Rip Track

Final Thoughts, for now at least . . . . .

2009-10-12T16:09:00.002-05:00

The reports of my demise, retirement, disability, or death are all in error. However, this will more than likely be Rip's last post at this blog. Why? Two reasons.

First, Riptrack the blog never really lived up to my expectations. At the outset I was excited, but maybe I overestimated the need to provide an avenue for the exchange of opinions regarding the frustrations of track construction, primarily with Transit and Commuter Rail Agencies. True, there was some early interest, but a combination of the tapering off of repeat visits to the site by initial readers, very few word-of-mouth referrals by readers to non-readers, and even perhaps Rip's inability to galvanize the typical Maintenance of Way persona to contribute may be to blame. The biggest responses I received did not have much to do with Track Construction and Maintenance as they did with Fuel Surcharges or the Metrolink tragedy near Chatsworth. It was never my intent to cover such items in the first place, but I have to admit that limiting written items to "tracks" only leads to the dreaded "slow news month". All of this has led me to believe that Riptrack was an answer to a question that was never asked.

Are things better for those of us who deal with these Agencies? Not by a long shot. Those agencies who had entrenched interal bureaucracies and entangling external relationships with consultants still remain bound and inflexible. Many agencies who were once labeled as serving the public in an efficient and tax-saving way have taken the same diverging route to problems and frustration as many of the entrenched and entangled ones. As I speak with my colleagues, we agree that there are maybe a couple of agencies that can do with $1 what the bad guys take $3 to do. There is no point in naming names now, but a review of the past Ripper Awards will give clues to who a couple of the good guys are.

Second, Rip believes that technology, the same technology that spawned blogs in general and Riptrack in particular, has moved on. Twitter, Facebook, and to some extent even text messaging have fulfilled the need to express oneself in a way that starts to make blogging obsolete. Don't believe it? All you have to do is to check out the blogs now provided by the professionals, like Progressive Railroading. Even with the extensive website promotion, the professional graphics, and the printed word, these professionally published blogs have become the haven of certain opinionated types who live to stir up the few readers who dare to respond. Meaningful dialog is, how do they say, flamed.

Make no mistake. I am better off for my efforts here. I have learned. I have appreciated the kind as well as the not-so-kind words. I am not bitter or angry. But, I am moving on, even after this ten month interval. For those who need the blog fix, I do recommend the Progressive Railroading site. As for me, maybe I will finally try to tweet, or to update my profile, or whatever becomes the next effort in communication that leads us all to more efficient Railroad Construction and Maintenance.

Thanks for reading.

Short Lines, not as long but just as wide: Happy 2009!

2009-01-08T14:53:00.003-06:00

Most are glad to see the New Year. But it is beginning to look like the railroad supply business won't be a whole lot better than '08. Everyone is trying to remain optimistic nonetheless.

Light Rail Blogger noted in the last post that Light Rail has opened in Phoenix, Arizona! As does New Mexico Rail Runner, it looks really good. Here are a couple of photos from Metro's own webpage:

Impressive!

There is a great quote, maybe from Dr. Beverly Scott of MARTA in Atlanta, in the latest issue of Mass Transit. On page twelve it says, Transit is kind of like Chinese food; no matter how much you get, eventually you'll get hungry for more. That seems to be the case with almost all light rail systems in the USA.

According to Railway Age, Union Pacific has set new tonnage records for coal in the Powder River Basin.

The Chatsworth Metrolink Disaster is having a far-ranging ripple effect, even before the government mandates their changes. Some Class One Railroads have now forbidden the possession and use of cell phones. Several rail shippers have commented that this change has made it more difficult to communicate with local train crews who service their sidings. Cell phones had made it helpful in getting an idea of when and how many cars would be spotted. No more.

Can we mention the BCS? At least for a couple of points:

-We all agree that there has to be a better way, right? Rip would like to know how it is that the NCAA once said "no tournament because we cannot play more games than we already do" and yet turn around and allow a twelfth regular season game to be added to everyone's schedule?

-Rip never thought that he would miss the ESPN announcers, but the Fox play-by-play types have managed to make me do just that. Fox People, watch your own monitors, or better yet look at the game! Then, you would actually know what is going on.

-Tonight's Oklahoma-Florida game will answer questions. Can the Big Twelve actually play defense? Will an SEC team do it again? Understand that Rip has no dog in this hunt, but he may have to watch the game with the sound off, to avoid hearing that "Boomer Sooner" thing ad nauseam.

