Track Warrants
"The Electronic Internet Newsletter of Western Railroading"
P.O. Box 720301
San Jose, CA 95172
USA
Issue No. 34
October 28, 1996
Steve Sloan
Send news, correspondence and images to: stevesln@aimnet.com
D&RGW 3071 and a sister at Mojave, California on October 11, 1996
EDITORIAL
GREEN FLAGS
Continued from previous section.
More sections following!
CP
CP SELLS CORN LINES
Oct25--The Sioux City paper reports CP has reached an agreement to sell
to MRL owner Dennis Washington to so-called corn lines to KC and in Iowa.
No price mentioned, or whether any equipment was included. A new company
will be set up to run the lines.
D. Scott Chatfield
CSX+CONRAIL
CSX TO BUY CONRAIL?
Oct15--CSX today said it agreed to buy Conrail for $8.4 billion to create
one of the world's biggest freight companies and a railroad that rivals
giants BNSF and UP.
CSX+Conrail would serve the eastern half of the United States from Chicago
and New Orleans to Boston, New York and Miami. The deal continues a drive
by railroads to broaden their reach and cut costs by buying each other.
BNSF and UP+SP each have more than 30,000 miles of track, surpassing the
29,645 miles that would result from a merger of CSX and Conrail.
"Our new company will provide new single-line rail service to major
markets east of the Mississippi," said John W. Snow, chairman of CSX.
"We will have the financial strength to make substantial infrastructure
investments and service improvements."
Their was no information provided concerning expected job losses.. The companies
expect to realize $550 million in cost savings and higher traffic from the
merger.
The deal would give Conrail shareholders $92.50 worth of cash and CSX stock
for each of their shares. Conrail, which the government created in 1970
from the remains of the Penn Central and other bankrupt railroads, was sold
to the public in a 1987 public offering at about $15 per share.
The transaction is expected to be completed in late 1997.
Snow would be chairman and chief executive of the combined company and David
M. LeVan, Conrail's chairman, would be No. 2 as president and chief operating
officer.
Under the agreement, 40 percent of Conrail's common and preferred stock
shares would be acquired for cash at $92.50 a share. The other 60 percent
would be acquired for stock at a ratio of 1.85619 CSX shares for each Conrail
share.
Snow said if the combination is completed CSX would shift freight traffic
from commuter and Amtrak lines linking Philadelphia, Baltimore and Washington,
D.C. to the CSX tracks that run from Philadelphia to Washington. The company
said its service should also attract shippers that now use trucks on the
East Coast.
The company would be renamed and based in Philadelphia.
Directors of both companies have approved the deal. Shareholders and the
U.S. Surface Transportation Board still need to consider it.
via Dave Bono
DM&E
REGIONAL INFORMATION
Oct09--I have some regional information on the Dakota, Minnesota and
Eastern that you may wish to note:
GP38's 3800 (City of Owatonna) and 3802 (City of Volga) have both been repainted
into DM&E's dark blue and yellow and carry special 10th anniversary
decals immediately behind the cab on both sides. Also, SD10 545 (City of
Mansfield) has also now been painted in a similar fashion, and is now equipped
with ditch lights.
The new GP38-3's began arriving in late September. The units have been rebuilt
by MK (I am not sure what they were originally). As of early October the
following units were on the roster:
3830 City of Meriden 3831 City of Cavour 3832 City of Hermosa 3833 City
of Aurora
Two more should be arriving anytime, if not already. (3834 and 3835).
Other recent repaints include:
6601 SD9 City of Kasson
Recent retirements include:
6621 SD9 (note: ex-M&StL, CNW)
Units slated for probale retirement in the near future include:
6616 (ex-CNW) 6618 (ex-CNW) 6620 (note: ex-M&StL, CNW)
Note: Units not in DM&E paint are starting to become more rare. As of
10/1 only 13 active units remain to be painted. They are:
544, 546, 547, 553, 554, 556, 557 (all SD10's)6605, 6613, 6614, 6616, 6618,
6620 (all SD9's)
Jason A. Korth (Thanks also to Rick Mills and Spencer Wood) via W.J.
Spitzer
NS
WORK TO GO TO ROANOKE
Oct07--On January 6, 1997, the overhaul of EMD engines and rebuilding of
power assemblies and other major components currently being performed by
Norfolk Southern at the System Assembly Shop in Chattanooga, Tenn., will
be transferred to the Roanoke Locomotive Shop in Roanoke, Va. Approximately
60 employees will be involved in the closing of the System Assembly Shop
at Chattanooga.
