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Railroad Newsline for Saturday, March 10, 2007

Compiled by Larry W. Grant

In Memory of Rob Carlson, 1952 – 2006

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Rail News

RAILWAYS HAVE NOT SIGNED CONTRACT; TEXAS STATE, AMERICAN HERITAGE STILL NEGOTIATING

DURANGO, CO -- A March 1 story that said American Heritage Railways has been selected to take over and manage the Texas State Railroad is premature, according to the president of the Texas State Railroad Operating Agency.

"American Heritage Railways was selected as a contractor with whom to negotiate," Steve Presley said Wednesday by telephone. "No contract has been finalized. If we reach an acceptable contract, it still must be approved by the Department of Parks and Wildlife and the state Legislature."

American Heritage Railways operates the Durango & Silverton Narrow Gauge Railroad.

Paul Schranck, vice president and general manager of the D&SNGR, was quoted in a March 1 story as saying the Durango railroad had an operating-management contract with the Texas railroad agency. On Thursday, he said the contract had not been signed.

"We're working toward an agreement," Schranck said Thursday. "I never indicated we had a signed agreement."

An acceptable contract must be reached by Sept. 1, Presley said. Otherwise, the Department of Parks and Wildlife and the Legislature have said that Texas State Railroad, an excursion line between Rusk and Palestine, will cease to operate. - The Durango Herald

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LEGISLATORS' BILLS COULD KEEP TRAIN ON TRACK

AUSTIN, TX -- East Texas legislators filed companion bills Thursday in the Texas House and Senate which would create a Texas State Railroad Operating Authority - the entity that could possibly oversee and lease out operations of the Texas State Railroad if the state relinquishes its control of the train.

State Rep. Byron Cook, R-Corsicana, filed House Bill 3113 and state Sen. Robert Nichols, R-Jacksonville, filed Senate Bill 1659 on Thursday.

The Texas State Railroad, which runs between Rusk and Palestine, faces a possible shut down of its operations as a moving train at the end of August.

Texas Parks and Wildlife Department officials have said repeatedly that without additional funding, the costly railroad would have to be turned into a static display.

Efforts have been under way by members of the Texas State Railroad Operating Agency, a group formed through an interlocal agreement between the cities of Rusk and Palestine, to explore the possibility of a private operator running the railroad.

"We're excited that Sen. Nichols and Rep. Cook have decided to sponsor the bills for us," Steve Presley, president of the Texas State Railroad Operating Agency, said by phone. "We feel the local public-private partnership will provide a big economic boost to the East Texas area."

Nichols said in a prepared statement released by his office that everyone agrees the train needs to be kept as a living piece of history.

"By authorizing the local operating agency to find an outside operator, we can help guarantee our children and grandchildren can experience this important part of Texas heritage," he said.

Cook said in the statement many people have worked together to save the railroad.

"This bill is a culmination of all their hard work," he said. "As this bill proceeds through the legislative process, we become closer and closer to ensuring the long-term success of the railroad."

State Rep. Chuck Hopson, D-Jacksonville, has also been involved in the effort to save the train. In the prepared statement, he stressed the need to pursue all options.

"It is vital that we keep the train running," Hopson said. "If the state doesn't come through with full funding for the train, we will need to pursue other options. By pursuing this legislation now, we can keep the option of an outside operator available."

According to the text of HB 3113, the operating authority would be created to "purchase, own, hold, lease and otherwise acquire facilities or other property to operate and maintain the Texas State Railroad; continue and improve the operation of the Texas State Railroad as a public recreational, historical and cultural resource; operate concessions, museums, campgrounds and other facilities associated with the Texas State Railroad; and enhance, augment and improve the historical, educational and cultural benefits offered by the Texas State Railroad."

The "authority" would be made up of directors appointed by the cities of Rusk and Palestine.

The bill details information on the board of directors of the authority, the length of their terms, how they would be appointed and who would be eligible to serve.

The bill also explains issues such as the powers and duties of the authority and the power to issue bonds.

PRIVATE OPERATOR

The Texas State Railroad Operating Agency has been asked to provide information to the Legislature about how the railroad could operate with a private entity running it, Presley has said.

In February, board members of the Texas State Railroad Operating Agency chose American Heritage Railways as the private operator to begin negotiating with about possibly running the tourist train if the state decides to relinquish its control.

The agency's board members and others, including the Texas State Railroad's general superintendent, listened to presentations from four operators who submitted proposals to possibly operate the railroad.

The agency's choice, American Heritage Railways, operates the Durango & Silverton Narrow Gauge Railroad in Colorado and the Great Smoky Mountains Railroad in North Carolina.

Presley, also a Palestine city councilman, told Parks and Wildlife commissioners in January that his group felt the best long-term funding option would be one where a private entity operates the railroad "under the guidance and control" of a local public authority, as described in the bills filed Thursday.

Board members of the existing operating agency have been involved in the process of creating the bills that were filed Thursday, Presley said.

He said Thursday by phone that the next step for the agency is to continue contract negotiations with American Heritage Railways and to "make sure all the protections are in place to keep the railroad running for the long term." Presley said board members must also be in Austin to make sure that legislators adequately fund the proposal.

He called Thursday's filing of bills "one more, big step forward."

"Over a year ago, Parks and Wildlife Department and legislative leadership told us we were going to have to do this, and we have been diligently working to get to this point," he said. "And now we have to carry on ... if we don't get this done, (the railroad) will go to a static display Sept. 1." - Megan Middleton, The Tyler Morning Telegraph

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SOYBEAN GROUPS PULL TOGETHER TO PUSH CUTS IN RAIL SHIPPING RATES

LINCOLN, NE -- Soybean industry groups from seven states have launched an effort to fight for lower railroad shipping rates.

The new Soy Transportation Coalition includes representatives from Iowa, Nebraska, South Dakota, North Dakota, Minnesota, Illinois and Indiana.

"We want railroads to treat us fairly," said Victor Bohuslavsky, executive director of the Nebraska Soybean Association.

