Rail News
Kansas City Southern de Mexico Promotes Aguileta Gutierrez
September 2nd, 2010Kansas City Southern subsidiary Kansas City Southern de Mexico, S.A. de C.V. (KCSM), on Aug. 31 announced the promotion of Edgar Aguileta Gutierrez from associate general counsel and alternate corporate secretary to senior associate general counsel and alternate corporate secretary.
“Edgar has demonstrated exceptional capability over the last several years and this is a well deserved promotion,” said Kansas City Southern senior vice president and chief legal officer William J. Wochner.
Jose Zozaya, KCSM president and executive representative, praised Aguileta as well, saying, “His efforts have yielded many positive outcomes for our company, and we look forward to his continued leadership.”
Aguileta joined the company known today as KCSM in 2001, after eight years as an associate with the Arroyo, Galindo y Lara, Abogados law firm. He also worked as an assistant professor of civil and commercial litigation at Instituto Tecnológico Autónomo de México (ITAM). He holds a graduate degree in commercial, corporate, and civil law from the Universidad Panamericana and a bachelor’s degree in law from ITAM.
Gulf & Ohio To Acquire Lancaster & Chester
September 2nd, 2010Gulf & Ohio Railways, Inc. (G&O), headquartered in Knoxville, Tenn., intends to acquire South Carolina’s Lancaster & Chester Railway Co. (L&C), the two have announced. The deal is expected to close in November of this year, pending Surface Transportation Board approval of the transaction.
“We consider the Lancaster and Chester Railway Company to be one of the premier shortlines in the southeast,” said Pete Claussen, chairman of the board of Gulf & Ohio. “We look forward to continuing its tradition of high quality service.”
Crandall Bowles, chairman of the board of The Springs Company, which owns and oversees the operations of the L&C, said that the company would continue to work with Gulf & Ohio to attract rail customers to the area.
Gulf & Ohio already owns several shortlines in the southeast. In addition, its Knoxville Locomotive Works subsidiary provides repairs to EMD locomotives and also sells and leases locomotives.
The L&C, based in Lancaster, South Carolina, was established in 1896 by a member of the Springs family, who acquired a failed predecessor at auction, according to a history on the L&C’s website. The shortline more than doubled in size in 2001, when it signed a lease purchase agreement with Norfolk Southern for 30.8 miles of line from Catawba Junction to Kershaw, S.C. Its primary traffic includes agricultural products, building supplies, chemicals, minerals, and steel.
IBM To Supply Asset Management System to KiwiRail
September 1st, 2010IBM and New Zealand’s KiwiRail recently signed a contract whereby the technology firm will provide KiwiRail Network with software and services to improve the visibility and management of its tracks, bridges and other network assets and thus improve the speed, safety, and reliability of its rail service.
Maximo, IBM’s enterprise asset management solution, will deliver information on the condition of the 4,000 kilometers of railway track as well as bridges, rail equipment, and signals. This will give KiwiRail maintenance crews access to up-to-date information on the assets as well as job plans, work-order tracking, and service requests across the lines.
“Our rail network needs to be updated with 21st Century technology to create a more economically vibrant transport system for New Zealand,” said Rick van Barneveld, General Manager, KiwiRail Network. “Advanced business analytics will provide proactive, accurate analysis and reporting of network assets in real-time to help us manage our resources efficiently.”
Over the next year, IBM Global Business Services will apply IBM Maximo enterprise asset management and IBM Cognos business analytics software to increase the visibility of information and improve the manageability and efficiency of its network assets.
“IBM’s software and services will help KiwiRail improve how it manages the assets which make up its rail network, to improve the speed, safety and reliability of its rail service,” said Phill Patton, General Manager Sales, IBM New Zealand.
IBM has partnered with New Zealand businesses Certus Solutions and Cortell to provide this solution to KiwiRail.
DOT Announces Design Standards for High-Speed Rail Cars
September 1st, 2010On Aug. 31, U.S. Transportation Secretary Ray LaHood announced new uniform technical standards for the manufacture of high-speed intercity passenger rail cars. The first technical standard will apply to bi-level cars. Similar standards for single-level passenger rail cars are expected to be adopted by the end of the year.
“This is a milestone in the history of rail transportation,” said Federal Railroad Administrator Joseph C. Szabo. “These standardized bi-level passenger rail cars will be able to operate nationwide and are compatible with existing equipment.” He also said that a common design will make it easier to train maintenance personnel, stock parts, and perform repairs, thus reducing costs.
The standards envision cars designed to accommodate entry and departure from low-level platforms and to be Americans with Disabilities Act -compliant.
