NCTA Issue 2, 2014

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PRSTD STD US POSTAGE PAID DENVER, CO PERMIT #353

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Contents

ISSUE 2 | 2014

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PUBLISHED BY: National Coal Transportation Association 4 W. Meadow Lark Lane Suite 100 Littleton, CO 80127-5718 Phone: 303-979-2798 Fax: 303-973-1848 www.nationalcoaltransportation.org Editor: Pat Scherzinger Phone: 303-993-7172 scherzinger@ nationalcoaltransportation.org Production By: Suckerpunch Creative Inc. info@suckerpunch.ca www.suckerpunch.ca ©2014 NCTA. All rights reserved.

The contents of this publication may not be reproduced in whole or part, without the prior written consent of NCTA. The opinions expressed by the authors of the articles appearing in the Coal Transporter are those of the respective authors and do not necessarily reflect the opinion of the NCTA, its Board of Directors or its member companies.

Publication of the articles does not constitute an endorsement of the views that may be expressed.

FEATURES

DEPARTMENTS

6

Meet Your Board: Abby Herl

2

8

Member Profile: Associated Electric

Message from the NCTA President – Jerry Wess

4

Message from the NCTA Executive Director – Tom Canter

16

NCTA Welcomes New Members

26

NCTA Committee Updates

50

Calendar of Events

62

Members Sound Off

75

View from the Caboose

18

Record Ice in Lake Superior

30

40 Years of Coal Car Technology

36

Rail Car Management: Past, Present & Future

40

Terry May: Now both Man and Machine

53

Changing the ‘Fate’ of 3.5 Billion People

5 6

Logistics - Cost or Profit Contributor?

76

Membership List

66

Reflections: Steve Behn

76

Index to Advertisers

32

Operations & Maintenance Conference Wrap-Up

CONFERENCES 14

Fortieth Annual Business Meeting & Conference

Westin Downtown, Denver, Colorado

24

Spring General Conference Recap

Park City, Utah, June 9-11, 2014

Hilton Head Island, South Carolina, April 27-30, 2014

COAL TRANSPORTER | 1

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President’s Report

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President’s Report / Jerry Wess

A Message from NCTA President, Jerry Wess.

Know Your Logistics Business-

Coal Matters

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merica’s coal-fired generation plants are a vital part of this country’s energy portfolio. Never lose sight of these important facts: 1) the U.S. has the largest recoverable reserves of coal in the world, 2) at current production rates, this represents +200 years of coal, 3) in the year 2013 electric power generation from coal consumed 858 million tons of coal (93% of all coal consumed in the U.S.), 4) thirty-nine (39) percent of U.S. electricity generation came from coal in 2013, 5) America’s railroads transport over two thirds (2/3rds), either completely or in part, of all the coal consumed by utilities- according to an Energy Information Administration (EIA) “Energy in Brief” report issued on June 2, 2014, 6) the National Coal Transportation Association (NCTA) has been serving the interests of all coal- related constituents for forty (40) years this Fall, 7) in the next forty (40) years, unit train movements via rail will continue to be the dominant mode to move coal from mines to coal- fired generation stations, and 8) there will continue to be a need for an Association like NCTA to educate the good people involved with the coal logistics chain, and advocate for our interests related to the utilization and delivery of coal.

Make no mistake about it! The “War on Coal” continues among the politicians in Washington, and the liberal media is a megaphone in this messaging effort. The Environmental Protection Agency (EPA) is leading efforts (Executive Order) by

2 | COAL TRANSPORTER

Washington to change the economics of burning coal. New plant performance standards mandate that emissions for new coal fired power plants be limited to 1,100 pounds of CO2 per mega-watt hour (mwh). This will require expensive carbon capture and sequestration (CCS) technologies. And that is not all--- existing power plants will need to install emission technologies that reduce CO2 emissions at these plants 30% from 2005 levels by the year 2030. To meet these standards presents significant financial and economic hurdles to the U.S. electric generators.

In addition there are other challenges that have aligned an almost “Perfect Storm” ahead of the fossil generation industry. Consider these major challenges: 1.

2.

3.

4.

