Railroad Newsline for Friday, 11/17/06
Author: Larry W. Grant
Date: 11-17-2006 - 04:36

Railroad Newsline for Friday, November 17, 2006

Compiled by Larry W. Grant

In Memory of Rob Carlson, 1952 – 2006

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Rail News

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Coleman Says He'll Oppose DM&E Expansion Without Mitigation Plan

WASHINGTION DC -- Sen. Norm Coleman said Thursday that he will oppose an expansion plan by the Dakota, Minnesota & Eastern Railroad unless the Department of Transportation comes up with a plan to address the concerns of the Mayo Clinic.

"I need to soon see a mitigation plan," Coleman, R-Minn., said in a conference call with reporters. "If there isn't a plan, then I'll do everything in my prerogatives as senator to stop this project, either through the appropriation process or the legislation process."

Coleman said he wants to see a plan by the end of the year.

The DM&E secured federal regulatory approval for the project earlier, but it is now seeking approval for a $2.3 billion loan from the Transportation Department's Federal Railroad Administration.

The project would rebuild 600 miles of track across South Dakota and Minnesota and add 260 miles of new track to reach Wyoming's Powder River Basin coal mines. It would cost an estimated $6 billion, with $2.3 billion coming from the federal loan and the rest from private funding.

The Mayo Clinic and the city of Rochester, Minnesota, oppose the project, arguing the increased rail traffic could threaten the safety of the clinic's patients. The rail line runs only a few blocks away from the Mayo Clinic, which wants DM&E to build a bypass around the city.

John Wade, president of the Rochester Area Chamber of Commerce, said, "We very much appreciate Norm Coleman's involvement and advocacy on behalf of the Mayo Clinic and the city of Rochester."

The Federal Railroad Administration issued a statement saying it had received Coleman's request for a study in September.

"We appreciate the concerns expressed by the senator and have placed his letter in the public docket to be thoroughly and fully considered as the loan application review process continues to move forward," the statement said.

DM&E President Kevin Schieffer said in a statement, "The DM&E Railroad would welcome negotiations on mitigation for Rochester."

In ratcheting up the pressure, Coleman is taking the baton from fellow Minnesota Sen. Mark Dayton, a Democrat who is retiring. While not declaring that the railroad would enter Rochester "over my dead body," as Dayton famously did, Coleman is nonetheless drawing a line in the tracks.

"If the concerns of the Mayo Clinic are not satisfied," he said, "this project won't go forward."
Coleman said Transportation Secretary Mary E. Peters has offered to come to Rochester.

"My response at this point is, we don't need more meetings," he said. "We simply need to know, is there a plan? Is there a way to mitigate the concerns?"

Coleman said he was still hopeful a plan could be worked out.

"Is it building tunnels? There's a whole range of things," he said.

And he said he was confident he could block the project by winning legislation to prevent the loan.

"I presume I can get a pretty broad bipartisan coalition - conservatives who are concerned about the funding itself, environmentalists who are concerned about the impact on the environment," he said. - Frederic J. Frommer, The Associated Press, The West Central Tribune (Willmar, MN)

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Picacho Rail Yard Voted Down

FLORENCE, AZ -- A busload of residents from Picacho Peak RV Resort made the 40-mile trip to Florence Thursday, trying to stop a rail yard from being built in their back yard.

Some 50 people traveled to have their voices heard before the Pinal County Planning and Zoning Commission, which was considering an approximate 10,472-acre parcel along Interstate 10 for a comprehensive plan amendment, changing it from "development sensitive, transitional, natural resource and interchange mix" to "urban, industrial and rural community." The land is owned by the State Land Department and will go up for auction and be sold to the highest bidder, be it Union Pacific Railway or another party.

The railroad wants the yard as a means of expanding freight service in this part of the state.

The Land Department manages vast areas, leasing or selling them to benefit an education trust that was set up when Arizona became a state.

The commission recommended denial of the amendment by the Board of Supervisors, on a 5-3 vote, with Mary Aguirre-Vogler absent. The matter is tentatively set to go before the supervisors in late November.

Many of those who make their home in and around Picacho Pass do so because of the uninterrupted desert vistas, the quietness of the desert and the ability to see a roadrunner or other desert creature running by.

Ann Hoffman, who lives at the resort, southeast of Picacho Peak along I-10 with her husband Robert, said she loves the beauty of the desert, and each morning when she looks out her kitchen window she is thankful for the peaceful nature of her home and the surrounding area.

"The saguaros will probably be the first victims if this thing gets passed, then the wildlife will move or be killed because of the fumes," she said. "What we will get an abundance of is rats and roaches. Then people will start to leave because people with breathing problems won't be able to stay.

"What I would do is turn it into a state park because it's that beautiful, but unfortunately I'm not the one who makes those decisions."