The Government Accounting Office reported last summer that the benefits of deregulating the railroad industry, brought about by the Staggers Act of 1980, were not distributed equally among commodity groups.

While railroads reduced rates for coal shipments by 35 percent, rates charged for grain went up 9 percent, the GAO reported. The cost of shipping soybeans from the Midwest to coastal ports is about $1 to $2 per bushel.

Spokesmen for the soybean industry said they have complained for years, without results, and it was time for action.

"Generally, farm organizations have avoided really getting serious about taking a look at rail issues," said Kirk Leeds, chief executive officer of the Iowa Soybean Association.

State check-off organizations will provide funding for an office and staff with the Iowa Soybean Association in Des Moines. The first executive director began work Feb. 26.

The new coalition is the result of work by a special committee assigned to study freight issues, Leeds said. The committee decided rail freight rates were too important to ignore.

The new coalition will analyze factors that influence freight rates, educate shippers about rail issues and try to influence policies and regulations.

"We are trying to get facts together to show how much product we ship and what it should actually cost a railroad to move it," said Norm Husa, a Barneston, Neb., farmer who serves on the coalition board. "We think they are making too much profit."

Railroads point out that shipping rates have dropped dramatically under the Staggers Act, especially when adjusted for inflation.

"Overall, rates have gone down for just about every commodity group," said Tom White of the Association of American Railroads.

The rates (per ton-mile) for grain are second-lowest of any commodity, trailing only coal, White said.

"One of the objectives of the Staggers Act was to increase the pricing freedom that railroads have," White said. "When you go where the marketplace rules, you are going to have differing affects and differing impacts, but that is true of every industry."

Leeds said railroads have no incentive to negotiate rates with grain shippers, most of whom have no alternative for shipping.

Eventually, Leeds said, the Soy Transportation Coalition hopes to join with other interested agriculture groups and other rail shippers to broaden the industry's ability to make changes.

"We will attempt to find areas of common interest with the major railroads," Leeds said.

For example, Leeds said, grain shippers could support the railroad industry in attempts to get government funding for infrastructure improvements. "Maybe we support them in return for better treatment on rates," he said. - Bill Hord, The Omaha World-Herald

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PERILS OF PROGRESS AT THE NEVADA NORTHERN RAILWAY

ELY, NV -- As we accomplish more here at the Nevada Northern one thing becomes clear; we need more space. More space to work on locomotives and cars, more space to safely and securely store assets, the list goes on.

Some of you may be aware of the recent work on Outfit Car 06 which, along with the steam crane and a few other cars, made up the wrecking train for this winter's photo shoots. Until very recently this car was a basket case but through the efforts of our staff and volunteers the car has a new paint job, the broken glass has been replaced and the old paint has been stripped from the brass hardware.

While we are lucky to have the Machine Shop house Outfit 06's partial restoration, work remains to done on the inside of the car. Unfortunately, having the car in the shop slows work on the locomotives. With our locomotives ranging from 50 to almost 100 years old, there is much work to be done.

In a perfect world we would build a new shop saving the historical shop for interpretive displays and demonstrations; however, being an operating non-profit railroad there currently aren't funds for such a project currently available. We should just grin and bear it, right?

Well, not so fast. The museum has more than 99,000 square feet under roof, an area equal to more than 21 basketball courts, with much of this space concentrated in and near the Engine House. We have space; it's just not being utilized in an optimal manner. For instance, the Coach Shed is presently used for storage of cars, diesel parts, car parts and spare building windows and doors. If a home were found for these spare parts, the Coach Shed could be used to restore cars, freeing the Machine Shop for locomotive work.

Meanwhile the Machine Shop could also use more space for locomotive work. This large room is supported by the boiler room, the boiler shop and the warehouse. Presently these spaces are used to store locomotive parts, car parts as well as items completely unrelated to daily railroad activities. All of this rarely and never-used stuff is taking up real estate that would be better used to support daily operations. For example the Boiler Room is a large two-story space directly adjacent to the Machine Shop; it is now filled with flotsam and jetsam that certainly could be stored elsewhere. With that out of the way, parts bins, tool boards and shelving can be built to house the most often used tools and materials close to the work area. These tools are now primarily stored in the Machine Shop and in the Warehouse, occupying space better used otherwise.

By the way, if you haven't seen the Warehouse/Master Mechanic's Office you're in for a treat. The building contains fascinating remnants of the railroad; it's almost as if the walls could talk. It is a fascinating and unique place that was built to support the Engine House and continues in that role today. Ideally the Warehouse portion of the building should contain interpretive displays to help visitors better understand what took place here. Unfortunately this is difficult because the space is still used for to store parts and documents as well as many irreplaceable items the railroad needed over the years. Moving modern-day functions to the Boiler Room and relocating documents elsewhere will allow this space to truly excel at telling the Nevada Northern story.

Relocating documents and records in Warehouse/Master Mechanic's Office will afford these irreplaceable items protection from theft, vandalism, moisture, rodents and bird excrement. Once cataloged and duplicated, copies can be returned to the initial locations while the originals remain in a safe place. Scores of boxes containing documents, books, artifacts and other materials can also be moved to long-term storage. Primarily stored in the railroad's main office, more records await attention in McGill depot and other locations where they are commonly exposed to weather, rodents and worse. These items should be removed from these hazards and safely stored until they can be properly cataloged. The boxes now in the office constitute an ever-growing collection that really has no other place to go. Meanwhile additional office space is needed as more people are hired to help run the place. Removing rarely-used items from the office will allow more space for daily tasks while presenting a less-cluttered, more historical appearance for our many visitors.

Other items that need safe and secure long-term storage currently occupy flat cars on badly-needed indoor track space. Many of these items are rare and irreplaceable yet they are threatened by damage or theft as well as harm from poor loading. Most of this material is almost never used and can certainly be stored elsewhere; doing so would release the flat cars for other uses while opening indoor track space for wooden boxcars. Bringing these cars inside will protect the cars and provide an extra layer of safety and security for their contents. These cars currently contain rarely-accessed diesel parts which can be stored elsewhere making the boxcars available for less-demanding uses.

