CONRAIL  NEWS

Conrail has continued the trend of OCS trips on a weekly basis.  The OCS-401 will depart Pittsburgh today for the deadhead move back to Altoona.  For the complete OCS schedules, check the top of the page.

PRR E8A ON THE MOVE (HOPEFULLY!)

The St. Louis Iron Mountain Railroad E8A 5898 in PRR paint was to be shipped west last night on Conrail train LAPI-6.  After missing several connections in the last week and winding up in Enola, the unit was to finally move west during the night.  The 5898 is ultimately destined to Missouri but is taking a "slow" routing.

GAS SUPPLY TO FILL VACANT LOT

A Houston based company, Gas Supply Resources is having discussions with West Springfield MA town officials concerning the companys plan for a propane rail to truck terminal to be located on the southeast side of CR West Springfield yard. Plans call for two permanent tanks capable of of holding up to 386,000 gallons of product to be constructed on the vacant B.D. Nims Lumber Company lot  on Baldwin St. off Memorial Ave . While next to the rail yard the neighborhood contains a mixed residential and comercial area.  Approximately one mile away is the Big E Expostion which attracts more than 1 million during its run each September. The Big E grounds also host many events each year inculding The Amherst Railroad society show. West Springfield Fire Dept sources state this terminal will be the largest and most active in New England. Curently the Fire Dept has sent Gas Supply's safety plans back to the company for further development. -R.O. Moore

SD70MAC TRACK

One pair of SD70MAC's has strayed from the normal routings and is currently on a course between Buffalo, NY and Allentown, PA on BUAL-6.  The other SD70MAC's are working mostly out of Buffalo, NY as follows:
 

EMPLOYEE SPECIAL

Today, the CPR passenger special will continue to move over D&H rails.  The Employee Special will depart Albany-Kenwood Yard at 08:00 ET bound for Binghamton, NY.  Train is scheduled to arrive at 13:00 ET and will be tied down at East Binghamton Yard for an early morning departure on May 28.  Motive power continues to be the Guilded Rat SD40-2 5647 and D&H GP38-2 7309.

GP9R AND GP38-2 CORRECTIONS

Yesterday we reported that the only GP9R's that wear the STLH paint were the 8212, 8223, 8225, 8226 and 8245.  We should have reported that these were the only STLH-Canada assigned units in this paint.  There are an additional four units assigned to the D&H portion of the STLH.  The 8205, 8206, 8216 and 8244 are also wearing the STLH paint.  Additionally, the five GP38-2's assigned to the Iron Highway trains should have been listed as the only "original Canadian Pacific" GP38-2's assigned to the STLH.  The ten D&H GP38-2's are still active and operating on the D&H portion of the railroad. -from information by Sam Botts

  KEYSTONE CORRIDOR IMPROVEMENTS

Amtrak is moving ahead quickly with $16 million in improvements to the Philadelphia- Harrisburg Keystone Line, replacing worn out wood ties, upgrading Lancaster station with new elevators and relocating a signals shop into a larger facility.

The project hit a milestone on April 22 when Amtrak track gangs replaced 1,546 ties, an all-time high for a single day's production.

"Amtrak and the Pennsylvania Department of Transportation (PennDOT) have forged a close partnership to improve passenger rail service on the Keystone Line and these investments in the infrastructure are critical to our ultimate success," said Stan Bagley, acting president of Amtrak's Northeast Corridor. "The dynamic growth in Keystone ridership we have experienced over the past two years is a direct result of reliable, on-time performance. To sustain that performance, the railroad must be maintained in good operating condition."

The wood tie replacement work began last year and is focusing this summer on a 43- mile section of track between Elizabethtown, Lancaster and Parkesburg with additional work performed between Thorndale and Paoli. Speeds on the Parkesburg to Elizabethtown section in many cases can now be raised from 60 mph to 90 mph because of the improved track conditions, resulting in faster travel times.

Work concluded last week on the 20-mile section between Lancaster and Elizabethtown. The track gangs installed 22,375 new ties, replacing ties that were 25 to 30 years old, and completed the job in 70 days without any work-related injuries.

The tie replacement project began last year, when track and switches in Paoli and Overbrook were rehabilitated, allowing for higher operating speeds. The total cost of the tie replacement work is $12.9 million and involves up to 75 track workers at any given time. The improvements benefit both Amtrak intercity trains and SEPTA commuter trains which share the line.

Amtrak also is relocating a communications and signals repair shop from Lancaster station to a new 45,000-square foot facility in the Conestoga Valley Industrial Center. The $2.5 million project will provide Amtrak a larger, more modern facility and free up space in Lancaster station for new retail development as well as to advance plans to transform the station into a regional transportation hub.

