Nancy Pelosi's Jobs Plan: Shut Down Non-Union Plants in Right to Work States (Except for GE's)

House minority leader Nancy Pelosi has weighed this week in on the ongoing dispute between Boeing and the National Labor Relations Board, stating that the aircraft manufacturer's South Carolina facility should shut down if it can't unionize [video at link- NANESB!].

Interestingly, Pelosi's comments come more than two years after workers at the Charleston, SC plant voted overwhelmingly to decertifty their union.

In a move that seemingly went under the radar back in May, General Electric [NYSE: GE] announced that they were constructing a new 500,000 square foot facility to build locomotives in right-to-work Fort Worth, TX- shifting production from closed-shop Erie, PA with no apparent objection from either Congresswoman Pelosi or the NLRB.

Other venues under consideration included Lynn, MA and Mexico. With rival Caterpillar's [NYSE: CAT] subsidiary Progress Rail opening up a new facility in Indiana, GE and Local 201 of the International Union of Electrical Workers were unable to come to any sort of agreement regarding wages.

While GE's Railway unit CEO Lorenzo Simonelli disclosed that a Mexican site had been under consideration by GE they ultimately chose the Ft. Worth site for largely political reasons.

The Fort Worth choice saves Immelt from the potential embarrassment of having the facility go south of the border while he serves as chairman of President Barack Obama's Council on Jobs and Competitiveness.

The Obama Administration had previously lavished Immelt's General Electric with millions in stimulus money and 'green energy' grants while the conglomerate continued to outsource jobs overseas. Prior to January of this year, GE was also the parent company of NBC/Universal entertainment, whose networks frequently act as the Obama Administration (or Obama campaign's) unofficial mouthpiece. Earlier this year, Comcast [NASDAQ: CMCSA] gained a majority control of the NBC networks.

Since the May announcement about the Texas locomotive facility, General Electric has announced they are breaking ground on two more projects in right-to-work states.

Last month, the conglomerate announced that they will be building a $95 million 236,000 square foot facility that will make components for mining equipment- also in Ft Worth, TX.

Meanwhile, in Auburn, AL, GE is breaking ground on a new jet engine component factory this month. Like the two facilities in Fort Worth, the NLRB apparently sees no problem with Immelt's GE setting up shop in right-to-work states as they've remained conspicuously silent on the matter.

[Hat tip: Director Blue, Lonely Conservative, Eat it or Wear It]

Today's Train of Thought- The Jolly Green Giant and the Pumpkin Patch, October 31st, 2011

Today's train of though takes us back to the pumpkin patch for Haloween this year, this time in the Wolverine state.

Here, railpictures.net contributor Craig Williams caught Huron & Eastern's Durand Turn decelerating past a pumpkin patch south of Bay City, MI. The weekday train to the Norfolk Southern interchange in Durand (west of Flint) has an all GE lashup on this October 2008 afternoon. The green paint of previous owner BNSF/Burlington Northern on lead unit- C30-7 #5086- is still visible in the fading afternoon light.

Trailing #5086 is cabless B30-7AB- also purchased secondhand from Burlington Northern- has been repainted into a scarlet and grey reminiscent of the Southern Pacific and a black and white U23B trailing.

Iron Horse Roundup- Yet Another Tropical Storm Irene Cleanup Edition

New England Central detour freight MFMO (Millers Falls, MA- MOhawk Yard, Schenectady NY) preparing to head west at Pan Am's former Boston & Maine yard in East Deerfield, MA on September 8, 2011. Only a stone's throw away from the NECR interchange at Millers Falls, the train will then continue north to Whitehall, NY where it will traverse over the Vermont Railway system via Rutland and north to 'home' rails at Burlington, VT- Photo, Matt Baj

As cleanup from Irene continued throughout the Green Mountain state and elsewhere, Class 1 and regional rail carriers were scrambling to accommodate an array of detour traffic over the regions intact lines throughout the month of September.

Canadian Pacific ES44AC GEVO #8780 and a pair of former BNSF SD40-2s blast out of the East Portal of the Hoosac Tunnel in Florida, MA with loaded unit ethanol train MOPW (MOhawk Yard to Providence & Worcester interchange at Gardner, MA)on September 10, 2011. The first car is actually a spacer, while the ethanol tak cars are obscured by the shadows. Photo, Matt Rooks

The flurry of activity breathed new life into obscure and long-forgotten junctions and spawned an alphabet soup of new and improvised train symbols on one railway.

Rail America's New England Central got the ball rolling on September 9th with a southbound detour train from Essex Jct, VT that consisted primarily of empty welded rail cars from the track improvement project on NECR's Roxbury and Palmer subdivisions and backlogged freight cars. The detour train (NECR gave it the symbol 323X) would traverse the western end of the Green Mountain state between Burlington and Rutland before heading west to the Canadian Pacific interchange at Whitehall, NY on the Vermont Railway's former Delaware & Hudson's Rutland branch.

Once on CP rails, the detour freight would be handed off to the Pan Am railway at Mohawk Yard just outside of Schenectady, NY. From there, the NECR detour would continue east over the former Boston & Maine Fitchburg Main to the NECR interchange at Millers Falls, MA.

At least one unit ethanol train was rerouted off VRS's Green Mountain Gateway in the wake of Irene. On September 10, Canadian Pacific handed off a 50 car loaded ethanol train to Pan Am at Mohawk Yard. From there, the train would travel as far east as Gardner, MA on the former Boston & Maine line where it was handed off to the Providence & Worcester.