Flat electricity demand Increased natural gas supplies Competitively priced natural gas Costly environmental policies that make it more costly to both mine and burn coal 5. Rising transmission costs 6. Aging electric transmission system constraints Despite these challenges I was encouraged at the Summer Western L&P meeting held in St. Louis at Ameren’s suburban offices. This meeting was attended by over fifty (50) representatives of NCTA member companies. And all were not looking in the rear view mirror, but rather out in the future. Presentations by both the Burlington Northern Santa Fe

(BNSF), and the Union Pacific (UP) were very positive related to capital spending (CAPEX).The discussions about CAPEX were preceded by encouraging news about PRB tonnages for the first half of 2014.

For the first six months of 2014 a combined tonnage of 154.3 million (up 1.7%) over 2013 was shipped from the PRB. And the Railroads reported across- theboard increases in all traffic categories. As a result both roads are investing billions of dollars to add more locomotives, people, and rail cars to their asset bases. This effort is a reaction to the need to improve transit times, and move more traffic in a timely manner.

So, I leave it up to you! Are you coming to the Fall NCTA session at the Westin in Denver? I hope you will be at the forty (40) year anniversary meeting to celebrate all the successes; and plan how we will operate in the new environment, as a 39% supplier of electricity to the industrial and residential consumers of electricity in our country.

Yes, this is down from 50% in 2007, but the World needs more coal.

Let’s discuss how to find new outlets for U.S. coal in overseas markets such as India, China, and other destinations.

Exports require a ton of logistics expertise, and you are the backbone of that expertise in this country.

See you in Denver!!! s Best always, Jerry

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Executive Director’s Message / Tom Canter

NCTA Celebrates Forty Years - Looking Back and Looking Forward

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he years go by quickly when our industry is moving billions of tons of coal. Today, NCTA is proudly engaged in both national and international coal transportation challenges and education across all modes of carriage and conveyance. A short review of our history and our aspirations is appropriate.

In 1973, the Powder River Basin was newly-opened with coal contracted to be hauled for what was then considered to be unimaginable distances. Furthermore, there were plans to use unit trains (who knew what they were and what they required), with electric utilities owning and maintaining rail cars. This novel concept required education and training for all parts of the logistics infrastructure.

Visionary leaders such as Norm Barthlow of Detroit Edison and Pete Garson of AMAX Coal associated with Bob Kessler to form the Western Coal Transportation Association. Bob became the long-serving Executive Director through 1994 and led WCTA during a challenging period of growth followed by consolidation in all segments of the coal transportation infrastructure.

The early years enjoyed exciting developments such as export terminals, rotary dumpers, aluminum cars, batch weigh systems, loop tracks, distributed power, the ICC forcing joint ownership of the rail line in the PRB, export coal to Asia from Utah and Colorado, the introduction of two man crews, End of Train devices, and much more. The oil companies rushed in with welcome capital 4 | COAL TRANSPORTER

and then exited in the 1990’s. All of this change and innovation, and it was illegal by national policy to burn natural gas under boilers to generate electricity! Yes, “what the government giveth, the government can taketh away”.

It doesn’t require deep philosophical thought to observe that change has been our constant companion since the beginning of NCTA. Rail cars were purchased by shippers not primarily to receive a reduction in the transportation tariff, but because the rail carriers did not have the capital for investment and expansion.

Utilities became car owners and lessees out of necessity, and there was much to learn.

NCTA had a mandate to educate and provide networking opportunities. The Staggers Act of 1980 required shippers to negotiate transportation agreements for long term and long haul coal movements.

Coal exporters learned arcane terminology like lay days, vessel demurrage, loading rates, weather working days, and All of this while railroads and barge companies were merging and abandoning trackage at a mind-boggling pace.

During these years (the 1990’s), the WCTA introduced standing working committees to address shipper issues, and incorporated the Operations and Maintenance Committee working group of utilities into WCTA. Mergers were in vogue and electric utilities were in the game in response to deregulation and competition.

Yours truly came on the scene in 1995 as Executive Director following several years on the Board. Industry mergers were occurring at a rapid rate throughout North

America and coal exports decreased rapidly. In 1999, the WCTA Board opened membership to Associate Members who were not coal producers or coal consumers in recognition of their key role in coal transportation. In 2001, WCTA was offered the opportunity to merge with the Eastern Coal Transportation Conference and became the National Coal Transportation Association. The NCTA was now representing coal producers, coal shippers, and equipment suppliers on a continental basis covering all coal basins.