Ron Ruziska, a representative of the Land Department, said growth is coming to the Picacho Peak area.

"This is inevitable, ongoing growth to the state and country," he said. "We have real estate here in Arizona where other parts of the country have timber or oil. Land is our life blood. It is in our best interest to work with our neighbors and ourselves to benefit the public schools from the inevitable sale of this land whether it be a switchyard or a Wal-Mart or a housing development. But, the majority of the Picacho area will be developed."

With its 5-3 recommendation for denial of the comprehensive plan amendment, the commission was divided in this case.

Commissioner Scott Riggins said he did not want to see the Picacho Peak area developed.

"I think it would have a large, large impact on a state treasure, the Picacho Peak," Riggins said. "To develop something on this spot would be a darned shame."

Chairwoman Kate Kenyon said more industry is needed in Pinal County, so she voted for the proposal.

"Pinal County is nothing more than a bedroom community with a 20-year supply of houses. We have no industry coming in," she said. "All bedroom communities do is ask for facilities like parks and entertainment. If a railroad comes in, so will other industries."

Herb Kai, who operates Kai Farms near the proposed site, said he was born and raised in southern Arizona. As a farmer and a businessman, he said he realizes the need for this project. He just wishes it could be built somewhere else.

"This could have many negative effects including on the groundwater, it could be contaminated," he said. "... Union Pacific has enough income it can afford to build it somewhere else - anywhere it won't affect so many landowners." - Kris Walkinshaw, The Eloy Enterprise, Casa Grande Valley Newspapers Inc.

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CPR Sees 2007 Profit Missing Estimates

Canadian Pacific Railway Ltd., the country's second-largest railroad, said 2007 profit will rise less than analysts had forecast.

Earnings will be C$4.30 to C$4.45 a share in 2007, the Calgary-based railroad said in a statement today. The company was expected to earn C$4.50 a share in 2007, the average estimate of 11 analysts surveyed by Thomson Financial.

Canadian Pacific, which reported a 21 percent decline in third-quarter profit last month, said operating costs in 2007 will rise as much as 5 percent. Sales will increase as much as 6 percent from 2006 because of higher prices and greater demand, the railroad said.

``Execution of our integrated operating plan is driving increased fluidity on our network and improving our operating ratio,'' Chief Executive Officer Fred Green said in the statement.

The company's 2007 estimates assume crude-oil prices averaging $65 a barrel, an average currency exchange rate of C$1.11 per U.S. dollar and North American economic growth of 2.7 percent.

Canadian Pacific's U.S. shares fell 41 cents to $54.74 at 10:09 a.m. in New York Stock Exchange composite trading. They have advanced 30 percent this year. - Jeff Bennett, Bloomberg.com

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Floodwater Express Hits MHRR Hard

HOOD RIVER, OR -- Floodwaters the past week swamped the Mt. Hood Railroad and left the operation scrambling for a fix just before their holiday season.

The majority of damage is on the railroad's backcountry tracks high up in the county's hill regions.

"The big damage is the landslide just south of Dee," said rail manager Michelle Marquart.

The damage forced the closure of all the railroad operations until Nov. 25. That includes excursion trains, freight hauling, and seasonal events. The Polar Express train was scheduled to begin Tuesday. Instead of taking reservations, Marquart is busy filling out forms.

"I don't think a lot of people realize the economic impact the railroad has on the county," she said.

She was working on damage estimates Monday afternoon to submit to county administrator Dave Meriwether. Those estimates will work up the line to the governor. If the totals for the state come to enough damage, then Oregon and subsequently Hood River County would be eligible for federal disaster relief.

Damage to the operation includes approximately 10 feet of sediment deposited by floodwaters beneath the trestle. Marquart said it appears there was minor damage to the structure itself but the company is bringing in an engineering firm next week to verify it. The estimate for dredging out the Hood River is $300,000.

Approximately 150 feet of track at milepost .5, including ballast and foundation, has been washed out. Repairs include lifting track and filling in with new material. Cost estimates to repair the track are in the range of $20,000 to $30,000.

The waters tore away embankment from approximately 300 feet of track at milepost .7. Repairs would involve bringing in riprap to support both sides at a cost of $25,000 to $35,000.

Land slid under track at milepost 15, which left track suspended in the air over approximately 150 feet. Repairs would include moving the Hood River back to its former east side and rebuilding the approximate 65-foot embankment and relay track.

Marquart said due to existing financial commitments to a federal railroad loan and operations loan, the company is unable to make the repairs. She said without grant funding, the Mt. Hood Railroad would be forced into bankruptcy.

The company employs 60 to 70 workers and provides freight service for lumber, fruit, and propane from the mid-valley region. She estimated they contribute $6 to 7 million annually to Hood River County's economy. She said they hope to be able to still do some Polar Express runs this season as they will focus first on repairs between Hood River and Odell.

