Tag Archives: Canadian Pacific (CP)

Crude By Rail, Rail industry, Tank car design, Train speed

3 Railroad CEO’s quoted: faster trains ok

Repost from Wanderings

Railroad ‘Bomb Trains’: Speeding to Disaster

by Walter Brasch, Thursday, August 21, 2014

WANDERINGS

It’s 3 p.m., and you’re cruising down a rural road, doing about 50.

A quarter mile away is a sign, with flashing yellow lights, alerting you to slow down to 15. It’s a school zone.

But, you don’t see any children. Besides, you’re going to be late to your racquetball match. So, you just slide on past.

You’re an independent long-haul trucker. You get paid by the number of miles you drive. If you work just a couple of hours longer every day than the limits set by the federal government—and if you can drive 75 or 80 instead of 65, you can earn more income. You have your uppers and energy drinks, so you believe you should be able to work a couple of hours a day more than the regulations, and drive faster than established speed limits.     Now, let’s pretend you’re the CEO of a railroad. Your trains have been hauling 100 tanker cars of crude oil from North Dakota to refineries in Philadelphia and the Gulf Coast. That’s 100 tankers on each train. A mile long.

About 90 percent of the 106,000 tanker cars currently in service were built before 2011 when stricter regulations mandated a new design. The older cars are susceptible to leaks, explosions, and fires in derailments. But, because of intense lobbying by the railroads, they are still carrying oil.

Railroad derailments in the United States last year accounted for more than one million gallons of spilled oil, more than all spills in the 40 years since the federal government began collecting data. The oil pollutes the ground and streams; the fires and explosions pollute the air.

Most of the derailments threatened public safety and led to evacuation of residential areas. One derailment led to the deaths of 47 persons, the destruction of a business district, and an estimated $2 billion for long-term pollution clean-up and rebuilding of homes and businesses. Three derailments, including one in a residential area of Philadelphia, occurred this past year in Pennsylvania.

The derailment and explosions of “bomb trains” became so severe that in May the Department of Transportation declared the movement by trains of crude oil  from North Dakota derived by the process known as fracking posed an “imminent hazard.”

The federal government wants to reduce the speed limit for those trains carrying highly toxic and explosive crude oil.

If you’re Hunter Harrison, CEO of Canadian Pacific (CP), you say you “don’t know of any incidents with crude that’s being caused by speed,” and then tell your investors, “We don’t get better with speed [reduction]. We get worse.”

If you’re Charles Moorman, CEO of Norfolk Southern, you agree completely with your colleague from CN, and say that a higher speed limit is safe.

If you’re Michael Ward, CEO of freight giant CSX, you say that lower speed limits “severely limit our ability to provide reliable freight service to our customers.”

You and your fellow CEOs have even had one dozen meetings with White House officials to explain why slower speeds are not in the nation’s best interest. You explain that your railroad should be allowed to determine the best speed for your trains.

Driving a car through a school zone, you don’t have the right to determine your best speed.

Driving a truck on interstate highways, you don’t have the right to determine your maximum speed.

But, if you’re a multi-billion dollar railroad industry, you think you have the right to set the rules.

[Dr. Brasch is a former newspaper and magazine writer and editor. He is the author of 20 books, most fusing historical and contemporary social issues. His latest book is Fracking Pennsylvania: Flirting With Disaster.]
Farming, Rail industry

Farmers Union Calls Ability to Deliver Grain Shipments by Rail at Harvest ‘Substantially Inadequate’

Repost from National Farmers Union
[Editor: This media alert does not name the massive expansion of crude by rail shipments in the upper Midwest as the cause for lack of rail cars for shipping farm commodities, but there is little doubt this is the problem.  – RS]

August 6, 2014
Contact: David Thews, 202-554-1600,  dthews@nfudc.org
NFU Calls Ability to Deliver Grain Shipments by Rail at Harvest ‘Substantially Inadequate’
Warns Surface Transportation Board Farmers May Be Forced to Dump Grain

WASHINGTON (August 6, 2014) – National Farmers Union (NFU) President Roger Johnson warned the Surface Transportation Board (STB) that BNSF Railway (BNSF) and Canadian Pacific (CP)’s ability to deliver grain and ethanol at harvest are “substantially inadequate” and are resulting in farmers piling grain on the ground because of lack of transportation options.

“We are especially concerned regarding wheat, since harvest has already started and grain remains in the bin from last year’s harvest,” noted Johnson in a letter today to the STB chairman and vice chairman.  “While BNSF claims that the total number of late shipments of wheat has declined nationwide, 95.42 percent of all past due cars are concentrated in Montana, North Dakota, South Dakota and Minnesota. BNSF has promised to improve their performance, but we are still subject to delays and Average Train Speed at year-long lows,” the letter notes.

“Grain shipments in North Dakota are critical,” said Johnson.   BNSF reported in its latest weekly update that there have been 2,399 delayed rail cars with an average delay of 23.6 days. CP reported 22,457 open requests with an average of 11.71 weeks.   The letter cites anecdotal evidence from four different grain elevators indicating that their oldest orders are from early March and shuttle orders are up to 2,000 cars behind. “These numbers are staggering and simply unacceptable,” he said.

Johnson notes that in South Dakota, NFU members are hearing about significant delays directly from local grain elevators across the state. At one particular elevator that handles 15 million bushels of grain per year, 3 million of those bushels will not move before this year’s harvest.  “Due to the backlog, farmers are now dumping wheat on the ground because the elevators will not take on the increased liability,” he said.

Johnson also voiced his concern about the ethanol industry, which relies heavily on rail for transportation.  “While the June 20 decision rightfully addressed grain shipments, we encourage STB to consider shipments of ethanol as a priority as well,” he said.  “Failure to bring ethanol to market will hurt consumers because of higher gasoline prices, and will work against our efforts to offset imports of foreign oil.”

A full copy of the letter is here.

National Farmers Union has been working since 1902 to protect and enhance the economic well-being and quality of life for family farmers, ranchers and rural communities through advocating grassroots-driven policy positions adopted by its membership.

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