Canada Calling
February 2000
by Bryce Lee
INDUSTRY NEWS:
On December 20, 1999 Canadian National Railway Co. and Burlington Northern Santa Fe
Corp. announced they expect to be able to combine their operations to form North America's
largest railway and with limited risk for shareholders and shippers. Montreal-based CN,
Canada's largest railway, and Fort Worth, Texas-based Burlington Northern Santa Fe, the
number two U.S. rail carrier, will demonstrate that will comply with all requirements of
the U.S. Surface Transportation Board while preparing their application to merge their
vast networks. BNSF president Krebs was quick to note that the partners in the proposed
merger will not put the United States Surface Transportation Board into compromising
situations; as has happened to the 1996 merger of Union Pacific and Southern Pacific Rail
Corp., which frustrated shippers because of serious bottlenecks across the new company's
system. Analysts have speculated that Union Pacific may be mulling business links with
Canadian Pacific Railway, Canada's second-largest railway, or U.S. eastern rail freight
carriers Norfolk Southern Corporation and CSX Corp. CN president Paul Tellier said he
foresaw little difficulty in bringing the two financially robust railways together by
mid-2001, provided the STB gives them the green light. CN's trans-Canada network and its
Illinois Central system down to New Orleans have no overlap with Burlington's
westward-stretching network. The two companies have 90 days to present their application
to the STB, which would have another year to rule on the merger.
The merger, in which the two companies will combine under a holding company called
North American Railways, will create a rail network with 50,000 miles (80,465 kilometres)
of track, stretching from Halifax on the Atlantic coast to Vancouver on the Pacific,
southward to New Orleans, and westward to Los Angeles and Seattle. Combined, they would
have about 67,000 employees, annual revenues of US$12.5 billion and a market cap of about
US$19 billion; US$6 billion for CN and Us$13 billion for BNSF. Under the complex deal
structured to comply with Canadian government restrictions on the ownership of CN, BNSF
shareholders will get one share of North American. CN shareholders will get 1.05 shares of
North American or a new CN share exchangeable into 1.05 shares of North American. Although
North American's head office will be in Montreal and Tellier will be chief executive, the
companies have had difficulty maintaining that this not a merger of CN and BNSF, which is
three times larger. Under the proposal BNSF stockholders will have 71% of the outstanding
shares but only 40% of the Board seats. Plus, BNSF will now be wholly owned by a holding
company while CN remains a separate entity. The company's financial results and balance
sheets will be consolidated under the North American Railway banner, which will have a
board dominated by Canadians.
In addition BNSF and CN have agreed to pay hundreds of millions of dollars in break-up
fees if their bid to merge operations is blocked by a rival suitor or a regulatory body.
CN, would have to pay a hefty fee if it simply changed its mind and walked away from the
deal without another suitor in the wings. The elaborate arrangement of fees is outlined in
CN's documents filed with the U.S. Securities and Exchange Commission. Such fees are
common in merger agreements and tend to run to about 10 per cent of the deal's value. The
document says BNSF would be forced to pay CN a fee of US$450-million if a rival bidder
blocks the current deal. CN would have to pay US$200-million if it agrees to a rival
offer, the SEC filing says. There are similar fees if one party walks away from the deal
or the U.S. Surface Transportation Board imposes certain conditions on the deal. BNSF
would have to pay CN US$300-million, while CN would have to pay US$150-million. Other fees
would be triggered if the deal falls through for a variety of reasons, including the
failure to win U.S. federal approval. The form shows the two companies have agreed to drop
any talks they may be having with any other company, to cancel any major deals and refrain
from selling any business units without the written agreement of the other party.
BNSF has also arranged for a poison pill to kick in if a hostile suitor picks up more
than 15 per cent of the railway. CN does not have such a poison pill as it is already
protected from such a bid by Canadian laws that prohibit any individual from owning more
than 15 per cent of the company. Meanwhile, the two railways plan to merge their
purchasing and marketing operations as soon as possible so they can take advantage of
their planned union well ahead of the expected closing date in mid-2001. Staff will be
eliminated from both railways as the purchasing and marketing operations merge. To speed
up that process, the railways have set up a committee of five senior executives whose duty
is to ease the merger through the U.S. Surface Transportation Board as smoothly as
possible.
The proposed merger between CN and BNSF could significantly increase container traffic
to the Port of Halifax. The new railway network would give the port direct access to the
lucrative West Coast and Asian markets. What this does is match a railway that's strong
west of the Mississippi with a Canadian company that has the ability to go east. CN can
already move container freight quickly to the mid-west and southern states through
Chicago. The new network will give Halifax a direct connection to the container facility
in Long Beach, California.
A Brampton, Ontario, man has been charged in a fatal collision between a sport utility
truck and a freight train earlier this year. Robbe Dixon, 35, of Brampton, who was in the
truck's back seat, died following the November 19, 1999 accident in Milton, Ontario.
Police said a vehicle drove around lowered crossing barriers and was struck by a 71 car
eastbound CPR freight train. The accident forced thousands of Toronto-bound commuters to
search for alternate routes to work as all GO Transit trains were cancelled. Glen Zuest,
25, has been charged with criminal negligence causing death and impaired driving causing
death.
On December 14, members of the Associated Railway Union voted 86 per cent in favour of
a contract deal with Ontario Northland. Voting took place in North Bay and in Englehart.
Company workers will receive retroactive pay increases, pension improvements, and extended
health care benefits. Service had been disrupted since 600 striking workers set up picket
lines on December 11. Train service was expected to return to normal as early as December
15. North Bay, Ontario now owns about 40 acres of rail land along the city's waterfront. A
ceremonial signing that transferred the ownership from the CPR to the city was held
December 10. That means North Bay can now begin its search for private businesses to
develop the land. The primary job will be to remove the tracks and clean-up the property
starting next year, with the total cost expect to be in the neighbourhood of C$12-million.
