More Loss of Coal Business

[C855B]

http://hosted.ap.org/dynamic/stories/I/IL_DYNEGY_PLANT_CLOSING_ILOL-?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT

The "Baldwin" plant mentioned in the article is good for 1-2 BNSF trains (each way) a day through here (Centralia, IL). The "two generators" is 2/3 of the plant capacity, and the additional 500MW slated to be shut is the remainder. My estimation is losing these trains, probably permanently, puts the future of the ex-CB&Q Beardstown Sub into question - not much tonnage on the line otherwise.

[Ed Kapuscinski]

Cheap natural gas... good for most of us. Bad for the coal and related industries.

[Albert in N]

Warm winter and spring also reduced electric energy consumption.  Barnett Shale natural gas production is almost nil for nearly a whole year;  modest gas royalty monthly checks also stopped.  Coal train traffic through Fort Worth TX has almost disappeared.  Everyone is getting the shaft. 

[peteski]

Everyone is getting the shaft.

Except for people who didn't have to spend a lot of money for heating their houses this winter.   No matter what happens, someone will be happy while someone else will be shafted.

[wpsnts]

while someone else will be shafted.

Like me. I work the BNSF K Line. We're barely hanging on.
If I loose this job There is no way I will be able to maintain my current lifestyle, which by the way is not extravagant.

[Chris333]

I think my biggest gas bill this last winter was $50 bucks. What is crazy though. In the summer when only the water tank is using gas my lowest bill is $30 bucks. About $25 of each bill is a fee to the gas co.

Last bills Mcf for gas was $1.73. I get crap in the mail to "lock in" at ~$4.00 and I laugh.

[oakcreekco]

Unfortunately on the "bust" portion of the coal/rail energy cycle.

I've got fond memories of the Beardstown sub from the mid 90's. Spent a week out there, involved in testing the new(EABS), electronic air braking system on coal trains. Met some great folks, and there was a lot of excitement on the system, and the growth that the rail industry was having at the time.

[C855B]

... About $25 of each bill is a fee to the gas co. ...

Yep. Since the apartment building... you know the story... is now vacant, we're paying utilities on five separate units while renovations are underway. With heating season over, we shut off the gas service on four to save the $25-per-account service fee. For the layout building, the equivalent "non-residential" fee was $75/mo., which is why we went all-electric and "retired" the gas service. $900 a year pays for a lot of electric heat.

I just heard one of the BNSF trains blow for the nearby crossing. Losing the four daily trains is really going to underscore the drop in rail business through here. I haven't counted traffic recorded on the railcam for a few months, but it fell about 10% last year and the continuing decrease is becoming perceptible.

[Blazeman]

Last week was the NE Rail Shippers gathering. Keith Creel addressed the group. Afterward, lots of talking about NS and coal business declines forcing them to think about line viability.

Consensus was NS will be moving to line sales or leases. Per earlier comments here regarding BNSF Beardstown, similar thinking for traffic declines. First line sale that came to the group's mind was the Delmarva lines.

[Ed Kapuscinski]

Consensus was NS will be moving to line sales or leases. Per earlier comments here regarding BNSF Beardstown, similar thinking for traffic declines. First line sale that came to the group's mind was the Delmarva lines.

Which is weird, considering it's not a coal line.

Then again, there's been discussion of spinning it off since... I think the 1890s. And it hasn't happened yet.

[Iain]

There's been talk of NS spinning off the Fayetteville branch. 

[Lenny53]

It's not just coal that is down

http://business.financialpost.com/news/energy/crude-by-rail-is-running-out-of-track-as-the-economics-behind-it-loses-steam

[Robbman]

Last week was the NE Rail Shippers gathering. Keith Creel addressed the group. Afterward, lots of talking about NS and coal business declines forcing them to think about line viability.

Consensus was NS will be moving to line sales or leases. Per earlier comments here regarding BNSF Beardstown, similar thinking for traffic declines. First line sale that came to the group's mind was the Delmarva lines.

Former VGN north of Elmore and the WV Secondary in August