Emergency Management Agency. Several boxcars loaded with new kitchen appliances sustained heavy damage, Gibson said.

An M&B spokesman said a total of six cars derailed.

"It was a mess, but we are thankful that there were no injuries and no hazardous materials were involved," Gibson said.

The company suspects vandalism may have been involved in Sunday's incident, and a spokesman asked that anyone who saw any suspicious persons or vehicles in the area about that time to contact Choctaw Co. Sheriff James Lovette at (205) 459-2166 or EMA Director Bill Gibson at (205) 459-2153.

Yantley is in northwestern Choctaw County about a mile from the Lauderdale Co., Mississippi, line.

M&B Railroad is owned by Genessee and Wyoming, Inc., a provider of rail-freight transportation and its supporting services in the United States, Canada, Mexico, South America and Australia. - Tommy Campbell, The Choctaw Sun, The Meridian Star

---

CANADIAN PACIFIC RAIL 4Q PROFIT RISES

NEW YORK, NY -- Railroad operator Canadian Pacific Railway Ltd. on Tuesday said its fourth-quarter profit rose 6 percent, as a more diversified freight portfolio overcame a drop in coal revenues.

Quarterly earnings increased to 145.6 million Canadian dollars ($124.9 million), or 92 Canadian cents (79 cents) per share, from 137.1 million Canadian dollars, or 86 Canadian cents per share, during the same period in 2005.

The results included a loss of 45 million Canadian dollars ($38.6 million) related to foreign currency exchange, as well as losses on long-term debt and other special items. Excluding special items, the Calgary, Alberta-based railroad said it earned 1.15 Canadian dollars (99 cents) per share in the quarter.

Analysts polled by Thomson Financial forecast a profit of 1.16 Canadian dollars ($1) per share. Thomson estimates usually exclude special items.

Revenue improved 2 percent to 1.15 billion Canadian dollars ($988.1 million) from 1.12 billion Canadian dollars during the same period a year earlier. Analysts expected revenue of 1.21 billion Canadian dollars ($1.03 billion).

The railroad cited particular strength in sulfur and fertilizer revenue, which gained 19 percent to 122 million Canadian dollars ($104.7 million) from 102 million Canadian dollars during the same period a year earlier. Revenue from its intermodal business, which involves transferring freight among different types of transportation, such as loading shipping containers on rail cars for final delivery, improved 11 percent to 324 million Canadian dollars ($278 million) from 312.6 million Canadian dollars.

Revenue from coal freight fell 29 percent to 149.3 million Canadian dollars ($128.1 million) from 178.6 million Canadian dollars. The company also reported revenue shortfalls in automotive and forest products, which reflects slowdowns in vehicle production and residential construction in North America.

Annual earnings improved 47 percent to 796.3 million Canadian dollars ($683.3 million), or 5.02 Canadian dollars ($4.31) per share, from 543 million Canadian dollars, or 3.39 Canadian dollars per share, in 2005. The results included a tax benefit of 176 million Canadian dollars ($151 million), as well as losses on long-term debt and other special items. Excluding those items, the railroad said it earned 3.95 Canadian dollars ($3.39) per share in 2006.

Revenue rose 4 percent to 4.43 billion Canadian dollars ($3.8 billion) from 4.27 billion Canadian dollars.

In early New York Stock Exchange trading, Canadian Pacific Railway shares fell 69 cents to $53.54. - The Associated Press, The Houston Chronicle

---

TAKE A RIDE ON THE TRAILS OF THE KPR

PUHI, HI -- "Where's the train?" a delivery driver wanted to know as he slowed while Greg Ransone made adjustments on the railroad crossing barrier at the Kilohana Estates.

Kaua'i Plantation Railway started offering tours aboard its locomotive system yesterday with the first carload rolling out of the train depot at 10:00.

Terri Goo, described as the "hub" of the railway operation, said for the month of February, KPR will be offering tours on the hour between 10:00 and 14:00.

