AAR Reports A Slight Shift In Carload Declines During February

Source: BNSF (Press Release)

The Association of American Railroads (AAR) is reporting that U.S. freight railroads saw a 1.5 percent decline in carloads compared with the same month last year and a decline of 15.6 percent compared with the same month in 2008.

However, according to the March AAR Rail Time Indicators Report, 14 of the 19 major commodity categories that AAR tracks saw higher carloads in February compared with the same month in 2009. Carloads of coal, the single highest volume commodity carried by rail, were down. Excluding coal, U.S. rail carloads in February 2010 were up 7.2 percent compared with February 2009.

U.S. rail intermodal traffic, which covers the movement of truck trailers and shipping containers by rail, was up 10.1 percent in February compared with the same month last year, but down 10.6 percent for the same month in 2008.

"Rail traffic trends over the past few months, especially when you take out coal, are consistent with a slowly recovering economy," said John Gray, AAR's senior vice president of Policy and Economics. "Other economic indicators taken as a whole seem to be saying the same thing. Is a sustained recovery a sure thing? No, not yet, but prospects are certainly much brighter now than they were four or five months ago."

Record snowfalls on the East Coast last month made rail operations difficult and affected many rail customers' ability to originate or receive loads. The last week of February was the highest-volume week for U.S. rail carloads since December of 2008 - likely at least partly the result of "catch-up" traffic following the storms.

On a seasonally adjusted basis, U.S. rail carloads in February fell 0.1 percent compared with January 2010, while seasonally-adjusted U.S. intermodal traffic was down 3.6 percent in February compared to the prior month.

"Adjusting for seasonal issues that cause peaks or valleys in traffic - such as end of year holidays and the fall grain harvest - allows us to see more clearly the strength or weakness of the underlying demand for rail traffic," Gray said. "Over the past six months, the upward trend in seasonally adjusted rail traffic indicates an increase in underlying demand."

The Rail Time Indicators report, available at www.aar.org, comprises detailed monthly rail traffic data framed with other key economic indicators to show how freight rail ties into the broader U.S. economy.

See Also: Top-Scoring BNSF Locomotive Engineers Recognized With Top Gun Awards / BNSF Named Finalist As CivilianJobs.com Most Valuable Employer For Military / Railroad Photography - Saturday Afternoon At Oro Grande / BNSF Shareholders Approve Sale To Berkshire Hathaway / The BNSF Honors Three Shortline Railroads For Partnership Excellence / The Cajon Pass Railroad Museum - The Birth Of A Dream

HO Scale BNSF Items: Athearn HO Scale SD75M Locomotive - Santa Fe / BNSF / Athearn HO Scale Center Fow Hopper Car - BNSF / Athearn HO Scale 50ft Sieco Box Car - BNSF / Athearn HO Scale Iron Horse Express Electric Train Set - BNSF / Athearn HO Scale SD60M Locomotive - Burlington Northern Santa Fe / Athearn HO Scale SD60M Locomotive - Burlington Northern / BNSF

Norfolk Southern CEO Notes Positive Momentum In 2009 Annual Report Message To Stockholders

Source: Norfolk Southern (Press Release)

In his message to stockholders in the 2009 Annual Report, posted online today, Norfolk Southern Corporation CEO Wick Moorman (NYSE: NSC) says the company “withstood the economic shocks of 2009 to produce good economic results, and I go into 2010 with a sense of optimism for our future prospects.”

Compared to a year ago, Moorman said, “we have a much clearer picture of our own economic outlook and can act accordingly.” He cited the company’s strides in safety and service, along with disciplined cost control, continued investment in key projects, and aggressive pursuit of new business opportunities, as important indicators.

“Even in the face of the recession,” Moorman said, “we made significant gains in each of these areas, and these same strategies will drive our continuing success in 2010 and beyond. While the short-term economic outlook remains somewhat uncertain, the longer-term prospects for Norfolk Southern and the railroad industry remain very bright.