In place of storing heavy and rarely-needed diesel parts in the boxcars they can house lighter-weight articles to ease strain on their historical structures yet provide much needed mobile storage. Holiday decorations are a perfect candidate, they could be stored in a boxcar rather than in garages and other areas in and near the depot. This would afford the decorations a safe and secure home while allowing ready access when needed. The boxcar can easily be moved to the depot, the train or the North Pole as needed; greatly reducing the task of readying for the holiday.

We also have a steel boxcar in service as diesel parts storage. It too could be used otherwise, ideally as a Maintenance-of-Way tool car. Track repair tools and equipment would be securely stored in an organized manner, allowing easy movement to any point on the line.

The railroad's Maintenance-of-Way roster includes three hirail trucks. The workhorse of the group is Hirail 12 which is currently stored in one-half of the Ice House. The other half of the building is filled with items rarely or never used. Removing these articles from the building will allow storage of another hirail truck. This will either liberate space in the RIP for a boxcar or create space in a depot garage for items more frequently used in that area.

At this point you may realize the railroad has countless items to keep track of. The oft-mentioned diesel locomotive parts are a particularly good example of what we're facing. In addition to being stored in boxcars and on flat cars they are also found in the Boiler Shop, the Boiler Room, the Warehouse and in several small buildings near the Engine House. In many cases these parts are rare and valuable items that are now exposed to theft and/or irreparable damage by weather, vandalism, rodents and birds. Moving them elsewhere will free space and protect them while allowing repairs to the buildings in which they are now housed. There are many similar situations of historical items in need of better homes.

Throughout this discussion mention of moving items "elsewhere" has been made. Where is the place that will provide a suitable home for our belongings? Frankly that answer isn't yet known. One solution is to build new buildings. Documents, books and artifacts deserve the ideal storage conditions of a modern library/archive. Our current stock of parts and materials calls for a warehouse. The museum's collection of historical cars requires indoor storage away from weather, thieves and vandals. While these ideas may be in the museum's best interest, presently we lack funds and there is no long-term plan to guide the location, size and configuration of said buildings.

What are our options then? Leave everything where it lays? As a museum we are called to care for all we are entrusted with, which means we don't let our collection rust away or allow it to be carried away by souvenir hunters. Air-tight, water-tight and lockable structures are required to get us by until more suitable accommodations can be arranged.

Despite their non-traditional appearance, in many ways shipping containers fill our current needs. Containers are locally available, inexpensive and each provides almost 3,000 cubic feet of storage space. One container can safely and securely accommodate more than 1,000 linear feet of documents, equal to 800 banker's boxes. Additionally containers can be quickly set up in an orderly manner and located to be visually removed from the main part of the yard. With that done items can then be stored out of sight, safe from thieves, vandals, weather, rodents and birds. Our existing forklift can be used to load heavier items and in the process things can be organized and inventoried.

Although there will be relatively small initial costs associated with this project, over time it will save money. We currently order parts with no certainty that we don't already have them on hand. Once everything is organized and inventoried, time will no longer be wasted combing the property looking for a part. Despite being further from the Machine Shop the combination of gaining needed shop space with having an inventory of our parts will more than offset the inconvenience. Additionally, some cost may be recovered by selling containers once no longer needed.

As we accomplish more we must continue to make the most of what we have. A bit of effort now will pay dividends by providing existing workspace efficiency while providing better care for items we need to keep long-term. We may someday have the buildings to properly care for all we have been entrusted with; meanwhile we must simply do the best with what we have. - Natasha Bettis, The Ely Times

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MAYOR: DM&E RAILROAD EXPANSION KEY TO POSSIBLE POWER PLANT

PIERRE, SD -- Mayor Dennis Eisnach says the area around South Dakota's capital city probably would be considered as the site for a proposed new coal-fired power plant only if the Dakota, Minnesota & Eastern Railroad completes its expansion plan.

The railroad hopes to expand and upgrade its line to haul Wyoming coal to customers in eastern states. The DM&E's application for a federal loan was rejected, and the company is looking at private financing.

Eisnach said Pierre is one of four sites being considered by Basin Electric as a location for a coal-fired power plant. But he said Basin Electric will consider Pierre only if a ready source of coal is available -- and that depends on the DM&E expansion.

The railroad construction project would bring millions of dollars to the Pierre area, Eisnach said.

If the railroad project happens, Pierre would be the hub for two of the four projects for work going east 500 miles to the Mississippi River and 104 miles west to Wall, according to Eisnach.

The work, over three years, could mean 1,000 workers living in Pierre -- many with their families, the mayor said.

That would mean a need for more housing, more law enforcement and the need for medical and education services, Eisnach said. At the very least, it would mean a $40 million to $50 million yearly payroll, he said.

The mayor said he has started to speak publicly about what such a project would mean to Pierre because the city and its residents have to be ready just in case.

The railroad's request to get a federal loan to pay for part of the $6 billion project was rejected last month. But the mayor said railroad officials told him this week that they are optimistic they can find the needed money. - The Associated Press, The Rapid City Journal

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RAILROAD CHUGS AHEAD WITH REMOTE OPERATIONS; UP INVITES CITY OFFICIALS TO DEMONSTRATION

HERMISTON, OR -- Despite the city's efforts to ban remote- controlled trains, Union Pacific Railroad intends to extend remote operations from Hinkle.

Chris Peterson, the railroad's director of governmental affairs, however, invited city officials to participate in a demonstration of remote-control-locomotive (RCL) technology early next month.

Neither Mayor Bob Severson, to whom Peterson's letter was addressed, nor City Manager Ed Brookshier were amused.

"It doesn't look like we're going to be very successful," Severson said. "I'm not happy with it, but it looks like that's what they're going to do."

Brookshier said it doesn't appear there's much the city can do because the Federal Railroad Administration has said Union Pacific is within its rights.

"Since FRA is the final regulatory word, there's not a lot we can do," he said.

In his letter, Peterson said Union Pacific has used RCL technology safely across its network - inside and outside yards and terminals - for some time.

