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An hour in the life of Jim Squires

Posted 6 days ago by Fred Frailey
In an office high above the streets of Norfolk, Va., a handsome, middle-aged man picks up his phone on the second ring. “Squires.” “Jim! It’s Hunter!” “Hunter, you’ve got to quit calling me. I’ve told you three times today my board wants us to keep going it alone. It’s our best option to build shareholder . . .” “Ah Jim, I am only calling because your directors don’t know all the facts.” “Like what?” ...

Finding Nemo

Posted 9 days ago by Fred Frailey
Today is nasty, windy and rainy. So to pass the time in western Illinois, I’m looking for Nemo. Not Pixar’s fantasy movie Nemo (I’m not that stupid), but the real one. Well, that’s not right, either. My Nemo is fictional, too. There never was a town of Nemo, because the population of the place never made it from 0 to 1. And even the physical presence of Nemo has been gone for, hmmm, about half a century. Now that I’ve confused you, go to Google Maps and type: Ormon...

L'affaire NS: The end game

Posted 11 days ago by Fred Frailey
I am going to make a prediction: A purchase of Norfolk Southern by Canadian Pacific Railway will never make it to the Surface Transportation Board for its merits to be approved or rejected. The reason is simply this: Neither BNSF Railway nor Union Pacific can allow this to happen. It is inconceivable that either of the western rail giants would let one of the two eastern railroads be snapped up and not be part of that deal. Because if the unthinkable happens, then there is only CSX Transportatio...

Is this merger doable (or worth it)?

Posted 14 days ago by Fred Frailey
Will they or won’t they? More to the point, should they? They of course are Canadian Pacific and Norfolk Southern railways, reported this week to be considering a merger in which CP would buy the Virginia-based NS. CP’s traffic growth has sort of flatlined, meaning that the best way to grow may be to buy the carloads, in this instance, a whole railroad. Norfolk Southern is not in an enviable position. It’s top executives are all new to their roles, and I sense there is some dri...

Mr. Squires, you have a visitor

Posted 16 days ago by Fred Frailey
Well, here we go again. Just when I am trying to decide which root vegetables should adorn our Thanksgiving table, Hunter Harrison sneaks past all of us and steals Norfolk Southern! Okay, he hasn’t stolen Norfolk Southern. Or even bought it or merged with it. Yet. But this is the real thing, folks. We’ve been asleep at the switch, and Mrs. Harrison’s boy Hunter, the chief executive of Canadian Pacific, showed up with roses to give young Jim Squires, the chief exec of NS. Squir...

Where in the world is Fred?

Posted 16 days ago by Fred Frailey
Thank you for missing me, for the emails asking if I were sick or angry or just tired. I did not realize the abundance of your affection. When I agreed to blog several years ago, I told Trains Magazine editor Jim Wrinn I’d post something online twice a week—that is, if I had anything to say. And that explains my absence; I haven’t had anything to say. Something else got in the way. After 30 years in one place, Cathie and I decided this spring to uproot ourselves from our rambl...

A PTC "fix" won't be easy

Posted 2 months ago by Fred Frailey
I’ll begin with this observation: If our political system can shut down the U.S. government repeatedly, it’s altogether possible it can allow the U.S. railroad network to close up shop, too, however briefly. That said, I think rational minds will ultimately prevail and extend the deadline to install positive train control for another three years past this December 31. Just don’t bet your last buck on it, and I’m here to tell you why. As background, Congress in 2008 enact...

BNSF: We will shut down

Posted 2 months ago by Fred Frailey
In a candid letter to a U.S. senator, BNSF Railway’s chief executive, Carl Ice, said September 9 that BNSF would in effect shut down most of its network rather than violate a federal law mandating that positive train control be operational by December 31. CSX Transportation has said it, too, questions whether it should violate federal laws, and other Class I carriers are likely to follow suit. This set up the real possibility of a national transportation crisis at the beginning of 2016. Th...

Thinking the unthinkable

Posted 2 months ago by Fred Frailey
Cathie and I rode the Cape May/Lewes Ferry across Delaware Bay this weekend to attend a wedding. It’s a relaxing, 90-minute trip between Delaware and the southern tip of New Jersey. On the way back, my mind got to wandering: What a perfect setup for a terrorist! You drive your car onto the boat. Once well away from shore you take your weapons out of the trunk and there’s nothing anyone can do to stop you doing what happens next. Kind of like what could happen on a long-distance trai...

Who carries the coal in 2015

Posted 3 months ago by Fred Frailey
The slump in coal traffic on railroads is abating a bit, and about time. Loadings through Week 33 of 2015 (last week) showed year-to-date coal declines  (versus last year) of 12 percent at CSX Transportation, 23 percent at Kansas City Southern, 17 percent at Norfolk Southern, and 16 percent at Union Pacific. Only two Class I lines showed year-to-date coal increases, BNSF Railway (up 3% ) and Canadian Pacific (up 7 percent). Still, the skid has knocked a hole in railroad revenues so big that...