“We go into the new year with positive momentum. Our traffic levels increased sequentially in both the third and fourth quarters of 2009, and we’re confident many of the cost efficiencies we achieved in 2009 will remain in place as we see rail traffic continue to increase,” Moorman said.

The annual report is available on the company’s Web site at www.nscorp.com. Some 200,000 copies are distributed to stockholders, the financial community, news media, and libraries. Norfolk Southern’s annual report is certified by the Forest Stewardship Council, which promotes environmentally responsible printing standards. To request a copy, call 800-531-6757, e-mail annualreport@nscorp.com, or write to Norfolk Southern Corp., Corporate Communications Department, Three Commercial Place, Norfolk, Va. 23510-9217.

See Also: Norfolk Southern Pumped $3.1 Billion Into Local Industries In 2009 / Norfolk Southern Joins U.S. Green Building Council / Norfolk Southern Launches Improved Investor Relations Site / Railroad Job Postings For December 2009

Norfolk Southern Pumped $3.1 Billion Into Local Industries In 2009

Source: Norfolk Southern (Press Release)

Norfolk Southern Corporation participated in the location of 70 new industries and the expansion of 23 existing industries along its rail lines in 2009.

New plants and expansions represented an investment of more than $3.1 billion by Norfolk Southern customers and are expected to create 3,000 jobs in the railroad’s territory, eventually generating more than 138,500 carloads of new rail traffic annually.

Norfolk Southern assisted state and local government and economic development officials throughout 19 states in helping customers identify ideal locations for new and expanded facilities.

“The energy sector anchored our results during 2009,” said Newell Baker, assistant vice president industrial development. “Our group assisted in the location or expansion of 24 energy related facilities in 12 states across our service area. Ethanol production and distribution accounted for the lion’s share of energy projects, with 11 new and expanded facilities that began to receive NS rail service in 2009.”

The balance of other projects secured during 2009 was distributed among several of the broad product areas Norfolk Southern serves.

Norfolk Southern works with state and local economic development authorities on projects involving site location and development of infrastructure to connect customers to its rail system and provides free and confidential plant location services, including industrial park planning, site layout, track design, and logistics assistance. During the past 10 years, Norfolk Southern’s Industrial Development Department has participated in the location or expansion of 1,084 facilities, representing an investment of $23.9 billion and creating nearly 50,000 customer jobs in the territory served by the railroad.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serving every major container port in the eastern United States and providing efficient connections to western rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is North America’s largest rail carrier of metals and automotive products.

See Also: Norfolk Southern Joins U.S. Green Building Council / Norfolk Southern Launches Improved Investor Relations Site / Railroad Job Postings For December 2009

Norfolk Southern Joins U.S. Green Building Council

Source: Norfolk Southern (Press Release)

Norfolk Southern has joined the U.S. Green Building Council (USGBC), a non-profit, membership-based organization committed to a prosperous and sustainable future for the nation through cost-efficient and energy-saving green buildings.

Through its latest public-private partnership initiative, the Crescent Corridor Intermodal Freight Program, NS will capitalize on the inherent efficiencies of rail transportation to substantially reduce fuel consumption and greenhouse gas emissions. As part of the Crescent Corridor program, NS has committed to submitting buildings from three of its proposed intermodal terminals in Birmingham, Ala., Greencastle, Pa., and Memphis, Tenn., for LEED (Leadership in Energy and Environmental Design) Certification.

Norfolk Southern is USGBC’s first Class I railroad member.

“Railroads are the most environmentally friendly means of moving the goods that move the economy,” said NS CEO Wick Moorman. “Norfolk Southern’s goal is to lead the industry in emissions reduction, efficient energy use, and environmentally focused public-private partnerships.”

