Track Warrants
"The Electronic Internet Newsletter of Western Railroading"
P.O. Box 720301
San Jose, CA 95172
USA
Issue No. 33
October 28, 1996
Steve Sloan
Send news, correspondence and images to: stevesln@aimnet.com
SP 8656 Leads the cans around the Caliente Curve.
© Steve Sloan
EDITORIAL
MORE GREEN FLAGS
News to October 27th. Another biggie! This issue has following
sections, stay tuned. The mail list has been updated, so some of you
are getting your first Track Warrants.
WEB VERSION
The web version will be posted soon. The last issue
had a shot of an EMD SD70 on the point of a train going into tunnel two
on Tehachippi.
AMTRAK
UNUSUAL AMTRAK CONSIST
Oct18--I was in Jack London Square (Oakland, CA) to take pictures of the
Nina (replica of Columbus' ship) when I saw the most unusual Amtrak consist
backing into the new Oakland Amtrak station (pretty sure it's the northbound
to Chicago = Amtrak 5 or 6?):
SP 7441 (SD45R), Amtrak 828 (Genesis?), Amtrak 377, Amtrak 1209 Baggage
car, Amtrak 39043 Transition sleeper, Amtrak 32059 Sleeping car, Amtrak
32021 Sleeping car, Amtrak 38025 Dining car, Amtrak 33007 Sightseer lounge,
Amtrak 34062 Coach, Amtrak 34045 Coach, Amtrak 34098 Coach, Amtrak 39027
Transition sleeper, SP 140 (800495) Private car - Stanford, SP 150 (800486)
Private car - Sunset, (800285) Private car - Silver Iris, (800313) Private
car - CP 100 - Virginia City.
Tony Meadow
GOOD DEAL
Oct12--I have to go from Roseville to San Francisco three times this week,
so rather than drive I purchased a 10-ride Amtrak pass. Good deal: $9 each
way, Sacramento to the Ferry Building to catch the California St. cable
car.
So at 5:15 AM we were sitting in Sacramento all ready to go on Capitol #721.
Lights, camera... ...but no action. At 5:20, the conductor came on with
the message: "Our engineer can't work because of the hours of work
law. Another engineer will be here by 5:40."
5:40 came and went, and the conductor pushed the time back to 6:00 AM; that
came and went, and at 6:20 there was a tentative tug, two toots, and the
train moved at least 8 or 10 feet west. We held again, and pretty soon,
right on timne, two Genesis units appeared trailing a baggage/mail car and
the Coast Starlight. No sooner did it stop, than we started rolling.
The conductor then announced that the trip, coffee and orange juice was
on the house.
OK, how can you have an engineer go dead on the law and NOT have another
qualified engineer???
By the way, it was a nice trip, both ways. I do it again tomorrow and Wednesday,
plus three days in November. There's no way to drive to the City and back
for $18.
Tom Krummell
BNSF
BN 2099
Oct11-- About a month ago, some local railfan friends photographed (!) BN
2099, a GP38-2, coming through Colorado Springs northbound on the joint
line and wearing the new orange/green paint and new logo on nose! Has anyone
any idea what the history of this is?
Keep up the good work!
Tom Lawhorn
I DRIVE THE I-94 CORIDOR
Oct11--First thanks for you continued news letter. I do enjoy it to the
upmost. as you probly don't know I'm a 15 year vetren driver for "
Greyhound Lines " I drive the I-94 coridor from Billings, Mt. to Steele,
Nd.. The other day 10-9-96 at aprox. 9:35 a.m.M.D.T., on an east bound BN.
frieght, I saw 4 new CSX High Cube boxcars. These four cars were labeled
"BIGBLUE". Didn't know if you have seen or heard of these cars,
so I thought I'd let you know. Didn't get to see the numbers though, "
hard to get all details at 70 mph westerly, and train running 45 or so east.
Also I' staring to see the new Dash 9's, so far only on grain trains though.
Looking forward to seeing more. What a nice change, looking forward to seeing
more on line. Even the passengers coment on them when we see them in the
daylight hours. Good move on the Santa Fe's part.
If you would like to hear a little skuttle butt, I had a young lady on my
coach the other day, said her father and brother work for the MRL.. Said
they are getting nervous about BNSF. trying to reaquire the old NP. lines.
