G&W Interchange Magazine Fall 2024

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Table of Contents

30, Number 3, 2024 G&W Interchange Genesee & Wyoming Inc. 20 West Avenue Darien, CT 06820 gwrr.com

If you have news to share across G&W, please send it to the Communications team. Email: interchange@gwrr.com © 2024 Genesee & Wyoming Inc. All rights reserved.

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BY

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ROBERT REYNOLDS

Colleagues,

As our 125th anniversary comes to a close, I want to thank all of you for being a part of G&W’s history. The reputation we have for safe, reliable and efficient rail service wouldn’t exist without your day-to-day contributions.

Now that we’ve spent a year celebrating our past successes and reflecting on the steps taken to become the company we are today, it’s time to turn our focus to the future. So, what’s next for G&W? We have worked hard over the past few years to grow our development pipeline, and now we must deliver on bringing these new-business opportunities to reality across many of our railroads. To do this, we must provide a service experience that exceeds our customers’ expectations, develop innovative ways to move our industry forward, shift more freight from highway to rail and, as always, continue to make safety our #1 priority.

Four critical pillars – Safety, Service, Technology and People – are foundational for our future, and there’s no one better to describe those pillars than the leaders of those respective areas. So, you’ll see a brief Q&A on the next pages with Andy Chunko, Mike Peters, TQ and Kimberley MacMillan, who lay out their visions of how these pillars will move us forward.

I hope you are energized by what we’ve been able to achieve over the past 125 years, and I hope you share my enthusiasm for what lies ahead as we take it to the next level.

Have a safe, healthy and happy holiday season! I look forward to seeing all of you over the next year in the field.

Michael October 15, 2024

Q&A: Looking Ahead To Our Next 125 Years

Safety

Q: What does our safety culture look like in the century ahead?

A: Great strides in safety have been made over the past 200 years of railroading. The sheer nature of railroading comes with many inherent challenges – from braving the elements, to moving large equipment over vast infrastructure, to coordinating and communicating across multiple departments and multiple railroads. It can be an unforgiving industry; all it takes is one person having lack of focus for one second to change a life forever.

Our success in the past has come when everyone is personally committed as a team to making safety G&W’s number one goal all day, every day. If we truly want to send everyone home to their loved ones after each shift, safety must be the cornerstone of everything we do. That commitment is personal – not only at work but throughout every aspect of life. It’s built on caring about yourself, your coworkers, the communities we work in and going home to your families. Safety is not a race, it is a journey – a journey in which you never arrive and a journey ensured by a commitment to never be anything less than your best.

The future will undoubtedly challenge us with new technology and new ways of doing business, but steadfast commitment to the fundamentals of our safety culture will successfully carry us into the next century.

Service

generation of customers?

A: Just as our railroads are unique, all our customers have their own specific challenges. So, there is no one answer to this question. Selling rail service to a new generation of customers will require us to do several things:

1. Listen to our customers: It is really hard to exceed our customers’ expectations if we don’t listen closely to hear what they need. This will require us to ask questions to make sure we understand their business and not just their transportation needs. Over the last year, our sales teams have been going through training to improve their skills in account management and opportunity development, which should pay dividends in the future.

2 . Empower our local teams to provide customized service to our customers: We have a long history of providing individual service to our customers. We’ll need to maintain that for the next 125 years. We will continue to compete against trucks, and our ability to provide flexible service will be key to earning more market share.

3. Provide technology to help our customers meet their goals: RailPulse is an excellent example of an investment we are making to push technology forward for the rail industry. With a consortium of investors in the industry (including Class Is, other short lines, equipment manufacturers and shippers), we are investing in equipping our railcars with telematics and developing a portal to manage this information. Our customers will have more visibility to their shipments, which means that we need to make sure we are also using the real-time information to identify and respond quickly to any issues.

4. Use our carbon footprint advantage to create new solutions for customers: Many of our customers are looking for solutions to reduce their carbon footprint, and rail shipments produce about a third of the carbon emissions of a similar truck move. Recently, we have been working with customers on opportunities like intermodal, transloading and online short-haul moves to help them reduce their carbon footprint. Going forward, we will identify the customers that prioritize reducing their carbon footprint and provide them with solutions that allow them to increase their rail share.

Technology

A: Our journey to enhance G&W’s profitable growth and competitive advantage through technology is off to a strong start.

Over the past five years, G&W has made solid progress in improving productivity with digital technology and enhancing decision making using timely data and information across commercial, safety, transportation, mechanical, engineering and other business domains, including the implementation of the new Dynamics 365 (D365) ERP platform. Looking ahead, we will focus our energy on five key areas:

1. Unwavering support of railroad operations to enhance productivity and service: Some exciting examples include new tablets and apps for frontline employees to improve productivity, user experience and collaboration; a next-generation transportation management system called Service Planner that will replace mCrew and enable us to better manage service; a new safety incident management tool that will save railroad managers’ time; as well as new PowerBI dashboards that enable management to monitor continuous productivity improvement – to name a few.

2. Digitizing and improving the customer experience to make it easier to do business with G&W: While freight rail has a 1:3 cost advantage and 1:4 carbon emission advantage compared to trucking, growth in rail has lagged trucking over the past two decades. One big contributor is the highly manual and sometimes painful customer experience across the rail industry. By digitizing and improving our customer experience, there is real potential for us to drive additional freight rail growth, which is good for G&W, our customers and the environment alike.

3. Automating support function processes to help teams become more efficient and effective: Over the past five years, IT’s focus has been on supporting railroads. With the new D365 ERP platform, moving forward, we will place equal focus on helping support functions automate processes and improve efficiency as well as spend less time on tedious manual work and more time on exception management, continuous improvement and innovation.