Taxpayers will initially foot the bill, but the city hopes to recoup the money with
private development a long the waterfront. The city also has been promised C$15-million in
Heritage Fund money to set up a tourist attraction on the land; that it's calling
"Canada's Passage North".
Two derailments were in British Columbia on December 9, 1999; one near Pemberton and
the other in the Okanagan. About 20 cars of a BC Rail freight train went off the tracks
just north of Pemberton. Most of the cars are loaded with forest products and the
locomotive were derailed. There are no environmental concerns from the accident. In
southern British Columbia in the Okanagan region, six cars of an Okanagan Valley Railway
train derailed between Vernon and Sicamous. Five cars were carrying grain and one
contained soda ash. No injuries were reported in either accident.
Smith Falls, Ontario has purchased a railway station for one dollar and plans to turn
it into a theatre. A Canadian Pacific Railways official on December 7 handed Mayor Dennis
Staples the keys to the station, which was erected in the late 1940's. The gutted shell
will require C$320-thousand worth of renovations to transform it into a 120-seat theatre.
It will also have a cafe, conference facilities and an outdoor market while remaining a
Via Rail station. The first theatre production is scheduled for May of 2000. Current plans
also call for a model railway to circle the lobby as well as two huge murals of the
station in past times on the walls. Canadian Pacific and Via Rail are each kicking in
C$50,000 for the project.
BC Rail Ltd. locked out 1,600 unionized employees and halted operations on December 27,
1999, sending West Coast businesses scrambling to find other ways to get their goods to
market. A last-ditch effort by unions at the Crown-owned railway to avert the lockout,
spurred by a Christmas Eve 72-hour strike notice they delivered, couldn't prevent Canada's
third-largest freight railway from closing the doors. Meanwhile, workers get modest
benefits instead of wages of up to C$30 an hour, lumber sits in the fog-shrouded yards and
passengers on a special New Year's Eve millennium dinner train had their trip scrapped.
The lockout could be a big blow to the reputation of the railway, which stresses
competitive rates and reliability. While there is no immediate impact because its sawmills
are shut until January 3 for the holidays.
Others affected are mining companies, which ship coal on BC Rail, and people who use
the train's speciality passenger services such as the Royal Hudson Steam Train or those
who use it to get to such places as the Hills resort in British Columbia's Cariboo region.
The Hills and the railway offer package trips for customers. The unions are unhappy at the
company's wish to remove 20 per cent of the unionized workers from its payroll, to have a
two-tier wage structure in which new workers would be paid less for the same work than
longer-term workers, longer hours for train running crews and other changes to the
contract that expired December 31, 1997. The British Columbia Labour Relations Board
stepped in after the lockout began and scheduled contract negotiations between the railway
and unions. The unions have been without a contract for two full years.
The lockout expanded December 30, stopping coal through the British Columbia port of
Vancouver. Coal shipments through the Roberts Bank facility were halted when BC Rail
employees set up a picket line to protest a lockout imposed by the railway. Container
shipments through the facility were not disrupted. BC Rail does not run trains to Roberts
Bank, but it owns and maintains the track to the facility, which is served by Canadian
National Railway Co. and Canadian Pacific Ltd. BC Rail's customers warned December 29 that
they may be forced to lay off employees after mediated talks aimed at ending the lockout
at the Crown corporation broke down and no resumption of discussions was scheduled. And
despite the risk of the shutdown to British Columbia's precarious resource-based economy,
the province, the sole owner of the railway, still refuses to intervene. Vancouver-based
mining company Teck Corp. says it may have to lay off some of the employees at its
Quintette and Bullmoose coal operations in the north-eastern B.C. town of Tumbler Ridge if
the lockout is protracted. Slocan's northernmost operations, a pulp mill in Fort St. John
and oriented strandboard (OSB) and plywood mills in Fort Nelson, are the most vulnerable
because trucks are too costly to use in that region. The OSB plant ships up to nine cars
of product a day on BC Rail lines, and there is a limited time that the company can
stockpile goods.
The B.C. Federation of Labour, which represents 450,000 unionized workers in B.C., has
now stepped in to co-ordinate picketing of the entire railway and to pressure the
government to step in. Meanwhile, shippers fear their buyers are seeing B.C.'s reputation
for reliability worsening and say they are taking their business elsewhere.
On behalf of the Ontario & Eastern Railway Modellers, the Annual Copetown Train
Show is being assembled on the ready track, and will be arriving on February 27, 2000. The
Copetown (Ontario) Lions Community Centre in Copetown, Ontario is the place, and this year
there will be plenty of free parking for all. For all the modern day railfans, the main
line of the CN Dundas Subdivision is across the street where you will see heavy westbound
traffic struggling upgrade. If you are a modeller, or fan of Canadian railways both past
and present, this will be truly an event not to be missed. Saturday will be a closed door
day for the participants of the show to enjoy, as in past years. There will be displays
and promotional tables for the TH&B, CNR, and CPR SIG groups. Everyone is encouraged
to bring models or collectibles to place on these display tables for all to enjoy. There
will be three high quality operating layouts in attendance, all with a Canadian prototype
theme, and it looks li ke some new promotional display modules from two more clubs. There
will be clinics running all day, hosted by, and on the theme of the attending SIG groups'
railways. The Canadian Prototype Manufacturers display is going to be repeated, with many
exciting new products, and pilot models for us to see. Come and meet the people behind
these products in a casual relaxed atmosphere. Sorry, no sales on site from the
manufacturers. We will have carefully hand picked craftsmen in attendance, demonstrating
and displaying their talents. Ian Wilson will be releasing his new book "To Stratford
Under Steam" at 12 noon at the show. For question regarding the Copetown railway Show
please contact Rich Chrysler at (905) 679-4279.
Canadian Branchline Miniatures are proud to announce their latest publication "To
Stratford Under Steam." Stratford Ontario was a major CNR division point and home to
the Motive Power Overhaul Shops in Ontario. Complete with 240 monochrome and colour
photographs, the publication will be in a style similar to Ian Wilson's award-winning
Steam at Allandale (ISBN 0-9683815-0-2) released in 1998 by the same author and publisher.
