SMART UnionA bipartisan pair of senators is planning to introduce legislation to beef up the panel of federal regulators that is supposed to oversee operations on the nation’s freight and passenger railways.
The panel, the Department of Transportation’s Surface Transportation Board (STB), has been at the center of a recent dispute between Amtrak and a Canadian freight rail operator over delays on tracks that are shared between the two companies in Illinois.
Read the complete story a The Hill.
SLINGER, Wis. – A southbound Canadian National freight train was rounding a curve in Slinger when it struck the cars of another train Sunday night shortly after 9:00 p.m. The incident happened where CN and Wisconsin and Southern Railroad tracks cross.
Two people in the train were injured, and one of them taken to Aurora Medical Center in Grafton. The extent of their injuries has not been released.
Read the complete story at radio station WSAU.
WASHINGTON – In response to concerns raised by communities across Illinois, U.S. Senator Dick Durbin (D-IL) June 3 called on Canadian National to address ongoing safety and traffic issues including: Canadian National’s lack of cooperation with the State of Illinois and Amtrak, which has hindered efforts to expand rail service in Northern Illinois between Galena and Rockford; increased rail traffic that has resulted in a record rate of blocked rail crossings; and Canadian National’s refusal to work with local communities, like Richton Park, to resolve safety issues.
“Last year, I met with Canadian National President Claude Mongeau to discuss ongoing concerns regarding CN operations along the Elgin, Joliet & Eastern Railway and new Amtrak service between Chicago-Rockford-Galena,” Durbin said. “Unfortunately, several significant issues remain unresolved, and I continue to hear from local communities looking for better cooperation from the rail company regarding their traffic and safety concerns.”
With the acquisition of the EJ&E Railway, Canadian National plans on significantly increasing freight rail traffic along the line (a four to six time increase in trains per day). In the decision to approve Canadian National’s acquisition of the EJ&E, the Surface Transportation Board (STB) established an oversight period of 5-years to monitor the operational and environmental impacts of the acquisition. In the June 3 letter, Durbin raised the possibility of extending that oversight period in order to ensure that the issues outlined below are addressed.
Lack of Cooperation Hindering Passenger Rail Expansion: The State of Illinois and Amtrak have been negotiating an agreement with CN to bring new passenger rail service from Chicago to Rockford and Galena. In May, the State of Illinois announced that due largely to the lack of cooperation from CN, it would be pursuing an alternate route between Chicago and Rockford along Union Pacific tracks. Because the only feasible rail route west from Rockford to Galena runs along the CN, the State of Illinois and Amtrak will not be able to provide service to Galena if CN continues to slow walk negotiations and makes unreasonable capital demands.
Failure to Respond to Community Safety Issues: Canadian National has not responded to even minor safety issues brought to its attention by communities along its rail line. Richton Park recently requested a small easement from CN to install safety fencing, using funding the community received through a grant from the Illinois Commerce Commission. Although these easements were required by the STB in several locations along the EJE, CN rejected Richton Park’s request and has been unresponsive to appeals to reconsider.
Increased Rail Traffic and Blocked Road-Rail Crossings: Increased rail traffic along the EJ&E has resulted in a record number of blocked road-rail crossings and increased delays throughout the EJ&E corridor. In the first quarter of this year, there have been 5,267 instances of crossings being blocked by trains for ten minutes or more – the highest number since CN took ownership of the rail line.
Durbin has been working to address community concerns about blocked crossings that exacerbate traffic bottlenecks and challenge emergency responders’ mobility, rail safety, noise, air pollution from additional congestion, and interference with proposed Metra expansions. In 2010, Durbin announced the City of Barrington received a $2.8 million grant to fund the planning, designing and engineering of a grade separation at the U.S. Route 14 and EJ&E crossing through the Department of Transportation’s Transportation Investments Generating Economic Recovery (TIGER II) program.
In 2011, Durbin and Senator Mark Kirk (R-Ill.) sent a letter to members of the STB regarding the Village of Barrington’s petition seeking additional mitigation efforts from the Canadian National. The Village also commissioned a study regarding the impact of Canadian National’s increased use of the EJ&E line that bisects the community. The Village’s review found that the STB’s previous study contained several flaws in the methodology and provided results that diluted actual traffic congestion and traffic delay impacts.