"For instance, RCL technology is used every day in Hinkle Yard, and current RCL operations there include movements across public crossings," Peterson wrote.

Among the things railroad and city officials discussed at a meeting in December was where the train's controller would be during train movements.

"... Once the RCL technology is implemented there will be two crew members in the cab of the locomotive as the train moves through Hermiston," Peterson wrote.

Stressing that remote operations across public crossings is common, he enclosed a chart summarizing RCL operations in a number of cities. In the Northwest, it showed crossings at Hinkle, Eugene, Portland and Seattle-Tacoma. Union Pacific RCL trains go over four roads near Hinkle 10 times every 24 hours, the chart showed. It also showed 12 crossings of four streets daily in Eugene, 73 crossings of 26 streets in Portland and 233 crossings of 78 streets in the Seattle area.

The greatest number on the list was 950 crossings of 75 streets in the vicinity of a Los Angeles train yard.

Peterson said city officials asked for information on stopping distances for a typical train that would travel through Hermiston. A chart he included showed stopping distances would vary from 365 feet to 750 feet for a 20-car, 3,000-ton train powered by one locomotive traveling 10 miles per hour. The distance would vary depending upon the grade, ranging from minus three-tenths of a percent to minus 1 percent.

Union Pacific has continued evaluating the Umatilla job, Peterson said, and is developing an employee training plan that would be implemented before the railroad starts RCL operations.

"This plan must be approved by the Federal Railroad Administration prior to implementation," he wrote.

As a result of Peterson's letter, dated Feb. 27, the city will be unable to enforce the resolution it adopted in November to ban RCL operations in the name of safety.

"I don't know how we can enforce it," Severson said. "It seems like they have a right." - Dean Brickey, The East Oregonian

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ARKANSAS GROUP SEEKS RAILROAD REFORM

LITTLE ROCK, AR -- A coalition of business and civic groups decried rising rail shipping rates and declining rail service Thursday and called on Arkansas' congressional delegation to support anti-trust legislation for railroads.

Railroads are currently exempt from anti-trust laws.

"We'll try to at least impact the hearts and minds of six people up there (in Washington, DC) to get their attention, and that's about as far as we can take it," said Carmie Henry, vice president of governmental affairs for the Electric Cooperatives of Arkansas.

The electric cooperatives is part of the coalition Arkansas CURE, or Consumers United for Rail Equity, comprised of businesses, utilities, chambers of commerce and municipalities.

A spokesman for Union Pacific, the major railroad operating in Arkansas, said the company wants to make sure it provides good service and is always open to talking about ways to better serve its customers.

Major Arkansas employers -- paper companies, chemical companies, steel producers, food processing companies and electricity providers - are experiencing steep cost increases and unreliable service, Henry said.

Electricity providers receive about 90 percent of the coal electricity companies contract for delivery, "and I think (railroads) think they are doing a pretty good job," he said.

The railroad industry experienced its busiest year in history in 2006, according to Joe Arbona, public affairs director for Union Pacific.

"We hadn't seen anything close to it since mobilization in World War II," Arbona said.

But that's no excuse, Henry said, adding, "I don't think people would be very happy if we provided only 90 percent of their electricity."

In 2005, a total disruption in coal delivery resulted in coal burn curtailments at Arkansas' coal-fired power plants. Electricity providers were forced to pass the costs along to residential and commercial consumers, resulting in an additional $76 million in consumer bills in 2005, Henry said.

A countersuit against Union Pacific is pending, he said.

"We've been feeling the pinch not being able to get the coal that we need to run the coal generation plants in Arkansas for some time now, and its translated into us using a lot more natural gas to generate electricity, and the price of natural gas is very high," Henry said.

Add-ons to consumer bills are estimated to have topped $100 million in 2006, he said.

Along with other grassroots organizations across the U.S., Arkansas CURE is working with the national CURE organization in pushing legislation affecting railroad competition and aimed at forcing big railroads to offer better service and fair rates.

Specifically, CURE is calling for a common rail carrier "obligation to serve" standard when it comes to delivering products, like coal, that are critical to the U.S. economy.

Thursday in Washington, DC, the Arkansas congressional delegation plans to meet with the group to discuss proposed legislation concerning the railroad industry during Rail Customers Day, Henry said.

Sen. Herb Kohl, D-Wis., has filed legislation that would strip the rail industry of its anti-trust exemption.

"Going back to the dark ages of re-regulation would hurt customers," Arbona said.

Since deregulation, railroad productivity, cargo volume and revenue increased, while pricing dropped, he said. Railroads are competitive when compared to trucking, he said.

A second pair of bills is scheduled to be introduced next week concerning the Surface Transportation Board, which was created to ensure that freight rail customers receive reasonable service and pay reasonable rates.

The board is supposed to intervene in rate cases when railroads are accused of charging exorbitant fees.

"It costs you $140,600 to file a rate case," and then the customer has to prove that the railroad is charging 180 percent more than their costs before the board will do anything, Henry said.

"It's unregulated monopoly, that's what it is," he said.

Arkansas CURE members include the Arkansas Association of Conservation Districts; the Arkansas Forestry Association; the Electric Cooperatives of Arkansas; Entergy Arkansas Inc.; the cities of Jonesboro, Pocahontas and West Memphis; Conway Corporation; Cooper Communities Inc.; Green Bay Packaging; Holiday Island Suburban Improvement District; the Randolph County Chamber of Commerce; Stribling Packaging and Display; and Tyson Foods Inc. - Jason Wiest, Arkansas News Bureau

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RAILROAD SAYS IT'S GEARED UP FOR HAULING MORE TUNDRAS

SAN ANTONIO, TX -- When the city's Toyota plant ramps up Tundra production later this month, Union Pacific will be ready for the boost in business, the railroad's chief executive said in San Antonio on Thursday.

"We're ready to handle that volume," Union Pacific Corp. Chairman and CEO Jim Young said. "Bring it on."

Young and Toyota Motor Manufacturing Texas Inc. President Hidehiko "T.J." Tajima on Thursday showed off a system to get the trucks from the plant on the city's South Side to the driveways and garages of customers.

