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Hitachi and Alstom Win Order to Build and Maintain High Speed Two Trains in Britain

Alstom (OTC: ALSMY) and Hitachi Rail have today confirmed that the Hitachi-Alstom High Speed (HAH-S) 50/50 joint venture has signed contracts with High Speed Two (HS2) to design, build, and maintain the next generation of very high speed trains for HS2 Phase 1 as part of the £1.97 billion contract, including an initial 12-year train maintenance contract.

The UK’s two leading train manufacturers will deliver Europe’s fastest operational train, capable of operating at maximum speeds of 225mph (360 km/h), significantly reducing journey times for passengers. The fleet will be 100% electric, and be one of the world’s most energy efficient very high speed trains due to the lower train mass per passenger, aerodynamic design, regenerative power and latest energy efficient traction technology.

In a major boost to grow and rebalance the economy, the HAH-S joint venture will manufacture the 54 trains at newly enhanced facilities in County Durham, Derby and Crewe. The award to the British-based firms will protect and create thousands of green jobs and add £157 million GVA to the UK economy for every year of the train building phase.

The new 200m-long, 8-car trains are set to run in Phase 1 of the project between London and Birmingham, and on the existing network, and will dramatically increase capacity and connectivity between towns and cities across the country including Stoke, Crewe, Manchester, Liverpool, Carlisle, Motherwell and Glasgow. They will have a major impact in reducing carbon emissions from transport by encouraging people away from fossil fuelled cars and planes, and onto rail.

Israel Railways Issues Notice to Proceed for Supply of 36 Alstom Traxx locomotives

9 November 2021 – Israel Railways (ISR) has issued a notice to proceed for the supply of additional 36 Traxx locomotives from Alstom (OTC: ALSMY) as part of its framework agreement in 2015 for the supply of 63 electric Traxx and additional 74 double-deck coaches in 2019. 

In September 2015, ISR ordered 62 Traxx 160 km/h P160 AC3 locomotives. The contract also included an option for additional 32 units.

The 36 locomotives will be delivered between April 2023 to October 2024, at a beat rate of two or three locomotives each month and will include unique features and advanced safety features. To date, Alstom concluding the delivery of 27 locomotives to ISR. The delivered locomotives are serving ISR growing electrified network, the locomotives maintained by ISR at the Lod depot with warranty services support by Alstom’s Product Introduction teams. 

The locomotives are powered with 6,000 kW traction suited for ISR electric network of 25kV 50 H. The Traxx electric-locomotive hauled ISR Twindexx Vario red double-deck coaches delivered by Alstom. More than 500 of these double-deck cars are successfully in service in Israel since 2002, providing safe, reliable and comfortable journey to all passengers in Israel.

More than 2,300 Traxx locomotives have been sold around the world in the last 20 years. They are authorized to operate in 20 countries around the world and drive a cumulative total annual mileage of 300 million km. 

Alstom has been contributing to the development of railway systems in Israel for more than 30 years, and everyday hundreds of thousands of Israelis enjoy its products, services, and green and sustainable mobility solutions. The company operates in 6 sites in Israel: the headquarters in Tel-Aviv, a retrofit site and Fleet Maintenance site in Haifa, a vehicle production site in Dimona and a Signaling project in Tel-Aviv and Be’er-Sheva. Alstom retains over 250 employees in Israel and is involved in 8 advanced infrastructure projects, for which it provides passenger coaches and electric locomotives, signaling and integration systems and maintenance services.

Rolls-Royce Strengthens Position in China with New MTU Engine Test Bench

Rolls-Royce (London: RR.L) business unit Power Systems is strengthening its research and development (R&D) capabilities in China with a new test bench for MTU engines at the company’s location in Suzhou. The new test bench was inaugurated as part of an event celebrating 25 years of the Rolls-Royce location’s existence. The R&D test bench can accommodate MTU engines with a power output of up to 3,600 kW and will be used to test parts, engines and complete systems for power generation and industrial applications.

