Another PRB train derails; joint line repairs to affect traffic

Another PRB train derails; joint line repairs to affect traffic

Washington (Platts)--5Jul2005


A BNSF Railway coal train headed from southeastern Montana to Superior, Wis.,
derailed in Miles City, Mont., July 1, spilling two carloads of coal. BNSF
spokesman Gus Melonas told Platts Coal Trader on Tuesday that the fourth
through the 14th of the 123 railcars derailed. Nine remained upright and two
tipped over, spilling their loads.

The derailment happened about 4:45 p.m. between Billings and Glendive, Mont.,
he said. The track was reopened at 12:15 p.m. on July 2 and BNSF expected to
be caught up with shipments late yesterday or early this afternoon. He said
there were no injuries, but some rail was replaced with pre-made sections and
cleanup will take three to four weeks. Special units were called from Billings
and Glendive to remove coal cars not involved, to get the wreckage out of the
way and to repair the track. A railroad crossing mechanism was smashed.
Melonas said the accident was not near two May derailments on a joint line
owned by BNSF and Union Pacific and maintained by BNSF. The railroads are
still recovering from those derailments and shipments are still slightly down
from average.

In its last service update, BNSF said it and UP have agreed on a revised joint
line maintenance plan. The plan includes the removal of coal dust from about
100 miles of roadbed and the replacement of 14 miles of ties and track.
Beginning today and continuing through the rest of the month, switches will be
rehabilitated during 12-hour curfews. From July 11-Aug. 23, ties and track
will be replaced between Nacco Junction and Reno Junction, working 16-hour
stretches at a time from Monday-Thursday of each week. That will reduce the
joint line from double to single-track operation during those windows, UP
said.

BNSF said it expects the additional maintenance to have a "modest impact on
the number of coal trains that will be operating daily on the joint line
during the balance of 2005." The modified plan work is expected to start this
month. 

In an update issued last Friday, UP said it averaged 31 trains/day on the
joint line, an average shortfall of four trains/day, or 12.3%, compared with
pre-derailment levels from January through April. It said that as of June 30,
slow speed orders were still in effect at 26 locations covering 30.4 miles of
track. Based on maintenance plans, UP said it expects total outbound train
operation on the joint line to average 60 trains/day total, with its share of
loadings averaging 31-32 trains/day during July.

"Union Pacific continues to operate under force majeure conditions on the
joint line," the railroad said. "Operations are significantly impaired and UP
is unable to meet all of its obligations for coal based upon extraordinary
track repair and slow orders in place since May 14, 2005. "We are greatly
concerned about the impact that joint line track conditions and extensive
repair and maintenance are having on train operations and the corresponding
impact on the ability of the mines to load trains and our customers' ability
to satisfy their need for PRB coal. While we continue to do everything we can
on the delivery side, we strongly encourage each of you to take steps to
conserve coal until normal operations resume on the joint line. At this stage,
we do not expect to be in a position to operate the joint line unencumbered
until late November 2005 when track repair is completed for the year or
suspended due to weather.

"Utilities and industrial customers using PRB coal should plan their
consumption of coal in accordance with estimates provided above and
consideration given to their own unique inventory and fuel management
strategies." 

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