"We haven't cancelled (the Polar Express run) for the evening of Nov. 24," she said. "We remain hopeful we can complete some repairs by then."

So far the railroad has had to cancel 12 Polar Express runs, two brunch, two dinner, and four excursion trains in addition to its freight hauling. - Sue Ryan, The Hood River News

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Island's Rail Yard Plan Wins In Court

ALAMEDA, ca -- The city scored a legal victory this week in its efforts to convert an old rail yard into an open-space park when a Superior Court judge upheld the validity of a 1924 contract allowing it to buy the land for less than $1 million.

The property is slated for open-space use under terms of a ballot initiative that city voters approved in 2002. The Alameda Belt Line railroad ended its operations in 1998.

But the railroad still owns the 22-acre site, and the conversion has been delayed by legal maneuvers, which may not end anytime soon.

Bill Bitting, an attorney for the railroad, said an appeal of the ruling is likely.
Superior Court Judge Jon Tigar issued a final decision in the case Monday. It did not differ much from a tentative decision he issued in August, before both sides were allowed to provide additional arguments to bolster their claims.

City officials hailed the final decision.

"It is a decision of tremendous importance to the people of Alameda," said Assistant City Attorney Donna Mooney.

In a written statement, Mayor Beverly Johnson said she is "delighted" the decision went in the city's favor.

"The belt line is an important asset and the city has already identified and allocated the money to purchase this property now," the mayor's statement said.

The legal dispute centered on a 1924 contract that allowed Alameda Belt Line to purchase the railroad, which the city built in 1918 but never operated, for $30,000. The contract also allowed the city to buy the belt line back, if it chose to do so, for the original price plus the value of improvements.

Alameda resident Jean Sweeney unearthed the long-forgotten contract while doing research for her efforts to preserve the old rail yard for open space in 1999.

She said Wednesday she is happy with the judge's decision, though it will be some time before the park comes to fruition.

"It's always a little bit farther off," she said. "One more step, one more step, one more step. That's the way it is."

Judge Tigar ordered the railroad to sell its property to the city for $966,027. The City Council allocated the money needed for such a purchase in October.

The railroad has said its property is worth about $25 million, and Bitting said Wednesday an appeal is "most likely."

A key part of the legal argument against the city is that the contract was designed to let it buy the property back if it intends to operate a railroad - but not for something like a park.
In October, Bitting questioned why city officials would proceed with plans to buy the property and suggested the legal battle is in its early stages.

"We're only in the third inning or fourth inning," he said at the time. - Kelly Rayburn, The Alameda Times-Star

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CN Opens $4 Million Grain Container Facility In Alberta

EDMONTON, AB -- The Canadian National Railway announced Thursday the opening of its Edmonton Grain Distribution Centre. The new facility will make it easier and more cost-effective for specialty crop growers on the western prairies to ship their high-value grains and oilseeds in containers to overseas customers. CN invested $4 million in the facility, which is expected to handle 20,000 containers per year.

Previously, western prairie farmers had to first load their high-value crops into covered hopper cars and send the cars to Vancouver, where they are emptied and the grain transferred into containers. The stuffed containers are then trucked to dockside, for loading onto ships.

Now, these grains, grain products and oilseeds can be transferred from the farm truck directly into containers at the new Edmonton facility, removing an entire step in the logistics chain for many shippers. Farmers from outside the Edmonton region will have the option to move their products by railcar to Edmonton, and transferring the grain at the new facility.

“This will make the prairie supply chain more competitive in world markets,” said Peter Marshall, CN senior vice-president, Western Region. “Eliminating an initial hopper car movement will lower many shippers’ costs. But even if the product comes into Edmonton by rail, farmers will benefit by stuffing the containers in Edmonton instead of Vancouver. There are better rail connections and less congestion here, in addition to eliminating the need to truck product through Vancouver.”

Most Western Canadian grain moves from the prairies in bulk hopper cars. Increasing percentages of higher-value, human-consumption specialty crops, such as lentils, beans, and peas, as well as processed grain products such as malt and alfalfa pellets, are now moving overseas in containers. Grain shippers like using the containers for their higher-value products because this allows them to segregate their product from lower-value bulk grains, thereby ensuring they receive higher prices. Shippers are also able to meet customer requirements for strict product identification, especially important for human foods, also helping them capture higher prices.

“CN recognizes the western Canadian grain industry is evolving,” said James Foote, CN executive vice-president, Sales and Marketing. “The sector is moving towards these higher-value specialty crops and processed grain products. The Edmonton Grain Distribution Centre, facilitates that transition and generates economic value to prairie farmers.

“While the vast majority of grain shipments will continue to be in bulk hopper cars,” added Foote, “this new facility gives the industry more shipping choices and competitive options for certain crops and grain products. Shippers will also be able to use our CN WorldWide freight forwarding services to obtain one single rate quote to cover the entire move, from the home farm to the final market in Asia. All this will allow prairie farmers to capture new and higher-return markets.”

