In the News…

Rail could help save bridges
A recent editorial in the Albany Democrat-Herald (Oregon) suggested that by increasing the amount of freight carried by railroads, the stress on America's roads and bridges could be lessened by decreasing the amount of heavy trucks on highways. The author, Hasso Hering, explained that "many of the bridges now considered insufficent or obsolete are only about 50 years old." While many railroad bridges are over 100 years old, they were designed to support the heavier load of steam engines. Also, railroads tend to inspect bridges more frequently and do maintenance as needed. Shifting more, and heavier, freight to railroads could help save our highway bridges.
Albany Democrat-Herald , "Rail could help save bridges" 4 August 2007.

Railroads in the Stock Market
Big-name investors, like Warren Buffet and Carl Icahn, have begun taking a greater interest in the railroad industry. Buffet's Berkshire Hathaway, Inc. recently disclosed an 11% stake in BNSF and smaller investments in Union Pacfic and Norfolk Southern. As a result of such high profile investments, railroad shares have surged more than 20% in 2007. According to the Wall Street Journal, "Some hedge funds already are pressuring railroad executives to squeeze more price increases from their customers and take on billions of dollars of debt to ramp up capital spending and buy back shares." Railroad operators argue, however, that they need to be putting all their money into improving and expanding tracks and facilites. Those within the rail industry explain that shareholders will benefit more from railroads investing in increased capacity than from spending money to buy back lots of stock.
The Wall Street Journal, "Train gains in vain? Activists bet big " 12 July 2007.

Congress approves transportation appropriation bills
In July the House and Senate appropriation committees approved the FY-2008 Transportation, Housing and Urban Development, and Related Agencies Appropriations bill. Within the House version $9.7 billion, the full amount authorized by SAFETEA-LU, was allocated for federal transit programs. The Senate version, however, provided $9.6 billion for transit, $134 million less than the level authorized under SAFETEA-LU, but still a 6.9% increase compared with FY-2007. The committee did freeze New Starts and Small Starts program dollars at $1.56 billion (the FY-2007 level). SAFETEA-LU authorized the programs to receive $1.7 billion in FY-2008.
Progressive Railroading, "House, Senate committees sign off on transportation appropriations bills" 18 July 2007.

Norfolk Southern's Cresent Corridor
Norfolk Southern recently announced its intention to build a 1,400 mile line from New Jersey to Lousiana, along Interstate 81. The corridor, called the "Cresent Corridor," would include two new intermodal terminals and expansions of several existing terminals. The new intermodal business could potentially divert more than one million truckloads off the highway, relieving I-81 congestion. The project would also involve building new track and incorporating existing lines. Norfolk Southern is seeking public partners to help finance the project, which could cost more than $2 billion. Pending financing, Norfolk Southern could begin construction in 2008 and complete the corridor in 2013.
Progressive Railroading, "NS proposes to build New Jersey-to-Louisanna Cresent Corridor " 7 June 2007.

Freight traffic down, but expected to rise
In the first half of 2007, U.S. railroads originated 8.4 million carloads and 6 million trailers and containers, down 4.1 percent and 1.3 percent, respectively, from 2006. Even though intermodal traffic is down compared to last year, U.S. railroads are expected to post the second-highest intermodal traffic ever, behind the 2006 record. Rail volumes throughout the industry are expected to increase, as economist predict economic growth in the second half of the year.
Progressive Railroading, "AAR: Freight traffic slumps in year's first half, but comeback still expected in second half " 6 July 2007.

Second track on NCRR to be restored between Greensboro and High Point
The North Carolina Department of Transportation's Rail Division and the North Carolina Railroad Company have partnered to reconstruct a second main track between Greensboro and High Point that had been removed in the 1970s. This portion of the North Carolina Railroad is one of the most congested with about fifty Norfolk Southern freight trains and six passenger trains using it daily. The second track will increase capacity and reduce congestion associated with meeting and passing trains. The project will cost $20 million and is expected to take about 18 months to complete.
WXII 12 News, "Track Restoration Work Scheduled In Guilford County" 1 May 2007.

Working on the Railroad

John Dillard is the CSX Transportation, Inc., Director of Public Affairs responsible for maintaining postiive relationships with state and local governments in North and South Carolina. He works with communities served by CSX on various issues. His position, which allows him to interact with all facets of the company and all levels of government, is particularly important during this time of growth for the railroad industry.

As part of his job, Dillard assists in coordinating efforts by the state of North Carolina and CSX to identify potential projects to improve CSX's capacity, which would improve both frieght and passenger service. Assisting with such collaboration and working closely with state and local governments on projects that are mutually beneficial is what Dillard enjoys most about his job.

Dillard knows that CSX is proud of its history in North Carolina and says that with North Carolina's growing population and progressive thinking towards transportation issues, CSX is optimistic about future opportunities in the state. He cites the expansion of CSX's exisiting intermodal terminal in Charlotte as an example of CSX's committment to exisiting and future customers in North Carolina. Dillard looks forwards to continued opportunities for growth and continued cooperation and collabortion between CSX and the state of North Carolina.

Did you know?

NASCAR, Hendrick Motorsports help share message about crossing safety

The North Carolina Railroad Company has released a Crossing Safety Public Service Announcement to remind North Carolina residents about the importance of using caution at railroad crossings. NASCAR and Hendrick Motorsports graciously donated their time and resources to assist in the production. Eydo, Inc. produced the PSA and NASCAR driver Casey Mears relayed the message about crossing safety. North Carolina Operation Lifesaver also contributed to the project.

The Public Service Announcement began airing on August 6th and will continue to be shown through the week of September 24th. The PSA can be seen on various cable channels from the Triangle to the coast, including ESPN, ESPN2, CMT, and Sci-Fi, with specfic shows to include Monday Night Football and the NASCAR Nextel and Busch Cup series programming.

Published by the North Carolina Railroad Company Volume 1, Issue 4
Comments or questions? Catherine Campbell or Kat Christian (919) 954-7601 e-mail: raillines@ncrr.com

2809 Highwoods Blvd. Suite 100
Raleigh, NC 27604