Well thought you'd like a little news from Montana. Once again great work,
and looking forward to next news letter.
R. E. Brant
FORMER SP EXECUTIVES JOIN BNSF
Oct08--Burlington Northern Santa Fe Corporation today announced the appointments
of Peter J. Rickershauser, 47, as vice president, Marketing -- UP/SP Lines,
and Ernest (Buck) L. Hord, 50, as vice president, Operations -- UP/SP Lines.
Both are new positions for BNSF and the appointments are effective later
this week.
Rickershauser and Hord both resigned from Southern Pacific Rail Corporation
(SP) yesterday. Rickershauser had been vice president, Sales, based in Denver,
where he headed the field sales organization with responsibility for all
carload selling activities except for automotive and coal. Hord had been
assistant to the vice president -- Operations, also based in Denver.
via James Czarnecki
"I DON'T KNOW HOW THEY SURVIVED IT"
Oct05--Three of the crewmen who were injured when two freight trains collided
near Lovell, Wyo., Friday morning remained hospitalized in Billings Saturday.
They had relatively minor injuries, considering the the crash tossed one
locomotive into the air and crushed another.
John Williams the Yellowstone Division Trainmaster said an engineer had
a broken left leg, a conductor broke both legs and the brakeman broke his
left arm. "I don't know how they survived it," Williams said.
Williams said he was told that only the brakeman jumped from the engine
and the other two crewmen rode out the wreck.
The track on the main route between the Midwest and the Pacific Northwest
was reopened by 1 p.m. Saturday.
Three locomotives pulling 47 cars were heading west from Lincoln, Neb.,
to Laurel, Mont. The westbound train rammed an empty local train parked
on the tracks just west of Lovell. The crew members of the local train apparently
had stopped the train and gotten off to go to a convenience store.
via Dave Bono
NORTHWEST REPORT (WHERE IS HERE?)
Oct06--BNSF 1006 arrived Friday morning on 01-007-30 for training of engineers
and hostlers here. We moved it from the service track area over to the south
yard, right in front of the yard office for training. This moring a 01-UKCCM-01
arrived with 6800+ feet of militay equipent from Kansas City, Mo. It had
for power BN 7910, BN 601, and KCS 735. This is the second one that has
arrived, the first was last Thursday (01-UKCCM-29). The Mobase Local (01-53712-06)
is going to be taking it up to Ft. Lewis today. Arrived on 01-007-02 were
3 ATSF units, but I can't rember the exact numbers. I thnk they were: ATSF
687 (Dash-944CW), ATSF 164, and ATSF 3700. I've noticed more and more of
the new BNSF units are being used for more of the grain traffic. Train 009
has been changed. I belive it now goes to Spokane and changes to 309 which
only has Tacoma traffic. Ever since we got TSS on-line I've been able to
"see" whats been coming and going a little easier. One of the
problems with TSS is that it's a little harder to see when a unit is coming
up for federal tests. We have had 3 or 4 units past due, but once noticed,
we ship them to Interbay.
Emory Lehman III
BNSF Today
BNSF OPERATES FIRST TRAIN ON UP-SP TRACKAGE RIGHTS
Oct08--A new era for BNSF was ushered in today as the long-anticipated start-up
of train service using trackage rights gained in the Union Pacific-Southern
Pacific merger became reality.
Two trains, one in each direction, began operating today between Denver
and Stockton, Calif., on UP-SP tracks as part of the 3,500-mile package
of trackage rights granted to BNSF by the Surface Transportation Board as
a condition to the STB's August 12 approval of the UP-SP merger. The trains
are mixed freight, carrying grain, steel and other products.
According to BNSF's operating plan filed with the STB on Oct. 1, two trains
per day will operate on this route, although more trains could be added
as needed. BNSF expects to begin train service on all of the routes where
it was granted trackage rights by mid-December. Tomorrow, train service
is expected to begin in Texas between the cities of Temple and Kerr, and
between Houston and Corpus Christi/Robstown.
For the most part, new trains will be operated by BNSF employees. Because
of agreements with UP and SP, the route that began today between Denver
and northern California will be utilized by UP-SP crews.
ALL SERVICE MEASUREMENT MOVES TO TSS
BNSF has completed its first full week of measuring service performance
using the Transportation Support System (TSS) and the results are encouraging.