"We ask that passengers arrive at least 45 minutes before departure," Goo said. "There is a safety briefing they need to hear, and following that, on a good day, there're lots of things to do and see."

Passengers on the KPR tour start and end at the train depot, a converted guest house on the Kilohana estate.

"We have more than 20 Kaua'i vendors represented here," Goo said. "And, we're just starting up. We have The Home Depot, now we'll have 'The Train Depot.'"

Boone Morrison, superintendent of the Kaua'i Plantation Railway, said there are two diesel locomotives and four cars, a picnic coach and three closed coaches, that make up the initial system.

The first diesel locomotive is the smaller of the pair, Morrison said. The 1939-built Whitcomb is a 20-ton locomotive and representative of the first of three generations of diesel locomotives that were used by the sugar plantations.

A No. 20 General Electric is rated at 25 tons and was built in 1948. "This engine represents the second generation of locomotives," Morrison said.

Morrison pointed out the two engines are end-cab designed, meaning the cab is located at the end of the engine compartment.

The third, and final, generation of diesel locomotives featured a center cab design where the engineer's cab was located in the middle of the engine.

Morrison said his affiliation with Kaua'i Plantation Railway started about five years ago when he got into a conversation with Fred Atkins.

"In May, it'll be five years since we first started talking," Morrison said. "But in that time, we've been working on this project a little at a time."

"You get so focused on whatever project is in front of you, that sometimes you don't realize how much you've done," Morrison said. "Sunday night, I had to step back, and when I looked at everything, it was like 'whoa' what have we done."

Morrison's experience with railroads dates back to when he was a child.

"I love trains," he said. "I'm an architect by trade, but I've been a railroader since I was a kid."

Morrison said he's had experience working with excursion and museum railroad before running into Atkins.

"Railroaders are a funny bunch," Morrison said. "It's kind of like a brotherhood where we talk to each other. We might not have all the answers to some of the situations that come up, but we know the people who have the answers."

In addition to the two diesel locomotives that are dispatched by Goo once the passenger list is compiled, Morrison said there are four passenger cars -- an open picnic coach and three closed coaches.

"These cars are all named after rivers on Kaua'i," Morrison said, pointing out Hanalei, a closed coach, and Wainiha, the picnic coach.

Additionally, Morrison said they have two flat cars that can be converted into coach cars if the need arises.

The chassis for the railcars were originally built in 1941 for the United States Navy for use at Pearl Harbor, Morrison said. When the cars were discontinued, Yukon Pacific purchased the cars from the Navy, and Kilohana purchased them from Yukon Pacific in Alaska.

Once acquired, the coach cars were manufactured to fit the chassis in the Philippines, Morrison said.

"The conductor also does the narration and there is a sound system that connects the cars," Morrison said. "Passengers are treated to a trip that covers approximately three miles in 35 minutes."

In addition to Morrison, the KPR staff includes Pepe Trask who is in charge of the passengers and sales.

Terri Goo is the "hub" of the operation as she fields calls on the radio, manages the Train Depot gift shop and sells tickets.

"She has her finger on what is happening with the railway at any given time," Morrison said. "She is the hub."

Judy Goo is also the retail manager and staff members include Linda Kanahele, Peaches Lum and Wailana Rego.

"When we start rolling, we'll have two operating railroads on the island," Morrison said. "There's no other island that can claim that. We are the railroad capitol of Hawai'i."

The second railroad is operated and maintained by the Grove Farm Homestead Museum. - Dennis Fujimoto, The Garden Island News

---

COMMUNITIES LOOK TO QUITE TRAINS: TOOT-TOOT NOT SO FUN ANYMORE

STEILACOOM, WA -- A freight train thundered through Steilacoom, Washington, one of several dozen this day, its horn noise penetrating the residential hillside of the state's oldest town.

