Round 2 of Keokuk Junction vs. Toledo, Peoria, & Western?

[Bulby]

On March 11th, Fort Transfer, a shipper on the TP&W's Morton Branch, filed with the Surface Transportation Board seeking alternative service to be provided by Keokuk Junction Railway as a result of TP&W's refusal to provide service. http://www.stb.dot.gov/filings/all.nsf/ ... 237897.pdf

On March 12th, Keokuk Junction filed a response confirming that they had surplus motive power and enough crews to handle the added work without interfering with KJ's own customers and without undue interference with other railroads. http://www.stb.dot.gov/filings/all.nsf/ ... 237920.pdf

On March 17th, TP&W filed a response claiming that track conditions prevent servicing Fort Transfer. http://www.stb.dot.gov/filings/all.nsf/ ... 237978.pdf

This is shaping up to be a rematch of the ugly fight over the TP&W West End from the early 2000s; which KJRY won.

[bn13814]

This is shaping up to be a rematch of the ugly fight over the TP&W West End from the early 2000s; which KJRY won.

Hopefully, Round 2 will also result in a KJRY victory.

The Peoria Journal Star has an article today on the apparent closing Star Transport, a Morton, IL-based trucking firm. Rumors are that Phoenix, AZ-based Swift Transportation bought Star (the two companies struck a partnership in 2013). Yet, the paper has nothing about the Morton railroad situation. Sure, it doesn't involve 400 jobs, but it is part of history.

One thing for sure, if local rail-to-trail interests get involved, hoping for abandonment and removal of railroad tracks through Morton, the PJStar will be all over the story.

[Matt Short Line H]

This is shaping up to be a rematch of the ugly fight over the TP&W West End from the early 2000s; which KJRY won.

Hopefully, Round 2 will also result in a KJRY victory.

The Peoria Journal Star has an article today on the apparent closing Star Transport, a Morton, IL-based trucking firm. Rumors are that Phoenix, AZ-based Swift Transportation bought Star (the two companies struck a partnership in 2013). Yet, the paper has nothing about the Morton railroad situation. Sure, it doesn't involve 400 jobs, but it is part of history.

One thing for sure, if local rail-to-trail interests get involved, hoping for abandonment and removal of railroad tracks through Morton, the PJStar will be all over the story.

I agree. Go KJRY.

[redside20]

I am in KJRY's corner as well. Look at how the GWI treats some of its lines like a redheaded stepchild..like the I&O/CFE cluster and they screwed over the Cape Breton and Nova Scotia big time after a major traffic customer shut down up in Canada.

[AARR]

Are there customers on the segment being contested? If yes what kind of traffic and carloads are at stake?

[Bulby]

Are there customers on the segment being contested? If yes what kind of traffic and carloads are at stake?

Two customers, Fort Transfer (transloads herbicides) and Morton Buildings (lumber).

Maybe 300 total cars per year at current levels (175 for fort, 125 for Morton Buildings). Obviously, a good crop year means more business at Fort, and a strong building business means more lumber for Morton Buildings.

Assuming that service was better, there are at least three other customers that could be brought back (with difficultly due to G&W and Rail America actions). KJ intends to fully market the line to all potential shippers should they be granted authority to operate.

[AARR]

When G&W took over RA there was hope, at least in the railfan community, that service would improve. At least in a few cases it appears service under G&W has gotten worse. It seems when an organization gets bigger, no matter what field its in, it becomes inefficient.

[SousaKerry]

It seems when an organization gets bigger, no matter what field its in, it becomes inefficient.

You ain't kidding on that one the company I work for doubled in size by purchasing a competitor of equal size in 2012. My paperwork has tripled and managers has quadrupled but they say somehow we are more efficient....

[bn13814]

Here's some TP&W action at Morton, Illinois on a hot (99 degrees) September 10, 2013. This line is a remnant of Santa Fe's Pekin District (Ancona to Pekin, mostly abandoned in 1983).

[Bulby]

When G&W took over RA there was hope, at least in the railfan community, that service would improve. At least in a few cases it appears service under G&W has gotten worse. It seems when an organization gets bigger, no matter what field its in, it becomes inefficient.

G&W is a shortline that acts like a Class 1. It's plainly obvious to myself and others that if they continue on their present course, they will have a rude awakening.

[bn13814]

G&W is a shortline that acts like a Class 1. It's plainly obvious to myself and others that if they continue on their present course, they will have a rude awakening.

All would be just fine if we didn't have to worry about customers.

Having said that, not all business is good business. And high-volume intermodal terminals in the Chicago area draw a lot of potential carload freight due to pricing and greater reliability. Neither shortlines or Regionals used to be so picky. Changes in business practices (Just-In-Time inventory) and Class I carelessness with carload freight diverted a lot of rail business to trucks long ago.

Fort Transfer and Morton Buildings are current customers on TP&W's Morton Industrial Lead. Two others have used the line the past quarter century.

Nestle USA/Libby's Inc. last shipped canned pumpkin (off season) in June 2008. Prior to that, fall 2005 was the last pumpkin packing season in which rail was used. Nestle used to ship something like 400 carloads a year to company distribution centers throughout the nation. But much of this business shifted to piggyback in 1995 and TP&W ceased assigning a switch engine at Morton during the pumpkin pack after 2001, IIRC.

Caterpillar operates a huge 2.2 million square foot parts and dealer support warehouse in Morton. Opened in 1958 (and expanded twice through 1974), rail spurs enabled outside loading of large tractor parts (track & link assemblies), inside loading of parts into boxcars, receipt of supplies such as lumber (for packaging) and coal for the power plant. The Santa Fe handled 26 inbound and 996 outbound carloads from this plant in 1973. Much of the outbound business (loaded into boxcars) was for export via West Coast ports. Business dropped off in the early 1980s, but Caterpillar continued to generate regular outbound shipments of track & link from Morton to its Denver distribution center. These shipments ceased by the early 1990s.

Given its relatively recent use of rail service, there is a chance that arrangements may be made to restore Nestle USA/Libby's ability to load canned pumpkin into boxcars. Restoring rail service to Caterpillar isn't likely.

Morton Ready Mix Concrete is a potential rail user as well. Years ago, I was told by the manager of affiliate Construction Materials Co. that rail service there ended in 1979 when Martin Marietta Corp. downsized its Chillicothe quarry to a local operation (Santa Fe could offer single-line service, though this was circuitous). Spur is still intact, though disconnected from the Lead itself.

No doubt Morton Buildings and Fort Transfer could increase volume if rail service is assured. The former makes timber-framed metal buildings. It receives coated sheet steel, probably via Hanna Steel Corp's Pekin facility. If KJRY can take over operation of the Morton Industrial Lead, perhaps it can persuade Morton Buildings to receive steel directly by rail? A private rail siding and expanded liquid storage facilities could mean significantly expanded rail volume for Fort Transfer.