The new "Track Guy" Newsletter is out. If you don't get it, go here to see it.

Here's hoping that you have a safe, productive, and fulfilling 2009!

Congrats to New Mexico Rail Runner!

2008-12-23T16:41:00.004-06:00

Good planning and execution have led to the opening of an extension of the New Mexico Rail Runner operation from Bernalillo to Santa Fe! This project was a favorite of Governor Bill Richardson. Looking at this photo brings one question to mind: Can a rail commuter operation prosper in such a sparse landscape?

If you have ever driven from Santa Fe to Albuquerque on Interstate 25, you will agree that the amount of vehicular traffic is truly amazing. Much of the new trackage runs in the media of that Interstate. A fast train will, as usual, be its own best advertising while it speeds by auto traffic. No doubt his will be an interesting operation to watch.

A review of ridership on transits across the nation indicate that patronage is up, even in the face of much, much lower gasoline prices. APTA has said so here and here. Want more specific examples? How about Texas? Dallas Area Rapid Transit and Trinity Rail Express seem to be increasing by the minute. Both were doing well for the summer, and have continued in October and November. Tri-Met in Portland continues to impress.

How about auto happy California? VTA in San Jose checks in impressivesly. Not to be outdone, Los Angeles MTA is going strong, too. And, don't forget Amtrak! That Agency is up in California, too. It looks like last summer's outrageous gasoline prices have resulted in decisions by many that have modified how travel is done.

So, in today's travel environment where light rail and commuter trains are being favored, New Mexico Rail Runner should do well. New Mexicans are surprisingly open to innovation and change, and should embrace the idea of taking the train between Santa Fe and Albuquerque. Let's hope so! Success here will breed success elsewhere, for sure.

Just for good luck, here is one more photo:

So, good luck on ya, New Mexico. And, Merry Christmas to all!

Metrorail Shows Good Thinking

2008-11-26T14:27:00.003-06:00

Just got my November '08 copy of Railway Track and Structures, and was pleased to read a story about how Metrorail dealt with a Track Inspector who failed to identify poor track (scroll down to October 17) that ultimately led to the derailment on June 9th of Train 905 near their Court House Station. I read this article wondering if that Inspector was "let go" as a result. I was gratified that such was not the case!

I was even more gratified to read that Metrorail has put into place a great deal of effort to insure that a similar superficial inspection was less likely to happen again. The inspector was not fired, but retrained. Further, Metrorail has installed a new Track Inspector Certification Program involving both written and other practical exams, and has made the Program mandatory for not only new but also current Track Inspectors. I was amazed to read that Metrorail employs a total of thirty-seven track inspectors, and that they all had completed the new training program by mid-October.

To be sure, as you read the article you will learn that the inspector failed to comply with many existing directives. To be sure, readers of Rip Track have, in the past, been critical of some of Metrorail's policies and operational practices. But this has to be seen as a step in the right direction when compared with what was traditionally done.

When I was climbing up the engineering organizational chart, the normal procedure was to send a new recruit out to inspect track without much more training than that recruit had learned as a laborer/machine operator/foreman. Such training could be good or bad, depending on who the recruit had worked for. In other words, a good boss equaled good training, and vice versa. If the new recruit was lucky, and learned the nuances of his trade, survival! If, on the other hand, the recruit shared the experience of our Metrorail Inspector, it was "back to your tools."

Metrorail's approach is better, more proactive. Good on 'em!

And, Happy Thanksgiving, too!

SCRRA Crash Today . . .

2008-11-20T17:27:00.002-06:00

Metrolink (SCRRA) is still having bad luck. A Metrolink Train sideswiped a freight train in Rialto, California. The story is here, at least as much as there is now.

There have been recent developments in the Chatsworth disaster, too. Rip is putting together some links and some thoughts that will hopefully be up soon.

Short Lines, not as long but just as wide: Election Results!

2008-11-07T16:04:00.005-06:00

Not the results you already know about, but other important results. It was a big day for many Rail Commuter and Transit Agencies last Tuesday. For the most part, voters strongly supported tax and bond issues to fund construction and expansion of Commuter Rail and Light Rail projects. The NRC reviews many outcomes. A blog at Progressive Railroading comments as well.

APTA makes a sweeping comment about the vast number of projects awaiting funding, projects already approved and ready to go.

