Minnesota Gov. Mark Dayton on Thursday (Feb. 6) proposed initiatives to enhance railroad safety on the same day that rail workers protested Canadian Pacific’s safety practices by picketing its U.S. headquarters in Minneapolis.
The governor announced through his press secretary that he will urge legislative leaders to hold hearings on the United Transportation Union’s reports of deteriorating safety conditions at Canadian Pacific – allegations the company flatly denied.
Read the complete story at the Star Tribune.
Tag: CP
Canadian Pacific and Genesee & Wyoming Inc. announced Jan. 2 that they have executed an agreement pursuant to which CP will sell the west end of its Dakota, Minnesota & Eastern line to G&W for continued rail operations.
The west end encompasses approximately 660 miles of CP’s current operations between Tracy, Minn., and Rapid City, S.D.; north of Rapid City to Colony, Wyo.; south of Rapid City to Dakota Junction, Neb.; and connecting branch lines, as well as trackage from Dakota Junction to Crawford, Neb., currently leased to the Nebraska Northwestern Railroad (NNW). Customers on the line ship approximately 52,000 carloads annually of grain, bentonite clay, ethanol, fertilizer and other products. The new rail operation will have the ability to interchange with CP, Union Pacific, BNSF and the NNW.
Read the complete story at eTurboNews.
Canadian Pacific Railway has furloughed approximately 30 workers in recent months from its operation in Thief River Falls, Minn., according to union officials.
The job cuts are among roughly 90 furloughs at CP sites across Minn. that the United Transportation Union has counted since October 2012, part of what the union says are aggressive job cuts that followed leadership changes in the company at that time.
“We’re not happy about it,” said Phillip J. Qualy, SMART-UTU Minnesota legislative director.
Read the complete story here.
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.
During the month of May, one UTU member was killed in North Dakota in a rail switching accident, another was murdered on his bus route in Los Angeles, and another lost a foot in Missouri in a yard switching accident.
On CP Rail (Soo Line) in Kenmare, N.D., conductor Robert J. Glasgow, 38 (UTU Local 887, Harvey, N.D.) died May 28 while setting out cars as part of a two-person crew at a CP yard. Kenmare is some 50 miles northwest of Minot.
Initial reports are that Glasgow had mounted the lead car of 28 cars being switched conventionally when the lead car sideswiped other cars. He was pronounced dead at a local hospital following evacuation by a local emergency medical crew. The Federal Railroad Administration is investigating.
Glasgow, of Minot, N.D., who had six years’ service as a maintenance-of-way employee, had been a conductor for some 10 months.
Los Angeles County Metropolitican Transportation Authority (LACMTA) bus operator Alan Thomas was shot to death May 20 aboard his coach in Los Angeles. Click on the following link to learn more about that fatal shooting:
https://www.smart-union.org/news/utu-member-bus-driver-murdered-in-los-angeles/
On BNSF in Crystal City, Mo., some 40 miles south of St. Louis, brakeman Mike J. Bolen, 50, reportedly tripped while walking alongside eight cars being conventionally switched and suffered severe trauma to his right leg when struck – but not run over — by one of the moving cars. Hospital physicians reportedly later amputated the brakeman’s right foot. The FRA is also investigating this May 28 accident.
Bolen, of Jackson, Mo., had eight years’ service and is a member of UTU Local 947 (Chaffee, Mo.)
Glasgow is the second UTU rail member killed on duty in 2012. Local 1383 (Gary, Ind.) member Michal M. Shoemaker, 55, was killed in a switching accident Jan. 30 in Gary, Ind.
Ten UTU rail members were killed on duty in calendar year 2011, eight in 2010 and eight in 2009.
For information on rail safety — including rail yard safety — click on the following link:
It’s confidential and no-fault.
And the result, according to the Federal Railroad Administration, is a significant reduction in rail workplace derailments that too often lead to serious injury and death — plus, as a bonus, better labor/management relationships and improved operational performance.
We’re talking about four pilot projects called Confidential Close Call Reporting System (C3RS), whose core value is that railroaders don’t intentionally make mistakes, and the most effective means of correcting workplace errors that have the potential to cause death, injury and accidents is to investigate the cause in a non-judgmental environment.
In a review of C3RS pilot projects on Amtrak, Canadian Pacific, New Jersey Transit and Union Pacific, the FRA also determined they result in supervisors becoming “more fair and cooperative” and placing a greater value on safety relative to productivity, fewer discipline cases, and workers more willing to raise safety concerns with management.
