Wednesday, September 30, 2015

Pan Am Eyes Downtown Portsmouth NH for Unloading Propane Train

(SOURCE:  Union Leader)


PORTSMOUTH — City officials with safety concerns may try to derail a possible plan by Pan Am Railways to unload propane from rail cars along tracks in the heart of Portsmouth.

Details of the proposal are still being ironed out, but a top Pan Am Railways official confirmed Monday that Portsmouth is one of the sites the company is eyeing as it tries to meet the region’s growing demand for propane.


The area under consideration is located in a rail yard in the city’s downtown near the historic Old North Cemetery on Maplewood Avenue and Gary’s Beverages on Deer Street.

“Because of its location, it is a location that we’re looking at for potentially transloading propane,” said Cynthia Scarano, executive vice president of Pan Am Railways.


According to Scarano, the propane would arrive by rail, and would then be pumped into trucks from different propane companies that would transport it from the site.


Scarano said Pan Am, which owns the tracks, is still considering other sites as well for an offloading facility and hasn’t made a final decision.


City officials said they haven’t received any formal propane plan for downtown, but are aware of the possibility.


“If this were to occur, certainly there would be concerns and the city would take every action possible to protect residents. We plan on opposing this,” Deputy City Manager David Allen said Monday.


The possible propane plan comes as the city continues to appeal the Newington Planning Board’s decision to give Sea-3 the go-ahead to expand its propane storage terminal in Newington to accommodate rail deliveries. Trains to Newington travel through downton Portsmouth, and the city has fought Sea-3’s stalled expansion plan amid concerns about rail safety and increased risk of mishaps involving propane deliveries.


Jane Ferrini, a city staff attorney, said Pan Am would have to meet various local, state and federal regulations to move ahead with any off-loading plan in Portsmouth.


She said the offices of the state fire marshal and Gov. Maggie Hassan have also been made aware of the possibility.


While plans are still preliminary, Ferrini said the city “has explored various legal avenues” in the event Pan Am moves ahead.


The plan would not involve the installation of any holding tanks to store propane at the site, Scarano said.


“Safety is our No. 1 priority and we’ll make sure we follow all the regulations,” Scarano said.

The downtown site is a “primary” spot because “it’s a central location of where we need to get this propane delivered to,” she said.


When asked if the delays in Sea-3’s expansion prompted Pan Am’s plan, Scarano responded, “What’s behind it is the fact that propane use as far as rail shipment is up 35 percent and that’s just because it’s considered a clean fuel now.”


Scarano confirmed that Pan Am officials were asked to meet with the governor’s office and others about the plan, including energy directors around New England.


She said she’s not sure when the plan could move forward because it all depends on demand, but she insisted that it would be within the coming months.


If the area sees an early cold snap and demand spikes while supply is low, Scarano said the off-loading plan would be needed sooner rather than later.

PORTSMOUTH — City officials with safety concerns may try to derail a possible plan by Pan Am Railways to unload propane from rail cars along tracks in the heart of Portsmouth.

Details of the proposal are still being ironed out, but a top Pan Am Railways official confirmed Monday that Portsmouth is one of the sites the company is eyeing as it tries to meet the region’s growing demand for propane.

The area under consideration is located in a rail yard in the city’s downtown near the historic Old North Cemetery on Maplewood Avenue and Gary’s Beverages on Deer Street.

“Because of its location, it is a location that we’re looking at for potentially transloading propane,” said Cynthia Scarano, executive vice president of Pan Am Railways.

According to Scarano, the propane would arrive by rail, and would then be pumped into trucks from different propane companies that would transport it from the site.

Scarano said Pan Am, which owns the tracks, is still considering other sites as well for an offloading facility and hasn’t made a final decision.

City officials said they haven’t received any formal propane plan for downtown, but are aware of the possibility.

“If this were to occur, certainly there would be concerns and the city would take every action possible to protect residents. We plan on opposing this,” Deputy City Manager David Allen said Monday.