My Hypocrite of the Year Award

Posted 3 months ago by Fred Frailey
I’ve never had a high opinion of Connecticut politicians, of either party. I have developed a particular urge to kick in the ass that state’s senior U.S. senator, Richard Blumenthal, for being a publicity hound and hypocrite. That urge began after the overturning in December 2013 of a Metro North Railroad train on a sharp curve at Spuyten Duyvil, N.Y., resulting in the death of four passengers. Blumenthal and fellow Democratic Senator Chuck Schumer (they’re known to some repor...

The wreck of old 54 (Part II)

Posted 3 months ago by Fred Frailey
As the two derricks picked up the wrecked locomotives and cars from the October 12, 1955, head-on collision three miles from my home in northeast Texas (go here to read the first installment of “The Wreck of Old 54”), they were loaded onto flat cars and stowed on the short siding in Sulphur Springs. That weekend, I stood beside the depot and watched as Kansas City Southern Lines GP7 locomotive 151 towed a lengthy hospital train toward Shreveport. The shoofly at the accident site was ...

The wreck of Old 54 (Part I)

Posted 3 months ago by Fred Frailey
(The following account is dedicated to the memory of my friend Harold K. Vollrath, a railroader's railroader who died this month at age 92. Harold, or HKV to those who saw his initials on train orders, was dispatching the L&A Division the early morning that this collision occurred but was not involved in the mystery leading up to it. To Harold fell the job of collecting information, notifying everyone and ordering out the derricks and cleanup crews.) For me, the tale begins at the breakfast...

The scoop on my favorite train

Posted 3 months ago by Fred Frailey
Train name: VIA Rail Canada's Canadian. Length of route: 2,775 miles (give or take). Duration of trip: 82 hours (in theory). Car count leaving Vancouver August 11, 2015: 25 cars, including 14 regular sleepers and 1 Prestige class sleeper. Lounge and dining cars: 7 cars, including four dome lounges, two diners and 1 Panarama glass-roofed lounge. Passengers leaving Vancouver: 372, including 111 in the two coaches, 253 in regular sleepers and 8 in the Prestige car. On-board service staff: 32,...

The making of engineers and conductors

Posted 3 months ago by Fred Frailey
A month ago, in The Agony of Changing Amtrak, I mentioned the frustrations of New Haven-based Amtrak engineer Joe McMahon. Fed up with the incompetence he witnessed around him, by union and management employees alike, he tried to interest Amtrak officers in a more rigorous and OJT-intensive training program for train and engine people. Top management showed some interest, but in meetings with lower-level folks it became apparent to McMahon that he had run up against the Not Invented Here wall. N...

Whatever happened to service?

Posted 3 months ago by Fred Frailey
  The quarterly earnings call with analysts in July was something of an embarrassment for David Starling, chief executive of Kansas City Southern Railway. I mean, what excuse matters when carloadings fall 6 percent versus a year earlier and you still have huge delays for lack of crews to move less traffic? The problem centered on KCS lines in Mexico, where hiring and qualification of new train service employees apparently fell far behind the attrition rate. Customers of high-value cargos f...

Is it the air in Britain?

Posted 4 months ago by Fred Frailey
At my age, it’s hard for my eyebrows to go up in alarm. But they really started flickering upon reading a dispatch from It seems a man, Robin Lee, 45, was arrested for charging his cell phone on a London Overground train. Say what? And we think Amtrak is screwed up. . . . London Overground is a relatively new name for a network of suburban rail lines radiating from London. The unfortunate Mr. Lee casually plugged his iPhone into an outlet aboard a train from Hackney Wic...

Politically correct railfans

Posted 4 months ago by Fred Frailey
Jack runs a company that sells supplies to competitive swimmers. He advertises in Jill’s magazine, which is devoted to competitive swimming. And Bart is a competitive swimmer. On Facebook one day, Jack says that Bart is a alcohol-swilling has-been of a swimmer. Bill and Bob are admirers of Bart and subscribers to Jill’s magazine. They are angered by Jack’s remark and pressure Jill not to accept Jack’s advertising. Jill asks, what in the dickens do I have to do with this?...

Free speech is not divisible

Posted 5 months ago by Fred Frailey
This is something I do not want to write, because a lot of unpleasantness proceeds it. Begin with the derailment of Amtrak train 188 at Frankford Junction, Pa., in May. We know a lot about that multi-fatality accident but we really do not know why it happened. Add to that an online comment by a small advertiser to Trains Magazine that was disparaging of the engineer of train 188, to the effect that he was a “foamer,” which as we all know is a railfan first and foremost. The advertis...

The agony of changing Amtrak

Posted 5 months ago by Fred Frailey
Why is change so hard to bring about in life? The status quo is like a dead weight that defies being moved. You see this all the time in the railroad business. But you see it up close and personal at Amtrak. At every level, our national passenger train corporation cries out for change, for reform. Let’s start with the Northeast Corridor. The position Amtrak is in becomes ever more untenable. It’s responsible for the NEC’s maintenance and improvement, yet every year the politic...