4. Continuing to invest in leading technology start-ups: G&W has invested in several start-ups, including Cargomatic, Parallel Systems and Railspire. Moving forward, we will continue making smart investments in opportunities that align with our strategy and position us to be a part of the industry’s digital disruption versus a victim of it.

5. Exploring the commercialization of some leading IT tools developed by G&W to help the rest of the short line industry: The U.S. has over 500 short line railroads, and many face similar challenges and opportunities in improving safety, productivity and service. Some of the leading-edge IT tools G&W has developed might be beneficial to other short lines (for example, the safety incident management tool mentioned above). As our in-house IT tools stabilize and mature, we will explore commercializing some of them to create a win-win for other short lines and G&W.

People

A: People are our most important asset and will remain critical to our future success. Among our strategies for continuing to prioritize a strong workforce are:

1. Developing Our Leaders: As the quality of leadership directly impacts employee engagement and productivity, G&W is making a strategic investment in our leaders by creating new training opportunities to develop their skills in managing teams, communicating effectively, navigating conflict and collaborating across the organization. Recognizing that a more well-rounded work environment creates a sense of belonging for existing employees and attracts new talent, we are also rolling out frameworks that will enable our leaders to gain better self-awareness and adapt to the different styles of their team members. Moreover, G&W is leveraging technology to personalize enhanced learning experiences and skill development, making training more accessible and engaging for all employees, regardless of level, location or schedule.

2. Improving Our Recruiting Processes: North America has seen historically low unemployment rates the last several years, and the fierce competition for talent is expected to continue in the years ahead. G&W must continually examine and improve the full-cycle recruiting workflow for efficiency and effectiveness. We have made significant strides in improving our talent acquisition approach since 2022 by proactively partnering our recruiters with individual hiring managers, developing local recruiting strategies to expand applicant pools, reducing candidate handoffs, monitoring recruiting KPIs (recruiter first touch time, time to hire, offer to hire ratio), and enhancing the onboarding experience. In our quest to become even better, G&W will evaluate recruiting vendor performance, expand our relationships with targeted colleges and conduct pulse surveys to collect feedback from new hires.

By focusing on leadership development and continuous improvement within our talent acquisition processes, G&W will attract and retain a strong workforce that will propel the company forward. n

New Rail-to-Road Transload Projects Help Drive G&W Growth

The challenge came directly from G&W CEO Michael Miller to each of the company’s 12 divisions. Which divisions, he asked, had the right stuff to capitalize on at least one new transload opportunity in 2024?

It was a challenge that was readily accepted by divisions across the G&W footprint, and the proof is in the numbers. As of September 2024, G&W divisions in the U.S. and Canada had identified at least 50 different new transload growth opportunities and were working to bring as many of them as possible to fruition by year’s end. These opportunities could ultimately add as many as 40,000 carloads annually to G&W’s business.

The Timing Is Right

The timing of Miller’s challenge could not have been more opportune.

“We’re deep in the Age of Amazon,” says G&W’s Blake Jones, vice president of G&W’s Pan Am Southern Division and former vice president of transformation, who was integral to assisting the sales teams on many of these projects. “Our customers are demanding that G&W roads become nimbler, and our transloading capabilities – which enable us to help customers use both rail and truck as part of their logistics solution – are helping us do that. While G&W con-

tinues competing with other service providers, we are also finding mutually beneficial ways to grow with others across the logistics world.

“Transloading allows us to get as close to the end user as possible,” he continues, “while diversifying the commodities that we have traditionally hauled. The beauty of G&W’s transloading capabilities is that our roads can move almost any commodity directly and seamlessly from railcar to truck and vice versa, so the opportunity for us to grow our transloading business is almost limitless and will continue to be a part of our growth strategy for the foreseeable future.”

Investment Varies by Road and Opportunity

Just as all G&W roads are unique, so too is the investment necessary to generate each new transload business.

“We can land a new liquids customer for the San Diego & Imperial Valley Railroad (SDIY) in San Ysidro, California, very quickly because we already have a Choice Terminal there,” says Jerelyn Snyder, G&W assistant vice president of sales and marketing. “Adding dry bulk and liquid customers on the San Joaquin Valley Railroad (SJVR), where there is also an existing Choice Terminal, can be immediate or may require a modest investment to purchase material-handling equipment necessary to safely bring new transload products to the site. Obviously, larger opportunities can be more expensive.

The beauty of G&W’s transloading capabilities is that our roads can move almost any commodity directly and seamlessly from railcar to truck and vice versa, so the opportunity for us to grow our transloading business is almost limitless and will continue to be a part of our growth strategy for the foreseeable future.

—Blake Jones, vice president of G&W’s Pan Am Southern Division and former vice president of transformation

A San Joaquin Valley Railroad (SJVR) train at Reedley, California
Transloading along Utah Railway (UTAH) in Provo, Utah

For example, growing the propane business and diversifying the commodities transloaded on the Arizona & California Railroad (ARZC) at Parker, Arizona, requires significant growth capital to add additional tracks and relocate the depot.”

Just as capital investment varies by transload opportunity, so does the time it takes to bring a transload opportunity to fruition.

“We have some projects that are very large undertakings, like our opportunity on the Dallas, Garland & Northeastern Railroad (DGNO),” says Alex Stall, G&W director of industrial development. “The Dallas/Fort Worth, Texas, metroplex is a growing market where we are actively looking for a site adjacent to our main line to build a new, multi-purpose, multicommodity Choice Terminal that could take years to complete.

“Conversely, we have some potential new transloading business opportunities that require much less time to bring to fruition,” Stall continues. “For example, an opportunity on the Columbus and Greenville Railway (CAGY) in Columbus, Mississippi, where we have land available and a customer looking for a transloading partner, can be up and running in less than 90 days from start to finish.”