Vermont Railway GP38-2 #303 leads a solid set of red EMDs north out of Crescent, NY after having just swapped cars with Pan Am freight EDSR (East Deerfield, MA to Canadian Pacific's yard at SaRatoga, NY) on September 11, 2011. The Pan Am freight picked up carloads of limestone slurry and handed over ballast cars and empties. Normally, the interchange would take place in Hoosac Falls, NY. Photo, Gary R. Schermerhorn

The B&R line between Rutland and North Bennington, VT was also damaged in the aftermath of Irene. In addition to local lumber and grain traffic, this portion of the Vermont Railway System also hosts a weekly unit limestone slurry train that is handed off to Pan Am in Hoosac Jct, NY and on to Maine from there. Interestingly, the original routing for the slurry train when it first started was over the Green Mountain gateway where it was interchanged with the Pan Am at Bellows Falls before continuing to Maine. The south end of the B&R branch was reopened in recent years to accommodate the slurry train and give the VRS and Pan Am a second interchange point.

Like the NECR detours, the VRS slurry train reached the Pan Am via Canadian Pacific at the Whitehall, NY interchange and used Vermont Railway motive power- although instead of travelling to Mohawk Yard, they apparently met with a Pan Am freight just outside of Saratoga, NY on Canadian Pacific's former D&H Bridge Line.

New England Central GP38-2 #3857 leads a mixed bag of power from other Rail America roads and leasers across the Hudson River on the former Boston & Maine west end in Mechanicsville, NY at dusk on September 16th, 2011 with symbol freight MFMO. This would be the last NECR detour train using the Pan Am routing as the Green Mountain Railway line would reopen to through traffic less than 24 hours later. Photo, John Bazan

On September 16, the Vermont Railway's Green Mountain Line re-opened to through traffic between Rutland and Bellows Falls, VT. Not only did this mean that through trains could resume on the former Green Mountain Railway, but that the NECR could utilize a less circuitous detour than the Pan Am and Canadian Pacific lines through Western Massachusetts and Upstate New York while work was continuing on reopening their Roxbury Subdivision north of White River Jct, VT. Instead, NECR trains could travel from New London, CT or Palmer, MA as far north as Bellows Falls, VT before detouring over the Vermont Railway System.

Former Goderich & Exeter GP38 #3843 leads a NECR GP38-2 and Connectictut Southern B39-8 as they lean into the curve at Royalton, VT with New England Central train 323-21 on September 21, 2011. This is the first northbound through train on the former Central Vermont Roxbury Subdivision since Tropical Storm Irene struck. Photo, Kevin Burkholder

After weeks of clearing fallen trees and moving in train loads of ballast, rip rap and gravel, the NECR line north of White River Jct and south of Essex Jct, VT had been reopened to through traffic on September 21st.

Crews had been working around the clock to reopen both the VRS and NECR lines since late August. The final NECR work train reportedly ran north out of White River Jct. on September 25 with a Florida East Coast GP40-2 (ironically, with the 'Hurricane' logo on the hood) and a NECR GP38-2 followed by 9 cars of rip rap to shore up repairs made along the line.

While most of VRS's Washington County Railway line between Newport, VT and White River Jct survived Irene, the trestle across the White River itself was undercut when floodwaters twisted one of the stone piers supporting it, causing the deck to drop almost 6 feet our of alignment. Crews have erected a temporary support system and will replace the damaged piers with a concrete pillar. The bridge might be carrying trains as early as this week. Since the warped trestle isolated the WACR's Connecticut River Division from the rest of the Vermont Railway system, the WACR has been borrowing a Montreal, Maine & Atlantic B39-8 to service the line south of the MM&A interchange in Newport.

Today's Train of Thought- Slim Pickens, September 12 2011

Today's Train of Thought takes us to the South Carolina-based Pickens Railway. The Railway was chartered in 1890 to operate between it's namesake of Pickens and the town of Easley, SC- just under 10 miles. The little shortline ceased passenger service in 1928 as improved roads were built throughout the region and instead the Pickens focused on freight. At various points, the Pickens was controlled by the Southern Railway and Singer Manufacturing before expanding operations some 100 years after its original charter.

In the 1990s, the Pickens expanded from their original trackage to the Norfolk Southern line between Honea Path and Belton, SC- and then on to Anderson, SC- some 28 miles total. At Anderson, the Pickens interchanges with CSX, Norfolk Southern and Greenville & Western

Up until that the 1990s expansion, the Pickens had operated with same Baldwin road switcher that the railroad dieselized with in the late 1940s- a second Baldwin was added in the 1970s and an EMD that had since been sold to another Carolinas shortline. With the expansion, the Pickens sidelined the Baldwins for a pair of caterpillar re-engined ALCo S2s. Those were in turn sidelined when the Pickens purchased eight former CSX U18Bs in 2000.

Here, Pickens U18B #9500 is caught by railpictures.net contributor Anthony Davis crossing US Highway 29 just outside of Anderson, SC after picking up a cut of ballast cars from Belton in August 2011. Interestingly, the bright orange paint scheme wasn't from the Pickens. In the late 1990s, CSX set aside their remaining U18Bs (U = General Electric's Universal Series, 18= 1800 hp, B = 4 axles) for MofW service, painting them all in a distinctive orange paint scheme. Pickens simply relettered them shortly after acquiring the GE's from CSX.