The establishment of technical standards for high-speed rail operations is required by the Passenger Railroad Investment and Improvement Act of 2008. The standard was developed by the Technical Subcommittee of the Section 305 Next Generation Equipment Committee, whose members include the Federal Railroad Administration, Amtrak, and state departments of transportation. The DOT said the subcommittee also received input and participation from rail industry manufacturers, freight railroads, and transportation associations.
Foster, Portec Extend Time To Complete Merger
August 31st, 2010Rail equipment suppliers L.B. Foster and Portec Rail Products said they agreed to extend to Dec. 30 the deadline to complete their pending merger in which Foster is buying Portec’s stock for nearly $115 million.
Foster also said it thinks that divesting some rail joint manufacturing assets at a Portec factory could satisfy concerns of the Department of Justice’s Antitrust Division so that the DOJ would approve the merger.
Foster and Portec are both based in Pittsburgh, Pa., and, while Foster markets a range of products to other industries, both sell a number of rail products. Foster previously said the DOJ was concerned that a combination of the two rail supply manufacturers “would have an anti-competitive effect with respect to the insulated bonded rail joint product.”
When they first announced their deal in February, Foster said it would pay $11.71 a share in cash. Portec subsequently valued the transaction at $114 million, counting both outstanding shares and those issuable to outstanding options.
With this latest extension of the terms to yearend, from Aug. 31, Foster also agreed to raise the share price to $11.80, which puts the deal value close to $115 million. And Foster agreed to pay Portec $2 million if the transaction does not close by Dec. 30.
As of Aug. 30, the companies said 7,784,297 shares of common stock had been tendered and not withdrawn from the offer. Those, along with 185,500 shares that Foster already owns, make up 82.96 percent of outstanding common shares.
But the companies said “the primary obstacle” to finishing the deal has been the DOJ’s antitrust concerns, “particularly related to Portec’s domestic joint business. Although there can be no assurance that L.B. Foster will satisfy the DOJ’s antitrust concerns, L.B. Foster believes the DOJ should approve the transaction if assets relating to the joint business of Portec’s Huntington, W.Va., facility are divested to a viable buyer.”
- John D. Boyd, The Journal of Commerce.
Harsco Announces New Rail Equipment Orders
August 31st, 2010Harsco Corporation (NYSE: HSC) on Aug. 30 announced that its Harsco Rail unit had received new orders totaling $13 million. The company will be supplying equipment to both U.S. and overseas customers.
Harsco said three railroads in the United States had ordered its new drone tampers. These units incorporate two-way wireless Ethernet technology to work behind a conventional lead tamper as an unmanned, fully automated chase vehicle that can tamp roadbed without an operator aboard. Delivery will begin later this year and continue into early 2012.
The company will build a Mark VI railway ballast tamper for the 1,700-mile Bangladesh Railway system to support the country’s continuing track improvement and expansion programs. The Mark VI tamper provides automatic leveling, ramping, and superelevation of track, the company said. The unit will be built in Harsco Rail’s U.S. production facilities and is scheduled for delivery in 2011.
An order has been received as well from Liberia for a rail grinder to perform ongoing rail maintenance of industrial railway operations. The rail grinder is also scheduled to be delivered next year.
“These latest orders reflect our focused efforts for maintaining a strong and balanced pipeline and expanding both our international reach and technological capabilities,” said Harsco Rail president Scott Jacoby.
FRA Proposes Regulatory Changes To Address Safety of Concrete Crossties
August 31st, 2010The Federal Railroad Administration (FRA) on Aug. 26 published in the Federal Register a notice of proposed rulemaking (NPRM) with regard to the agency’s plans to amend the Federal Track Safety Standards to address the safety of concrete crossties.
The Rail Safety Improvement Act of 2008 (Pub. L. 110-432, Division A), enacted in the wake of an Amtrak derailment in Washington State in 2005, mandated the promulgation of regulations for concrete crossties. Section 403(d) of the RSIA specified that the Secretary of Transportation, in developing regulations for track Classes 1-5, could address the following:
- limits for rail seat abrasion;
- concrete crosstie pad wear limits;
- missing or broken rail fasteners;
- loss of appropriate toeload pressure;
- improper fastener configurations; and
- excessive lateral rail movement.
The FRA’s planned regulations would cover these issues and would in addtiion require automated inspection of track constructed with concrete crossties.
Written comments on the NPRM must be received by October 12, 2010. No public hearing is planned at present, but if the FRA receives a specific request for a public, oral hearing before Sept. 27, 2010, one will be scheduled and FRA will publish a supplemental notice in the Federal Register to inform interested parties of the date, time, and location of any such hearing.
For further details of the background for the regulation and the process involved in developing the proposed amendments, as well as the text of the proposed new regulations themselves, consult the agency’s NPRM. The document also provides specifics on submitting comments for consideration.
