Rail News
Natalie Ann Macey Named VP Sales & Marketing for Wood Energy Group
February 3rd, 2012Railroad tie reclamation company Wood Energy Group, Inc., has announced the appointment of Natalie Ann Macey as vice president sales and marketing.
Prior to joining the Banyan Rail Services subsidiary, Macey served as vice president of sales and shipping at Superior Railroad, a railroad tie reclamation company located in Kansas City, Mo. Her prior experience also includes 8 years as vice president of sales at Tampa Crosstie in Apollo Beach, Fl. Macey attended the University of Tampa.
“Natalie is a great addition to the Wood Energy management team,” said Jon D. Ryan, the new president of Wood Energy, in the company’s announcement. “Her expertise will assist us in better serving our existing customers, securing new customers and streamlining our customer service function. We look forward to her contributing to the future growth of Wood Energy.”
Tentative Agreement Between Final Union and Freight Railroads, Averting Strike Threat
February 3rd, 2012The Brotherhood of Maintenance of Way Employes (BMWE), the last of the unions without a ratified contract, has reached a tentative agreement with the major freight railroads, averting the threat of a national rail strike on Feb. 8. The tentative agreement must still be ratified by the union’s members.
The deal with the BMWE, which represents more than 25,000 employees in the current round of national bargaining, follows contract ratifications announced earlier on Feb. 2 by members of the American Train Dispatchers Association and the Brotherhood of Railroad Signalmen. Thus the railroads have now reached agreements with all 13 of the rail unions in national bargaining, and 12 of those agreements have been ratified.
“These agreements demonstrate that voluntary bargaining continues to work in the rail industry,” said A. Kenneth Gradia, chairman of the National Carriers’ Conference Committee (NCCC), the railroads’ bargaining representative, said in the announcement. “The carriers and the unions, with the critical support of the National Mediation Board, have resolved their differences, ensuring they will continue to work together to help drive America’s economic growth today and in the future.”
Canadian Pacific Handles Crude Oil Shipments from New Saskatchewan Transload Facility
February 3rd, 2012Canadian Pacific announced that it is now handling crude oil bound for the northeastern United States and the U.S. Gulf Coast by rail from a new transload facility near Lloydminster, Sask.
The Lloydminster facility is operated by Torq Transloading and serves the transload and transportation needs of NuStar Energy LP. Further expansion is planned in 2012.
“Moving Canadian crude through CP’s North American network is a great complement to our asset base, which includes terminals and a large and expanding fleet of 1,700 coiled and insulated rail cars,” said NuStar President and CEO Curt Anastasio in CP’s announcement. “We believe that moving undiluted heavy Canadian crude by rail to coastal markets is an economically viable solution that brings added value to the end users, as well as the producers in Canada.”
Dispatchers, Signalmen Ratify Agreements with Freight Railroads
February 2nd, 2012Twelve of 13 unions have now ratified contracts with the nation’s major freight railroads, as members of the American Train Dispatchers Association (ATDA) and the Brotherhood of Railroad Signalmen approved new collective bargaining agreements.
The unions together represent approximately 8,600 employees in this bargaining round. They began negotiations with the railroads’ bargaining representative, the National Carriers’ Conference Committee (NCCC), 2 years ago. A presidential emergency board was named in October 2011 to review the outstanding disputes and avert the threat of a strike.
Most of the unions involved in the bargaining have now approved long-term contracts, often by substantial margins. Members of the ATDA, for example, cast 84.5% of their ballots in favor of ratification, according to information on the union’s website.
The last union without an agreement in place, the Brotherhood of Maintenance of Way Employes, did agree to extend the cooling off period until Feb. 8, but no new development has been announced.
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Presidential Emergency Board Named
Cooling-Off Period Starts for Most U.S. Rail Labor
RailAmerica Announces Acquisition Plans
February 2nd, 2012RailAmerica (NYSE: RA) has signed an agreement to acquire Michigan rail operator Marquette Rail LLC for approximately $40 million, subject to customary closing conditions and Surface Transportation Board approval. The company intends to finance the purchase using cash on hand and its revolving credit facility.
Ludington, Mich.-based Marquette Rail operates 126 miles of track running from Grand Rapids, to Ludington and Manistee. It handled approximately 15,000 carloads of freight during the fiscal year ended 2011. For the next 12 months, RailAmerica anticipates Marquette will generate approximately $13 million in revenue, $4 million in operating income (excluding closing costs), and $2 million in depreciation and amortization.