Today's Train of Thought- Smoke and Thunder, Aug 19, 2011

For the last 20 years, the Georgia Central has earned its living hauling clay, kaolin, chemicals, forestry products, and coal throughout Southern and Central Georgia. The 175-plus mile regional railway began operations in November 1990 on the former Seaboard Air Line route between Savannah and Macon, GA by way of Vidalia and Dublin, GA.



One of the things that separates the Georgia Central from other railroads is its penchant for some of the older GE products. Shortly after acquiring the line from CSX, the Georgia Central began operations with a small fleet of U30Bs- also from CSX. In the mid-1990s, the U30Bs gave way to more than a dozen high-hood former Norfolk Southern (nee Southern) U23Bs. In 2005, the Georgia Central was acquired by Genesee & Wyoming, although five years in there has been no sign of the trademark G&W orange and black showing up on the Georgia Central.



Some 15 years later, the high hood GE's are still soldiering on for the Georgia Central with a minimally modified Norfolk Southern paint scheme. Here, railpictures.net contributor Nikos Kavoori caught GC U23B #3959 leading a quartet of u-boats with an 80-car coal train during a break in a Georgia thunderstorm outside in Manassas, GA in July 2011. Tucked into the very end of the lashup is an SW1500 from nearby Genesee & Wyoming shortline Chatachoochee Industrial.

Iron Horse Roundup for June 2011

photo Brock Hansen

NEVADA: As the death toll from the June 24th collision between a gravel truck and Amtrak's California Zephyr was revised upwards to 6, investigators are focusing their attention on the truck driver, identified as 43 year old Lawrence Reuben Valli of Winnmeucca, NV, and a number of traffic citations and moving violations he accumulated in recent years.

Investigators from the NTSB are also looking into the safety records of John Davis Trucking of Battle Mountain, NV as well as Valli's medical history. The company has has two accidents in the last two years and an January 2011 inspection showed tired so bald on one trailer that it had to be taken off the road. Officials refused to speculate whether or not such a record was typical for a company the size of Davis Trucking (currently with over 100 drivers on its payroll).

The rig in the California Zephyr collision was longer and heavier than the law allowed, but the trucking company was able to obtain a waiver prior to the accident. Investigators also believe that the fireball after the collision was caused by the two sidesaddle tanks, each with a capacity of 110 gallons.

According to a Nevada Highway patrol spokesman, the speed limit on that stretch of highway 95 is 70 MPH and visibility to the crossing was half a mile that day. The gates were also working and should've been activated at least 25 seconds before the train approached the crossing in Churchill County.

AP Photo

INDIA: The death toll has risen to at least 60 in India and is expected to climb as many more passengers are trapped after a passenger train crashed into a bus carrying a wedding party and derailed in the northern Indian state of Uttar Predesh. Initial reports indicate that the bus with about 80 wedding guests got caught on an unguarded rural crossing when the rear axle broke. Upon colliding with the train, the mangled bus was dragged another 1000 feet before the Kalka Mail was able to come to a stop.

Another 200 people were injured, with some being treated at the scene or in nearby hospitals in clinics.

Railway officials estimate that the express train was travelling 108 Km PH at the time of its impact, close to it's maximum speed limit along the route.

Last BNSF train makes its way through Minot, ND as the Souris River tops the levees on June 23rd

NORTH DAKOTA: Traffic levels for the BNSF mainline through North Dakota began returning this week as record flooding of the Souris River in and around Minot, ND severed both the BNSF's former Northern Pacific's Northern Transon line and Canadian Pacific's former Soo Line track between Portal, ND and the Twin Cities.

An official for the North Dakota National Guard said that an estimated 4000 homes in Minot and Ward county have been damaged by floodwaters that have reached anywhere from 6 to 10 feet. Unofficial estimates say that as many as 800 homes may have to be demolished as the floodwaters recede.

A pair of BNSF GE's lead a ballast train through Minot as the floodwaters begin to recede on July 4- Stephen M Welch photos

The BNSF line through Minot reopened to work trains on the 4th of July and saw some of the detoured traffic return gradually throughout the week. Amtrak's Empire Builder- operating on BNSF's Northern Tanscon- was suspended between Havre, MT and St Paul, MN. While it's not unusual for BNSF or Canadian Pacific to divert traffic over each other's lines in the event one line is shut down, the two lines intersected at Minot, necessitating even longer detours for the carriers. The BNSF rerouted trains south across its former Milwaukee Road line through South Dakota while Canadian Pacific detoured trains through Manitoba and on south through Glenwood and Thief River Falls, MN for its Chicago to Vancouver traffic while repositioning motive power and Maintenance of Way equipment over the Dakota, Missouri Valley & Western south of Minot.

A leased Willamette Valley GP35 leads a work train through on the North Western Pacific line in Penngrove, CA in July 2009: Photo- Kevin Sheridan

CALIFORNIA: Final preparations are underway for limited freight service to resume on a 62-mile stretch of former Northwestern Pacific trackage in Northern California this month after the line's operator ran a series of test trains on the rebuilt trackage.

In late June, a single NWP Co locomotive and a pair of loaded freight cars traversed the tracks between Napa Jct and Petaluma, CA to gauge the status of different trestles and crossing signals along the line with further test trains scheduled to run to the current end of the operable track at Windsor, CA.

A number of shippers in communities along the dormant line have expressed an interest in shipping by rail once the line is reactivated. Traffic is expected to include grain, feed, aggregates, lumber and wine.