C3RS is a collaborative effort involving the FRA, carriers, the UTU and the Brotherhood of Locomotive Engineers and Trainmen.
The pilot projects encourage engineers, conductors, trainmen and yardmasters to report — without fear of discipline or FRA enforcement action, even if rules violations are involved — close calls that may have resulted in accidents or injuries.
All C3RS reports by employees are collected anonymously and kept confidential. With names and locations masked, a C3RS peer review team recommends corrective action, such as improved training, changes in physical plant, changes in existing federal safety laws or regulations, changes in carrier operating rules, and improved training and/or education.
Examples of close calls include varying levels of risk, such as leaving pieces of equipment unsecured, improper blocking, operating trains beyond track authority, or violating operating rules.
UTU International Vice President John Previsich spearheads the UTU involvement in the four C3RS pilot projects – systemwide on Amtrak and New Jersey Transit, and at CP’s Portage, Wis., yard, and UP’s North Platte, Neb., yard.
At UP, which has the most experience with C3RS, the pilot project has led to reformatting track warrants so they are easier to read, and with a UP officer observing that C3RS “is helping UP move from a blame culture to one that bridges communication gaps between employees and management.”
BNSF reported a 15 percent increase in profit forf the first quarter 2012 versus first quarter 2011, citing improved pricing and higher fuel surcharges.
BNSF’s first quarter 2012 operating ratio of 74.4 percent was one percentage point lower than for the first 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 16 percent increase in profit for the first quarter 2012 versus first quarter 2011, saying its bottom line was helped by a mild winter and improved economic conditions.
CN’s first quarter 2012 operating ratio of 66.2 percent was almost 3 percentage points better than its 69.0 operating ratio for the first 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 318 percent increase in profit for the first quarter 2012 versus first quarter 2011.
The key was a more than 10 percentage point improvement in CP’s operating ratio, which fell to 80.1 percent for the first quarter 2012 – down from 90.6 for the first 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.
Even with sharply reduced coal loadings, CSX reported a 14 percent increase in profit for the first-quarter 2012 versus first-quarter 2011. CSX credited price hikes and increased shipments of automobiles, metals and intermodal (trailers and containers on flatcars) as the reason.
CSX said coal loadings for the quarter were down 14 percent, but automobile and auto-related traffic rose 18 percent.
The CSX first-quarter 2012 operating ratio of 71.1 percent was a record for the first 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 operates some 21,000 route miles in 23 states and the District of Columbia.
Kansas City Southern reported a 17 percent improvement in profit for the first quarter 2012 versus first quarter 2011, with the railroad citing “robust” intermodal and automotive traffic along with “growing cross-border traffic with Mexico.”
KCS’s first quarter 2012 operating ratio of 71.2 was 2.6 percentage points improved from its operating ratio for the first 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.
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 26 percent improvement in profit for the first quarter 2012 versus first quarter 2011, citing pricing strength and an increase in intermodal traffic that offset a 6 percent reduction in coal traffic.
NS’s first quarter 2012 operating ratio of 73.3 was improved from the 74.9 percent operating ratio for first 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.
Norfolk Southern operates some 20,000 route miles in 22 states and the District of Columbia.
Union Pacific reported a 35 percent improvement in profit for the first quarter 2012 versus first quarter 2011, with the railroad citing a 15 percent increase in shipments of automobiles and gains in the number of carloads of other industrial products that offset dampening demand for coal transport.
UP’s first quarter 2012 operating ratio of 70.5 was 4.2 percentage points better than for the first 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.
Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.
Most major North American freight railroads reported strong earnings for the first quarter 2011 versus first quarter 2010.
Following is a wrap-up for the quarterly earnings reported by the railroads to the investment community.
Not included is BNSF, which is privately held and does not report its financial results to the investment community.
Mention is made of each railroad’s operating ratio. 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 higher is profit.
Canadian National
Canadian National reported a 31 percent increase in first quarter 2011 profit versus first quarter 2010. This comes following a 19 percent increase in CN profit for calendar year 2010.
CN’s operating ratio for the first quarter 2011 was 69 percent, slightly better than the 69.3 percent reported for first quarter 2010. The railroad’s fourth-quarter 2010 operating ratio was 63.6.
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
Canadian Pacific Railway was the only major North American rail system reporting a drop in profit for the first quarter 2011 compared with first quarter 2010. CP cited severe winter weather as the cause of its profit decline.
CP’s calendar-year 2010 profit increased by 39 percent.