In 2013, after learning of CN’s efforts to avoid paying its fair share of mitigation efforts in Lynwood and Aurora, Durbin sent a letter to the STB urging the agency to extend the deadline by which construction must start on critical grade separations, preventing CN from running out the clock on meeting their responsibilities to those communities.
The full text of Durbin’s letter to Canadian National is below.
Claude Mongeau
President and CEO
Canadian National Railway Company
P.O. Box 8100
Montreal, QC H3C 3H4
Dear Mr. Mongeau:
I am writing regarding CN’s poor communication and cooperation with Illinois passenger and freight rail stakeholders. We met last year to discuss local community concerns with CN operations over the Elgin, Joliet & Eastern Railway (EJE) and new Amtrak service between Chicago-Rockford-Galena. Since that time, several of the issues we discussed then remain unresolved, and I encourage you move expeditiously to address them.
The State of Illinois and Amtrak have been trying to negotiate an agreement with CN to bring new passenger rail service from Chicago to Rockford and Galena. Last month, the State of Illinois announced it is pursuing an alternate route between Chicago and Rockford along Union Pacific tracks. This decision was due largely to the lack of cooperation from CN, which owns the originally selected route between those two cities. Unfortunately, the only feasible rail route West from Rockford to Galena runs along the CN. The State of Illinois and Amtrak will not be able to provide service to Galena as long as CN slow walks negotiations and makes unreasonable capital demands.
Secondly, several communities have contacted my office with concerns about increased rail traffic along the EJ&E. The Village of Barrington and City of Aurora have been vigilant in promoting increased rail safety, especially for trains carrying crude oil and ethanol. These large unit trains and other freight trains are blocking crossings and increasing delays throughout the EJ&E corridor. In fact, despite CN’s claims that track upgrades would decrease the number and duration of blocked crossings, there have been 5,267 instances of crossings being blocked by trains for ten minutes or more in the first quarter of 2014 – the highest number since CN took ownership of the rail line.
Even minor safety issues are being dismissed out of hand. For example, Richton Park recently requested a very small easement from CN to install safety fencing with a grant it received from the Illinois Commerce Commission. These easements were required by the Surface Transportation Board (STB) in several locations along the EJE, but CN summarily rejected Richton Park’s and has been unresponsive to appeals from our office and the local community to reconsider.
The STB placed CN under an unprecedented six year monitoring period after your railroad completed the controversial purchase of the EJE. The monitoring period is in place to ensure CN fully complies with the promises it made when CN acquired the EJE. That monitoring period expires at the end of this year, but it may be prudent to extend this period while the problems outlined above remain.
I hope CN can resolve these issues as soon as possible. I stand ready to work with you to improve the safety and availability of passenger and freight rail service along CN routes in Illinois.
Sincerely,
Ri
chard J. Durbin
U.S. Senator
CHICAGO – Grand Trunk Western Railroad Co. has been ordered to reinstate a conductor and pay him more than $244,000 in back wages and damages following an investigation by the U.S. Department of Labor’s Occupational Safety and Health Administration. OSHA found that the company was in violation of the whistleblower provisions of the Federal Railroad Safety Act for terminating an employee in Flint, Mich., for failing to perform an inspection of a passing train under hazardous safety conditions.
“When employees are disciplined for legally choosing not to conduct work tasks in unsafe environments, worker safety and health are clearly not the company’s priority,” said Nick Walters, OSHA’s regional administrator in Chicago. “Whistleblower protections play an important role in keeping workplaces safe. Workers should never be forced to choose between safe work practices and keeping their job.”
Grand Trunk Western Railway, a subsidiary of the Canadian National Railway, has been ordered to pay the conductor $99,324 in back wages and benefits, less applicable employment taxes, $45,000 in compensatory and $100,000 in punitive damages and reasonable attorney’s fees. The company must also remove disciplinary information from the employee’s personnel record and provide whistleblower rights information to its employees.
OSHA’s investigation upheld the employee’s allegation that the railroad terminated his employment on Feb. 26, 2013, in retaliation for reporting hazardous safety conditions and refusing to complete the dangerous tasks. Operating in dark, foggy conditions during the early morning hours of Dec. 15, 2012, the conductor did not perform a required roll-by inspection of a passing train near the Flint rail yard. The train was stopped on a bridge with a steep incline down to the river, and the conductor felt this was an unsafe location for the inspection.