The project is to be completed in the fall. In conjunction with the move, Amtrak is boosting its forces in Lancaster, hiring another four mechanics and planning to add at least a half dozen new electrician jobs.

Work is nearing completion on a $750,000 project to install elevators at Lancaster station connecting the concourse to the train platforms and ground floor. The elevators will improve accessibility for the disabled and for passengers with luggage.

Amtrak and PennDOT have been working together on new station development plans as well as PennDOT's planned acquisition of diesel multiple unit trains (DMUs).

The work comes at a time when Amtrak's Keystone ridership and on-time performance are on the rise. Since the start of Amtrak's fiscal year in October, more than 456,000 riders have boarded Keystone trains, compared with 342,000 for the October-through-April period a year earlier. The 33 percent increase is attributable in large part to increased service that has been added to the line.

Harrisburg and Lancaster are two of the fastest growing stations, with both showing over 24 percent increases for travel to Philadelphia and 14 percent increases for travel to New York. Paoli, Ardmore and Elizabethtown also are showing significant ridership growth and travel between Coatesville and Philadelphia is up 81.8 percent.

On-time performance has consistently exceeded 90 percent and since October has averaged 94.7 percent. -Amtrak

CSX CORPORATION NEWS AND INFORMATION

WHERE ARE THE CSX AC UNITS?

Below is a listing that shows where part of the CSX AC fleet is working.  The SD70MAC's are predominently working in coal service, based out of West Virginia.  We have also included two of the CSX AC60's.
 

CANADIAN NATIONAL  RAILWAY NEWS

CN COMMITMENT IS CLEAR

Canadian National's strategic U.S. expansion and heightened shipper focus underscore CN's commitment to help its customers succeed in the global economy, says CN President and Chief Executive Officer Paul M. Tellier. Tellier, speaking here to a meeting organized by the Greater Memphis Chamber of Commerce and five other organizations, said CN's commitment to service is clear CN's investments in equipment, technology and customer services prove how serious it is about delivering on shipper commitments.

At the same time, Tellier acknowledged the rail industry has not had a strong reputation for customer service in recent years and said this problem must be rectified.

Tellier said the answer to the industry's service challenge is not re-regulation of U.S. railroads.

"Deregulation of the industry in the 1980s gave the industry more freedom, but with that freedom came responsibilities ... Some shippers don't believe we've lived up to those responsibilities. They are now calling for re-regulation ... I'm opposed to re-regulation.

The industry must invest to improve service, and we must earn returns equal to the cost of capital. More stringent regulations would reduce our ability to make those investments. "Tellier said he isn't defending the status quo, however. Instead of the need for re-regulation, Tellier said he wants CN to promote more efficient railroad-shipper relationships, increased cooperation among railroads and greater rail industry sensitivity and responsiveness to customer needs.

"That's how we can break the status quo. That's how we can step forward with rail renewal. That's how we create value for ourselves and for our customers."

Tellier noted that Memphis "is a city with an international business focus one that understands the challenges of the global economy. We're a railroad determined to help shippers succeed in it."

Tellier stressed that rail industry service must improve "at a time when traffic patterns on this continent are changing. Increasingly in the 1990s and in the coming century extending customers' reach means moving their good north-south. North-south traffic between Canada and the United States is growing at about 11 per cent each year."

Tellier said CN has seized on the strength of north-south traffic volumes already 38 per cent of its business depends on U.S. domestic or Canada-U.S. trade to position itself and its customers for the market realities of the next century. It has signed:
 

• A definitive merger agreement with Illinois Central Corporation (IC);
• A comprehensive marketing alliance with IC and Kansas City Southern Railway (KCSR);
• An access agreement with KCSR.

CN reaches Chicago today over its own network and in cooperation with other carriers; IC runs south of Chicago through centres such as Memphis and Jackson, Tenn., to the Gulf of Mexico, and runs west of Chicago through Iowa.

Tellier said the CN-IC merger is not only timely given north-south traffic flows, but also a perfect fit because it is an end-to-end pairing with no overlap between the carriers.

The merger, he stressed, is about combining strength with strength. CN is the most improved railway in North America, while IC is the most efficient Class 1 railroad on the continent. The merger will permit CN and IC to share best practices for the benefit of all shippers, he said.

"By merging with Illinois Central," Tellier said, "we will grow the pie, not cut it ... We want to draw more shipments back to rail. We want rail to capture emerging traffic flows. We want rail to provide more of the transportation options offered by Memphis."

Tellier predicted the merger would produce greater revenue growth and higher traffic densities for the combined CN-IC. "This will help generate new jobs and investments. It will make our company a secure and stable workplace for our employees, even while the industry is consolidating."

