Following the 2008 4th quarter and first semester of 2009 which were heavily impacted in terms of activity, as for any other European rail freight undertakings, Veolia Transport voiced about selling its cargo branch, as a part of a 3 G€ asset selling plan, 1G€ having to be obtained by the end of the year.

Under a debt weighing about 2 G€ in 2008, and having performed a halved profit compared to 2007, hardly reaching 405 M€, Veolia Environment was looking to earn 100M€ with the cession of Veolia Cargo. This subsidiary of a revenue around 188M€ in 2008 had been experiencing an explosive growth since 2003. At that time, the rail operator was only consisting of its German and Netherlandish branches and was soon added the French branch, in 2005, which was accounting for CFTA Cargo and Socorail, as well as a new domestic operator, the whole French subsidiary accounting for a 50 M€ revenue in 2008. The growth was completed in early 2008 after the merging with the German rail operator Rail4Chem, created by a chemical shippers consortium. This last absorption led to a 60% growth in the revenue of Veolia Cargo.

The anouncement of Veolia Cargo cession led to some emotions within the railway undertakings community, especially towards the identity of a possible buyer. Veolia Cargo was indeed chronologically the first private company to have operated a freight train in France (in 2005) and was therefore regarded by many as the symbol of competition within the rail sector.

Quite unsurprisingly, the potential buyers were no one else than incumbants: DB-Schenker, SNCF and Trenitalia. DBS, which undertook a heavy year of external growths (mainly EWS, Transfesa, and increases in the capital of some Polish operators, etc.) finally withdrawn from the bidding process.

In the end, this is a quite unexpected joint acquisition that is likely to occur: SNCF is buying out Veolia Cargo foreign activities (Veolia Cargo Deutschland, Italia, Nederland), while Eurotunnel (via its subsidiary Europorte2) would purchase the domestic ones. SNCF is therefore in the ideal position, in which she acquires Veolia Cargo portfolios and assets abroad, especially the former Rail4Chem which will enable the French incumbent to compete directly with DBS on its domestic market, without having to deal with rationalization plans to manage the redundancies in their production system or competition authorities blaming in the case of a complete purchase of Veolia Cargo.

When it comes to Europorte2, the relevance of such a purchase is to be questionned. At the moment, this entity is exclusively operating from Fréthun (FR) to Dollands Moor (UK), that is to say from one side of the Channel tunnel to the other one, as a subcontractor for railways undertakings, even if the license under which is operating Europorte2 enables it to ride on the main lines, provided the drivers to be certificated on each trip.

Thus, if the domestic main line activities purchase can make sense when it comes to Europorte2, the way how other Veolia Cargo France subsidiaries, such as Socorail (terminal locomotives operations, manoeuvres, maintenance of terminal installations, etc. in ports or industrial plants) or CFTA Cargo (bundled management and operation of about 150km of freight only tracks to which the company is physically bonded by leasing) will benefit Eurotunnel group has yet to be found.

The A380 will fly the daily AF7/AF6 flights between New York (JFK) and Paris (CDG):

AF7: Dep JFK 19.10 – Arr CDG 08.35+1

AF6: Dep CDG 13.30 – Arr JFK 15.45.

The Air France A380 will be fitted with 3 cabins:

- 9 Première seats at the front of the main deck

- 80 Business seats at the front of the upper deck

- 449 “Voyageur” (Economy) seats, including 343 on the main deck and 106 on the upper deck.

Seats on non-revenue inaugural flights (AF6 on 20 Nov and AF7 on 21 Nov) will be auctionned in favor of charities.

The first Air France A380 has been given the new Air France livery by Airbus at Hambourg-Finkenwerder, where it will be delivered to the airline in October.

http://www.airfrance.fr/

The move follows the Spanish stock market regulator CNMW exempted Iberia from making a takeover bid for the new airline. Iberia will hold a 45.85% shareholding in the new Vueling. The 36-month old Clickair brand will disappear and Vueling will become Spain’s second largest carrier flying 11 million passengers a year from six bases including its Barcelona headquarters. The new Vueling will cover a route network of almost 50 destinations.

The merged airline will also retain Clickair flights to Casablanca and Marrakech, Moscow, St. Petersburg, Warsaw, Budapest and Bucharest. Italy will continue to be Vueling’s second biggest market after Spain. Madrid will feature prominently on the new Vueling’s network as one of its six Spanish bases, the others being Barcelona, Seville, Bilbao, Malaga and Valencia. The new Vueling will cater for 70% leisure/30% business travellers, said Cruz. Vueling will operate 35 Airbus A320s (18 aircraft coming from clickair and 17 from Vueling), serve 46 airports and run 92 routes. The combined workforce will total 1,300, including flight crew and office staff.