Teamwork Is Critical

As with many business growth opportunities, teamwork is required to clear obstacles to successfully land new transloading business.

“Transloading opportunities can get bogged down in the legal and permitting process,” says Jones. “That’s why it is key to get our G&W team members in legal, environmental and industrial development involved in any new transload project as soon as possible.”

Digital Ad Campaign Generates Opportunities

To fuel new transload opportunities, G&W launched a new digital ad campaign in May of this year.

“Prior to this campaign,” according to Jones, “current and future customers would have to work hard to find any information online about G&W and our transloading capa bilities. Now, when you click on our link, it takes you directly to our G&W transload website, which features specific information about each individual railroad’s transloading capabilities.”

How successful has this new digital ad campaign been? It identified two new transload growth opportunities in its first month of operation.

Job Well Done

So now that the end of 2024 is soon upon us, how does Miller view his transload challenge to the G&W team?

“It has been gratifying to see the growth in our transload business over the past year, and I thank everyone who was involved in this effort. However, this work does not end in 2024. We are just beginning to capitalize on our transload opportunities, and I’m looking forward to much more progress in the years ahead,” Miller said. n

Transloading opportunities can get bogged down in the legal and permitting process. That’s why it is key to get our G&W team members in legal, environmental and industrial development involved in any new transload project as soon as possible.

—Blake Jones, vice president of G&W’s Pan Am Southern division and former vice president of transformation

Transloading lumber at Portland & Western Railroad (PNWR) in Rainier, Oregon
Transloading plastic pellets on Toledo, Peoria & Western Railway (TPW) in Wolcott, Indiana

G&W’s Geographic Information System:

A Picture Says a Thousand Words

“There is no alternative to digital transformation. Those that don’t adapt will fail,” says Jeff Bezos, the founding father of Amazon, one of the largest technology-driven companies on the planet.

Count Genesee & Wyoming as one of the companies that has leaned into technology and is expanding its capabilities in the digital age. Look no further than its emphasis on maximizing the use of its geographic information system (GIS) technology for proof.

Seeing Is Believing

In simple terms, a GIS system connects data to a map to help people visualize where things are and learn about the surroundings. GIS generates maps that communicate, perform analysis, share information and help decision makers solve complex problems. Taking advantage of this information leads to better, faster, more actionable management decisions.

Company Vision Expands GIS Capabilities

A GIS system was first used at RailAmerica (RA) in 2010 for real estate purposes. All the RA roads were mapped to include centerlines, property boundaries, mileposts and valuations, and a rudimentary GIS viewer was developed for viewing this digitized data. After G&W’s acquisition of RA in 2012, all roads in G&W’s expanded footprint were digitized for GIS use, and a new, more robust viewer was developed.

As part of G&W’s strategic initiative to accelerate business growth, a focal point has been the further

expansion of the company’s GIS capabilities, and work to achieve that goal is well underway.

“The use of GIS at G&W is still in its infancy,” according to Jeff Watson, vice president of engineering at G&W, “but its value is obvious. The backbone of the technology is real estate mapping, but it goes far beyond that. For example, it brings a high degree of precision to things such as capital budgeting and determining the life expectancy of infrastructure components. It enables us to be more organized in managing many aspects of our business. And it helps us to identify in detail non-railroad assets in communities through which G&W roads traverse.”

Several Mapping Applications

In the past few years, the GIS team has produced several mapping applications for real estate, engineering and commercial operations. These applications use stored information to facilitate a more complete view of G&W’s assets and activities.

“GIS has helped many at G&W to use their data in a more visual way,” says Scott Evans, GIS manager at G&W. “Through targeted training and consistent engagement with new and seasoned GIS users, we have been able to prove that GIS can be a valuable tool for both strategic and tactical applications.”

Limitless Safety Benefits

The greatest value of GIS for G&W may well be in the safety arena, given the company’s unyielding commitment to the welfare of employees and the public.

GIS in Action Saves Time and Money

On October 10, 2018, Hurricane Michael made landfall on the Florida Panhandle as an unprecedented, high-end Category 4 hurricane with maximum sustained wind speeds of 155 miles per hour, causing catastrophic damage.

G&W’s Bay Line Railroad (BAYL) was not spared the hurricane’s wrath with, among other things, its tracks made impassible by thousands of downed trees. To expedite the return of service to its customers, the BAYL team moved the trees from the tracks to other areas of our right of way for removal at some point in the future.

One year later, G&W was in negotiations with insurance companies over the extremely high cost of removing these downed trees from the property. Rather than on-site visits to evaluate the situation along the entirety of the BAYL line, G&W was able to use its geographic information system (GIS) to show the debris immediately following the hurricane, how it looked one year later and the problems the downed trees were creating for BAYL.

Instead of a time-consuming process that would require many people and a great deal of travel to assess the damage, G&W was able to efficiently and effectively present its case to the insurance companies, thanks to its GIS capabilities.

“The use of GIS is almost limitless when it comes to safety,” says Watson. “GIS allows for quick communication with G&W field offices and faster response in emergencies. It can, for example, give us a window into infrastructure maintenance problems; derailment patterns; environmental issues, such as earthquake location and magnitude; and even wildfire occurrences. It is very helpful in monitoring temperature swings during rail replacement, and it can also provide real-time weather data that enables us to adapt train speed to weather conditions when necessary.”

Industrial Development Team Asset

Among the other many beneficiaries of the GIS system are G&W’s industrial development and commercial teams.

“The GIS system is an incredible asset to G&W commercial efforts,” says Kevin Phillips, G&W vice president of industrial development. “It puts all the important railroad information in one place, allowing our internal teams to see information about their railroad and the property surrounding it.

