Category Archives: Rail industry

Bakken rail network is one big traffic snarl – crushing delays for AMTRAK

Repost from MOTHERBOARD
[Editor: The author of this article, Michael Byrne, lives within sight of a major rail throughway, and offers first-hand observations about the “crushing delays” on passenger rail service.  – RS]

The Oil Boom Is Putting the Squeeze on America’s Passenger Rail Network

Written by Michael Byrne  |  April 19, 2014
OilTrain(Motherboard)
Image: BNSF oil train/Roy Luck

I’ve boasted about my front yard proximity to the northern United States’ dominant freight rail line on Motherboard before. It’s just right there, across a patch of grass and down an embankment: the Northern Transcon, pushing miles and miles of connected freight carriages to and from the Pacific Northwest’s port cities. It’s a real-time view of America’s goods economy as it breathes in and out. That economy, as revealed by my Transcon neighbor, is currently hyperventilating, and the flow of traffic is often nearly continuous, at least within the boundaries of single track (single lane) line.

The flood of trains traveling over the Northern Transcon in the year 2014 has a lot to do with oil. The line, the property of the BNSF railroad, connects with the Bakken formation oil fields in North Dakota, where the railroad has been dumping money lately in a race to upgrade and expand its local capacity/network: a North Dakota oil boom has brought with it a North Dakota rail boom. Oil trains, now buffered at each end by an empty box car for safety, exit the Bakken zone heading for Great Lakes ports and refineries to the east and, to the west, the export terminals around Seattle and Portland. It’s reasonable to say that the oil boom would only be possible with the railroad.

In the late-’90s BNSF reopened a third route connecting the Midwest (including the now booming oil fields) and the Northwest, the once-mothballed Stampede Pass over the Cascade Mountains. Overall, the railway’s been booming like crazy since then. 2014 should be a record for the railroad, thanks largely to crude oil shipments. But, after this past winter, the Bakken fields’ associated rail network is one big traffic snarl, and the railway is pouring money and manpower into the region to untangle it: 500 locomotives, 5,000 railcars, 300 new crew members. Of course, the company’s interest is in getting oil out of the region, but a cruel side effect of the jam is crushing delays within the United States’ passenger rail system.

Those systems, dominated by state-pseudo-owned railway Amtrak, typically run on tracks owned by freight railways—leasing trackage rights—except in a few special areas, like California, the Northeast Corridor, and parts of Michigan and New York state. Elsewhere, particularly across the country’s midsection, passenger trains are at the mercy of private freight-hauling corporations. If you’ve ever made a cross-country rail trek, you are most likely already aware that on-time performance just isn’t a relevant concept. Last month, the Empire Builder, the Amtrak route that travels from Chicago to Portland and Seattle via BNSF’s Northern Transcon, was on-schedule 17.4 percent of the time.

We’re not talking about minutes either. The westbound Empire Builder is scheduled to pass through here at eight in the morning; usually, it shows up mid-afternoon, if not eveningtime. Finally, at the beginning of this month, Amtrak took the rare step of admitting defeat. It changed the schedule, padding an extra three hours onto the eastbound train schedule and an hour on the westbound (which is still hardcore wishful thinking or a total delusion). The pleasure of spending nine hours at a lonesome Midwestern rail station in the dead of winter for a late train is a distinctly American feeling (or Siberian, perhaps), putting the shitty microwaved cafe car food and overpriced Heineken into perspective, if the train isn’t out of both already.

Perhaps even more pressing is the situation in Minneapolis, as BNSF delays hit the Twin Cities’ local commuter line, the Northstar. Freight delays have put not only the entire existence of the (relatively new) service in jeopardy, but a forthcoming light-rail line as well. As is typical, the BNSF response is petulance. From a recent Minneapolis StarTribute editorial: “As BNSF Vice President Bob Lease points out, the conflict with commuter rail is almost unavoidable; the system is built for freight, which tolerates a degree of delay that commuters cannot abide.”

Unfortunately, as much of a shrug as Lease’s comment is, he has a point. Passenger rail service shouldn’t have to rely on freight rail companies being nice. Passenger rail needs public investment—new, faster tracks—and it needs the teeth to punish its corporate landlords for 17.4 percent on-time performance, when that performance is nigh entirely at the whims of said landlord.

Crude by rail is big news on any given day

Editor: I have tried to find news to post here on a daily basis.  What once was a daunting task for a one-person operation has now become almost impossible.  Take a look at the top 6 results in today’s Google result for +crude +oil +train NEWS in the Past24 hours.  Check out the stories Google found, especially the last one: Dallas Morning News’ report, “Railroads defend secrecy as accidents raise concerns”  I have a family event today … this will have to do for now.  – RS

GOOGLE SEARCH RESULTS: About 1,020 results (0.15 seconds) 

Farmers: Oil trains may delay fertilizer shipments

Repost from Ag Week

Oil traffic could delay US fertilizer shipments, farmers warn

Increasing use of railroads to ship crude oil could disrupt fertilizer cargo this spring as Midwest farmers prepare for planting, U.S. agriculture leaders warn, even as one railroad said on Monday it will take steps to ensure timely deliveries.
By: Reuters, April 15, 2014

WASHINGTON — Increasing use of railroads to ship crude oil could disrupt fertilizer cargo this spring as Midwest farmers prepare for planting, U.S. agriculture leaders warn, even as one railroad said on Monday it will take steps to ensure timely deliveries.

