Class I work force shrinks slightly as 2012 dawns

As of mid-January, the U.S. Class I workforce contracted slightly from December’s level, but remained considerably larger than the employment roster from a year ago. At 159,333 on or about Jan. 15, the workforce dipped 0.2 percent from December’s total and increased 3.9 percent compared with January 2010’s count, according to Surface Transportation Board (STB) data.

On a month-over-month basis, four employment categories slipped: maintenance-of-way and structures, down 0.5 percent to 35,328; maintenance of equipment and stores, down 0.4 percent to 29,686; transportation (train and engine), down 0.2 percent to 64,240; and professional and administrative, down 0.2 percent to 13,768. The number of transportation (other than train and engine) workers and executives, officials and staff assistants increased 0.7 percent to 6,798 and 0.4 percent to 9,513, respectively.

On a year-over-year basis, all six categories posted gains: transportation (T&E), 4.8 percent; maintenance of equipment and stores, 3.8 percent; maintenance-of-way and structures, 3.5 percent; executives, officials and staff assistants, 3.5 percent; professional and administrative, 2.4 percent; and transportation (other than T&E), 1.9 percent.

For more STB employment data as of mid-January, follow this link to download a pdf file from the agency’s website.

source:  Progressive Railroading

Last week, CGB Enterprises announced plans to build a grain rail terminal in Defiance, Ohio. The company owns and operates more than 70 grain facilities in the Midwest.

To be served by CSX Transportation, the new terminal will be designed to store more than 2 million bushels of grain and load 90 rail cars on a loop track. In addition, the facility will feature shuttle loading capabilities. Construction is slated to begin in spring and conclude in June 2013.

“This project will connect the city of Defiance to regional, national and global markets,” said Jerry Hayes, executive director of Defiance County Economic Development, in a prepared statement.

The city of Defiance, Ohio Rail Development Commission and Ohio Department of Development are providing funds for the project.

source:  Progressive Railroading

Freight-car lease rates continue to strengthen, particularly for tank cars, covered hoppers and mill gondolas related to scrap steel, according to Longbow Research’s latest survey of rail-car lessors.
Rates for 30,000-gallon tank cars (used to transport oil and ethanol) now have exceeded prior peak rates by 10 percent to 15 percent and are approaching the 23,500-gallon cars. Utilization has steadied at 96 percent, the survey shows.

However, lease rates still are below normal for coal cars due to cheap natural gas, a warm winter that has kept utilities’ stockpiles high and U.S. Environmental Protection Agency regulations, Longbow Research analysts said in a survey analysis. Although coal exports could rise in 2012, they will not offset the weakness from lighter thermal demand, the largest impact of which will fall on eastern coal, they said.

“We expect fundamentals to further deteriorate as the market for coal has continued to weaken over recent weeks. Contacts have indicated there are a good number of cars coming off lease this year, which will likely hamper lease rates and draw up the supply of available used cars for sale,” Longbow Research analysts said.

source:  Progressive Railroading