FEC to decrease intermodal fuel surcharge
The Florida East Coast Railway will decrease its intermodal fuel surcharge to 27 percent effective Monday, keeping the charge near record highs, but ending a sharp climb over nearly a year.
In February 2007 the intermodal surcharge was 15.5 percent. By May 2007 the surcharge had reached 20.5 percent and continued climbing most of the last year. The charge is based on the national average for fuel prices as determined by the U.S. Energy Department.
The FEC has been in transition over the last two months. The railroad, which has a 450-mile primary line between Jacksonville and Miami, was acquired by the Fortress Investment Group in July 2007. The U.S. Surface Transportation Board gave Fortress authority to take operating control of the FEC Oct. 29.
Fortress also controls Baca Raton-based RailAmerica Inc., which specializes in regional and short line railroads, and operates 42 specialty railroads throughout the U.S. and Canada.
In early November, Fortress named RailAmerica president and Chief Executive Officer John Giles as president and CEO of the FEC. David Rohal, a RailAmerica vice president, was named vice president of the FEC and is in charge of supervising all FEC operations. John McPherson, who had headed FEC since 1999, is working with Giles and Rohal during the transition period.