The book will be available late February 2000 for C$56.95 or US $41.95 (when paid for in
US dollars and mailed to US addresses) including shipping and all taxes. For RoW (Rest of
World) contact the publishers directly. Orders may be sent to Canadian Branchline
Miniatures, P.O. Box 2565, Orillia, ON L3V 7B1. The publisher may be contacted through
their web site: www.canadianbranchline.com.
CANADIAN NATIONAL:
Canadian National must improve rail service and reliability if it wants to recoup any
of the millions of dollars lost to truckers, company president Paul Tellier said speaking
to the Canadian Railway Club in Montreal on December 7, 1999. And rubber tires aren't the
only challenges facing the company. The four largest American railway companies are
expected to become even more efficient in the coming years, with transcontinental mergers
being one option towards increased competitiveness. Within Canada, however, it's clear
Tellier's largest target remains the trucking industry. Since the 1960s, the rail industry
has lost 21 per cent of the market share of intercity freight. The trucking industry's
share jumped to 88 per cent from 67 per cent in the same period. "Our service in the
past was lousy," admitted Tellier. Gaining back just one per cent of business lost to
trucking represents an increase of C$300 million in rail revenues, said Tellier. To
succeed, governments need to lower rail taxes to bring them in line with those levied on
the trucking industry. However service remains key to winning back customers, he said. To
that end, CN has implemented programs designed to increase the rate of on-time delivery;
its biggest weakness when compared to trucking. He said CN will also have to increase its
capital expenditures, cash flow and profits to keep up with changing technology and
infrastructure requirements. Tellier was equally blunt in his criticism of government
policies that he says have helped loosen the rail industry's grip in the transportation
market. He cited high diesel fuel taxes in some provinces and an overall tax burden that
makes it difficult to compete in the U.S.
With the entire Strathroy Subdivision now under Centralized Traffic Control speed has
been basically reduced from 60 mph to 30 because of slow orders on all the new dual
control switches and the fact that now that trains no longer fit between road crossings.
Without previous long passing tracks, rolling meets are now planned to avoid blocking
local road crossings for extended periods. As a result CN detoured traffic through
Windsor, Ontario on December 7 and 8. On December 8, CN 386 stalled coming out of the
north tunnel. CP trains were stacked back east to Belle River, Ontario with at least three
other trains waiting on the US side, and CN has a number of trains waiting as well. Here
are some of the detours that have gone through Windsor: CN train 264-07 left Windsor 14:11
on December 7, SD75 5710, Dash-9 44CWL 2602, SD75 5618, SD75 5617, 19 loads, 65 empties
and 4050 feet; Train 386 of December 7 left Windsor at 12:53 December 8, with SD40-2 5383,
SD60F 5555, GP40-2L(W) 9518, SD40-2(W) 5301, 42 loads, 87 empties, 8271 feet; Train 265 of
December 6 left Windsor 20:00 December 7, SD40-2(W) 5267-5242, with 80 loads, 0 empties
and 6223 feet; And enroute to Windsor were train 383 of December 7, SD40-2(W) 5289, Sd40
5081, 59 loads 30 empties 6283 feet; ditto 265 of December 7 SD40 5001, SD75 5753, with 83
loads, 0 empties and 6432 feet. Train 264 of December 8 had SD75 5664, 5667, 5732, 9
loads, 3 empties 869 feet,(somewhat overpowered) Later, trains at 1600 December 8, 264-08,
383-07, and 265-07 were all waiting at Windsor. So much for promised on-time deliveries.
Canadian National Railway must pay at least C$1-million to a woman whose leg was
severed by a commuter train when she was 15. Cindy Tu tumbled off a railcar in May 1992
when it jolted to a stop at Mount Royal station in Montreal. She had been standing in the
car's open vestibule during the morning commute to high school because there was
insufficient seating inside. Tu fell under the train, which then continued moving for
almost 300 feet. She lost her left leg and fractured her spine and one arm. The woman, now
22, is in a wheelchair because the spinal injury makes it too painful to wear an
artificial leg. Quebec Superior Court Judge Claude Tellier said CN was obviously at fault.
Tellier said the packed commuter train was using obsolete cars not meant for commuter
service; and that the train was without adequate supervision.
Two CNR employees who helped Via Rail passengers to safety following a fiery collision
in November were honoured December 14, 1999. Locomotive engineer Robert Hoffman, 39, and
conductor Gord Birt, 53, were presented gold watches by a senior CN official. Hoffman and
Birt were operating a westbound CN train in Bowmanville, Ontario, on November 23 when
Hoffman saw a flatbed truck stopped on the tracks at a level crossing. He pulled the
emergency brake and called the eastbound Via passenger train to warn it so it could slow
down. But the engineer was unable to keep the freight train from striking the truck,
pushing it into the path of the Via train. Both trains derailed. The truck's driver had
escaped before the collision. Hoffman and Birt then began helping the 109 Via passengers
to safety, which involved climbing a steep embankment past a fuel leak. Seven passengers
and two crew of the Via train received minor injuries.
Canadian National Chairman David G. A. McLean announced December 16, 1999 the election
of E. Hunter Harrison formerly of the Illinois Central to CN's Board of Directors.
Harrison, 55, has been CN's executive vice-president and chief operating officer since
March 1998. McLean said: "Hunter Harrison is a very strong railroader, one of the
very best in North America. His work has been a large factor in CN reaching a higher level
of service excellence and efficiency." CN President and Chief Executive Officer Paul
M. Tellier said: "Hunter Harrison has demonstrated outstanding leadership at the
Company, engineering the transformation of CN into a scheduled railroad with a strong
focus on customer service and improved asset utilisation. CN will reap the rewards of
Hunter's work for many years."
