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Class I railroads looking to shutdown all operations over looming PTC deadline

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Posted by schlimm on Tuesday, September 8, 2015 10:00 PM

The mandate was passed in the RSIA in 2008, so seven years before the deadline. It was endorsed by the AAR in a written statement by its CEO, Edward Hamberger.

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Posted by schlimm on Tuesday, September 8, 2015 9:56 PM

oltmannd

 

 
schlimm
The UP was in the forefront of developing PTC here.

 

No.  BN and CN took the lead, with CSX pushing from behind.

 

You are right.  However, in the 1990s, UP and GE did work on a moving block system called PTC - Precision Train Control, but abandoned it.

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Posted by Euclid on Tuesday, September 8, 2015 9:18 PM
Falcon48

I agree that the railroads will not likely be "shutting down".  The most likely scenario is that Congress, being the reasonable institution it is, is going to be sensible and extend the PTC mandate (I also still believe in the Tooth Fairy).

But if Congress isn't sensible (imagine that) and doesn't extend the mandate, I still don't think that any railroad is going to "shut down", for the reasons discussed in my earlier note.  Rather, I think that several (perhaps all) railroads will stop providing TIH service and stop providing, or hosting, passenger service.  My impression is that neither of these services are considered particularly desireable by commercial freight railroads, and they wouldn't be crying in their beer if one or both of them had to be discontinued because of the PTC mandate. 

 

 
As I understand it, the railroads may refuse service on non-compliant operations.  The response to my question here seems to be that the issue ends there, and the railroads will probably choose not to refuse service. 
However, it is not just that they have the option to refuse service.  They also are breaking the PTC law if they operate in non-compliance after the deadline.  So to be legal, they have no option but to cease operation and refuse service. 
Is this not correct?
Here is an article with a following quote that confirms that if railroads do not stop service, they will be breaking the law:
 
“Without extension, many passenger and freight railroads will be unable to meet the current unrealistic deadline of Dec. 31, 2015, and would be forced to decide between stopping service and operating in violation of the law.” 
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Posted by edblysard on Tuesday, September 8, 2015 8:52 PM
 He's disgruntled and embittered?
All this time I thought he was a miscreant and a malcontent, but now.....

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Posted by ouibejamn on Tuesday, September 8, 2015 8:52 PM

schlimm
Perhaps such is the expected response of a disgruntled, embittered worker?

Naww, just another day on the Geezernet.

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Posted by schlimm on Tuesday, September 8, 2015 8:46 PM

BaltACD

 

 
schlimm
BaltACD
schlimm

The rails have resisted this for 40+ years.  They've known the deadline was there for 4 years.  Sometimes threats are needed for foot draggers.

Bovine Excriment

Real professional language.

 

Professional language for a professional troll.

 

Sorry your language is so inadequate that you can only make specious, ad hominem attacks to comments that are not directed at you personally. Perhaps such is the expected response of a disgruntled, embittered worker?

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Posted by Paul_D_North_Jr on Tuesday, September 8, 2015 8:33 PM

In response to Falcon48's post above:

Well said - Bow

The only contra argument I can think of is this: Amtrak or such a shipper of hazmat could take the position that the railroad had an obligation to install PTC by the deadline, and that Amtrak/ shipper should not be disadvantaged by the railroad's failure to comply by then.  The PTC mandate trumps any tariff or contract of carriage.  So if the railroad can't actualy perform, then Amtrak/ the shipper is entitled to appropriate monetary damages. 

I too doubt that a court will order "specific performance" (as a court of equity) - i.e., for the railroad to actually move the hazmat or Amtrak train.  Instead, the court will likely act as a "law court" and say that the remedy of monetary damages is sufficient to make the aggrieved party "whole".  (The reasons for this would get us bogged down in a lot of legal theory.)      

If such a shutdown - or even the threat of it - comes to pass, the doctrines of impossibility, commercial impracticality, anticipatory breach of contract, force majeure, 3rd-party (govt.) interference with contract rights, mutual and/ or unilateral "mistake" or assumption/ allocation/ knowledge/ control of the risk of this, etc., will get a major workout in the courts.

- Paul North.     

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Posted by Falcon48 on Tuesday, September 8, 2015 8:29 PM

I agree that the railroads will not likely be "shutting down".  The most likely scenario is that Congress, being the reasonable institution it is, is going to be sensible and extend the PTC mandate (I also still believe in the Tooth Fairy).

But if Congress isn't sensible (imagine that) and doesn't extend the mandate, I still don't think that any railroad is going to "shut down", for the reasons discussed in my earlier note.  Rather, I think that several (perhaps all) railroads will stop providing TIH service and stop providing, or hosting, passenger service.  My impression is that neither of these services are considered particularly desireable by commercial freight railroads, and they wouldn't be crying in their beer if one or both of them had to be discontinued because of the PTC mandate. 

 

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Posted by Euclid on Tuesday, September 8, 2015 8:13 PM

NKP guy

 The railroads won't be shutting down.