Prior to last week, the COMPASS system was used to measure performance on
the former BN. As the TSS cut-over progressed during the third quarter,
the accuracy of this data degraded, with reported performance for non-unit
Grain and the Merchandise Business Unit some seven to eight percentage points
low.
Under TSS, measured performance for these two categories of traffic is currently
overstated by two to th ree percentage points. This is due to the transition
of goal values from the DB2 data base used by COMPASS, to the BNSF TSS goal
table. "The business units and the cross-functional service team are
increasing their efforts to identify and correct goals with excessive times,"
says Hume Bryant, assistant vice president, Measurement. "Their focus
on service failures often identified goals that were too tight, but since
movements with excessive time in their goals seldom fail, these never entered
the population for analysis. Reports to address this gap have been added
to the improvement process."
For the third quarter, system-wide performance was 90.5 percent on-time,
a three and one-half percent increase from the second quarter. With all
service performance measurement now on TSS, BNSF is finally focused on a
permanent measurement system. The expectation is that performance improvement
efforts will be much less diffused by data communication issues, and the
drive for continuous improvement can be intensified with an even better
fourth quarter.
MAJORITY OF SAFETY HOTLINE CALLERS CITE QUALITY OF LIFE CONCERNS
Oct09--Quality of life issues such as line-ups, staffing, fatigue and
crew calling continues to be the category receiving the most calls on BNSF's
safety hotline. As of Sept. 29, 1,659 calls had been received on the safety
hotline.
Established in March 1996 as part of the New Era of Safer Operations, the
safety hotline allows employees to report safety concerns quickly and easily.
The number is monitored around-the-clock by representatives of the DuPont
safety group. All callers remain anonymous unless they specifically ask
to have their name included with the call request.
Safety concerns reported to the hotline are entered into a BNSF database
and forwarded to the appropriate contact for immediate handling. Calls are
categorized by the type of concern mentioned.
GONDOLA PRODUCED BY HAVELOCK BEARS NEW LOGO
(those bears have been busy--Steve)
Oct10--A black gondola proudly portrayed the BNSF logo recently at Havelock
Shops. The logo, applied to BNSF 512000, marked the first car produced by
Havelock to bear the symbol of the new Burlington Northern Santa Fe.
CTC UPGRADE ON NORTHERN LINE SEGMENT IMPROVES EFFICIENCY
Oct11--Centralized Traffic Control (CTC) has been installed on the 19
miles of double track between Epping and Williston, N.D., on the Northern
Lines to help increase track capacity in this high-density corridor and
more efficiently manage train movements.
CTC provides movement authority by a signal indication. In effect, a train
dispatcher will no longer need to provide a train crew a track warrant for
movement authority, which is a more time-consuming task. CTC will also allow
for increased speeds between these two stations -- from 59 mph to 79 mph
for passenger trains, and from 49 mph to 59 mph for freight trains on both
tracks.
Denny Boll, assistant vice president of the Signal department, is pleased
with CTC installation along this strategic piece of track.
"Now that we have installed CTC, we can run trains in either direction
without the train dispatcher having to issue a track warrant," Boll
said. Bill Peterson, director of signal engineering who supervised the complex
rewiring of the signal system between Epping and Williston, says this will
make the railroad more efficient. "We're going to be able to put a
train on the other main line more easily when the need arises."
The track between Epping and Williston had previously used the automatic
block signal system (ABS) for movement with the current of traffic, and
track warrant authority for movement of trains against the current of traffic.
LOCOMOTIVE ENGINEER RETIRES AFTER 48 INJURY-FREE YEARS
Locomotive engineer, G. D. "Butch" Butcher, has retired from
BNSF after 48 years of injury-free service. Butcher began his career in
1948 as a road foreman for Santa Fe in Newton, Kan. and was promoted to
locomotive engineer in 1963, a position that he held until his retirement
on Sept. 24, 1996.
"He set a standard that all of us should strive for," said Mike
Bernard, rail foreman of engineers.
CSX AND CONRAIL TO MERGE
Oct15--A major rail merger was announced today between CSX Corporation
(CSX) and Conrail Inc. that would create a 29,645-mile system covering a
territory from Chicago, Boston and New York to Miami and New Orleans.
According to a news release issued by both companies, the new system will
offer more extensive single-line rail service to shippers and receivers
in 22 states. The merger is expected to be complete in late 1997.
