The Surface Transportation Board (STB) chairwoman has asked Norfolk Southern’s CEO to keep the board apprised as the carrier begins to add elements of Precision Scheduled Railroading (PSR) to its operations, Trains Magazine reports.
The letter from Ann Begeman, sent Nov. 27 to NS CEO Jim Squires, requests that the carrier begin weekly conference calls with the STB to report operational changes, the magazine reported in an article posted Nov. 29.
The requirement of updates from NS mirrors the approach STB has taken in handling another Class I that is trying out PSR.
Union Pacific (UP) announced in early autumn that it also had begun adopting aspects of PSR as part of its “Unified Plan 2020” initiative. PSR is a strategy by the late CSX CEO E. Hunter Harrison that he implemented at both Canadian National and Canadian Pacific and requires cargo to be ready when rail cars arrive for loading or risk being left behind, among other aspects. Both Canadian carriers reported financial benefits after these implementations.
When Harrison moved to CSX in early 2017 and began adding PSR to that carrier’s operations, CSX received substantial criticism from shippers amid reports of service problems as the year progressed. This drew the attention of STB and resulted in a hearing before the STB to address the carrier’s difficulties.
To avoid a repeat of those problems encountered by CSX, a letter from the STB sent in September to UP sought weekly updates on the implementation.
Tag: Surface Transportation Board
Surface Transportation Board (STB) Vice Chairman Daniel R. Elliott III announced he will leave the Board September 30, 2017. He informed President Donald J. Trump of his plans by letter.
Vice Chairman Elliott was appointed Chairman by President Barack Obama and joined the Board on August 13, 2009, following his Senate confirmation. He served as STB Chairman until December 31, 2014, and returned for a second term on June 26, 2015. He served as Chairman until January 25, 2017, when President Trump designated Ann D. Begeman as Acting Chairman.
“It has been an honor to serve the United States at the Surface Transportation Board. My tenure as Chairman and Vice Chairman of the agency has brought both rewards and challenges, but most of all an appreciation for the sophisticated rail transportation industry and its shippers that serve as the backbone of our nation’s economy,” Elliott said. “A lot has occurred since I first joined the Board, from new regulatory proposals to becoming independent from the Department of Transportation. But one thing has remained constant, and that is the distinguished group of professionals and good people at the agency that I have had the privilege of working with for the last eight years.
“During the six years that I have worked with Dan, I have always appreciated his genuine dedication and commitment to the Board’s work and to the transportation community—both shippers and railroads alike,” said STB Acting Chairman Begeman. “I particularly admire the respectful manner by which Dan treats everyone he meets. I will miss having Dan as a colleague, but wish him much success as he enters the next new phase of his career.”
STB Member Deb Miller said, “When I first came to the Board, the agency was in the midst of several difficult issues and as the Chairman at the time, Dan helped me quickly transition into my new role. Since then, the Board has undertaken a number of important regulatory initiatives in which he was instrumental. Dan will be missed at the Board, and I wish him well in his future endeavors.”
Prior to his appointment to the STB, Elliott worked in the UTU’s legal department.
DeSmogBlog reported that the top campaign donor for U.S. Senator Deb Fischer (R-Neb.) is Union Pacific Railroad – and, four of her top 11 donors are railroad companies.
This past June, Senator Fischer introduced the Railroad Advancement of Innovation and Leadership with Safety (RAILS) Act – a legislative initiative aimed at rolling back rail safety requirements including electronically controlled pneumatic (ECP) brakes.
If that isn’t disturbing enough, Senator Fischer is the chair of the Senate Surface Transportation Subcommittee.
President Donald J. Trump has appointed Ann Begeman to serve as Acting Chairman of the Surface Transportation Board (STB). Begeman is currently serving a second, five-year term as a Member of the Board following her recent nomination by President Barack Obama Dec. 7, 2016, and her unanimous confirmation by the U.S. Senate Dec. 9, 2016. Ann first joined the Board May 2, 2011. Her current term expires Dec. 31, 2020.