Currently, Norfolk Southern maintains two major shops for locomotive overhaul
work -- one at Chattanooga for EMD engine overhaul and another at Roanoke
for GE engines. While these shops are efficient and well equipped, their
capacities are underutilized. Consolidation of locomotive overhaul work
and rebuilding of power assemblies and other major components at the larger
shop in Roanoke will result in significantly higher fixed asset utilization
along with a substantial reduction in NS overhead costs and locomotive repair
time.
Employees affected by this consolidation will be offered work at Roanoke
or other positions available within the company. The relocation of these
functions is vital for Norfolk Southern to better utilize its assets in
order to maintain its competitiveness and efficiency.
Norfolk Southern Corporation, via PR Newswire, via Brian P. Kreimendahl
NWP
NWP EXCURSION
Oct21--The NWP Healdsburg-Willits excursion on October 13 offered fine
views of vineyards, the Russian River, and Ridge Hill--far more scenic than
from nearby Highway 101. Inside the dome of the "Native Son,"
the conversation was interesting and lively. Downstairs, one could rest
in an overstuffed chair and view track, tunnels, and the roadmaster's hi-railer
through the three rear windows. The food was above average (although you
could drive spikes with the stale bagels they served for breakfast). The
staff was attentive and informative. Two of the waitresses sang as they
traversed the dining car.
We left Healdsburg a little late, and made a brief stop at Hopland to take
on supplies. A longer delay occurred at Ukiah, where our train received
an SD9E from a short southbound freight for the trip over the hill. We arrived
at Willits, greeted by lots of local residents who came to view our train
along with a Cal Western steam special.
After a half-hour layover, during which the engines ran around the train
(the conductor said there wasn't time to wye it), we returned south, encountering
no further delays. This time, the three windows looked out onto the trailing
SD9E, which used to travel this line in SP scarlet and grey and is now glossy
in the NWP's black widow revival scheme.
More excursions are anticipated for 1997. Judging from the positive reactions
of the passengers on our sold-out run, the demand for upscale rail service
should persist.
Theodore Phillips
STB
STB RR REGULATION NEWS
Oct16--At least $1.5 to $2.4 billion in annual railroad net earnings
could be lost if two proposals to reregulate railroads in so-called "bottleneck"
cases are approved by the Surface Transportation Board (STB).
Adopting either of these proposals would diminish the rail industry's access
to capital needed for asset replacement and improvement, and force a shrinkage
of the national rail network, the nation's railroads have told the STB.
STB is considering a change in regulations sought by certain coal shippers
in cases where a shipper is served by only one rail carrier for part of
a total origin to destination movement, the so-called "bottleneck"
segment. The change would in essence change the concept of market-based
pricing introduced by the Staggers Act of 1980, which partially deregulated
railroads.
"These proposals have a variety of evils," according to a brief
filed October 15 by the Association of American Railroads (AAR). "But
their essential evil," AAR stated, is that they would effectively set
the maximum "reasonable" rate for a through movement at a level
that is below the cost -- including a competitive return to capital -- of
providing rail services. "Setting a maximum rail rate that ensures
the non-viability of a railroad is quintessential bad policy."
AAR noted that the industry has made significant gains since it was partially
deregulated in 1980. "Since the Staggers Act, deregulation has allowed
the railroads to rationalize their route networks, improve their revenues
through differential pricing, and secure the capital needed to maintain
and upgrade their physical plants and invest in productivity, service and
safety improvements. Rail rates have steadily fallen, by more than 50 percent
in real terms since 1981. Rail productivity has dramatically risen. ..."
Yet even with these improvements, rail financial returns remain "below
those of most American industries with which they compete for capital investment,"
AAR pointed out.
In a verified statement filed in support of the railroad position, investment
banker Robert W. Anestis said adoption of either proposal "would have
the effect of significantly diminishing the industry's access to capital
and impairing its ability to invest to maintain the rail transportation
system. This has the potential to inflict catastrophic damage on the railroad
industry."
Access to capital is particularly important to railroads, Mr. Anestis pointed
out, because the rail industry "requires nearly twice as much investment
to support a revenue dollar as the typical S&P Industrial company. ..."
Because railroads are so capital intensive, they must engage in market-based
pricing -- referred to as demand-based pricing -- to be viable, AAR said.
Under this pricing system, railroads can attract traffic they might not
otherwise carry by reducing profit margins on the most competitive traffic.
This aids shippers whose products move at higher profit margins by reducing
the contributions toward fixed costs they would have had to make if the
more competitive traffic hadn't moved by rail. Demand-based pricing "is
a common and accepted practice in many industries," AAR stated, citing
the example of air fares that are higher for last-minute business travelers
than for vacationers who book well in advance.