The new R&D test bench in Suzhou will first be used for test runs of gensets based on MTU 16V 4000 engines, starting in 2022. It is suitable for testing a wide range of versions of the versatile Series 4000 engine which is also celebrating its 25th anniversary this year. A further upgrade of the test bench is planned for 2022: The capabilities will be extended to testing MTU Series 2000 engines as well.

The company opened its first facility in Suzhou 25 years ago to provide customers in China with faster and more efficient after-sale services in applications such as railway, marine and power generation. Suzhou later became the third production base for MTU engines globally at that time, responsible for the assembly of MTU Series 2000 gendrive engines. Branches in Beijing, Shanghai and Dalian were also established gradually. In October 2021, the former MTU Engineering (Suzhou) Co.,Ltd. was renamed Rolls-Royce Solutions (Suzhou) Co., Ltd.

With the new test bench, the localization strategy of Rolls-Royce Power Systems in Suzhou is now covering the whole process ranging from sales and services to manufacturing and R&D.

Moving Egypt, A Modern Rail System That Will Transform Everyday Life

Siemens (OTC: SIEGY) Mobility unit will install a comprehensive rail system that will feature the first ever high-speed, electrified main and freight rail line that will transform transportation in Egypt. The initial 660 km line will connect the port cities of Ain Sokhna on the Red Sea to Marsa Matrouh and Alexandria on the Mediterranean and will provide efficient, safe, and affordable transportation for all Egyptians, as well as goods across the country. The Egyptian government has an ambitious plan to invest heavily in a reliable and sustainable 1800 km state-of-the-art rail network that will establish Egypt as a regional leader for transportation and provide an additional boost to the economy.

The 660 km line connecting the Red Sea to the Mediterranean will create a Suez Canal type of link on the tracks. The connection will transport up to 30 million people per year and save up to 50 percent travel time. The electrified line will cut carbon emissions by 70%, in comparison to the current car and bus transportation. Siemens Mobility will deliver its Velaro high-speed trains, Desiro High Capacity regional train sets, and Vectron freight locomotives.

Canadian Pacific and Kansas City Southern File Merger Application With STB

CALGARY, Alberta & KANSAS CITY, Mo.–(BUSINESS WIRE)– Canadian Pacific Railway Limited (NYSE: CP) and Kansas City Southern (NYSE: KSU) have announced they have jointly filed a railroad control application with the Surface Transportation Board (“STB”) regarding the proposed transaction to create Canadian Pacific Kansas City (“CPKC”), the only single-line railroad linking the United States, Mexico and Canada.

The comprehensive control application provides an overview of the proposed operational integration of the CP and KCS rail networks, the impact of that consolidation on the companies’ finances and labour needs, and the anticipated competitive and other benefits that will flow from providing shippers with new and better transportation alternatives. Information in the filing outlines the public and customer benefits a CP-KCS combination would bring, including more efficient north-south trade arteries to support the interconnected supply chains of the United States, Mexico and Canada.

In addition to the central foundation of the transaction to invigorate transportation competition and support economic growth across North America, the CP-KCS combination will generate many other public benefits, including:

  • The creation of more than 1,000 direct new jobs system-wide, including approximately 760 in the United States, over the next three years brought about by expanded rail operations across the combined network.
  • Capital investments in new infrastructure of more than USD$275 million1 over the next three years to improve rail safety and capacity of the core north-south CPKC main line between Louisiana and the Upper Midwest.
  • Avoidance of more than 1.5 million tons of greenhouse gas (GHG) emissions within five years due to the improved efficiency of CPKC versus current operations.
  • Diverting 64,000 long-haul truck shipments to rail annually with new CPKC intermodal services, eliminating another 1.3 million tons of GHG emissions over the next two decades, saving $750 million in highway maintenance costs.

Rail customers will not experience a reduction in independent railroad choices as a result of the CP-KCS combination. The joint control application reiterates the applicants’ commitment to keep all existing freight rail gateways open on commercially reasonable terms, including the Laredo gateway between the United States and Mexico, and shows how customers will not lose competitive routings because no new regulatory “bottlenecks” are being created. It also describes how the combined company will compete aggressively to attract traffic to its network via new single-line lanes between Canada, the Upper Midwest and the Gulf Coast, Texas, and Mexico.

