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Norfolk Southern on Oct. 27 followed most other major railroads in reporting substantial earnings improvements for the third quarter 2010.

CSX, Canadian National, Kansas City Southern and Union Pacific all have reported substantial improvements in net income and operating ratio for the third quarter 2010 – now joined by Norfolk Southern’s rosy third quarter 2010 report.

Canadian Pacific, which also reported earnings Oct. 27, is the lone major railroad to post a decline in net income – some 6 percent lower than the third quarter 2009. However, CP said the third quarter of 2009 included almost $70 million in one-time real estate profits not related to railroad operations, which makes year-to-year comparisons of third quarter net income somewhat cloudy.

In fact, CP brought its operating ratio down by almost three percentage points to 73.7 percent. Operating ratio is the railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists as a basic measure of carrier profitability.

Norfolk Southern, meanwhile, told investors that its third quarter 2010 net income soared by 47 percent from the third quarter 2009. The NS operating ratio improved by more than three percentage points, to 69.9 percent.

Earlier this month:

  • CSX last week reported its third quarter 2010 earnings soared by 43 percent and its operating ratio declined by almost four percentage points, to 69.1.
  • Canadian National reported its third quarter net income increased by 21 percent, and its operating ratio declined more than two points, to 60.7.
  • Kansas City Southern reported doubling its third quarter 2010 net income, and reducing its operating ratio by almost five percentage points, to 73.5 percent.
  • Union Pacific reported its most profitable quarter ever, with third quarter 2010 net income up by 51 percent, and a record operating ratio of 68.2 percent.

As BNSF is now privately held, it no longer reports quarterly earnings.

Iowa Interstate Railroad and Amtrak are intending jointly to launch conventional-speed (79 mph) passenger service between Chicago and Iowa City over a previously abandoned rail line, reports progressiverailroading.com.

The proposed service, reported progressiverailroading.com, has been approved by the Federal Railroad Administration, but is not expected to begin prior to 2013.

Progressiverailroading.com quoted Iowa Interstate CEO Dennis Miller that the railroad has “spent many hours working with local community leaders, the states of Iowa and Illinois, and Amtrak to make sure that if this service was approved, we could handle it in conjunction with our existing and growing freight business.”

Perhaps contradicting many Class I freight CEOs — who are cool about expanding passenger service over freight railroad track — Iowa Interstate Chairman Henry Posner III, a former Conrail executive, was quoted by progressiverailroading.com that, “The lesson here is that a healthy freight network is the single most important building block for passenger service.”

On the heels of blockbuster third quarter earnings reports by CSX and Union Pacific, Kansas City Southern and Canadian National on Oct. 26 reported their own impressive earnings improvements.

Kansas City Southern reported doubling its third quarter net income, and reducing its operating ratio from 78.3 percent a year ago to 73.5 percent for the most recent third quarter. Operating ratio is the railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists as a basic measure of carrier profitability.

KCS said its profits would have been even stronger were it not for the impact of Hurricane Alex.

Separately, Canadian National reported that third quarter net income soared by 21 percent over the same period in 2009, and that its operating ratio declined to 60.7 percent from almost 63 percent for the third quarter 2009.

Norfolk Southern reports third quarter earnings Oct. 27.

Union Pacific last week reported its most profitable quarter ever for the three months ending Sept. 30, 2010.

CSX last week reported its third quarter earnings had soared by 43 percent.

As BNSF is now privately held, it no longer reports quarterly earnings.

So how long will you live after you retire, and will you have enough money to live on comfortably?

Precisely. And that’s why – before you retire – you should think about post-retirement economic security, because few things could be worse than money running out during what are supposed to be carefree years.

A balanced retirement portfolio should resemble a three-legged stool.

The first leg is your Tier I Railroad Retirement, Social Security or CalPERS (the California retirement system for public employees), plus Tier II Railroad Retirement and/or an employer pension.

The second leg is the equity in your home, plus your personal savings, such as certificates of deposit and mutual funds.

The third leg of this financial stool are annuities, IRAs, 401(k) plans and whole life insurance.

These three financial legs are the assets to support you through retirement. The fewer legs, or the lower value of any legs, could mean a less secure financial situation during retirement.

Determining available assets before you retire is essential. You may, for example, choose to wait another year or two and build up assets in one or more legs of your financial stool.

Younger members are wise to consider these financial legs long before they retire.

The UTU Insurance Association can help build the third leg of your financial stool prior to and even during retirement.

UTUIA whole life policies provide a death benefit while accumulating cash value. The death benefit protects surviving family if you die; and the cash value becomes a source of tax-deferred savings available during your retirement years.

UTUIA annuities and individual retirement accounts (IRAs) earn guaranteed interest that is tax deferred until you draw down the balance. You may invest in UTUIA annuities up to age 85. Existing IRAs and/or employer 401(k) plans may be rolled over into a UTUIA IRA.

