P.M. Executive Briefing - July 14

STB Rail-Merger Moratorium Upheld by Appeals Court

That is a letdown for two major North American lines that had wanted to combine into the continent's largest – Burlington Northern Santa Fe and Canadian National – but it is better news for the host of freight shippers who had begged for relief from the wave of mergers that caused enormous freight congestion problems in recent years.

For truckers, the recurring congestion crises had thrown large volumes of freight onto truck lines at times when many carriers were scrambling for drivers, and that flow was too uneven for many carriers to plan for or count on. It also locked up many intermodal containers that trucking companies had taken to rail yards for long-distance hauls. And shippers complained about the higher cost of moving freight by truck.

For now, the eastern-US lines CSX and Norfolk Southern are still trying to unclog from their 1999 carve-up of Conrail, while BNSF's western-US rival and largest railroad, Union Pacific, is still dealing with the aftermath of its massive 1997-98 congestion crisis after it absorbed Southern Pacific. Transport Topics

Air Canada, Pilots Break Off Talks

A strike at a large passenger airline removes the belly cargo capacity of many planes and thereby quickly spills over into other air freight carriers and the trucks that serve them. In addition, it could push more high-value freight that might normally fly onto trucks for the whole trip instead, and U.S.-Canada border crossings are already busy with long lines of commercial vehicles.

The Air Canada Pilots Association issued a statement that charged the company was not seriously considering the union's proposals over such things as pensions, job safeguards amid industry restructuring, in a statement, and "adequate crewing to address pilot fatigue on long-distance flights."

The union membership voted overwhelmingly on June 26 to authorize a strike if needed to back up their demands. However, union officials have since been in lengthy talks with the company. Union leaders must give a 72-hour notice if they call a strike before it can take effect, and their Friday announcement said the leadership will meet "within the next couple of days to determine ACPA's future course of action." The last strike in 1998 lasted about two weeks. Transport Topics

Airborne Express Looks to Trucking for Business Boost

Airborne announced last week that its second-quarter profit would be well below original forecasts. The reason: a "lack of growth in domestic shipments."

Part of the solution may be to contract out ground shipments between nearby cities using outside trucking companies. Airborne would base this new system on its current service using trucking in addition to its air service. This service handles more than 1,200 trips per night.

A system like this would put Airborne into more direct competition with delivery services such as United Parcel Service and Federal Express. Transport Topics

Price Fixing Not The Culprit In Ill. High Pump Prices Says Petrol Council Director

Rather, Sykuta told the Illinois Special House Committee on Gas Pricing, the price increase could be due to a combination of increased crude oil prices, usage of designer fuels and damaged pipelines in the state.

AP also reported that Illinois Rep. Julie Harnos said the committee's hearing was the first in an ongoing investigation into the rise in gas prices, which have exceeded $2 in the Midwest for more than a month. Transport Topics

San Diego Transit Authority Debates Extending Sales Tax For Roads

The San Diego Daily Transcript, however, reported Friday that the idea of extending the current sales tax beyond its 2008 expiration date was widely supported by board members. But in recent weeks many city elected officials in the county were voicing opposition to this particular plan, mostly because not all the revenue raised would go to transportation.

Revenue from the current transportation tax is split evenly among high-way, major transit and local road improvement projects. The TranNet tax proposal gives transportation 70% of the revenue, with 20% going to open space projects and 10% to stormwater runoff needs.

If SANDAG, which serves as the county's transportation authority, were to approve the tax plan, it would still have to be approved by two-thirds of the voters. Transport Topics

Dangerous Intersections, Deaths in Red Light Running Crashes Studied

According to State Farm, one-third of all crashes occur at intersections. The agency compiled its "Most Dangerous" list based on 1998 claim reports specifying intersections in which accidents occurred.

The intersection of Beltline Road and Midway Road in Addison, Texas was designated the most dangerous intersection. Texas and California shared the dubious distinction of having three intersections in the top 10. (View the full list here: www.statefarm.com/media/release/top10.pdf.)

The southwestern United States also comes under fire in the IIHS study on red light running crash fatalities, with Phoenix, Ariz., having the most deaths per 100,000 population at 10.8 a year. Mesa and Tucson were also in the top four and Arizona was named the worst state in regards to these deaths. (More on the red light running crash lists can be found at www.hwysafety.org/news_releases/2000/pr071300.htm)

The IIHS estimates that 800 people die and more than 200,000 are injured in these crashes. Red-light cameras are among the measures being taken to cut back on such accidents. These cameras photograph vehicles whose drivers run red lights and ticket the drivers by mail. An MSNBC.com poll showed that 67% of the 15,475 respondents felt that "the safety benefits outweigh privacy concerns" with such cameras. Transport Topics

Road Construction Planned in Michigan Next Year

Interstates 275 and 96 in Livonia and I-94 from Eight Mile to Conner are among the roads scheduled for work. Several bridges will also undergo reconstruction. New construction and improvements on existing highways will cost about $100 million around Detroit and $40 million in the Lansing area.

A state Department of Transportation spokesperson said the state is alerting motorists well in advance of construction as it did in 1998 when I-75 in Detroit was worked on. Transport Topics

Florida DOT Joins Forces With Streicher Mobile Fueling

Streicher offers bio-diesel and ethanol as more environmentally friendly fuel alternatives. With Streicher Mobile Fueling's systems, customers can have fuel delivered directly to their locations on a regular schedule or an as-needed basis. The company also uses an electronic system to provide fuel usage data to customers. Transport Topics