Each day at the plant, 35 specialized double-decker rail cars will be loaded with eight full-size trucks each and sent to a local Union Pacific rail yard. From there, they'll be routed to destinations throughout the country.

Seven out of every 10 Tundras manufactured in San Antonio are shipped by rail, according to John Daly, project manager for Toyota Logistics Services. That's eventually expected to rise to eight out of every 10 Tundras.

"Toyota team members are very motivated to build more and more Tundras," Tajima said.

So far, more than 16,000 Tundras have been manufactured here. About 350 Tundras are built in San Antonio every day. By summer, that figure is expected to double to 700.

By next year, the number of rail cars leaving San Antonio's Toyota plant also is expected to double to 70.

"We handle the majority of Toyota's business west of the Mississippi River," Young said.

Photo here:

[www.mysanantonio.com]

Caption reads: James Garrity, of Road Rail Services, loads a Toyota Tundra onto a rail car during the inauguration of the Union Pacific facility at the San Antonio Toyota Plant. (Photo by Jerry Lara/Express-News)

Union Pacific has been moving Toyota vehicles for more than 30 years. It already ships more than 1 million Toyotas in the U.S. each year. Of Union Pacific's $15.5 billion in 2006 revenue, $1.7 billion was generated by transporting vehicles and auto parts, Young said.

Toyota is among Union Pacific's top 10 customers.

To handle Toyota's San Antonio business, the railroad has invested $25.9 million into infrastructure at and around the Japanese automaker's local manufacturing center.

It also has invested more than $100 million in railroad infrastructure in South Texas, including a $90 million intermodal facility in Southwest Bexar County. The 300-acre project will transport containers of household goods and auto parts but won't move hazardous materials, Union Pacific has said. - Meena Thiruvengadam, The San Antonio Express News

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RAILROAD TRAFFIC BEHIND LAST YEAR'S PACE, SAYS AAR

WASHINGTON, DC -- Continuing a trend that has been prevalent throughout the early stages of this year, railroad freight totals were decidedly mixed in February, with intermodal freight up and carload volume down, according to data released today by the Association of American Railroads (AAR).

The AAR said that United States railroads originated 1,261,167 carloads of freight in February, which represented a decrease of 54,812 carloads -- or 4.2 percent -- from February 2006.

Intermodal volume at 924,905 units in February represented an increase of 36,011 trailers and containers -- or 4.1 percent -- over February 2006.

AAR director of editorial services Tom White told Logistics Management that it is somewhat difficult to gauge railroad performance on a monthly and year-to-date basis, largely because of poor weather conditions in many areas of the United States.

"The continued reports of a slow economy are also playing into current loading totals as well, said White. "But it is hard to gauge how much of that is due to weather conditions and how much [of the railroad loadings decline] is due to a slowing economy."

In all likelihood, said White, it is likely a combination of both these factors, coupled with the fact that that housing market is still struggling and the automotive market is still experiencing problems, too.

On the positive side in February, White noted that intermodal loadings are on the upswing, with some "pretty strong increases" in recent weeks.

While 2006 was a record-breaking year for the railroad industry, this year's current performance is behind in terms of growth, but White said that a more valid year-over-year comparison will come to light as the mid-point of the year approaches.

Four of the 19 commodities tracked by the AAR had carload increases compared to February 2006, according to the AAR. Chemicals were up 2.4 percent -- or 2,978 carloads. Nonmetallic minerals were up 19.3 percent -- or 3,634 carloads.

Motor vehicles and equipment continued its downward slide, with loadings down 10.9 percent -- or 10,263 carloads. And crushed stone, sand and gravel were down 16.7 percent or 33,240 carloads.

Through the first two months of this year, total U.S. carloads were down 5.6 percent -- or 167,240 carloads -- for a total of 2,814,227 carloads, said the AAR. U.S. intermodal traffic, which is comprised of trailers and containers on flat cars (and not included in carload figures) was up 0.9 percent -- 17,649 trailers and containers -- to bring the total to 2,030,877. Total volume through February was estimated by the AAR to be 286.1 billion ton-miles, which is 4.3 percent behind last year's record-breaking growth rate. - Jeff Berman, Logistics Management

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TRACK GRINDING SPARKS SEVERAL RAILWAY FIRES

Photo gallery here:

[www.chicoer.com]

CHICO, CA -- At least a dozen reports have been made to local fire departments this week about wooden railroad ties mysteriously smoldering or bursting into flame in Butte and Tehama counties.

The cause turned out to be a track grinding operation by Union Pacific Railroad that showers ties with hot sparks. The procedure is done about twice a year to keep the rails more serviceable and extend their life.

Winter is usually a low-risk time of year to perform the grinding. The railroad takes precautions to keep sparks from escaping into vegetation, and wets down the tracks immediately after the grinding process.

However, recent dry weather has turned railroad ties into pretty decent fuel that can actually catch fire when embers become embedded in cracks and are fanned by the wind.

On Tuesday, Wednesday and Thursday the location of the grinder was easy to track as reports of railroad ties on fire brought out fire crews from Red Bluff down to Gridley.

Some of the ties, like one that caught fire in Chico Wednesday near Orange Street, was easily accessible.

Others have caught fire in remote area, and may have burned a long time before discovered.

A tie fire reported at noon Thursday, near Sixth Street in Gridley, was spotted by a Butte County sheriff's helicopter. The chopper pilot had to guide a Cal Fire-Butte County engine to the burning tie, which was several yards from a crossing.

At least a half-dozen tie fires were reported Thursday between Richvale Highway and Highway 162. In some cases this week, trains were halted while the burning ties were extinguished.

Cal Fire Deputy Chief George Morris said the grinding operations always start a few fires, but most are quickly extinguished, and rarely burn through the wooden ties.

He said Union Pacific takes adequate precautions to keep sparks from touching off more serious fires in dry vegetation. He said the railroad always cooperates in halting track grinding operations if the number of fires becomes excessive.

