Hurricane rebuilding boosts FECR profits

Railway Age, March, 2005

Florida East Coast Railway (FECR) posted a 27% increase in intermodal revenues in the fourth quarter of 2004 compared with the prior-year quarter, party because of a demand for building supplies in the wake of four hurricanes that struck the state last fall. Total fourth-quarter revenues were $55.8 million, 19% above the 2003 period. Operating income rose 29% to $15.7 million; the operating ratio improved to 71.8% from 74.0%.

FECR, a finalist in Railway Age's 2005 Short Line/Regional Railroad of the Year awards, implemented an aggressive hurricane preparedness plan as each of the four hurricanes moved toward eastern Florida. FECR curtailed train services, removed crossing gates, and staged heavy equipment, gasoline, diesel fuel, food, and water strategically along the 351-mile corridor. Particularly during Hurricanes Frances and Ivan, FECR sustained measurable damage to power transmission lines, buildings, and bridges. Additionally, hundreds of trees mad truckloads of debris tell onto right-of-way, according to Charlie Lynch, vice president-transportation. Power was out throughout the system, including signals, end-of-sight signals, and grade crossings.

Despite personal hurricane problems, more than 80 FECR and Florida East Coast Industries employees--from executives to rank-and-file--rallied mad worked around the clock to clear the ROW, repair damage, protect crossings, staff the operations control center, answer phones, run errands, deliver materials, and do all that was needed to restore train service as quickly as possible. Just two days after Hurricane Frances passed, train service began on a restricted basis; a week later, normalized, bi-directional train service was restored.

FECR neighbors also helped in the effort. Instead of allowing a railroad employee to recharge batteries to keep a St. Augustine grade crossing tip and running, resident Michelle Freidman ran an extension cord from her home to power it. FECR presented her with gifts and a letter of thanks from FECR President John McPherson.

Similarly, the 442-mile Alabama Gulf Coast Railroad (another Railway Age contest finalist) posted remarkable growth in 2004-increasing carloads by 87% and revenue by 71% from June 2002 through December 2004. AGR closed out the year with 60,422 car-loads and $21.3 million in revenue. This was achieved despite extensive damage and disruption last September caused by Hurricane Ivan and its 130-mph winds.

When forecasts indicated that AGR would likely suffer a direct hit, AGR General Manager Mike Brigham assembled the management team, announcing that all operations would cease two days later, on Sept. 15. A formidable list of tasks had to be completed. The staff coordinated with customers, moved 'all trains and equipment to higher ground, and secured office space and contents to guard against storm surge waters or roof damage. After the hurricane passed through, they removed nearly 3,000 trees blocking the tracks (pictured). "The maintenance-of-way and train crews really did an incredible job of utilizing the necessary equipment to safely clear the main line," Brigham said. And most important, no one was injured.