The planting season is nearly at hand in states such as the Dakotas and Minnesota, where soybean, wheat and corn growers will lay millions of tons of fertilizers like nitrogen and potash that mostly arrive by train.

Those supplies are not stockpiled near the fields and the farmers rely instead on steady deliveries by rail.“

Since we don’t store fertilizer, the next very few weeks are incredibly important for South Dakota farmers,” said state Agriculture Secretary Lucas Lentsch.

But fertilizer cargo is being waylaid as railroads are clogged by trains carrying crude and other freight and that could ultimately jeopardize the fall crop, farmers have warned lawmakers and other officials.

“If rails are too congested for fertilizer in the weeks ahead, the problem will solve itself because there won’t be anything to harvest in the fall,” said Dave Andresen of Full Circle Ag, a farm services company in South Dakota.

BNSF Railway Co. said on Monday it had assigned more locomotives and train crews to expedite fertilizer deliveries so nutrients can arrive at delivery points on time.

“We understand the shortness of the season and the necessity of timely delivery,” the rail operator said in a notice to farm customers.

CHS Inc., a top farm supplier in the Upper Midwest, expects to help meet near-term demand for nutrients but is concerned supplies could dwindle a little later in the growing season.

“In the early weeks of planting, farmers need a recharge and the fertilizer sheds need to be stocked up before then,” said Jeff Greseth, the company’s head of crop nutrition.

Supply lines have been snarled in part by clearing grain bins of the remainder of last year’s crop and recovering from harsh winter weather.

Barges ferrying dry fertilizer on the Mississippi River and into Minnesota have found some waterways frozen over for longer than normal, Greseth said.

“The ice has some deliveries running a week, 10 days late,” he said, but an increase in oil-by-rail traffic has also weighed on the train network.

Rail shipments of crude oil have been on the rise in North Dakota’s Bakken energy patch, where production is nearing 1 million barrels per day, and roughly 72 percent of that fuel moves on the tracks.

Last week, farmers beseeched federal officials to make sure rail operators such as BNSF and Canadian Pacific Railway Co were giving them enough access to the tracks.

The Surface Transportation Board, a regulatory agency that arbitrates rail disputes, has heard from farmers across the upper Midwest that a shortage of rail cars and delivery delays were endangering their livelihoods.

BNSF executives have said service will improve in the years ahead along with investment and an expected uptick in farm, crude oil and other commodity shipments.

Council opposes crude by rail in Vancouver, WA – safety issues

Repost from The Oregonian
[Editor – Significant quote: “a majority of Vancouver City Council members recently announced they opposed the $110 million terminal, citing not its potential environmental impacts, but their concern that the project may endanger the city’s 165,000 residents.”  – RS]

Fiery oil train accidents heighten scrutiny of major Vancouver, WA rail terminal

By Rob Davis | April 11, 2014
 
Port of Vancouver oil terminal – 2.  The Port of Vancouver’s rail loop would be used to unload 360,000 barrels of oil daily from trains. (Courtesy of Port of Vancouver)

Building the largest oil-by-rail terminal in the Pacific Northwest was never going to escape controversy, not in a region with a robust environmental lobby.

But for a planned terminal in Vancouver, Wash., a series of fiery oil train explosions has expanded opposition and heightened scrutiny of a project promising to be a bellwether for a growing number of facilities in development along the West Coast.

Tesoro Corp., a major oil refiner, and Savage Cos., a supply chain logistics manager, are proposing to bring four loaded oil trains a day through the Columbia River Gorge into Vancouver, where crude would be loaded on barges bound for West Coast refineries. The terminal could process 131 million barrels of oil annually, seven times more than trains hauled through Washington last year.

Trains and trade are an indelible part of Vancouver’s identity. Roughly 75 trains move daily through the city, which traces its history to being a hub of the Pacific Northwest’s 19th century fur trade.

GS.00036566A_IT.OIL.TERMINAL-02.jpg.jpeg

But a majority of Vancouver City Council members recently announced they opposed the $110 million terminal, citing not its potential environmental impacts, but their concern that the project may endanger the city’s 165,000 residents.

“We’re pushing a margin of safety that we’re not ready to deal with,” Councilman Larry J. Smith, a retired Army infantryman, said at a recent meeting. “The accidents sort of prove that. We have a ways to go to prove that we’re safe and secure and taking care of our citizens.”