The old voting patterns remain: Areas that have rail transit know the benefits and support these projects; areas that do not (ie. Kansas City) reject them. Many have wondered if recent lower gasoline prices gave some voters a short memory concerning our undesireable dependence on foreign oil.

An example of a city that has embraced Light Rail Transit is Portland, Oregon. Congrats are in order for the area, as the new Westside Rail Commuter Line is about to be opened. There is no doubt in my mind that cities like Portland will thrive in the future while cities like Kansas City will not, simply due to the investment made in rail transit infrastructure.

Another issue: When will the economy pick up? I have no better idea than anyone else, but I do know an excellent indicator. When centerbeam flatcars such as these are no longer seen stored along lonely desert sidings, the recovery will be underway!

AREMA 2008 Annual Conference

2008-10-06T11:56:00.007-05:00

As many predicted, the whole affair in Salt Lake City came off very well. Having noted that, most believed that the Exhibits came off better than the Sessions. The Salt Lake City Convention Center was a wonderful setting no matter what objections or praise could be heard. The exhibit space entrance was sharp, and led attendees into a variety of displays; a choice could be made between visiting old supplier friends and making new ones. I did hear that the total square footage seemed less than one of the major shows from maybe five years ago, but I believe that the Salt Lake City event seemed definitely larger than last year's show in Chicago, and probably larger than the show two years ago in Louisville, Kentucky.

No outdoor exhibits were to be seen, but there were static displays of various heavy equipment in the Hall to offset that fact. While seeing innovations in trackwork machinery actually happening in front of your eyes on track is a great thing, there is no doubt that pulling off these outdoor displays is tough. First, there must be a little used yard facility that can be dedicated for the time required to set up, show, and take down. Little used yard facilities are not easy to find, and this fact alone limits potential sites for AREMA Rail Expos. Second, the logistics of transportation, insurance, basic creature comforts, and the potential for bad weather have to be accomodated. Did we see our last outdoor displays in Louisville? Time will tell.

One thing that worked was the close proximity of the exhibits to the sessions. A quick escalator ride brought attendees to whichever. A quick look over the railing from the walkway going by the session rooms could even be used to locate colleagues.

Enough about the exhibits, how about the sessions? I heard more than one comment that the sessions seemed a bit "lightweight" in comparison to years past. It seems redundant to say that teamwork shortened our project time and saved us money. But I heard it over and over again. Others said that most of the information presented was already available elsewhere, or had been previously presented elsewhere. When I asked one presenter if I should attend his, or another that was in conflict, he remarked that he would like to go with me to the other! One presentation that I had planned to take in was cancelled entirely!

Having done presentations such as these myself, I can attest to the difficulty of doing something that becomes worthwhile to those in attendance. It is easy to simply decide that "something is good enough", but there is a danger here for AREMA. In the end, there absolutely HAS to be value in these sessions and presentations, or our bosses will make it even more difficult for us to justify going. That does neither AREMA nor individuals any good. Simply filling timeslots in an ambitious session schedule will not do at all.

Was the AREMA 2008 Annual Conference worthwhile? Yes, of course! I did, and others I know of, made the event a place where problems could be solved and efforts could be smoothed.

See you in Chicago in September 2009!

Short Lines, not as long but just as wide: Chatsworth and AREMA

2008-09-18T15:22:00.004-05:00

Mass Transit Magazine has a very good review of the investigation of the Metrolink disaster up until now. What is the reaction of the politicians? As noted by Railway Age, it is pretty predictable, especially in an election year. I remember Will Rogers once saying that all a politician has to do is "Point with pride and view with alarm". More important, as the investigation goes forward, everyone learns not to jump to conclusions. Hopefully, the media is learning that, but probably not.

The Annual American Railway Engineering and Maintenance Association Conference is happening next week in Salt Lake City.

Rip will be there, of course! I have marked a session on the New Mexico Rail Runner Project, Flange Bearing Technology, and some new technology involving Track Substructure Characterization Using Ground Penetrating Radar as those I want to attend.

Hedge Funds have been rightfully pounded lately. Here are more blows. Last week, before it was known whether Hedge Fund reps would be seated on CSX's Board, the railroad's common stock closed at 61.61. Once speculation occurred that all four Hedge Fund reps would have to be seated according to Court Order, the railroad's common was all the way down to 50.60 before rebounding to 56.65 in today's rally. Doesn't look like investors like those Hedge Fund guys.