“GIS also identifies owned or leased railroads, customer locations and all our rail sidings, among many other things.

It helps our commercial team visualize all this, along with property that can be developed, in one viewer and share the information with all our internal stakeholders. Most importantly, it shortens our response time when searching for current and future customer opportunities.”

Opportunities Abound

Looking ahead, what does the future hold for G&W and GIS?

“Although the GIS system at G&W is still in its early years, it brings a wide array of opportunities for departments across the company,” says Robert Greenwood, G&W vice president of real estate, who was part of the RA team that experimented with GIS. “There have been many recent advances in GIS in the railroad industry, such as smart train routing, digital track charts and situational awareness. The GIS team plans to explore these and other advances to bring greater efficiency and cost savings to G&W. With the continued support of the company’s technology teams, department leaders and daily GIS users, GIS will continue to have a positive impact on G&W for years to come.” n

GIS Has Widespread Utility Across G&W

Among the many ways that G&W’s geographic information system (GIS) adds value across the company, it facilitates:

● Safety management, including accelerated response to emergencies

● Real-time weather analysis

● Infrastructure management and maintenance planning for rail yards, track, bridges, tunnels, signals and electric power distribution networks

● Real estate management, including land valuation maps and managing leases and tenants

● Environmental analysis, such as visualizing hazardous transport lines and superfund site encroachment

● Design and construction, including environmental compliance and right of way acquisition

2024 One Percent and OneG&W Awards

Introduced in 2024, the One Percent and OneG&W Awards recognize employees twice each year during G&W CEO Michael Miller’s town hall presentations.

The ONE PERCENT AWARD recognizes those who go above and beyond to make G&W 1% SAFER or 1% BETTER every day. The One Percent Award is given to 4 employees twice per year.

The ONEG&W AWARD recognizes those who exemplify what a great teammate looks like (unselfish and team first). This award is also given to 4 employees twice per year.

The winners are announced at the February and August town hall meetings.

Congratulations to our first full slate of winners!

One Percent Award Winners

Katie Kaiser

Tomahawk Railway (Warehouse Manager)

Showed entrepreneurial spirit by cold-calling pulp producers.

Kaylyn Zigarovich

Corporate (ERP Team)

Brought customer survey administration completely internal in 2023.

Joseph May

San Joaquin Valley Railroad (Mechanical)

Epitome of 1% Safer – HFI and injury-free 27 years and identifies hazards.

Kipp Gray

Corporate (IT)

Singlehandedly ensured BERX start-up went smoothly from IT perspective.

Chad Hartley

Huron and Eastern Railway (Director of Mechanical)

Evaluated welding equipment agreements and made changes that could save several railroads upwards of $40,000 total without sacrificing quality of work.

Kody McCoy

Indiana & Ohio Railway (Signal Maintainer)

Took a very old approach signal home on his personal time and not only restored but upgraded it with LED components for better visibility.

Nicolas Mojarro

San Joaquin Valley Railroad (Conductor/Engineer)

Has been instrumental in mentoring younger employees on safety at a railroad where 50% of staff has less than three years on the job.

Jason Peery

Corporate (Commercial)

Proactively built reports using data from multiple sources that help the Revenue team better identify opportunities and understand discrepancies.

OneG&W Award Winners

Andrew Ely (3-time nominee)

Corporate (Finance & Accounting)

Consistently helps others no matter how busy he is or what’s on his plate.

Cord Quakenbush & Travis Pinkston

Indiana Southern Railroad

Had courage and compassion to do the right thing with lost child on right of way.

Brittany Lewis (2-time nominee)

Corporate (Real Estate)

Took on workload of two unexpected vacancies in her department.

Kathleen Mackenzie

Corporate (Accounts Payable)

Takes time to recognize those helping ERP project while grinding away at invoices.

Peter Babik

Meridian & Bigbee Railroad (Roadmaster)

Coordinating capital projects with CPKC and CSX to ensure smooth transition of MNBR transaction while keeping the entire MNBR operating team updated on progress.

Chris Byrd (2-time nominee)

Corporate (Finance & Accounting/ERP)

Building Excel queries and other reports to address process and reporting pain points with the new ERP system. Encouraged teammates to prioritize mental health by introducing a “Puzzle of the Month” in the Rochester office.

Kelsey Rozman

Corporate (Regional Finance)

No matter how busy or what time of day, she always finds time to answer her team’s questions, which builds a level of trust and comfort and energizes the team to get through their workload.

Jeremy Stevens

St. Lawrence & Atlantic Railroad (Mechanical Manager)

Always comes up with ways to be safer (implemented broom holders for switch stands, fabricated a spray nozzle to a tank for safer spot spraying of weedkiller).

Congratulations to Our Safety Month Contest Winners!

125th Anniversary Topic:

How can G&W railroads stay safe for the next 125 years? Tell us through artwork, a 2-minute video, or a one-page essay.

Scout Evans

Ages 3-7

Video: “How can G&W railroaders stay safe?”

Grandparent is Julie Eddy, Vice President, Upper Midwest Division

Mackenzie Austin

Ages 8-12

Video: “Train Safety” Grandparent is James Royal, Mechanical Manager, The Bay Line Railroad

Madeline Folland

Ages 13-17

Video: “125 years, a Tradition of Safety and Service.”