Why do I think this way?  Several reasons:  First, it's not in anyone's interest,...  

Well it is in someone's interest.  It is in the interest of the railroads if they want to abide by the law if they are non-compliant when the deadline arrives.  Not only is it in their interest, it is required if they want to follow the law.  

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Posted by NKP guy on Tuesday, September 8, 2015 8:02 PM

I suggest we all take a deep breath and slowly exhale and relax.  The railroads won't be shutting down.

Why do I think this way?  Several reasons:  First, it's not in anyone's interest, but rather potentially disadvantageous to several parties.  Second, the Administration is not going to allow this sort of major disruption to the economy.  They'll leave that to the GOP and the up-coming budget battle and looming gov't shutdown (what will this be?  Number 17?  23?).

This "issue" is an example of what my inner-city students in 1970 termed "sellin' wolf tickets."  Translation:   All for show; ain't gonna happen.

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Posted by JOHN MEHRLING on Tuesday, September 8, 2015 7:09 PM

Will Amtrak, on the track that they own, be compliant by 1/1/16?

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Posted by Randy Stahl on Tuesday, September 8, 2015 6:54 PM

I would say that if the government dug thier heels in , railroads jobs would be hard to come by.

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Posted by Euclid on Tuesday, September 8, 2015 6:29 PM

I can understand the argument that they have the right or even the legal obligation to shut down non-compliant operations.  But what happens if they do?

Does the government not realize that operating non-PTC compliant operations after the end of the year would be illegal?  If they come to that realizaton only after the railroads shut down, will the government admit that they made a mistake and withdraw the mandate?

If they do realize that operating non-compliant operations after the deadline is illegal, what then do they expect the railroads to do?

It seems like a standoff with no workable positions for either side to take.  

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Posted by Falcon48 on Tuesday, September 8, 2015 6:13 PM

First of all, an important disclaimer.  I've mentioned in some other posts that I have a Class I railroad background (I'm retired now).  But I want to make it clear that I have absolutely NO inside information on what any railroad may be planning to deal with the PTC deadline and I have had NO discussions with any of my industry contracts about the subject (if I had I wouldn't be writing this post). I'm speculating, just like everyone else.

That out of the way, I would be very surprised if any railroad totally shut down if the PTC mandate isn't extended.  There's no reason to do that.  The PTC mandate requires installation of PTC on rail lines that carry TIH or intercity/commuter passenger operations.  A railroad that eliminates those operations is in compliance with the mandate.  

But, you may ask, how can they do that?  What about the common carrier obligation? Don't they have to carry whatever may be offered to them?  Well, no. The letter from STB Chairman Elliot mentioned in the link provided in CMSTPnP's post alludes to this.  As he states, the common carrier obligation is not absolute, and railroads can suspend service for various reasons, including safety.  There's nothing shocking or new about this.  In fact, the case law on the common carrier obligation makes this quite clear.  A railroad doesn't have a common carrier obligation to handle hazardous commodities in ways that violate Federal rail safety laws or regulations.  There are many commodities prohibited in rail shipment by Federal rules.  There are many others that a railroad is obligated to refuse if the railroad knows that they aren't "packaged" in accordance with Federal rules.  In this case, the effect of the PTC mandate is to tell the railroad that it's unlawful to handle TIH over a line that isn't equipped with PTC. If it's unlawful, then there's no common carrier obligation to do it.  It's no different than if a shipper demanded a railroad handle a hazmat shipment in a car that couldn't lawfully be used for the shipment.  There's no common carrier obligation to handle it.

In the case of passenger services, there isn't any "common carrier obligation" to provide these services (there used to be, but not anymore).  There are, however, a whole bunch of contracts providing for various entities to provide these services, or to host passenger services provided by other entities (like Amtrak on a host freight railroads).  But a Federal law which makes it unlawful to provide these services over lines not equipped with PTC should trump any contractual commitments like this.  Think about it - is a contract to rob a bank enforceable? Of course not.  Why? It's unenforceable because it's unlawful to rob a bank.  A contract to provide passenger service over a non-PTC equipped line should be similarly unenforceable in the face of a Federal law declaring the operation unlawful.

Of course, a railroad that attempted to cease TIH or passenger service in response to the PTC mandate would face lots of litigation.  It might even be forced by a court or a regulatory authority to continue providing some of these services in the face of the PTC mandate.  I think most courts would be cautious about mandating services that violate the PTC mandate.  But, even if they did, a railroad that's forced to provide unlawful services is in a better position than a railroad which does so voluntarily.

Bottom line, if Congress doesn't extend the mandate, I wouldn't book any Amtrak trips for after Christmas.   

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Posted by Euclid on Tuesday, September 8, 2015 5:49 PM
So here is what I want to know.  When the railroads shut down their freight hauling operations where non-PTC compliant at the end of this year, what will happen next?
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Posted by MATTHEW HASKETT on Tuesday, September 8, 2015 5:32 PM

She has no idea how this will affect the railroads and the US economy.