More than 960 stakeholders, including more than 440 shippers, 186 smaller railroads, dozens of public officials, eight major ports, railroad labor unions representing both CP and KCS employees and 289 rail industry suppliers have written letters to the STB supporting CP’s proposed combination with KCS.

CP has agreed to acquire KCS in a stock and cash transaction representing an enterprise value of approximately $31 billion, which includes the assumption of $3.8 billion of outstanding KCS debt. The transaction, which has the unanimous support of both boards of directors, values KCS at $300 per share, representing a 34 percent premium, based on the CP closing price on Aug. 9, 2021, the date prior to which CP submitted a revised offer to acquire KCS, and KCS’ unaffected closing price on March 19, 2021.2

The transaction is subject to approval by shareholders of each company along with satisfaction of customary closing conditions, including Mexican regulatory approvals. Shareholders are expected to vote on the transaction later this year.

CP’s ultimate acquisition of control of KCS’ U.S. railways is subject to the approval of the STB. In April 2021, the STB determined it would review the CP-KCS combination under the merger rules in existence prior to 2001 and the waiver granted to KCS in 2001 to exempt it from the 2001 merger rules. In August 2021, the STB reaffirmed that the pre-2001 rules would govern its review of the CP-KCS transaction. On Sept. 30, 2021, the STB confirmed that it has approved the use of a voting trust for the CP-KCS combination.

The STB review of CP’s proposed control of KCS is expected to be completed in the second half of 2022. Upon obtaining control approval, the two companies will be integrated fully over the ensuing three years, unlocking the benefits of the combination.

While remaining the smallest of six U.S. Class 1 railroads by revenue, the combined company would have a much larger and more competitive network, operating approximately 20,000 miles of rail, employing close to 20,000 people, and generating total revenues of approximately $8.7 billion based on 2020 actual revenues.

For more information about the benefits of the CP-KCS combination, visit futureforfreight.com

Union Pacific Railroad Collaboration and Visibility Provide Supply Chain Solutions

LOS ANGELES, CALIFORNIA, OCTOBER 27, 2021 – The Port of Long Beach (POLB), the Utah Inland Port Authority (UIPA), and Union Pacific Railroad (NYSE: UNP) announced today a bold initiative that brings rapid relief from existing port congestion by optimizing rail deliveries between California and Utah.

The initiative is the first implementation of an agreement between POLB and UIPA that focuses on reducing congestion and cost associated with cargo movement through the corridor by optimizing the existing on- and near-dock rail system of the Port of Long Beach to reduce dwell times and improve the speed and consistency of rail deliveries to and from Utah.

Millions of TEUs of international goods are imported to or exported from the Intermountain West annually, but only 10% of this cargo currently moves by rail. This initiative aims to provide consistent, reliable movement of cargo on rail that improves fluidity and reduces delays of shipments already set to come to the Intermountain region, rather than increase cargo volume.

Loading 100 intermodal rail cars equates to 300 trucks off the road. An analysis by the Association of American Railroads concluded railroads are, on average, four times more fuel efficient than trucks and moving freight by rail instead of truck lowers greenhouse gas emissions by 75 percent.

Improving visibility of cargo is also a key component to untangling the supply chain and improving capacity. UIPA has announced the Intelligent Crossroads Network (“ICN”), a private 5G and artificial intelligence network built in partnership with QuayChain Technologies that will allow cargo tracking, monitoring and planning, and even greater efficiencies for users throughout the corridor connecting Long Beach and Utah.

Amtrak CEO Bill Flynn’s Message on Empire Builder Train Derailment in Montana

We are in mourning today for the people who lost their lives due to the derailment of the Empire Builder train Saturday, near Joplin, Montana, on the BNSF Railway, as well as the many others who were injured. We have no words that can adequately express our sorrow for those who lost a loved one or who were hurt in this horrible event. They are in our thoughts and prayers.

