Ship ports, railroads slowly recovering from Hurricane Katrina

Washington (Platts)--1Sep2005

The Port of Mobile and its 20-mil-ton/year McDuffie Coal Terminal were still
closed Wednesday in the wake of Hurricane Katrina, but the news was better
than earlier in the week.

Port spokeswoman Judith Adams told Platts Coal Trader Wednesday that there was
still no power to the docks and staff was still assessing damages and cleaning
up, but the Army Corps of Engineers indicated damage to the ship channel
wasn't as bad as thought.

"The Corps is thinking that they may reopen the channel to reduced drafts of
38-42 feet in the next couple of days," Adams said. She also said Alabama
Power had said electricity would be restored to the facility by the end of
Wednesday. "We expect to at least have administrative personnel back to work
[Thursday]."

On Wednesday, Corps spokesman Pat Robbins said the ship channel was open to
barge traffic only.

"We are out there surveying today to determine what, if any, damage has
occurred," he told Platts Coal Trader. "Once that survey is complete, we'll
know what we need to do, if anything, to get that channel back fully
operational or we may decide, based on the survey, that ships can start
transiting. We probably won't know the answer to that until tomorrow."

CSX Corp. said it had restored rail service between Montgomery, Ala., and
Pensacola, Fla., while work continued to restore service along the bayfront
east of Pensacola. The route between Flomaton and Mobile, Ala., was open to
within 14 miles of Mobile, where debris remains on some sections of track.

Inspections continued between Mobile and New Orleans, but high water in some
areas hampered accurate assessments, especially in and around New Orleans, CSX
said.
The railroad was continuing to reroute traffic around the affected areas using
the gateways at Memphis and East St. Louis for exchange with western
railroads. 

An embargo remained in effect for traffic to, from, or through the area
between New Orleans and Mobile. CSX Assistant Vice President Katherine E.
Wilson also said the railroad declared a force majeure from Aug 28 and expects
it to last through about Sep 10. 

Norfolk Southern Corp. said its rail operations in Louisiana, Alabama and
Mississippi are returning to normal with the exception of the immediate New
Orleans area. 

Spokesman Robin Chapman told Platts Coal Trader Wednesday that an embargo was
still in effect south of Meridian, Miss., to New Orleans, and between Marion
Junction, Ala., and Mobile. Traffic normally moving though these areas for
interchange was being rerouted.

Since the hurricane struck, railroad crews have inspected some 1,400 miles of
railroad and removed 3,680 trees on lines in the Gulf states. The company said
preparations prior to the hurricane, such as moving rolling equipment inland
and staging people, ballast, rail and equipment just outside the hurricane?s
path, were helping to speed recovery. 

Stephen C. Tobias, vice chairman and chief operating officer, said repairs
will get under way in the next several days on NS? 5.8-mile long concrete
ballast trestle across Lake Pontchartrain from Slidell, La., to New Orleans,
where several miles of rail were washed from the top of the bridge.
Additionally, its Oliver Yard in New Orleans was under water as of Wednesday
morning. "Once we restore rail to the bridge and repair adjacent trackage, and
once water recedes, we will be able to move needed materials and supplies into
the area."

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