“It is an honor to serve the public on the Board, and I am grateful to President Trump for the opportunity to lead the agency at this time,” said Begeman. “I look forward to continuing the important mission of the STB in my new capacity as Acting Chairman, working with the new Administration, my fellow Board Members, Daniel Elliott and Deb Miller, our dedicated agency staff, and our important stakeholders. I also wish to recognize former Chairman Daniel Elliott for his service and leadership, and his sincere efforts to facilitate a smooth transition during the change in administrations.”
Prior to her 2011 appointment, Begeman held Senate staff positions on Capitol Hill for more than 20 years, playing a key role in the crafting of major transportation legislation, including the ICC Termination Act, which created the STB. She served as the Republican Staff Director for the Senate Committee on Commerce, Science, and Transportation under the leadership of U.S. Senator Kay Bailey Hutchison and as the Committee’s Deputy Staff Director and Transportation Policy Advisor under the leadership of U.S. Senator John McCain. Begeman has also served as Legislative Director and Acting Chief of Staff for Senator John McCain and as a Legislative Assistant for U.S. Senator Larry Pressler. She has also worked in the private sector, serving as a benefits specialist for First American Bankshares, Inc.
Begeman is a native of Humboldt, South Dakota. She earned a B.S. in business administration from the University of South Dakota.
Chairman Daniel R. Elliott III of the Surface Transportation Board (STB) visited the Canadian Transportation Agency (CTA) in Ottawa, Canada, and signed a Memorandum of Understanding (MOU) to facilitate information sharing between the agencies.
The CTA is the economic regulator of the freight railroads and other modes of transportation in Canada. Chairman Elliott signed the MOU with Dr. Scott Streiner, chairman and chief executive officer of the CTA.
The MOU memorializes the ongoing relationship that the two agencies have cultivated in recent years. It recognizes the importance of their engagement to promote ongoing information exchanges on developments in rail transportation, best practices in their respective regulatory approaches, and recent regulatory activities and current events. The agencies will exchange only information that is in the public domain in the United States and Canada to ensure that no confidentiality concerns are breached.
“The United States and Canada are linked in so many ways, not least of them by a vast rail network,” Chairman Elliott stated in Ottawa. “It is an honor today to be signing this Memorandum of Understanding between the STB and the CTA, marking our commitment to be a resource to each other in the economic regulation of freight railroads. This friendship will enable us both to engage in productive dialogue on better regulatory practices to our stakeholders and the citizens of our countries.”
Click here to view the electronic version of the MOU.
The Surface Transportation Board released two decisions related to its oversight of Amtrak’s operations under the Passenger Rail Investment and Improvement Act of 2008 (PRIIA).
First, the Board decided that it would consider on-time arrival and departure at all stations along a passenger train’s route for purposes of assessing on-time performance. The Board will deem a train “on time” if it arrives at, or departs from, a station no more than 15 minutes after its scheduled arrival or departure.
The Board also announced that it is withdrawing its proposed policy statement on issues that may arise, and evidence to be presented in proceedings under PRIIA, in favor of a case-by-case approach to these complex matters.
“Reflecting careful consideration of an extensive public and stakeholder response to our most recent passenger rail proposals, these decisions will better position the Board to implement its responsibilities under the Passenger Rail Investment and Improvement Act of 2008,” stated Board Chairman Daniel R. Elliott III. “Improved passenger train on-time performance is an important goal, and the Board’s decisions will support that goal by clarifying the trigger for starting a proceeding, while allowing more complex and detailed issues to be resolved in the context of individual cases.”
Click the link to view the Board’s decision on On-Time Performance Under Section 213 of the Passenger Rail Investment and Improvement Act of 2008, Docket No. EP 726.
Click the following link to view the Board’s decision on Policy Statement on Implementing Intercity Passenger Train On-Time Performance and Preference Provisions of 49 U.S.C. § 24308(c) and (f), Docket No. EP 728.
In a letter dated, January 14, SMART TD President John Previsich wrote the Surface Transportation Board opposing a Canadian Pacific Railway proposal to acquire Norfolk Southern Railroad.
See the letter in its entirety below or click here to read the letter.
“Dear Chairman Elliott, Vice Chairman Miller and Member Begeman:
“I am writing to you on behalf of the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART TD), regarding Canadian Pacific Railway’s (CP) proposal to acquire Norfolk Southern Corporation (NS).