“The acquisition of Marquette represents an attractive opportunity to invest in a high quality franchise with a solid base of revenue from large, long-term customers and drive substantial near-term growth from new developments on the line,” said RailAmerica President and CEO John Giles in the company’s announcement. “In addition, the railroad is in close proximity to RailAmerica’s existing Michigan operations, which we expect will create significant operating efficiencies.”
RailAmerica also announced the signing of an agreement to acquire a 70% interest in the Wellsboro and Corning Railroad (WCOR) and Industrial Waste Group (IWG) from Myles Group for $18 million, subject to customary closing conditions. The company anticipates completing the acquisition, which it intends to finance using cash on hand and its revolving credit facility, early in the second quarter of 2012.
Members of the Myles family will retain the remaining 30% interest in the companies and continue in senior leadership roles, RailAmerica said.
The WCOR operates 38 miles of track from Wellsboro, Pa., to Corning, N.Y. RailAmerica anticipates rapid traffic growth and expansion of the railroad’s freight and non-freight services to serve the Marcellus Shale natural gas industry.
IWG performs transload, storage, and other value-added services for customers in the energy and waste management industries at four transloading facilities in the eastern United States. RailAmerica anticipates that IWG will expand its transload operations into new markets and extend its services throughout RailAmerica’s network.
Over the next 12 months of operations, RailAmerica expects WCOR and IWG combined to generate approximately $17 million in revenue, $3.5 million in operating income (excluding closing costs), and $1.3 million in depreciation and amortization. Their financial results will be consolidated into RailAmerica’s financials, and RailAmerica’s net income will be reduced by the 30% minority interest, the company said.
“The rail and transloading infrastructure at Wellsboro is uniquely located in the heart of the northern Marcellus Shale and represents a key asset in the transportation of both inbound and outbound products for major exploration and production companies,” RailAmerica President and CEO John Giles said in the announcement. He added, “The acquisition allows RailAmerica to gain direct exposure to the enormous potential in the area and also leverage the expertise of Myles Group in opening similar transload facilities throughout the country,”
BNSF Plans $3.9 Billion in Capital Spending in 2012
February 2nd, 2012
BNSF Railway Company (BNSF) has announced plans for approximately $3.9 billion in capital spending, which the railroad said was a $400 million increase over its 2011 capital spend.
“Investment in BNSF’s rail freight infrastructure is an investment in American jobs and competitiveness. It will ensure our infrastructure remains strong and improve the efficiency of our operations,” said Matthew K. Rose, BNSF chairman and CEO, in the company’s announcement.
BNSF’s spending plans include about $300 million for positive train control. Another $400 million is slated for terminal, rail line, and intermodal improvements, including the new Kansas City intermodal facility, as well as projects to boost efficiency on coal routes. The railway expects to devote $1.1 billion to acquisitions of locomotives, freight cars, and other equipment. The balance of its planned expenditures, approximately $2.1 billion, would go to its “core network and related assets.”
House Transportation Bill Would Cut Amtrak Funding and Grants for Smaller Railroads, Extend PTC Deadline
February 2nd, 2012Legislation introduced by House Transportation and Infrastructure Committee Chairman John L. Mica (R-Fla.) on Jan. 31 calls for a number of changes in rail-related programs as part of a general reshaping of U.S. transportation policy.
The bill, the American Energy & Infrastructure Jobs Act, would end the capital grants program for Class II and Class III railroads authorized by 49 U.S.C. Chapter 223 and make changes to the Intercity Passenger Rail grants program, too. It also would reduce Amtrak’s operating subsidy for FY 2012 and FY 2013 by up to 25% and would restrict its ability to use federal funds for litigation, in addition to requiring that Amtrak food and beverage service be put out for bid.
On the other hand, the legislation aims to reduce the burden of the positive train control mandate by extending the deadline by 5 years, until Dec. 31, 2020, and allowing railroads to submit alternative approaches to risk reduction for lines that would otherwise require PTC installation. It also calls for revisions to the project review process intended to speed decision making and encourage a programmatic, rather than project-by-project, approach. Section 8301 of the bill seeks to bolster participation in the Railroad Rehabilitation and Improvement Financing (RRIF) program by speeding the application process and adjusting other aspects of the program.