"It drives me nuts," said Heather Thomas, a 35-year resident. "In the daytime, it's OK. At night, when you want to have some peace, or really early, 5 or 6 a.m., it's not good. It's just gotten a lot worse."

Others in the historic town of 6,200 people also have tired of the horns. Increasing train traffic to the Port of Tacoma means more noise that wakes them at night, interrupts their conversations and makes their ears hurt.

They're asking community leaders for relief.

Steilacoom doesn't have to look far to find a potential solution. An automated wayside horn, mounted at a railroad crossing in Tacoma, is winning praise from some neighbors.
Last May, Tacoma was the first in the state to install a fixed horn. It is located at a rail crossing on McCarver Street near the intersection with Ruston Way.

The owners of the nearby Silver Cloud Inn paid most of the $100,000 cost. The city spent about $20,000, said Steve Shanafelt, manager of Tacoma's public works engineering division.

The wayside horn has ended noise complaints and requests for earplugs at the hotel overlooking Commencement Bay.

"Oh, my gosh, yes," said Silver Cloud front office manager Travis Simpson. "One of our guests asked how many trains had gone by (overnight). He didn't hear one."

The horn is not universally popular. A petition to remove it circulated in Old Town about a year ago because some people in the way of the horn don't like being hit by a concentrated blast of sound, said Ron Karabaich, owner of Old Town Photo & Framing.

Other communities, including Sumner, Puyallup, Auburn and Kent, have looked into wayside horns or other ways of quieting trains.

But critics point out that there's a trade off between more silence and safety. Heavy trains cannot stop quickly, so engineers activate loud horns to alert drivers and other passersby, giving them a chance to get out of the way.

"It's part of a choice to live near the tracks," said Becky Morris, a five-year Steilacoom resident who lives a third of a mile away. "Safety's a big issue. A life is more important than it being too noisy."

Two crossings, twice the noise

Steilacoom has two railroad crossings, so horn blowing continues nearly all the way through the small town. One crossing is at the Union Avenue ferry terminal. The other is for pedestrians only at Sunnyside Beach Park.

Sometimes two trains pass through at once - one heading north, the other south. Both blow their horns.

Residents say they weren't as bothered when only 20 trains came through in 24 hours. But now there are at least 60 freight and passenger trains per day.

Mayor Ron Lucas said the Port of Tacoma told him that growing Asian trade will increase traffic even further over the next five to 10 years, as containers are unloaded from ships and sent by rail to Midwest and East Coast destinations.

It was an overcast, cold day earlier this month when town officials tested a wayside horn. More than a dozen residents and officials stood by, hands in pockets, and listened to 25 seconds of the test blast nearby.

Later, some walked several blocks away and listened again.

"It's a whole lot better," said Thomas, who has lived about 40 feet from the tracks for 26 years.
Linda Evanson, a Steilacoom resident since 1971, brought Ella, her black Labrador retriever puppy, to the demonstration. She said the fixed horn was "much nicer" than the rolling train horns.

Even though she's gotten used to the racket over the years, Evanson said a blast from a passing freight still stops all conversation in her yard.

While the wayside horn noise was the same as a moving train's horn - about 96 to 110 decibels - it sounded much quieter.

Noise from a moving train can spread over 31 acres, while the wayside horn, specifically directed at drivers or people at static crossings, spreads only an acre, said Robert Albritton, a sales manager for Railroad Controls Limited. His company wants to sell wayside horns to Steilacoom.

Engineers still in control

But a wayside horn only eliminates routine train horns from sounding at public crossings.
Engineers can still blow them spontaneously any time they spot hazards such as people or vehicles too close to the tracks.

Lucas said five people have been killed by trains in Steilacoom in the past 20 years.

Later in the day, the Steilacoom Town Council heard Albritton talk about the wayside horns and other alternatives, such as establishing a quiet zone in town. More than 50 people attended the discussion on noise problems and safety.

A quiet zone, where trains don't blow horns while approaching crossings, requires upgrades to crossings, including various kinds of gates and lights, according to the Federal Railroad Administration.