IC will retain its name and corporate logo, Tellier said.

CN is making steady progress in consummating its IC merger. It has acquired 75 per cent of IC's outstanding common stock pursuant to a cash tender offer and is now proceeding to exchange the remaining IC shares for CN shares.

The CN-IC merger is subject to approval by the United States Surface Transportation Board, and Tellier said he's optimistic the STB will recognize the strengths of the merger. CN's second strategic initiative a 15-year marketing agreement with IC and KCSR - links points in Canada with the major U.S. Midwest markets of Detroit, Chicago, Kansas City and St. Louis, along with the markets of Memphis, Dallas and Houston.

Tellier noted that the marketing alliance also gives shippers access to Mexico's largest rail system, Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM).

The marketing alliance is effective now and does not require STB approval.

"We can now offer single-transaction and single-price service from Canada to Mexico," Tellier said. "The marketing alliance promotes competition by giving shippers new routing options and extended market reach. It means better, simpler customer service. And it means that, together, we will become the pre-eminent north-south rail carriers in the NAFTA corridor."

CN's third initiative is an access agreement with KCSR, which is subject to STB approval of the CN-IC merger. CN and KCSR would receive haulage and trackage rights over specific lines in the southern U.S. Under this agreement, CN and KCSR would also invest in automotive, intermodal and transload facilities in Memphis, Kansas City, Dallas and Chicago. -Canadian National

COMMUNICATION NEEDS TO START AT TOP

Communication is an integral part of strategic commercial transactions and to succeed it must reflect the convictions and contributions of senior corporate executives, says CN President and Chief Executive Officer Paul M. Tellier.

Tellier, addressing the Canadian Public Relations Society 1998 Conference here, said: "Modern CEOs must be intimately involved with messaging. They must be able to speak with the conviction of the head and heart. They must apply their own values and perceptions to the story line. They must provide their unique understanding of the issues."

Tellier cited CN's announcements earlier this year of its merger with Illinois Central Corporation (IC), and its marketing agreement with IC and Kansas City Southern Railway, as communication exercises in which senior corporate officers played key roles in articulating the companies' objectives and their underlying rationale.

In a global economy where information moves at great speed, Tellier said, corporations must communicate key messages rapidly and directly to key constituencies; otherwise, companies risk losing the communications agenda to other parties. Moreover, corporate messages in CN's case, that its IC and KCSR agreements will help shippers extend their market reach and compete more effectively in new and existing markets must be distilled to their essence and together constitute a compelling story.

Tellier said corporate executives must also ensure their objectives are aligned with the public interest, maintain open communication policies particularly with the media and build sound relationships with all stakeholders affected by their decisions. -Canadian National

GETTYSBURG RAILROAD
Ken Bitten, President of Northern Central Railway and Classic Rail Cars, has taken on a new challenge: he is now the designated operator of passenger trains on the Gettysburg RR in southern Pennsylvania.  Ken took on this new responsibility about 2 months ago.  He is currently operating excursion trains on the Gettysburg and plans to initiate dinner train service sometime this summer.  A number of lightweight passenger cars from the extensive Northern Central Railway and Classic Rail Cars fleets will be relocated from New Freedom to Gettysburg to support expanded operations on the Gettysburg RR. -Jack Deasy

BLUE RIDGE SCENIC RAILWAY
The Blue Ridge Scenic Railway started operation on May 23.  They offer a round-trip from Blue Ridge (Georgia, USA) to McCaysville, a round-trip distance of 26 miles.  It operates over what was L&N's Hook & Eye line. The Georgia Northeastern Railroad provides the locomotives.  Carhosts are volunteers from the Atlanta chapter of the National Railway Historic Society.

Because there's no place to run-around or turn the train at McCaysville the consist is double-ended.  Sunday's line-up was: Georgia Northeastern Railroad engine 2097 (with Operation Lifesaver logo); Southeastern Railway Museum 666 coach; Southeastern Railway Museum 206 Commissary car; Roanoke Chapter 512 coach; CSX coach; Great Smoky Mountain 63 open "kodak" car; and a Georgia Northeastern Railroad SW1200.

The schedule calls for two trips on Saturday and one Sunday.  The route to McCaysville is all downhill with the last 7 miles along the Toccoa River - very scenic.  Lay-over at McCaysville is about 45 minutes, giving enough time to browse local shops.  (McCaysville sits on the Georgia-Tennessee border and is called Copper Hill in Tennessee.  The river also changes names and becomes the Ocoee River.)  For tickets and info call 1-800-934-1898 or 706-632-9833.-Kenneth Huffines