The possible propane plan comes as the city continues to appeal the Newington Planning Board’s decision to give Sea-3 the go-ahead to expand its propane storage terminal in Newington to accommodate rail deliveries. Trains to Newington travel through downton Portsmouth, and the city has fought Sea-3’s stalled expansion plan amid concerns about rail safety and increased risk of mishaps involving propane deliveries.

Jane Ferrini, a city staff attorney, said Pan Am would have to meet various local, state and federal regulations to move ahead with any off-loading plan in Portsmouth.

She said the offices of the state fire marshal and Gov. Maggie Hassan have also been made aware of the possibility.

While plans are still preliminary, Ferrini said the city “has explored various legal avenues” in the event Pan Am moves ahead.

The plan would not involve the installation of any holding tanks to store propane at the site, Scarano said.

“Safety is our No. 1 priority and we’ll make sure we follow all the regulations,” Scarano said.

The downtown site is a “primary” spot because “it’s a central location of where we need to get this propane delivered to,” she said.

When asked if the delays in Sea-3’s expansion prompted Pan Am’s plan, Scarano responded, “What’s behind it is the fact that propane use as far as rail shipment is up 35 percent and that’s just because it’s considered a clean fuel now.”

Scarano confirmed that Pan Am officials were asked to meet with the governor’s office and others about the plan, including energy directors around New England.

She said she’s not sure when the plan could move forward because it all depends on demand, but she insisted that it would be within the coming months.

If the area sees an early cold snap and demand spikes while supply is low, Scarano said the off-loading plan would be needed sooner rather than later. - See more at: http://www.unionleader.com/Pan_Am_eyes_downtown_Portsmouth_for_possible_propane_plan#sthash.1VNIbG4a.dpuf
PORTSMOUTH — City officials with safety concerns may try to derail a possible plan by Pan Am Railways to unload propane from rail cars along tracks in the heart of Portsmouth.

Details of the proposal are still being ironed out, but a top Pan Am Railways official confirmed Monday that Portsmouth is one of the sites the company is eyeing as it tries to meet the region’s growing demand for propane.

The area under consideration is located in a rail yard in the city’s downtown near the historic Old North Cemetery on Maplewood Avenue and Gary’s Beverages on Deer Street.

“Because of its location, it is a location that we’re looking at for potentially transloading propane,” said Cynthia Scarano, executive vice president of Pan Am Railways.

According to Scarano, the propane would arrive by rail, and would then be pumped into trucks from different propane companies that would transport it from the site.

Scarano said Pan Am, which owns the tracks, is still considering other sites as well for an offloading facility and hasn’t made a final decision.

City officials said they haven’t received any formal propane plan for downtown, but are aware of the possibility.

“If this were to occur, certainly there would be concerns and the city would take every action possible to protect residents. We plan on opposing this,” Deputy City Manager David Allen said Monday.

The possible propane plan comes as the city continues to appeal the Newington Planning Board’s decision to give Sea-3 the go-ahead to expand its propane storage terminal in Newington to accommodate rail deliveries. Trains to Newington travel through downton Portsmouth, and the city has fought Sea-3’s stalled expansion plan amid concerns about rail safety and increased risk of mishaps involving propane deliveries.

Jane Ferrini, a city staff attorney, said Pan Am would have to meet various local, state and federal regulations to move ahead with any off-loading plan in Portsmouth.

She said the offices of the state fire marshal and Gov. Maggie Hassan have also been made aware of the possibility.

While plans are still preliminary, Ferrini said the city “has explored various legal avenues” in the event Pan Am moves ahead.

The plan would not involve the installation of any holding tanks to store propane at the site, Scarano said.

“Safety is our No. 1 priority and we’ll make sure we follow all the regulations,” Scarano said.

The downtown site is a “primary” spot because “it’s a central location of where we need to get this propane delivered to,” she said.