“LEED certified buildings are environmentally responsible and healthier places to live or work,” Governor Ed Rendell said. “Pennsylvania has been in the forefront of developing high-performance buildings – second only to California in the number of LEED certified projects. Our Energy Independence Strategy will help us do even more for our environment. This component of Norfolk Southern’s Crescent Corridor Program adds further value to this smart and environmentally friendly infrastructure investment.”

“Now as America and the world begin making a historic transition to a green economy, we look to make Alabama a leader in science and technology.” said Governor Bob Riley. “Norfolk Southern’s Crescent Corridor Program is one such project that will connect Alabama to the global markets, promote economic development, and protect the environment. Alabama will continue to be an active partner in these collaborations that foster an environment of progress, competitiveness, and innovation. “

“We need to continue building on existing clean energy policies in Tennessee and support broader clean energy efforts,” Governor Phil Bredesen said. “Tennessee is truly positioned to be a leader in the development of regional and national energy solutions that can provide economic and environmental benefits to our citizens. Norfolk Southern’s Crescent Corridor Program will provide a clean, environmentally friendly future for Tennessee and the nation, while further enhancing our competitiveness and spurring economic growth.”

“By becoming a member company of the U.S. Green Building Council, Norfolk Southern is demonstrating its commitment to our shared goal of a more sustainably-built environment,” said Chris Smith, USGBC’s chief operating officer.

The LEED certification system rewards current best practices and provides an outline for buildings to use less energy, water, and natural resources while improving the indoor environment – with the goal of maximizing operational efficiency while minimizing environmental impacts. The process for obtaining LEED certification is based on accumulating points in five areas: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality. NS actively has been incorporating LEED standards into its building and planning designs and is committed to achieving these standards.

Norfolk Southern also is implementing sustainable operations throughout its facilities, including the use of the state-of-the-art low emission cranes and tractors that will reduce the particulate emissions by 90 percent and nitrogen oxide emissions by 45 percent. NS is experimenting with new methods to reduce truck idling, and implementing improved strategies for reducing electricity usage at all of its facilities as well.

Norfolk Southern Corporation (NYSE: NSC) is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products.

See Also: Norfolk Southern Launches Improved Investor Relations Site / Railroad Job Postings For December 2009

Norfolk Southern Launches Improved Investor Relations Site

Source: Norfolk Southern (Press Release)

Norfolk Southern Corporation today launched a more comprehensive and user-friendly investors section on its Web site. To visit the site, go to www.nscorp.com and select the “Investors” tab.

Additional information and improvements to navigation make it easier to access news releases, earnings presentations, analyst coverage, transcripts, webcasts, podcasts, and other materials pertaining to the financial performance of Norfolk Southern.

A new financial “tear sheet” provides an at-a-glance overview of key facts and figures, including stock performance, headlines and events, and SEC filings. The site now also includes ownership information, e-proxy voting capability, dividend history, an interactive event calendar, and RSS feeds relating to quarterly earnings presentations.

NS launched www.nscorp.com, including its investors section, in 1996. Today, www.nscorp.com hosts more than 14,000 visitors daily.

Norfolk Southern Corporation is one of the nation’s premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products.

See Also: Railroad Job Postings For December 2009

The Diesel Railroad Locomotive - From Box Cabs And The SD40 To The SD70 And Gensets

This article is available at Rails West!

Visit Rails West The Magazine Of Western Railroading - HERE

Railroad History - Fun Facts - The Modern Era (1980-Present)

Written By: Ken Hulsey

In the modern era the American railroad industry went through a series of drastic changes. Deregulation, mega-mergers and intermodal service, which ultimately saved the railroads, changed the landscape forever.

Let's take a quick look at some of the things that happened post 1980:

The Staggers Act deregulated railroads and allowed them to set their own rates for shipping services.

In the 1980s’ the Reagan Administration distanced itself from Amtrak. It was their policy that US passenger rail service should survive on its own. Amtrak as forced to pay for half their operating expenses from passenger fares. The railroad experienced more hard times in the 1990s’ and several unprofitable trains had to be discontinued. In response to all this, the railroad added several new features to rail cars such as TVs and Viewliners.