The grinding operation moved into Sutter County late on Thursday. - Greg Welter, The Chico Enterprise-Record

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AMTRAK MAY EXPAND WITH FEDERAL FUNDS

WASHINGTON, DC -- States could receive millions of dollars from Washington beginning next year -- for the first time -- to run more trains between cities within 400 miles of each other.

That's because Congress and the White House, which seldom see eye to eye over the future of the nation's passenger rail network, are in rare agreement that it makes sense to expand Amtrak service where demand is the greatest.

Congress and President Bush are proposing giving states grants to increase service on rail corridors linking about 50 major cities such as Los Angeles and Oakland; Indianapolis and Cincinnati; Houston and New Orleans; and Chicago and Milwaukee.

Many urban corridors are setting ridership records because people want an alternative to driving on congested highways or flying out of crowded airports, advocates say.

Frank Busalacchi, chairman of the 29-member States for Passenger Rail Coalition, said federal lawmakers in the past expressed support for intercity passenger rail but failed to provide money to supplement the millions states already pay Amtrak to increase service between select cities in one state or those in adjoining states.

"This is the first time there's been anything serious," Busalacchi, who also is Wisconsin's transportation secretary, said at a hearing this month. "Rather than get the whole system up and running, we're asking the federal government to fund these corridors. We'll do it piece by piece because we know there's significant demand."

Bush proposed $100 million for state rail grants in his budget for next year, on top of $800 million for Amtrak operations and improvements such as track and tunnel repairs on infrastructure the railroad owns in the Washington-to-Boston Northeast Corridor.

A $19 billion Amtrak bill by Sens. Frank Lautenberg, D-N.J., and Trent Lott, R-Miss., includes $1.4 billion over the next six years -- $237 million a year -- for state intercity rail grants.

House legislation introduced by Majority Leader Steny Hoyer of Maryland would allow states to issue $1.2 billion worth of rail bonds over 11 years starting in 2008.

"We have the resources. We just need the political will to do it," Rep. Jim Oberstar, D-Minn., chairman of the House Transportation and Infrastructure Committee, recently told the American Association of State Highway and Transportation Officials, referring to intercity rail.

He said the United States lags behind China and other emerging countries, which are spending hundreds of billions on fast, efficient rail networks to help their economies grow.

Amtrak President Alex Kummant told a Senate subcommittee considering the Lautenberg-Lott bill on Feb. 27 that intercity rail is essential to helping the railroad grow.

"State corridors are very much the future," he testified.

Agreement on state corridors doesn't mean Congress and the White House are of one mind on other rail matters. Significant differences remain on issues such as the size of Amtrak's subsidy, whether to retain money-losing, long-distance routes and how to make Amtrak run its business more efficiently. While those debates continue, states are asking Congress to dedicate more money to those routes that are attracting record numbers of riders.

High usage in urban corridors is the main reason Amtrak is setting ridership records from one year to the next, according to David Johnson of the National Association of Railroad Passengers. People took more than 25 million trips on Amtrak trains last year.

However, Busalacchi said the key to making the city-to-city network efficient is to ensure the trains run on time. Because freight railroads own rail lines outside the Northeast Corridor, Amtrak trains frequently are late as freight trains get priority usage. Last year, 40 out of every 100 Amtrak trains were at least a half-hour late.

States are looking first to run more trains. Later, they want high-speed service, that is, trains that will travel more than 79 mph, the typical top speed for most Amtrak trains. The Acela, which operates exclusively on the Northeast Corridor, is designed to reach top speeds of 150 mph though they almost never travel at top speed.

Pennsylvania Gov. Ed Rendell said states need federal support because Amtrak wants states to pick up more of the operating costs for intercity service.

"Asking the states to pay more just so the federal government can avoid its responsibility to support a first-class transportation system is just wrong," he testified on Feb. 27. "If we improve it, people will come." - Raju Chebium, Gannett News Service, USAToday

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TRANSIT NEWS

IDAHO HOUSE PANEL JAMS UP PUBLIC TRANSIT BILL

BOISE, ID -- A House panel that's killed virtually all attempts this year to raise new taxes for public services dumped another plan Wednesday, this one to let voters raise their own sales taxes to pay for expanded public transit.

The House Revenue and Taxation Committee voted it down 11-7. It had been pushed by Boise Mayor Dave Bieter and Caldwell Mayor Garrett Nancolas as a way to slash congestion on Interstate 84 and reduce automobile air pollution.

The decision came after more than four hours of hearings over two days.

Rep. Ken Roberts, R-McCall, part of the all-GOP contingent that rejected the plan, argued it's unfair to make residents of outlying communities, such as his in Valley County who travel to Boise to shop, pay a public-transit sales tax from which they reap little benefit. Opponents also argued Boise's existing Valley Ride buses are often empty because people want to drive their own cars.

"Quite frankly, we have an urban sprawl issue," Roberts said. "They (residents) want to spread out. Financially independent people want to own their own cars."

This session, the committee has also killed a bill to lower hurdles to creating community colleges and allow voters to raise their taxes to pay for prisons and economic development.

If Wednesday's bill hadn't died, it would have permitted residents to add a half-cent on the dollar local sales tax, if two-thirds of voters supported the plan.

Most of those who spoke focused on the Treasure Valley, the growing area that includes Boise, Nampa and Caldwell in southwestern Idaho where cars now snarl freeways and roads that just a decade ago were just two-lane country byways.

Many here look longingly at cities like Portland, Oregon, and Salt Lake City, which have boosted their public transit in recent years with trains taking workers from the suburbs to centers of commerce.

Kelli Fairless, the director of Valley Ride, the transit authority in southwestern Idaho that serves between 900,000 and 1 million riders annually, was hoping for passage. She wanted to ask voters in Ada and Canyon counties in 2008 to support a $29 million, six-year plan to provide high-speed mass-transit lanes, expand the bus system, secure right of way, and explore the possibility of commuter rail.

"We'll go back to looking at the postgame wrap-up, to figure out what things we've heard and what things that we can now do to address this issue," Fairless told The Associated Press after the vote.