Multiple environmental agencies in the area have threatened to sue the North Coast Rail Authority- the line's owner- if the NWP resumes operations without addressing their concerns, claiming that re-opening the line would endanger the Eel River if the former NWP line between Willits and Eureka, CA reopened [inquiring minds want to know- did the Natural Resources Defense Council put them up to it, or are environmentalists naturally inclined to be insufferable douchewaffles who savor keeping more trucks on already crowded highways and even more people out of work? -NANESB!]

John Sesonske photo

NEW YORK: New York's newest railway is expected to begin operating in a few days as crews familiarized themselves with new motive power along the former Delaware & Hudson North Creek branch between Saratoga Springs and North Creek, NY. Over the winter, Wayne County and the town of Corinth- the line's owners- announced that Chicago-based Iowa Pacific Holdings would be the new operator of the line. The new railroad will operate as the Saratoga & North Creek and power will be a pair of GE B39-8s and a rare EMD BL2 painted in a scheme reminiscent of the D&H 'Lightning Stripe' colors.

Previously, the limited excursion service over the line was operated by the Upper Hudson Railroad. Iowa Pacific presently operates a number of shortline railroads in the western USA- a number of them, such as the Arizona Eastern or San Luis and Rio Grande, also operate excursion trains.

An invitation-only VIP train is scheduled to operate on July 12th while regular excursions will begin on July 14. By re-opening the line to Saratoga Springs, the line is not only able to connect with Amtrak passenger trains, but also the national rail freight network by interchanging with CP Rail's former D&H Montreal-Albany line. Iowa Pacific is hoping to court Barton Mines, LLC as a shipper while the town of Corinth is hoping that a rail connection could attract a potential tenant to the dormant International Paper mill in town.

Bob Lyndall photo

WISCONSIN: For the first time in over a decade, the Mid-Continent Railway Muesum in North Freedom, WI will have trains powered by steam. Diminutive 1930-built Porter 0-4-0 #75, built for Flagg Coal, will be trucked into the museum in August by the family-operated, family-run Gramling Locomotive Works. The Museum plans on operating an extended schedule for August, anticipating additional riders with the arrival of the old Porter.

However, that is not the biggest news for the Mid-Continent Railway Museum, as a local foundation offered a $250,000 challenge grant to go towards the full restoration of the MCRM's last operating steam locomotive- 1907 built Chicago & North Western ALCo 4-6-0 #1385. The old C&NW Ten Wheeler routinely saw service hauling not only the museum's excursions, but also the Baraboo Circus Train based out of the Circus World Museum in Baraboo, WI until the flatcars used to haul the wagons were deemed too old to operate on a common carrier after 2000.

In order for the MCRM to obtain the $250,000 grant, the museum must raise an additional $250,000 on its own.

"We have supported the museum over the past few years and have been impressed with their programs, their popularity with young families and their determination to recover from the destruction of 2008's flooding," said Dick Wagner, president of the Wagner Foundation. "We couldn't think of any more important way to support the museum further than to help it get its steam program going again."

When the restoration project begins, it could take as long as 18 months to put the engine back into service. But museum officials hope to get the ball rolling soon, and have named Tom Diehl, president of the Tommy Bartlett Shows and Exploratory World in Wisconsin Dells, honorary chairman of the fundraising campaign to match the grant.

The 1385 has been out of service since 1998- the locomotive was awaiting boiler work when the FRA revised the guidelines for steam boiler operations, nearly tripling the costs of restoring the disassembled steam locomotive.

Iron Horse Roundup for May 2011- Off to the Races

Ex-MARC GP40WH-2 #59 Arriving in Ayer, MA with train #417- David Hutchinson photo- NE Rails.org

MBTA: Boston's commuter railway agency has acquired some new motive power to augment their aging fleet. In addition to purchasing two MP36PHC's from the Utah Transit agency earlier this year, the T is also leasing three former MARC (Maryland Area Rail Commuter) GP40WH-2s with an option to lease additional units until the first new locomotives from a 20-unit order are expected to arrive in 2013. The commuter agency placed a $115 million order for 20 HSP46 locomotives with Wabtec [NYSE: WAB] subsidiary Motive Power International of Boise, ID.

The T is also hoping to persuade the Utah Transit agency to lease them two additional MPI MP36PHCs, although the Salt Lake City based agency has expressed a reluctance to part with them. Aside from two genset switchers purchased from National Railway Equipment in 2009, the MPI order is the first time the MBTA has ordered new locomotives since the 1970s.

Accoring to MBTA estimates, one in every four trains were delayed systemwide in the first two months of 2011. Of those delays, half were attributed to mechanical problems with the T's aging fleet of eighteen F40PH-2, which the agency is hoping to retire.

NEW ENGLAND CENTRAL: A May 31 derailment on the NECR mainline between Palmer, MA and St. Albans, VT sent eight cars off the rails, damaged some fiber-optic cable from Sprint and blocked the Station Rd crossing in Amherst, MA. The cars weren't carrying any hazardous materiel and did not tip over, but the derailment did damage to several yards of track.

The following day, crews from Sprint [NYSE: S] were repairing the damaged cable and RJ Corman was working to clear the derailment. The deralied cars were carrying steel billets, and it was one 65ft gondola car that was blocking the crossing in Amherstt.

Besides mixed freight between St Albans, VT and New London, CT on the former Central Vermont line, that portion of the New England Central also regularly features unit ethanol trains between North Dakota and Providence, RI as well as Amtrak's Vermonter service.