Parent is Matt Folland, Assistant General Manager, Savannah Port Terminal Railroad

QuickFacts

Land area in square miles (2020): 53,634

Population per square mile (2023): 414.8

Total population (2023): 22,610,726

Households (2022): 8,353,441

High school graduate or higher (2022): 89.3%

Median household income (2022): $67,917

Mean travel time to work (in minutes): 27.9

Number of veterans (2022): 1,369,719

State bird: Northern mockingbird

State flower: Orange blossom

State tree: Sabal palm

State nickname: The Sunshine State

State beverage: Orange juice

State pie: Key lime pie

State capital: Tallahassee

The Bay Line Railroad (BAYL)

Jacksonville

While G&W’s roots began in Rochester, New York, and its headquarters have been in Darien, Connecticut, the city of Jacksonville, Florida, has played a critical role as the company’s operations headquarters.

Florida has been key to G&W’s growth since 1996, when the company acquired Jacksonville-based Rail Link, Inc., our industrial switching subsidiary, and started building a team there.

Since 2009, Jacksonville has been home to G&W’s safety, engineering, commercial support, service design and customer service teams.

It is the home base for the American Region railroads and houses G&W’s training center (left), which hosts more than 20 classes per year for transportation employees and frontline managers as well as courses in train accident prevention/ investigations and code of operating rules.

Home to the oldest continuously operating seaport in the U.S., Jacksonville has dubbed itself as “America’s Logistics Center,” making it the perfect fit for G&W’s operations headquarters. The city’s location in Northeast Florida, along with its access to rail, air, maritime and highway transportation, make it a global destination for business – reaching 98 million consumers within a day’s drive. G&W’s Class I partner CSX is also headquartered in Jacksonville.

A unique feature of our Jacksonville operations headquarters is the small railroad history museum within the training center vestibule. With artifacts that not only capture G&W’s history over the last 125 years but also the history of railroading in the U.S., you can find items such as railroad lanterns, signals, documents, photos and even dinnerware within the display cases. The most prominent piece of railroad history in the museum can’t be missed – the 1948 Buick inspection car (above right) that G&W received as part of the Columbus and Greenville Railway (CAGY) acquisition in 2008.

With its roots firmly planted in our 125-year history, the Jacksonville operations headquarters and its people are vital to the growth and future success of G&W.

FUN FACTS ABOUT JACKSONVILLE

• The city is more than 840 square miles, making it the largest city by landmass in the contiguous U.S.

• Jacksonville averages 270 days of sunshine per year.

• It is Florida's youngest city by age, with the average resident being 36 years old.

• With 1,100 miles of shoreline and 22 miles of beaches, it has more coastline than any other city in Florida.

G&W Unveils New Locomotive Paint Scheme

Honoring Military Veterans and Service Members

These special locomotives are slowly making their debut across G&W’s footprint in both the National and American regions.

A Providence and Worcester Railroad (PW) locomotive boasts a new paint scheme honoring military veterans and service members.
A Bay Line Railroad (BAYL) locomotive in Panama City, Florida.
PHOTO

Around G&W

PAS DIVISION

BERKSHIRE & EASTERN RAILROAD TURNS ONE

On October 1, G&W’s Berkshire & Eastern Railroad (BERX), which operates the Pan Am Southern (PAS) rail line jointly owned by CSX and Norfolk Southern, celebrated one year since start-up. The line runs 414 miles between Rotterdam, New York, and Ayer, Massachusetts, as well as 25 miles in Connecticut, connecting to 12 other railroads (including three Class Is and four other G&W short lines) along the way. Commodities hauled include farm and food products, autos, chemicals and plastics, concrete and waste.

“I’d like to thank the more than 200 employees of BERX for their tireless work over the past year to establish our railroad as a safe and efficient way for customers in New England to receive freight transportation,” says Blake Jones, vice president of G&W’s PAS division. “Our ability to improve cycle and dwell times over the past year in the division has directly benefitted area customers and instilled confidence in our ability to effectively meet their needs. We look forward to making more improvements in the year ahead.”

Anniversary events were held across the line the first week of October to thank employees.

BERX employees celebrate one year of operations with an early breakfast at a rail yard in Mechanicville, New York.

UPPER MIDWEST DIVISION

HESR AND MMRR’S CUSTOMER APPRECIATION GOLF OUTING A SUCCESS

G&W’s Upper Midwest Division held its annual Customer Appreciation Golf Outing on August 28 at The Fortress Golf Course in Frankenmuth, Michigan. The event, a longstanding tradition on Huron and Eastern Railway (HESR) and MidMichigan Railroad (MMRR), welcomed 72 golfers, including customers, vendors, railroad partners and managers from G&W railroads.

“We do it to say thank you to our customers for trusting us with their business,” says Sarah Pawlanta, assistant vice president of sales and marketing for Upper Midwest Division railroads.

“It’s a great way for our team to spend time with customers outside of the day-to-day work and build upon those relationships.”

Teams consisted of one G&W manager paired with a vendor or partner, allowing for valuable networking throughout the event. Following golf, there was a meal and prize ceremony. Prizes included gift certificates, a YETI cooler, a lawn chair, a Bluetooth speaker, as well as awards for best score and various hole achievements.

A highlight of the outing was a prize hole where golfers could spin a wheel to win items such as

towels, golf balls, golf umbrellas, Amazon gift cards, embossed Stanley cups and Detroit Tigers tickets. Team photos also were taken.

Pawlanta notes that the event remains a customer favorite.

“Everyone loves it,” she says. “The hallmark of a good event is attendance, and our customers are excited every year to get their invitations.”

She credits the success of the day to Sales and Marketing Manager Mark Nagy, who led the planning with support from HESR and MMRR General Manager Justin Brandt.

golf
From left, G&W Sales & Marketing Manager Mark Nagy and Assistant Vice President of Sales & Marketing Sarah Pawlanta hand out hats and snacks at the registration table.
From left are Dave Peschong from POET, HESR Assistant General Manager John Chesny and Issac Crawford from POET.
From left are Tom Lohr from Quality Roasting, Gretchen Smith from Star of the West Milling Co., G&W Sales & Marketing Manager Mark Nagy and Danny MacDonald from Trinseo.