Following an internal investigative hearing, the railroad removed him from service and accused him of violating the company’s policy to inspect passing trains when duties and terrain permit, and subsequently terminated the employee. OSHA’s investigation, however, found that the railroad terminated the employee in retaliation for having engaged in protected conduct under the FRSA. The investigation also found that crew members of the passing train were not held to the same standard to conduct a roll-by inspection.
Either party in these cases can file an appeal with the department’s Office of Administrative Law Judges.
OSHA enforces the whistleblower provisions of the FRSA and 21 other statutes protecting employees who report violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, worker safety, public transportation agency, maritime and securities laws.
Employers are prohibited from retaliating against employees who raise various protected concerns or provide protected information to the employer or to the government. Employees who believe that they have been retaliated against for engaging in protected conduct may file a complaint with the secretary of labor to request an investigation by OSHA’s Whistleblower Protection Program. Detailed information on employee whistleblower rights, including fact sheets, is available at http://www.whistleblowers.gov.
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
TORONTO – Canadian National Railway Co said on Wednesday that the union representing roughly 3,000 of its train conductors and yard operation workers in Canada has given the company notice of its intention to strike as early as Saturday.
The strike notice comes just days after the tentative labor contract reached last year with CN, Canada’s largest rail operator, was rejected by union members.
Read the complete story at InForum.
CSX Corporation announced its fourth quarter and full-year earnings for 2013 Jan. 15. The railroad reported net earnings of $426 million or $0.42 per share for the fourth quarter. These earnings were down from the same quarter in 2012, with earnings of $449 million or $0.44 per share. Earnings dropped $37 million from the third quarter of 2013.
The railroad also reported that revenue for the quarter increased by five percent to $3 billion. The increase was due to merchandise and intermodal markets.
“Supported by the strength of an expanding economy, we delivered six percent volume growth in the quarter, despite another sharp decline in coal,” said Michael J. Ward, who acts as chairman, president and chief executive officer for the company.
Annual net earnings for 2013 came in at $1.83 per share, up from 2012’s $1.79 per share. Revenue increased for the year by two percent to $12 billion, a record for the company. Operating income came in at $3.5 billion and the operating ratio increased to 71.1 percent for the year.
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.
Norfolk Southern published its fourth quarter and full-year earnings for 2013 January 22. The railroad reports a fourth quarter net income of $513 million or $1.64 per diluted share. Net income was 24 percent higher than recorded earnings for the same quarter 2012. Fourth quarter earnings were also up $31 million over third quarter earnings for the same year.
NS reported that the operating ratio improved five percent to 69.4 percent for the quarter. Operating revenues for the railroad totaled $2.9 billion, up seven percent from the same quarter last year. Income from railway operations was up 23 percent at $881 million.
For the year 2013, operating revenues for the railway reached $11.2 billion, up two percent over 2012. Income from railway operations came in at $3.3 billion for the year, four percent higher than last year. Net income rose nine percent higher than the previous year at $1.9 billion. Diluted earnings per share also saw an improvement of 12 percent at $6.04. Overall, the railway’s operating ratio improved by one percent to 71.0 percent for the year.
“Norfolk Southern’s team of safety and service-oriented employees drove our record-setting fourth quarter results through increased productivity, efficient network operations, and continued revenue gains,” Wick Moorman, NS CEO, said. “In 2014, we plan to invest $2.2 billion, a 12 percent increase over 2013, to maintain safe railway operations, purchase locomotives and freight cars, and support growth and productivity initiatives.
Union Pacific announced their full-year earnings for 2013 as well as their fourth quarter earnings. The company stated that the fourth quarter of 2013 was their best quarter yet with records set.
The railroad reported a net income of $1.2 billion or $2.55 per diluted share for the fourth quarter, a 16 percent increase over last year. Last year’s results for the same quarter were only $1 billion or $2.19 per diluted share.
Operating revenue saw an increase of seven percent to more than $5.6 billion. The same quarter last year only saw an operating revenue of $5.25 billion. Operating income was up 14 percent, totaling $1.97 billion. UP’s operating ratio was a fourth quarter record at 65.0 percent.
“For the first time in six quarters, we reported overall volume growth, despite significantly weaker coal shipments,” said CEO Jack Koraleski. “The fourth quarter wrapped up another tremendous year for Union Pacific, with our overall financial performances exceeding all previous milestones.”
