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March 2006
IN THIS ISSUE
Feature Articles
Rail History is Alive and Well
– Iowa has a rich rail history and celebrates that history
at many museums and other attractions around the state.
FULL ARTICLE
The Trails and Rails Connection
– Iowa’s multi-use trail system owes a debt to the rail
system. Learn how abandoned railroad rights-of-way have
played their part in the growth of the trail system.
FULL ARTICLE
Building Iowa’s Rail System
– Interest in the new rail assistance program is high.
FULL ARTICLE
A Different Point of View
– The
newsletter editor shares personal observations from a recent
ride in the cab of an Amtrak train.
FULL ARTICLE
Commodity Focus
Focus on Coal
– This is the first in a series of articles about
commodities hauled by rail. Look at the role rail plays in
the coal industry.
FULL ARTICLE
Industry News
Fuel Master -
Union
Pacific improves fuel efficiency through employee awareness,
training and incentives.
FULL ARTICLE
Iowa
Interstate adds an Illinois Line
– IAIS picked up a line in Illinois to improve its
operations.
FULL ARTICLE
Iowa
Interstate Gaining Power
– A
Railroad Rehabilitation and Improvement
Financing loan from the Federal Railroad Administration
finances purchase of 22 locomotives.
FULL ARTICLE
South Dakota Sells “Core” Line
– BNSF has agreed to purchase the 368-mile Core line owned
by the State of South Dakota since it was rescued from
abandonment in 1980.
FULL ARTICLE
Safety News
Safety counts at CRANDIC
– CRANDIC employees complete a second injury-free year.
FULL ARTICLE
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Passenger Rail Corner
More Amtrak Uncertainty –
Amtrak
funding level remains up in the air.
FULL ARTICLE
Amtrak ticket Information on
the Internet
or call 1-800-USA-RAIL
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·
Railroads are three or more times
more fuel-efficient than trucks.
·
If just 10 percent of the freight
that currently moves by truck were diverted to
rail, fuel-savings would approach one billion
gallons per year.
· Freight
railroad fuel efficiency
has steadily improved, rising 74 percent since
1980.
·
In 2004 railroads moved a ton of
freight nearly 410 miles, on average, per gallon
of diesel fuel, which is up from 235 miles in
1980.
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Rail
History is Alive and Well
One of my
passions in life is history, and Iowa is rich in railroad
history. Because railroads helped to populate this state,
many communities have an active rail line or former railroad
depot. As a result, Iowans have a variety of historical
museums focusing on railroads. |

Union Pacific Railroad Museum
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At least
60 former railroad depots, many beautifully restored, are in
use around the state as local history museums or for other
purposes. Iowa also has a number of railroad attractions
devoted to model railroading, and a number of sites where
antique railroad locomotives are displayed, or where
excursion rides are provided. Listed below are a few of
Iowa’s railroading attractions.
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Boone &
Scenic Valley Railroad
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Burlington Northern Depot and World War II Memorial
Museum in Red Oak
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C.B.
& Q. Restored Depot in Creston
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Chicago, Rock Island and Pacific Depot in Wilton
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Delmar Depot Museum
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Depot/Caboose Riverfront Park in Parkersburg
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Dows
Depot Welcome Center
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Eldora Welcome Center and Railroad Museum
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Fort
Madison, Farmington and Western Railroad near Donnellson
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Gowrie Depot Historical Museum
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Grafton Heritage Depot/Museum
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Historic General Dodge House in Council Bluffs (national
historic landmark)
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Historic Valley Junction in West Des Moines
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Hobo
Museum and Hobo Gift Shop in Britt
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Hub
City Heritage Railway Museum in Oelwein
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Illinois Central Railroad Depot in Independence
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Kate
Shelley Railroad Museum and Park in Moingona
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L.
M. & O. Railroad Museum in Marathon
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Midwest
Central Railroad in Mount Pleasant
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Milwaukee Railroad Shops in Sioux City
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Moravia Wabash Depot Museum
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North Lee County Historic Center and Railroad Depot
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Oelwein Railway Museum
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RailsWest Railroad Museum and HO Model Railroad in
Council Bluffs
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Red
Barn Model Railroad Museum in Dundee
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Restored Railroad Depot in Clarion
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Santa Fe Depot Museum Complex in Fort Madison
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Trainland U.S.A. in Colfax
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Union
Pacific Railroad Museum in Council Bluffs
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Vinton Railroad Depot and Museum
Another
exciting development in the state to preserve transportation
history is the Iowa Transportation Museum in Grinnell. A
group of advocates have been working for about five years to
create a museum dedicated to transportation in Iowa – its
history, heroes, current role in the state’s economy, and
possible future directions. The former Spaulding Automobile
Factory in Grinnell, adjacent to the Iowa Interstate
Railroad, has been purchased for the museum and the
buildings are presently being stabilized. For more
information, visit this Web site:
http://www.iowatransportationmuseum.com/pages/artifact.html
And, finally, there is a
project underway to preserve and share historic photos, maps
and other historic paper documents within the DOT. With the
support of a Transportation Enhancement Grant, the DOT will
be hiring a consultant to develop a Historic Resources Plan.