GREAT LAKES DIVISION/UPPER MIDWEST DIVISION

CLEARANCE PROJECT TO BOOST DIMENSIONAL SHIPMENT REVENUE

Great Lakes Division and Upper Midwest Division railroads are piloting a new project that seeks to boost revenue through improved clearances for high-and-wide dimensional shipments.

The project, led by Todd Dragland, vice president of engineering for G&W’s National Region railroads, focuses on enhancing the clearance measurement system for key corridors, with plans to eventually expand across the network.

The project will establish a standardized clearance measurement process and provide crucial clearance data for revenue opportunities, according to Dragland.

“The goal is to enable us to move more dimensional loads by ensuring our network can safely accommodate high-and-wide shipments,” he says.

G&W’s National Region has acquired a Cordel Rugged LiDAR device and entered a contract with D/Gauge Ltd. and Cordel Group PLC to deploy network scanning and clearance software. This system will scan, store and calculate clearance information, allowing G&W to easily assess the feasibility of moving large shipments across its railroads.

“The Cordel Rugged LiDAR device is easy to mount, configures itself, and allows us to gather and upload data from as many miles of track as we need,” says Dragland. “The best part is we don’t have to pay for processing the data until we need it, making it cost-effective while allowing us to scan our entire system.”

The project involves four phases, beginning with identifying key corridors in the National Region that present current revenue opportunities. Phase II focuses on finding a solution for clearance measurement, while Phase III implements the clearance measurements on identified corridors. Phase IV will expand the clearance measurements across the entire region and footprint.

From left are Cordel

Vice President US/LATAM Tim Francis, TZPR Roadmaster Dylian Damm, G&W Director of Bridges and Structures Jeff Herbeck, Cordel Data Engineer Negin Shafie Zadeh, IMRR Roadmaster Ryan Lemme and G&W Director of Engineering Matt Weller.

Above: The Cordel Rugged LiDAR device is mounted to the rear of a hi-rail truck.

CUSTOMER APPRECIATION EVENT SCORES BIG AT INDIANA FEVER GAME

G&W’s Upper Midwest and Ohio Valley divisions teamed up to host a customer appreciation event on September 11 at an Indiana Fever basketball game.

This marked the first time G&W brought together customers and railroad partners from several of the company’s railroads, including Indiana Southern Railroad (ISRR); Toledo, Peoria & Western Railway (TPW); Central Railroad of Indianapolis (CERA); Chicago, Ft. Wayne & Eastern Railroad (CFE); Indiana & Ohio Railway (IORY); and The Central Railroad of Indiana (CIND).

Despite starting with 50 tickets, there was strong interest from customers, which led to upgrading seating to the terrace suite at Gainbridge Fieldhouse, where 70 attendees enjoyed the game.

“We have a lot of customers in Indiana, and with Caitlin Clark being such a popular player, we wanted to capitalize on that energy,” says Sarah Pawlanta, assistant vice president of sales and marketing for G&W’s Upper Midwest Division railroads.

With a sold-out crowd and high energy in the arena, attendees had a fantastic time networking while enjoying the excitement of the game.

Pawlanta credits the event’s success to collaborative effort from G&W’s sales, operations and customer service teams among both divisions.

“We thank everyone who helped make this event a success,” she says.

Based on the enthusiastic feedback, Pawlanta adds the event marks a successful first step for similar customer appreciation events in the future.

From left are Darren Smith from Alto Ingredients, Jeff Kaeb from Grainland Farmers, Scott Reader from Alto Ingredients and Upper Midwest Division Director of Sales & Marketing Jon Algeo.
G&W’s Ohio Valley and Upper Midwest divisions hosted a customer appreciation event at an Indiana Fever basketball game.
From left are Ohio Valley Division Manager of Sales & Marketing Cora Small, Ohio Valley Division Director of Sales & Marketing Kelly Joseph and Norfolk Southern Field Sales Manager Chris Wagel.

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TOP SERVICE LEADS TO BUSINESS EXPANSION IN NORTHEAST DIVISION

Providing excellent service and maintaining good relationships with existing customers are likely to pay off even further down the road. A pair of G&W’s Northeast Division railroads can testify to that.

For more than three decades, Quebec-based lumber business RCP Transit has been served by St. Lawrence & Atlantic Railroad (SLR) in Island Pond, Vermont. When RCP decided to expand its operations in New England, it also decided to lease a 7-acre facility in Monson, Massachusetts. Satisfied with SLR’s service throughout the years, RCP owner Guillaume Pelletier approached New England Central Railroad (NECR), which operates in Monson. In September, NECR’s local crew out of Palmer, Massachusetts, began receiving inbound loads of lumber from Canadian National Railway for distribution throughout New England and into New York and New Jersey.

NECR General Manager Bob Wilcox says that the new business is appreciated and likely will expand. He credits Assistant Vice President of Sales and Marketing Ed Foley for making it happen.

“A shoutout to the team members on SLR who for 30 years have delivered world-class service to RCP,” says Foley. “This is really why these opportunities happen.”

Mechanical Director Nick Longshore faced quite the challenge this year, but his strong work ethic ensured that Indiana & Ohio Railway (IORY) and The Central Railroad of Indiana (CIND) were able to place 26 new locomotives in service this summer.

When the railroads received the new engines, they needed to be refurbished, painted and in service within a certain time frame. As the units arrived later than expected, IORY was a bit behind, but Longshore and his team worked diligently for months to get them ready.