KENTUCKY: Each year, a number of VIPs arrive at Churchill Downs [NASDAQ: CHDN] by train for the Kentucky Derby, and last month's wasn't any different [to be honest, I have no idea whether or not ESPN's Erin Andrews arrived by train, yet I somehow thought it was worth posting the picture regardless- NANESB!].

Outbound NS Office Car Special at Lawrenceburg, KY- JL Scott photo

Every year for the last couple of years, both CSX and RJ Corman have run their own passenger trains over the former Louisville & Nashville Old Road division between Louisville and Frankfort, KY. While RJ Corman uses equipment from their My Old Kentucky Dinner train, CSX uses motive power and passenger cars from their executive train and is referred to as the Governor's Special.

In years past, RJ Corman has expressed an interest in running their Chinese-made 2-10-2 QJ steam locomotive on the excusrion, but since the final leg of the trip to Louisville is made over CSX rails, the CSX has veto power over whether or not steam can be used.

Norfolk Southern typically operates their Derby train between Pennsylvania and Louisville using their duo of F9A units painted in a Southern-inspired paint scheme.

Canadian Pacific would frequently operate their own Derby special on the former Milwaukee Road line between Chicago and Louisville, but the CP sold that line to the Indiana Railroad in 2005.

However, over the past few years private varnish from Northern Sky Charters and Amtrak locomotives were used in special charter trains operating between Indianapolis and Louisville on Anacostia Pacific's Louisville & Indiana Railroad, including this year.

KENTUCKY: Kentucky governor Steve Beshear announced last month that the Commonwealth will award a total of $3.1 million in grants towards Kentucky shortlines to replace ties and repair bridges, crossings and right-of-way. Among the recipients include RJ Corman's Central Kentucky Lines, the Paducah and Louisville, TransKentucky Transportation, TennKen, Louisville & Indiana and the Kentucky Railroad Museum. Aside from one project on the Paducah & Louisville, the money is the Commonwealth's portion of a matching grant, with the railroads paying the other half.

RJ CORMAN: While not used for the Kentucky Derby this year, RJ Corman announced that their Chinese QJ 2-10-2 steam locomotive would be making a shakedown run between Frankfort and Lexington on the first weekend in June and would be available for up-close public viewing in Frankfort on June 4.

There remains the possibility that QJ #2008 could be used in limited excursion service later on in the summer.

CP #2816 Arriving in Swift Current, SK- June 11/Paul Sincerney photo

CANADIAN PACIFIC: The Canadian Pacific announced a series of excusrions throughout western Canada featuring 1930-built Montreal Locomotive Works 4-6-4 Hudson #2816, starting with a special between Moose Jaw, SK and Medecine Hat, AB via Swift Current, SK. Proceeds from ticket sales on the excursions go towards the Children's Wish Foundation of Canada. Besides this weekend's train ride between Moose Jaw and Medicine Hat, a number of other excusrions are on tap throughout Alberta and British Columbia between June and August- Schedule and ticket information is available here.

GWRS M420 #2000 Smokes it up hauling ballast and empty tank cars out of storage at Willows, SK in September 2010- John Leopard

GREAT WESTERN: Canadian Railway Observations is reporting that the all-MLW Saskatchewan's Great Western Railway has recently acquired a pair of BNSF B40-8Ws. The units were dropped off by Canadian Pacific at the interchange in Assiniboia at the end of April and reportedly made their first revenue run for the GWRS on May 23rd.

The Great Western is reportedly looking to sell off two of the five M420s, which they've had since beginning operations in the l990s when they purchased a cluster of light density branchlines from the Canadian Pacific in southwestern Saskatchewan.

Also of note on the Great Western system, the province's first tourist train is set to start running excursions this summer between Ogema and Pangman, SK. Equipment will include a former Conway Scenic GE 44-tonner, an ex-Canadian Pacific baggage car and a former Delaware Lackawna & Western coach car and operations will be based out of the restored former CP depot in Ogema (which is really the former Simpson, SK depot, that a nearby farmer used for grain storage for a few years).

TEXAS: General Electric [NYSE: GE] announced plans to construct a state-of-the-art facility in Ft. Worth, TX that could start building locomotives as early as next year. The 500,000 sq foot facility on the north end of Ft Worth could be increased by nearly double according to the Forth Worth Star-Telegram.

The project initially will create more than 500 high-tech manufacturing jobs and the possibility of 275 more in coming years, the Fort Worth Chamber of Commerce said today.

The company is expected to invest $96 million expanding the building at 12850 Three Wide Drive, located west of the Texas Motor Speedway, into a 900,000-square-foot, state-of-the-art locomotive manufacturing facility. It is being supported by $4.2 million from the Texas Enterprise Fund.

Lorenzo Simonelli, president and CEO of GE Transportation, said the Fort Worth facility will allow the company to better serve its customers.

"We see robust growth in the U.S. and around the globe," Simonelli said. "A new site will help us to effectively respond to the cyclical demand in the transportation industry and to strengthen our overall position."

GE Transportation will use the Fort Worth facility to assemble and remanufacture the company's rail and transportation-related products, the chamber said. That includes GE's signature Evolution Series locomotive, an energy-efficient product that it says reduces fuel consumption 5 percent while reducing emissions by 40 percent over the lifetime of the locomotive.

GE Transportation will start hiring salaried employees and production workers such as welders, assemblers, painters and related skilled trades by the end of the year. Production should begin by the second half of 2012.

In addition to the Ft Worth facility, GE also plans to expand capacity at it's Erie, PA facility.