The plan will identify the various collections around the
DOT, recommend storage and preservation techniques, and
create a timeline for cataloging and digitally scanning
selected documents.
Eventually,
we intend to make the scanned collection available on the
internet.
Peggy Baer Director, Office of Rail Transportation
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The Trails and Rails Connection
As spring
approaches, many of you will be getting your bicycle in
working order or donning your walking shoes to take
advantage of the over 1,150 miles of recreational trails in
the state. The trail system in Iowa, particularly its more
rural segments, is largely built on the “bones” of former
railroad lines.
During the
early stages of development of Iowa’s trails system, the
majority of trails were built on public lands. In the 1960s
and 1970s, interest grew for an expanded trail system using
railroad right of way as a backbone of that system.
In 1968
the National Trails System (NTS) Act was established by
Congress to facilitate use of railroad right of way for
trails. However, because rail right of way often is a
patchwork of outright ownership, easements and other
possible ownership/use scenarios, it was very difficult to
buy property for a trail. The buyer had to negotiate with
multiple property owners and a single unwilling property
owner could prevent the development of the trail corridor.
In 1985
the NTS Act was amended to make possible the purchase of
railroad right of way as an entire parcel by a trails group
or public body. The amendment allowed a public entity to
acquire the property of a rail line on an interim basis for
trails use when a track segment is to be abandoned. The
interim use comes with the condition that the right of way
is available for rail use if needed in the future. This
feature is called rail banking. The NTS Act thus serves a
dual purpose --- facilitating the development of trails,
while at the same time, preserving rail corridors which
offer the potential for restoration of rail service.
Developing
a trail on a former rail bed is faster, simpler and cheaper
than building a trail “from scratch,” since basic grading,
drainage, culverts, and bridges are already in place.
Today, 616 miles of trails (54 percent Iowa’s trails system)
are built on the right of way of former rail lines. To date,
no trails in Iowa have reverted to an active rail corridor,
but key pathways that form connections to the existing rail
system have been preserved, if that need ever arises.
For information on Iowa’s trails system
www.iowabikes.com |
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Building Iowa’s Rail System
The last
newsletter announced a new program that provides loans or
grants for rail projects that spur economic development,
such as building rail spurs or sidings. Demand for
assistance through the new
Rail Revolving Loan and Grant
Program was high, with 26 applications received, requesting
a total of $17 million in grants or loans.
The Iowa
Rail Finance Board is expected to make awards later this
summer. However, due to the fact that only $3.6 million is
available to award, not all projects can be funded. |
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A
Different Point of View
I recently
had the opportunity to ride Amtrak from Osceola to West
Burlington. But rather than a plush seat, I was in the cab,
sitting beside the engineer. I would like to share some
personal observations about my ride.
We all know
that trains are big, but climbing up the ladder on the side
of the locomotive to enter a door approximately 8 to 10 feet
above ground level suddenly made me realize this locomotive
is way more than big – it’s GIGANTIC.
At full
speed the train traveled up to 79 mph. I expected that to
seem very fast, but the speed was deceptive. I discovered:
·
in the
wide-open countryside, 70+ mph seemed almost leisurely –
more like 50 mph on the Interstate;
·
when
approaching a highway-rail crossing, 70 mph seemed very
fast – when you spy a crossing ahead, you are upon it in
practically the blink of an eye; and
·
when a
vehicle is approaching a highway-rail crossing ahead of
the train, it is impossible NOT to think with a slight
sense of panic --- “Will they stop?” ---because 70 mph
then feels like you are flying!
Radio communication between
the dispatcher and engineer was frequent and repetitive with
lots of redundancy to avoid any miscommunication. Though I
could vaguely discern that the radio communication had
SOMETHING to do with location and activities, the rest may
well have been a foreign language. Like many fields,
there is a whole vocabulary common within the industry that
an outsider finds perplexing.