Albritton and city officials estimated that improved gates for a quiet zone in Steilacoom could cost up to $500,000.

A wayside horn could cost the town at least $75,000 per crossing.

Lucas said if the town can find the money and the council approves the fixed horns or another alternative, it could take up to 18 months to get something done.

"I plead with the council," said resident Marcia Batchelor, "noise abatement, please."

The town meeting erupted in loud applause. - Rob Tucker, The Tacoma News Tribune

---

HIGH-SPEED RAIL PROJECT SEES DRASTIC CUT IN FUNDS

SACRAMENTO, CA -- California's perpetually delayed high-speed rail project faces yet another funding setback. And this one could be fatal, dashing the dreams of bullet-train enthusiasts, including many in California's Central Valley.

Gov. Arnold Schwarzenegger proposes slashing funding for the High Speed Rail Authority from $14 million to $1.2 million, leaving the group with just enough to keep its doors open.

"There's really no public purpose for me and my staff to be in office unless you want to move forward with the project," said Mehdi Morshed, the authority's executive director, who wants the governor and lawmakers to approve $103 million for the project next year. "If you don't want to move forward with the project, then close it down and save yourself some money."

With his focus on road building, the governor also wants the Legislature to indefinitely delay a $9.95 billion rail bond slated for the 2008 ballot.

That would clear the way for $29 billion in bonds the governor wants to put on the ballot to pay for courthouses, schools and dams -- the second phase of his "strategic growth plan" that will spend billions on roads but nothing on high-speed rail.

The electric-powered railroad would be similar to the bullet trains prevalent in Europe and other parts of the world.

Trains traveling up to 220 mph would speed the length of the state, zooming through the Central Valley with stops in Bakersfield, Fresno, Merced, Modesto, Stockton and Sacramento. An express trip from San Francisco to Los Angeles would take just less than 2-1/2 hours.

Construction costs are estimated to approach $40 billion. But Morshed said the longer the state waits, the more expensive it will get.

Tracks dedicated to the system for the most part would be built next to existing tracks. More than 1,000 grade crossings -- where the railroad goes under or over roads -- are needed.

To build the crossings, the authority needs to secure rights of way. But that gets harder and more expensive each passing year, especially in high-growth areas like the Central Valley, where land is getting sucked up for other uses, Morshed said.

Next year, he said, $40 million is needed to start buying rights of way and $63 million is needed for planning and engineering.

Established in 1996, the authority has spent about $30 million so far to plan the route and do environmental reviews, Morshed said.

The authority's budget has $702,000 for salaries and benefits this year. Three full-time employees and one part-timer are on staff, with plans to hire three more full-time staff members in the next month.

All that money would be wasted if the project were halted, board members said Monday.

To date, the Legislature has shown little enthusiasm for the project. Rail bond ballot measures have been delayed twice, in 2004 and 2006. - E. J. Schultz, The Fresno Bee, The Contra Costa Times

---

TRAINS MAY RUN SILENTLY THROUGH CITY NEXT YEAR

ARLINGTON, TX -- Residents near the Union Pacific railroad that cuts through Arlington, Texas could soon hear less of the train horn blasts that disturb them at all hours.

City officials said at a town hall meeting Monday that they expect approval from the rail company as early as April for plans that would create "quiet zones" at rail crossings between Bowen Road and the Great Southwest Industrial District in eastern Arlington. If the zones are approved, trains could pass silently through this stretch of the city by early next year. The Bowen Road crossing will be the first to be converted, Councilwoman Kathryn Wilemon told about 50 residents who attended the meeting.

"If we can still be safe but eliminate the sound we have the best of both worlds," said Wilemon, who said she often hears trains pass near her west Arlington home at 04:00.

Interest in quiet zones increased after a law was passed in 2005 requiring locomotives to sound their horns at all highway and railroad crossings.