CALIFORNIA: California's Modesto & Empire Traction has begun taking delivery of the first of their 5-unit order of RP20BD genset engines from RJ Corman-Railpower. M&ET already has 7 Railpower Gensets, gradually phasing out a fleet of 50 year old GE 70 tonners and a pair of EMD SW1500s.

A Cinco De Mayo Train of Though- Beauties and (High Horsepower) Beasts South of The Border, May 5 2011

It's that time of year again- the 5th of May is an opportunity for Madison Avenue to try and sell the rest of America some marginal imported beer people to commemorate the May 5, 1862 battle outside of Puebla, Mexico where outnumbered Mexican farmers thwarted advancing French troops north of the town.

As romanticized as the tale of an underdog, poorly trained peasant army beating back a numerically superior foreign military making incursions into their country can be, there are a few common misconceptions about Cinco de Mayo and the Battle of Puebla here in the USA.

First and foremost, this is not Mexico's independence day. I'm pretty sure this topic has come up before on this blog, but I thought it would be worth revisiting. Mexico fought a decade-long war against Spain between 1810 and 1821, while the Battle of Puebla would take place some 40 years later against Napoleonic French troops. Mexico's independence day is actually observed on September 16 each year and is in fact a bigger occasion than Cinco de Mayo, which is mostly celebrated in the state of Puebla.

Second is that while the Battle of Puebla was a remarkable setback for Napoleon III's Army, French forces were able to overwhelm Mexico later on that year and install Austrian archduke Ferdinand Maximilian as Emperor Maximilian I of Mexico beginning in 1864. However, that wouldn't last very long as he was deposed by an army led by Benito Juarez in 1867 and was executed by firing squad. Puebla, the capital of Puebla state southeast of Mexico City also became home to the Mexican National Railway Museum.

Construction on Mexico's railways began shortly before the French Intervention and Battle of Puebla, with an emphasis on completing a line between Mexico City and the Gulf of Mexico port of Veracruz. Other lines radiated north out of the nation's capital, bankrolled by US, Mexican and European interests and linking the resource-rich nation with the US Border and ports along the Pacific Ocean and Gulf of Mexico. However, the network would deteriorate considerably during the Mexican revolution and be incrementally nationalized between 1929 and 1937.

It would take some 60 years for the Mexican government to follow through on privatization. In 1997, the government run Ferrocarriles Nacionales de Mexico (FNM) ceased passenger operations and was divided up. Much of the track to the north and west of Mexico City (as well as the Ferrocarril Sonora-Baja California and Chihuahua al Pacifico lines) went to Grupo Mexico's [BMV: GMEXICOB] FerroMex while the mainline between Mexico City and Nuevo Laredo to the north, Lazaro Cardeans to the South and (eventually) Veracruz to the east went to Transportes Ferroviaria Mexico, a joint venture between Mexico's Grupo TMM [NYSE: TMM] and Kansas City Southern [NYSE: KSU], although Kansas City Southern gained a majority stake in 2005 through it's KCS de Mexico subsidiary.

FerroSur, owned jointly by billionaire Carlos Slim's Grupo Carso [BMV: GCARSOA1] and Financiero Inbursa SAB [BMV: GFINBURO] would gain most of the trackage south of Mexico city, but in 2005 it would be acquired by a GrupoMexico subsidiary with the intention of merging it into FerroMex. Since this would give FerroMex a near monopoly, KCS de Mexico understandably objected and the matter was tied up in litigation until earlier this year when a tribunal from Mexico's Federal Competition Commission ruled in favor of GrupoMexico (but allowed KCS de Mexico to operate into Guadlajara via trackage rights on FerroMex).

While privatization has no doubt improved motive power, rolling stock, physical plant and right-of-way south of the border, like many other seemingly everyday activities in contemporary Mexico, railroading carries an element of risk to it.

With Mexican law enforcement tied up attacking drug cartels, free-lance crime gangs have become more daring and sophisticated, hijacking trucks and trains and stealing massive loads of steel, coffee and beans.

These gangsters are armed not only with guns but heavy machinery to unload industrial materials and bulk agricultural goods, deftly passing them off to the black market.

Mexico's third largest steel producer, Altos Hornos de Mexico, or AHMSA, has been victim of nearly 40 robberies since January 2008,

"This wasn't happening before," AHMSA spokesman Francisco Orduna said.

"To unload a 30-tonne roll of steel is complicated," he said. "Not just anyone can do that and to find someone who will buy that amount is not that easy either. You have to be really well organized."

Mexico's steel chamber said robberies skyrocketed by 250 percent last year, as 12,500 tons were carted off by thieves, sometimes truck and all. Losses totaled 150 million pesos ($11 million) in 2008 and have continued as a fast clip this year.

The robberies are raising the cost of doing business in Mexico as companies hire guards, expensive security consultants and specialized satellite positioning devices to track cargo.

Using intelligence gathered from employees either intimidated or paid off to leak transport routes, the well-connected groups can hijack a truck making a pit stop, empty out the cargo and dump the driver on an abandoned road.

Gerardo Bortoni, who heads an association of truck drivers in Monclova, said the thieves hand products over to corrupt businessman while authorities turn the other way.

"They are stealing everything, coffee, cacao, pistachios. Before it was just sporadic now its very common. We're afraid to haul a lot of products," he said.