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Posted by n012944 on Tuesday, September 8, 2015 5:26 PM

Buslist

 

 
schlimm

The rails have resisted this for 40+ years.  They've known the deadline was there for 4 years.  Sometimes threats are needed for foot draggers.

 

 

 

And of course the lack of available equipment and frequencies, nor the inability for defense/aerospace firms (Lockheed Martin and GE Harris) to produce a workable system doesn't contribute.

 

 

Now now, don't let the facts get in the way of Schlimm's rant

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Posted by zugmann on Tuesday, September 8, 2015 4:49 PM

oltmannd
Meh. Had the RRs been more active in exanding train control technology over the past 40 years, they probably could have headed off PTC legislation at the pass and built out a system to their own specs at their own pace.

Exactly.  I feel not one bit of sorrow for these railroad companies.  They knew this stuff was coming years ago.  Is safety first more than a slogan?

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

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Posted by Norm48327 on Tuesday, September 8, 2015 2:05 PM

BaltACD
Professional language for a professional troll.

Thumbs Up Thumbs Up

Norm


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Posted by oltmannd on Tuesday, September 8, 2015 1:56 PM

schlimm
The UP was in the forefront of developing PTC here.

No.  BN and CN took the lead, with CSX pushing from behind.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by oltmannd on Tuesday, September 8, 2015 1:55 PM

schlimm

The rails have resisted this for 40+ years.  They've known the deadline was there for 4 years.  Sometimes threats are needed for foot draggers.

 

Meh.   Had the RRs been more active in exanding train control technology over the past 40 years, they probably could have headed off PTC legislation at the pass and built out a system to their own specs at their own pace.

But, the law as written?  The RRs had no chance to comply - even without the FCC snafu.  The RRs truly are pedalling as fast as they can go - expect Connecticut where only a "good faith effort was made".

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by oltmannd on Tuesday, September 8, 2015 1:51 PM

nyc#25

The "government bozo" is Sara Fienberg who is the acting adminstrator

of the FRA.  She apparantly has no idea of how a shutdown would

affect the commerce of the nation.

 

No.  It's Congress that has to legislate an extension.  FRA just gets to enforce it.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by Randy Stahl on Tuesday, September 8, 2015 1:24 PM

What ever it takes to get some time off.. I need a vacation ! Shut em down .

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Posted by BaltACD on Tuesday, September 8, 2015 1:13 PM

schlimm
BaltACD
schlimm

The rails have resisted this for 40+ years.  They've known the deadline was there for 4 years.  Sometimes threats are needed for foot draggers.

Bovine Excriment

Real professional language.

Professional language for a professional troll.

Never too old to have a happy childhood!

              

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Posted by schlimm on Tuesday, September 8, 2015 12:40 PM

cx500
You mean 1975 when you were the only person in the world to have a GPS helping you drive around, as your wife called on your I-phone to ask you to pick up milk on the way home.

In the late 60s and later, older technologies were discussed.   Development was not necessaritly dependent on wireless and GPS. The German protototype for the LZB system was first tested by Siemens in 1963, with improvements following.  In 1990, 25 years ago, the NTSB put PTC at the top of its list of most wanted transportation safety improvements. The UP was in the forefront of developing PTC here.

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Posted by schlimm on Tuesday, September 8, 2015 12:24 PM

BaltACD

 

 
schlimm

The rails have resisted this for 40+ years.  They've known the deadline was there for 4 years.  Sometimes threats are needed for foot draggers.

 

Bovine Excriment

 

Real professional language.

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Posted by cx500 on Tuesday, September 8, 2015 11:49 AM

schlimm

The rails have resisted this for 40+ years.  They've known the deadline was there for 4 years.  Sometimes threats are needed for foot draggers.

 

You mean 1975 when you were the only person in the world to have a GPS helping you drive around, as your wife called on your I-phone to ask you to pick up milk on the way home.  When operating trains with DPU units the receiving equipment required a separate railcar to hold it, and that was for something comparitively simple.

It is easy to forget just how recently most of the technology we now take for granted was developed, and is rapidly continuing to evolve.  And much of that is critical to making PTC, as legislated, feasible.  It is better to take the necessary time to ensure the safe, robust, result that is absolutely required.  Hastily made decisions and designs often prove unsatisfactory in the long run.

John

John

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Posted by BaltACD on Tuesday, September 8, 2015 10:44 AM

schlimm

The rails have resisted this for 40+ years.  They've known the deadline was there for 4 years.  Sometimes threats are needed for foot draggers.

Bovine Excriment

Never too old to have a happy childhood!

              

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Posted by caldreamer on Tuesday, September 8, 2015 10:40 AM

Euclid:

  There was a post on the CNN online site that stated this fact.  Let's see what happens when the house of representatives gets back to wrok/  Untill then I would not worry about it.

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Posted by diningcar on Tuesday, September 8, 2015 10:36 AM

Of course this Administration diligently inforces all statutes, no exceptions, so we should expect them to enforce this one.

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