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| MAY 1, 1998 |
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EASTERN RAILROAD NEWS
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GUILFORD TO ACQUIRE PAN AM WORLD AIRWAYS
Pan American World Airways today announced that it has executed a letter of agreement with Guilford Transportation Industries which, if approved by the U.S. Bankruptcy Court, would form the foundation for the carrier's reorganization plan which will be filed by May 20 and set for confirmation hearing in the summer.
Under terms of the transaction, Guilford will acquire certain portions of Pan Am's airline related assets. These include two Boeings 727's-200 aircraft, one Boeing 737-200 aircraft, spare parts, maintenance and operating manuals and grounds support equipment.
In addition, Guilford will acquire all of Pan Am's route authorities and rights, Pan Am's 30 percent interest in the Pan Am Air Bridge, its US regulatory certificates and all trade marks, logos and intellectual property relating to the Pan Am name. Pan Am will receive in excess of $23.5 million in cash for these assets, a portion of which will be paid to NationsBank, the largest secured creditor.
After the purchase of the assets, the new company will be capitalized with $5.0 million of new working capital under the plan of reorganization. Some of the consideration to be received by Pan Am will be used to satisfy priority and administrative claims against the Pan Am estates as well as provide some distribution to unsecured creditors.
``Guilford's proposed
investment in Pan Am will allow an American icon to remain aloft serving
the traveling public thus preserving jobs,'' said David A. Banmiller, Pan
Am's president and chief executive officer. ``With
their solid record of
success in the rail freight industry and significant access to capital,
Pan Am will now be able to stabilize and then begin, methodically expand,''
he added.
Commenting on the agreement, Guilford President Dave Fink said: ``We welcome the opportunity to be associated with the name Pan Am. It's an airline with a long history of innovation and a name that has instant recognition throughout the world. We look forward to bringing stability to the airline and building its new future.'' -Guilford Transportation
- better, more reliable single-line service as a result of balanced competition throughout the East;
- new single-line rail access and competitive choices for New York freight customers to the South and Midwest;
- improved connections for New York ports to inland origins and destinations; and
- reduced transit times between New York and the Mississippi River gateways to Western railroads by at least one day for most freight shipments.
IMPLEMENTATION UPDATE
New York Businesses, Organizations Announce Support: A group of leading New York companies announced on April 27 their support for the proposed joint acquisition of Conrail by Norfolk Southern and CSX, praising the improved service and expanded market reach the deal will bring to shippers and suppliers throughout the state.
The 37 New York companies and organizations are all members of Transportation Advocates for Competition (TRAC), a coalition of more than 700 local, state and national associations, transportation organizations, shippers, suppliers and other entities that are supporting the division of Conrail.
"TRAC members in New York and throughout the country support this acquisition because they know that it serves the public interest," said Joel Malina, executive director of TRAC. "It will bring balanced rail competition throughout the East and provide significant benefits for New York shippers, consumers, and communities."
All of the New York companies
that have joined TRAC rely on rail service to ship their supplies and products
to customers. They listed a number of reasons for their support of the
proposed acquisition, including:
The Next Step
Implementation Countdown
34
days until STB hears oral arguments, June 4, 1998
38
days until STB votes on application, June 8, 1998
83
days until STB publishes its written decision, July 23, 1998
113
days until the effective date of the STB decision and the Control Date,
Aug. 22, 1998
123
days until "Day 1," the hypothetical Closing Date for NS planning purposes,
Sept. 1, 1998
Notable
Norfolk Southern and
CSX announced on April 23 the appointment of two current Conrail employees
who
will fill key managerial
positions at the future Conrail, if the companies' transaction to operate
Conrail is
approved by the Surface
Transportation Board.
The companies said John
A. McKelvey would be named to the position of senior vice president -
Finance and Administration,
and Cheryl A. Cook would be vice president - Law and Resource Planning.
