Grainnet

Rochester, MN -- The Federal Railroad Administration (FRA) has decided that the Dakota, Minnesota & Eastern Railroad (DM&E) will have to continue operating under a Safety Compliance Agreement because the railroad failed to satisfy the Agreement's safety requirements.

DM&E is currently one of only two railroads in the United States whose poor safety record has forced it to operate under such a safety agreement with the FRA.

DM&E's Safety Compliance Agreement was scheduled to terminate on Oct. 17, but the FRA determined that a full one-third of the 30 terms and conditions must remain in effect.

The extension provides independent verification of continuing safety problems at DM&E.

The FRA met with DM&E management on Oct. 17 to discuss its one-year assessment of DM&E's documented weaknesses in four major areas (track maintenance, training and testing on railroad operating rules, bridge inspections and warning devices at highway-rail crossings) but DM&E never announced this FRA decision.

Instead, the latest information about DM&E's safety was obtained through a request under the Freedom of Information Act.

The DM&E has repeatedly cited "old rail" for derailments and other accidents but has refused to acknowledge its consistent safety failures to meet its Safety Agreement obligations.

"We can only speculate on what other information DM&E is withholding from the public even while it attempts to secure $2.3 billion from the taxpayers by keeping them in the dark. DM&E's safety problems just don't go away," said Chris Gade, spokesperson for the Rochester Coalition.

"DM&E has failed to bring its operations up to industry standards, even when it's under a government microscope."

"DM&E's failure to comply with the Safety Agreement underscores why the public can have little confidence that it will perform more safely if given the means to operate 10-times the number of trains at four-times the speed every day through Rochester and communities all along the line," he said.

The FRA report outlined six requirements where DM&E failed to meet its Safety Agreement obligations, including:

- No documentation that DM&E conducted a quarterly internal audit of safety testing results for April, May and June 2006

- No written certification, on a monthly basis, that DM&E testing records are accurate and complete

- No specific policies or procedures requiring that malfunctioning active warning systems at highway-rail grade crossing be fixed in a timely manner

- FRA inspections found 10 violations and numerous defects related to highway-rail grade crossing signal inspection, testing and maintenance resources

- FRA is "not convinced DM&E can accomplish the required signal tests, repairs, and maintenance with its current staffing"

- FRA is not convinced that DM&E made necessary revisions to allocation of signal and grade crossing resources

Rochester Coalition member and Olmsted County Board Chair Ken Brown said this latest development further amplifies the coalition's concerns about DM&E's worthiness for a record government subsidy, stating, "If this isn't proof that this railroad shouldn't be given a $2.3 billion dollar government bailout, I don't know what is."

Brown further stated, "DM&E continues to blame its poor safety record on the condition of its track - some dating back to 1872 and purchased by DM&E more than two decades ago.

DM&E refuses to accept responsibility for a cultural problem that would continue, even if they ran on brand new rail.

"The FRA is in the awkward position of enforcing rail safety regulations against a railroad with chronic safety issues while considering DM&E's application for a $2.3 billion taxpayer-supported loan," said Brown.

FRA data on rail safety inspections also indicates persistent safety problems.

As of today, inspectors have logged 4,737 safety defects during 2006 at DM&E and its Iowa, Chicago & Eastern (IC&E) subsidiary.

The running total is already more than triple DM&E's 1,400 safety defects for all of 2004.

The six issues will remain open for 90 days, until Jan. 17, 2007, while the FRA conducts audits and inspections to determine whether further action is needed.

In addition, the Safety Compliance Agreement outlines four provisions on track maintenance that will remain in effect another two years.

DM&E blames its high number of derailments on old track, but the Safety Compliance Agreement holds DM&E responsible for maintaining its track, which can eliminate many track-related derailments.

Although it terminated a requirement related to bridge maintenance, FRA expressed concern about bridge conditions in western South Dakota.

FRA noted that "some bridges are still in very poor condition" and issued a word of caution: "if at any time FRA finds a bridge that is an imminent hazard, FRA has the ability to remove the bridge from service with an Emergency Order if DM&E fails to act appropriately."

FRA slapped DM&E with the Safety Compliance Agreement in October 2005, making DM&E one of only two U.S. railroads under a federal safety watch.

In November 2005, FRA published its 2004 Railroad Safety Statistics Annual Report, which ranked DM&E worst in total safety and train-accident rate among the nation's 43 largest railroads.

In December 2005, DM&E applied for the biggest federal loan to a private company in U.S. history.

For more information, call Jake Reint,Rochester Coalition, at 952-346-6190.

See Related Websites/Articles:

• Rochester Coalition

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