The new facility is located in northwest Edmonton, just north of the Yellowhead Highway, providing easy truck access and good connections to CN’s local handling and intermodal yards. It consists of a 20-car capacity siding, with an enclosed loading facility allowing the transfer of grain from either trucks or railcars. Shippers will be able to clean containers in the facility, and insert new liners before loading. An on-site container lift and two tilt tables, with integrated scales, will accommodate both 20- and 40-foot containers – the standard shipping sizes. The loading system will be computerized to achieve desired shipping weights, and a fully computerized inventory management system will allow CN and shippers to effectively manage the flow of containers in and out of the Centre.

Most of the 20,000 containers expected to be handled at the facility each year will initially flow to the port of Vancouver for export overseas. Beginning in the fall of 2007, containers will begin to move to the new container terminal now being built in Prince Rupert. This will give western Canada’s farmers yet another outlet to world markets. And, CN will continue to service the existing Vancouver-based container stuffing services, preserving that shipping option. - Kelli Svendsen, CN News Release

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Amtrak Launches "Unaccompanied Minors" Amtrak Getaway Sweepstakes

WASHINGTON – Amtrak is teaming up with Warner Bros. Pictures and Warner Home Video for the launch of an exciting new holiday movie promotion with the “Unaccompanied Minors” Amtrak Getaway Sweepstakes.

Now through December 31, Amtrak passengers can enter for a chance to win four Amtrak round-trip coach tickets to anywhere Amtrak travels and a Warner Home Video DVD library consisting of 15 Warner Bros. Home Video titles. If you miss out on the Grand Prize, there is still a chance to win one of five First Prizes of an Acela Express model train set or one of 10 Second Prizes, consisting of an Amtrak duffel bag, cap and an Amtrak Red Cap teddy bear. To enter, visit www.unaccompaniedsweeps.com .

About The Movie

It’s Christmas Eve and a huge blizzard has shut down the airport. Among the stranded travelers, five “Unaccompanied Minors” are determined to max out their holiday by running wild inside and outside the airport. Without a parent in sight, the rambunctious five outwit and outrun an uptight airport official and his gullible assistant. The kids turn Christmas at the airport into holiday pandemonium and, along the way, prove that the holidays aren’t about where you are, but who you’re with. “Unaccompanied Minors will be in theaters December 8. - Amtrak News Release

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BNSF Issues Weekly PRB Coal Update For November 16, 2006

PRB Train Loadings Exceed 2005 Average for 41st Week

Average BNSF daily train loadings for the Powder River Basin (PRB), including Wyoming and Montana mines, totaled 48.9 trains per day the week ended November 12, 2006, compared with an average of 46.4 trains per day for the week ended November 13, 2005.

Loadings were affected by scheduled track maintenance as well as weather. Mine issues reduced loadings by an average of 3.1 trains per day for the week ended November 12, 2006. Despite those issues, last week was the 41st week of 2006 in which PRB average daily coal train loadings have exceeded those for the same 2005 week. For those 41 weeks, average daily train loadings have exceeded those of the 2005 week by 11.6 percent.

Year-to-date through November 12, 2006 BNSF has loaded a total average of 49.4 trains per day in the PRB, up 10.0 percent from the 44.9 trains loaded through the same period in 2005.

Systemwide, BNSF has loaded a total of 247.2 million tons of coal through November 12, 2006, up 10.8 percent from the 2005 year-to-date total of 223.1 million tons.

Construction Projects Update

Crews are ballasting and surfacing 7.6 miles of new second main track between Moorcroft and Rozet, Wyoming, and the track is scheduled to go into service later this month. This trackage will improve the flow of empty and loaded coal trains to and from the northern Powder River Basin.

About five miles of grading has been completed for 14.6 miles of new third main track between Donkey Creek and Caballo, Wyoming, and grading work continues. Track-laying is scheduled in March 2007, and the additional third main track is scheduled to go into service in May 2007, with additional work on crossovers to follow; that work will allow greater flexibility in use of the new main track.

Grading is about 30 percent complete on 10 miles of new second main track between Mason and Berwyn, Nebraska. Grading is scheduled for completion later this year, with track laying scheduled to begin in February 2007. The new track will provide additional capacity east of Alliance, Nebraska.

Track construction projects scheduled through the winter are subject to weather conditions. - BNSF Service Advisory

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BNSF Meets With Native American Tribal Leaders

Thursday, Nov16, BNSF Railway Company employees met with Native American Tribal leaders to continue discussions on employment, promotion and partnerships with BNSF. The practice of meeting annually with tribal leaders was initiated three years ago. The sessions are an open exchange of ideas, shared interest and discussions of barriers that need to be examined and overcome in employment and other areas of mutual interest.