Looking for an interesting read? Check out "The Men Who Loved Trains" by Rush Loving, Jr. It cronicles the fall and rise of northeastern railroads from the mid fifties until the present, discussing the personalities, decisions, and directions of the PRR, NYC, Penn Central, Amtrak, Conrail, CSX, and Norfolk Southern as routes were cut up and handed out. One of the basic messages of the book is that the Penn Central was the Enron of its day, and if the government had held firm on its promise to control such abuse, events such as Enron and Worldcom would have never happened. My favorite part is a quote that distills the opinions of many concerning the accounting profession, to wit: “Despite the profession’s protestations that it ensures accuracy, accounting can be notoriously subjective, and one can make a logical case for two opposite treatments of the same business transaction.” Beautiful!

Metrolink Disaster

2008-09-15T10:57:00.004-05:00

This morning, our thoughts and prayers are with all of the employees and patrons, and their families, who have been devastated by the head-on collision near Chatsworth involving Metrolink.

Links to various news items will not be posted here, for two reasons. First, you have already read at least one, depending on the depth of your personal interest. And second, the media is doing its usual "jumping to conclusions" with certain aspects of the story, and Rip will not be an accomplice to the spreading of stories that may or may not be true.

Having been a part of the management team of a Class One, and having been involved with the media as they investigate a rail disaster, I understand fully why the usual line, "It is still too early to say what caused this disaster; our investigation is still underway and ongoing, and still inconclusive at this time" is used by the railroad's media contact. My experience is that the media rarely comes back for the facts after reporting the initial sensationalism. However, I do believe that in this particular case, a better job in reporting will ultimately happen. Until then, patience is a virtue.

No investigation or reporting will ease the pain of those who have lost so much in this disaster, as evidenced by the emotion of Metrolink's spokesperson. Once again, let's keep them all in thought and prayer.

Short Lines, not as long but just as wide: A New Riptrack Item

2008-08-27T17:12:00.003-05:00

New ideas are good! New ideas can be good. I hope this is one of them. From time to time, there are "one liners" that occur in the railroad industry that don't warrant a full page effort, but are important nonetheless. With that in mind, "Short Lines" here at Riptrack is born.

Some of these items might be nothing more than a simple thought that is derived from an arbitrary, electrical verbage syntax that had occurred in my brain. So here goes:

Can someone please come up with a better one of these?

This is the weak link in everyone's railroad. Figure out a better one and you will never work another day in your life.

Arcady asked what my opinion was concerning the California High Speed Rail Initiative. It should be no surprise that Rip is strongly in favor. California is one of at least three locations where High Speed Rail has been discussed. In Texas, the idea of linking DFW with Houston and San Antonio looked like a distinct possibility. Florida also looked at Miami to Orlando to Tampa, if memory serves. High Speed Passenger Rail will be much like Light Rail, insofar as once the first demo is built, the question moves from "why" to "when are we getting ours?" California is a logical first place because, based on the Amtrak success story there, it will be a success.

Ridership is still going up, not only at DART/TRE but also Amtrak. There are many more examples. The downside is that some Agencies are having to choose between service cuts or fare increases. Here is what Sacramento RT is doing.

We Need More Trains!

2008-08-15T16:34:00.006-05:00

No argument here. In fact, no argument almost anywhere. I gave up posting links to stories about whose ridership is up. Throw a dart into a USA wallmap. No matter where the dart hits, there is a train nearby with a healthy ridership increase. And, that includes Amtrak.

Agreed, then. We all want alot more of this.

And, let's be clear. We are talking all rail passenger transportation. Light Rail, Heavy Rail, Subways, High-Speed Rail. We are not limiting ourselves to Amtrak in general or Amtrak California in particular, at least as shown above.

Can we do it? Can we build it, knowing that if we build it, they WILL come. Can we build it is the real " . . . is the train on time . . ." question. In order to build the infrastructure needed for these trains that we all dream about, it will take rail, ties, turnouts, ballast, not to mention the right-of-way to build on.

Let's not even address the issue of rolling stock just yet. The thing to remember is, if we did have the track to operate more trains, we might not be able to get the train itself to run on our track! But that's another issue. We're just talking track, here.