VIA likewise suffered financially during the 1980s’ and 90s’. The railroad purchased an refurbished dozens of passenger cars from US railroads. They continued to operate passenger trains in an “old-fashioned” manor with Pullman like sleeping cars and rear end observation cars. The railroad even allowed private companies to operate trains to tourist destinations.

In the 1990s’ several railroads began to merge into one another. Railroads found it more financially viable to exist as one large railroad instead of several small ones by the end of the decade there were only seven Class I railroads in the United States where once there were hundreds.

RailTex began as a railroad car leasing company. They soon started buying up small feeder railroads. Before long they owned several small railroads in the US and few in Canada and Central America. Though RailTex owns the smaller railroads they still let them operate independently.

In November 1995 the Canadian Government released all of its shares in the Canadian National on the New York, Montreal, and Toronto stock exchanges allowing the railroad to become a private company. In July 1999 the Illinois Central merged with the CN giving the railroad a major US artery, a frost free port at New Orleans and connections with Mexican railroads.

Railroading Terms - From The Modern Era (Circa 1980 - Present):

Second Generation Diesels – Developed in 1972 the EMD “Dash 2” series of locomotives provided 3,000hp with reduced emissions and improved traction control.

Engineer-less Locomotives – The use of a remote control locomotive, operated by a nearby worker, to perform switching duties.

FRED – The Flashing Rear End Device eliminated the need for a caboose on a freight train. The device monitors air brake pressure and motion and then relays the information to the engineer.

EABS – The Electronic Air Brake System is an electronic braking system designed to eliminate air brakes. The EABS is able to set the brakes on each car simultaneously via a computer in the locomotive.

Since the 1980s’ railroads have adopted environmentally friendly policies and practices in their day-to-day operations. Railroads have begun to clean up their old facilities, regulate the use of toxic substances and control the amount of pollutants that are released into the air and water.

With passing of the Stagger’s Act in 1980 the deregulation of the railroad industry made the ICC obsolete. In 1995 the government initiated the ICC Termination Act brought an end to the 109-year old commission and the “Railroad Era”.

Random Thoughts About The History Of Railroading In America:

In my opinion the building of America’s first transcontinental railroad is the most significant event. The linking of the East and West opened up the country for settlers and farmers to change the landscape of the “Great American Desert”.

Trains hold the same kind of magic that ships, planes and automobiles do. There has always been a romance about them. For myself personally, I have always been in awe of the massive size and power of trains. I suppose it is the main reason I love large steam locomotives so much. I once heard them described as “beautifully ugly” I guess that seems to fit them to a “T”. Once trains get in your blood they are there to stay.

See Also: Railroad History - Fun Facts - The Post-War Era (1945-1980)

Railroad History - Fun Facts - The Post-War Era (1945-1980)

Written By: Ken Hulsey

Modern Times & Twilight of the Railroad Era

Here are some fun, and interesting, facts from the post-war era of American railroading, circa 1945-1980. It was a time of transition as railroads moved from traditional steam power to diesel and railroads tried to compete with other growing forms of transportation.

After WWII the economical and social environment of the United States changed drastically. The railroads main forms of competition, which had been held back due to the war, were now free to serve the public. Factories that once built weapons now were churning out automobiles, gasoline that was rationed during the war was now cheap and plentiful, buses had cheaper fares, interstate highways were constructed and airlines grew in number. All these factors, combined with anti-railroad legislation left over from the turn of the century, spelled hard times for the railroads. Passenger and freight traffic experienced a sharp rate of decline after the war.

Cars, trucks and buses utilized an interstate highway system that was built with government money. Likewise airlines were heavily subsidized. While the government was investing money in other forms of transportation the railroads had to maintain their own rails (Highways were maintained by the government) and pay heavy taxes.

