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7/8/2009


Rail News: Rail Industry Trends
Updates from Skanska USA Civil, Ansaldo STS USA, Harsco, Greenbrier and Rail Safety Consulting



• Skanska USA Civil received a contract to build a rail extension for Bay Area Rapid Transit (BART). The $62 million pact includes the construction of a 1.2-mile rail extension from BART’s Fremont Station to Warm Springs in the southern Bay Area. The line will be partly built underground in a cut-and-cover tunnel and also pass under Union Pacific Railroad track. The project is scheduled to be complete in 2013.

• Ansaldo STS USA (ASTS) recently inked a $24 million subcontract to modernize MTA New York City Transit’s signal system for the Lexington Avenue and Fifth Avenue interlocking. ASTS will provide a relay-based, communications-based, train control-ready wayside signaling system to replace and upgrade two current interlocking on the Queens Boulevard Line. The project consists of more than 1,500 vital and non-vital relays, along with additional relay room equipment to control the interlockings.

• Harsco Corp. recently received nearly $10 million in new Class I orders for a range of track maintenance equipment. The company’s Harsco Rail unit will build “15 separate units,” including track surfacing machines, spike drivers and tie replacement units, according to a prepared statement. All are scheduled for delivery by year’s end.

• The Greenbrier Cos. reported revenue of $244 million for the fiscal quarter ended May 31, a 36 percent decline compared with revenue recorded during the same 2008 period. The rail-car builder delivered about 800 new cars during the quarter, a 63.6 percent drop. About 900 cars are scheduled to be delivered during the remainder of fiscal-year 2009, which ends Aug. 31. As of May 31, Greenbrier’s backlog was 14,100 cars — 11,800 of which are subject to a multi-year agreement with GE Railcar Services, which Greenbrier believes is “in breach of its obligations under the contract,” according to Greenbrier’s 3Q earnings press release.

• A group of railway safety professionals formed Rail Safety Consulting L.L.C., a company “dedicated to providing safety solutions to the rapidly changing world of rail train control,” according to a prepared statement. Services include implementing complete safety programs, FRA Rule Part 236 compliance analysis and documentation generation, system safety design assessment, safety hazard analyses, and review of operating rules and procedures for safety. The Rail Safety Consulting team includes David Rutherford Jr., Jeffrey Twombly, Eric Cutright, Anthony LaPolla, Brian Burns and Kenneth Jackson.



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