Railroads without coal

Posted 5 months ago by Fred Frailey
Lehigh Valley. Lackawanna. Reading. Jersey Central. And let’s not forget the Old Woman, the New York, Ontario & Western. What did they have in common? Why, coal, of course. They were the kings and queens of anthracite, and when the fortunes of this hard, high-carbon substance waned in the Twentieth Century, so did the futures of each of these railroads, never to recover. All went bankrupt. Today, you’d almost think bituminous coal is suffering the same fate. Among the seven Clas...

The idiocy of locomotive cameras

Posted 6 months ago by Fred Frailey
When a company supported by the public trough is caught up in a disaster, the urge to do something dramatic—anything, so as not to just stand there—is understandably strong. So it is that Amtrak has bowed to two U.S. Senate scolds and the National Transportation Safety Board and said it will install inward-facing cameras in the cabs of its 70 new electric locomotives used in the Northeast Corridor. Said Senator Richard Blumenthal (D-Conn.): “Inward-facing cameras, with the rig...

Media and the railroads

Posted 6 months ago by Fred Frailey
From a friend: “The media reporting (especially CNN, MSNBC, NBC and ABC because CBS has been a bit more cautious talking about things they know nothing about) has been abysmal. Case in point, one reporter saying, ‘The investigators have removed the black box from the first car of the train.’ Uhhh, that would be the locomotive?” Okay, time out. This is a familiar complaint from people who know way more than the lay person about a specialized subject, in this instance rail...

Rules written in blood

Posted 6 months ago by Fred Frailey
The rules by which trains operate on American railroads were written in blood. As the rail network developed in the 19th century, every accident was a lesson learned -- and brought a new rule to prevent it from happening again. Today the General Code of Operating Rules is a 167-page collection of lessons learned. But even 185 years of experience haven't yet protected railroads from the danger no rule can banish: simple human error. (For the remainder of this commentary, please go to

Railroads and their money

Posted 6 months ago by Fred Frailey
It’s really easy to discover the financial choices made by the Class I railroads. They are laid out for all to see in the annual 10-K reports filed with the Securities and Exchange Commission ( Make a beeline for the Consolidated Statements of Cash Flows, and see for yourself where the money comes from and where it goes. You’ll come upon some surprises. What follows are from the 10-K filings for 2014. BNSF Railway. This Berkshire Hathaway subsidiary generated $6.6 billi...

How NS became the intermodal champ

Posted 6 months ago by Fred Frailey
More than half of the units handled by Norfolk Southern in the first quarter of 2015—51 percent, to be exact—were trailers or containers. That's a first for the Class I railroads. For better or for worse, intermodal is the future of this giant eastern railroad. How it got to this from a standing start, almost, less than 30 years ago is a compelling tale. To quote myself from the cover story in the October 2005 issue of Trains Magazine: “Pre-Conrail [before mid 1999], Norfolk So...

Guess what's Numero Uno?

Posted 6 months ago by Fred Frailey
My first up-close-and-personal experience with intermodal was to watch a 150-car Kansas City Southern freight rumble through little Sulphur Springs, Tex., led by six red, yellow, and black F units and three to five truck trailers atop flat cars. That would be 1958, and even that little beginning impressed this kid. We have come a long way. The week ending April 18, for the first time ever, intermodal units on U.S. railroads exceeded all carload types combined, 280,016 to 276,416. The future arr...

The war over electric brakes

Posted 6 months ago by Fred Frailey
Sometimes it’s helpful to think of modern Class I railroads as collections of separate silos (or maybe moated castles), each jealously guarding its prerogatives. There’s a Track Silo at every headquarters, a Transportation Silo, a Marketing Silo, and a Signal Silo, to name several. They don’t share a lot with each other. I sometimes wonder what would have happened if the industry’s chief financial officers had been given primary responsibility for implementing positive tr...

CSX's kettle boils over

Posted 6 months ago by Fred Frailey
Activist investor Bill Ackman makes a presentation late Monday afternoon at the Ira Sohn Investment Conference in New York, and the buzz going around is that he may reveal a major investment in CSX. That would not surprise me in the least. Ackman's modus operandi is to identify underperforming companies, suggest ways management can do a better job and then go on the attack if he is met by a cold shoulder. I am really interested in learning two things. First, what's his beef with present managem...

CSX has a secret suitor

Posted 7 months ago by Fred Frailey
In the February issue of Trains Magazine I (very rashly) predicted that 2015 would bring an “epic battle” for control over CSX, pitting CEO Michael Ward against activist investor Bill Ackman, whose investment firm Pershing Square Capital Management ousted the leadership of Canadian Pacific in 2012. Months went by. Nothing happened. Actually, one thing that happened is that nobody reminded me of my silly prediction, and I appreciate that. Still, as day followed quiet day, I knew the ...

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