OK. To build the track, we need material, the aforementioned rail, ties, turnouts, etc. Could we get the material? In general, the answer is, probably not as fast as we would like. In fact, it will probably be much longer than we would like. Especially if the politicos all of a sudden turn on a financial faucet. Everybody would be ordering the same stuff for their new track.

If you have ordered track material lately, you know what the supply situation is. Planning is key. Delay is expensive, and that is not just because of higher and higher steel prices.

It is a cliche to note that corporations cannot see beyond the current quarter, and that long range planning involves something for the next fiscal year. Government funding has become the same. Financial incentives for rail passenger transportation are non-existent at the worst and a low priority at best.

When gasoline is priced at $4.25 a gallon, every elected rep jumps on the "we need more trains" express. But, isn't amazing that as the price per barrel drops, and the price at the pump begins its lazy price retreat along side, the whole political system easily forgets how rail could help the situation. High gas prices and the resulting grand discussions of building some track takes a backseat to the latest international crisis.

What to do? Somehow, we need to solve the capital problem. We need to make those with the capital understand that it is good to think beyond the current oil price gouge. Sure, there is Light Rail money available, but we need more. And, we need more for Amtrak. More than that, material suppliers need to know that there will be justification to come up with an ability to produce that can meet the demand that will surely come in the future. In other words, we will be walking down the expensive oil road again, and we need to do a better job of preparation.

Track material suppliers will, repeat will, increase their ability to produce material if the market is there. And, right now it isn't. Supply meets demand, and today they are meeting right in the middle. Or on the edge, if you prefer.

Need an example? How about Salt Lake City!

UTA started with a small Light Rail Line. They did not stop. Now, their Light Rail is being built all over town. And, it will soon connect with commuter rail from Ogden to Provo! Those people will have some options the next time gas hits $4.00 per gallon! Think of Portland, Oregon. Sacramento and San Diego California. People in these towns are learning what people in New York, Boston, DC, Philly, and Chicago already know.

Rail Passenger Transportation works. Let's get together to make it work more.

Ridership Still Going Up!

2008-07-24T11:04:00.004-05:00

Rip has discussed this earlier. Even so, the riders just keep on coming, especially in the Dallas-Fort Worth Metroplex. Here's the story according to Railway Age.

True enough that Rip has been less than kind to DART in the past, their ridership is a success story.

Their relationship with Trinity Rail Express is symbiotic, to be sure. So, not surprisingly TRE is experiencing growth as well. One contributing factor is the ridiculously low fare to transfer from one to the other. Metroplex residents are clearly taking advantage!

On another note, a forum in Flyertalk mentions how Amtrak's Acela is doing quite well, too. The forum specifically addresses the Boston to New York portion of the run, a segment that has been criticized for being slower than planned. But, the point is that it is all good news.

It is clear that the traveling public is embracing rail transportation. The question we all hear more and more now, can the rail industry respond by updating old facilities and building new infrastucture? Good question! We'll talk more later!

Isn't It Time for This Year's Rippers?

2008-07-23T12:01:00.004-05:00

Yes, but . . . . .

When the idea for the Rippers came about, it seemed logical to mention in an on-line format both the good and the bad of the Transit Agency Community. The goal was noble enough, maybe some positive and negative reaction would benefit all of us. Sort of a "rising tide lifts all boats" way of thinking.

I was also aware that you had your nominees for these awards, as did I. The problem is, I never heard about yours! Except on one or two occasions.

Not only that, but lately it seems that the quality common denominator of Construction Documents from almost all of these Transit Agencies is going down rather than up. These dastardly downward cosmic forces are clearly more powerful than a simple blog-created award.

Therefore, the Ripper, as the coveted award it was, is going away. That doesn't mean that comments directed toward transit agencies, whether nasty or supportive, are going away. It just means that they will be more informal, and done on a more frequent basis than annually.

Just to set the record straight, here is a "Ripper" . . .

. . . from Rutt's Hut in Clifton, New Jersey!

Long may these Rippers be served!

A Long Island Scrap Drive Success Story

2008-07-16T17:47:00.002-05:00

Progressive Railroading notes the financial success of picking up the scrap steel that litters the Right-of-Way. How many times have track workers said that getting the scrap rights to a railroad would be lucrative?

Good on ya, LIRR!

A Riptrack "Tip-of-the-Hat" to . . .

2008-07-09T11:50:00.003-05:00

. . . all the workers who are putting the railroad back in order after the flooding. Progressive Railroading has an update to a story that has flown under the radar of the MSM.