The meeting also included BNSF’s Council of Native Americans Affinity Group and ties in with BNSF’s annual Heritage Day Celebration in November.

Ed McFalls, assistant vice president, Human Resources and Diversity, led the presentation. "What started three years ago as a discussion with a couple of tribal leaders is developing into a partnership to address issues important to you and to BNSF’s diversity initiative," McFalls said as he addressed about 33 tribal leaders. "I’m encouraged by your presence, and I thank you for your dialogue and your honesty."

"I feel this discussion is a major step forward," said Dan C. Jones, chairman, Ponca Tribe of Indians of Oklahoma, Ponca City, Oklahoma. "It was exciting to hear about the employment opportunities BNSF has for American Indians. BNSF also should be looking into economic development opportunities with tribes, which would go hand in hand with recruiting for the BNSF workforce."

Tribal leaders also attended BNSF Heritage Day Celebration. The event was brought to BNSF in part by the Council and the University of Texas, Arlington. This year’s special guest speaker was Billy Mills, 1964 Olympic Champion and motivational speaker. Mills delivered one of the most inspirational messages surrounding the importance of global diversity, honesty, integrity and the value of hard work. - BNSF Today

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Thomas F. McLarty Elected To Union Pacific Board Of Directors

Union Pacific Corporation (NYSE: UNP) Thursday announced that Thomas (Mack) McLarty, 60, has been elected to the company’s board of directors. This will expand the size of the Union Pacific’s board to 11 members.

Mr. McLarty is president of Kissinger McLarty Associates, a partnership with Dr. Henry Kissinger that provides strategic advisory services to multinational companies. Mr. McLarty is also Chairman of McLarty Companies, a fourth-generation family transportation business based in Little Rock, Arkansas. From 1992 to 1997, Mr. McLarty served in several senior positions in the Clinton White House, including Chief of Staff to the President, Counselor to the President, and Special Envoy for the Americas. From 1983 to 1992, Mr. McLarty served as Chairman and Chief Executive Officer of Arkla, Inc., a Fortune 500 natural gas company.

"Mack has a distinguished record of business leadership and public service that will bring great insight and experience to our board," said Jim Young, Union Pacific’s president and chief executive officer. "We are very pleased that he has agreed to serve as a director of our company."

Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada’s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America’s premier rail franchise. - James Barnes, UP News Release

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Grupo Mexico To Fight Antitrust Ruling

MEXICO CITY, MEXICO -- Mexican mining and railroad company Grupo Mexico said Thursday it will fight the federal antitrust commission's decision to uphold a previous ruling that blocked the company's plans to merge two railways.

The company "will take all legal means at its disposal" to fight the ruling, Grupo Mexico said in a filing with the Mexican stock exchange.

In November 2005, Grupo Mexico said it would merge its Ferromex unit with Ferrosur, controlled by multibillionaire Carlos Slim. The antitrust commission rejected the proposed merger in June, and Grupo Mexico appealed.

The commission rejected the appeal on Wednesday, arguing that a merger would have led to excessive concentration in the railroad industry to the detriment of consumers and competitors.

Grupo Mexico has argued it must expand in order to compete with U.S.-based railroad Kansas City Southern.

Kansas City Southern last year gained full control of local railway TFM, which runs through the heart of Mexico's industrial region to the border town of Nuevo Laredo from the Pacific port of Lazaro Cardenas. - The Associated Press, The Houston Chronicle

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Judge Hears UP Case On Birth Control

ST. LOUIS, MO -- Union Pacific Railroad defended its policy of not covering contraceptives in its health care plan in federal appeals court here in a lawsuit that could have far-reaching impact on other businesses.

A federal judge in Omaha, Nebraska ruled in June that Union Pacific Corp. discriminated against women by denying them coverage of contraceptives. The lawsuit, backed by Planned Parenthood, alleges the policy violates the federal Civil Rights Act.

U.S. Judge Pasco Bowman speculated during the hearing at the U.S. 8th Circuit Court of Appeals that a ruling against Union Pacific might mandate all companies to provide coverage for contraceptives.

"You're talking about a huge decision that would affect a lot of companies besides Union Pacific," Bowman said.

The lead plaintiffs in the class-action were two Union Pacific employees: Brandi Standridge, a 25-year-old trainman and engineer from Pocatello, Idaho, and Kenya Phillips, a 32-year-old engineer who lives near Kansas City, Missouri.

Their attorney Roberta Riley told the panel of three judges Thursday that the women were discriminated against when denied coverage for contraceptives.

Riley argued that all men at Union Pacific got coverage for drugs that protected them against health risks. Only women were denied coverage of drugs that would help them avoid pregnancy.

Union Pacific attorney Donald Munro argued that the policy didn't discriminate against women at all. He said all employees were denied contraception coverage, both men and women.