The proposals before the STB are also incompatible with existing law, the
railroads asserted, because, among other things, they would force a railroad
to give up its long haul in favor of another railroad's route that might
not be more efficient.
AAR also noted that "either proposal would lead to an explosion in
regulatory proceedings. ... Th(e) Board would itself become a bottleneck,
and, just as was true before the Staggers Act, much of the industry's energy
and talent would be poured into managing the regulatory process rather than
managing the railroad."
In the end, even those shippers seeking the changes would be ill-served
by them, the railroads stated. "Service quality for all shippers, including
those who perceive a short-term advantage in the proposals under consideration
here, would decline. The rail network would undergo a new cycle of atrophy
and shrinkage. The very competing lines that the 'bottleneck' shippers sought
to take advantage of would become unsustainable. Rather than being promoted,
competition would be lost."
Accompanying AAR's filing were supporting statements filed by the chief
executive officers of the five largest U.S. railroads, nine major investment
banking firms and commercial banks that supply capital to the railroad industry,
and numerous economic and industry experts, shipper organizations, individual
shippers, and ports, including the Pennsylvania Coal Association and the
Ports of Baltimore, Houston, Oakland, Portland and Seattle. AAR is the world's
leading railroad policy, research and technology organization focusing on
increasing the safety and productivity of rail carriers. This news release
is available via the Internet at http://www.aar.org.
Association of American Railroads via http://www.prnewswire.com via Brian
P. Kreimendahl
UP
THIRD STREET - OAKLAND
Oct25--I sent you an e-mail a week or so ago telling you that the historic
track running down third street to and from the UP yards in West Oakland
will no longer be used after November 7, 1996. I have since done some filming
and have found out that the last scheduled date for traffic on the third
street line is November 6th. This line has been used for years by UP and
WP and before then. The old station (now restored) is still in use as an
office building.
The switch is now in place diverting the UP onto the old SP (that's hard
to say) main line at Adaline Street and will use this old mainline SP/Amtrak
line east to the estuary area (fifth street) where another switch is in
place.
The diamond at Adaline will eventually be eliminated where for years the
UP/SP made a cross-over into each others respectilve yards. (CHANGES)
Rolland Meyers
SP OF OLD
BOO-BOO'S
Oct18--The Southern Pacific seems to have a little more bad luck lately.
At 20:50 Oct16, 14 cars (five platform stack cars) derailed between Aztec
and Stanwix AZ (Gila Line). A total of 86 containers are loaded on the cars.
The 6th and 7th cars remained upright while the rest ended in a general
pile-up. The interesting part is SP ran detour trains on the mothballed
Phoenix line between Picacho and Wellton AZ... the first time in 4 months.
After inspecting the track, pulling red flags, etc., SP ran trains in fleets
(West trains first). The Gila line was to be open at 02:00 this morning.
Here are some of the other problems with SP trains lately.
Oct08 - The ICTF switcher collided with 4 light engines at Dolores. Lots
of handrail and fuel tank damage.
Oct07 - Espee's BPLBX-06 collided with BN train HHOGL-05 at the Graham interlocking
plant, just west of Galesburg. SP9777 (lead unit) heavily damaged.
and so it goes....
Also the new "Oil Cans" train from Mojave is scheduled to start
Nov01. Symbol MJDOU/DOMJU. Six AC's (SP100-105) are being moved to start
the service.
Locomotives currently on lease to SP as of Oct17th are:
- From GE: ATSF8066 8025 8021 8058 8093 8095 8078 8072 8032,
GECX3003 3002 3000 3008 3010 8015 8044 8079 8077 3009 3006 3001 8084 8002
- From Conrail: 6018 6000 6015 6014 6012 (with more on the way)
- From EMD: 182 183 185 190 196 197 205 193 204 195 198
- From Helm Leasing: HLLX2602 2582 2591 2593 2586 2604 2603 UP1978
187 2580 2606
Tony Johnson, managing editor - SP Review magazine
SWITCHES GOING IN
Oct11--I got a copy of #30 re-sent to me by the St. Maries River Railroad
for whom I like to think am the "company photographer". Anyway,
I asked to be signed up so I could receive track warrants directly, and
I see by your green flag alert that your e-mail list is not updated as yet.
I also sent a report of a special I saw in the Emeryville, CA area a week
back with three cars and an SP engine with UP lettering in chalk (already).