McNeely Named CFO of FreightCar America
August 30th, 2010The board of directors of FreightCar America, Inc. (NASDAQ: RAIL), has appointed Joseph (Joe) E. McNeely as the company’s chief financial officer, effective September 13, 2010. McNeely succeeds Christopher L. Nagel, who has left the company by mutual consent.
McNeely, who has spent 10 years in the railcar industry, has 25 years experience in finance and accounting. He most recently served as vice president at Mitsui Rail Capital, LLC, a subsidiary of Mitsui and Company. While working for Mitsui, McNeely focused his efforts on business development and improving asset utilization. Previously, he held positions at GATX Corporation, including vice president finance for GATX Rail and vice president finance and IT for GATX Terminals Corporation.
“Joe will be a great complement to our executive team, as his financial and industry experience will help guide the Company through a period of economic and industry challenges as we position the Company for recovery,” said Ed Whalen, President and Chief Executive Officer of FreightCar America.
More Promotions at KCS
August 30th, 2010The Kansas City Southern Railway Company (KCSR), a subsidiary of Kansas City Southern (KCS) (NYSE: KSU), on Aug. 26 announced two promotions: Mark A. Redd, formerly general manager Southwest Division, has been named vice president transportation for the KCSR network, and D. Morris Godwin, formerly assistant vice president, has been named vice president intermodal and automotive operations.
Redd began his career as a railroader nearly 20 years as a brakeman, then moved into management six years later. He currently serves as the chairman of the operating board for the Port Terminal Railroad Association in Houston, Texas.
“Throughout his career, Mark has served in a variety of leadership positions in network and field operations. As the KCSR network has developed, he has participated in and provided leadership to a number of change management initiatives in addition to supervising the daily operation, so he understands a variety of operational issues and how to solve them,” said KCS senior vice president operations David R. Ebbrecht. “I’m confident that his leadership will help take KCSR to the next level of performance and cost saving measures.”
Godwin, who has over 30 years of transportation experience, mostly in the intermodal business, joined KCSR in 2007. His prior experience included roles at Pacer International, Trism Specialty Carriers, Unicon International, APL and Norfolk Southern.
“Morris has demonstrated exceptional leadership as our intermodal and automotive business has grown. His extensive experience has been invaluable to the development of the KCS International Intermodal Corridor, including the opening of our Rosenberg intermodal facility and the integration of Puerta Mexico,” said KCS executive vice president sales and marketing Patrick J. Ottensmeyer.
Intermodal Hits New 2010 High
August 30th, 2010Major U.S. railroads set a new 2010 peak for intermodal shipments in the week ending Aug. 21, the second straight week of new highs in container and trailer loadings.
The Association of American Railroads said the 236,404 intermodal shipments — originated by the five U.S.-owned Class I carriers and some large regional rail lines that report their totals to the trade group - was up 22.4 percent from the same week last year.
And it was even up 2.6 percent from the 2008 week, meaning that intermodal traffic is running so strong that it has made up the losses since the worst parts of the recession. The latest volume was the strongest for any week since the autumn peak period in 2008, said AAR spokeswoman Lauren Sandberg.
Most of the gain is coming from container shipments, which were up 24.2 percent from a year ago to 202,475 units. However, trailer loadings on rail flatcars continued to rise as well, in contrast to their long-term declining trend, to 33,929 units in the latest week or a 12.4 percent rise from the same week last year.
For the seven days ending Aug. 14, U.S. railroads had originated 233,767 intermodal shipments, of which 199,859 were containers and 33,908 were trailers.
So far, the industry sees little sign that the surge in box traffic on the continent’s railroads has slowed.
At the Intermodal Association of North America, President and CEO Joni Casey said the momentum appears on pace to continue into this fall. “We are seeing the same thing as the AAR data shows - steady, moderate improvement in volumes for all equipment categories, expected to continue thru September at minimum,” she said.
Counting Canadian and Mexican railroads, the AAR said intermodal loadings by major North American railroads rose to 294,493 units last week from 291,386 in the Aug. 14 week, and were up 22 percent from a year earlier.
Small railroads also are seeing gains in box loadings. The RMI RailConnect index that monitors most North American short lines said reporting carriers originated 7,856 intermodal loads in the Aug. 21 week, up from 7,145 a week earlier and 29 percent higher than the same week last year.
Content Sections
More Headlines
- Kansas City Southern de Mexico Promotes Aguileta Gutierrez
- Gulf & Ohio To Acquire Lancaster & Chester
- IBM To Supply Asset Management System to KiwiRail
- DOT Announces Design Standards for High-Speed Rail Cars
- Foster, Portec Extend Time To Complete Merger
- Harsco Announces New Rail Equipment Orders
- FRA Proposes Regulatory Changes To Address Safety of Concrete Crossties
- McNeely Named CFO of FreightCar America
- More Promotions at KCS
- Intermodal Hits New 2010 High
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