POTD - Empty Hoppers In the Sunset

From a river named "The Animas" in the San Juan mountains to a town named Las Animas on the eastern plains, it's hard to believe they're in the same world, let alone the same state at the same rough latitude (0.5° difference). From narrow gauge Rio Grande rails hung precariously on canyon walls to standard gauge Santa Fe rails somewhere in a vast prairie, these are Colorado Railroads!

Empty Hoppers In the Sunset - Coal hoppers wait their turn for service in beside a
piece of disused rail in the quiet town of Las Animas, Colorado, on June 16, 2008
Photo: Jenny Vaughn

State Lawmakers Kick Coal When Its Down

Not only could this bill passed by our wonderful, Democratic state senate cut coal miners in our state, but also cost more railroad jobs when we're already in a massive recession. According to the Association of American Railroads, ton-mile volumes in 2009 dropped 15% compared to the same month 2008. Only 1938 and 1949 rival such a decline. "And that's compared to 2008, not exactly a stellar year itself," according to Roy Blanchard in Trains Magazine, (May 2010 pg 6). Further research with AAR reveals that nationally, February's coal carloads dropped 10% when compared with February last year.

Clearly, our lawmakers have an impeccable sense of timing.

Highball, Westbound Photo Turn CRB001 Track One

Climb aboard, brakeman! We're going on a run for the latest Colorado railroad photos out there on the web. Put your grip beneath your seat, click the Read More link, and we'll get moving!

Buffett Buys BNSF

Financial emperor Warren Buffett has been buying up BNSF shares for years, but even in the first 48 hours since the announcement, this much is known about Berkshire Hathaway's $34 Billion purchase: Buffett is betting the farm on American rail.

Buffett believes that American coal will continue to produce in the long term, carried by Rio Grande-like unit trains from western sources such as the Wyoming and Colorado coal fields. He also believes that the American economy will rebound, once again driving demand for cheap and easy imports from China and the Pacific Rim to Wal-Mart and Sears aboard BNSF container trains from Washington and California ports.

Little if any impact is expected at the operations level. In a letter to BNSFs customers, John Lanigan stated,

You will not see any changes in the weeks and months ahead. Our leadership will remain in place and focused on providing value to our customers.

BNSFs Ft. Worth, Texas-based operations will remain in Ft. Worth. Largely, this looks like a move that's behind the scenes. The funny thing about those behind-the-scenes moves, however, is that they have an uncanny way of driving long-term strategies. Is this the anticipated move that sets the "fabled" next round of mergers in action that pairs BNSF and UP with their East Coast counterparts CSX and NS? What would this mean for the plans of high speed rail? If mergers happen, they will happen in the next 12 months. That's just a hunch based off the last round in 1995-96 where Conrail was divided up between CSX and NS and BN and Santa Fe merged, forcing UP to buy Southern Pacific from Colorado's Phil Anschutz.

Ski Train Reserving A Platform At Union Station

The news continues to be hopeful for the revival of the Ski Train with a letter to Union Station, but the true test will be Union Pacific.

The Union Pacific loves coal. It loves the little black diamonds that come out of the mines of Wyoming's Powder River Basin as much as those that come out of northwestern Colorado, mostly because the grade of coal is so good. Coal means cheap electrical power, but it also means heavy revenue that UP uses to keep its bottom line. Getting them to let a passenger train in the mix will interfere with that. Or will it?

Opinion
The success or failure of a revived Ski Train will also affect the east-west high-speed corridor proposal. Ed Ellis, head of the San Luis & Rio Grande shortline is doing Colorado a huge favor by going out on a limb with this business venture. Supporting him, the SL&RG and the Rio Grande Scenic Railroad is something most of us can do in some manner.

2009 Colorado Coal Loadings Continue To Lag Behind 2008

According to ProgressiveRailroading.com, Union Pacific is experiencing a lag compared to last year's coal loadings out of Colorado and the Powder River Basin in Wyoming. While several utilities have slowed down due to decreased demand, a few other factors have come into play. The article states,

“Several utility plants have been experiencing higher-than-usual occurrences of breakdowns and slow unloading situations, which has delayed the return of empty trains for loading,” UP officials said in a weekly coal train loading report.

According to the same report, they've had a few mine production issues as well.

Could it be that some preemptive belt-tightening has led to the delays? There's no conclusive evidence of this, but sometimes taking such steps has a tendency to worsen a situation instead of making the company more capable of weathering the current one.

The article did not mention any figures for BNSF.