In late December a truck driven by a resident of Lacombe Alberta lost control on some
ice on the road near a level train crossing just east of Sylvan Lake, and the truck struck
a passing freight train. The driver, John Ebelings was trapped in the truck as it was
dragged by the train. Ebeling managed to crawl out the back window of the truck and onto
the side of one of the railway cars. Someone called the police after seeing him hanging on
the side of the train as it passed through Sylvan Lake. Alberta. The police called the CN
dispatcher; but before they could stop the train, Ebeling had uncoupled two of the railway
cars to try to attract attention. That in turn applied the emergency brakes, which in turn
allowed one part of the train to collide with the other part of the train. Thirteen cars
were derailed, 200 metres of track were destroyed and the electric lines on poles beside
the tracks feeding the nearby town of Eckville were severed. Ebeling walked away from both
incidents with minor cuts and scrapes. Although his truck was destroyed and pitched off
the train roughly five kilometres after it struck the side of the train, Eberling held on
for another 25 kilometres before the train derailed.
Canadian National has significantly reduced transit times and improved on-time delivery
of carload freight since implementing a service plan a year ago that transformed CN into a
scheduled railroad. CN's conveyor-belt-like schedule of train services; fully implemented
in the fall of 1998 has:
- Achieved 81 per cent on-time performance for carload traffic at a dock-to-dock level of
measure, with a 96 per cent on-time performance for deliveries within 24 hours of the
prescribed time. CN is making steady progress toward a 90 per cent on-time performance
with no buffer by yearend;
- Reduced the time freight cars spend in key terminals by 18 per cent to 21 hours;
- Reduced overall transit times for carload traffic by 24 hours;
- Increased asset utilisation significantly. Since early 1998, CN's active locomotive
fleet has been effectively reduced by 33 per cent to 1,320 units, while its car fleet has
been cut by 17 per cent to 68,400 cars;
- Increased gross tons miles per available horsepower - a measure of how efficiently a
railroad utilizes its locomotive fleet - by 33 per cent;
- Increased car miles per car day, a measure of the velocity of cars on the network; by 19
per cent to 138.
Chief Operating Officer Hunter Harrison said the plan's scheduled freight train
products have clear benefits for shippers and CN. Shippers gain greater control over
production and inventory costs, and car owners and lessors experience greater productivity
and lower costs. At the same time CN enjoys reduced costs, better use of assets and
greater flexibility in capital spending. The strength of the service plan is on shipper to
customer transit times for individual car shipments, not from terminal to terminal transit
times for trains. In designing the plan CN wanted to reduce the amount of time freight
cars sit idle in its classification yards. Consistent standards for connections were
established for each terminal. These were then used to coordinate main-line train arrival
and departure times. By bringing the connection time for major traffic flows as close as
possible to the design standard, transit times, car cycles and yard congestion have been
reduced. The time spent at inter mediate yards has also been cut by reducing the number of
times cars are classified. All of this permits specific transit time commitments that are
measured in hours, not days. To support compliance with the service plan, CN developed a
catalogue for its sales and marketing group that defines the railroad's service
capabilities for carload and intermodal freight. The catalogue also provides a means for
monitoring CN's performance, to drive real-time decision making in the field and to
measure how CN's performance stacks up against its customer trip plan commitments.
Harrison said: "A key strength of the service plan is its focus on managing CN as an
integrated network. Managers are continually examining opportunities to combine shipments
from different business units, such as intermodal/auto-motive and merchandise. The
creation of multi-purpose trains allows CN to fill idle capacity and to improve the ratio
of tons of freight moved per locomotive." Keeping track of the progress of shipments
is a key aspect of the service plan. Using CN's Service Reliability Strategy (SRS)
information system, CN monitors and controls customer shipments and provides timely,
accurate information on the status of shipments to meet precise door-to-door scheduling
commitments. CN now provides customers with the number of hours required to move a
shipment from one point to another and the on-time performance level on a percentage basis
on such shipments to date.
A tragic accident happened at 1940 hours December 30, 1999 near Benoit, Quebec on
Canadian National's St. Hyacinthe Subdivision in double track ABS territory; about 20
miles east of Montreal on the south shore of the St. Lawrence River. A westbound Ultramar
unit tank train with CN SD75 5794 and Dash 9-44CWL 2581 with 68 loads, derailed cars about
a third of the way back in the train. The train consisted of four strings of 17 connected
tanks each, all containing gasoline for Ultramar's refinery in Montreal East. An eastbound
train from Toronto, with SD75 5753, SD40 5038, with 61 cars struck the derailed cars of
the westbound train, derailing his two units and the first 26 cars. So far the count is
sixty derailed cars. Local reports say there were three explosions immediately after the
collision and a huge fire ensued, with flames shooting 800 feet in the air with at least
48 railway cars burning. Unfortunately, two crew members are presumed missing however news
reports indicate the fire is so intense that nobody can get within 600 feet of the
inferno. The fire was still burning 24 hours later. First train CN #130 was detoured
through on the Quebec Gatineau Railway's (ex-CP) Trois-Rivieres Subdivision around noon
December 31 with more to follow. St-Lawrence & Atlantic Railway train 393 was rerouted
through Canadian American from Lennoxville to Montreal, Quebec.
The Grimsby Subdivision between Hamilton and St. Catharines, Ontario is expected to
upgraded from dark territory to full CTC operation sometime in 2000. Single track will be
instituted between Grimsby and Beamsville, a distance of 3.9 miles. Between these two
location the track is straight and has no sidings. The Rainbow bridge at Niagara Falls
Ontario will also undergo an C$8-million refit to enable to continue in service. After CTC
is installed and trackwork upgraded, it is expected the St.L&H/CPR may utilize the CN
Grimsby Subdivision for their operations rather than using the present Hamilton
Subdivision with its climb of the Niagara Escarpment and then descent to Welland Yard.
CANADIAN PACIFIC:
Two CPR workers from Parry Sound, Ontario received medals of bravery on December 2,
1999 in Ottawa. Joe Moloney and Kerry Osborne are among 44 people being honoured by
recently appointed Governor General Adrienne Clarkson. The two men helped rescue an
unconscious colleague trapped inside a burning locomotive after their train derailed and
plunged into a 33-metre deep hole. The men managed to make their way through the twisted
metal and pull Donny Collins to safety. The derailment, two years ago, closed the main CP
line between Toronto and Sudbury for one week.