Due to the murky nature of the crimes, it is unclear who the customers are for the stolen goods but Bortoni said in the case of steel, buyers would need the capacity to process raw materials. Wholesalers say stolen food products will show up at the same markets they were taken from, just at a lower price.

Grupo Mexico, which operates Ferromex, one of Mexico's main railroads, set up a system to pay government security forces to guard their trains after a spike in thefts.

In a series of hijackings late last year, bands of dozens of people, armed sometimes with machetes and rocks, sacked entire trainloads of corn and beans.

Illegal immigrants from Central America also attempt to hop rides on freight trains on their way to try and cross the into USA. Besides the risk of injury or death from falling off the train, there's also the hazard posed by railroad and federal police demanding bribes and Mexican gangs who have demonstrated a willingness to rob, rape and murder the migrants transiting through territory they control.


Southbound trains, however, are less likely to suffer from that problem. Here, railpictures.net contributor Alfonso Chumacero caught FerroMex C30-S7 #3745 on the point of a southbound freight chugging southbound out of the town of Acaponeta in Nayarit state on April 4, 2007 with train FXE 3745. The big 3000 HP GE on the point, a former Ferrocarriles Nacionales Mexico unit, is still wearing the faded two-tone blue of the final few years of FNM's existence.
As a bonus- and to demonstrate that it's still possible to travel by train in Mexico without a peril fraught journey, there's Chihuahua al Pacifico's Copper Canyon excursions between Los Mochis, Sonora and Chihuahua. From the state capital in Chihuahua, the line actually continues north-east to the border crossing at Ojinaga/Presidio, TX and on to Alpine, TX and points north-east via FerroMex subsidiary Texas Pacifico (although the bridge across the Rio Grande was damaged by fire and knocked out of service in late 2008). The Copper Canyon segment wasn't completed until 1961 owing to the on-again off again political instability in Mexico as well as the extremely remote and difficult terrain.

Here, enigmatic Railpictures.net contributor E Hames ModelFan has caught in his lens the angular and sturdy lines of FerroMex GP38-2 #2017 in the siding with a Copper Canyon excursion train at Divisadero, Chihuahua in October 2005complimented by some enticing curves closer at hand. The two lovely women in the foreground are identified as models from Playboy Latinoamerica, reportedly preparing to film a travelogue about the Copper Canyon.

Even without the alluring latina models (who, admittedly make a good thing even better) the Chihuahua Pacifico Copper Canyon passenger train is considered one of the world's premiere railroad excursions.

General Electric, General Motors Avoid Paying Taxes for 2010

While taxpayers and small business owners are poring over their IRS 1040 forms, I'm sure this bit of news from a pair of corporations that have benefitted from government bailouts and lagresse will bring a bit of joy and wrmth to their weary hearts.

A little over two months ago, GE Chairman Jeffery Immelt was appointed to an economic panel by the Obama Administration. This was the same conglomerate who lobbied for cap & trade back in 2009 and who's subsidiary TV networks of NBC and MSNBC acted as unabashed cheerleaders for Obama during his 2008 Presidential campaign. Now it's been learned that General Electric will pay nothing in taxes for 2010 and will in fact be getting $3.2 billion in tax breaks from the US government thanks in part to concentrating most of its $14.2 billion in profits offshore. More than half of GE's current workforce is outside the United States as well.

Back in November the Wall Street Journal reporteda few weeks before GM's stock was set to be re-listed in the NYSE that General Motors could wind up with tax breaks worth an estimated $45 billion thanks in part to lossesincurred prior to the bailout.

GM, which plans to begin promoting its relisting on the stock exchange to investors this week, wiped out billions of dollars in debt, laid off thousands of employees and jettisoned money-losing brands during its U.S.-funded reorganization last year.

Now it turns out, according to documents filed with federal regulators, the revamping left the car maker with another boost as it prepares to return to the stock market. It won't have to pay $45.4 billion in taxes on future profits.

The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years. In GM's case, the losses stem from years prior to when GM entered bankruptcy.

Usually, companies that undergo a significant change in ownership risk having major restrictions put on their tax benefits. The U.S. bailout of GM, in which the Treasury took a 61% stake in the company, ordinarily would have resulted in GM having such limits put on its tax benefits, according to tax experts.
"The Internal Revenue Service has decided that the government's involvement with these companies, both its acquisitions plus its disposals of their stock, means they should be exempt" from the rule, said Robert Willens, a New York tax consultant who advises investment banks and hedge funds.

The government's rationale, said people familiar with the situation, is that the profit-shielding tax credit makes the bailed-out companies more attractive to investors, and that the value of the benefit is greater than the lost tax payments, especially since the tax payments would not exist if the companies fail.

The pricetag for the GM bailout was thought to have reached at least $30 billion. The fact that the government was still a stakeholder in General Motors at the time could help explain the DOT's aggressive pursuit of Toyota Motors for a number of safety issues last year.