The railroad’s first quarter 2011 operating ratio soared to 90.6 compared with 82.3 in the first quarter 2010. CP’s fourth quarter 2010 operating ratio was 77.6.
CP said its 15,143 employee count increased by 613 during the quarter, but gave no indication of whether it would add employees the remainder of 2011.
First quarter 2011 train speeds fell by almost 14 percent and the number of train accidents soared by 57 percent — both attributed to a dramatic increase in the number of avalanches in the Canadian Rockies and winter-long blowing snow throughout CP’s North American rail network.
Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.
CSX
CSX profit jumped 30 percent during the first quarter 2011 versus the first quarter 2010, the railroad reported April 19. This comes on the heels of a 35 percent improvement in operating profit for calendar year 2010.
The CSX employee headcount rose in March to 30,464 employees, up 3 percent from March 2010, the railroad said.
The CSX operating ratio for the first quarter 2011 was a record low 72.5 for any first quarter. The fourth quarter 2010 CSX operating ratio was 71.1.
CSX operates some 21,000 route miles in 23 states and the District of Columbia.
Kansas City Southern
Kansas City Southern’s first-quarter 2011 profit was almost double that of the first quarter 2010. This followed an 82 percent increase in profit for calendar-year 2010.
The employee headcount remained constant at 6,080. The railroad did not indicate whether it would be increasing its headcount in 2011.
The KCS first quarter operating ratio declined significantly, from 75.2 percent the first quarter 2010 to 73.8 for the first quarter 2011. The railroad’s fourth-quarter 2010 operating ratio was 73.2.
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
Norfolk Southern reported a 26 percent increase in profit for first quarter 2011 versus first quarter 2010. This follows a 45 jump in NS profit for calendar-year 2010.
NS said it would add some 1,100 new workers during 2011, returning employment to the same level as in 2008.
NS operating ratio for first quarter 2011 was 77.1 percent, higher than the 75.2 percent in the first quarter 2010, owing, in part, to severe winter weather. The fourth-quarter 2010 NS operating ratio was 71.9 percent.
NS operates some 20,000 route miles in 22 states and the District of Columbia.
Union Pacific
Union Pacific profit rose 24 percent in first quarter 2011 compared with first quarter 2010, This follows a 47 percent jump in Union Pacific profit for calendar-year 2010.
UP said the railroad would increase its 43,000 employee headcount by about 4,500 in 2011.
The railroad reported a best-ever first quarter operating ratio of 74.7 percent — one of the more difficult for railroads because of winter weather. The fourth quarter 2010 UP operating ratio was 73.2.
Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.
Canadian Pacific Railway reported a sharp drop in profit for the first quarter 2011 compared with first quarter 2010, citing severe winter weather.
CP said its 15,143 employee count increased by 613 during the quarter, but gave no indication of whether it would add employees the remainder of 2011.
First quarter 2011 train speeds fell by almost 14 percent and the number of train accidents soared by 57 percent — both attributed to a dramatic increase in the number of avalanches in the Canadian Rockies and winter-long blowing snow throughout CP’s North American rail network.
CP’s calendar-year 2010 profit increased by 39 percent.
The railroad’s first quarter 2011 operating ratio soared to 90.6 compared with 82.3 in the first quarter 2010. CP’s fourth quarter 2010 operating ratio was 77.6.
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 higher is profit.
Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.
UTU-represented conductors and engineers on Iowa Northern Railway have ratified their first agreement covering wages, benefits and working conditions.
Iowa Northern T&E employees chose the UTU as their collective bargaining agent in November 2008.
The agreement was negotiated with the assistance of UTU Alternate Vice President Doyle Turner.
“We will continue to look for railroad and other unorganized transportation workers who want and need union representation,” Turner said. “We are trying hard to bring parity in wages, work rules and benefits to the unorganized.
“Among gains workers obtain with UTU representation include job security, a defined grievance procedure and discipline rules, a work schedule that enhances their quality of life, and a defined set of benefits and work rules,” Turner said. “These are benefits workers cherish and they won’t obtain them without joining a union.”
Iowa Northern, headquartered in Cedar Rapids, operates more than 160 miles of former Chicago, Rock Island & Pacific track, running diagonally through the state between Manly and Cedar Rapids, with a branch line between Waterloo and Oelwein.
It connects directly with Union Pacific, Canadian National and Canadian Pacific. The railroad, which moves almost 14,000 carloads of grain annually between elevators and production facilities, calls itself “a proud link in the chain from farmer to market.”