A Winnipeg man lost one of his feet in the early morning of December 7 after it was
severed by a train. Police say the man and his common-law wife had been out drinking and
were walking home when they encountered a stopped train on the CPR tracks in north central
Winnipeg, Manitoba. The couple decided to crawl under the train, but it started moving as
they were scrambling over the tracks. The 32-year-old man pushed his companion to safety,
but a wheel rolled over his ankle and cut off his right foot. The other ankle was severely
fractured. His wife managed to call for help and the injured man was taken to hospital. He
was in stable condition and was expected to undergo additional surgery.
Canadian Pacific Railway employees assembled a train for a 5,000-kilometre goodwill
voyage from Montreal to Vancouver that drew attention to the problem of hunger in Canada
and generated food and cash donations for food banks across the country. The CPR Holiday
Train, draped with 1.6 kilometre of festive lights and lit by 5,000 bulbs donated by
retailer Canadian Tire, began its nine-day voyage from Montreal on December 15 with
send-off ceremonies. It arrived to a display of fireworks in Vancouver on December 23.
Between Montreal and Vancouver, the Holiday Train stopped for events in eleven cities.
CPR, through the Canadian Pacific Charitable Foundation, made a cash donation of $100,000
to Canadian Association of Food Banks members. Lit by 5,000 white lights, the CPR Holiday
Train attracted attention as it travelled across Canada. Following a grand send-off in
Montreal, it stopped for ceremonies in Smiths Falls, Toronto, Thunder Bay, Winnipeg,
Brandon, Regina, Moose Jaw, Calgary, Banff, Revelstoke and Kamloops before rolling to a
final stop in Vancouver's Gastown area. In each of these communities, local residents,
officials and food bank representatives joined with CPR employees to celebrate the Holiday
Train and encourage donations. The Holiday Train initiative was supported by CPR employee
unions in Canada, including: the Transportation Communications International Union (USWA);
the Canadian Pacific Police Association; the Brotherhood of Maintenance of Way Employees;
the Rail Canada Traffic Controllers; the International Brotherhood of Electrical Workers;
and the Canadian Council of Railway Operating Unions (BLE/UTU). Canadian Tire and its
Foundation for Families are adding to the spirit of the voyage by collecting food and
donating cash and toys to help families in need. Canadian Tire joined CPR in a national
advertising campaign for the Holiday Train, had donated the lights for the train, and
sponsored a fireworks display to herald the train's arrival in Vancouver.
The train consisted of SD9043MAC 9114 decorated with a small illuminated Christmas tree
affixed to the top of the locomotive; DTTX Well Car 620035A (Canadian Tire CDAU 32351,
32693), DTTX Well Car 620035C (Canadian Tire CDAU 32423, 32435), DTTX Well Car 620035B
(Canadian Tire CDAU 32681, 32644), DTTX Well Car 620007B (The Bay/Zellers TLAU 639045,
639046), DTTX Well Car 620007C (The Bay/Zellers TLAU 639055, President's Choice CPPU
630095), DTTX Well Car 620007A (Sears Canada CPPU 630361, 630308), DTTX Well Car 620020B
(Cummins Generator CPPU 900032, Consolidated Fastfrate CPPU 684038), DTTX Well Car 620020C
(Orient Overseas OOLU 711439[0], Hyundai HDMU 443657[1]), DTTX Well Car 620020A (Cho Yang
CYLU 423696[2], COSCO CBHU 153562[6]), DTTX Well Car 620062A (Norasia Line NSLU 431773[8],
Mitsui OSK Line MOGU 211029[5]), DTTX Well Car 620062C (NYK Line NYKU 656879[0],
"K" Line KLFU 135166[0]), DTTX Well Car 620062B (DRS-Senator INBU 494844[6],
Yangming YMLU 434185[8]), and CPR Business Car Killarney.
Surface Transportation Board (Board) Chairman Linda J. Morgan announced in a decision
issued on December 10, 1999, the United States Court of Appeals for the District of
Columbia Circuit vacated a Board decision blocking Canadian Pacific Railway Company (CP)
from transferring train dispatching functions performed by employees of the American Train
Dispatchers Department of the International Brotherhood of Locomotive Engineers to
Montreal, Canada. When the Board approves a railroad consolidation application, the law
requires it to take certain steps to protect the interests of affected rail employees. One
of the conditions the Board typically imposes in consolidation proceedings requires a
railroad to reach an implementing agreement with employees before carrying out an
operating change that may result in the dismissal or transfer of employees. If the
railroad and employees are unable to reach agreement, they must go to arbitration, as a
result of which an arbitrator may impose an agreement. Arbitrators' decisions may be
challenged before the Board, but only on very narrow grounds.
This case involved CP's acquisition of the assets of the bankrupt Delaware and Hudson
Railway Company (D&H). As part of its plan to integrate the operations of the two
carriers, CP decided to move D&H's train dispatching functions from Milwaukee,
Wisconsin, to Montreal. The union representing the affected employees did not agree to the
move, so the matter was sent to arbitration. The arbitrator imposed an agreement that
permitted the transfer, and the union appealed to the Board. Just before the transfer was
to take place, the union submitted to the Board letters from officials of the Federal
Railroad Administration (FRA) at the Department of Transportation (DOT) expressing
concerns about the safety implications of moving the dispatching function to Canada.
The FRA letters noted, among other things, that Canadian "hours of service"
(hours-on-the-job) laws are different from those in the United States, and that workers in
Canada are not subject to random drug testing. In light of the safety concerns of the
union and the FRA, the Board blocked the transfer. The court rejected the Board's action,
finding that there was no lawful basis in the context of review of an arbitral decision
for blocking the transfer of the dispatching function. Although the Board is
organisationally housed in the DOT, the court pointed out that it is a decisional
independent body not subject to the control or will of the Executive Branch. Therefore,
notwithstanding the position of the FRA (and the union), the court vacated the Board's
order blocking the transfer, effectively mooting any further action by the Board in this
matter.