"Our new company will provide new single-line rail service to major
markets east of the Mississippi and will greatly benefit shippers, the communities
served and the nation as a whole," said John W. Snow, chairman, president
and CEO of CSX.
The merger agreement calls for Conrail shareholders to receive a combination
of cash and CSX shares valued at about $8.4 billion, or $92.50 per Conrail
share, based on the recent trading prices for CSX's common stock. Snow will
become chairman and CEO of the new holding company. David M. LeVan, Conrail's
chairman, president and CEO, will become the new holding company's president
and chief operating officer. Upon completion of the merger, LeVan will be
president and CEO of the two railroads. The new holding company will be
headquartered in Philadelphia, with a significant presence in Richmond.
Operating headquarters for the two railroads will remain in Philadelphia
and Jacksonville, Fla. for the foreseeable future. A new name for the combined
company will be announced later.
BURLINGTON NORTHERN SANTA FE CORPORATION DECLARES DIVIDENDS
Oct17--Directors of Burlington Northern Santa Fe Corporation (NYSE:BNI)
today voted to pay a regular quarterly dividend of 30 cents per share on
outstanding common stock.
Dividends on common stock will be paid on January 2, 1997, to shareholders
of record December 6, 1996. Common shares outstanding on September 30, 1996,
totaled approximately 153 million.
GRAIN SHIPMENTS BRING HOPPERS OUT OF STORAGE
Arriving late, but nevertheless a welcome sight, the 1996/1997 grain
transport season has been taking shape during the past few days. October
15 marked the first day in months that all of BNSF's more than 37,000 grain
hoppers were at work.
With the soybean, wheat and corn crops at or near record levels, increasing
volumes of grain should move on BNSF routes throughout the remainder of
1996, and probably well into 1997.
The primary destinations are grain-to-ship loading points along the Columbia
River in Ore.; Puget Sound at Seattle and Tacoma, Wash.; the Great Lakes
region at Superior and Duluth, Minn.; the Gulf of Mexico at Houston, Galveston
and Beaumont, Texas; and to a lesser degree, to Mexico through El Paso and
Eagle Pass, Texas -- the latter using trackage rights recently obtained
from UP/SP. As additional trackage rights acquired from UP/SP are fully
developed, BNSF plans to move more grain to Mexico through Laredo and Brownsville,
Texas.
Currently, dozens of grain vessels from Asia are headed for the Pacific
Northwest to be filled with grain from the Midwest. While the slower start
has negatively impacted BNSF's fall grain volume forecast, the current acceleration
in shipments, combined with BNSF's efficiency in cycling equipment for reloading,
could offset the slow start-up. The slow start to this year's fall grain
transport season resulted from market and weather factors, according to
J. B. Elliott, assistant vice president, agricultural commodities business
unit.
During the past few months, relatively low grain prices, combined with depleted
elevator inventories, had farmers stockpiling grain instead of shipping
it to market.With mild fall weather and the absence of freezing temperatures,
corn farmers are letting their harvest remain in the field to grow, which
should result in a larger and better harvest. Even though the delay has
meant lower-than-anticipated grain volume to date, the next several months
are promising, which is good for farmers, the worldwide grain supply, BNSF
and its customers.
E-MAIL SYSTEM CHANGES
Oct18--The process of communicating via computer is going to change
for BNSF employees. On Sept. 14, BNSF implemented changes to its E-Mail
systems that will affect how messages are sent and received through cc:Mail,
X.400 and EMC2.
The changes are required because of BNSF's switch to a new service provider
and its installation of a new gateway designed to consolidate E-Mail addresses.
Some aspects of the old system will remain in use until Nov. 17 to minimize
transition problems. On that date, all changes will have been completed
and the transition period will end.
RECYCLING CENTURY-OLD MATERIALS EARNS BNSF AWARD
Oct21--Turning an old locomotive and freight car repair shop and boxcar
yard into a gleaming new intermodal facility won BNSF the 1996 recycling
award issued by the State of California's Integrated Waste Management Board.
The Waste Reduction Awards Program (WRAP) was issued to BNSF for sprucing
up the San Bernardino, Calif., century-old property into a modern intermodal
facility dedicated last June.
