Railroads play coal catch-up

[TransitJohn]

Railroads play coal catch-up
By DUSTIN BLEIZEFFER
Star-Tribune energy reporter Saturday, March 18, 2006



Union Pacific employees examine deteriorating railroad ties near Orin in Converse County last year. Coal dust can accumulate on rail beds, preventing water from properly draining and causing such deterioration. Photo courtesy Union Pacific.


GILLETTE -- Consumers in Wyoming and nationwide who rely on Powder River Basin coal may have to cough up an extra $2 billion to cover their utility bills this year due to a lack of shipping capacity on railroads, according to Basin Electric Power Cooperative.

The irony that many Wyoming consumers may have to pay higher utility bills because they can't get enough Powder River Basin coal is shared among consumers and utilities alike.

However, some industry experts say Union Pacific and BNSF Railway are working feverishly to expand their Powder River Basin capacity.

"They can't make up for years of underinvestment within a single year. Now they're playing catch-up," said Richard Price, managing director of Westminster Securities Corp. in St. Louis, Mo.

Both railroads are expanding capacity on all Powder River Basin routes, according to the companies. And both have instituted aggressive hiring plans nationwide to run more trains while at the same time making up for a retiring work force.

"They're putting significant capital in rolling stock and training crews," Price said.

The problem

Railroad delivery fell 20 million tons short of commitments between Powder River Basin coal producers and the utilities they served in some 35 states in 2005. And although coal production and rail delivery are expected to reach record levels this year, rail delivery is expected to again fall short by 20 million tons.

http://www.casperstartribune.net/articles/2006/03/18/news/top_story/e24905aa635685fd872571350003afc4.txt

[wakeme2008]

1. Norfolk Southern's Coal business is doing very well

thank you....

I am currently on contract with NS in Roanoke.

A couple years ago they sold their car making area in Roanoke to a company that now is doing very well making coal cars. They currently make 15 cars a day and are adding a second shift to produce more cars.

LOL one of the other "smokers" I see outside every day always wears black. So one day I asked him what dept he is in and he said "Coal" :rofl:

The RR business is different. Corey, one of my Java programming co-worker went down to outside Atlanta to learn to drive a coo-coo train and did for around 400 yards. :scared: