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U.P. Takes a  Hit in its 2nd Quarter Report.

7/23/2015

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Well brothers and sisters, the numbers are in.  It appears that U.P. made a profit...BUT, according to Russell Hubbard / World-Herald staff writer "The company already this year has furloughed — or temporarily laid off — about 900 employees. Union Pacific has said decreased demand for its services made the cutbacks necessary. Analysts say additional cuts are likely."  Then Mr. Hubbard goes on to say "Union Pacific hasn’t disclosed where the furloughs have happened or in what job categories. The company not only operates freight trains, but also terminals, yards, workshops, offices and myriad other installations."  Here are the true numbers of the furloughs just in OUR hub.  Keep in mind these aren't just numbers.  Each number represents a person, a family, an employee cut off to preserve the proverbial "bottom line".

Herington:   68
Salina:             15
Wichita:         25

Of the 900 employees reportedly furloughed, TE&Y represents 749 employees.  That's 83.2% of the "non-disclosed" job categories.  The following is a list, by region, of the current TE&Y cut off employees.

Northern Region:   318
Southern Region:   98
Western Region:   333

So, of the 900 employees reportedly furloughed...our hub alone represents 108 employees of that statistic!  That's 12% of the total layoffs for the company.  I understand that each of us has dealt with our fair share of being cut off, but the company must shoulder the responsibility of over hiring.  

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By Daniel Niepow, Associate Editor of 

A decrease in demand and overall volumes in several sectors, including a sharp decline in coal traffic, offset the positive impact of core pricing gains in the second quarter, Union Pacific Railroad reported this morning.

The railroad's net income for the quarter fell 3 percent to $1.2 billion versus $1.3 billion in the same quarter last year. Earnings per diluted share decreased to $1.38 from $1.43 in the year-ago period.

Volume fell 6 percent to 2.3 million units as coal traffic plunged 26 percent to 309,000 units, industrial products carloads tumbled 13 percent to 306,000 units and agricultural products volume declined 7 percent to 225,000 units.

Despite several headwinds, the railroad "made meaningful progress by right sizing our resources to current volumes, and I am encouraged to report that we made these improvements while posting strong safety performance," UP President and Chief Executive Officer Lance Fritz said in a statement.

The railroad's operating ratio of 64.1 rose 0.6 points while operating revenue decreased 10 percent to $5.4 billion. By commodity group, coal revenue plummeted 31 percent to $679 million, industrial products revenue fell 14 percent to $970 million, ag products revenue declined 7 percent to $867 million, intermodal revenue decreased 5 percent to $1 billion, chemicals revenue slipped 1 percent to $905 million and automotive revenue inched up 1 percent to $560 million.

Both operating expenses and income fell during the quarter: the latter decreased 11 percent to $1.95 billion, while the former decreased 9 percent to $3.48 billion.
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Kansas DOT narrows list of sites for future transload center.

7/22/2015

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Seven finalist locations have been chosen for the site of a proposed transload center, the Kansas Department of Transportation (KSDOT) announced on Monday.

The KSDOT/Kansas Turnpike Transload Facility site analysis team selected the finalists from 111 proposals submitted for consideration. Some communities that responded to the request submitted multiple sites. 

The finalist sites are located in Abilene, Concordia, El Dorado, Garden City, Great Bend, Norton and an industrial park south of Parsons. The selection committee will hear presentations from the finalists later this month, with a site to be chosen in late August.

"A transload facility has the potential to not only lower shipping costs, it is a job creator and provides economic development opportunities for the export of Kansas products,” said Mike King, secretary of transportation director of the Kansas Turnpike Authority, in a press release.

The facility will be used to transload goods from truck to rail and from rail to truck. The seven finalist sites are served either by BNSF Railway Co., Union Pacific Railroad, Genesee & Wyoming Inc.'s Kyle Railroad or Watco Cos. LLC's Kansas and Oklahoma Railroad, said KSDOT Freight and Rail Program Manager John Maddox in an email.
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FRA Requirement remains in full force, will be made permanent.