“His vast knowledge and experience of both railroads make Nick a tremendous asset to the team and respected among all departments,” says Brian Stussie, vice president of G&W’s Ohio Valley Division railroads. “These roads and our organization would not be able to accomplish the goals and provide premier service to our customers without his leadership and dedication.”

With the new units, IORY and CIND can move more freight with fewer engines, doing so more efficiently with less fuel and a muchimproved carbon footprint.

Longshore began his railroad career 24 years ago at IORY. He started as a conductor, then moved to a clerical position, train dispatcher, director of train operations, mechanical supervisor and his current role as director of mechanical. Longshore leads the mechanical department for CIND and IORY, which is staffed with 10 locomotive mechanics, four railcar repairmen and one mechanical manager.

OHIO
SLR operation in Island Pond, Vermont
Above: The training in Blainville, Quebec, allowed firefighters to familiarize themselves with components of tank cars.
Right: Rail gang CPR training

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CANADA DIVISION

G&W CANADA HOSTS TRAININGS FOR AND BY FIREFIGHTERS

In early June, G&W Canada and the Railway Association of Canada jointly conducted a tank car training session at the fire department in Blainville, Quebec. A total of 34 firefighters attended, and Canadian National’s training trailer was on site to demonstrate various valves and components of both general service and pressurized tank cars. Another four sessions are scheduled this fall to ensure every firefighter at this station receives training.

Also in June, St. Lawrence & Atlantic Railroad (Quebec) (SLQ) conducted a fire extinguisher training session with 18 participants from various departments of SLQ and Quebec Gatineau Railway. The session was led by Steve St. Laurent, Richmond fire chief. Participants had the opportunity to extinguish a fire using different types of fire extinguishers: conventional (powder), carbon dioxide and water. They also reviewed fire-prevention equipment used by local employees

Left: G&W Canada’s Valerie Pascal (left) and Philippe Rambour at the fire training in Richmond.

Below: Fire extinguisher training session.

SON JOINS CARNES AS RAILROADER

Trainmaster Dusty Carnes is at the heart of Heart of Georgia Railroad (HOG).

The railroad was acquired by G&W in 2017, but his industry career began in 1992, shortly after graduating high school. He started by working part-time, cutting grass at railroad facilities and taking crews back and forth. That summer job soon became a full-time career.

“I always believed in hard work,” says Carnes.

He developed that work ethic on a cattle farm at age 12 in his native Sumter County, Georgia. Carnes enjoyed working outside in the elements and observing the passing trains, he recalls.

“I thought they were cool,” he says.

Carnes instilled the same work ethic in his son, Elijah, that his father instilled in him. Elijah has chosen to follow in his father’s footsteps and now works for the Georgia Southwestern Railroad (GSWR) as a conductor.

“He wanted a career and not just a job,” says Carnes about why his son joined the railroad. “He’s doing well and learning quickly. I’m proud of him.”

Carnes has impressed upon Elijah that G&W is a multi-national company that offers vast opportunities.

They talk about railroading almost daily, especially the topic of safety.

“I’ve told him that it’s No. 1, and that you are your brother’s keeper,” he says.

From left are Trainmaster Dusty Carnes and his son, GSWR Conductor Elijah Carnes.

GULF DIVISION

BAYL

ON SOLID GROUND WITH NEW CUSTOMER

After a paper mill in Panama City, Florida, shut down with little notice, The Bay Line Railroad (BAYL) lost carloads.

That’s where G&W’s Vice President of Industrial Development Kevin Phillips and his teammates, including Gulf Division Vice President Rob Anderson and Assistant Vice President of Sales and Marketing Kirk Quinlivan, stepped in. By partnering with local economic development and government leaders, they promoted the site of the former paper mill, which is situated on a 300-acre industrial parcel. The land proved ideal for new customer SRM Concrete, which closed on the property earlier this year. The company is the largest ready-mix concrete supplier in the U.S. and operates 552 concrete plants in 19 states. A key ingredient of the company’s product is cement, which BAYL will transport. Unit-train volumes are expected.

The business opportunity for BAYL is three-fold: BAYL will haul scrap as the customer demolishes the old paper mill. After demolition, construction will begin on a facility capable of receiving bulk cement by sea from Turkey, which BAYL will transport to the facility. And in the meantime, the railroad will haul super sacks of cement for the customer as early as the end of this year. These sacks will be stored in an existing warehouse on the property until the bulk-handling facility is built, at which time the warehouse will likely be repurposed to store other raw material, such as fly ash.

Above: Trainmaster Dusty Carnes and his family.
Demolition work is in process at the site for SRM Concrete’s business in Panama City, Florida.

Around G&W

SOUTHWEST DIVISION

KWT RAILWAY BOASTS IMPRESSIVE SAFETY ACHIEVEMENT

KWT Railway (KWT) employees are nearing 10,000 days reportable injury-free.

The team, which consists of employees from multiple crafts who have diverse daily duties, entered August at 9,800 consecutive days without a reportable injury.

“Everyone takes their crafts seriously, and they are willing to grow in each craft and step up when needed,” says Operations Manager Richard Bivens. “Safety always has been the No. 1 value on KWT in all crafts and always will be.”

He commends managers for caring about employees’ well-being and for demonstrating it by ensuring they have what they need to stay safe and succeed.

The most important safety tool for the tightknit workforce is the right attitude, says Bivens.

“Our team at KWT continues to demonstrate safety on a daily basis by looking out for one

PACIFIC DIVISION

ARZC FACILITATES PROJECT TO SUPPORT CUSTOMER’S EXPANSION

Arizona & California Railroad (ARZC) is on the move.

A customer is expanding operations, prompting construction that will see present headquarters in Parker, Arizona, demolished.