Munro said the health care plan did provide contraceptive coverage for women who faced higher health risks from pregnancy, such as those with high blood pressure or other conditions.

Riley responded that access to contraceptives was crucial for the health of all women. She said without contraception the average woman would become pregnant between 12 and 15 times in her lifetime.

Munro argued that coverage is denied only to employees who wanted to buy contraception for "family planning" purposes, which was not a health necessity.

Judge Bowman seemed skeptical that pregnancy was a health risk to be avoided in and of itself.
"It's a traumatic thing, we all know that," he told Riley during her argument. But Bowman noted that most women deliver children and soon recover to a healthy state.

The U.S. Centers for Disease Control "said contraception is one of the top 10 public health accomplishments of the 20th century because it saves women's lives," Riley responded.

The three-judge panel will consider the case before ruling on the appeal. Other judges on the panel were Kermit Bye and Raymond Gruender.

Omaha-based Union Pacific Corp. operates Union Pacific Railroad. It is the largest railroad in North America, covering 23 states. - Christopher Leonard, The Associated Press, The Houston Chronicle

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Santa, Where's Your Sleigh? It's A Mad Dash To Get The Latest Videogame Consoles Across The Pacific

Sony's new PlayStation 3 game console hits U.S stores in mid-November. It will have breathtaking graphics and a price to match: $500, and that's for the cheaper of the two models debuting. Two days later Nintendo will roll out its rival product, the Wii. It doesn't have the sleek graphics of the Sony, but it has a fun controller and is less than half the price.

The prospect of two new advanced consoles from the Japanese giants has videogamers twitching their thumbs, but the odds are slim they'll find one right away. Sony has promised to deliver only 400,000 consoles to the U.S. by the launch date, with another 600,000 to come by the end of the year. Nintendo is favoring the U.S. market a bit more, promising American consumers they will get the bulk of the 4 million units Nintendo plans to sell worldwide by Dec. 31.

But the real game has already begun on the sprawling piers of southern China's ports, such as the one in Shenzhen. Huge container vessels load up there with Chinese-made electronic goods for the ten-day voyage to Los Angeles, Seattle and San Diego.

The headache for Sony and Nintendo will be finding enough space on those vessels. "During the days leading up to Thanksgiving demand surges and holds are full," says Atsushi Matsumoto, an official at Nippon Yusen, Japan's biggest operator of container vessels.

From early July to the end of November vessel utilization can reach 100%, says Robert F. Sappio, a senior vice president in charge of transpacific freight at Neptune Orient Lines, the world's eighth-largest container ship operator. "It can be tough for shippers to get all the space they want exactly when they want it," Sappio says. There is also a risk of delays at U.S. ports, he notes, because of bottlenecks at the interchange between ports and the railroad.

It should have been easier for Sony. Had it kept to a planned launch date earlier this year for the function-laden PS3, it could have had a head start on Nintendo's peppy alternative, and it would have avoided the Christmas freight rush. But in September Sony confessed it couldn't get its hands on enough blue-laser diodes for the console's high-capacity Blu-ray disc player, forcing it to scale back production and halve its U.S. delivery target for the remainder of the year to 1 million units.

Even that stunted shipment schedule leaves the Japanese consumer electronics giant needing perhaps 500 standard 20-foot containers to get its consoles across the Pacific before Christmas, assuming the PS3 is packed in the same way as the PlayStation 2. If that many are not available, Sony could opt for air freight--quicker but a lot more expensive. Sixty Boeing 747 cargo jets would probably do the job. Both Sony and Nintendo are tight-lipped about their shipping plans.

If ship holds are too full or the boats are too slow and Sony can't get its hands on enough 747s, it can always call on the Russians. Volga-Dnepr, a Moscow air charter service with a fleet of giant Antonov 124 jets, has helped Sony out of tight spots twice before. In 2000 the Russian cargo jets, dubbed the Ruslan, after a mythical warrior who battled wizards and saved Kiev from an invading horde, ferried PlayStation 2 consoles to fill a gap in supplies to Europe and last year pitched in during the Christmas rush. For the time being, at least, Sony seems to be keeping that option in its pocket. "We still haven't received a call from Sony," says Shinichi Omaru, an agent in Japan for the Russian cargo jet company. - Tim Kelly, Forbes

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Krauss, Santa Train To Deliver 15 Tons Of Gifts To Children

KINGSPORT, TN -- Alison Krauss will be leaving the station Saturday to help deliver 15 tons of gifts, candy and clothes to thousands of children in Appalachia.

The bluegrass star will be riding the 64th annual Santa Train charity express as it rumbles along a 110-mile course route between Kingsport and Pikeville, KY. The train will make stops in 13 small towns in southern Kentucky and western Virginia before arriving in Kingsport in time for the Christmas parade.