When asked if the delays in Sea-3’s expansion prompted Pan Am’s plan, Scarano responded, “What’s behind it is the fact that propane use as far as rail shipment is up 35 percent and that’s just because it’s considered a clean fuel now.”

Scarano confirmed that Pan Am officials were asked to meet with the governor’s office and others about the plan, including energy directors around New England.

She said she’s not sure when the plan could move forward because it all depends on demand, but she insisted that it would be within the coming months.

If the area sees an early cold snap and demand spikes while supply is low, Scarano said the off-loading plan would be needed sooner rather than later. - See more at: http://www.unionleader.com/Pan_Am_eyes_downtown_Portsmouth_for_possible_propane_plan#sthash.1VNIbG4a.dpuf

Monday, August 10, 2015

Great Scott! It’s a soft landing again for MBTA's Beverly Scott

Great Scott! It’s a soft landing again | Howie Carr | New England's Undisputed Talk Radio King

Genesee & Wyoming to Buy Claremont Concord Short Line

(SOURCE:  Valley News - By John Lippman)

The Claremont Concord Railroad, one of the smallest railroad lines in the country, is getting hitched to one of the world’s biggest rail carriers. 

The Upper Valley short line that shuttles freight over the Connecticut River between White River Junction and West Lebanon and over a stretch of track in Claremont is being acquired by Genesee & Wyoming, the Dar ien, Conn.-based railroad giant that owns or leases 120 freight railroads around the world. 

Genesee & Wyoming’s subsidiary New England Central Railroad on Thursday filed a notice with the federal Surface Transportation Board that it had reached an asset purchase agreement with Claremont Concord Railroad to acquire the railroad’s line in Claremont and lease to operate over a state-owned line in West Lebanon. 

Michael Williams, a spokesman for Genesee & Wyoming, confirmed via email earlier that the company is buying the Claremont Concord Railroad, but declined to elaborate. 

“When we’ve met with customers and when the transaction is finalized, we’ll be in a position to comment further,” he wrote. 

Genesee & Wyoming’s New England Central Railroad is a regional freight carrier that operates a 394-mile rail line between New London, Conn., and the Vermont/Quebec border. Claremont and White River Junction are interchange points along the line. 

Christopher Freed, the owner of the Claremont Concord Railroad, did not respond last week to emails or phone calls for comment. Word had been circulating for more than a year among area rail industry workers and watchers that Freed had his railroad up for sale, although no definitive word surfaced until last month when New England Central Railroad informed the Surface Transportation Board in a filing that a notice had been posted in the workplaces of the Claremont Concord Railroad of NECR’s intent to buy the Upper Valley railroad and that “as a result of the transaction” two engineer-conductor jobs paying between $18.34 and $24.45 an hour were expected to be available to workers. 

Freed, who owns a Pennsylvania-based locomotive services company, acquired the Claremont Concord Railroad in 2002 from LaValley Building Supply, which in turn had bought the railroad from Pinsly Corp. in 1989, said Steven LaValley, comptroller at the New Hampshire-based construction materials supply firm. He said LaValley Building Supply stepped in to buy the struggling railroad, which it depended on to help convey large building materials to its Claremont store, when Pinsly threatened to abandon the line. Prior to Pinsly, the railroad was owned by the Boston & Maine line.

The Claremont Concord Railroad’s origins date back to the mid-19th century as a line to connect its two namesake cities. Over the following 100 years, the company passed through numerous mergers and consolidations before being absorbed by Boston & Maine. But as the Northern New England rail industry declined along with the region’s manufacturing, sections of the line began to be abandoned around 1960 until it had shrunk to its current remnants by the late 1980s. 

Claremont Concord Railroad’s customers include Rymes Propane & Oil and Twin State Sand & Gravel in West Lebanon, fertilizer wholesaler Beaudry Enterprises and LaValley Building Supply in Claremont, and New York State-based rock salt miner and distributor American Rock Salt, according to the company’s website. A sister company, Eagle Leaf Transload, also provides bulk transfer services between railcar and trucks for commodities such as salt, cement, fertilizer, pipes, rebar, structural steel and brick at Westboro Rail Yard in West Lebanon and Claremont Junction in Claremont. 

