The Boring Company publishes map of proposed tunnels

Motor Authority News

The Boring Company, one of many projects under Elon Musk’s watch, has released a map showing where it imagines its first network of tunnels to run, if and when it receives government approval.

The map depicts two major arteries which follow Interstate 405 and 101 in California. It also shows that The Boring Company’s proposed tunnels will feature small offshoots running into Santa Monica, Venice, South Bay, Los Angeles International Airport, and Hawthorne, while the main artery will run all the way from Sherman Oaks to Long Beach airport.

The secondary tunnel runs to Dodger Stadium from LAX. As for the red color on the map, The Boring Company noted its intentions to build a proof-of-concept tunnel at the location.

It would run 6.5 miles and verify all systems work as intended. Public use wouldn’t start until it is “deemed successful by County government, City government, and The Boring Company.” The routes are merely a concept and do not represent any final decision, however.

Musk proposed the company’s solution as a way to alleviate Los Angeles’ infamous traffic congestion problems. A car would enter an elevator and then ride a sled through the underground tunnel at speeds up to 125 mph.

The CEO previously said a trip from the Westwood suburbs to LAX would take roughly five minutes. The drive normally takes an hour with traffic. Bikes and other pedestrians would use the same elevator and then enter pods to be transported to various destinations as well.

Previously, Musk said he received “verbal approval” to build a Hyperloop through New York City, Philadelphia, Baltimore, and Washington D.C. Hyperloop was never a project under Musk’s belt, but he recently converged The Boring Company and Hyperloop to build its own system. As for other Hyperloop projects, Virgin made a sizable investment into Hyperloop One, a leading hyperloop project. The transportation method would move riders at speeds up to 800 mph, but a full-scale test last year was limited to 125 mph.

All Aboard Florida receives $2B of bids for tax-free bonds

Read the full Wall Street Journal story here.

All Aboard Florida last week appeared to have raised the $600 million it sought to finance part of its passenger railroad, the Wall Street Journal reported Thursday.

The company received $2 billion in bids for the $600 million in private-activity bonds it was selling, leading to prices “a little better than we thought,” Wes Edens, chairman of Fortress Investment Group, All Aboard Florida’s parent company, told the Journal.

Brightline has said it plans to begin limited passenger service between Fort Lauderdale and West Palm Beach this month, with service between West Palm and Miami beginning early next year.

Full service through the Treasure Coast, which largely has opposed the project, and on to Orlando International Airport is still several years away, according to Brightline.

Subway chooses STI for European logistics

STI UK acts as the European control tower, managing the supply chain of the sandwiches across Europe with the exception of STI Sweden.

The contract will be on behalf of STI’s client IPC Europe, an independent purchasing organisation for Subway franchisees.

“Our European network gives us the possibility to serve Subway’s various regional markets quickly and efficiently”, said Roy Evans, business development manager at STI UK. “STI Freight Management’s dedication to quality and the diversity of its available equipment are some of the elements that make the organisation so attractive to IPC Europe.

“Our aim is to be more than just a transport service provider. We see ourselves on the journey to becoming strategic partners, always looking to foresee and offer solutions to IPC Europe’s logistical challenges.”

Schenectady-based GE Power to cut 12,000 jobs, but it’s unclear where

From John Cropley at the Schenectady Gazette

GE Power on Thursday announced it will reduce its workforce by about 12,000 people as it strives to make the $1 billion in cost cuts mandated by General Electric CEO John Flannery.

GE Power did not say where the cuts will be made, but multiple media outlets reported they would mostly come in Europe, rather than in the United States. GE Power has already made a series of much smaller workforce reductions this year at its headquarters in Schenectady, where about 4,000 people work, most of them for GE Power.

GE Power spokeswoman Katie Jackson would not say where the personnel reductions would be made, nor what other cost cuts would be undertaken to reach the $1 billion savings target.

With Thursday’s cuts, General Electric took the lead in 2017 job cuts by U.S. companies: A total of 19,242, according to the calculations of Bloomberg News. With three weeks to go for the year, General Motors is No. 2 in job cuts and Macy’s No. 3.

A few round numbers are being floated for the 12,000 jobs GE Power plans to eliminate: Reuters reported that 1,600 jobs will be cut in Germany, 1,400 in Switzerland and 1,100 in Britain. Bloomberg reported that GE Power is not making job cuts at this point in France because of an agreement General Electric made with the French government when it purchased the power-generation business of Alstom.

In his Nov. 13 address to shareholders, Flannery noted that GE Power had 153 manufacturing, repair and service sites and suggested this was an area where efficiency could be increased.

In announcing the “global headcount reduction” Thursday, GE Power cited challenges in the electrical power generation market worldwide. Demand for fossil fuel power products has decreased, it said, as renewable energy has grown. GE Power said it is shrinking its footprint and structure to match this environment and is focusing on “improving operational excellence.”

“This decision was painful but necessary for GE Power to respond to the disruption in the power market, which is driving significantly lower volumes in products and services,” Russell Stokes, president and CEO of GE Power, said in a news release. “Power will remain a work in progress in 2018. We expect market challenges to continue, but this plan will position us for 2019 and beyond.

“At its core GE Power is a strong business,” he said. “We generate more than 30 percent of the world’s electricity and have equipped 90 percent of transmission utilities worldwide. Our backlog is $99 billion and we have a substantial global installed base. This plan will make us simpler and stronger so we can drive more value for our customers and investors.”

The plant at the foot of Erie Boulevard in Schenectady manufactures steam turbines and generators, and has a significant backlog of work.

The job reductions made there this year have affected salaried managers and professional workers, not the hourly wage workers who do the manufacturing work.

GE Power said the 12,000 job cuts announced Thursday will affect both professional and production workers.

General Electric is working to cut costs by $3.5 billion companywide, increase profitability and boost stock value. The cuts GE Power announced Thursday didn’t yield much progress toward that third goal: GE’s share price rose only 5 cents, closing at $17.71, still near its 52-week low. As a percentage, that was a hair less than the Dow Jones Industrial Average increase. GE stock has plunged 44 percent this year even as the Dow as a whole has risen 22 percent.

In another cost-cutting move, General Electric cut its stock dividend in half last month, only the second such reduction since the Great Depression.

General Electric has about 300,000 employees in more than 100 nations around the world. GE Power was the conglomerate’s biggest component business in 2016, with sales of $26.8 billion, Bloomberg reported. The total would have been $36.8 billion after accounting for the effects of a reorganization this year in which General Electric added some energy businesses to the unit, Bloomberg said.