U.S. COAL REVIEW December 11, 2006
Joint Line Roars with Record November, Keeps Utilities Flush
Average daily Joint Line Train Loadings set a record in November. The blistering pace certainly is contributing to the inability of coal producers throughout the country to knock buyers off their comfortable inventory perch.
Burlington Northern Santa Fe and Union Pacific loaded a record average of 67.1 trains per day on the Joint Line in Wyoming in November. The previous record of 66.5 trains per day was set in June of this year.
In fact, as winter energy needs near a peak, Union Pacific is moving record trainloads of coal from Wyoming 's Southern Powder River Basin and coal-producing mines in Colorado and Utah .
During November, Union Pacific moved 20 million tons of coal from the SPRB and Colorado and Utah , a rise of nearly eight percent over November 2005. During the month, the railroad posted its third best average daily performance in the SPRB, averaging35.7 trains per day.
The movement of Colorado and Utah coal recorded its best daily train numbers of the year in November, averaging 11.6 trains per day.
Union Pacific also set train size records during the months of October and November. UP trains moving coal out of the SPRB averaged 15,135 tons each - an increase of 200 tons over last years annual average. A new wheel-changing process at Bailey Yard in North Platte , Nebraska , helped UP achieve the increased tonnage record. The enhancement has the potential to increase train tonnage out of the SPRB by more than 750,000 tons next year with no additional train starts.
"These records and process improvements are just two more examples of how committed Union Pacific employees are to meeting our customer's needs," said Jim Young, president and CEO. "Every day our employees are on the job to meet the demand for coal, and we will continue to look for new ways to handle rising demand."
Additional rail line improvements are expected to boost the railroad's coal capacity in 2007. The completion of a third main line south of Reno Junction, WY, and five new train landing tracks just completed at the mines will help boost capacity on the Joint Line owned by UP and Burlington Northern Santa Fe to more than 375million tons. During 2006 the Joint Line is expected to support more than350 million tons of coal.
Average BNSF daily train loadings for the PRB, including Wyoming and Montana mines, totaled 49.3 trains per day the week ended December 3, compared with an average of 44.3 trains per day for the week ended December 4, 2005. Various mine issues reduced loadings an average of 5.6 trains per day for the 2006 week, the railroad noted.
Year-to-date through December 3, BNSF loaded a total daily average of49.5 trains in the PRB, up 10.0 percent from the 45.1 trains loaded through the same period in 2005.
System wide, BNSF loaded a total of 264.3 million tons of coal through December 3, up 10.4 percent from the 2005 year-to-date total of 239.5 million tons. BNSF surpassed full-year 2005 total system coal tonnage of 259.2 million on November 27.
Further improvements, including construction of a third main line north of Reno Junction and a fourth main line south of Nacco Junction, WY, are expected to boost Joint Line capacity to more than 400 million tons per year. Grading is already underway on both of these projects, and completion is expected in late 2007.
Apart from the Joint Line, in its newest construction project update, BNSF noted that turnouts are being installed on six miles of new second main track between Bayard and Degraw , NE. The additional trackage is scheduled to go into service in late December.
Final grading for 14 miles of new second main track between Angora and Northport , NE , has been completed. Seven miles of track have been laid, and are scheduled to go into service in January 2007.
Rough grading for 6.4 miles of new second main track between Ashland and South Bend , NE , has been completed. Final grading is scheduled for completion by the end of this year, and the new track is expected to go into service in the second quarter of 2007.
eolafan wrote:Nothing newsworthy here...anybody who gets trackside frequently these days can tell this is true simply by counting coal cars and comparing the count with last years count....much higher, and it won't be slowing down for as long as we and our children and grandchildren, etc., etc., etc. are living on this earth.
Don't bet the barn on that one!
Remember, back in 1890, the major pollution problem in New York City (and other metropolitan areas) was the accumulation of horse droppings in the streets. Times and technology have changed, and will continue to change at an ever-increasing pace.
Chuck (modeling Central Japan in September, 1964 - including a colliery)
Isn't there a thread stating that RRd's can't keep up with demand for coal? How does this article bode with that one?
doghouse wrote: Isn't there a thread stating that RRd's can't keep up with demand for coal? How does this article bode with that one?
doghouse wrote:Isn't there a thread stating that RRd's can't keep up with demand for coal? How does this article bode with that one?
If coal trains are at an all-time high, you get this thread. If demand for coal is even higher, you get the other thread. Both threads are basically factual.
Datafever wrote: doghouse wrote: Isn't there a thread stating that RRd's can't keep up with demand for coal? How does this article bode with that one? If coal trains are at an all-time high, you get this thread. If demand for coal is even higher, you get the other thread. Both threads are basically factual.
Thats kinda my problem; I understand both threads and both arguements, at least to me, carry some water. Could it be both?
Datafever wrote:Could it be both? It is both!!! I'm not sure why you see a paradox. The amount of coal being shipped is at record levels. The demand for coal is at record levels. Even though shipments are up, they are not up high enough to keep up with demand.
If it's "they are not 'up' high enough to keep up with demand," then which one is it? See the 'paradox'? Glass half full or glass half empty?
doghouse wrote: Datafever wrote:Could it be both? It is both!!! I'm not sure why you see a paradox. The amount of coal being shipped is at record levels. The demand for coal is at record levels. Even though shipments are up, they are not up high enough to keep up with demand. If it's "they are not 'up' high enough to keep up with demand," then which one is it? See the 'paradox'? Glass half full or glass half empty?
PRB coal deliveries are running at about 86% of current demand.
futuremodal wrote: PRB coal deliveries are running at about 86% of current demand.
Is that just a temporary number, as demand is at its peak level as powerplants stockpile for winter ?
The additions planned by the railroads for 2007 will put their capacity to the point of being able handle 100% of the orders at the current level. Of course if the mines accept purchase contracts or spot orders for for total quantities greater than the new capacity figure of over 400 million tons, I guess the capacity shortage continues.
Of course the DME is poised to come to the rescue as soon as they get the loan! Right?
"We have met the enemy and he is us." Pogo Possum "We have met the anemone... and he is Russ." Bucky Katt "Prediction is very difficult, especially if it's about the future." Niels Bohr, Nobel laureate in physics
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