To learn how the UTUIA can help make your retirement more secure, talk with a UTUIA field supervisor, or call the UTUIA toll-free line at (800) 558-8842.

By James Stem
UTU National Legislative Director

Alfred E. Newman, the not-very-bright Mad magazine character, had an expression shared today by too many Americans: “I am not sure who is running, and my vote won’t make a difference anyway.”

It is doubtful those harboring that opinion would give up their right to vote.

Our war for independence from Britain was about self-government. More recent struggles among women and minorities for the right to vote were equally hard fought.

Today, it is apathy among middle-class workers — not foreign troops, not intimidation at the polls, not laws — that threatens American democracy.

The wealthy and business leaders are more likely to vote than working families. By not going to the polls, working families put at risk their job security, workplace safety, paychecks, access to affordable health care and pensions.

If you are concerned that your work schedule or other conflict will hinder your ability to vote on Election Day, Nov. 2, most states allow you an option to vote early.

You can be sure that the wealthy and business leaders will vote — and vote for candidates who would undermine the financial security of working families.

Our ballot is equal to the ballot of every anti-labor business leader, but it is equal only if we vote.

I am asking you to pay attention to the economic well-being of your family and workplace safety. Ask your UTU local LR and UTU state legislative board for information on local, state and national candidates’ positions toward working families.

In the centerfold of the October issue of UTU News (which you should have received at your home) is a listing, by state, of labor-friendly candidates endorsed by the UTU. This listing is the result of months of research by state legislative boards, the UTU National Legislative Office and the AFL-CIO — based on interviews with the candidates and their responses to written questions.

The list of labor friendly candidates is also available by clicking the link at the end of this column.

Be proud of the middle class lifestyle your UTU contract supports, and consider voting for candidates who will put the interests of working families first.

If you have further questions, contact the UTU National Legislative Office via e-mail at utujm@msn.com, or call us at (202) 543-7714.

Don’t allow others to determine your future. Vote!

To view the list of labor-friendly candidates, click on the following link:

https://static.smart-union.org/worksite/PDFs/2010_cong_endorsements.pdf

Railroad intermodal traffic –- especially the movement of containers atop flat cars — is sizzling.

Responding to the growing demand, Union Pacific has ordered almost 10,000 new 53-foot containers this year, according to the Journal of Commerce. Additionally, reports the Journal of Commerce, UP has ordered 5,600 new wheeled chassis on which the containers travel to and from the railhead.

UP Chairman Jim Young told the Journal of Commerce he expects UP will set a record for container loads before year-end.

An automobile driver was killed and dozens of students riding a school bus were injured after a car slammed into the rear of the bus in Los Angeles Oct. 25, causing the bus to overturn, reports the Los Angeles Times.

The Los Angeles Times said 54 teenage students were aboard the school bus.

Meanwhile, in Amityville, N.Y., an empty school bus was involved in an accident Oct. 25 with a tanker truck carrying waste oil, reports the Associated Press.

There were no students aboard the bus at the time, but the school bus driver was hospitalized in critical condition, reports the Associated Press.

Newsweek magazine has given CSX the highest “Green Ranking” among Class I freight railroads – and named CSX 10th in environmental responsibility among all transport and aerospace companies.

The Newsweek rankings are based on input from three environmental organizations.

In a press release, CSX said it was the first transportation company voluntarily to set a goal to reduce its greenhouse gas emissions; and for 2011, CSX has set a goal of reducing its carbon dioxide emissions by 8 percent.

To reach this goal, CSX said it has “deployed significant numbers of fuel-efficient and environmentally friendly “GenSet” locomotives in rail yards across its network. Over the past decade, CSX has invested more than $1.5 billion to upgrade its locomotive fleet with technology that reduces fuel consumption and air emissions. Through these efforts, the company has improved its fuel efficiency by more than 90 percent since 1980,” said CSX in its press release.

CSX said it also has “launched an online carbon calculator for customers to calculate the emissions associated with various transportation options.”

Railroads are ordering considerably more freight cars than in previous months, according to the Railway Supply Institute – another indication of the strength of rail carloadings and the rails’ economic optimism going forward.

The number of new freight cars on order for delivery has climbed to more than 19,000 – an 85 percent increase in orders for new freight cars since Dec. 31, 2009, according to Railway Supply Institute data.

During the third quarter 2010, according to the Railway Supply Institute, railroads ordered more than 9,000 new freight cars — almost the total ordered during the first six months of 2010.

Children of railroaders have available to them numerous computer games simulating operation and dispatch of trains.

Now there is a computer game that allows children – and adults – to experience the challenge of being a bus operator: operating city buses, school buses, sight-seeing buses or even buses transporting prisoners.

The game, Bus Driver, is all about transporting passengers over 30 different routes, following a timetable and dealing with road rules, unpredictable traffic, weather, day and night conditions, and other events.

More information on the game is available at:

http://www.brothersoft.com/games/bus-driver.html