Today (10/11), I filmed the UP going outbound from it's old west Oakland
yards, down 3rd Street. I talked to a UP source and am told (no reason to
doubt) that this will go on only until a projected date of November 7. After
that time the rail will be vacated and a piece of California history will
be just that! I have also been filming the positioning of the switches near
the Adaline Street overcrossing that will eliminate the old UP crossovers
into their old yard and will allow them to divert off the old SP main (now
UP) into their old yard, the SP West Oakland yards and, near the old Magnolia
Street tower, to connect with the Oakland Terminal Railroad and shippers
in the West Oakland area.
I hope you receive this as I am fairly new at the computer but venerated
by age rings!!!!
If you do, please accept my request to "sign me up" again. I do
appreciate the service you offer. So many addresses now are just trying
to sell HO track or bellow about offering nothing and suck-up-bytes photography.
It is refreshing to find a purist willling to present the news and real/rail
facts. THANKS.
Rolland A. Meyers
UP SW1500 # 1013
Oct04---On Friday 10/4 I spotted "new" UP SW1500 # 1013 working
with a string of cars on SP's West Oakland Wye. This unit is from Helm Leasing
and is a former SP unit that was returned to Helm when the lease expired.
UP is reportedly getting 35-50 such units from Helm, numbered 1000-up. #
1002 is also reported in Oakland and several are also now working on SP
lines in Southern Calif.
Don Jewell
TRIP AND SIGHTING REPORTS
SIGHTS FROM THE ROAD, DATELINE WATERLOO
Oct25--IC seems to have stored most of the Chicago Central's power, except
for the GP38s and some of the less ratty Paducahs. Waterloo shops looked
rather abandoned. Leased Helm power is still around. Train 51 out of Freeport
was very long. It's now called CHCB. 50 is CBCH, obviously. Just when you
think you're on to their system, they throw out the new names for 80/81,
the Ft Dodge - Sioux City jobs: SXCH and CHSX. No they don't go all the
way to Chicago. Seems the marketing people got involved. They've also brought
back the pig train to CCP, I10 and I11. Not too many cars on I11, and even
fewer trailers. We'll see how long it lasts. Train speeds do seem to be
up.
Bangor and Aroostook 352 led Iowa Northern's southbound out of Waterloo
10/22. Both are now Iron Roads, whatever. That new CP-inspired BAR scheme
looks nice.
A short grain train came down the BN into Sioux City led by Bean Snif 966
and Santa Fe 934. Nice change of pace for Sioux City. Yes, the steps and
walkways are red. The UP is sending more traffic up the old Omaha. A northbound
had an SD40-2/SD40-2B/SD50/SD40/SD40-2 lashup. Sounds like a snooze? Well
the lead unit was North Western 6824 in its factory paint, and the SD40
was MPI 9043. Not too bad for Iowa.
D&I is replacing some 85# rail south of Hawarden with 100#. Woo Woo!
God knows when that 85# was rolled. There are still lots of ties with circa-1940
date nails in them south of Canton.
More later if I see anything worth writing home about. The Braves have sleep-walked
through the last three games and I'm (explitive deleted!)
D. Scott Chatfield
HEARNE AREA SIGHTINGS
Sightings around the Hearne Area 10/20/96
UP 53 LCL 3427,3324 Hearne, Tx
SP AICLC 283,350,240 "
UP 1CHMXZ 5521,3803 "
UP 2CHMXZ 3183,3715 "
SP MBSMF 8002,7516,8015 "
SP MFEGT 8050,8005 "
SP LAMFF? 7314,9349,8546,8358 " ***
UP FWSA 3570,B4259,B4240,3807 Valley Jct, Tx
SP ??? 7513,8385,9398 Hearne, Tx *
SP HODVQ 7464,9383,9291,CNW6922,UP3151,GECX8021(SF) "
SP Gid Trn 7852,7675 "
SP HEVIM 8696,7530,8545,8703 "
UP MXCHZ 3630,4317,9027 "
SP DVHOQ 8699,8694,8691 "
SP FWHOM 8268,7354,8695,8690,8538,UP3318 "
At Varisco Siding the HEVIM met the LBMFT I think.
9611,8381,7483
* I heard on the radio HTHEM, but I do not know of a location HT on SP.
*** This movement came through Hearne on UP towards Palastine. The conductor
on the HEVIM told me he heard something about a bridge replacement to the
north of Hearne somewhere but wasn't sure exactly where. The train I saw
at Varisco was only the second eastbound on the DALSA all day (I missed
the first at Tatsie due to appearrance of being on UP.)
The last two trains of the day I saw at Bryan siding on the way to the house.