7/22/2015

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WASHINGTON — The Federal Railroad Administration (FRA) today sent a letter again instructing railroads transporting crude oil that they must continue to notify State Emergency Response Commissions (SERCs) and Tribal Emergency Response Commissions (TERCs) of the expected movement of Bakken crude oil trains through individual states and tribal regions. Since May 2014, trains with 1,000,000 gallons or more of Bakken crude oil – approximately 35 tank cars – are subject to the notification.
“Transparency is a critical piece of the federal government’s comprehensive approach to safety,” U.S. Transportation Secretary Anthony Foxx said. “DOT is committed to making certain that states and local officials have the information they need to prepare for and respond to incidents involving hazardous materials, including crude oil. The Emergency Order that requires these notifications still stands, and we expect railroads to fully comply.”
The requirement, part of an Emergency Order issued in May 2014, also directs railroads to include estimated volumes of crude oil, the frequency of anticipated train traffic, and the route the crude oil will be transported. Contact information for at least one individual at the host railroad must be provided as well. In May, the Department of Transportation (DOT) announced that it would make the notification requirements of the Emergency Order permanent.
“We strongly support transparency and public notification to the fullest extent possible,” said FRA Acting Administrator Sarah Feinberg. “Railroads transporting crude oil must continue to provide the information required by the Emergency Order to SERCs and to update notifications in a timely manner. FRA will continue with random spot checks and regular compliance audits to ensure that states, local communities, and first responders have the information necessary to respond to a possible accident. FRA will take enforcement actions as necessary to ensure compliance.”
Earlier this year, the Department of Transportation (DOT), released its comprehensive rule that raises the bar on the safety of transporting crude oil by rail. The rule requires stronger tank cars and 21st century electronically controlled pneumatic (ECP) brakes that activate simultaneously on all tank cars, reduce the distance and time needed for a train to stop, and keep more tank cars on the track if a train does derail.
Read the letter below:
The U.S. Department of Transportation (DOT), including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA), has made enhancing the safety of rail transportation of crude oil one of its top priorities. And we have improved safety by convening the railroad and energy industries, undertaking and completing a comprehensive rulemaking, and executing multiple safety advisories and emergency orders.  
In all of these efforts, we have worked closely with all of you, the energy industry, Congress, and other stakeholders. When accidents have occurred, we have partnered with you, local first responders, states and others to respond quickly, provide resources, and lead or support investigations that hold many lessons and solutions to increase safety. FRA firmly believes that safety is a shared responsibility. That is why we have engaged, and will continue to engage, with your company and all stakeholders to raise the bar on safety.
In addition to establishing stronger tank car standards and requiring 21st century electronically controlled pneumatic (ECP) brakes, one of our efforts has been to ensure that critical information is provided to first responders and other local and state officials about the shipment of hazardous materials, including crude oil, through their states. Responsibly sharing this information is crucial for first responders to act quickly and to allow state and local officials to develop accurate, quality emergency plans. While federal, state, local, and tribal laws may place certain limitations on the nature and extent of information that can be shared with the public, we strongly support transparency and public notification to the fullest extent possible. And we understand the public’s interest in knowing what is traveling through their communities.
As you will remember, on May 7, 2014, DOT issued an Emergency Order requiring railroads to notify State Emergency Response Commissions (SERCs) and Tribal Emergency Response Commissions (TERCs) of the expected movement of 1,000,000 gallons or more of Bakken crude oil in a single train through the state. The emergency order required that railroads update SERCs and TERCS when a significant increase or decrease—25 percent or more in the number of trains per week—in an estimate occurs. Although the preamble to the May 2015 final rule contemplated that the Emergency Order would end in early 2016, the Department has since announced that the Emergency Order will remain in full force until DOT makes the notification requirements permanent through rulemaking. To be clear: railroads transporting crude oil must continue to provide the information required by the Emergency Order to SERCs. These notifications should also be updated in a timely manner, as specified in the order and subsequent frequently asked questions. FRA will continue with random spot checks and regular compliance audits to ensure that states, local communities and first responders have the information necessary to respond to a possible accident. FRA will take enforcement actions as necessary to ensure compliance.
I look forward to continuing to work with you to ensure that state, local and tribal officials and emergency responders have all the information they need to be prepared for and respond to any accident involving crude oil and other hazardous materials.
If you require additional information, please contact me or Karl Alexy, hazardous materials division staff director, at (202) 493-6245 or via email at: john.alexy@dot.gov.
Sincerely,
 
Sarah Feinberg
Acting Administrator
Federal Railroad Administrator
U.S. Department of Transportation
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Second quarter financial results in for Class I railroads

7/21/2015

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CSX Corporation announced all-time record quarterly financial results for the second quarter of 2015. Operating income for the railroad came in at more than $1 billion for the first time in company history. The railroad also saw an all-time record in operating ratio of 68.8 percent.