"We dismantled or demolished 62 buildings totaling more than 600,000
square feet, which yielded a tremendous amount of material for potential
recycling, including 450,000 bricks, 8,000 tons of steel beams, 1,000 tons
of wood, 1 million board feet of dimensional lumber, 210,000 tons of concrete
and 75,000 tons of contaminated soil," said Mick Hardin, manager of
environmental remediation at San Bernardino. In addition, 20,000 tons of
brine-contaminated solid were excavated and reused as fill material at another
site.
Intact bricks were cleaned and sold. Broken bricks were crushed and along
with concrete, reused as base materials in the 135-acre intermodal facility.
Steel and wood were sold and shipped to Mexico for reuse. Oil-contaminated
soil was blended with other construction materials to create high-strength
asphalt concrete used to support the large cranes that lift trailers and
containers on or off railcars.
"By recycling these materials, BNSF avoided much of the cost of purchasing
new materials and eliminated a substantial cost associated with transporting
a large volume of materials to appropriate disposal sites," Hardin
said. "This is truly a win-win-win situation for the community, the
environment and BNSF."
CHRISTMAS TREES ARE HEADING TO MIDWEST AND SOUTHWEST
Oct21--Although Halloween hasn't arrived yet, 'tis the season to be
shipping Christmas trees.
Shipping the green hallmarks of Christmas to the Midwest and Southwest begins
in October with the third week in November being the heaviest shipping period.
Last year, BNSF shipped 344 units in intermodal trailers or containers mostly
to Denver, Colo., Memphis, Tenn., and Chicago, Ill. Usually, about 500 trees
fit into a 45-foot container or trailer. This year projections are for about
the same number of units shipped.
Among the trees being shipped in November will be the City of Fort Worth
Christmas tree sponsored by the Fort Worth Jaycees, a community involvement
group. The tree purchased from Snow Line Tree Company in Kalispell, Mo.,
stands between 55 to 65 feet tall and will be lit on Nov. 28.
BURLINGTON NORTHERN SANTA FE REPORTS THIRD QUARTER RESULTS
Oct21--Net income of $247 million or $1.58 per common share, up 4 percent
from $237 million or $1.53 per common share for the same 1995 period on
a comparable basis.
Third-quarter operating income was $476 million, $7 million higher than
a year ago on a comparable basis.
Operating ratio for the 1996 third quarter was 76.8 percent compared with
77.6 percent for 1995 on a comparable basis.
Net income of $645 million or $4.14 per common share for the nine months
ended September 30, 1996, up 22 percent from net income of $530 million
or $3.45 per common share for the same 1995 period on a comparable basis.
BNSF today reported third quarter 1996 net income of $247 million, or $1.58
per common share, compared with pro forma third quarter 1995 net income
of $237 million or $1.53 per common share.
Pro forma amounts are presented on a comparable basis to 1996 and include
1995 amounts for both Burlington Northern Inc. (BNI) and Santa Fe Pacific
Corporation (SFP) which became subsidiaries of BNSF in a business combination
effected September 22, 1995.
Revenues of $2.05 billion for the third quarter 1996 declined 2 percent
from combined third quarter 1995. Agricultural commodities revenues declined
$100 million or 30 percent due to a significant decline in corn exports,
compared with record corn and wheat exports a year ago. Among other major
sectors, coal revenues increased 5 percent to $520 million, chemicals revenues
increased 8 percent to $190 million and intermodal revenues increased 2
percent to $529 million.
"Our 1996 third quarter performance beat last year's record quarterly
results, even with a $100 million shortfall in agricultural commodities
revenues," said Robert D. Krebs, president and chief executive officer
of BNSF. "This demonstrates the value of our commodity balance and
tight expense controls."
Third quarter 1996 operating expenses were $1.57 billion, $54 million below
pro forma 1995. Compensation and benefits expense declined $23 million to
$633 million, due to a lower number of salaried employees as a result of
the merger. Purchased services declined $22 million to $202 million due
to lower professional service fees and intermodal drayage expenses. Material
and other expenses of $191 million declined $24 million due to synergies
from the merger and lower personal injury expenses resulting from a continued
decrease in employee injuries. The expense reductions were partially offset
by increases in fuel, equipment rents and depreciation and amortization
expenses.
