READING & NORTHERN  NEWS

MOTIVE POWER GETS NEW LOOK

Reading & Northern's motive power fleet is taking on a whole new look.  In the last three days, three units have been painted into a new "Corporate Image" scheme.  The new look, carries the same green and yellow of the Reading Company but is applied in a different arrangement.  SW1500 1545, B23-7 2300 and former CSMX 12 are all now wearing the new scheme.  The body is all green, with yellow lettering and frame stripe.  The rear hood of the units will receive yellow chevron striping reminiscent of a variation of the Reading Company paint scheme on the GP39-2's.  The nose of the units are being painted yellow with the logo applied.  The CSMX 12 will carry the Reading & Northern name and scheme, but may retain the CSMX reporting marks.  The units are in the lettering phase and will not be completed until next week. With the warmer weather, R&N will continue to paint the motive power fleet that will be retained.  The SD45-2's are also scheduled for the same treatment.  Don't hold your breath for the U23B's to receive paint, as they continue to remain up for sale.-Kevin Burkholder from Reading & Northern

CONRAIL  NEWS

SECS-7 DERAILMENT

On Wednesday, May 27th, 1998 at 17:07 EDT train SECS-7 reported the train in emergency at Hoboken Avenue in Jersey City, NJ. As the crew walked the train they found the 66th head car, CSXT 136248, an empty boxcar derailed, the 67th head car, TGAX 141566, an empty tank car of phosphoric acid detrucked and crumpled up with the top corner split open, and the 68th head car, CSXT 703508, a loaded gondola derailed. At 18:20 EDT the SECS-7 crew took the head 65 cars into Oak Island Yard in Newark, NJ. At 19:00 EDT a local crew had the rear 76 cars on the move to North Bergen, NJ. A trainmaster on the scene reported that the tank car did leak a small amount of phosphoric acid on the ground and that local haz-mat people at the derailment site had put down lime as a precaution. Vandalism is suspected as the cause of the derailment. -CRTS

SENF ON THE GROUND

This morning, SENF-7 derailed four cars near MP 390 on the Chicago line, east of Batavia, NY. As of early this morning, a 30 MPH restriction was placed on the line but no closures were instituted.  SENF-7 continued to Niagara Falls, albeit a bit delayed.

PRR E8A ON THE MOVE

The St. Louis Iron Mountain Railroad E8A 5898 in PRR paint was to have been shipped west on Conrail train LAPI-6.  After missing several connections in the last week and winding up in Enola, the unit continues to be plagued with missed connections.  Unit never departed Enola on LAPI-6, but was again called for LAPI-7.   The 5898 is ultimately destined to Missouri but is taking a "slow" routing.

BUFFALO LINE REHAB

In preparation for increased service, Conrail has been rehabilitating portions of the Buffalo Line.  Under the proposed Norfolk Southern operating plan, as few as a dozen trains will be operating on the Buffalo Line between Harrisburg and Sunbury.  NS and CPR are beginning to market the intermodal services between Harrisburg, PA and Albany, NY.  It is unclear to a firm start date for this service, but some indications lead towards a Conrail/CPR interchange at Harrisburg until the NS takeover in August.  NS and CPR would not comment on a start date, but did say that track work on the CPR's Sunbury Line or Freight Main is nearly complete.  The Buffalo Line has not seen any previously closed sidings reopened, however track work and signal work continues.  This line could also provide NS with a shortcut to Buffalo, NY from points in the south.  NS traffic that is destined to Buffalo is currently routed via Cleveland, OH and then east. -ERN

SD70 / 70MAC UPDATE

Conrail SD70's 2557-2561 are now in various stages of construction at Altoona, PA.  4142 is due to be released for testing and should be on the road with the 4141 early next week. The only remaining SD70MAC 4144 should be completed in the next ten to twelve days.

The SD70MAC's are working as follows:
 

NORFOLK SOUTHERN INSPECTION

Today, the CPR passenger special will continue to move over D&H rails.  A Norfolk Southern inspection trip will be operated to Albany today and the train will then be disassembled. Motive power continues to be the Guilded Rat SD40-2 5647 and D&H GP38-2 7303.