The bill would require states to identify their 10 most dangerous highway-rail crossings and submit an action plan to improve safety at those locations, and updated reports would be required at least every 2 years. These reports would then be made public on the Department of Transportation’s website.
The Association of American Railroads has decried a portion of the bill that would permit operation of heavier trucks (see Sec. 1404), saying that the provision would impose greater costs on taxpayers to maintain existing infrastructure and might also result in more, not fewer, trucks on the nation’s roads.
“Americans don’t want 97,000 pound trucks or huge multi-trailers up to 120 feet long on our nation’s highways,” said AAR President and CEO Ed Hamberger in the organization’s release. “Nor is it fair that even more of the public’s tax dollars will be used to pay for the road and bridge damage inflicted by massive trucks.”
Full committee markup of the bill is taking place today, Feb. 2. The current text of the bill is available here.
$500 Million Available in Latest Round of TIGER Grants
February 1st, 2012U.S. Transportation Secretary Ray LaHood on Jan. 31 announced that $500 million is available for transportation projects in a fourth round of the TIGER (Transportation Investment Generating Economic Recovery) Discretionary Grant program.
As with previous rounds, TIGER 2012 is intended to provide grants for capital investments in surface transportation infrastructure, with these grants to be awarded on a competitive basis. Up to $100 million is available for high-speed rail and intercity passenger rail projects, and $120 million is available for rural transportation projects, according to the DOT’s release.
A notice of funding availability (PDF) was published in the Federal Register on Jan. 31. Pre-applications are due by 5 p.m. on Feb. 20, 2012, and applications are due by 5 p.m. on March 19.
Transload Terminal Opens along Kansas City Southern de Mexico
February 1st, 2012Kansas City Southern de Mexico (KCSM) and Raloy Lubricants Co. in January celebrated the opening of a new transload center. Kansas City Southern (KCS) reported the development on its KCS News page.
Raloy will operate the new Diamond International facility, which can handle 400 rail cars and 27,000 tons annually. The specialized lubricants company will use the facility, which accommodates both dry and liquid cargo, to receive lubricants and additives from the United States and transload them for delivery to its plant, which is located about 5 miles from the terminal.
KCS noted that the terminal project was supported by Mexico’s Secretary of Communications and Transport, which authorized use of land and track in the KCSM concession.
Parker Hannifin Acquires Camfil Farr Group’s Railroad Filtration Business
February 1st, 2012
On Feb. 1, Cleveland-based Parker Hannifin Corp. (NYSE: PH) announced its acquisition of the railroad filtration business of Camfil Farr Group. Terms of the transaction were not disclosed.
The newly acquired business, which is headquartered in Laval, Quebec, manufactures air and liquid filtration products used in rail and transit, mining, and marine engine applications. It had sales of approximately $22 million in 2011 and reaches markets in Canada, Mexico, India, Australia, and the United States.
Parker said the business will become part of its Filtration Group. About three quarters of the ongoing revenues of the business will be reported in Parker’s Industrial North America reporting segment; the remainder will be reported in its Industrial International segment.
“Parker sees significant opportunities to broaden our large engine and air filtration product lines and leverage products in other large combustion engine applications,” said Peter Popoff, president - Filtration Group, in the company’s announcement. “The railroad business of Camfil Farr brings expertise and services that allow Parker’s Filtration Group to build a worldwide presence in specialized rail, marine and mining markets, while adding clean air technologies to strengthen our filtration solutions capabilities. Additionally, this transaction will give Parker Filtration manufacturing capacity in Canada and Mexico to better service customers in those markets.”
Content Sections
More Headlines
- Natalie Ann Macey Named VP Sales & Marketing for Wood Energy Group
- Tentative Agreement Between Final Union and Freight Railroads, Averting Strike Threat
- Canadian Pacific Handles Crude Oil Shipments from New Saskatchewan Transload Facility
- Dispatchers, Signalmen Ratify Agreements with Freight Railroads
- RailAmerica Announces Acquisition Plans
- House Transportation Bill Would Cut Amtrak Funding and Grants for Smaller Railroads, Extend PTC Deadline
- $500 Million Available in Latest Round of TIGER Grants
- Transload Terminal Opens along Kansas City Southern de Mexico
- Parker Hannifin Acquires Camfil Farr Group’s Railroad Filtration Business
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