Past participants include Naomi Judd, Patty Loveless, Travis Tritt, Kree Harrison, Rebecca Lynn Howard and scores of politicians.

Organizers say Krauss' participation is especially fitting because her musical roots are so steeped in the traditions of this mountain region.

The trip is sponsored by railroad CSX Transportation of Jacksonville, FL; Food City Grocers of Abingdon, VA; and the Kingsport Area Chamber of Commerce.

CSX President and Chief Executive Officer Michael Ward said the Santa train "deeply connects (the company) with the people in the communities through which we operate."

"Having Alison Krauss with us this year," he said, "makes it all the more special for everyone involved." - The Associated Press, The Houston Chronicle

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Transit News

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Omaha Streetcar Supported By Eager Developers

OMAHA, NE -- Several downtown developers jumped aboard the proposed streetcar plan and called on Mayor Mike Fahey to start laying the track for the proposed $55 million project.

"This puts Omaha on the map," said Ben Proctor, sales manager for Riverfront Place, the soon-to-be-opened high-rise condo project north of Qwest Center Omaha.

Developers and their representatives signed statements of support that were delivered Wednesday to Fahey and members of the Omaha City Council.

"Such a system would add an invaluable asset to our city and would serve as a catalyst for continued revitalization of our urban core," said the statement signed by 30 residential developers and their sales agents.

The developers themselves stand to gain from such a project. They see a streetcar line as an important amenity to help attract people to their downtown condos and apartments.

The enthusiasm for a proposed streetcar route downtown is tempered by uncertainty over how to pay for the project.

Fahey and his department heads are poring over the financing plan contained in the privately funded study of the streetcar line. That study was financed by the nonprofit Heritage Services, which includes many of Omaha's top corporate leaders.

A decision to go ahead with the streetcar proposal or shelve it should come by the end of the year, Fahey has said.

The 3.5-mile streetcar loop would connect Creighton University, the arena and convention center, the Old Market and 16th Street.

Jim Posey, one of the partners in the Kimball Lofts project near 15th and Jones Streets, said a streetcar line would lead to a substantial expansion of downtown projects. Posey and others said it would not only benefit downtown dwellers but also attract new corporate employers.

"There is probably no debate on whether it would enhance downtown and would help snare some large employers," said Michael Brannan, one of the developers of jLofts at 13th and Jackson Streets.

The Heritage Services study suggests development downtown and in the north downtown area will "muddle through" without a modern streetcar line and emerge as "a truly great downtown" with one. A streetcar line would stimulate residential, commercial and office construction, according to the study, based on the experience of other cities.

The financing could be the stumbling block, Brannan said. "The numbers still have to add up," he said.

The financing plan is based on an anticipated "streetcar effect," with development stimulated in a three-block zone on either side of the track. The plans calls for creation of a tax increment financing district, with most of the property tax revenue generated by the new development going to pay for the streetcar line.

Such a financing plan could conflict with developers who also depend on tax increment financing, or TIF, to pay part of their site preparation and construction costs.

"These condo projects would not be done without the TIF," Brannan said.

The Heritage study states that the streetcar line would stimulate enough development to provide TIF financing for the streetcar line, as well as other downtown projects.

Troy Strawhecker, who is overseeing the effort to build the 32-story Wall Street Tower on the site of the old Union Pacific headquarters at 14th and Dodge Streets, made his support for a streetcar line conditional.

The financing must be "realistic, equitable and sustainable," Strawhecker wrote.

Mutual of Omaha, which recently unveiled plans for 300 condos, 300 apartments and a major retail development, is not part of the pro-streetcar campaign.

"We are supportive of the concept," said Mutual spokesman Jim Nolan. "But we don't have all the information."

A second phase of the proposed line could extend west from downtown past Mutual to the University of Nebraska Medical Center. - C. David Kotok, The Omaha World-Herald

==================================================

Giant Boring Machine Finishes Tunnel For New LA Light Rail Line

LOS ANGELES, CA -- A giant boring machine has completed a 1.7-mile tunnel for the $898 million Eastside extension of the metropolitan region's commuter light rail system, transit officials said Thursday.

The German-built 344-foot machine dubbed Lola began burrowing the tunnel for eastbound trains in February and reached the end Tuesday in Boyle Heights. A twin machine nicknamed Vicki is expected to finish the westbound tunnel in mid-December. Each tunnel has a diameter of 21 feet.

The Metro Gold Line Eastside Extension will add six miles of line and eight stations from Union Station east through Little Tokyo, the Arts District, Boyle Heights and East Los Angeles. Most of the route will be on the surface but the tunnels were needed because Boyle Heights streets are too narrow for rail cars.

The completion of the first tunnel was celebrated by local officials at its east portal.

