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MAINTENANCE BLITZ

Amtrak has begun their Harrisburg Line maintenance blitz to replace 975,000 ties and resurface much of the line.  In order to keep operations fluid, Amtrak has placed a Temporary Block Station at Elizabethtown, PA.  The operator's on duty here are "hooping" orders to all traffic operating through the work area.  There will also be a TBS open at Lehman Place during the line maintenance. -Kevin Burkholder

AEM-7'S TO RETURN?

Sources at Amtrak have indicated that this may be the last full year for diesel motive power on the Keystone Corridor trains.  Beginning as early as December of 1998, AEM-7's will return to the corridor for Keystone Service only.  The Three Rivers and Pennsylvanian will continue to operate with P40/42 diesels.  The electrics' return is to be synonomous with Amtrak's acquisition of new electric power later this year.

MLW FINALE?

Several sales are pending for the remaining MLW's on the CPR Roster.  The sales are detailed as follows:

Sale No. 1:
April 1, 1998:
New Brunswick East Coast purchased eight (8) of the best CP Rail RS18m's that were at Cote St. Luc. *Possible numbers* include 1822, 1834, 1837, 1838, 1841, 1842

Sale No. 2:
April 11, 1998:

• For sale 46 locomotives consisting of 25 RS18ms' of which *17* are active, *3* are stored unservicable and *5* are retired on the property.
• For sale 21 locomotives consisting of 21 C424s of which *9* are active, *5* are stored unservicable and *5* retired and on the property.
It would appear Genessee Rail-One, operator of the Huron Central and the Quebec Gatineau is the lead bidder for these locomotives.

Sale No. 3:
April 11, 1998
For sale the remaining active RS18ms, with active bidders being Genessee RailOne and the New Brunswick East Coast.

Sale No.4:
May 1, 1998:
The balance of the retired fleet of either or both models as above plus parts.

It would appear that Saturday April 11, 1998 will be the final day for MLW built Alco powered locomotives on Canadian Pacifc Railway.-Bryce Lee

UNIT PIPE ROLLS EAST

The first unit train load of pipe destined for New England operated over the weekend with Union Pacific SD60 (former CNW) 5976 and SD40-2 3464.  First train operated over the St. Lawrence & Hudson as 8-858.  The power is cycling back to the Norfolk Southern on an empty hopper train. - Mike Collins, Kevin Burkholder

ILLINOIS CENTRAL CORPORATION APPOINTS McPHERSON PRESIDENT & CEO

The Board of  Directors of Illinois Central Corporation, whose principal subsidiary is Illinois Central Railroad Company, elected John D. McPherson president, chief executive officer and director.  McPherson succeeds E. Hunter Harrison who resigned to become chief operating officer of Canadian National Railway.

McPherson, 51, had been senior vice president operations. He joined IC in 1993 following a 27-year career with the Santa Fe Railway in the areas of transportation and operations.

He holds a master of science degree from the Massachusetts Institute of Technology.

E. L. Harris, formerly IC's general manager northern region,  has been appointed vice president operations. McPherson commented, "With Ed handling day-to-day operations, I will concentrate my attention on directing our strategic course and further improving IC's excellent record as one of the safest and the most efficient of U.S. railroads." -Illinois Central

CSX APPOINTS MIKE BRIMMER REGIONAL VICE PRESIDENT

Michael F. Brimmer has been named regional vice president-state relations for the Northeast Region, announced Mark G. Aron, CSX executive vice president-law and public affairs. The appointment is effective immediately.

In his new position, Brimmer will be responsible for CSX's legislative and governmental activities in New Jersey, New York City and the Philadelphia area. He will report to Michael J. Ruehling, CSX vice president-state relations.

"Throughout his career, Mike has exhibited an ability to coordinate public policy issues and effectively integrate them with the economic needs of the private sector," Aron said. "His personal ties to the region, his public affairs background and his extensive work helping CSX prepare for the Conrail acquisition make him the ideal candidate for this new position."

A native of the New York/New Jersey area, Brimmer earned a bachelor's degree in American history and literature at Williams College and a master's degree in public affairs at Princeton University. He joined CSX in 1985 as executive assistant to John W. Snow, then president of CSX's railroad, CSX Transportation Inc. He later became assistant vice president for research and analysis focusing on public policy issues affecting the transportation industry, including energy and environmental legislation, truck competition and high-speed rail technology. Brimmer went on to serve as assistant vice president of planning for CSX Transportation, where he helped develop a strategic plan for the railroad and a performance improvement program to increase productivity and service reliability. For the past 18 months he has worked extensively on issues related to the proposed joint acquisition of Conrail by CSX and Norfolk Southern.

Prior to joining CSX, Brimmer was the deputy director of the Federal City Council, a private, non-profit organization of business and civic leaders, where he helped coordinate a variety of major public/private development initiatives, including the Metro mass transit system, National Airport policy, and the redevelopment of downtown, including the Washington Convention Center and Union Station.