For 2013, UP reported a net income of $4.4 billion or $9.42 diluted share, up from 2012’s reported net income of $3.9 billion or $8.27 per diluted share. Operating revenue saw a record $21.96 billion for the railroad in 2013. Operating income also saw an increase of 10 percent, coming in at more than $7.4 billion. The 2013 operating ratio for the railroad was also a new record, coming in at 66.1 percent.
“As we look at 2014, we see signs that the economy is slowly strengthening. We’re well-positioned for economic growth and are confident in our ability to deliver on our customer’s growing transportation needs,” Koraleski said. “We’ll continue our unrelenting focus on both safety and service to our customers. We strongly believe in the power and potential of the Union Pacific franchise to drive even greater financial performance and shareholder returns in the years to come.”
Kansas City Southern Lines reports record fourth quarter revenues and record full-year 2013 revenues. The railroad saw an eight percent increase in revenue to $616 million over the fourth quarter of 2012.
Net income totaled $114 million or $1.03 diluted earnings per share for the quarter, a 12 percent increase over the same quarter last year. They also saw a two percent increase in carloads for the fourth quarter.
KCS’s operating income also saw an increase to $196 million for the quarter, a full 13 percent higher than 2012. Operating ratio came in at 68.1 percent for the railroad. Operating expenses also increased by six percent to $420 million for the quarter.
Full year 2013 revenue came in at a record $2.4 billion, up six percent over 2012. Carloads for the year increased two percent to 2.2 million. Operating income for the year is being reported at $739 million, an increase of 10 percent over 2012. The operating ratio for KCS was 68.8 percent for the year, a 1.1 point improvement over 2012.
“The year 2013 proved to be another very good year for Kansas City Southern,” said President and CEO David L. Starling. “2013 marks the fourth consecutive year KCS has recorded a double-digit percentage increase in its adjusted earnings per share. We expect to maintain our excellent growth momentum in 2014 and beyond.”
Canadian Pacific Railway, Canada’s second-largest railroad, said fourth-quarter profit more than quintupled. Net income surged to C$82 million ($74 million), or 47 cents a share, from C$15 million, or 8 cents, a year earlier, and earnings per share for 2014 will rise 30 percent or more from last year, CP said.
Since taking over in June 2012, Harrison has cut jobs and shut rail yards to bolster profit and close the operations gap with larger rival Canadian National Railway, his former employer. CP reported record operating ratio, a costs-to-revenue measure of efficiency, for the last quarter and said it expects more improvement this year. The railroad’s operating ratio improved to a record 65.9 percent in the quarter from 74.8 percent a year earlier, and the company said it’s targeting 65 percent or lower this year.
“This was a solid quarter, with decent operating numbers,” Jason Sei
dl, a Cowen & Co. analyst in New York who rates the shares market perform, said in a telephone interview. “The guidance is for a minimum of 30 percent growth. This year they did much better than their original guidance, so if they do that again this year, they will be well above the consensus.”
Canadian Pacific stock shares jumped 4.3 percent to C$165 at the close in Toronto, the biggest single-day increase since Oct. 23. The stock has gained 2.7 percent this year.
The 69-year-old Harrison, who came out of retirement to become Canadian Pacific’s CEO, insisted he still plans to lead the company for another two years before handing the reins to Chief Operating Officer Keith Creel.
Canadian National Railway Co. Jan. 30 said its fourth-quarter earnings increased to C$635 ($568 million), or 76 Canadian cents a share, up from C$610 million, or 71 Canadian cents, a year earlier, helped by higher petroleum product volumes and a stronger U.S. dollar. The company also boosted its quarterly cash dividend by 16 percent and reaffirmed its guidance for 2014.
The railroad, based in Montreal, was helped by strong energy markets. Revenue from the transport of petroleum and chemicals jumped 22% in the fourth quarter, while revenues from metals and minerals and forestry products also made double-digit gains.
Revenue increased 8 percent to C$2.745 billion and operating expenses rose 5 percent to C$967 million. The company’s operating ratio rose to 64.8 percent from 63.6 percent. The operating ratio is the percentage of operating revenue consumed by operating costs, so an increase indicates a decline.
“Key operating and service metrics remained solid, and we continued to drive incremental improvement in our broad safety record,” Chief Executive Claude Mongeau said in a statement.