If this photo courtesy of Drudge from Missouri is typical,

alot of long and tiring work was and is required. Thanks again to all involved.

FRA Safety Concerns

2008-07-08T10:34:00.002-05:00

A quick note that the National Railroad Construction and Maintenance Association (NRC) has a link to a letter from Federal Railway Administration's Joe Boardman concerning railway worker protection. You can get to it here.

Basically, the FRA is concerned about the increase in worker deaths over the past few years, and is stepping up inspections and will "issue violations where conditions warrant".

Safety is always of prime importance when working on or around the railroad. Anything that can help protect track workers, whether Railroad employees or Contract employees, is good. The potential that the FRA for a positive impact here is up for discussion, but now that the Safety Issue is on their radar, those who actually can make a positive impact must now do so.

You Probably Already Realize That . . . . .

2008-06-04T16:50:00.004-05:00

Rail ridership is way up, WAY up, due to fuel price increases. You may not realize how much higher it is, because for what ever reason, the MSM has not covered that story.

Here are some examples, according to a story from Mass Transit Magazine: Light Rail ridership in Baltimore is up 17%. Subway ridership in Boston is up 9%. The West Coast provides impressive numbers, too, with Seattle Commuter Rail ridership up 28%! More detail is in the article.

All four trains in this photo of CTA's Chicago Loop are probably full, too!

Progressive Railroading reports similar information, with South Florida Commuter Rail ridership up over 22%. Railway Age/Railway Track and Structures has an article with more figures, too.

Amtrak is doing well, too. An article from the Palm Beach Post details some of the thinking of new customers, and speaks to the good and bad for Amtrak's operation nationwide.

Amtrak is also more easily available to residents of many smaller towns in the USA, allowing them to avoid not only high gas prices but also the increasingly complex labyrinth associated with airline travel. Bottom line, the reasons are many to invest in all forms of rail passenger service.

The problem is that it takes time to get not only the facilities but also the rolling stock in place. Say that the price of fuel drops in the next few weeks or months. Suddenly, commuters will go back to their less fuel efficient ways. The result is that funding for rail passengers, which is so dependent on politics, seems less important. This country cannot afford to be that short sighted.

Rail Passenger service is not the only answer, but it is a mighty good one. Hopefully, those who control the money agree now, for the benefit of all of us no matter what price fluctuations occur.

Future Looks Good! How About the Present?

2008-05-30T16:11:00.004-05:00

Matt Rose, Grand Pharoah of the BNSF Railway, was quoted today in an interesting Associated Press article that ran pretty much nationwide concerning the future of railroads. Long story short, he predicts major gridlock in the not-so distant future. This is news, because there are still many who cannot get their arms around the fact that the Railroad Industry is a growth industry today, unlike the paradigm of the 1950's thru the 1980's. These people are not as enlightened as Warren Buffett and Jim Cramer, who do understand exactly what Mr. Rose is discussing here.

"It's getting busy out here!"

Question is, does Railroad Management understand what such growth means? Moreover, do the bankers and major investors understand as well? How will all of them grasp the interface of the intense Capital Expenditure required to simply maintain the railroad with the major Capital for expansion that will be needed?

Frankly, I don't think the message is understood by these folks. If it was, properties like Matt Rose's BNSF would not have cut Capital Expenditures for '08. Now that Mr. Rose is spearheading the case for the money needed to increase rail capacity so that rail gridlock can be avoided, let's see if he can be as effective in convincing the beancounters to spend some money now rather than tomorrow. I can guarantee that the total expenditure is going to be less.

The Last Spike

2008-05-22T11:29:00.004-05:00

This month marks the 139th Anniversary of the driving of the "Last Spike" at Promontory Summit, Utah. Many people today easily acknowledge the significance of the occasion so many years ago, but have not updated their perception of railroad track construction as performed today.

In order to correct that, I offer two photos that demonstrate the hugh difference between "then" and "now".

As it once was:

And, as it is now
(courtesy Harsco Track):

If required, please update your paradigms accordingly!

Steel Is Not a Steal

2008-04-24T15:54:00.004-05:00

It looks like rail. If you hit it with a hammer, it would sound like rail. If it got up and walked, it would walk like rail. And, if it could speak, it would even talk like rail!
But today, what looks like rail is acting more like gold! Why? Steel is becoming much more expensive, and the increases are coming faster than a speeding TGV!

