News & Reviews News Wire Secrecy issues dominate as Gulf Coast STB hearing continues: Analysis

Secrecy issues dominate as Gulf Coast STB hearing continues: Analysis

By Bob Johnston | May 11, 2022

| Last updated on March 16, 2024


Proprietary material — which leads to three hours of confidential sessions — also at issue in traffic modeling

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Passenger train with theater car at rear stopped at station
Amtrak’s Gulf Coast inspection train is welcomed at Bay St. Louis, Miss., on Feb.18, 2016. Efforts to resume service on the route are the subject of an ongoing Surface Transportation Board hearing. Bob Johnston

WASHINGTON — Cross-examination of Jim Blair, Amtrak’s senior director of host railroads, consumed the full 8-hour, 28-minute session Monday as the Surface Transportation Board’s hearing on the effort to launch passenger service between New Orleans and Mobile, Ala., resumed after an almost three-week hiatus.

Blair was questioned by lawyers from Norfolk Southern, CSX Transportation, and the Port of Mobile; redirect questioning from an Amtrak attorney was held over until the hearing resumes today (Wednesday, May 11), at 9:30 a.m. EDT. That session will be lived streamed at the STB YouTube channel, which also has recordings of Monday’s session and those of the previous eight days.

With two Amtrak witnesses still to be called, following by closing arguments from all parties, as many as three additional hearing dates could be likely. Those dates will be determined Wednesday.

More than three hours Monday’s proceedings were held in “confidential” sessions withheld from public viewing because of what the parties perceive to be sensitive and proprietary information.

Operating information not shared

Access to operating information has been a long-running issue in Amtrak’s effort to offer two daily round trips on the New Orleans-Mobile route. Board members learned Monday that secrecy demanded by host railroad CSX drove the railroad’s requirement that its 2019 traffic data only be used in Rail Traffic Controller modeling by consultant HDR. The firm had authored a previous study which concluded $2.2 billion in infrastructure improvements would be required to accommodate Amtrak service between New Orleans and Orlando, Fla.

Blair testified that Amtrak’s decision not to extend the RTC study past one year was driven by Amtrak’s inability to receive access to this data in September 2020, along with  subsequent delays into 2021 while HDR ran additional iterations of the study. The Federal Railroad Administration expressed the same concern. This is what prompted Amtrak to seek route access from the STB in March 2021.

When HDR finally released modeling details during the hearing’s discovery phase in September 2021, “Amtrak people were not allowed to look at the RTC data,” Blair said, adding, “We were denied access to string lines (graphs) of actual train operations.”

He said Amtrak and HDR agreed to tweak departure times of the round trips to minimize known freight train interference. Also disclosed Monday: the schedules contain recovery time (padding) that amounts to 22% of pure running time, compared with the typical recovery time of 10%. This was tacit acknowledgement by Amtrak that schedules should have more wiggle room during construction of $99 million of infrastructure improvements recommended in a 2017 Gulf Coast Working Group report.

Chairman wants to hear more about meeting

As in previous sessions, Chairman Martin Oberman’s questioning zeroed in on key issues. A subsequent RTC model, using 2019 data projected to 2039, was created by consultant HNTB as the basis for $440 million of infrastructure improvements CSX and Norailroads now say is required to start service. Oberman asked Blair whether Amtrak could have run the model without the 20-year projection, but Blair said because that data was proprietary, “We didn’t have a live model to run scenarios off of.”

Oberman also wanted to know more about September 2021 meetings between NS, CSX, local officials, and members of the Southern Rail Commission. As Trains reported [see “Gulf Coast Showdown,” April 2022], the railroads suggested $140 to $160 million of route improvements would be sufficient, but evidence of those proposals has not been introduced.

CSX Attorney Ray Atkins said the meetings “were part of a global effort by Norfolk Southern and CSX to secure a settlement in this case, and those discussions should not be admissible under the federal rules of evidence.” Observed Oberman, “If the discussions were with an outside party, the Southern Rail Commission, and reported in the media, I’m not sure how you can say they are not produceable.”

After determining Blair had not been present, Oberman said, “I’d like to hear from counsel, not now, about our consideration of whatever happened in that meeting, whether it is privileged or admissible in this proceeding.”

Although the witnesses, STB members, and most attorneys were in the Washington hearing room, streamed video of the proceedings often lacked audio for either the question posed or answer given — a problem that had not been evident in the eight previous sessions, held only by Zoom.

7 thoughts on “Secrecy issues dominate as Gulf Coast STB hearing continues: Analysis

  1. This is why the STB needs more power, they should have the authority to order the railroads to present data they claim is “confidential and proprietary” into a public record. Nothing, and I mean nothing, outside of actual contracts with shippers in “confidential and proprietary” in the world of railroading. Not when you can stand trackside with a scanner with a pad and paper and right down all movements in a given segment of right-of-way.

  2. Observing this never-ending scenario is like watching a python play with its food before devouring it.

    Imagine how different this issue would have been played out if Amtrak was run by experienced railroaders respected in their industry? But the days of Claytor, Gunn, Reistrup, and Moorman are long gone.

    In their esteem position is a bureaucrat from Capitol Hill and ex-airline managers who lack the requisite credibility to lead and negotiate within the industry, as they struggle to learn the definition of diaphragm, curtain, and plate.

    To exacerbate Amtrak’s leaderless position is the political imprimatur of NY’s Senator Schumer, who has ensured the lack of any new blood in the Board of Directors by continuing with the same ol’ Board Chair Coscia focused on real estate deals and the NEC-at the expense of a national network.

    As it has been proven how it is feasible to successfully work with the Class 1s, as evidenced by California’s JPA, Capitol Corridor and the UP, perhaps CSX/NS are merely waiting the inevitable game of musical chairs with Amtrak management?

    Inevitably, we can count on Flixbus to enter this short haul market with a frequency of schedules and fares that would negate any feeble effort offered by Amtrak timed around freight schedules.

    1. Thanks for that excellent and revealing post, Mr. Singer. I didn’t know, but am not surprised, at Sen. Schumer’s role in retaining Anthony Coscia as Board Chair. Apparently, that man of the people, just ask him he’ll tell ya’, Sen. Schumer also doesn’t give a rat’s butt about Amtrak service outside the NEC. Hope you read of Nos. 3, 5, and 393 trying to depart CHI today. Things are rapidly collapsing due to the folks you named now at Amtrak’s top management.

    2. Gardner has been around the block long enough in Amtrak service to know what he’s doing….the problem has been and always will be the BoD, which should be dismantled, permanently.

  3. CSX behavior is something close to laughable and Oberman is right to call it out. As noted before they don’t want everyone to see just how ineffective their operations really are. They really don’t want a “solution”, they want the Feds to pay to keep it as is. By stonewalling as long as possible they think they are building up their position, when its actually the other way around.

    And then trying to cut a deal outside the STB’s purview and calling it a “settlement” is just indicative of how far off the rails they have gotten.

    You are a regulated common carrier that has a legal mandate to allow passenger operations on your ROW. If you can’t live with that mandate anymore then just say so instead of lawyering your way to obstruction infinitum.

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