“CN sees good opportunities in 2014 in a number of markets, including intermodal, oil-and-gas-related commodities, Canadian and U.S. grain, and commodities related to the recovery in the U.S. housing market,” Mr. Mongeau said.
CSX Corporation announced July 16 second quarter net earnings of $535 million or $0.52 per share. For the second quarter of 2012, CSX earned $512 or $0.49 per share. According to these figures, CSX is up a profit of $23 million over last year’s earnings for the same quarter.
CSX attributes these profits to overall revenue growth, service and efficiency results, and other items such as tax and real estate. Revenue for the second quarter 2013 was a total of almost $3.1 billion. CSX was at an operating income of $963 million and an operating ratio of 68.6% for the quarter.
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.
CSX is up from last quarter, having reported a net income of $459 million or $0.45 per share. Revenue for the first quarter was at $2.96 billion, quite a bit less than this quarter’s reported $3.1 billion.
Union Pacific Corporation announced July 18 that performance for the second quarter 2013 was the best they have ever reported at a net income of $1.1 billion or $2.37 per diluted share, an increase of five percent over last year’s second quarter earnings. Earnings for the same quarter last year were only $1 billion or $2.10 per diluted share.
UP saw an increase of operating revenue to $5.5 billion, while last year’s operating revenue for the same quarter was only $5.2 billion. The freight revenue was also at a five percent increase and their operating ratio of 65.7 percent was the best ever recorded at 1.3 points higher than the second quarter last year; and 0.9 points better than the previous best-ever record which was set in the third quarter of 2012.
Second quarter earnings are also up from the first quarter of this year. UP reported increased revenue of $5.29 billion for the first quarter, a great deal less than this quarter’s reported $5.5 billion.
Kansas City Southern (KCS) reported July 19 record revenues as well as record carloads for the second quarter 2013. KCS announced that the second quarter was up six percent over the second quarter 2012 with $579 million in revenues. Carloads saw an increase of three percent over last year as well.
The railroad saw an operating income of $179 million, 12 percent higher than the same quarter of the previous year and an operating ratio of 69.0 percent, a 1.5-point improvement.
Revenue growth for the second quarter was led by a 26 percent increase in Energy, a 20 percent increase in Automotive and a 13 percent increase in Intermodal revenues over last year. Revenues from Chemicals & Petroleum and Industrial & Consumer grew by 11 percent and four percent respectively over last year’s second quarter.
KCS saw a decrease in revenues from Agriculture and Minerals, which decline by 18 percent, due to droughts and a decrease in grain volumes.
Canadian National Railway (CN) announced July 22 that profits are up for the second quarter 2013 over the same quarter of 2012. Net income for the second quarter was C$717 million or C$1.69 per diluted share. Net income for the same quarter last year was only C$631 million or C$1.44 per diluted share.
CN reported a net gain of C$13 million that resulted from a gain on a non-monetary transaction with another railway. Excluding this transaction, it’s reported that CN saw an increase of diluted earnings per share (EPS) of 11 percent to C$1.66 for the second quarter. The same quarter last year was at C$1.50.
Revenues saw an increase of five percent to C$2,666 million that was reportedly driven by a five percent increase in revenue ton-miles and a two percent increase in carloadings.
CN reported that operating income increased six percent to C$1,042 million with an operating ratio (defined as operating expenses as a percentage of revenue) improvement of 0.4 of a point to 60.9 percent.
“We executed strongly during the second quarter, with service and operating metrics on a steady improvement trend. This performance underscores our agenda of Operational and Service Excellence, which is key to achieve solid revenue growth at low incremental cost. … Despite slower volume growth than anticipated, the CN team will maintain a keen focus on growing revenues faster than the overall economy as well as on tightly managing costs to meet our full-year financial outlook,” said President and Chief Executive Officer Claude Mongeau.
Norfolk Southern (NS) announced Tuesday, July 23 an 11 percent decrease in income for the second quarter 2013. Income was at $465 million for the second quarter of 2013 whereas they were at $524 million for the same quarter of 2012.
Diluted earnings per share were at $1.46, nine percent lower than they were in 2012 at $1.60 per diluted share.
The operating revenues for the railroad came in at $2.8 billion, three percent lower than in 2012. However, the operating ratio came in at 70.2 percent, which is four percent higher than the ratio reported for the second quarter of 2012.