There is a
lot of variability along a route. Some segments of track
have train
signals, much like traffic lights on the highway,
that inform the engineer if he or she has the right to
proceed. In other areas, signals are not present and the
engineer must obtain the right to operate on that segment of
track through the dispatcher.
While 70+
mph was the norm, there were track segments where the
maximum speed was much lower for one reason or another.
Some switches to divert a train from one track to another
were automated, others were not. Much like driving down a
highway, the tracks have different trackside features, speed
restrictions and traffic control.
There
really is a “dead man’s switch,” a button that must be
pushed periodically. If there is no response from the
engineer, the train will automatically stop, preventing a
runaway train if the engineer is non-responsive. And
finally, when telling a youngster about the trip, he asked
if I was able to steer the train. No, I did not, and
steering is not quite the right word, since of
course, there is no steering wheel.
Diane McCauley, Newsletter Editor
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Focus
on Coal
Coal is a dark sedimentary rock composed
mostly of carbon and hydrocarbons and is the most abundant
fossil fuel in the United States. Certainly not a very
exciting or elegant commodity, but coal plays a very large
role in the national and state economy, and makes up the
largest single commodity shipped by rail.
Coal is mined in 27 states, with the largest
quantity of coal mined in Wyoming’s Powder River Basin,
where low-sulphur coal is in demand to meet air quality
standards. Coal is used in industry and steel making, but
the largest use by far is to generate electrical power. Over
50 percent of the nation’s power is generated by coal.
Because coal is consumed in large quantities
all over the United States, but is produced in large
quantities in just a handful of states, the efficient
transportation of coal is critical. Over 65 percent of coal
shipments in 2003 – more than 680 million tons – were
delivered by rail, according to Energy Information
Administration data.
That’s a lot of coal, and it makes up a
substantial portion of the railroad industry’s cargo. Of
the major commodities carried by rail, the shipment of coal
accounts for 40 percent (in 2002) of the total ton miles
(one ton of product hauled a single mile).
With the opening of the Powder River Basin (PRB)
in Wyoming to mining in the 1970s, U.S. coal shipments have
grown dramatically, from 4.8 million carloads to 7.1 million
carloads in 2002. By 2025 coal consumption is expected to
rise by 38 percent.
The largest coal movements from the PRB are
to electric generating plants in the Midwest and southern
part of the United States. Iowa utility companies depend on
coal to generate about 85 percent of their electrical power,
using nearly 22 million tons of coal in the process.
Regulated utilities and municipalities are not the only Iowa
entities using coal. Coal is the primary fuel source for
many large Iowa employers. ADM, Cargill and John Deere all
use coal in their manufacturing processes. Iowa is also home
to the world’s first 50-million gallon, coal-fired ethanol
plant--- Central Iowa Renewable Energy in Goldfield. The
second such plant, owned by Lincolnway Energy in Nevada,
will come online in June.
As coal production and usage increase, railroads become more
efficient hauling it by using larger rail cars, higher
powered locomotives, improving infrastructure, and finding
better ways to utilize the equipment. Unit trains, an
entire train made up of coal cars, shuttle cars directly
between the mine and larger customers for speedy and
cost-effective transportation.
The increased demand does present some challenges. “Given
the cost of other fuels, such as natural gas, demand for
coal has jumped exponentially. While railroads and mines
alike are making massive investments in infrastructure and
personnel to keep up with demand, businesses that rely on
coal are struggling to get the tonnage they want. Further,
companies wanting to use coal for the first time have an
even more difficult time finding reliable sources. This
crunch is causing producers, transporters and end-users to
look at all options that maximize production and/or secure
supply,” says Jeff Woods, marketing manager at Alliant
Energy Transportation in Cedar Rapids.
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Fuel
Master
Iowa was one of the proving grounds for
Union
Pacific Railroad’s new fuel-conservation program, which has
shown some dramatic results. While you struggle to save that
few gallons of gas in your weekly commute, just imagine the
potential of even small improvements in fuel efficiency in a
locomotive that can burn three or more gallons of diesel
fuel per minute.
Union Pacific’s “Fuel Master” program uses
training, incentives and some good old-fashioned competition
to yield some astonishing results. By the end of 2005, UP
has credited the program with saving 16 million gallons of
diesel fuel, representing $30 million.
Locomotive engineers in approximately 30
crews that travel across a dozen different states (including
Iowa) have participated in the program. Engineers receive
fuel-conservation information and peer-training. Many of
the tips are familiar – coast to a stop, no jack-rabbit
starts and careful planning – while others are unique to the
rail environment. Some engineers train on specially-equipped
simulators that provide feedback on fuel consumption.