Source: http://www.travelmole.com

• Aviation Safety: Better Data and Targeted FAA Efforts Needed to Identify and Address Safety Issues of Small Air Cargo Carriers. GAO-09-614, June 24, 2009 (55 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-614
• Highway Trust Fund: Options for Improving Sustainability and Mechanisms to Manage Solvency. GAO-09-845T, June 25, 2009 (14 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-845T
• International Aviation: Federal Efforts Help Address Safety Challenges in Africa, but Could Benefit from Reassessment and Better Coordination. GAO-09-498, June 16, 2009 (38 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-498
• Public Transportation: New Starts Program Challenges and Preliminary Observations on Expediting Project Development. GAO-09-763T, June 3, 2009 (16 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-763T
• Recovery Act: The Department of Transportation Followed Key Federal Requirements in Developing Selection Criteria for Its Supplemental Discretionary Grants Program. GAO-09-785R, June 30, 2009 (7 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-785R

The train was riding approximately at 188 mph or 300 kph. This is not top speed but… commercial speed: Marseilles to Paris in 3h08, 863 kilometers (or 537 miles)… Average speed of 171.2 mph with a stop in Avignon. What do you say?

• Aviation Security: TSA Has Completed Key Activities Associated with Implementing Secure Flight, but Additional Actions Are Needed to Mitigate Risks. GAO-09-292, May 13, 2009 (62 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-292
• Federal Transit Administration: Progress and Challenges in Implementing and Evaluating the Job Access and Reverse Commute Program. GAO-09-496, May 21, 2009 (52 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-496
• Freight Rail Security: Actions Have Been Taken to Enhance Security, but the Federal Strategy Can Be Strengthened and Security Efforts Better Monitored. GAO-09-243, April 21, 2009 (123 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-243
• Motor Carrier Safety: Commercial Vehicle Registration Program Has Kept Unsafe Carriers from Operating, but Effectiveness Is Difficult to Measure. GAO-09-495, May 12, 2009 (37 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-495
• Responses to Questions for the Record: March 18, 2009, Hearing on ATC Modernization: Near-Term Achievable Goals. GAO-09-718R, May 20, 2009 (14 pages).
  http://www.gao.gov/docdblite/details.php?rptno=GAO-09-718R

“MTA grants Italian rail car builder more time in contract negotiations” by Maeve Reston, Los Angeles Times, May 28, 2009

Los Angeles County’s Metropolitan Transportation Authority board delayed a decision today on whether to hire an Italian rail manufacturer to build 100 cars needed for Metro’s light rail line extensions. The delay — the second since March — would give MTA officials more time to work out the details of a new offer by the firm, AnsaldoBreda, for a $300-million financial guarantee on the potential 100-car contract. [...]

Link: http://latimesblogs.latimes.com/lanow/2009/05/mta-grants-more-time-to-controversial-italian-rail-car-builder.html

“Subsidies attracting riders to mass transit” by Sean Holstege, The Arizona Republic, June 2, 2009

When Jim Wilson took a job at Arizona Public Service Co. a year ago, he figured he’d pay $75 a week in gas and $40 a month on parking to commute from Surprise to downtown Phoenix. So, when APS offered him a transit pass for free, he was thrilled. [...]

Link: http://www.azcentral.com/news/traffic/lightrail/articles/2009/06/02/20090602subsidy0602.html

“Time For Feds To Fund Mass Transit Operating Expenses?” by Linda Caruso, The National Journal, June 1, 2009

Americans are using public transportation in record numbers — taking 10.7 billion trips last year, an increase of 4 percent over 2007 — yet because of declining state and local budgets, many mass transit systems are facing the prospect of raising fares, cutting service and laying off staff. [...]

Link: http://transportation.nationaljournal.com/2009/06/is-it-time-for-the-feds-to-fun.php

“Recession hasn’t slowed light rail traffic” by Steve Harrison, Charlotte Observer, May 28, 2009

The Lynx Blue Line averaged 15,121 weekday trips in April – surprisingly high ridership given the severe recession. Charlotte’s light-rail line had been averaging roughly 14,000 trips for much of the year, and the Charlotte Area Transit System expected it to decline because fewer people are working. [...]