Fort Worth, which has created three quiet zones since 2002, is working to add three more this year, a city official said. A regional effort is also under way to establish zones at 15 rail crossings along U.S. 377 in Fort Worth and Northeast Tarrant County, where about 26 trains pass each day.

How quiet zones work: Rail companies must approve requests for quiet zones. In exchange, cities agree to install additional safety features at crossings such as flashing lights, tall medians to prevent motorists from driving around gate arms or a set of four gate arms to block all lanes at a crossing. Arlington plans to install medians at most of its crossings.

At Great Southwest Parkway and Avenue E, the city also plans to install wayside horns, which play a train horn sound when a train is passing through. The wayside horn is about 95 decibels, as loud as a lawnmower, and its sound is directed at motorists in the intersection. An actual train horn is about 110 decibels, about as loud as a live rock concert, and can be heard over a wider area.

How much quiet zones cost: Arlington's project was originally estimated to cost $1,023,700. The city has received $800,000 from the federal government and earmarked about $200,000 to match it, Public Works Director Bob Lowry said. The cost is expected to increase about $300,000 because of additional equipment required for crossings at Center and Mesquite streets. - Susan Schrock, The Fort Worth Star-Telegram

---

BEXARMET APPROVES SALE FOR UP RAIL PORT

SAN ANTONIO, TX -- The board of the Bexar Metropolitan Water District approved the sale of 11 acres near the Medina River to Union Pacific Railroad late Monday as part of the rail company's new rail port in Southwest Bexar County, Texas.

The sale has been under negotiation for some time, said BexarMet General Manager Gil Olivares, who was authorized by the board at its regular monthly meeting to sign the paperwork closing the deal. Olivares would not reveal the sale price until the papers are signed.

The new $90 million, 300-acre port will handle rail cars and tractor-trailers with household goods and other items, including parts for the Toyota plant, railroad officials have said.

Olivares said part of the holdup in negotiating the sale of BexarMet's land was gaining assurances that no hazardous materials would be handled on the land, which lies next to the river and the utility's water treatment plant. - The San Antonio Express News

---

RAIL-TO-TRAIL PLAN SPARKS OVER EASTSIDE LINE

Photo here: [seattletimes.nwsource.com]

Caption reads: A BNSF Railway locomotive delivers a rail car to a freight yard near Interstate 405 in Bellevue. (Mark Harrison/The Seattle Times)

Photo here: [seattletimes.nwsource.com]

Caption reads: A BNSF Railway locomotive pulls a car through Bellevue on tracks near Interstate 405. (Mark Harrison/The Seattle Times)

Map here: [seattletimes.nwsource.com]

SEATTLE, WA -- The BNSF Railway's Renton-to-Snohomish line is in bad shape.

Only one track runs along most of the 42-mile corridor.

Its sharp curves, street crossings and deteriorating tracks force trains to keep speeds low - no more than 10 to 30 mph.

When the railway diverted freight trains to the local line after a 1997 storm washed out parts of the main line along Puget Sound, one train derailed.

King County Executive Ron Sims' effort to acquire the Eastside line for a walking and biking trail has sparked debate over whether the old rails are worthless and should be torn up.

While Sims, a born-again bicyclist, says the trail eventually could be paired with passenger trains on new tracks, some critics want to keep the existing line.

Protesters from the rail-advocacy group All Aboard Washington showed up at a committee meeting of the Puget Sound Regional Council (PSRC) this month to say the existing line should be retained as the first step toward building a modern passenger and freight-rail corridor.

The PSRC advisory committee instead endorsed Sims' plan for a biking and hiking trail, which could allow BNSF Railway to tear out the old rails. The committee also said the corridor should be preserved for possible future rail transit in a "rails with trails" arrangement.

PSRC strategic-policy adviser King Cushman dismisses the idea of using the old tracks for high-capacity passenger trains. "To be honest," he says, "you could ride a bicycle faster than you could take that train."