McKelvey joined Conrail
in 1978 and served in various positions of increasing responsibility and
was vice
president over several
areas. He has a master's degree from Temple University and a bachelor's
degree
from Pennsylvania State
University.
Cook, a 15-year Conrail
employee, is general counsel - Securities and Tax. She has a law degree
from
Villanova School of Law
and a bachelor's degree from Pennsylvania State University. She is nearing
completion of a master's
degree from The Wharton School, University of Pennsylvania.
Quotable
"We are enthusiastic
about the prospects created by the Conrail acquisition for moving more
of our
business by rail. The
efficiencies and new, single-line service offered from many origins should
allow us to
reduce our reliance on
trucking and lower our costs." -- Sherie St. Pierre, operations manager,
K.C.
Refrigeration Transport
Co., Inc., Troy, N.Y., and TRAC member.
Conrail Heritage
"Plums delivered nuts
safely" was the all-is-well message sent by Col. Thomas A. Scott, vice
president of
the Pennsylvania Railroad,
a Conrail predecessor, when U.S. President-elect Abraham Lincoln arrived
safely in Washington,
D.C., the morning of February 23, 1861 for his inauguration.
Lincoln was traveling
by rail on the Philadelphia, Wilmington & Baltimore Railroad, another
Conrail
predecessor, from Harrisburg,
Pa., on the night of Feb. 22. After rumors of an assassination attempt,
Scott
was part of an elaborate
plan to safely transport Lincoln to the capitol. Officials reorganized
Lincoln's travel
plans, secretly transporting
him in a special train consisting of one baggage car and one passenger
car.
On February 22, Col. Scott
stood watch, ensuring the transport remained a secret by breaking all
telegraphic communication
southward from Harrisburg from 6 p.m. to 6 a.m. the following day. When
Lincoln arrived safely
in Washington on Feb. 23, Scott personally delivered the message and relieved
the
strain Mrs. Lincoln and
the presidential party had been under during the long and anxious February
night. -Norfolk Southern
- MBTA
TRAINS RETURN TO NEWBURYPORT
The reconstructed MBTA Commuter Rail line from Ipswich to Newburyport had it's first run of today, a work train delivering rail. Originating in Somerville at 05:30, engine 904 pushed five side-dump cars (four loaded with rail for the lay-over yard, and one with other track material) and ex-CP caboose #434616 up to Ipswich, where the barrier and wheelstops were removed. The consist then proceeded east at restricted speed, stoppong at all public crossings to flag the move. Once at Newpuryport, the caboose was set off, and the cars were set near the future lay-over yard, just west of the Rt. 1 overpass. The engine and caboose then returned to Boston. The side-dump cars will be picked up next week. The crew was the regular work train crew. Also in attendance were MBTA employees and others.
The newly-rebuilt rail line is single track, and is expected to be ready for service next winter. There is double track from New Boston Rd. to Newburyport. Stations with high platforms are located at Rowley and Newburyport. Signal masts are erected for interlocking signals at Newburyport and New Boston Rd., and automatic signals along the way. Grade crossing signals (mostly gates as well as lights) are set but not yet in service. AST is the contractor putting in the signals. -Brian Dame
AMENDMENT TO AMALGAMATION
Canadian Pacific
Railway (CPR) announced today an amendment of its proposal in connection
with the proposed amalgamation of its eastern Canadian subsidiaries Ontario
and Quebec Railway Company (O&Q),
Toronto, Grey and Bruce
Railway Company and St. Lawrence & Hudson Railway Company. The
company has increased the consideration for holders of O&Q shares to
$800 per share from the previously-announced $650 per share. Each O&Q
shareholder can elect to receive payment either in cash or in common shares
of Canadian Pacific Limited having an equivalent value.