CSX CHAIRMAN AND CEO JOHN SNOW WARNS OF DANGERS OF REREGULATING RAIL INDUSTRY

Attempts to alter today's stable regulatory structure threaten to reverse the dramatic improvements in rail performance the United States has enjoyed since deregulation, CSX Chairman and Chief Executive Officer John W. Snow asserts in testimony filed with the Surface Transportation Board.

"Since the enactment of the Staggers Act, we have seen an explosion of improved rail performance," Snow says. "The ton-miles of freight shipped by rail has increased 49 percent since 1980. Average rail rates, adjusted for inflation, have fallen more than 50 percent. Train accidents and derailments have declined by almost 70 percent, while fuel efficiency has risen by more than 60 percent.

"Despite this documented success, Snow warns, "Some shippers seek to wrest power from the marketplace and return it to the government. 'Competitive access' and 'open competition' are their slogans. These are really codewords for 'forced access', in which the government sets rates for rail freight service, and requires a railroad to permit its competitors to operate over its track - privately owned track, I would note, in which the owners have legitimate property interests. Despite the denials that this is just 'tinkering' and not an attempt to reregulate, make no mistake about it - this effort is a direct assault on deregulation.

"Snow's testimony was submitted to the STB in advance of a public hearing on rail access and competition April 2-3 in Washington, D.C. He will testify today as part of a panel representing the Association of American Railroads.

Mandating "open access" in the rail industry would be disastrous, Snow argues in his written testimony. "Requiring one carrier to permit others to use its facilities at a price below the owning railroad's full costs, as the advocates suggest, would deny railroads the ability to price their service as does every other American business, and prevent the railroads from recovering their investment costs. And if we can't do that, then capital will stop flowing to this industry.

"The chorus has grown quite loud, and one might think there is a groundswell of support for forced access. The opposite is true," Snow says, noting that many shippers oppose efforts to increase government regulation of the rail industry because they value the improved rail service they have experienced in recent years.

"The justifications offered in support of reregulation simply don't withstand scrutiny. We don't need slogans or thirty-second soundbites; we need sound economic analysis. Good economics tells us that it is less costly for market demands to dictate outcomes, for providers and customers to negotiate fair terms of carriage, and for railroads to be able to streamline their operations as necessary.

"Fundamental changes to the current system are not necessary," Snow says, noting that the current law delicately balances the interests of shippers in having dependable service at fair rates with the carriers' interest in earning sufficient rates of return to reinvest in their capital-intensive infrastructures. "I fully support the [STB] applying the law vigorously when appropriate to protect shipper and carrier interests, and the public. But we should not change the essential nature of the Board's functions.

"Recent service issues on the Union Pacific system are serious and have to be fixed, Snow says. "However, it is important to note that they are an aberration, and provide no basis for changing the regulatory system. We have to be very wary of changes that are portrayed as 'minor' but are significant, and changes that don't 'fix' the problem but rather make it worse.

"A continuing challenge for the rail industry is to improve customer service, Snow says. "At CSX, we have improved service and reliability, but I freely admit that we must go much further. And we will. But the free flow of capital to support these efforts must not be choked off by efforts to micromanage the industry through regulation."

CSXI CELEBRATES GROUNDBREAKING, GEARS UP FOR FIRST WAVE OF HIRING AT 59TH STREET SITE
Mayor Richard M. Daley joins CSXI and community at a rail spiking ceremony

CSX Intermodal (CSXI) announced long-term plans, including hiring, for the opening of its new 132-acre 59th Street intermodal facility at a groundbreaking ceremony that brought the facility one step closer to becoming reality for Chicago's West Englewood and Chicago Lawn neighborhoods.

Joined by Mayor Richard M. Daley and community members from the neighborhoods where the facility will be located, CSXI executives spiked a rail to mark the first phase of the site's construction. The facility is scheduled to open in September 1998.

"This facility will create more than 200 new jobs in West Englewood and Chicago Lawn and it will help local businesses get products to customers more efficiently," Mayor Daley said. "Best of all, revenue from this facility will be reinvested right back into these neighborhoods."

CSXI, a subsidiary of CSX Corporation, is developing the modern rail/truck intermodal facility on a dormant rail yard located between Western and Damen avenues, extending from 55th Street to 71st Street. The CSXI 59th Street facility will offer local businesses an efficient and cost-effective option for transporting goods; help maintain Chicago's preeminence as a transportation hub; reduce truck traffic onChicago streets and stimulate significant economic development in West Englewood/Chicago Lawn.

"The 59th Street facility is a key component of our nationwide transportation network, and we are committed to making the 59th Street facility one of the best in the nation," said Les Passa, president and chief executive officer of CSXI. "Expanding our Chicago presence by adding the 59th Street facility to our Chicago operations as part of our pending acquisition of a portion of Conrail will help CSXI meet a greater demand for our shipping services worldwide."