Oil trains today aren’t as safe as they could be. Most tank cars moving oil are outdated models. While the federal government is tightening safety standards, new rules aren’t expected before late 2014. Upgrading the country’s rail fleet could take as long as a decade.

Meanwhile, the characteristics of the North Dakota oil moving by rail remain poorly understood. Before oil trains exploded, crude wasn’t thought to be especially flammable. But samples show that oil moving through Vancouver into Oregon is saturated with more propane and other flammable gases than comparable types of crude.

Those uncertainties led the Port of Portland to reject crude-by-rail terminals until safety gaps are addressed. But in Vancouver, the port has pushed ahead, with top leaders saying they believe stronger safety standards will be place by the time the project – worth $45 million over 10 years in lease revenue to the port – finishes a state permitting process expected to take a year or longer.

The port had a warning that the project would be more controversial than it expected. The agency approved its lease with Tesoro-Savage less than three weeks after the first oil train accident, which killed 47 people in Quebec last July.

After that accident, port and company representatives said something similar couldn’t happen in Vancouver. The Quebec accident, they said, happened on a short-line railroad with different standards than the main-line track that the BNSF Railway Co. operates in Vancouver. That was reinforced when a second accident happened on a short-line operator’s track in Alabama in November.

Then came a third oil train explosion in December – on a main line BNSF operates in North Dakota.

North Dakota oil train derailmentA string of train accidents involving crude oil from North Dakota have created massive fireballs, including this one outside Casselton, N.D., in December 2013. Bruce Crummy/The Associated Press

Todd Coleman, the Port of Vancouver’s executive director, said his agency may have approached the project differently and gotten safety questions answered up front if it had known more accidents would follow. But Coleman said he is still confident that the project’s state permitting process will make it as safe as it can be.

In the meantime, Coleman has traveled to Washington, D.C., advocating for regulators, railroads and Tesoro-Savage to improve oil train safety.

The port recently commissioned a safety study that concluded the risks of an oil train derailment on its track are very low and recommended $500,000 in rail improvements the agency pledged to make. The study didn’t examine the chances of human-caused errors, the leading cause of rail accidents.

And the port has yet to approve a separate Tesoro-Savage safety plan, which Coleman said could “conceivably” allow the port to require tighter safeguards if federal regulations don’t catch up.

“It’s unfortunate incidents that have happened, absolutely,” Coleman said. “But it will make it safer in the future.”

That hasn’t assuaged fears among people Jack Burkman talks to. The three-term Vancouver city councilman and other elected officials say they’ve been barraged by questions from worried residents.

“I’m stopped everywhere in town by people I never would’ve expected to be concerned about this,” said Burkman, a retired engineer. “There’s too much lack of understanding. While the likelihood of an accident may be really, really low, the problems we’ve seen have been horrific. That’s what people are having a hard time wrapping their arms around.”

The project, which could employ 120, is clearly important to Tesoro. After City Council members announced last month that they would oppose the project, Tesoro executives immediately flew into town to meet with business leaders and the local newspaper to press their case.

Loading oil on barges in Vancouver would allow the company to move North Dakota crude to its California refineries for less than the full rail journey would cost. It could export Canadian crude or move U.S.-produced crude if the oil industry successfully lobbies to lift a ban on exporting domestic supplies.

A Wall Street analyst who follows Tesoro said the terminal faces a tougher permitting process amid rising opposition to crude-by-rail terminals.

“It’s a bit ahead of other projects and it’s a bit bigger, so it’s a bit more of an indicator relative to these smaller projects about whether they get approved,” said Allen Good, a Morningstar analyst. “If it does get stopped, it will give a lot of momentum to groups opposing other crude-by-rail facilities.”

One of the project’s most prominent opponents is Barry Cain, a developer working on a $1 billion waterfront redevelopment of a former Boise Cascade paper mill. He’s an unlikely opponent: A businessman who praises the domestic crude boom for helping the United States reduce its dependency on foreign oil.

IMG_3364.JPG
A rendering of the waterfront redevelopment project that developer Barry Cain is working on in Vancouver, Wash.Rob Davis/The Oregonian

Three oil trains a day already move past Cain’s development site, on the key BNSF line that connects to refineries in northern Washington. But the terminal would bring four more. Cain said he worries that fear about exploding oil trains will damage property values, make financing or insurance harder to find and dissuade potential development partners.

“We don’t want to lead any fight,” Cain said of his development partners. “We’re all businesspeople, we’re not the type who’d normally be opposed to this. It’s good to reduce our dependency on foreign oil. But this affects the project we’re working on.”

Ultimately, Washington Gov. Jay Inslee will have to approve or reject the project if it clears a quasi-judicial process being led by Washington’s Energy Facility Site Evaluation Council. Inslee has not taken any position on it.

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