When the railroads switched from steam to diesel during the decade after WWII the work force changed drastically. There was no longer a need for the massive maintenance shops the kept the fleet of steamers up and running. This was an extreme hardship in several small towns where the locomotive shops were the areas main employer.

President Kennedy devised “Arbitration Award 282” in August 1963. This allowed they railroads to do away with the now unnecessary position of “fireman” on passenger and freight trains. The main provision of this act was that railroads simply couldn't fire all of their fireman. Existing fireman would be allowed to retire, resign or accept a severance package.

Diesel Locomotive Manufacturers of the post WWII era:

General Motor’s Electro-Motive Division – Became an industry leader.
Fairbanks-Morse – Built early gasoline driven rail cars, 1,000 hp switchers and a limited amount of road diesels. Went out of business in 1958.


Baldwin – The steam locomotive giant bought the Lima Locomotive Company in 1950. Used Westinghouse equipment to build diesel-electric locomotives. Though the manufacturer had lucrative contracts and built 3,000 units, its practice of marketing “customized diesels” proved antiquated.


The American Locomotive Company (ALCO) – Allied with GE to gain an early hold in the locomotive market. Produced a 2,000hp locomotive for dual freight and passenger service. GE severed its relationship and the company went out of business, although it still built locomotives through the Montreal Locomotive Works until 1969.

The EMD GP7 & GP9 were very unique locomotives. The design was initially envisioned as a switcher, but its good visibility in both directions leads to its use a mainline workhorse. Overall 6,000 “Geeps” were produced and many units remained in service until the 1990s’.

In the 1950s’ and 60s’ the American and Canadian railroads made several attempts to lure passengers. The US railroads sponsored a radio program to keep the industry in the public eye. Railroads from both countries introduced “Vista Dome” cars that gave passengers an exceptional view of the countryside. New private sleeping cars were introduced. The Canadian railroads even tried a moderately successful staggered rate program known as the “Red. White & Blue Fares.” Railroads even developed new modern looking logos and shiny new cars, but in the end it made little difference.

When the railroads in the United States and Canada were threatening to abandon their passenger service the respective governments stepped in and formed the National Rail Passenger Corporation (Amtrak) and the Crown Corporation (VIA). Both governments deemed that passenger rail service still filled a public need and that this was the only way to keep passenger trains running.

In the 1950s’and 60s’ several railroads merged into one another. These railroads generally serviced adjacent areas and found better financial stability by increasing their base. This trend happened again in the 1990s’ when 40+ Class I North American railroads merged into 7.

Although the Pennsylvania and New York Central merged into one railroad, the Penn Central, the railroad still operated as if they were still separate. Crews from the individual railroads often fought and had trouble learning the practices of the other railroad. Shipments being delivered to the wrong destination and derailments were common. When the ICC ordered that the failing New York, New Haven & Hartford to merge into the Penn Central things became even more complicated. The line began bankruptcy proceedings in 1970.

Union Pacific vice-president William McDonald came up the idea of forming Conrail to bail out the failing Penn Central, Lehigh Valley, Central of New Jersey and Reading railroads.

Railroads began to use telephones, television monitors, microwave communications, computers, classification yards, hot box detectors, undercarriage inspection units, Timken roller bearings and disc brakes.

New Railroad Terms From The Post WWII Era:

TOFC – Trailer on Flat Car is the shipment of truck trailers on a railroad flat car.


COFC – Container on Flat Car is the shipment of a international shipping container on a railroad flat car.


Auto Railers – Is the practice of attaching railroad wheel trucks directly to trailers or containers to eliminate the use of a flat car.


Unit Trains – Unit trains are comprised of one type of freight car that hauls one specific commodity such as coal or wheat.


Mini Trains- Mini Trains are 10 to 15 car Unit Trains.


Due to the changing economic climate and the decline of rail service the Pullman Company, REA and US Railway Mail Service became outdated and unneeded.