NEWS

OHIO RAIL DEVELOPMENT COMMISSION
50 W. Broad Street, Columbus, Ohio 43215

(614) 644-0306 (p) / (614) 728-4520 (f)

FOR IMMEDIATE RELEASE Contact: James E. Seney

September 11, 2003 (614) 644-0306

COLUMBUS – For America’s railroads, September 11, 2001, ushered in a new era and its accompanying new problems.

Railroads, whose security concerns previously had focused on thefts and damage to their property, now found themselves threatened by sabotage by trained and well-financed terrorists.

Within a few hours of the attack on the World Trade Center’s twin towers, the railroads, through their trade group, the Association of American Railroads (AAR), were meeting with the FBI and other federal agencies to develop a plan to combat terrorism.

Freight traffic was suspended in the New York area. Some shipments of hazardous material were embargoed. Access to key facilities was restricted. And the industry began educating its 200,000 employees on how to be the eyes and ears of a railroad security network.

"The discussions started immediately (after 9/11)," said Tom White, a spokesman for the AAR. "And we now have an extensive program in place."

Five critical action teams, using national security practices, analyzed the railroads’ operations, their infrastructure, their information technology and communications systems, how they ship hazardous materials, and the services they provide to the military.

The program developed involved creating a database of the railroads’ critical assets; assessing the vulnerability of these assets; analyzing the risk threat, calculating the degree of risk and developing countermeasures; establishing alert levels and the appropriate action at each level, and establishing the responsibilities of the AAR’s operations center and the railroad alert network.

The four levels range from normal operations to heightened security awareness, a credible threat of an attack, or the confirmation of an actual attack. The AAR created the new position of executive director for security and established a 24-hour, 365-day- year operations center to coordinate rail security nationwide.

"Railroads have always had their own police departments and there was always a level of security but 9/11 brought about a greater level of awareness and activity," White said.

So far, White said, there have been no instances of rail terrorism and the industry received an award from the Department of Defense for its security program.

"The Ohio Rail Development Commission is very proud of the way the railroads have responded (to the security threat)," said James E. Betts, Chairman of the Commission, which oversees rail issues for the State of Ohio. "While we aren’t directly involved in security matters, we are cognizant of the problems facing the industry and are happy to lend assistance, when appropriate."

Much of the security burden fell on the country’s two major railroads, CSX Transportation, Inc. and Norfolk Southern Corporation. The two railroads had taken over the old Conrail system. CSX and NS have coordinated their efforts with the regional and short-line railroads.

David Hall, a spokesman for CSX, said the company has invested millions of dollars in installing remote surveillance systems, hiring additional police and other security measures. CSX’s 24-hour police command center is linked to the AAR security center and to federal agencies. It has also cost CSX money to make changes to operating procedures at ports and has slowed down traffic at U.S. borders.

Hugh Kiley, assistant vice president of operations for NS, said the railroad has improved their security system and have worked to protect the 11,000 bridges and 22,000 miles of track along their rail network. He said Ohio is a critical state because trains traveling in every direction pass through the state. "Our infrastructure in Ohio is the key to going North, South, East, or West," Kiley said.

Kiley said NS’ police force works closely with other railroads, the Ohio Department of Public Safety and local law enforcement agencies to ensure a constant flow of information between them. "If there is even a rumor, we are going to react to it, Kiley said. "Trespassers who were previously chased away by railroad police are now arrested. Just chasing them off the property is no longer acceptable."

Regional railroads, such as the Wheeling & Lake Erie Erie Railway (W&LE), based in Brewster, in Stark County, have tightened security at their facilities, said Bill Callison, a vice president of the railroad. The W&LE has over 500 miles of track in Ohio. "We have secured our yards and gates in accordance with the procedures of the other railroads," he said.

Mike Connors, a vice president of the Ohio Central Railroad, said the railroad employees have been schooled on the AAR’s security procedures. "Our security today is on a more focused basis," he said.

"We are all in the same situation," said Matt Reilly, executive director of the American Short Line and Regional Railroad Association, which represents 460 railroads.

Most of the railroads said they have not experienced declines in traffic since 9/11. The AAR said 40% of the intercity freight is transported by rail and that 67% of the coal used by the utilities also goes by rail.

"There is no question that the movement of goods and people by rail in a quick and cost-effective manner is critical to the economy of Ohio and our nation,’ said ORDC’s Chairman James Betts.

Tom McOwen, an ORDC commissioner and the operator of an excursion railroad, said a decline in ridership and major increases in insurance rates have hurt excursion lines in Ohio. "Increased insurance rates and loss of ridership can turn a railroad that is marginally profitable into a loser," he said.

While the airlines suffered a major drop in passengers immediately after 9/11, Amtrak suffered only a 1% loss and this year is headed to carrying a record number of passengers, said spokesman Ray Lang.