Though some suggested boosting car registration fees, not the sales tax, was a more appropriate way to pay for mass transit, Fairless said her group discarded the option. It would have required a change to Idaho's Constitution, and would have put mass transit in competition with the Idaho Department of Transportation, she said.

Two Republicans, Rep. Dennis Lake, R-Blackfoot, and Rep. Leon Smith, joined the committee's five Democrats in voting for the bill.

Still, the majority remained unconvinced that boosting public transit will bring about the desired reductions in congestion in the Treasure Valley.

For instance, Rep. Scott Bedke, R-Oakley, said even Salt Lake City's popular TRAX light rail has only made moderate inroads on traffic volumes on the Utah capital's freeway.

"It was very successful, yet it only took one lane off," Bedke said.

Blind and disabled residents had urged passage to increase their transportation options.

Amber Crispin, a Boise resident who hasn't driven for a year because of advancing glaucoma-caused blindness, said she's considering moving from Idaho to another city with a more substantial public transportation system to boost her employment options.

"If they gave us the resources we need, improving the transit system would improve ridership, too," Crispin told the AP. "In Portland, doctors, lawyers, everyone rides the transit system because it's been made more convenient." - John Miller, The Associated Press, The Casper Star-Tribune

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OTHER CITIES HAVE FOUND FREE-FARE TRANSIT A BUMPY RIDE

SAN FRANCISCO, CA -- Every major American public transit system that has tried a fare-free program quickly abandoned the initiative due to a rise in crime and rowdiness aboard buses and a mounting burden of funding operating costs -- issues that may influence San Francisco officials considering elimination of Muni fares.

The places where fare-free transit has taken hold are smaller, mainly rural communities, and in the downtown pockets of larger cities, such as Portland and Seattle.

San Francisco Mayor Gavin Newsom has broached the notion of abolishing fares for San Francisco's buses, streetcars and cable cars. He has asked the Municipal Transportation Agency, which operates the Municipal Railway transit system, to study the idea before he decides whether to pursue it.

"The fact is, we have among the lowest fare-collection rates of any transit agency in the country," Newsom said. "The consequence of that is we have two options: to go higher or, arguably, to look at the cost of collecting fares and go lower.''

Muni, the largest transit system in the Bay Area, recovers about $138 million, or 22 percent of its annual budget, at the fare box. Nationally, the average is 34.2 percent.

Municipal Transportation Agency officials are in the process of determining exactly how much it costs to collect fares, when equipment and staffing are considered, and estimating how much operating expenses would increase if there were no fares.

The experience of other transit agencies has shown that the ridership would go up -- a benefit if the goal is to get people out of their cars. But that creates a need for more buses and streetcars and additional maintenance crews, drivers and security workers.

Only a handful of transit systems across the country don't charge passengers. One is in the small city of Commerce near Los Angeles.

"Fare-free transit really benefits the public. People can just hop on and off the bus,'' said Commerce Transit Director Dan Gomez.

He said it also saves money on new fare boxes, which he said cost more than $10,000 apiece and which buses must be wired to accommodate.

Gomez said his system carries 750,000 passengers a year -- slightly more than the nearly 700,000 boardings on Muni each day.

In the 1970s, Trenton, NJ, and Denver tried a no-fare policy during off-peak hours. The last large transit agency to try it was Austin, 17 years ago. That project, which lasted 15 months, resulted in a 75 percent jump in ridership, but part of the increase was attributed to an expanded service area.

At the same time, complaints about vandalism and drunken and rowdy riders increased. At one point, three-quarters of the drivers petitioned management to start charging fares again.

Ballooning operating expenses also triggered the demise of free fares, and longtime commuters complained about crowding.

"The benefits weren't worth the problems,'' said Joel Volinski, director of the National Center for Transit Research at the University of South Florida.

Volinski, who has studied the issue, said a handful of small agencies have successfully instituted free fares. Island County Transit, in rural Washington, is another example.

"If your mission is to get people out of their cars and improve the environment, fare-free transit is the way to go,'' said Martha Rose, executive director of Island County Transit, which serves island communities near Seattle.

She said her system hasn't seen any significant problems in crime. Like Commerce, the number of riders annually is close to the daily ridership in San Francisco.

The same is true on the Big Island of Hawaii, which eliminated fares in 2005. The county government subsidizes the $5 million-a-year operating costs, and the federal government buys the buses. The program eased the financial burden on residents, many of whom travel up to 100 miles each way to their jobs -- a bus commute that once cost up to $12 a day.

Tom Brown, the transit administrator for the County of Hawaii, said his system has experienced some additional security problems, but nothing major.

"For the most part,'' Brown said, "the people of Hawaii are laid back.'' - Rachel Gordon, The San Francisco Chronicle

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LAGNIAPPE (Something extra, not always railroad related, for Saturdays only)

RANCH GROUP SETS OUT TO PROTECT PURITY OF TEXAS LONGHORN BREED

LUBBOCK, TX - Rancher Debbie Davis has no beef with cattlemen who want the Texas longhorns they raise to be, well, beefier.

Her passion, though, lies with preserving the pure longhorn breed that roamed Texas and other parts of the West during the mid-1800s.

"A true Texas longhorn is endangered right now," said Davis, president of the Cattlemen's Texas Longhorn Registry, which is striving to keep the bloodline of the longhorn as pure as possible.

Photo here:

[www.billingsgazette.net]

The longhorn isn't on any endangered lists, but the crossbred longhorns competing in livestock shows have far more heft and girth than the rangy, gaunt animal of the Wild West.

Davis and other ranchers believe crossbreeding with other cattle species is diminishing the pure longhorn's numbers.

Others are less concerned about purity of the breed.

"You're always going to have people giving you an opinion of what a longhorn looks like," said Larry Barker, general manager of the Fort Worth-based Texas Longhorn Breeders Association of America. "If you asked six people, you'd get six different answers, and all six of them would be correct."

There's plenty beyond the name that ties the breed to Texas. It's the state's official large mammal and the mascot for the University of Texas. Bevo XIV, the current mascot, is a true longhorn and lives on a ranch northwest of Austin, its owner said.