The Board's decision was issued on December 4, 1998, in Canadian Pacific Limited, Et
Al.--Purchase and Trackage Rights--Delaware & Hudson Railway Company (Arbitration
Review), Finance Docket No. 31700 (Sub-No. 13). The court's decision was issued December
10, 1999, in Canadian Pacific Railway v. Surface Transportation Board, No. 98-1600. As
expected there has been negative reaction from affected employees, citing safety concerns
arising from different operating and legislative requirements on both sides of the border.
Canadian Pacific Railway (CPR) is putting the final touches on a system-wide, toll-free
emergency assistance hotline program, with installation of signs displaying its 1-800
number at all CPR public level crossings in Central and Western Canada and the Midwest
United States. As the final stage in its C$600,000 Safe Passage program, CPR is currently
completing the installation of signs displaying a toll-free number 1-800-716-9132 for use
by pedestrians or motorists in the event of emergencies. When completed, by mid February
2000, two signs will be on display at each of the railway's approximately 10,000 public
level crossings from Northern Ontario to the West Coast in Canada, and in the states of
North Dakota, South Dakota, Minnesota, Wisconsin, Illinois and Indiana. CPR installed
these signs last year at 1,100 crossings in southern Ontario and Quebec, and followed-up
early this year with installation at 300 crossings in New York and Pennsylvania.
The 800 number program provides members of the public with toll-free access to the CPR
Police Service's 24-hour communications centre in Montreal, allowing the railway to
respond more quickly to emergencies. Motorists, cyclists or pedestrians will have the
information they need to contact CP immediately in the event of an incident or unsafe
situation at any crossing on the Canadian and U.S. network. Bright yellow, weather-proof
stickers bearing the toll-free telephone number and crossing identification numbers unique
to each location are being applied to existing signals and sign posts at CPR crossings. It
is expected that incidents can be prevented or reported more quickly as a result of the
new signs, especially as cellular phone use becomes more commonplace. Members of the
public are encouraged to report all potential or actual emergency situations and to report
damaged or malfunctioning signals and crossing warning devices. The CPR Police Service has
direct links with local, provincial, state and federal police forces and with emergency
response officials across its network.
Canadian Pacific Railway will suspend Rail Operations during the New Years period.
Effective 18:00 local time Friday December 31, 1999 all operations will be halted. Trains
that have not reached final destination at that time will be halted enroute and secured at
the nearest railway yard. Yards will resume operations at 07:00 local time on Sunday
January 2, 2000. Any shipments that are in transit when operations are halted on December
31 can expect a minimum of 48 hours delay. CP will use this normal shutdown period to
conduct a health check of vital systems to confirm that these computing systems and
business operations continue to function properly in 2000.
Passenger News:
There will be a new attraction for tourists this coming summer who want to ride the
Whitepass and Yukon Railway in Alaska. More than 250,000 people rode on the historic
railway out of Skagway in 1999. Many of them were drawn by the chance to ride on one of
the last operating steam trains in North America. However with only one steam engine in
operation some customers went away sisappointed. To cope with the demand the White Pass
and Yukon Railways has just leased another steam locomotive to help meet the demand.
People expect a steam engine on a tourist railway and having this extra engine will allow
the railway to have steam excursions to Lake Bennett every Saturday this coming summer as
opposed to steam excursion every other Saturday throughout the previous tourist season.
The 1920's vintage locomotive spent nearly 50 years in South America hauling freight and
passengers in Guatemala. Then in the 1970's, it was bought by a tourist railway in
Colorado. The 2-8-0 #40, is undergoing repair at Silver Plum Colorado and will be trucked
to the White Pass & Yukon.
The future of a major tourist attraction in Northern Ontario may be in trouble. The
owners of the Agawa Canyon Tour Train say the train is not paying its way. Wisconsin
Central Railway says its subsidiary, Algoma Central lost a major customer with the shut
down of the Algoma Steel Ore Division in Wawa. The loss of the customer means the tourist
train must produce more revenue than previously to ensure its future. Eighty percent of
the passengers who travel on the Agawa Canyon tour train are from the United States.
Montreal's Metropolitan Transit Agency and mayors in the Vaudreuil-Soulanges region
have reached an agreement on a C$12-million overhaul of the Montreal-Rigaud train line.
The deal should come as a relief to Rigaud commuters-transit authorities which had given
the town until June 2000 to decide whether to keep the service and help finance the
revamped train line. Rigaud does not currently belong to the MTA. The MTA's three-year
project, which is meant to increase daily transit rides by 2,500 and cut operating costs,
includes construction of a new regional train station near Highway 40 in Vaudreuil-Dorion,
with a bus link to Saint-Lazare. Transit authorities are also planning to replace two
existing train stations on Ile Perrot, and Pincourt/Terrasse- Vaudreuil stops with a new
combined better equipped station. There are also plans to build a C$4-million railway yard
in Vaudreuil-Dorion. Combined with the recent purchase of seven F59PHIs numbered 1320-1326
and the introduction of automatic ticketing machines, the new measures should cut travel
time and entice off-island commuters to leave their cars at home. The new locomotives due
in April are expected to shave 15 minutes off the trip between Montreal and
Vaudreuil-Dorion. Financing for the project will be split between the Quebec Transport
Department and the MTA. While operating costs are expected to drop on the revamped line,
seven Vaudreuil-Soulanges municipalities that belong to the MTA will have to pay an
additional C$160,000 a year for the upgraded line.
A 56-year-old woman is in serious condition in hospital on December 16 after her car
was hit by a VIA rail passenger train in Oakville, Ontario. Police say the woman's car got
stuck between the barriers at a level crossing. The woman attempted to manoeuvre her way
out but was unable to do so. She ran from the car but was struck by the vehicle after it
was hit by the train. The train sustained minor damage but there were no injuries to
passengers or crew. The eastbound Via passenger train struck the vehicle at 8:39 am; it
was the second incident involving a motor vehicle and a train in the area in 24 hours.
