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P&WV Lease question

 
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Rich_S



Joined: 23 Aug 2011
Posts: 253
Location: Baden, PA

PostPosted: Wed Aug 01, 2012 12: 52 am    Post subject: P&WV Lease question Reply with quote

On one of the other groups we were having a discussion on the N&W's lease of the P&WV that is now being paid by NS.

The way I understand it, the N&W has agreed to lease the P&WV for 99 years, meaning their lease will expire in the year 2063.

Is NS leasing the P&WV to the W&LE or do they have some type of trackage rights over the P&WV?

I'd love to still be around in 2063 to see first hand what happens when the lease expires, but when it does, what happens? Will the W&LE have an option to purchase the P&WV?

If NS walks away and no longer wants to lease the line in 2063, does the W&LE have to stop using the line until new arrangements are agreed upon?

Last question, since NS is leasing the P&WV, did they have to get the P&WV's approval to remove the CTC signals and move the dispatchers CTC machine?

Rich S.
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Longview Station



Joined: 16 Apr 2005
Posts: 176
Location: Longview Station

PostPosted: Wed Aug 01, 2012 6: 29 am    Post subject: Reply with quote

Rich;

The lease reads they can retire mostly anything they want at any time...case in point N&W abandoned the Donora Branch and the W&LE abandoned the West End Branch. I see the Clairton Branch on the list next up for retirement now that the W&LE has a good working agreement with the AVR to access NS for interchange. But the lease also reads in the event the holder decides to vacate the property they must leave adequate locomotives, cars, equipment to sustain operations .............

NS subleased the P&WV to the W&LE.
Recently, like last year the lease holder changed the name from the P&WV to "REIT" Trust or something along those lines.
There also was some changes in the BOD's.

Interestingly though, the W&LE is sinking a ton of money into the main track. 136 pound CWR from Ohio into Rook. Track speed is targeted to again jump to 40 MPH. My honest opinion though, with all of the gas business forthcoming, track speed should be kept reasonable...perhaps no more than 30 MPH as one incident inside the residential area of Allegheny County would wreak havoc with a loaded tank train derailment.

Seeing this type of improvement on the P&WV is cause for me to take notice. Since the W&LE has been around, the P&WV has always been kept at the minimal status for upgrading as it was just leased property. But in 2012 with all the changes in stock ownership and all of this investment money, big times must be around that next long curve as the signal goes from a low yellow, to that high green...

I think these next few years we will see changes we have not seen since the AlphaJets died back in the mid 1970's. Traffic right now is way up. Somedays there is as many as 3 or 4 crews working out of Rook inside a 24 hour period. But again, this will change once MarkWest is up & running in Westland as they will shift everything to Westland and vacate Rook.
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PWVJer



Joined: 13 Dec 2005
Posts: 946

PostPosted: Wed Aug 01, 2012 7: 59 am    Post subject: PWV stuff.... Reply with quote

...thanks Gene for the reply to Rich's question(s). saved me a lot of re-sorting/lookin-thru
time.
BTW, I think you are 100% correct with the P&WV future operation
plans/out-look. If only half, of the things heard
(from folks in the kno) do indeed take place. The old P&WV Line,
will have an amazing transformation,
and a lot of fun-times for "High & Dry" fans to sit back & watch....
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Longview Station



Joined: 16 Apr 2005
Posts: 176
Location: Longview Station

PostPosted: Wed Aug 01, 2012 8: 03 am    Post subject: Reply with quote

Jer;

Just the investment of 136 lb CWR on the main track tells its own story as the current 112/115 joint rail has been sufficient for decades, but is being replaced.
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Rich_S



Joined: 23 Aug 2011
Posts: 253
Location: Baden, PA

PostPosted: Wed Aug 01, 2012 8: 04 am    Post subject: Reply with quote

Gene,
Thanks for the info on the lease agreement. Did they really change the name of the P&WV to REIT or are they saying the P&WV is a REIT?

Do you think they are also going to move the fracking sand operations from Rook to Westland? It would cut down on the trucking distance, but like you mentioned it would make Rook a ghost town again, which is not good.