Doesn't take a railroad expert to know that steel is a HUGH component of the business. In spite of that, the paradigm is that steel, in all of its forms, is always there, and will be there at a reasonable price. That paradigm is gone, maybe for a good, long time. Recent steel price increases are significantly affecting the way things will be done.

Steel suppliers have raised prices twice in the past four weeks. They promise to raise prices again before another four weeks have past. Suppliers who provided material with a guaranteed price for three months are now guaranteeing a price for no more than fifteen days!

Steel components in trackwork, that area that interests Rip, are significant. Rails, spikes, bolts, tieplates, anchors, all have gone up in price as a result. No one is waiting for their old inventory to be depleted, either. It's like the price of gasoline going up when the price of crude goes up, even though the gas in the neighborhood station's tanks were there the day before. But something interesting is happening above and beyond all that we acknowledge to be true.

Certain end users, notably Agencies and Contractors, are now forced to accept prices much, much more quickly than the time frame that they have known in the past. No more playing the "your cost is too high, we are going to the competition" game. Suppliers are telling customers, "If you don't take this price within days, the next price will be much higher!" Suppliers know that their competitors are going to do the same thing. Pay me now, or pay me alot more later! Ah, there's a new paradigm! Let's see what changes occur over the next months and years.

Record Profits but Reduced Capital Budgets

2008-04-17T10:40:00.002-05:00

It doesn't add up! Class Ones are pulling down big bucks. Trains are pounding heavily used tracks into the ground. Must be that the railroads are spending big bucks this year for maintenance, right? Wrong!

Last Autumn, the big Class Ones announced to their track material suppliers that orders would be way down for '08 in anticipation of much lower carloadings, hence much lower profits. So, are carloadings down? Not really. At least according to this and this from Railway Age.

But profits are up! At least judging by the initial 1st quarter report from CSX. No one disagrees that this is great news! Question is, are these same Class One Railroads so inflexible that they cannot revise their Capital Programs? They seem to be able to revise them downward quickly. The smarter of them will revise upward, too, and revise them now! Why?

-Track Material Suppliers are not that busy right now. Favorable pricing can happen. Not only that, but steel prices have gone significantly higher just in the past few weeks!And, higher petroleum prices will make an impact on pricing, too. '08 will be cheaper than '09. As the auto mechanic said, "You can pay me now, or pay me later!"

-Due to some accounting hocus-pocus, Capital Costs are suddenly cheaper!

-Many lines, such as the Wyoming Coal Lines, are busier than ever. Track is getting worn down, and strong track costs less and lasts longer than worn down track.

-Class Ones can become good neighbors by hiring and rehiring, and all of their suppliers will look good, too, as they do the same. This is a new paradigm for railroads, I know, but I hold out hope that somebody, somewhere, will take advantage.

So, why won't what is an obviously good idea happen? Why did these somewhat speculative decisions happen, too? I am guessing that hedge funds and other bankers are behind it somehow. During the past thirty to forty years, it was only the railroaders themselves who had to be educated every five years or so about how capital intensive the business is. Now, maybe, hedge fund managers and bankers outside the railroad's own headquarter buildings have to be told, too.

Whatever. It needs to be done. Now. Class Ones: Review the Capital Budget, and spend some of that money now, when it will buy so much more.

My Demise Has Been Greatly Exaggerated

2007-12-12T12:41:00.000-06:00

Yep, I am still here, and even kicking! It has been quite some time now, and the only story I can tell is how things have been just this side of frantic. I have told several customers that the amount of work and the number of bids is unprecidented, at least in my memory.

The "Rippers" have obviously been delayed as well, and recently it has seemed that even the good transit agencies have descended to the lows of their "less-than-stellar" brethern. So, what seemed like the onerous task of selecting the lesser of evils for Best overcame any initiative I might have had.

I promise to at least try to do better. There has been many happenings besides big projects. Hedge Funds, for one, have made their way into our conversations. The STB has as well. I know that visits are still occurring to this site, so that is encouraging as well. My efforts will, hopefully, justify more of your visits in the future.

Thanks for your patience over these past months.

Nominees for the '07 Rippers

2007-07-05T15:12:00.000-05:00

Ah, July! Fireworks, baseball, barbeques, and, of course, the Annual Ripper Awards! Think of these awards as our own kind of Fireworks!

