American Railroad Daily

Union Pacific Railroad today announced it set a monthly record for moving loaded agricultural unit trains from facilities across its network.  In November, the railroad moved 400 agricultural unit trains, breaking the previous record of 381 trains during October 2006.  Of the 400 trains, 338 of them were grain and soybean unit trains and 62 were grain product trains.

"With record crop production levels, we knew this would be a busy year.  Every area, from operating to engineering to our dispatch center, was ready for the challenge and provided peak service levels for our customers," said Paul Hammes, Union Pacific vice president and general manager - Agricultural.

Union Pacific also announced the following agriculture loading records:

• During November, Union Pacific moved 35,588 carloads of grain and soybeans.  This was the best November since 2007 when the railroad moved 33,797 cars.  The previous best November was in 2002 with 32,897 carloads.
• Union Pacific moved 12,399 carloads of soybeans in November, the second largest month ever behind October 2009 when the company moved 16,490 carloads of soybeans.

Union Pacific Railroad's Pipeline Express service has reached a milestone by delivering its 25,000th rail car of customer product.  Formed in 2005, Pipeline Express has grown from moving approximately 1,700 rail cars in its first year to nearly 8,000 for its customers through year-end 2008.

Pipeline Express serves the steel pipeline industry for oil and gas producers with truck-competitive transit times and a rail network that aligns well geographically with new pipeline projects.  Union Pacific's site selection support for customers is unmatched in the industry.

"By offering the best value proposition to the natural gas industry, Union Pacific has emerged as the clear transportation choice," said Greg Shimonek, senior business director for the railroad's Pipeline Express service. "Our carloads tell the story."

Natural gas reserves are expected to grow 39 percent from 2007 levels by the end of 2009, according to the Energy Information Administration. Having invested nearly $17 billion in its rail network since 2005, Union Pacific is ready to serve that growth.

"We have the industry's largest fleet of 89-foot flat cars capable of hauling 100 tons of pipe," Shimonek said.  "That's greater than 40 percent more capacity in terms of weight than most of the cars our competitors offer."

Union Pacific provides additional values to customers including:

• The ability to carry 9 to 11 pipes on a single rail car compared 7 to 8 for other rail carriers and just two per truck.
• Unit trains that increase delivery speed and reduce delivery variability to hours instead of days compared to regular trains.
• Daily logistics reports that can pinpoint product location along the delivery route, starting when the pipe leaves the mill.
• Single point of customer contact for the total transportation cycle.

Combined with its rail network investments, services such as Pipeline Express have helped Union Pacific achieve all-time highs in customer satisfaction and record network velocity.

Noting the need to create good jobs in America and the importance of a revitalized manufacturing sector, Transportation Secretary Ray LaHood last week announced that more than 30 rail manufacturers and suppliers, both domestic and foreign, have committed to establish or expand their base of operations in the United States if they are chosen by states or groups of states to build America’s next generation high-speed rail lines. Earlier this year President Obama signed the American Recovery and Reinvestment Act (ARRA), which included $8 billion for states to build high-speed rail corridors and improve intercity passenger rail service.

“Our goal is to develop a national high-speed rail network, create good jobs here in America and help reinvigorate our manufacturing base,” said Secretary LaHood. “We know these are tough economic times for many folks and we believe that U.S. rail manufacturers and suppliers will benefit greatly from this new program. We also look forward to establishing joint ventures with foreign firms who can provide expertise and establish or expand their operations here in the U.S.”

LaHood made his announcement at a discussion with more than 100 business leaders, union representatives, industry groups and experts on President Obama’s vision for the development of high-speed rail and intercity passenger rail in Washington, DC.

In April, President Obama released a strategic plan outlining his vision for high speed rail in America. The plan identifies $8 billion provided in the Recovery Act and $1 billion a year for five years requested in the federal budget as a down payment to jump-start the program.

“We believe that the President’s plan for high-speed rail will provide a real transportation alternative for millions of Americans, while also creating jobs in many communities throughout the country,” said Federal Railroad Administration Administrator Joe Szabo.

Support for the program has been strong nationwide. The Federal Railroad Administration has received numerous grant applications from states and groups of states. This includes 45 applications from 24 states totaling approximately $50 billion to advance large high-speed rail corridor programs and 214 applications from 34 states totaling $7 billion for corridor planning and smaller projects. Award announcements will be made this winter.

These proposals aim to spur economic development while providing Americans with clean, energy-efficient transportation choices in the decades to come.

A live webcast of the event, as well as an archived version, can be viewed at: www.tvworldwide.com/events/dot/091204.

The Surface Transportation board has scheduled a third series of oral arguments for Tuesday, January 26, 2010, at 9:30 a.m., at the STB's Washington headquarters.

Board members will hear from parties in San Benito Railroad LLC—Acquisition Exemption—Certain Assets of Union Pacific Railroad Company (San Benito), STB Finance Docket No. 35225; and Allegheny Valley Railroad Company—Petition for Declaratory Order (Allegheny Valley), STB Finance Docket No. 35239.

In the San Benito case, a non-carrier wants to purchase 12.43 miles of rail line from the Union Pacific Railroad in a transaction that would allow San Benito to purchase the physical assets of the rail line without incurring common-carrier obligations. San Benito cites the Interstate Commerce Commission's decision in State of Maine—Acq. And Op. Exempt, 8 I.C.C.2d 935 (1991) (State of Maine), and subsequent Board decisions addressing State of Maine as precedent. The Brotherhood of Maintenance of Way Employes Division/IBT and the Brotherhood of Railroad Signalmen oppose the transaction and contend that State of Maine was wrongly decided.

In the Allegheny Valley case, the Allegheny Valley Railroad filed a petition for a declaratory order to determine whether a rail-line segment in Pittsburgh, PA, remains an active rail easement. Claiming the easement remains active, Allegheny Valley wants to restore the line segment as part of a longer line and provide passenger and freight rail service over it. The segment spans property owned by The Buncher Company, which claims that the segment has been abandoned and that the property interest has been extinguished.

Each side in each case will have 20 minutes to argue its position and to take questions from Board members, similar to proceedings in federal appellate courts. The oral argument is scheduled to begin at 9:30 a.m. in the hearing room at STB headquarters, 395 E Street SW in Washington, D.C. Though the proceedings are open to the public, only counsel for the parties to the cases will be permitted to speak. Photo identification is necessary to enter the building.

A live video broadcast of the oral argument will be available via the Board's Web site at http://www.stb.dot.gov, under "Information Center"/"Webcast"/"Live Video" on the home page.