We are fully cooperating with the investigation, working closely with National Transportation Safety Board, the Federal Railroad Administration, local law enforcement and response agencies. We share the sense of urgency to understand why the accident happened; however, until the investigation is complete, we will not comment further on the accident itself. The NTSB will identify the cause or causes of this accident, and Amtrak commits to taking appropriate actions to prevent a similar accident in the future.

Amtrak’s immediate and sustained focus is on doing everything we can to help our passengers and crew, especially the families of those who were injured or died, at this painful and difficult time. Our Incident Response Team has been initiated. We have sent emergency personnel and Amtrak leadership to the scene to help support our passengers, our employees and their families with their needs. Individuals with questions about their family and friends aboard this train should call 800-523-9101. We have also established a Family Assistance Center in Great Falls, Montana, and we will have family assistance liaisons at that site to reach out to those injured and their families to make sure they get what they need. We have dispatched nurse case managers to support those hospitalized. As soon as Amtrak has permission, we will access the accident site to retrieve the personal effects of our passengers and crew.

We want to extend our deep gratitude and sincere appreciation to the Joplin and greater Liberty County communities and other Montana counties and their selfless first responders, hospital staff and law enforcement for their immediate and ongoing help to support of all those aboard the Empire Builder for responding with such urgency, compassion and patience.

Alstom to Provide Additional 64 Commuter Trains to Hamburg, Germany

Alstom and S-Bahn Hamburg GmbH have signed a contract for the delivery of an additional 64 Class 490 S-Bahn trains. The order is an option from a framework contract signed in 2013 and is valued at around 500 million euro. 

As with the previous trains, passengers will enjoy the proven amenities of these three-car electric multiple units, but with the addition of some new improvements to better meet the needs of Hamburg’s passengers. For example, the new S-Bahn train’s middle cars will feature a multipurpose area with room for bicycles, luggage, and dedicated spaces to accommodate passengers with limited mobility.

However, the train’s most significant innovation will be invisible to passengers. For the first time in Germany, S-Bahn trains will be equipped with the European Train Control System (ETCS) Baseline 3 Release 2 and automated train operation (ATO) technology. Together, these technologies will ensure denser and more frequent service and enable Hamburg to provide more fluid transport while increasing the overall number of train journeys. In addition, the flexibility of Hamburg’s new S-Bahn trains means that they will couple with the 82 Class 490 S-Bahn trains already in service.

Photo of main Hamberg train station from author’s visit in 2016.

This order marks Germany’s first implementation of ATO in automation level 2 (GoA 2) for new S-Bahn vehicles. In addition, S-Bahn Hamburg GmbH will receive vehicles that already comply with the latest state-of-the-art signalling technology. The trains will be delivered with Alstom’s intelligent onboard technology for ETCS, with integrated ATO software that meets the high demands of future digital rail operations in terms of performance, availability, and automation.

Initially, Alstom will manufacture three vehicles that will undergo extensive testing and inspection, in particular for approval of their ETCS and ATO functionalities. Vehicle deliveries to Hamburg are scheduled for 2025 and 2026. 

Among others, Alstom’s sites in Hennigsdorf, Bautzen (production), Berlin (signalling), Braunschweig, Siegen and Mannheim, Germany, will be involved in the production of the new S-Bahn trains. This is in addition to sites in Charleroi, Belgium (ETCS), Wroclaw, Poland, Västeras, Sweden and Vadodara, India, which will also participate in production.

In Germany, Alstom offers innovative solutions for sustainable mobility and is one of the leading suppliers of railway technology with metros, suburban trains, trams, regional trains, locomotives and signalling solutions. Our trains travel from Schleswig-Holstein to Bavaria. More than 70% of high-speed trains running in Germany are equipped with Alstom’s ETCS signalling solutions. In Lower Saxony, Alstom is building the world’s first fuel cell-powered, completely emission-free Cordia iLint regional train in series production. Alstom is Germany’s only manufacturer of infrastructure, signalling and digital mobility solutions to provide maintenance, service and modernisation of all mass transit trains for all manufacturers’ series, as well as information systems.

Changes Adopted Following KiwiRail Track Damage Report

KiwiRail and Auckland Transport are already making changes to address issues raised by a report into track damage through Rolling Contact Fatigue that led to widespread speed restrictions across the Auckland rail network.