So much for looking back, let’s look forward. We are now and have been engaged in promoting the value of coal to our economy and society. It is axiomatic that if we cannot produce and consume coal, we will not be transporting coal.

NCTA will continue to support coalitions and initiatives that promote a balanced energy policy that recognizes the favorable economics, availability, and reliability of coal as a sustainable, domestic source of energy . NCTA will continue to engage with the Surface Transportation Board and other regulatory bodies and industry groups while providing quality education and working group opportunities for our members. For the foreseeable future, the laws of physics and economics will prevail against irrational energy policies, and the coal industry will continue to add tens of billions of dollars to the economy each year. I have no doubt that the members and friends of NCTA will continue to move coal.

Have a great and safe day bringing energy and wealth to North America. s

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Know Your Board / Abby Herl

Know Your Board:

Abby Herl

A

Abby Herl

Manager of Fuels, Emissions & RECs Kansas City Power & Light

6 | COAL TRANSPORTER

bby Herl is Manager of Fuels, Emissions & RECs for Kansas City Power & Light. In this position, Abby and her team of seven manage fuel supply and combustion products for the electric generating fleet as well as emission allowances and renewable energy credits.

From bidding to invoicing, they handle it all. Products and services the department is responsible for include: coal, coal transportation (by rail and truck), railcar fleet, railcar maintenance, natural gas supply and transportation, fuel oil, propane, tire-derived fuel, lime, limestone, powderactivated carbon, ammonia, and urea. Invoicing, data management, and inventory records originate within the department too. No day is the same and one never knows what will happen. Working within Fuels requires being adaptive and to be ready with an alternative plan. All this activity is part of what makes the department interesting and exciting.

The youngest of five children, Abby grew up with four older brothers in Columbia, Missouri. While her parents, Don and Sally Fancher, were excited to finally have a girl, they found as Abby got older that dolls, dress-up, and playing house were not going to be of much interest to her. Hotwheels, Legos (to build cities with to play cars), sports, being outside, puzzle books, and oddly enough coloring (within the lines of course) were her favorite activities. The girlie stuff was limited to when she was at her best friend’s house. Ironically, her best friend had four older sisters.

Abby loved school, up until college, she notes. The only subject matter she never really enjoyed was History. Abby wasn’t going to let being a girl limit what she could do. Junior High’s Exploratory Block opened her eyes to some new subjects – drafting, leather working,

woodworking, and machining. Then while still in Junior High, she got to tour the General Motors plant in Kansas City where brother #4 was interning. She just loved it. She continued with drafting through high school, but really enjoyed all her classes (okay – except History).

Abby was totally in her element in High School and if she could do it over again, wouldn’t change a thing. When she entered college, Abby decided to major in engineering and to this day she still doesn’t know why. Was it because three older brothers graduated from Mizzou with engineering degrees, was it the challenge of being a female in a maledominated field, or was the attraction that engineering was the combination of science, math, drafting, and understanding how things worked? Likely, all three contributed to her decision. Following in her brothers’ footsteps, Abby graduated with a BS in mechanical engineering from the University of Missouri – Columbia.

Out of college, Abby was hired by Missouri Public Service Company (aka UtiliCorp United, Aquila) as a Staff Engineer at Sibley Generating Station. Over the next six years, she worked her way up to being Maintenance Superintendent.

Abby recalls, “Working at Sibley was the best experience for me. Yes, the job was hard work and had its ups and downs, but I learned and experienced so much and managed a lot of work and crews in those years.” Working at Sibley was followed by a move to Great Bend, Kansas to be Plant Manager of two gas-fired stations; one a gas-fired steam boiler and the second a combustion turbine. While in Great Bend, Abby started working on her Master’s in Business Administration at Colorado State University, which she completed in 2005. Aquila kicked off a Six Sigma program in 2004, and Abby

“Serving on the NCTA Board has been an eye-opening experience. There is a lot that needs to go on beyond the conferences and Tom, Pat, and Melinda have a lot to do the entire year. I have even more appreciation for the work everyone has to do to support this organization.” was called back to lead generation projects. After 14 months and earning her Black Belt, Abby was asked to manage Fuels. She is approaching her 10 year anniversary in Fuels. “I have been fortunate enough to work in what I consider to be the two most interesting jobs; power plants and fuels. I have found that having experience in both makes for a good combination in the utility business.”