Railroad and national-parks historian Al Runte, an All Aboard Washington member who calls the Eastside rail line "the railroad equivalent of Interstate 405," says trail advocates are exaggerating the difficulty of fixing up the line for freight and commuter trains.

Metropolitan King County Councilman Larry Phillips wants to see passenger rail developed in the near future, warning that Sims' "trails first" approach might make it impossible to bring back rail later.

"I think of trying to convert the Burke-Gilman Trail back into a rail line," Phillips says. "Politically, it won't go."

If the county acquires the rail line, Phillips says, high-capacity transit and possibly freight trains should run beside the trail "from the get-go."

"It's an irreplaceable transportation corridor," he says.

BNSF told the state in 2003 it wanted to sell the line, and King County paid for exclusive bargaining rights in 2005. If the county and the railway can't reach an agreement, BNSF could sell off the corridor piecemeal.

But Sims' plan to acquire the rail line hinges on a complex deal in which the Port of Seattle would buy the property and trade it to the county in exchange for the county-owned airport, Boeing Field.

BNSF and the Port also want the deal to include development of a 500- to 1,000-acre truck-to-train freight yard somewhere between Seattle and Tacoma where shipping containers would move between trucks and trains. (The 42-mile-long rail corridor has sometimes been described as 47 miles long, a figure that includes the length of double tracks on a portion of the corridor.)

Fewer than 10 industrial customers still use the Eastside rail line, most of them from Woodinville north. Spirit of Washington Dinner Train owner Eric Temple hopes to move to a Snohomish-to-Woodinville route when the Renton-to-Woodinville line closes in July for Interstate 405 construction.

The PSRC's Cushman says raising the height of the Stampede Pass tunnel to carry double-stack trains through the Cascade Mountains would do more to improve regional freight movement than upgrading the Renton-to-Snohomish line.

Upgrading the Eastside line to handle freight trains and passenger trains at higher speeds on a double set of tracks could cost "several hundred million dollars," Cushman says. It also would mean shutting down busy Northeast Eighth Street east of downtown Bellevue and Northeast 124th Street in Totem Lake each time a train rumbled through.

The best way to accommodate a trail and transit on the same route would be to elevate a new two-way track like Sound Transit's rail line under construction along Interstate 5 and Highway 518 near Seattle-Tacoma International Airport, Cushman says. That would be costly, though - at least $150 million per mile, according to PSRC estimates.

The existing line, far from being the rail equivalent of I-405, is actually "the rail equivalent of a one-lane country road filled with potholes," says Sims' chief of staff, Kurt Triplett. "It's a one-track, dilapidated rail line."

A north-south rail-transit line east of Lake Washington isn't in the plans of the state Department of Transportation or Sound Transit for at least 20 years, if ever. In the meantime, those agencies will rely on "bus rapid transit" using HOV lanes and direct-access entrances and exits on I-405.

If voters approve Sound Transit's Phase 2 plan in November, it would raise the agency's share of the sales tax to the maximum state law allows - nine-tenths of 1 percent - to extend light rail from Seattle to Bellevue and the Overlake area.

Sound Transit's long-range plan calls for "potential rail extensions" from Burien and Renton up to Bothell and Lynnwood sometime after 2027. Although plans show the rail line generally following I-405 on the Eastside, no route has been picked.

Because the BNSF line bypasses downtown Bellevue and doesn't go to Bothell or Lynnwood at all, Sound Transit planners say it's not clear it would make a good light-rail route.

To Phillips' plea to build light rail immediately, his County Council colleague Julia Patterson, who chairs the PSRC advisory committee, asks: "If there was somebody who wanted to put high-capacity transit in there today, bring them on. Where are they?"

Sims says there's another problem with acquiring the rail line for the purpose of operating trains of any kind: It could raise the price of the corridor four to five times higher.