During the commuter rush during the evening of December 15 a westbound GO train hit a car
that had stalled at a level crossing near Mississauga. The lone occupant of the car
managed to get out before the train ploughed into her vehicle. There was a two hour delay
while the accident was cleared however no one was hurt and the train stayed on the tracks.
In an open letter to Transport Minister David Collenette, Transport 2000 Canada is
calling for upwards to a C$1 billion investment in track, rolling stock and stations for
VIA Rail, before considering privatizing the national passenger railway system. "The
rail infrastructure improvements should be funded through a national infrastructure
program. Rail simply can not compete if the government continues to underwrite
improvements to highways without a corresponding investment in railway
infrastructure," says Harry Gow, President of Transport 2000 Canada. Transport 2000
Canada is a transportation watchdog group with more than 1,000 members across the country.
A pedestrian walkway will be built over railway tracks in the town where an 11 year old
girl was killed. Krista McNorton was struck by a Via train while taking a shortcut across
the tracks three years ago. A committee formed to prevent similar tragedies announced its
idea at the Tecumseh town council in early December. Tecumseh is just outside Windsor,
Ontario. The committee has raised almost a third of the money needed to build the walkway
which will cost just over C$1-million The Krista McNorton memorial committee was formed to
monitor whether 24-recommendations made by a coroner's jury last spring are followed. The
jury's first recommendation called on Via to reduce train speed from 143-kilometres to
80-kilometres an hour. The inquest also asked for other measures to make the tracks safer.
A society that has tried to revive rail travel on Vancouver Island for almost a decade
give Via Rail's passenger service on the Island a failing grade. The Esquimalt and Nanaimo
passenger train that operates between Victoria and Courtenay failed in scheduling,
reliability, on-board services and train stations, said the Vancouver Island Railway
Society. The only area the society's report card gave a passing grade; was ticket booking.
The Via service remains the same or has deteriorated in every category, in spite of
repeated promises by Via officials to make improvements. The only solution is to let the
society take over from Via. The society applied to federal transport officials in January
to become a rail authority. If that happens, the railway will be operated at the local
level by local people, similar to the body that has operated the Nanaimo Airport since
1991. Via presently gets about C$3 million from the federal government to operate the
E&N. The passenger service uses two aged Budd RDCs on the E&N line, equipment that
is plagued by breakdowns. Passenger service was cancelled in late August of 1999 for about
a week because of a mechanical breakdown, leaving 100 people stranded in Victoria. Via has
also made no effort to provide train riders with an on-board concession, the scheduling is
not conducive to riders who may want to use the service to commute and there have been no
improvements to Via's train stations on the Island.
The mayor of Ingersoll Ontario, east of London has added his voice to the growing
demand for a rail overpass after a car-train collision killed three people on Christmas
Day. In the meantime, Mayor Michael Hennessy said, he will push for warning signals at the
rail crossing where the tragedy occurred. Three people from Woodstock, Ontario, were
killed when a Via Rail passenger train slammed into their car. The grandfather of two of
the victims, witnessed the accident from his kitchen window south of the tracks. There are
no warning signals at the crossing, where five sets of railway tracks bisect the street at
the bottom of a hill. Ingersoll, with a population of 10,000, is split in half by two sets
of railway tracks owned by CN and Canadian Pacific Railway. Residents have long sought a
bridge to link the north and south halves of the town over the tracks. Killed in the
accident were Steven Turek and Shannon Brownscombe, both 20, and Danielle Martin, 14.
Sisters Brownscombe and Ma rtin, along with Turek, were bringing Christmas gifts to their
grandfather when the accident happened. The westbound train, carrying 132 passengers and
six crew, applied the emergency brakes just before the level crossing, but smashed into
the car, dragging it half a kilometre down the track. The accident has been one of several
train-car collisions in Ontario this year. Last month, the driver of a gravel truck was
killed when his vehicle collided with a passenger train near Guelph. In June, two people
died when their car hit a passenger train near Brockville.
A Via Rail passenger train carrying more than 100 people had a minor derailment west of
London, Ontario the evening of December 29, 1999. A wheel of the trailing truck of VIA
F0PH-2 6419 derailed at the junction of the CN Chatham and Strathroy Subdivisions at
Komoka. The incident blocked the Chatham Sub and the South track of the Strathroy
Subdivision. The derailment also delayed the east bound Amtrak train which operates from
Chicago by way of Sarnia.
SHORTLINES:
The operation of the Southern Ontario Railway (formerly RaiLink Southern Ontario) keeps
changing. presently yard engine in Brantford is SW1200RS 1367, with GP9 1703 in
Hagersville for yard engine. Presently leased CN GP40-2 9433, 9584, OVRL 4205, RLK 5005
are on the Nanticoke, Garnet, Hagersville, Caledonia, Brantford to Paris West turn. The
Brantford yard job now only handles downtown Brantford and the industries on the
Hagersville up to Cainsville. The Hagersville job comes on at 0800, grabs the 1703 goes
and does Canadian Gypsum Company, and switches everything at Caledonia, then goes back to
Hagersville and leaves all cars in siding or yard for lift. Crew then goes to Garnet
(between Nanticoke and Hagersville), collects the oil tank train which was delivered the
previous evening, switches Garnet, switches the Imperial Oil (Esso) refinery, pulls empty
tank cars from the Ontario Hydro Generating plant and then ties up for the end of the
shift. The evening Paris turn comes on at 20:00, pulls Esso and Stelco puts train together
and hits the road for Paris. Enroute it lifts wayfreight cars at Hagersville and continues
to Paris West Yard beyond Brantford. After interchanging cars at Paris West, the turn
lifts at Brantford all the online traffic for Hagersville day job and proceeds back south
setting off at Caledonia and Hagersville, terminating the train at Garnet Yard, near
Jarvis Ontario.