Being from the Ambridge / Baden area, I'm not real familiar with the east end of the P&WV but, doesn't the Clairton Branch give the W&LE direct access to the Clairton Coke Works?

I though they just did some upgrade work on the Clairton branch?

If they close the Clairton branch, that would mean the only branch left would be the Mifflin branch?

How often does the W&LE run to Connellesville to interchange traffic with CSX? Is most of that interchange now being handled with the AVR?

It's good to see track being added on the West side of the route, it would be a shame to see more track lost on the East side of the route.

Rich S.
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Longview Station



Joined: 16 Apr 2005
Posts: 176
Location: Longview Station

PostPosted: Wed Aug 01, 2012 11: 05 am    Post subject: Reply with quote

Rich;

I own (I did own) some P&WV stock. Last year the name changed to REIT. The REIT wants to further develop the property. That could mean many things I'm sure.

From what I have been told, MarkWest will move their entire operation to Westland. FRACTECH I hear will expand their operation & take over what MarkWest vacates or something to that effect. I also just heard all of the Yard tracks at Rook will be tore out & replaced with heavier rail, so it looks to be a long future for Rook.

Yes the Clairton Branch gives direct access to Clairton Coke...but I can't remember when the W&LE last moved coke. And yes the branch was put back together a few years back, then sucker punched by a garbage truck that took out a bridge, but its all back together again. The Clairton Branch I'm guessing is a headache for the W&LE. Bad track, 5 miles long, a very busy Route 51 highway crossing, curves & grades. I hear the arrangement right now is with the AVR to move interchange to NS...
This same thing happened to the West End Bridge...and now its abandoned with the Steuben street area completly erased. I did hear the right of way will stay intact in case the future holds something unforseen at this time ?

For the W&LE to start taking tank trains to Clairton, it needs totally rebuilt with heavier rail, and all new ties and I don't see this happening anytime soon. Some of the rail on the Clairton Branch is 105 pound.

I am hearing traffic to the SWP is picking up to the amount of 2 crews per week for gas business. Alot of ties were replaced this summer to keep it safe. Track speeds are still slow but it sounds this wil lbe addressed next year once Rook to Pittsburgh Junction is completed.

Also don't forget, Vancoram out at Mile Post 94 is seeing life again, atleast for a short time as track is going to be laid into the plant to remove that gigantic pile of ore. Its going to be interesting to see how this all pans out in the months ahead...

And lastly...there might be one other item in the works in the next year or two for the P&WV...I can't go any further, but I pray this business comes together for the W&LE.
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PWVJer



Joined: 13 Dec 2005
Posts: 946

PostPosted: Wed Aug 01, 2012 12: 31 pm    Post subject: ...more P&WV stuff. Reply with quote

... again GPS is right-on!
Rich & others, interesting to see how the WLE logistic folks
plan unfolds (which may be difficult at times to control). Keeping an almost "conveyer-like"
supply of ready tank-cars and other Energy related rolling-stock for
Range Resources/MarkWest.

The P&WV will not be a "one-end" line. No details yet, should see some nice
increase in volume & traffic on the C'ville Div. & the interchange branches as well.
...of course all this info is just a guess-speculation-conjecture!
Other players on the East-End to watch: GWI/B&P, AVR-SWP
and maybe CSX???

Rook Yard may see a bit less
end-line traffic and seem a little less chaotic, but still OK.

The entire P&WV High-Line looks to have a bright future.
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Rich_S



Joined: 23 Aug 2011
Posts: 253
Location: Baden, PA

PostPosted: Wed Aug 01, 2012 7: 47 pm    Post subject: Reply with quote

Gene and PWVJer,
Thank you both for the updates and it is good to see the old High and Dry making a strong comeback. I can tell you NS is so confident in the Marcellus Shale gas business that, they released news a few months ago that they are expanding Bellevue. NS is adding another hump and 35 tracks to Bellevue yard, with each track being a mile in length. I cannot remember the exact date the construction is to begin, but they said the extra capacity was being added because of the Marcellus Shale gas business. The alpha jets and FM's maybe long gone, but it looks like the P&WV's rails will be kept polished well into the future. Now to just find some time and try and make it back to my favorite train watching location along the P&WV :D

Regards,
Rich S.
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