That shouldn't be a deal-killer, says rail promoter Runte: "Let's say (BNSF) says it wants $500 million for this corridor: It's still cheap at that price. At a billion dollars, it's a cheap price for the use." - Keith Ervin, The Seattle Times

---

TRANSIT NEWS

CHASTAIN THREATENS LEGAL ACTION LIGHT-RAIL PLAN

KANSAS CITY, MO -- Light-rail activist Clay Chastain's wife, a licensed lawyer, said Tuesday that she will take legal action if the city significantly changes or sits on the plan voters approved in November.

Valerie Chastain said in a release Tuesday that Kansas City's new mayor and new City Council can expect a legal challenge if they "delay implementing the voter-approved light rail plan by attempting to either repeal it or amend it significantly and resubmit it to the voters."

In the release, Valerie Chastain, who is providing legal representation for Clay Chastain and the committee of petitioners for the light-rail initiative voters approved in November, said she also will take legal action if the new City Council "sits on the initiative and takes no action to begin implementing it in a timely fashion."

Valerie Chastain couldn't immediately be reached for comment. A call to the city attorney's office was referred to city spokeswoman Mary Charles, who couldn't immediately be reached for comment.

On Jan. 18, the City Council heard reports from transportation experts who said the light-rail plan faces several legal and legislative hurdles. - The Kansas City Business Journal

---

ALBUQUERQUE MAYOR TOUTS SUSTAINABLE GROWTH

ALBUQUERQUE, NM -- "Sustainability" will be the key word at city hall over the next two or three years, says Mayor Marty Chavez.

"We need to sustain this marvelous economy in a way that's respectful of the natural environment," he told the members of the National Association of Industrial and Office Properties (NAIOP) in his state of the city report Monday.

"When we look back 10 to 15 years from now, we'll say 'these were the best of times' and you're a big part of it," Chavez said. He credited the private sector with creating wealth and jobs, which helped the city snag a No. 1 ranking for business from Forbes Magazine last year.

Chavez reviewed the economic good news over the last year, such as Verizon Wireless taking over a defunct building once slated to be a Kmart on the city's West Side and the opening of the new Tempurpedic mattress factory. Both are significant because they are creating jobs on the West side, reversing the trend of people commuting east across the Rio Grande from their homes for work. Projects such as these take pressure off the city's infrastructure, Chavez says.

He also pointed to the entry of Convergys into the market right after AOL announced it was closing its Albuquerque call center. Convergys took over the same facility with another call center.

Chavez proclaimed himself a pro-growth mayor during the speech.

"It's important to grow Albuquerque so our kids and their kids have jobs in the future," he said, which brought enthusiastic applause from the real estate audience.

He added, however, that the city must grow sustainably. He spoke forcefully for his proposed light rail system, which failed in the city council last year. This was not some kind of toy trolley for tourists, Chavez said. Albuquerque is the only big city in the West that does not have or is not planning a light rail system, he added.

"The reality of this city is that it is the engine that drives the (state) economy. We can't grow based on single occupancy vehicles," he said.

Chavez applauded the successes of the film industry over the last year, with the construction of Albuquerque Studios, where he says there will be big announcement in coming weeks regarding new technologies coming to the city. He also thanked the state for offering generous incentives to attract film productions-- since it allowed him to meet Charlize Theron, who is in town shooting a film with Tommy Lee Jones.

Chavez applauded the city's improved crime statistics, with homicides dropping by 32 percent last year, he said, and alcohol-related accidents down by 34 percent to 436. But he noted that vehicle thefts, particularly of trucks, are skyrocketing. This is driven by methamphetamine use, Chavez said, and the courts that hear these theft cases need to see that bigger picture.

While he claims Albuquerque has driven out most of the meth labs in the city, they are locating in surrounding communities, he said. - New Mexico Business Weekly

---

WINEKE: ELECTRIC LINES NOT PRETTY ON A TROLLEY OR RURAL LAND

MADISON, WI -- I'm having a little trouble understanding where Madison, Wisconsin Mayor Dave Cieslewicz stands on power lines.