Net earnings came in at $553 million or an all-time record of $0.56 per share, an increase from the reported $529 million or $0.53 per share of the second quarter of 2014. CSX expects to deliver mid-to-high single digit earnings per share growth for 2015.

“While we saw challenges in a number of markets, CSX employees delivered an even safer, more reliable and more differentiated service product this quarter,” Chairman and CEO Michael J. Ward said. “We expect the momentum in network performance we saw in the second quarter to accelerate, continuing to create value for our customers and shareholders.”

Revenue declined six percent due to the impact of lower fuel recovery. At the same time, continued low fuel prices and savings from efficiency initiatives reduced expenses for the railroad by nine percent.

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

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Kansas City Southern reported a decrease in earnings in a press release July 17. The railroad reportedly saw a 10 percent decrease in revenue to $586 million as compared to the second quarter of 2014.

Operating income saw a decrease of 13 percent to $187 million. Operating ratio saw a 1.1-point increase to 68.1 percent compared with last year’s second quarter operating ratio of 68.3 percent. Reported net income totaled $112 million or $1.01 per share, a 15 percent decrease compared to the reported $130 million or $1.18 per diluted share for the second quarter 2014.

Overall, the railroad reported that carload volumes were six percent lower for the quarter. Second quarter revenue declined in all commodity groups except chemicals and petroleum, which grew by one percent. However, operating expenses also saw a decrease of eight percent to $399 million.

“KCS continued to scale its operations in both the U.S. and Mexico and has made strides in improving its network fluidity,” stated CEO David L. Starling. “Our actions contributed to the company attaining a solid second quarter operating ratio despite volume challenges, particularly in its energy commodity group. We expect our system performance and operating metrics to continue to improve throughout the remainder of the year.

“As evidenced in the weekly industry carload data, there are still uncertainties in many of the primary markets served by rail. However, KCS’ average daily volumes increased each month throughout the second quarter and the initial results from the first few weeks of July suggest the positive trend may be continuing.”

Check back on the following dates for second quarter earnings reports from the other Class I railroads:

CN: 07/20
CP: 07/21
UP: 07/23
NS: 07/27
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U.S. House transportation funding: Another deadline, another extension

7/21/2015

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The U.S. House of Representatives approved a five-month, $8-billion extension of surface transportation programs on July 15. The new extension would give lawmakers until Dec. 18 to find a longer-term solution.

 

House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.) and House Ways and Means Committee Chairman Paul Ryan (R-Wis.) released a joint statement on the bill, H.R. 3038, and said, "This country needs a long-term plan to fix our roads, bridges and other infrastructure, and this bill gives us our best shot at completing one this year. By providing resources through the end of the year, we can ensure construction continues while we work toward a package that could close the trust fund's shortfall for as many as six years. We urge all members who want some long-sought stability in our highway and transit programs to support this critical extension."

Meanwhile, Rep. Alcee Hastings (D-Fla.) had a different view saying, "If kicking the can down the road were an Olympic sport, here in the United States Congress we would...win aluminum."

The bill will now head over to the Senate, where the Committee on Commerce, Science, & Transportation approved its own version of a multi-year transportation bill, S.1732.

Commerce Committee chairman, U.S. Sen. John Thune (R-S.D.) said, "The committee incorporated important bipartisan safety enhancements and approved a bill that enacts critical regulatory reforms. We worked hard to include input from both sides of the aisle, and we now have a bill that can move forward towards enacting a multi-year transportation reauthorization bill versus passing additional short-term extensions."

S. 1732 includes an extension of Positive Train Control implementation to 2018 for most freight and passenger railroads.

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  • Home
    • Local 506 Info >
      • Officer Contacts
      • Update Contact Information
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    • Member Toolbox
    • Safety Committee >
      • Safety Concerns & Suggenstions Form
    • UTUIA
  • Crew Consist
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    • Claims Information
    • 10th Street off Assigned Limits Violation
    • Assigned Jobs Performing Extra Road Service
    • Board Runaround
    • Called Off Road To Cover Yard When Extra Board is Exhausted (RULE 32K)
    • Claims While Taking Rules Exam
    • Dropped Turns
    • Dogcatch Claims >
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    • EOT Handling
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    • Road Crews Driving Company Vehicles >
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