The Auckland RCF Working Group Root Cause Assessment Report, prepared for KiwiRail and Auckland Transport, identified multiple causes, with historic underinvestment in Auckland’s rail track infrastructure identified as one of the key factors. The report also pointed to insufficient rail grinding, poor underlying track condition, the design of the EMU trains and the wheel rail interface.  Auckland’s climate is also another likely contributor.

KiwiRail Chief Operating Officer Todd Moyle acknowledged the report’s findings, and said work was already well advanced to implement recommendations made in the report.

Todd Moyle says that 130km of rail was replaced in just seven months and KiwiRail is now working through the second phase to repair the more complex sections of track.

The track remediation work is part of a $1.5 billion programme of work to modernise and improve the Auckland metro rail network. Other projects include the ‘third main’ project to ease congestion and allow for extra services on the busiest part of the network between Westfield and Wiri, the extension of electrification to Pukekohe, and three new stations at Drury and Paerata.  When complete, Auckland commuters and freight customers will enjoy a more resilient and reliable network.

Alstom to Supply 19 Additional Metros for Line 11 of the Ile-de-France

Alstom (OTC: ALSMY) will supply 19 five-car MP14 metros with driver’s cab for line 11 of the Île-de-France Mobilités network operated by RATP, for a total value of 132 million euro. This order, which is 100% funded by Île-de-France Mobilités, falls within the framework of the MP14 contract signed in March 2015 between RATP (mandated by Île-de-France Mobilités) and Alstom for the delivery of a maximum of 217 MP14 trains over 15 years, for a total amount of more than 2 billion euro. This contract is part of the Île-de-France Mobilités strategy for the modernisation of all rolling stock on the Île-de-France Mobilités network.

An initial tranche of the MP14 contract included 35 automated metros for line 14, consisting of eight cars each. A first conditional tranche for 20 additional automated metros, consisting of six cars each, was exercised in January 2017 for line 4. A second option of 20 additional five-car trains (with driver’s cabs) was exercised in February 2018 for line 11.

A state-of-the-art metro, MP14 offers an unprecedented level of comfort and safety thanks to its interior layout and seats with a design based on the theme of the alcove, creating both hospitality and privacy. Vast reception areas offer accessibility to all passengers, with dedicated areas and boomerang-shaped seats to improve the passenger flow and the capacity of the trains. MP14 also has LED lighting efficiently distributed throughout the entire metro to provide a sense of security while eliminating darkly shadowed areas. The supports and steadying points are compliant with safety standards and further increase comfort inside the train. Warm and cool ventilation helps to provide temperature balance, whatever the season. MP14 also provides comprehensive video protection and dynamic passenger information on board.

A special feature of the MP14 metros for line 11 is that the design of the driver’s cab incorporates feedback from previous generations of cabs. Their design features the latest developments in ergonomics and has been validated by RATP drivers and occupational physicians.

MP14 is designed to improve passenger comfort and experience as well as reconcile performance, energy savings and ease of maintenance to keep costs under control throughout its life cycle.

MP14’s 100% electrical braking system recuperates energy and re-injects it into the network as electricity, while limiting the emission of fine particles caused by the mechanical brakes. The system reduces the energy consumption of the metros, as well as air pollution, by up to 20%. MP14 is also 40% quieter than the metros currently in service on line 11, with a 95% recyclability rate.

About 20 automated metros for line 14, consisting of eight cars each, will be delivered by the end of 2021. The first six-car automated metros for line 4 are currently being tested. Production of the first five-car metros for line 11 began in the last quarter of 2020 and the first metro will begin validation tests on RATP tracks this summer.

Eight of Alstom’s sixteen sites in France are involved in this project:

  • Valenciennes, for the studies, integration, validation, and testing;
  • Le Creusot, for the bogies;
  • Ornans, for the engines;
  • Villeurbanne, for the on-board computerised systems;
  • Tarbes, for the traction;
  • Aix-en-Provence, for the safety IT;
  • Reichshoffen, for the collision studies, and
  • Saint-Ouen, for the design.
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