Last summer, he was in the headlines opposing plans by the American Transmission Co. to build a high-power electric transmission line from Rockdale to Middleton. Specifically, the mayor wants ATC to avoid running the line along the Beltline.

Last week, however, the mayor said he wants the city to hold a binding referendum on plans to build a trolley system in the city, though he didn't say when such a referendum might be held.

Actually, the mayor has appointed a committee to make recommendations - but he has long dreamed of returning streetcars to the city as a means of easing parking and traffic congestion and curbing pollution.

Here's my question: Just how would those trolleys be powered?

Any trolley system I've encountered is powered by overhead electric lines - ugly overhead electric lines. Trolleys are cool and they're fun to ride, but the system that makes them run is, to me, an eyesore.

I suppose you could have a system that doesn't run on overhead electric lines. You could have a trolley powered by, say, a diesel motor - but we usually call those "buses."

So why are electric lines a bad idea when they run down the Beltline - surely not Madison's garden parkway to begin with - but OK when they cover Madison's streets?

You might think I don't have a right to comment on this since I live south of Stoughton. Of course, I do have a dog in this fight. If ATC doesn't build the transmission line along the Beltline, it will likely choose a route that takes it within a couple of blocks of my house.

To be honest, given the locations involved, I doubt I would even notice the new line - but some of my neighbors sure would and they think an ugly transmission line doesn't become more beautiful just because it's in a rural area.

To be fair to the mayor, he really has suggested ATC not build any new line, but rather make the existing lines work more efficiently and encourage us wastrels to use less electricity.

Frankly, I think those suggestions have about as much chance of being enacted as the trolley system does of being built.

It might be nice if we could change human nature and convince people to economize on convenience and think of the greatest good for the greatest number of citizens. But history tells us we're going to use as much energy as we can afford and we're going to drive our cars whenever we like.

In the end, we'll build new transmission lines and construct new parking facilities and the city will get a little uglier and a little more congested.

So I don't fault the mayor for his dream, even though I'm skeptical it will ever come close to being realized.

But I still don't understand why electric lines for a trolley are fine while those to carry power are a blight on the landscape. - Bill Wineke, The Wisconsin State Journal

---

COMMISSION BACKS COMMUTER RAIL FOR MILWAUKEE-KENOSHA CORRIDOR

MILWAUKEE, WI -- The Southeastern Wisconsin Regional Planning Commission has identified commuter rail as the preferred alternative for public transit linking Milwaukee, Racine and Kenosha and said local officials should seek federal funding to implement such a rail system.

The regional planning authority, based in Waukesha, released its findings Tuesday afternoon as part of the "alternatives analysis" necessary to apply for funding from the Federal Transit Administration. The agency also reviewed bus service as an alternative.

A planning commission steering committee considered the potential costs, benefits and impacts of the transit alternatives for the so-called Kenosha-Racine-Milwaukee (KRM) corridor. The committee concluded that commuter rail costs more than bus service, but rail's benefits outweigh the higher costs.

The committee said the positive points of commuter rail are: faster average speeds and shorter travel times; higher reliability, comfort and convenience; significantly greater transit ridership; greater impact on highway traffic and congestion; greater reduction in air pollution emissions and energy consumption; potential to support and encourage more efficient high-density development and redevelopment; access to a significant number of jobs in southeastern Wisconsin and northeastern Illinois; and access to to a significant population and labor force, particularly minority and low income populations.

Commuter rail can contribute significantly to southeastern Wisconsin economic growth and development by more closely connecting northeastern Illinois with southeastern Wisconsin, the report said. The rail service would increase access to arts, culture and entertainment, and colleges and universities throughout the corridor, and to General Mitchell International Airport in Milwaukee, the report said.

A series of public informational meetings will be held in early February. A newsletter on the report and the schedule of public meetings are available on the project Web site, [www.KRMonline.org]. - The Business Journal of Milwaukee

---

THE END