UP FWHO 3505,4308,CR563
UP Grain 8001,7040 :>) :>)
Jerry Storrs
BAK/TF REPORT
Oct15-- THURSDAY OCTOBER 10 - Caliente and tunnel 2 area
TIME RR DIR SYMBOL CONSIST
250p SF E 8-991-10 926, 611, 535, 565
3p SF E 9-991-10 832, 207, BNSF 8253, 919
315p SP E 1-BKDOU-10 8656, 8679, 8653, 8663 h/8588, 8576, 8579
425p SF E H-MOSR1-10 938, 652, 5168, 5186 h/5353, 3826, 5071
455p SP E 1-EUDOQ-08 EMD 7009, 8315, 8319
505p SF E Q-RIAL1-09 681, 659, 201, 5090
605p SF W S-CHRI1-08 944, 907, 950, 5000, LMX 8541, 5860, 5025
COMMENTARY: I arrived at Caliente about 130pm with work window scheduled
to end at 2pm, however, it did not end until about 3pm. Tie replacement
in the Cliff to Bealville area with welding on the main line at Bealville.
Met up with none other than Steve Sloan who was "detouring" this
way enroute a business trip to LA. He warned me about a gaggle of railfans
in a white rent-a-van making a public nuisance out of themselves at tunnel
2. WX: sunny, hot and cloudless.
While enroute south, I stopped at IN-N-OUT Burger at Kettleman City and
found a Ford Ranger truck (equipped with SMR 800 MHz antenna in center of
roof) with an IN-N-OUT Burger decal on door. While photographing same, a
white guy in a landscaping uniform (named MATTHEW per nametag) came a boppin'
up to me and tol' me that I needed permission from "Corporate Offices"
to take pix on the property. I told him I was sorry and that maybe they
should put up sign prohibiting same. I then asked him when more restaurants
were coming to NorCal. He replied that ground had just been broken for restaurants
in ELK GROVE (Sac Town) and DAVIS and that the city of San Francisco is
next.
FRIDAY OCTOBER 11
TIME RR DIR SYMBOL CONSIST
805a SF E P-FRCH1-10 5091, 5086, BN 6808, 5353
815a SF E 1-981-10 852, 4003, 5171, 5074
830a SF E S-FRCH1-11 3816, 7447, 3826, 5071
840a SF E S-RICH1-10 5119, 8161, 950, 5079
950a SP E 1-EUWCQ-09 9824, 9818, 8651 h/8582, 8584, 8583, 8589
*************** WORK WINDOW AT CLIFF 9am-1pm *****************
CALIENTE - TUNNEL 2 AREA:
TIME RR DIR SYMBOL CONSIST
105p SP E 1-EUWCM-K-08 9807, 98??
2p SF E 8-991-11 515, 625, 7421, 7427
245p SP W Ballast 8655, caboose 4759 (Cliff Work Train)
255p SF E 9-991-11 567, 7420, 803, 923
330p SP W 1-WCEUM-K-10 9800, EMD 7002, 8259, 8589, 8583, 8584, 8582
4p SP E 1-RVWCM-K-09 EMD 7007, EMD 7005, EMD 7018, EMD 7013,
8257 !!!
above with h/8581, 8578, 8577, 8586
410p SP E 1-BACIT-10 8255, 8233, 8270, 9606
420p SF E H-MOSR1-11 5178, 5209, BN 8097, BN 7087
above with h/650, 7422, 5047, 5021
435p SP E 1-BKDOU-11 8239, 8643, 8678, 8622, 8628
above with h/8588, 8576, 8579, 8580
5p SP E 1-PTLAF-10 9243, 7418, 9351 [merger repaint!], 8258
h/8591
6p SP E 1-EUDOQ-K-09 EMD 7010, 9806, 8329
COMMENTARY: 16 trains including a work window -- not bad!! The EMD lease
fleet, especially on that RVWCM, nearly caused motordrive melt-down!! Helpers
getting filthy as usual. Even ATSF power is mostly dusty! Still no UP power
to be seen! WX: Sunny and not as hot but still cloudless.
The white van goombahs showed up at Walong just when I was about to leave.
So did a video camera idiot who parked his Chevy Suburban almost in the
way near the top of tunnel 9 inside the loop. The Catt, knowing that the
EUWCQ was the last train for several hours, took great delight seeing still
another camcorder clown at the Techachapi depot, aiming east, waiting for
an eastbound that might show up around 3pm or so. A woman stood near him,
arms folded on chest, probably the soon to be ex-wife...
Matt Vurek
TAKING STOCK
The Rail Stock Report, Compiled by Jim Czarnecki, is now available at:
http://www.primenet.com/~jimc/
To subscribe send an E-mail to stevesln@aimnet.com
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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