“As the representative of more than 125,000 active and retired railroad workers, I am writing to convey that we are strongly opposed to this takeover proposal. This action has the real potential for a far-reaching, detrimental impact on America’s rail network, including lost jobs and an equally negative impact on those who ship by rail. We also strongly oppose CP’s scheme to circumvent the regulatory requirements through the establishment of a voting trust to assume control in advance of regulatory approval. Such a trust would violate existing statutory and regulatory prohibitions regarding unlawful control.
“CP’s relentless pursuit of short-term profit with little regard to the impact on the greater good—workers, communities and our nation’s rail shippers is well known. History shows what happens when railroads harvest revenue for immediate self-enrichment of officers and stockholders at the expense of investing in maintenance and capital projects to ensure a viable industry well into the future. If approved, this merger would mean fewer railroads and less competition in the industry. The certain results will be fewer rail jobs, higher freight rates and diminished rail service.
“E. Hunter Harrison, CEO of CP, has already boasted in the press that NS will be a “cash cow” because he will be able to sell off what he says are “excess” rail yards for real estate development. He has also stated that NS has a “gold plated” infrastructure that is overly maintained and he could greatly reduce capital investment on that road. Such a disinvestment in the nation’s rail network could only occur in a merged environment with diminished competition among carriers. The end result is higher costs and reduced service for the nation’s shippers.
“In addition, Harrison recently announced that he will reduce capital spending on CP in 2016 by $400 million and extend his moratorium on purchasing new locomotives until 2018 or longer on that railroad. His strategy is clear; use up the current railroad infrastructure and wear out the locomotives, leaving a railroad that will need dramatic investment once he leaves. The railroads’ officers, investment bankers, consultants and stockholders will walk away greatly enriched at the expense of the future health of our nation’s rail service. In fact, a January 12, 2016 white paper issued by CP in Calgary reveals that CP’s scheme for NS is to improve service by reducing investment, a plan that they note in their closing remarks may not produce the desired results: “CP’s forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information” and that “forward-looking information is not a guarantee of future performance.”
“In summary, if Harrison is allowed to take his CP model to the NS, through either a voting trust or with regulatory approval, the end result will produce an irrecoverable disinvestment in NS’s infrastructure, substantially diminished freight service, and a marked loss of jobs.
“We urge members of the STB to safeguard our jobs and protect our nation’s freight rail infrastructure and those who ship by rail by advocating for the public interest, not enabling short term profits for the benefit of a few at the expense of the future viability of our nation’s rail system. We ask that the STB reject the proposed acquisition and also take legal action as required to prevent the circumvention of your regulatory authority through the establishment of a voting trust.”
Last week, President Obama signed the Surface Transportation Board (STB) Reauthorization Act of 2015 into law, which realigned the STB an independent entity, autonomous of the U.S. Department of Transportation.
Yesterday, STB Chairman Daniel Elliott III released a summary that outlines the major points and details of the Act. To read the complete press release, click here.
The Surface Transportation Board announced today that its staff will hold informal meetings with stakeholders between November 16, 2015 and December 7, 2015, on proposed rules for reporting railroad service performance data in the pending proceeding United States Rail Service Issues, EP 724.
The meetings will enable the STB to better assess what types of data might be useful to the public, and how individual railroads monitor performance. With measures in place to ensure public notice, fairness, and transparency, the Board is waiving its general prohibition on ex parte or private communications for a limited time in this proceeding.
“This will be the Board’s first permanent collection of service-related data. These informal meetings will allow open and candid conversations between STB staff and stakeholders regarding the highly technical data questions at issue here,” STB Chairman Daniel Elliott said. “Dialogue between stakeholders and STB technical staff is especially valuable and efficient in these informal circumstances, outside of an appearance before the Board.”
The Board’s decision announcing the meetings and providing information for their scheduling in United States Rail Service Issues—Performance Data Reporting, EP 724(Sub-No. 4), can be found on the Board’s website, www.stb.dot.gov, under “E-LIBRARY” / “Decisions & Notices / 11 / 9 / 2015.”