Fuel surcharges came in at $306 million, $59 million less than last year’s reported amounts. General merchandise revenues rose to two percent to $1.6 billion. Coal revenues fell 17 percent to $626 million due to lower average revenue per unit and a four percent decline in volumes. NS reported that Intermodal revenues increased four percent to $588 million and volumes increased five percent due to continued domestic and international growth.
“In the second quarter, Norfolk Southern delivered solid results, supported by growth in our chemicals, intermodal, and automotive businesses, despite continuing weakness in the coal markets,” CEO Wick Moorman state. “We continue to focus on service efficiency and velocity, which is enabling us to control operating expenses and deliver superior performance to our customers.”
Canadian Pacific (CP) reports record highs in operating ratio Wednesday, July 24. The operating ratio came in at 71.9 percent, a 1,060 basis-point improvement and an all-time quarterly record for the railroad.
Operating income came in at C$420 million, an increase over the second quarter of last year by 76 percent.
Total revenues for CP were C$1.5 billion, an increase of ten percent; also a quarterly record. Operating expenses were low at C$1.1 billion, a decrease of four percent. CP reported a net income of C$252 million or C$1.43 per diluted share.
The second quarter of 2012 had a net income of only C$103 million or C$0.60 per share. The second quarter of 2013 had a 138 percent improvement in year-over-year earnings per share.
BNSF reported a 22 percent increase in profit for the third quarter 2012 versus third quarter 2011, citing improved intermodal (trailers and containers on flat cars) and automotive traffic.
BNSF’s third quarter 2012 operating ratio of 68.3 percent was a significant improvement over the 71.7 percent for third quarter 2011. 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.
BNSF operates in 28 states and two Canadian provinces
Canadian National reported a less than one percent drop in profit for the third quarter 2012 versus third quarter 2011.
CN’s third quarter 2012 operating ratio of 60.6 percent increased from 59.3 percent from third quarter 2011. 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.
CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.
Canadian Pacific reported a 20 percent improvement in profit for the third quarter 2012 versus third quarter 2011. The railroad attributed the improvement to cost cuts, efficiency improvements and an increase in automotive traffic.
CP’s third quarter 2012 operating ratio of 74.4 was an improvement from the 75.8 percent operating ratio for third quarter 2011. 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.
Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.
CSX reported a 2 percent drop in profit for the third quarter 2012 versus third quarter 2011, citing lower overall freight volume and lower fuel-cost recovery even as export coal, automotive and intermodal shipments (trailers and containers on flat cars) showed increases.
The CSX third quarter 2012 operating ratio of 70.5 percent was virtually unchanged from the 70.4 percent for third quarter 2011. 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.
CSX operates some 21,000 route miles in 23 states and the District of Columbia.
Kansas City Southern reported a 9.8 percent drop in profit for the third quarter 2012 versus third quarter 2011, even as carloads rose and operating ratio improved. The railroad cited as the reason an almost 70 percent higher tax bill in Mexico stemming from a rise in the value of the peso against the dollar and continuing rebuilding expenses two years after Hurricane Alex damaged rail facilities south of the border. About half the railroad’s revenue flows from its operations in Mexico.
KCS’s third quarter 2012 operating ratio of 68.7 was a 2.6 percentage point improvement from third quarter 2011 and the best in company history. 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.
KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.
Norfolk Southern reported a 27 percent decline in profit for third quarter 2012 versus third quarter 2011, citing reductions in coal and merchandise volume. The slump in coal shipments has resulted in employee furloughs.
NS’s third quarter 2012 operating ratio of 72.9 was a more than five percentage point increase over the third quarter 2011 operating ratio of 67.5. 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.
Norfolk Southern operates some 20,000 route miles in 22 states and the District of Columbia.
Union Pacific profit rose 15 percent in third quarter 2012 compared with third quarter 2011. The railroad said price increases and more automotive and chemical shipments overcame a drop in coal loadings.
Union Pacific’s third quarter 2012 operating ratio of 66.6 percent was 2.5 percentage points better than third quarter 2011, and a 0.4 percentage point improvement from the previous record set in the second quarter 2012.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.
Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.
UTU-represented yardmasters employed by Canadian National Railway’s Illinois Central Railroad have reached a new tentative agreement following mediation assistance from the National Mediation Board. A March tentative agreement was rejected by the membership, which will now vote, through Sept. 15, on the new tentative pact.