The team will move to a nearby facility to better serve customers, including LPG Rail Services. The project will establish a connection between existing tracks and open train access. It will involve installing new track and reinstalling track in an area where it had been removed no less than 50 years ago. When the dust settles, LPG Rail Services, which primarily transloads propane, will double its footprint, helping it grow and diversify its commodity mix.

General Manager Kevin Jones believes that the development has the potential to increase carloads and is a win for railroading in Parker.

“It’s good to see expansion in Parker Yard,” he says.

another, being a brother’s keeper and working with a safety-focused mindset,” he says. “Our people take pride in their work, and everyone is willing and dedicated to put forth a safe, efficient effort to help KWT grow.”

The team had cookouts in June to celebrate the safety success.

“Staying focused every day and taking it one day at a time while maintaining good, open, honest relationships are keys to maintaining safe performance,” says Bivens.

Pacific Division Assistant Vice President of Sales and Marketing Jerelyn Snyder notes that Parker is a desirable location because it’s on the border of California and Arizona. Commodities transported via rail into Parker can be trucked out and serve major hubs, including Las Vegas, Phoenix and southern California.

The project is slated to start in early October and conclude by late October. Work primarily will be performed by contractors.

Jones commends managers for their support, including Roadmaster Lucas Marler, Trainmasters Ricky Cathers and Kristy Siscoe, and Snyder.

“It was a team effort, including the railroad and division teams,” Jones says.

Top: An excavator gets in position at the worksite. Bottom: Crews break ground on the expansion project.

Top: Conductor John Finau and his family members express their appreciation to UTAH coworkers. Right: Conductor John Finau is presented a car as a gift from coworkers.

SOUTHWEST DIVISION

BROTHERS CAP OFF A 36-YEAR,

INJURY-FREE CAREER AT LDRR

This September, brothers Lenny and Edward (Rodney) Mouton retired from Louisiana & Delta Railroad (LDRR) after 36 years – and for almost the entirety of the time that G&W has owned LDRR. Both joined the railroad on August 15, 1988, with Lenny establishing seniority over his brother by one hour. Lenny worked in the mechanical/railcar department for the duration of his career, while Rodney found his niche in engineering and retired as roadmaster. Both completed their careers injury-free.

To celebrate the brothers’ tremendous career and tenure with the company, LDRR hosted a retirement luncheon. In addition to many of their LDRR teammates, attendees included Southwest Division Vice President Bill Keough; Jeff Watson, Juan Covarrubias, Scott Sandoval and Keith Richard from G&W’s engineering and signals departments; and several former LDRR employees and retirees.

“My brother and I worked together on railcars until he switched over to the MOW department,” says Lenny. “Our railroad experience was one of family and friendship, working with a great group of people while always being safe and efficient.”

“It was well worth it working with the railroad for 36 years,” Rodney adds.

CENTRAL DIVISION

RAILROADERS ARE FAMILY

While Conductor John Finau hasn’t worked for Utah Railway (UTAH) a long time, he’s already a member of that railroad’s family, he says.

This became especially evident when his wife and six children were gifted a car by fellow conductors Seth Pritchett and Scotty Raab, who have been planning the gift since before Christmas.

The Finau family had only one car. With midnight or early morning start times, Finau’s wife would have to drive him to and from work, children in tow, so she would have the car for the family during the day.

“When John clocks in and out, you can imagine the wakeup call for the kids that he and his wife do before piling them in the car,” says Trainmaster Alvin Wayman. “It’s good to see a little love on the railroad.”

In June, Pritchett and Raab presented Finau with the keys, title and emissions certificate for a Dodge Stratus. The Finau family members responded with tears of happiness and gratitude.

Pritchett and Raab had worked several hours making repairs to the car and inspecting it before the big day.

“It’s nice to see employees taking care of each other like this and being their brother’s keeper in and outside of work,” says General Manager Jake Harrison.

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CENTRAL DIVISION

KYLE SAYS HAPPY TRAILS TO RENOWNED TEAMMATE

Kyle Railroad (KYLE) employees wished a happy retirement to their coworker, Locomotive Engineer Steve Stutterheim, in August.

He completed his career on August 1, working all 40 years on KYLE in Phillipsburg, Kansas.

Stutterheim, who started his railroad career in maintenance of way as a track laborer and worked extensively with engineering throughout his tenure, was renowned for his skills with heavy machinery; teammates joked that he could pick up a toothpick with a backhoe. Before joining transportation, he worked in the mechanical craft.

“Steve always was a team player and was patient with me when I started 28 years ago,” says Locomotive Engineer Scott Merklein. “I remember this when training new hires to be conductors today.”

Stutterheim also was recognized by colleagues for his attention to detail.

While celebrating his retirement with teammates, he noted that he looked forward to his daughter Stephanie’s wedding in November.

RAIL SERVICES DIVISION

RAIL LINK SECURES YET ANOTHER CONTRACT

Top

G&W’s Rail Link, Inc., secured yet another new switching operation – this time for CSX’s large intermodal yard near Atlanta. The Rail Link team demonstrated an impressive 60-day turnaround from bid to project start-up on July 1.

This is on the heels of Rail Link securing five contracts in 90 days in 2023.

“Customers continue to see the value in Rail Link’s unique, customizable service offerings,” says Jason Bradt, vice president of G&W’s Rail Services Division. “We look forward to delivering the safe and efficient switching service that has become synonymous with Rail Link.”

Top left: Locomotive Engineer Steve Stutterheim is presented with a gift.
right and above: Locomotive Engineer Steve Stutterheim is joined by family, teammates and friends at his retirement brunch.

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An Indiana & Ohio Railway (IORY) train leaving Lowes Flatbed Distribution Center in Washington Court House, Ohio.

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