CSXI will invest approximately $39 million to develop the 59th Street facility, making it an anchor in the vision of industrial revitalization and community development in the West Englewood/Chicago Lawn area. During its first 10 years of operation, the CSX intermodal terminal will generate more than $160 million in new, direct and indirect state and local tax revenues and will have a cumulative economic impact of $2.2 billion in the Chicago metropolitan area.

"This facility will help us provide our customers the best in intermodal service, at the same time bringing much needed economic stimulus to this community," said Chris Durden, director of terminal development and environmental affairs for CSX Intermodal and project manager for the 59th Street facility. "We're pleased to be working with both the City of Chicago and the community in what we consider a strong public-private partnership."

Construction of the CSX intermodal facility is already underway, with the remainder of the work scheduled for this spring and summer. Building the facility will create more than 100 new construction jobs.

CSXI will begin the first wave of hiring for the 59th Street facility in May, to fill 50 new permanent positions. CSXI aims to fill half of the positions with residents from the Englewood, West Englewood and Chicago Lawn communities. The new hires will either work at 59th Street or at one of CSXI's other Chicago area facilities in Bedford Park andForest Hill. Those hired for the initial permanent terminal jobs will take part in an on-the-job training program at CSXI's Bedford Park facility.

A second wave of local staffing is planned for late summer 1998, when subcontractors for the facility begin filling between 150 and 176 new permanent jobs. These subcontractors will be retained by CSXI to operate and maintain the crane and lift equipment on-site and for moving goods from the terminal to customer locations throughout Chicago and the region via independent owner-operated trucks. The independent, owner-operated truck driver positions are suitable for local entrepreneurs desiring flexible work schedules and incomes tied to personal performance. CSXI will also encourage its independent subcontractors to employ qualified residents from  Englewood, West Englewood and Chicago Lawn.

In addition, the City of Chicago will administer a neighborhood investment fund that will pay for job training and economic development projects in Chicago Lawn and West Englewood. CSX will make annual contributions to the fund.

The Mayor's Office of Employment and Training will use a portion of this fund to ensure that neighborhood residents qualify for new jobs at the facility. The remainder of the fund will be used on economic development projects in Chicago Lawn and West Lawndale and will be administered with the input of local residents.

CSX Intermodal provides transcontinental intermodal transportation services and operates a network of dedicated intermodal facilities across North America. "Intermodal" is a method of moving goods throughout and across the country using a combination of rail, highway or waterway. Trailers and containers carrying goods across the country will be connected to trains at the 59th Street facility and loaded on rail cars before being transported to their final destination. CSXI's largest terminal operations are located in Chicago.

The facility's tracks are connected to CSX Transportation rail lines, which provide a direct connection with two other major railroads in the area -- Burlington Northern-Santa Fe and Union Pacific. Rather than transferring containers and trailers by truck to other Chicago-area intermodal facilities and then reloading them onto rail cars, the CSXI59th Street facility will allow these containers to be moved from railcar to railcar via a direct connection. This transfer of cross-town traffic from truck to rail will eliminate over 100,000 truck trips (over 3 million truck miles) per year in the City of Chicago, greatly reducing the level of traffic congestion and wear and tear on city streets and highways. -CSX Corporation

UNION PACIFIC AND NS HOST SPECIALS FOR KENTUCKY DERBY

Union Pacific is sending several business cars and a power car from Omaha, NE to Memphis, TN the week of April 27th. The train will be turned over to the NS in Memphis for further movement to Louisville for the Kentucky Derby.  More details will be posted shortly.....

PRESERVATION/EXCURSIONS

RARE MILEAGE EXCURSIONS

The Orrville Railroad Heritage Society (phone 330-683-2426) will host rare mileage excursions on April 25 and May 9.  The April 25 trip will take passengers over Wheeling & Lake Erie's former Nickle Plate route between Orrville, OH (west of Canton) and Monesson, PA.  The train departs Orrville at 07:30 ET on April 25 and the cost is $65.00 per passenger.

The ORHS also has a trip scheduled May 9th from Orrville, OH to Pittsburgh-Rook Yard over the W&LE with
a bus connection to Station Square. -Bill Von Sennet

PRR GP30 TO STRASBURG

West Shore GP30 2233 is being readied at Lewisburg, PA for shipment to the Railroad Museum of Pennsylvania at Strasburg, PA.  The unit was donated by West Shore to the museum. -Ed Brouse

URHS ACQUIRES BEDT 16

The New York Cross Harbor Railroad has conveyed the title to former Brooklyn Eastern District Terminal Saddletank 0-6-0 steam locomotive to the United Railroad Historical Society of N.J. for inclusion at the New Jersey Railroad and Transportation Heritage Center. The locomotive was constructed by Porter for the Astoria Light & Power Co. It was acquired by the BEDT in 1938. The Whippany Railway Museum and the Morristown & Erie Railway have agreed to temporarily exhibit the locomotive at Whippany, N.J.-Carl Perelman

Please check this location daily, as new information will be posted, as it becomes available. If you have news to report or information regarding railroads in the Eastern United States, please send e-mail to Kevin Burkholder at KBurkholder@psghs.edu