CPR also announced that it has entered into an agreement with a holder of 1,131 O&Q shares, pursuant to which that shareholder has agreed to vote in favour of the proposed amalgamation.-Canadian Pacific Railway
CPR INTRODUCES ON-LINE SHOPPING
The store, called Station 29 Collectibles, is located on CPR's Internet home page (http://www.cpr.ca/Station29/index.html). Browsers can window shop or buy on-line from Station 29 using its convenient click-and-order features for selecting merchandise and creating an instant invoice, complete with a retail tax application that recognizes the buyer's location and applies the appropriate provincial rate.
``Electronic commerce via the Web is a fast-growing part of our business,'' said Chris Wendlandt, vice-president, Communications & Public Affairs. ``The CPR Web store adds a new retail feature to the many convenient business features of our Internet site. Shoppers in Tokyo, Paris or Peoria can browse our shelves as easily as shoppers in Calgary, Vancouver or Montreal.''
On a typical day, more than 34,000 people drop by the CPR Web site, and the number is growing quickly. They spend on average almost nine minutes browsing the site, including Station 29. For easy shopping, the retail merchandise in Station 29 is displayed in four store sections: collectibles, photos, posters and videos.
Collectibles feature a variety of goods that carry CPR's beaver-and-shield logo, launched in September 1997, including golf, tee and sweat shirts, caps, mugs, pens, key chains, playing cards and sports bags. In addition, Collectibles offers reproductions of Montreal artist Suzanne Duranceau's ``Transcontinental Landscape'', a steam locomotive and bridge scene in pencil, commissioned by the Royal Canadian Mint for the 1996 22-karat gold coin.
In the photo section, shoppers can choose from a selection of railway operating scenes, including unit coal and intermodal trains, a spectacular railway viaduct scene, the restored Steam Locomotive No.29, built in 1887 and now serving as CPR's corporate headquarters landmark in Calgary, as well as scenes from repair shops. The poster section offers reproductions of poster advertisements from the 1880s. It includes a reproduction of the first long-distance travel poster, issued by CPR in 1883, and a silk-screen reproduction of an advertisement enticing settlers to Winnipeg and Manitoba's ``boundless wheatfields''. In the video section, ``Beaver Tracks'' offers a historical tour of CPR's beaver logo.
Clicking on any item in the list of merchandise brings up an image of it, a description and the price. Clicking on a ``buy'' button puts the item in an electronic shopping cart. To get to the cash register, click on ``checkout'' and the invoice is automatically created.
In addition to electronic shopping, CPR has a Station 29 kiosk on the second floor of Calgary's Gulf Canada Square, where the railway's headquarters is located.
``We intend to continue expanding our line of products and will be introducing several new CPR items later this spring,'' said Mr. Wendlandt. -Canadian Pacific Railway
SD70MAC TRACK
| 4130 | Selkirk, NY | 4/30/98 | 22:29 ET | NFSE-0 |
| 4131 | Selkirk, NY | 4/30/98 | 22:29 ET | NFSE-0 |
| 4132 | CP-8, OH | 5/1/98 | 03:36 CT | INTO-0 |
| 4133 | CP-8, OH | 5/1/98 | 03:36 CT | INTO-0 |
| 4134 | CP-218, NY | 5/1/98 | 06:40 ET | TOMT-0 |
| 4135 | CP-218, NY | 5/1/98 | 06:40 ET | TOMT-0 |
| 4136 | Cleveland, OH | 4/30/98 | 18:35 CT | SFSE-9 |
| 4137 | Cleveland, OH | 4/30/98 | 18:35 CT | SFSE-9 |
- BEL-DEL
CORRECT ENGINES ON DIRT TRAIN
The Bel-Del dirt train was reported to have two "ex-Vermont" GP9's in yesterdays news story. The units are actually from the Green Mountain Railroad and are "from" Vermont. Green Mountain GP9's 1848 (ex-Bangor & Aroostook 76) and 1849 (ex-BN 1849; nee-Northern Pacific 223) were acquired by Bel-Del to help in the dirt train service. -David Baer, Kevin Burkholder
BALLAST FOR AMTRAK
The Amtrak ballast trains were to have started up on Sunday April 26 with the delivery of the two WC GP-type units and the remaining F40PHs to Amtrak at Chicago. The first set of empties was to come to the WC on Monday night for movement to Mosinee for loading. Amtrak will keep the WC units for six months on lease for this project. Amtrak will be running about 9-10 of these ballast trains this season. They will be interchanged to Amtrak at 14th. St. Chicago and this ballast is being used for the High Speed Rail project in Michigan.