For example, Rymes uses the short line to haul propane tank cars from White River Junction, where it arrives on rail from suppliers around the country, to West Lebanon, said John Rymes, vice president of the company. He welcomed the sale since he ships propane on New England Central’s rail cars and “it means I’ll now be dealing with one company instead of two.” 

Warren “Bud” Ames, president and co-owner of Twin State Sand & Gravel, said he utilizes the Claremont Concord Railroad between November and March to bring 250 to 300 carloads a year of rock salt, which he sources in New York State, to his West Lebanon plant. And Steven LaValley said his company still contracts with Claremont Concord Railroad’s trains to transfer lumber and other supplies from the Claremont Junction rail yard to the LaValley outlet on Pleasant Street. 

“Railroads don’t play nice with each other,” Ames said about the frequently testy relations among carriers when it comes to negotiating and prioritizing movement of cars over tracks and between interchanges. “If it’s under one roof, they’ll play nice,” he said.

New England Central’s rationale for the takeover of the Claremont Concord Railroad was partially spelled out in its filing on Thursday, explaining “the acquisition will give NECR direct access to transload locations and other customers served by CCRR. Eliminating a carrier from the route should increase the efficiency of operations and benefit CCRR’s shippers.”

New England Central Railroad, added the company, “believes it will be able to use its greater resources to grow the business on the lines.”

As a tiny short line with only a handful of steady customers, the Claremont Concord Railroad is no longer as busy as it was in White River Junction’s glory days as a Northern New England rail hub. The company today has four operating train engines, according to Christopher Parker, executive director of the Vermont Rail Action Network, including a General Motors-made 1,750-horsepower GP9 and three 1,000-horsepower American Locomotive Co. “switch engines.” 

Parker estimates the value of the 1950s-era GP9 to be about $100,000 and the value of each of the ALC switch engines at between $10,000 and $60,000 “depending upon condition.” In addition, the company owns two 380-horsepower General Electric-made engines known as “forty-four tonners” that are meant to haul only a couple of cars, although Parker’s not sure they are still in operation. The railroad also owns the one mile length of track that runs from Claremont Junction east to the LaValley Building Supply store between Mulberry Street and Pleasant Street.

Genesee & Wyoming’s plan for the Claremont Concord is unknown beyond what it said in its filing. But White River Junction resident Kevin Burkholder, who first reported the news of the railroad’s sale on his Eastern Railroad News website in March, said that Genesee & Wyoming’s New England Central Railroad, in addition to the advantages in serving customers, could also have its eye on Claremont Concord Railroad’s locomotive repair shop at its Claremont site. He noted that at present New England Central Railroad either has to run trains down to its Palmer, Mass., substation or a facility in St. Albans, Vt., for quartely inspections.

“Strategically it gives New England Central access to shop facilities that otherwise would take a day to run trains up and back,” Burkholder noted, thereby saving the company valuable time and expense.

Burkholder said the advantage for New England Central to own the Claremont spur was clear given Concord Claremont Railroad’s ownership and control of its track in the city. But he said access to the tracks in White River Junction is potentially complicated because it is controlled by Burlington-based Vermont Rail System, a major carrier in the state that owns several regional lines and operates more than 350 miles of track. New England Central needs permission for use of Vermont Rail’s track in White River Junction, which puts the privately owned midsize railroad in an advantageous position in dealing with New England Central. Indeed, area rail industry watchers have long speculated that Vermont Rail System was the logical buyer for the White River Junction-West Lebanon portion of the short line.

Nonetheless, Parker, of Vermont Rail Action Network, observed that Claremont Concord Railroad “integrates nicely” with New England Central Railroad. The acquisition would “streamline operations” and there is a “substantial opportunity for at the terminals to transfer freight from rail to truck. ... Its proximity to the interstate in West Lebanon makes it an excellent property for freight growth and freight development.” 