Davis' registry is working on a DNA database that will define the genetic makeup of a traditional longhorn. Until then, animals are required to have a visual inspection as well as blood-typing to see if there is evidence of other breeds.

Davis and others have registered about 3,500 longhorns since 1990.

"What they're doing is real important, to retain as close as possible" the true longhorn, said Dr. Phil Sponenberg, a veterinarian and professor of pathology and genetics at Virginia Tech University.

Mixing traditional longhorns with cattle breeds such as Angus and Hereford for show purposes began about 20 years ago, Barker said. It's created bigger animals, some with longer horns, that are winning livestock show competitions across the state and the country.

Davis said she believes livestock shows are "responsible for the degradation" of the longhorn.

The decline of the pure longhorn began at the end of the 19th century, when railroads replaced cattle drives.

Because of their horns, fewer could fit inside a rail car. Also, breeds of English cattle, which matured more quickly, began arriving in the U.S. and were crossbred with longhorns.

Longhorns also had a natural resistance to tick fever, a cattle disease since eradicated in the U.S. but still monitored for incursion from Mexico. - The Associated Press, The Billings Gazette

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THE PLIGHT OF THE HONEYBEES

LEWIS, CO -- As usual at this time of year, Montezuma County beekeeper Brad Milligin is preparing for the upcoming nectar flow. But he's also hoping to learn why one-third of his bee colonies have gone AWOL.

Beekeepers in 24 states across the country have experienced the same phenomenon: the mysterious die-off of millions of bees, whose search for nectar drives the pollination of fruit and nut trees, melons and vegetables in the U.S. - a $14.5 billion industry.

Milligin noticed something wrong last summer, earlier than many other beekeepers.

Photo here: [www.durangoherald.com]

Caption reads: Milligin inspects one of his beehives. (Photo by Jerry McBride/The Durango Herald)

"I went out one day, opened a box and found a queen but no worker bees," Milligin said Friday as he showed visitors empty hives on his property near Lewis, north of Cortez. "It's as if aliens had come and taken them away."

Milligin, who usually maintains 2,000 bee colonies in Archuleta, La Plata, Montezuma and Dolores counties, has taken over Milligin Honey Farms from his father, Gary, who kept bees for 37 years, first in California and later in Colorado.

But this year, only 1,300 of Milligin's colonies - currently near Fresno, California, in an almond orchard - are pulling pollination duty. He also has 500 other bee colonies near the almond orchard for which he isn't getting paid because they aren't strong enough to do the work.

"They're on the verge of death, so they're not good enough for an orchard," Milligin said. "But the almond grower will get a little benefit from them, and the nourishment the bees get will help me rebuild the colonies."

The other 200 colonies are practically nonexistent and remain in Colorado.

Photo here: [www.durangoherald.com]

Caption reads: A mound of dead worker bees seen in a hive belonging to Brad Milligin, co-owner of Milligin Honey Farms, near Lewis, north of Cortez on Friday, illustrates the woes of beekeepers in more than 20 states where a mysterious die-off is wiping out thousands of hives.
One beekeeper reportedly lost 11,000 of 13,000 hives. Milligin may be one of the luckier beekeepers: About 1,300 of his 2,000 hives are healthy enough to be pollinating almonds near Fresno, California. (Photo by Jerry McBride/The Durango Herald)

The disappearance of millions of bees, commonly called colony collapse disorder, has alarmed beekeepers across the country. The news of their disappearance and what it could portend for agriculture has been grist for major newspapers and television talk shows.

Vanishing bees is a particular concern for California almond growers, whose 500,000 acres of trees produce an annual revenue of about $3 billion.

Researchers have been looking for answers since reports of a bee die-off surfaced last fall. Some beekeepers are reporting average losses, but others have been wiped out. One apiarist reportedly lost 11,000 of 13,000 colonies, another 2,500 of 3,000 colonies, a third 700 of 900 colonies.

Tracheal and varroa mites, viruses, fungal disease, drought and the effects of genetically modified crops are put forward as the possible culprit in the case of the vanishing honey bees.

But one Colorado expert hasn't seen evidence of a bee crisis in the state. In response to a question about the bee disappearance, Bob Salzer with the Colorado State University Cooperative Extension in Durango passed along a reply from CSU entomologist Whitney Crenshaw. Crenshaw said the bee crisis seems to be blown out of proportion.

"I don't know of anything special that is happening in Colorado," Crenshaw said in an e-mail. "But whatever it is, there is no reason to think that it is something that suddenly and systematically is affecting all parts of the U.S. I suggest we ignore it unless you are hearing anything different from local beekeepers.

"Unfortunately, even if it is a Colorado issue, we have no way to determine its extent.

Beekeeping expertise in the University is next to nil and it has been eliminated as a priority from all University planning."

Therein lies part of the problem, said Tom Theobald with Niwot Honey Farm. As a small operation northeast of Boulder, the farm doesn't take its 100 or so bee colonies out of state.

"We as an industry have been under assault from agencies that should protect us but who have been our adversaries," Theobald said by telephone. He included the U.S. Environmental Protection Agency, state departments of agriculture and, nationally, university cooperative extensions, which he said are too cozy with the chemical industry.

"It's a disgrace," said Theobald, who, among other activities, writes a weekly column for The Fence Post, an agricultural publication based in Windsor.

After cattle and wheat, crops that depend on pollination are the biggest agricultural money-makers in Colorado, Theobald said. But the number of bee colonies in the state has dropped from 55,000 in 1990 to about 24,000 today. Without pollination, many crops are in jeopardy, he said.

Danny Culhane with Honeyville Honey Farm in Hermosa said that so far he has met all his needs. But the situation could become dicey, he said. Culhane doesn't buy foreign honey.

After Milligin brings his bee colonies home from California late this month or in early April, he will monitor them closely.

"There's no smoking gun here, no reason for the disappearance of bees," Milligin said. "These events happen in cycles, like I remember my dad talking about the 1970s. But I think that because more bees are being used commercially it's having a bigger impact on agriculture." - Dale Rodebraugh, The Durango Herald

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THE END