The five Bombardier units purchased for Trillium's Kelowna Pacific, M420W's 3500, 3504,
3515, 3563, and 3571, have moved to Vernon, BC. HR412W 3580 has not yet moved to Gowanda,
NY for repairs. The sale of the line is expected to be finalized soon.
Former CN S13's 108 (built 1959 as 8617, rebuilt to 108 in 1978 retired 11.20.1996),
110 (built 1959 as 8618, rebuilt to 110 in 1978, retired 04.12,1996) and 117 (built 1959
as 8624, rebuilt to 117 in 1978, retired 27.0827.1997) and S3 slug 168 (built from MLW
8495 in 1965, first numbered B10, then 309, then 168) have moved to Trillium's Port
Colborne Harbour Railway Division at Merritton, Ontario. 110 is now in the workshop of ADM
Milling in Port Colborne being repaired for service. 110 will be the first locomotive to
be returned to service.
Four coaches headed to the Finger Lakes Railway (FGLK 3206, 3233, 5518, 5536) left
Montreal November 27, 1999 on CN train 32721-27, units 2558-5363, 49 loads, 16 empties,
5819 tons, and arrived at CSXT Massena at 05:10 November 30.
MOTIVE POWER:
CN has leased the following units to Quebec Gatineau GP40s 9602, 9615; Indiana &
Ohio Railway GP40s 9421, 9424, 9531, 9624; Ontario Southern Railway GP40s 9425, 9584;
Emmons Transportation GP40s 9673 a one month lease for month of January 2000.
Herewith the list of former GTW GP38AC's which become (Locomotive Leasing Partners)
LLPX GP38us and upgraded at Transcona Shops in Winnipeg before delivery. GTW number
followed by LLPX number: 5811/2204, 6212/2205, 5802/2206, 5804/2207, 5805/2208, 6207/2209,
5806/2210, 6209/2211, 6210/2212, 6213/2213, 6215/2214, 6214/2215, 5808/2216, 5810/2217,
5809/2218, 6208/2219, 6211/2220, 6218/2221, 6220/2222, 6216/2223, 6217/2224, 6219/2225,
6202/2226, 6204/2227
In December 1999, upgraded Illinois Central SD40-2's 6256, 6261, and 6262 were
outshopped, ex-IC 6144, 6148 and 6149. They were repainted in the current CN freight
colour scheme, the first IC units to be so painted. They do NOT have an IC logo, but have
IC R.R. on the cab sides. GTW GP38-2 5845 had wreck repairs done at NRE-Dixmoor, and this
unit was also painted in CN colours with IC R.R. on the cab sides as well.
Early in December, GP9-slug set 7269-262 placed retired and now preserved GMD1 1900
inside the heated museum area of the Winnipeg VIA station; 1900 is still serviceable.
CN GMD1m's 1178 and 1182 have been selected as the units for the truck swap with
GMD1u's 1600 and 1601. 1600-1601 will emerge as 1430-1431, which 1178 and 1182 will become
1078 and 1082, again with A1A-A1A trucks. 1078 and 1082 were built as NAR 301 and 305.
CN will receive 20 of the KCS 6600-series SD40u's in January 2000, for a period of at
least two months, numbers not yet determined.
Twelve former CN GMD1s with A1A trucks have been exported to a customer southwest of
Florida. The numbers are 1106, 1113, 1115, 1120, 1123, 1124, 1130, 1133, 1134, 1139, 1140,
1147. Two of the locomotives (1123, 1133) were repainted into an attractive two tone blue
and silver scheme with reflective dots on the frame sills. The GMD1s will be joining a
large fleet of steam powered locomotives presently in service on the railways of the
customer.
CANADIAN PACIFIC
CP SD90MAC(U) 9160 entered service on December 7, 1999. Only unit 9158 remains to be
delivered from Ogden Shops in Calgary.
CP has sold Soo Line GP9 405 to dealer D. J. Joseph and has also sold SD40-2's 5820,
5694, 5832, and 6070 to First Union Railcar, for lease to Railtex as Indiana & Ohio
4082-4085. Ten SD40-2's, sold by Quebec North Shore & Labrador to National Railway
Equipment, have moved to Mount Vernon, Illinois: NREX 224, 225, 227, 234, 247, 254, 256,
258, 262, 263.
New CP SD90MAC's 9300 to 9303 inclusive were shipped from Diesel Divison General Motors
London, Ontario in mid-December to Alstom in Montreal for painting. Units 9301, 9302, and
9303 did not contain a diesel engine. The units all have been placed on the roster for tax
purposes however the final three units are stored unserviceable awaiting a prime mover.
MISCELLANEOUS:
56 SD40/40-2's are now at Alstom in Montreal for various rebuild programs: 23 EMDX
6400, 6401, 6402, 6403, 6405, 6406, 6407, 6408, 6409, 6410, 6411, 6416, 6419, 6420, 6421,
6423, 6425, 6426, 6427, 6429, 6431, 6501, 6509; LLPX 4306; NdeM 8519; FNM 8563; 12 Duluth
Minnesota & Eastern 6056, 6057, 6058, 6059, 6060, 6061, 6062, 6063, 6064, 6065, 6066,
6067; 14 of CP 5447, 5449, 5483, 5484, 5505, 5516, 5523, 5571, 5596, 5608, 5628, 5659,
5686, 5740; 4 Soo 744, 750, 754. A total of 24 EMDX and LLPX SD40's have been sold to
Alstom.
Thank you to the following for information used in the February 2000 Canada
Calling: Kevin Argue, Rainer Auer, Will Baird, Doug Baker, Christian Base, Gerry Burridge,
Bruce Chapman, Sandy Claws, Stan Feldman, James R. Hay, Paul Hammond, Brian Kimmons, Dave
Lisabeth, Jayphred, Peter Jobe, Jim Sandilands, Rob Sterne, Bob Thatcher, Thumper, Gordon
Webster, Ian Wilson, and numerous others. Best wishes to everybody for the next year.
[ DEPARTMENTS ] |