Crony Capitalism: Obama Names GE CEO Jeffery Immelt to Economic Panel; JP Morgan Exec Daley to Chief of Staff

I fleetingly saw on the front of some of the fish wraps this weekend that the punditocracy is reassuring us President Obama is supposedly going to move to the center in his upcoming State of the Union address by making job creation and the economy his top priority [Hmmmm....didn't we hear the same thing from the Administration right after the inauguration and then when 0bamacare passed?- NANESB!]. Apparently one of these indicators of a shift in the Administration's priorities is supposed to the selection of General Electric CEO Jeffery Immelt to head an economic panel. While CEO, General Electric was one of the top donors to Obama's 2008 Presidential Campaign while it's subsidiaries at the networks of NBC, MSNBC and CNBC gave favorable, nearly uncritical coverage to both Obama the candidate and Obama the President. Immelt had also come out in favor of cap & trade in 2009, along with the NBC/Universal subsidiaries promoting week-long programming like the 'Green is Universal' media blitz during 'Green week'. GE was also the recipient of a number of grants and government contracts under the American Recovery and Reinvestment Act- aka the stimulus. According to the Alliance for American Manufacturing, the conglomerate has been steadily outsourcing jobs to China and elsewhere overseas under Immelt's watch as General Electric closed down 29 American factories in the last two years alone. The naming of Immelt to the economic panel comes about two weeks after the White House announced former JP Morgan Chase executive William Daley as the new White House chief of staff. William comes from Chicago's dynastic Daley family- his late father was the mayor for 21 years and his brother, Richard M Daley, is the outgoing mayor of Chicago. Prior to being selected for chief of staff, Daley was the Midwestern Chairman for JP Morgan Chase. The banking giant that Daley recently left is presently embroiled in a scandal where they overcharged active duty military personnel on mortgages and improperly foreclosed on homes of at least a dozen more military families.

FCC Approves Comcast-NBC Deal

Federal regulators have approved a deal this week in which cable giant Comcast [NASDAQ: CMCSA] acquired a 51% stake of NBC Universal from General Electric [NYSE: GE].

In a 4-1 vote on Tuesday, the FCC determined that the deal, which creates a company with a combined 16.7 million broadband subscribers and 23 million cable customers, is in the nation’s public interest, seeing it complies with certain conditions.
The conditions, among other things, are intended to ensure that the nation’s largest cable provider share NBC programming, such as MSNBC and USA Network, with cable, satellite and Internet rivals. They are meant to stop the conglomerate from trampling competition, which could ultimately lead to an increase in prices for customers, according to the Department of Justice.

Also according to the deal, Comcast will have to offer online video distributors the same package of broadcast and cable channels as it sells to traditional video programming distributors.

This deal effectively makes Comcast the parent company of MSNBC, which as any cursory glance at the ratings will tell you, was likely kept around by the benevolnce towards the networks leftist 'personalities' by GE CEO Jeffery Immelt. It will be interesting to see if this deal in any way changes the arrangement (and God-awful business model) between MSNBC and its parent company.

Today's Train of Thought- Say "Adirondack"; October 28, 2010

Today's train of thought takes us to the opposite shore of Lake Champlain and the Canadian Pacific's former Delaware & Hudson line between Albany, NY and Montreal, QC.

This end of the D&H wasn't historically as busy as the Mechanicville, NY to Binghampton, NY segment, which to this day serves as a bridge line between New England and the mid-Atlantic states and points west. However, besides being the railroad's gateway to Canada, the more northerly and scenic portion of the D&H was noteworthy in that it hosted one of the few post-Amtrak passenger trains where a freight railway used their own locomotives and rolling stock, when the railroad resumed passenger hauling with the Adirondack in 1974.

Amtrak eventually assumed control of the Rensselaer, NY to Montreal segment of the Adirondack and to this day is rated as one of the passenger carrier's most scenic routes. Through it all, the Adirondack has continued operating through the host railroad's acquisition and subsequent messy divorce from Guilford Transportation, the more amicable divorce from New York Susquehanna & Western and it's current ownership by Canadian Pacific.

In fact, traffic on the Albany-Montreal section of the D&H is expected to see an increase, with the Canadian Pacific and CSX reaching an agreement on hauling CSX freight between Selkirk, NY and Montreal, eliminating a lengthy detour via Syracuse, NY for CSX. In return, CSX would handle Canadian Pacific's freight between New York City and Selkirk. Aside from the already existing CP traffic and newly rerouted CSX traffic, the Adirondack also has to compete with trains 666 and it's less satanic counterpart 667, a unit ethanol train that runs between North Dakota and Providence, RI via Chicago, Toronto, Montreal and Rutland, VT (onto the Vermont Railway, New England Central and Providence & Worcester).

Railpictures.net contributor Frank Jolin knows this line well, and on October 23, 2009 he caught Amtrak P42CD #16 leading the southbound Adirondack (train #68 on most timetables), complete with a dome car, making it's way past the Red Rocks above Lake Champlain's Willsboro Bay, just north of Willsboro NY.

Today's Train of Thought- Change is U.P. in The Air; October 17, 2010

The Lake Superior and Ishpeming in Michigan's Upper Penninsula had a reputation for making the most for it's oddball fleet of six-axle ALCos and GE diesels up until the end of the 1980s, where they were replaced.....well....by more oddball diesels. This time around, the replacements took the form of nearly twenty six-axles U30C's purchased secondhand from Burlington Northern. The 3000 HP behemoths had an extensive background hauling coal from Wyoming's Powder River basin to power plants throughout the midwest and would seemingly be at home hauling ore jennies from the mines to the dock along the south shore of Lake Superior at Marquette, MI. The 50-mile line sees most of it's traffic come from mining.

With the leaves starting to change color in Michigan's upper peninsula, railpictures.net contributor Kevin the Krazy 1 caught LS&I U30C #3006 leading a short train from the Canadian National (former Wisconsin Central) interchange through the rock cut at Neagunnee, MI on a brilliant October 2008 afternoon.

While change may come slowly to the LS&I, it does come sooner or later as the shortline is presently leasing nine C44-9s from CIT Group.