Negotiations were led by UTU International Vice President Paul Tibbit and UTU General Chairperson Doyle Turner (GO 347).
“This tentative agreement, as with others negotiated with Class 1 railroads, is intended to bring parity in wages, benefits and work rules to the thousands of employees in the railroad industry, along with the many other protections offered by union membership,” Turner said. “The seniority, scope and discipline rules these members now enjoy are what makes union membership valuable.”
Illinois Central connects Chicago with New Orleans and Mobile, Ala., and also reaches Omaha, Neb., and Sioux City, Iowa. Canadian National gained control of Illinois Central in 1998.
Here we go again – or should we say, again and again and again and again.
This time it is Canadian National’s Illinois Central Railroad and short line Chicago, Ft. Wayne & Eastern Railroad that have been hit with more than $650,000 in sanctions by the Department of Labor’s Occupational Safety and Health Administration for retaliating against three employees who reported workplace injuries and/or safety concerns.
Sadly, there is basis in fact for the refrain that no industry spends as much to hire and train new employees as do railroads and then works so hard to intimidate, harass and fire them.
The Department of Labor’s Occupational Safety and Health Administration (OSHA) said the more than $650,000 in sanctions is to go toward back wages and damages for two Illinois Central employees at the railroad’s Markham, Ill., yard, and a Chicago, Ft. Wayne and Eastern employee — all of whom were the targets of management retaliation in three separate incidents.
“It is critically important that railroad employees in the Midwest and across the nation know that OSHA intends to defend the rights of workers who report injuries and safety concerns,” said Assistant Secretary of Labor Dr. David Michaels. “We will use the full force of the law to make sure that workers who are retaliated against for reporting health and safety concerns are made whole.”
Michaels has said that before, in the wake of its investigations and sanctions against other railroads – and OSHA continues to deliver on its promise.
The Federal Rail Safety Act of 1970 extended whistleblower protection to employees retaliated against for reporting an injury or illness requiring medical attention. The Rail Safety Improvement Act of 2008 added additional requirements ensuring injured workers receive prompt medical attention. An employer is outright prohibited from disciplining an employee for requesting medical or first-aid treatment, or for following a physician’s orders, a physician’s treatment plan, or medical advice, or for reporting workplace safety concerns.
Retaliation, including threats of retaliation, is defined as firing or laying off, blacklisting, demoting, denying overtime or promotion, disciplining, denying benefits, failing to rehire, intimidation, reassignment affecting promotion prospects, or reducing pay or hours.
OSHA, which does not identify whistleblowers, said the first employee, a conductor, was injured in August 2008 when he was knocked unconscious and sustained injuries to his shoulder, back and head while switching railcars in Illinois Central’s Markham, Ill., yard. A knuckle that connects the cars allegedly broke, said OSHA, causing the cars to suddenly jolt and the employee to fall. The railroad held an investigative hearing and consequently terminated the conductor, alleging he had violated safety rules.
OSHA, however, found that the worker was terminated in reprisal for reporting a work-related injury.
The second employee, a carman, reported an arm/shoulder injury in February 2008. While walking along a platform to inspect railcars in the poorly lit yard, said OSHA, the carman slipped on ice and tried to catch himself, which jolted his left arm and shoulder. The railroad held an investigative hearing and consequently terminated the carman for allegedly violating the company’s injury reporting procedures.
OSHA, however, concluded that the carman had properly reported the injury.
In the third incident, OSHA said Chicago Fort Wayne & Eastern Railroad – a RailAmerica property — wrongly terminated a conductor in retaliation for his raising concerns about workplace safety while serving as a union officer, and for reporting a trainmaster had instructed him to operate a train in violation of certain Federal Railroad Administration rules in June 2009 near Fort Wayne, Ind.
UTU designated legal counsel have pledged to investigate and assist UTU members in bringing complaints under these laws.
A rail employee may file a whistle-blower complaint directly with OSHA, or may contact a UTU designated legal counsel, general chairperson or state legislative director for assistance.
A listing of UTU designated legal counsel is available at:
https://www.smart-union.org/td/designated-legal-counsel/
or may be obtained from local or general committee officers or state legislative directors.
To view a more detailed OSHA fact sheet, click on the following link:
www.osha.gov/Publications/OSHA-factsheet-whistleblower-railroad.pdf