The northern spur of the Claremont Concord Railroad — which is now owned by the state of New Hampshire — runs along 4.6 miles of track extending from White River Junction, over the Connecticut River into West Lebanon and then southwestward to parallel the Mascoma River before terminating between the river and Glen Road just short of the Miracle Mile shopping corridor. Earlier this year, the Claremont Concord Railroad was granted approval to discontinue nearly one mile of track in Lebanon that is to be rehabilitated as part of the city’s rail trail.

“From our experience (the Claremont Concord Railroad) really wasn’t profitable,” LaValley said. “If it is, it’s marginally so.” He estimated that the company’s total assets, including the locomotives, would be valued today at about $500,000, although LaValley said it could be higher depending on the property’s use potential. He said at the time LaValley Building Supply owned the Claremont Concord Railroad it had about 10 employees.

Boston Company to Offer First Private Passenger Rail Line

(SOURCE:  WPRI.com)

PROVIDENCE, R.I. (AP) — A Boston company wants to offer the first private passenger rail line in the nation in more than 30 years, reviving a once-popular business model that was stopped dead in its tracks decades ago.

Boston Surface Railroad Co. is planning a commuter rail line that would shuttle passengers between Worcester, Massachusetts, and Providence in about an hour. No private passenger rail line has existed since 1983, and it’s been even longer since there was a significant private investment in passenger rail.

While some experts doubt that private rail can be a viable business, others say the market demand is there. Companies in at least two other states — Florida and Texas — have passenger rail projects in the works.

“We’re going through changes in this country with how people travel. Everybody’s looking for more choices,” said Robert Puentes, director of the metropolitan infrastructure initiative at the Brookings Institution.

The 45-mile stretch between Worcester and Providence presents the perfect opportunity for commuter rail because there are existing well-maintained tracks, which are owned and used for freight by Providence and Worcester Railroad Co., said Vincent Bono, CEO of Boston Surface Railroad.

Bono likens the project to a proof-of-concept to see if a private company can use existing infrastructure for passenger rail service for relatively little money.

“Because we’re private, because it’s an existing railroad, because they’re willing to operate it for us, we don’t have to spend ridiculous money,” Bono said.

He hopes the rail will be up and running by 2017.

The nation’s existing passenger railroads rely heavily on government subsidies. In recent years, Amtrak, the nation’s government-funded inter-city railroad service, has come under attack for expensive subsidies of its money-losing long-distance routes and losses from its food and beverage services, although the busy Northeast corridor route has growing operating profits.

Still, some doubt that private passenger rail projects can make a profit.

“If commuter rail is to be competitive, it has to maintain artificially low fares, fares that are below the fully allocated cost of service,” said Albert Churella, a professor at Kennesaw State University who specializes in the history of the railroad industry.

But companies in at least two other states see a market for private passenger rail.

All Aboard Florida is working on a $2.25 billion project to build a passenger rail from Miami to Orlando. It plans to begin operating a limited route by 2017.

Texas Central Railway is developing a $10 billion high-speed rail line between Dallas and Houston beginning in 2021. The company has said the bullet train would make the 250-mile trip in 90 minutes.

The Worcester-to-Providence rail line would be much smaller scale than those.

Bono said capital costs are budgeted at $3 million to $5 million, because the company needs to build very little: a short passing track and a passenger platform at the Worcester train station. It plans to keep costs down by relying on equipment it will get refurbished — three used locomotives and 12 former Amtrak passenger coaches.

Boston Surface has entered into a memo of understanding with the freight railroad, which owns nearly the entire route.

A feasibility study was just completed, and the project is in the planning stages. Bono says it doesn’t need federal or state money.

Puentes said the private ventures can help economic growth and recovery.

“This is the right conversation to be having, particularly in a place like Rhode Island,” he said.