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Rail News Home Rail Industry Trends

3/2/2004



Rail News: Rail Industry Trends

NS, UP go the extra mile to please East Coast utility


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Norfolk Southern Railway and Union Pacific Railroad recently moved low-sulfur Powder River Basin (PRB) coal more than 2,600 miles from Wyoming to New Jersey — a record-breaking distance, according to NS' monthly newsletter.

"We believe this is the longest west-to-east coal movement in the United States," said Doug Evans, NS director of utility coal, north.

The Class Is arranged the move to help utility Conectiv Energy Inc. reduce sulfur-dioxide emissions at its Atlantic City, N.J.-area plant — which is located near a resort town and residential area — by blending PRB and East Coast-supplied coal.

"Conectiv wanted to make sure it was reducing emissions in the most cost-effective way at one of the [plant's] two units while complying with state standards," said Connectiv Manager of Fuel Supply Frank DiGregorio. "Introducing coal from the Powder River Basin was the answer."

NS and UP officials negotiated a new joint-line transportation contract and coordinated delivery of the two coal types.

"We were very pleased with the transportation plan NS and UP proposed," DiGregorio said. "We were able to bring the right coal blend together to provide our customers with the power they need."