"I grew up three blocks just down the street and wouldn't it have been great as a young boy if I could walk down the street, get on the Gold Line and explore my city," said City Councilman Jose Huizar, who represents the area.

The extension is expected to be completed in 2009.

The region's resurgent light rail system, once dismissed by critics as folly, includes the current Gold Line to suburban Pasadena, the Red Line subway to Hollywood and the San Fernando Valley, the Blue Line to Long Beach and the east-west Green Line across communities in the southern portion of the county.

Ground has also been broken for a $1 billion line from downtown through the mid-city to western communities. - The Associated Press, The San Jose Mercury News

==================================================

Cost, Design Doomed Rival Plan

DENVER, CO -- Ferd Belz watched wistfully Wednesday as a competing team won the right to negotiate exclusively to redevelop the city's iconic Union Station.

Belz, president of Cherokee Denver, served as managing director of Union Station Partners, which proposed a redevelopment plan that failed to trump the vision proffered by the competing team, Continuum Partners/East West Partners.

In the end, he said, his team's proposal wasn't selected because of skepticism about its cost and design.

"I'm very proud of the work we did, and I think we have the better plan," Belz said. "But there's no question that our vision differs (from Continuum/East West)."

Union Station Partners' vision included a $495 million transportation and public-space component that was $75 million more costly than the one proposed by Continuum/East West. Union Station Partners wanted to route heavy rail, commuter rail and some light rail underground.

"That approach would have required us to put all of this money in the ground before we could build private development," said John Huggins, Denver's economic-development director. "That $75 million cost difference would have grown because interest on it would have accrued, so pretty soon, we're talking about $120 million or $130 million more."

Said Peter Park, Denver's director of planning, "The (Continuum/East West) proposal delivers all the very important elements early on and has more flexibility to it."

The cost of building extensive underground infrastructure drove Union Station Partners to propose more dense commercial and residential development than its competitor, Huggins said.

That additional development - which would have included high-rise structures of up to 45 stories - wasn't the best fit for those more concerned about aesthetics.

"It certainly was an excellent proposal," said Ellen Ittelson, who oversees downtown planning for the city. "But the Union Station Partners plan varied from the master plan in its urban-design philosophy."

The outcome of the months- long selection process was disappointing, said Bill Mosher of Trammel Crow, a member of the Union Station Partners team.

"To spend that much time and put your full effort into something requires full commitment to the vision," he said. "Of course you want to win." - Christine Tatum, The Denver Post

==================================================

Council Mulls Using Streetcar Money For Suburban Bus Shelters

SEATTLE, WA -- One year after the Metropolitan King County Council agreed to spend $7 million on a new maintenance barn in Seattle for Metro's waterfront streetcars, some council members are expressing interest in spending that money instead on bus shelters in the suburbs.

Councilman Dow Constantine has written a letter to the Seattle City Council asking for a status report on the barn project — a clear warning that the county's financial commitment to the project could be in jeopardy if the city doesn't move on it soon.

Developer Greg Smith was set to build the barn as part of a larger condominium project in Pioneer Square, across from Occidental Square park. But he pulled out of the deal in June, citing city delays in granting him a zoning change that would allow him to erect a taller building.

The deal was struck last November. Along with the county's $7 million commitment, the city and Port of Seattle each pledged $1 million.

At the time, there was urgency to find a replacement for the streetcar barn near Pier 70 so the Seattle Art Museum could tear it down and move forward with its Olympic Sculpture Garden as designed.

The old barn has been torn down, and service on the streetcar line was suspended a year ago with the intent to bring it back — using the new maintenance facility — by the 2007 tourist season. Meeting that target date is no longer possible.

The waterfront streetcar would have to be taken offline again — perhaps for as long as a decade — during construction on the Alaskan Way Viaduct.

Now, given that the barn project has not broken ground, Councilwoman Julia Patterson is wondering whether it could be finished before viaduct construction begins.

If it can't, the $7 million essentially would be paying for a trolley garage, said Jon Scholes, Patterson's chief of staff. Patterson, who opposed the $7 million expenditure last year, was unavailable for comment Tuesday.

"The case was made last year when the council took action that we could have this thing built in 18 months, and therefore have a window of opportunity of one or two years where we could run the trolley along the waterfront," Scholes said. "That window is now closed."

Three City Council members — Peter Steinbrueck, Nick Licata and Jan Drago — responded to Constantine's letter, asking the county to keep its $7 million earmarked for the trolley barn.

"We plan to move forward with this project in 2007," their letter says. - Stuart Eskenazi, The Seattle Times

==================================================

THE END

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Subject Written By Date/Time (PST)
  Railroad Newsline for Friday, 11/17/06 Larry W. Grant 11-17-2006 - 04:36
  test post -- ignore delete 01-28-2017 - 18:31
  Re: test post -- ignore delete 01-31-2021 - 17:20


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