Link: http://www.charlotteobserver.com/local/story/749244.html

“Rail industry urges shorter trains off-peak to cut carbon emissions”, The Guardian, May 28, 2009

The rail industry is urging the government to run shorter trains in order to meet Britain’s climate change obligations. Removing carriages outside rush hour would conserve energy and reinforce rail’s reputation as one of the greenest modes of transport, says an industry manifesto published today. Network Rail, owner of rail infrastructure, and the Association of Train Operating Companies (Atoc) argue they can help reduce carbon dioxide emissions by 20% by 2020 by running shorter trains at off-peak times. [...]

Link: http://www.guardian.co.uk/environment/2009/may/28/railway-trains-climate-change-carbon-emissions

“Union Pacific CEO: Regulation Inflating Funding Costs” by Doug Cameron, Dow Jones Newswires, May 27, 2009

CHICAGO -(Dow Jones)- The head of Union Pacific Corp. (UNP) warned Wednesday railroads face inflated funding costs because of uncertainty about future industry regulation. James Young, chief executive, intensified his criticism of the planned reauthorization of the Transportation Act later this year, which he said could damage future industry investment. “It’s bad law,” said Young in remarks to a rail shippers conference in Chicago. [...]

Link: http://money.cnn.com/news/newsfeeds/articles/djf500/200905271341DOWJONESDJONLINE000780_FORTUNE5.htm

“Italian railways says to bid for Veolia Cargo”, Reuters.com, May 18, 2009

Italian railways Ferrovie dello Stato said on Monday it would bid for Veolia Cargo (VIE.PA), which competes on freight transport with French state-owned railway company SNCF.[...]

Link: http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLI51107520090518

“European Train Travel: Working on the Railroad”, by Bruce CROMLEY, Time.com, May 28, 2009

Europe’s railroad industry, for decades dominated by stodgy state-owned monopolies, is ready for a renaissance of its own. A looming round of deregulation is set to spark an industry restructuring, pitting existing state-owned railroads against smaller private upstarts.[...]

Link: http://www.time.com/time/magazine/article/0,9171,1901431,00.html?iid=tsmodule

“Florida still has chance for fast train, but other states vying for U.S. aid” by Michael Turnbell, South Florida Sun-Sentinel, May 25, 2009

A bullet train, its supporters say, could boost tourism, create jobs and get cars off Florida’s crowded roads. There’s even $8 billion in federal stimulus money available to help build the proposed Tampa-Orlando-Miami line, where trains would move at least 110 mph and zip travelers from South Florida to Disney World in less than two hours. [...]

Link: http://www.orlandosentinel.com/sfl-high-speed-rail-b052509sbmay25,0,6488044.story

“Against All Odds, Florida Rail Authority Rolls On”, News Service of Florida, May 26, 2009

The Florida High Speed Rail Authority last month had one of its most high profile members resign and the rest of its members terms have actually expired. But the authority has kept the wheels on its plan to apply for federal money that can be used to build a proposed Tampa-Orlando-Miami bullet train. [...]

Link: http://www.jaxobserver.com/2009/05/26/rail-authority-rolls-on-despite-vacancy-expired-terms/

“High-speed rail proposal is viewed with concern” by Christine Souza, California Farm Bureau Federation, May 27, 2009

As the state’s High-Speed Rail Authority plans an 800-mile high-speed rail system that will help alleviate congestion on roadways and transport passengers from San Francisco to Los Angeles in a little over two and a half hours, California’s agricultural landscape is likely to change dramatically. [...]

Link: http://www.cfbf.com/agalert/AgAlertStory.cfm?ID=1316&ck=F3F1B7FC5A8779A9E618E1F23A7B7860#top

“High speed rail for America” by Sean Devlin, Examiner.com, May 25, 2009

The CBS Evening News revisited the high speed rail discussion and looked into as whether it was a viable option. This is especially important as the green movement is looking for more environmentally responsible transportation, part of which means alleviating road and air traffic congestion. [...]

Link: http://www.examiner.com/x-6812-Newark-Alternative-Transportation-Examiner~y2009m5d25-High-speed-rail-for-America

“High-speed rail dreams depend on dedicated tracks” by Aubrey Cohen, Seattlepi.com, May 28, 2009

While rail advocates dream of passenger trains blazing through Washington at 200 mph, freight railroad representatives say anything half that fast won’t work on their tracks. ”True” high-speed rail would exceed 150 mph, but the Amtrak Cascades line between Eugene, Ore., and Vancouver, B.C., is more likely to see incremental progress from the current top speed of 79 mph to between 110 and 125 mph (the top potential speed of the current Talgo trains), Cascadia Project rail fellow Ray Chambers said at a forum in downtown Seattle on Thursday. [...]

Link: http://www.seattlepi.com/transportation/406665_trains28.html