Amtrak is looking at cycling thses trains about every three weeks. The leased WC power will stay with these trains.-Ray Weart
- EXCURSIONS
DELMARVA SPECIAL TO RUN TO
SALISBURY, MD; POCOMOKE CITY LEG CANCELLED
()
The Washington DC Chapter, National Railway Historical Society announces a revised schedule and route for their Amtrak excursion train, the Delmarva Special set for May 2, 1998. Due to conditions beyond the control of the Chapter, the portion of the excursion between Salisbury and Pocomoke City, Maryland will not be operated.
On Friday, April 24, 1998, Amtrak, the primary carrier of the trip, advised the Chapter that Conrail had determined that no passenger trains would be permitted to operate on its Delmarva Secondary between Salisbury and Pocomoke City. A recent inspection of that portion of the line, has found track conditions unsuitable for passenger train operations.
Still operating as planned
will be the major portion of the excursion originating in Washington, D.C.
and traveling from Newark, Delaware to Salisbury, Maryland over Conrail's
Delmarva Secondary. This will allow
most of the freight only
line to be covered. During the layover, many interesting activities
including arts, crafts, antique and sports cars, carnival rides food and
entertainment will be available in downtown Salisbury as well at the annual
Dogwood Festival. Downtown merchants will be offering special discounts
to Delmarva Special passengers; free shuttle busses will also be available
to take excursion passengers to the Ward Museum of Wildfowl Art and the
Salisbury Zoo.
The revised schedule for
the Delmarva Special is:
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Coach tickets from Washington/Baltimore to Salisbury are still available through the local outlets-- Arlington Hobby Crafters in Falls Church, Virginia; Pastimes in Gaithersburg, Maryland; and Burrett Hobbies in College Park, Maryland. Tickets may also be purchased on the day of the excursion aboard the train. Round trip coach fares from Washington/Baltimore to Salisbury are $69 for adults and $49 for children (ages 2-15). For more information, please visit the Chapter's web site at http://www.dcnrhs.org, send an e-mail to dcnrhs@us.net or call the Chapter at 703-273-8440.
Passengers currently holding
tickets for the cancelled Salisbury -- Pocomoke City portion of the trip
have been mailed information regarding refunds and will be issued refunds
for that portion of the trip within ten
working days. -updated
information from Steve Barry
BIRMINGHAM/NASHVILLE EXCURSIONS
An excursion will be operated on May 16 and 17 between Birmingham, AL and Nashville, TN. Train will consist of 11 Amtrak Superliner cars - 2 diners, 2 lounges, 6 coaches and 1 transition crew dorm (not open to public). The special will operate over CSX and Nashville & Eastern Railways.
Food Service will feature soft drinks, coffee, sandwiches, snacks and breakfast items such as biscuits. Lunch is on your own in Nashville with an optional boxed dinner which can be purchased with tickets for $6.00.
All tickets are priced at $95.00.
| Saturday May 16,1998 | ||
| Birmingham | DP | 07:00 ET |
| Decatur | DP | 08:30 ET |
| Nashville | AR | 12:00 ET |
| Sunday May 17, 1998 | ||
| Nashville | DP | 15:00 ET |
| Decatur | DP | 18:30 ET |
| Birmingham | AR | 20:00 ET |
| Birmingham departure and arrival is from the Amtrak Station. | ||
| Decatur departure and arrival is at the Decatur Union Station. | ||
| Nashville departure and arrival is at the Broadway Diner Train Station. |
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