Operating income was $476 million for third quarter 1996 compared with $469
million for the same period in 1995, and the operating ratio was 76.8 percent
for the third quarter 1996 compared with 77.6 percent a year earlier. Interest
expense declined $10 million to $76 million reflecting lower debt and interest
rate levels.
NINE-MONTH 1996 RESULTS
BNSF net income for the nine months ended September 30, 1996 was $645
million, or $4.14 per common share, compared with pro forma 1995 net income
of $530 million, or $3.45 per common share. Revenues for the first nine
months of 1996 were $6.12 billion, up slightly from the $6.09 billion reported
for the same period in 1995.
Operating expenses of $4.84 billion for 1996 declined 3 percent from comparable
1995 expenses. Compensation and benefits and purchased services decreased
by a combined $131 million as a result of employee reductions and other
merger synergies. Material and other operating expenses decreased $49 million
due to merger synergies and lower personal injury expenses. These decreases
were partially offset by increases in fuel, equipment rents and depreciation
and amortization expense. Fuel expense was $34 million above 1995 reflecting
an 8 percent increase in price.
Operating income increased 14 percent to $1.279 billion for the nine months
ended September 30, 1996, compared with pro forma 1995 operating income
of $1.121 billion. The operating ratio was lowered to 79.1 percent for the
first nine months of 1996 from 81.6 percent for the same 1995 period on
a comparable basis. BNSF Today
KREBS REVIEWS THIRD QUARTER PERFORMANCE IN CONFERENCE CALL
Oct22--In his quarterly call with supervisors today, BNSF President
and CEO Rob Krebs said the company has continued to make progress in safety
but that there are still too many injuries. Mr. Krebs called the October
4 BNSF main line train collision which injured three employees at Lovell,
Wyo., "a disaster from a human standpoint," adding that it indicated
BNSF must redouble its efforts, and that every accident is preventable and
no accident is acceptable.
In a review of third quarter financial performance, Mr. Krebs noted that
BNSF improved third quarter net income despite not having a great revenue
quarter by doing a better job of managing expenses. "Our operating
ratio was down to 76.8 percent, which is darn good, and earnings were up
five cents per share, " said Mr. Krebs.
Mr. Krebs also said that he appreciated employee patience amidst all of
the change underway at BNSF.
"There isn't a whole lot more we could be changing right now,"
said Mr. Krebs, who said that where BNSF has moved too fast and experienced
difficulties, such as with the TSS rollout, the company is slowing down
the pace. He said the company may consider adding people in a few areas,
but said BNSF would be very careful in doing so, noting that the company
already had plans to add several hundred train, yard and engine employees
by the end of 1997.
Mr. Krebs said he does not see business picking up a great deal in the fourth
quarter and that BNSF would have to continue to improve performance by lowering
expenses.
NORFOLK SOUTHERN OFFERS TO BUY CONRAIL
Oct23--Today, Norfolk Southern Corp. offered an all cash tender offer
for all of the outstanding common shares of Conrail Inc. at $100 per share.
The proposal comes one week after CSX and Conrail announced plans to merge.
Norfolk Southern's unsolicited offer, valued at roughly $8.1 billion, tops
CSX's offer by nearly $1 billion. The CSX offer, a combination of cash and
CSX stock, was initially worth $8.4 billion, but its stock price has fallen
more than 6 percent since then, pulling down the value of its bid to under
$7.2 billion.
"This proposal is better on every point than the CSX/Conrail proposal
announced last week," said David R. Goode, chairman, president and
chief executive officer of Norfolk Southern, in a press release. "A
combined Norfolk Southern-Conrail will create a more balanced eastern rail
system and will do so by increasing, rather than diminishing, competition
in the industry."
According to a press release issued by Norfolk Southern, the company has
made several offers to merge with Conrail over the years, including an offer
as recently as Oct. 4, 1996. Conrail rejected all of the offers. "In
view of this background, it came as a disappointment to me when it was announced
on Oct. 15 that you had agreed to the proposed acquisition of Conrail by
CSX Corporation," wrote Goode in a letter to Conrail board members.Conrail
has said its board will review Norfolk Southern's offer.
excerpts from BNSF Today via James Czarnecki
OFF THE LIST
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TAKING STOCK
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This document was last updated October 31, 1996.
Steve Sloan, Sloan Family Webmaster
stevesln@aimnet.com
TRACK WARRANTS
P.O. Box 720301
San Jose, CA 95172
USA