CURRENT NEWS

Buckingham Branch Leases Virginia Lines

from the Richmond Times-Dispatch

May 5, 2004

submitted by Robert Roadcap and Ray Saundcrs

Rail giant CSX Corp. will lease 200 miles of Virginia track to a private contractor, a pending deal that drew fire from a major rail union.

Sources said CSX is close to turning over to a small Buckingham County railroad the daily operation of a stretch of track that starts in Richmond, runs through Doswell and follows a rough arc across the state. It runs through Gordonsville, Orange, Charlottesvillc, Staunton and Clifton Forge.

The new operator, Buckingham Branch Railroad, will also be charged with maintaining the track and bridge-some in mountainous regions of western Virginia.

The terms and timing of the deal have not been made public, but rail officials confirmed the agreement this week.

CSX spokesman Bob Sullivan said yesterday, "I can't talk about the real specifics of the transaction." But he said the carrier has a long-standing policy of selling or leasing unprofitable stretches of track. "A short line can step in and do it," Sullivan said, without naming Buckingham.

he noted Virginia has a shortline development effort that is "designed to accomplish that end." In fact, Buckingham Branch Railroad was created during a similar spinoff in the late 1980s.

A shortline operator generally has lower operating costs because it's not bound by union rules and wage scales, and because it serves a smaller customer base.

The cost-cutting was criticized by the union representing about 400 track workers in Virginia. "The union's going to lose the better-paying jobs, and taxpayers will take care of the tracks," said Randall Brassell, general chairman of the Allied Eastern Federation of the Brotherhood of Maintenance of Way Employees. "Its a real good deal for CSX, but not for the taxpayers of Virginia," he said. Up to 20 railroad maintenance workers will be laid off after Buckingham Branch takes over, he said.

Brasseil noted that the Buckingham railroad has gotten nearly $3 million in state rail preservation grants since 1993 to make upgrades and repairs in the Dillwyn area. "The whole deal is a scam to get the taxpayers to maintain the track," Brassell said.

Karen J. Rae, director of the state department of Rail and Public Transportation, denied the charge. In talks with Buckingham Branch, she said she made it clear "we don't intend to do major maintenance" on the 200-mile CSX corridor.

The state has a relatively small pool of resources-about $3 million-that's divided each year for grants to nine shortline operators, she said.

CSX officials have said for years they were not making a profit on the 200-mile stretch, according to Rae. In the early 199Os, the railroad was persuaded not to abandon a portion of its Richmond line.

"Railroads are in such desperate straits across the country that they're trying to get out of money-losers and focus more on the core business," Rae said.

She calls the lease a "win-win" because it keeps the track open with a Virginia-based company. "Buckingham Branch is one of our best short lines," she said.

Bob Bryant, a retired CSX manager, started the Buckingham Branch Railroad with his wife and son 15 years ago. He would not comment on the specifics of the new deal.

Last year, Buckingham Branch had 14 employees and revenue of $1 million, but did not make a profit, Bryant said in an earlier interview.

Asked this week about the union's concerns, he said, "We'll certainly not hurt anyone. It's our goal to stay away from controversy. We're small and fragile."

The Maintenance of Way officials said some parts of the leased stretch are in "terrible shape" because of neglect by the railroad.

Four years ago, CSX was sharply criticized by the Federal Railroad Administration, which oversees rail safety. The FRA ordered repairs of track between Charlottesville and Clifton Forge, a corridor traveled by Amtrak passenger trains. Since then, no major problems have been reported in the region, a FRA spokesman said.

CSX also maintains the right to operate trains-often with empty coal hoppers-on the new Buckingham line.

Some industrial customers were notified last week about the pending change of management. "They wanted to let us know that thete would be some changes coming up," said David Butler, purchasing manager for Ruffin & Payne Inc., a lumber mill and building supply company in Richmond.

Editor's Note: The former C&O lines affected by this lease are the North Mountain Subdivision, Piedmont Subdivision and the Washington Subdivision.-ENY

Tony Ingram Named CSXT's Chief Operating Officer

Michael J. Ward, CSX Corporation chairman and chief executive officer and CSX Transportation president, announced March 15th that Tony L. Ingram has joined the company as executive vice ptesident and chief operating officer. Ingram, who will report to Ward, joins CSXT from Norfolk Southern Corp. where he was senior vice president-transportation network and mechanical. Ingram will be responsible for all CSX rail operations including transportation, safety, engineering and mechanical, and service design.