Engineers’ fuel-consumption performance is
compared within the same territory (to eliminate variances
such as flat and hilly terrain). Those engineers in the top
15 to 20 percent are awarded a $100 fuel card for their
personal use.
UP plans to expand the program in 2006, is
expecting to double the total savings and will implement the
program system-wide by 2007.
Many other railroads, including BNSF, have
similar fuel-savings programs in place; however, UP’s
program is unique in offering a personal-incentive to their
employees.
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Iowa
Interstate adds an Illinois Line
Iowa Interstate Railroad, Ltd. (IAIS) will
lease a 32-mile line between Utica and Henry, Illinois, from
CSX Transportation. “This transaction helps IAIS have better
control over its mainline operations to Chicago and Peoria,”
said IAIS President and Chief Executive Officer Dennis
Miller.
IAIS operates over 500 miles between Omaha
and Chicago on lines formerly owned by the Chicago, Rock
Island and Pacific Railroad, which was liquidated in 1980.
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Iowa
Interstate Gaining Power
Iowa Interstate Railroad will move forward
with plans to purchase 22 GP-38-2 locomotives from GATX
Rail. The Federal Railroad Administration (FRA) announced
approval of a $9.35million Railroad Rehabilitation and
Improvement Financing (RRIF) loan application for the
purchase.
The RRIF program authorizes the FRA to
provide direct loans or loan guarantees to eligible
railroads, governments or government-sponsored authorities
to acquire, develop, improve or rehabilitate intermodal or
rail facilities.
IAIS leased locomotive power from GATX in
2005. In 2005, IAIS obtained a $32.7 million RRIF loan to
upgrade 300 track miles to accommodate heavier rail cars and
increase speed.
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South
Dakota Sells “Core” Line
A rail line that the State of South Dakota
rescued from abandonment 25 years ago has been sold to
BNSF Railway for $40.3 million. The deal also includes improved
short-line access to BNSF tracks. The state will invest
approximately $6.5 million in sidings and track
improvements, and BNSF agreed to grant regional- and
short-lines access rights to the line.
“This is access to worldwide markets that
our smaller carriers have never before had,” said South
Dakota Gov. Mike Rounds in a prepared statement.
The 368-mile Core line runs from Aberdeen to
Mitchell, Mitchell to Canton, Canton to Sioux Falls, and
Mitchell to Sioux City. The State of South Dakota took
ownership of the line in 1980 after it was deserted by the
bankrupt Milwaukee Road. Then Governor Janklow persuaded
the legislature to temporarily raise sales tax by one cent
to finance the purchase in a bold move to preserve the rail
service that was critical to South Dakota’s economy.
BNSF contracted to operate the line for five
years and in 1986 negotiated a new operating agreement that
contained a purchase option. Years of negotiations on the
sale and several lawsuits have resulted in a sales agreement
that appears to be a win-win situation.
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Safety Counts at CRANDIC
The
Cedar Rapids and Iowa City (CRANDIC)
Railway Co. reported a second year of safety success. With
two consecutive years without a recordable injury, CRANDIC
employees worked more than 280,500 hours injury-free.
President and General Manager Paul Treangen offered words of
praise for his 78 employees when he said, “Reaching this
milestone is proof of their ongoing dedication to safety and
is something we can all be very proud of.”
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More
Amtrak Uncertainty

Amtrak received a $1.318 billion
appropriation to continue operations in 2006. The
appropriation was coupled with a number of reform
measures.
The Bush Administration’s budget
proposal for 2007 recommends $900 million for Amtrak,
$418 million less than the 2006 appropriation, and $900
million more than the Administration’s 2006 proposal,
which recommended zero funding.
The budget proposal for capital
improvements would remain at $500 million. However, the
budget recommendation would not provide Amtrak any
direct operating subsidy. Instead, the proposal would
give the Secretary of Transportation $400 million for
Efficiency Incentive Grants. The grants would be
contingent on a number of reforms and restrictions in
the FY2006 legislation and awarded by the secretary if
they’re “in the best interests of the transportation
system” and included in Amtrak’s business plan.
Congress has yet to take any action on
Amtrak funding or the Administration’s budget proposal,
but it likely will prove to be another contentious year
as both opponents and proponents of Amtrak struggle with
the future of Amtrak.
Many organizations
are interested in the outcome of this issue. Their opinions
can be viewed at the following Web sites:
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