REVISED AMALGAMATION

Canadian Pacific Railway Company (CPR) announced yesterday that it plans to amend the proposed amalgamation involving its subsidiaries Ontario and Quebec Railway Company (O&Q), Toronto Grey and Bruce Railway Company (TG&B), and wholly-owned St. Lawrence and Hudson Railway Company, to broaden the alternatives available to holders of O&Q 5% permanent debenture stock and TG&B 4% first mortgage bonds.  CPR's revised proposal, which was developed in response to requests from holders of the securities would, if approved by Revenue Canada, permit the holders to elect to receive common shares of CPR's parent company, Canadian Pacific Limited (CPL), on a tax-deferred, rollover basis.

Under the original CPR proposal announced on April 28, 1998 holders of O&Q 5% permanent debenture stock and TG&B 4% first mortgage bonds were to be paid the par value of their securities in cash.  Under the revised proposal, such holders would also be able to elect to convert their securities into common shares of the subsidiary concerned, which would then be exchanged for CPL common shares having equivalent value.  The proposed amalgamation is subject to court, shareholder and regulatory approval.

The roll-over proposal is subject to receipt of a favourable tax ruling from Revenue Canada.  A major holder of O&Q 5% permanent debenture stock, who requested that CPR propose the amendment in the interest of the securityholders, has agreed to support the transaction on the basis of the revised proposal. -Canadian Pacific Railway

CSX CORPORATION NEWS AND INFORMATION

AWARDS PRESENTED FOR SAFETY

CSX Transportation Inc. (CSXT) has recognized 27 chemical shippers as winners of its 1997 Chemical Safety Excellence Award, announced John Q. Anderson, executive vice president-sales and marketing.

The awards, presented by CSX for the fourth consecutive year, honor chemical shippers who go the extra mile to ensure the safety of hazardous material shipments.

The winners in each of the four categories are:
 

• 400-1,000 carloads: CXY Chemicals
• 1,001-2,000 carloads: Westlake Group
• 2,001-5,000 carloads: Sun Company
• Over 5,001 carloads: Shell Canada/Sulphur

"This distinction has become one of the chemical industry's most prestigious awards," Anderson said.  "The honorees are shippers who, like CSXT, make safety their main concern.  These companies have a proven track record in safety, and their exceptional training and prevention programs serve as models for the chemical industry."

Three companies have been recognized each year since the award's inception: BP Chemicals, Shell Canada and Sun Company.  Two companies, PPG Industries and Degussa Corporation, have been three-time winners.  These companies have all had outstanding training programs and superior documented loading procedures.

Among the rail industry's leaders in train safety, CSXT developed the award as part of a campaign to eliminate serious tank car releases.  The award is the first of its kind to recognize chemical shippers for their safety programs.  Winners were selected on loading procedures, loading training, incident investigation and corrective action plans and processes. -CSX Corporation

BRIDGE CONSTRUCTION TO ADD CAPACITY
The recently-passed transportation bill now awaiting President Clinton's signature contains $9.5 million earmarked for construction of a second bridge over Quantico Creek on CSXT's RF&P Subdivision.  Construction of
this bridge will eliminate the only single-track segment between Washington and Richmond.  The RF&P replaced an existing double-track bridge with a single-track structure when the old bridge's pilings began to fail.

The new bridge will be wide enough to accommodate the planned third track between AF Tower and Fredericksburg. -Paul Wilson

SEPTA SERVICE EXPANDED
More than 1,000 new riders have switched from their cars to R2-Wilmington Line SEPTA trains over the past two days in the wake of the partial closure of I-95 near Chester, it was reported today.

SEPTA has increased its Delaware service by adding cars to rush-hour trains and extending into Wilmington regularly scheduled, off-peak R2-Marcus Hook trains.  Service tomorrow will be slightly adjusted with the addition of a seventh rail car on the morning Newark-Philadelphia express train (which departs Wilmington at 7:13 a.m.).  The additional car is required because there were numerous standees on this morning's trip.  Meanwhile, commuters who can use the Newark Station are encouraged to do so because of ample parking at that station.  Claymont Station, however, continues to see its parking lot fully occupied by early morning and efforts are underway to establish a park-and-ride lot nearby.  Inspectors also reported available spaces at Marcus Hook Station along the R2-Wilmington line. -SEPTA