Some believe that a Ripper is really a particular kind of Hot Dog from Rutt's Hut in Clifton, New Jersey. That maybe true, but what we are talking about here is Riptrack's Annual Awards for the "Best" and "Worst" Transit and Rail Commuter Agencies. Awards are generally limited to the United States.

In 2005, Rippers for Best Agency went to Caltrain, Denver RTD, Southern California Regional Railway Authority (Metrolink), Trinity Rail Express, and the Utah Transit Authority. In '06, Caltrain, Denver RTD, Metrolink, and Trinity Rail Express repeated, but the UTA dropped out in favor of the Port Authority Trans Hudson.

The less-desired Worst Awards went to MARTA in Atlanta, North San Diego County, VTA in Santa Clara County, St. Louis Metro, and WMATA in the District of Columbia in 2005, with Dallas Area Rapid Transit and Tren Urbano replacing St. Louis Metro and VTA in '06.

Who will it be in '07? Let your voice be heard! Simply leave your comments below, and they will be considered in the final, completely arbitrary and non-binding final awards.

DM & E Goes After Private Equity

2007-06-26T16:41:00.000-05:00

The fact that I have not posted has not meant that there is no news of interest to report. For example, there is an item about the continued efforts to force the Class One Rails to scrap their Fuel Surcharges.

But the item of interest that has caught the attention of many, both on the line haul side and on the supply side, is that the Dakota, Minnesota and Eastern is not taking the Federal Railroad Administration's rejection of their Loan Application lying down. In a proactive move, the DM&E is going after private financing. This is a move that is no surprise; even Rip figured it would happen, too.

Several had speculated that the Canadian National would be interested in making access to the Powder River Basin a "Three Railroad" affair. But two other rail players have also allegedly asked to add their ante-up into the game as well. One, the Canadian Pacific, is not that big of a surprise. The other, an unnamed Short Line Operator, is a surprise.

Both the CN and the CP have connections with the DM&E at Minneapolis/St. Paul. Both carriers, on the surface at least, would love access to the Coal-rich Wyoming Mines. Add to that the support of several Electric Utilities who feel that the BNSF/UPRR duopoly needs some competition, and support for lending money for DM&E's access into Wyoming looks alot stronger.

But it is hard to see through the applications of the "Venture Capitalists" as to who really is willing to lend the money.

Sometimes, it just looks easier to build than it really is!

Even the BNSF and UPRR could be hoping for construction of the line, in a clandestine way of course. Why? If the cost of the loan becomes such a burden to the DM&E that liquidation at pennies on the dollar of the new line becomes necessary, either carrier would be only too happy to get in line to pick up the pieces.

But the best part is that, for once, private enterprise would be able to thumb their nose at the Feds. For that reason alone, many hope that the DM&E is successful.

Memorial Day 2007

2007-05-28T09:25:00.000-05:00

During the predawn hours, when the human mind hangs in that zone that is not quite dream, not quite fully aware, new thoughts often emerge. Before I fully awoke this Memorial Day morning, my new thought was that I need to acknowledge the debt that I owe not only to those who have died in military service to the USA, but also those who were wounded during their service. Their struggle may still continue after the military conflict, and their contributions and outlook on life certainly do, too.

Often, their wisdom, outlook, and experience is so profound that I can only pause quietly, and wordlessly realize how little I can identify with the price that has been paid. And, I realize once again how grateful I am to all of these Veterans, not only dead but also alive.

Two years ago, I recognized a High School friend, Garland. Today, my predawn mind led me to recall Ray. Ray is the son of a man who owned a business in the same town that my Father also owned a business. Ray went to Nam. I did not. Ray took a bullet in the hip, and I did not. Yes, at times I do wrestle with "survivor Syndrome" even though Ray did return to the USA.

I was, happily, Ray's Best Man. He and his bride were deeply in love, but unfortunately, it wasn't soon after the wedding that we drifted apart. So now, it has been something like thirty years that I have spoken with Ray. I have decided to do something about that, and to let Ray know that I am thankful for what he did. I don't think I really was able to do that in person, while I was a Twenty-something young man who did not know how to express those innermost feelings. It is time.

Yes, we have Veterans Day in November. Then, we thank them all. But that does not mean we have to limit Memorial Day to those who gave everything, their very lives. I have wrestled with that, too, but I am not letting that stop me from expanding my personal expression of gratitude. So, Ray, get ready! I'm going to be looking for you, and I am looking forward to catching up.