Abby developed a love for trains working night shifts at Sibley on outages. The 9th floor for Sibley 3 was where personnel entered into the secondary superheater to repair tube leaks, so Abby spent a lot of time up there. From that elevation she could see and hear the trains coming from miles away on BNSF’s Transcon.

Now she gets to work with the railroads every day!

Abby began participating in the NCTA in 2005. She credits the NCTA

meetings and its’ networking opportunities for providing a lot of information, education, and contacts ~ especially to someone new to the field. “Being willingly thrown into a department where I was the only person and with no opportunity to cross-train from my predecessor can be daunting. But I quickly found out the fuel supply industry is full of people willing to share and help.”

Abby is in her second year as a member of the NCTA Board. “Serving on the NCTA Board has been an eyeopening experience. There is a lot that needs to go on beyond the conferences and Tom, Pat, and Melinda have a lot to do the entire year. I have even more appreciation for the work everyone has to do to support this organization.”

Abby’s concept of spare time has changed over the years or maybe it’s how much she thinks she has. She used

to spend a lot of time on arts and crafts such as cross-stitch, stained glass, sewing, and scrapbooking to name a few. These days, much of her spare time is spent with her three dogs; Vegas, Nyla, and Cooper. Abby and her husband Kenny have been traveling a lot more in the last five years. “National Parks have been a real favorite and we frequently plan our vacations around how many parks we can visit!” If you have spent much time around her, you know Alaska is one of her favorite places. Camping has also been on the increase. They bought a popup camper a couple years ago and now spend many weekends up at Smithville Lake about 20 miles north of their home.

It’s about the perfect distance they are comfortable towing the camper. Walking the dogs, riding bikes and trains, and exploring the outdoors is what Abby enjoys the most these days. s

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NCTA Member Profile / Associated Electric Cooperative

Associated Electric Cooperative

The Power OF MEMBERSHIP

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ssociated Electric Cooperative is part of a three-tiered system united to serve electric cooperative members with affordable, reliable electricity from a mix of resources, including coal, wind, natural gas and hydropower. Headquartered in Springfield, Mo., Associated Electric is owned by six generation and transmission cooperatives (G&Ts) that formed Associated in 1961 to provide them a wholesale power supply. These six G&Ts are owned by 51 distribution cooperatives, which are owned by more than 875,000 member-consumers.

As an independent utility owned by the members it serves, Associated’s focus is on the members at the end of line, most of whom are older than 45 with incomes of less than $50,000 per year.

Associated’s mixed generation resources ensure reliable, economical electricity.

These resources include baseload generation supplied by two coal-based plants producing low-cost, around-the-clock power. Low-sulfur coal supplies the bulk of members’ power, typically about 80 percent. In addition, intermediate generation from three efficient, lowemissions combined-cycle natural gas plants, as well as three peaking gas plants, provide power when demand rises on cold winter or hot summer days.

Complementing coal and natural gas are Associated’s contracted renewable resources. In 2013, wind and hydropower provided 16 percent of members’ energy. The cooperative’s long-term commitment to purchase the wind power, its integrated transmission system and customers made the first utility-scale wind farms in Missouri a reality.

Associated has long-term purchase agreements to buy 600 MW of wind power from five wind farms in Missouri and Kansas.

Associated Electric Cooperative has two coal-based plants, including the New Madrid Power Plant uses a conveyor belt system transports coal from the rotary car dumper to the radial arm stacker. At left, conveyors remain from the time when New Madrid received its coal by barge due to its location along the banks of the Mississippi River.

8 | COAL TRANSPORTER

History of Reliability

In the early 1900s, electric service was a luxury enjoyed only in cities. Meanwhile, in rural areas where electricity was not profitable to provide, people were left in the dark – and left behind.

The federal government realized that if rural America were to be electrified, the country as a whole would have to help. In 1935, President Franklin Delano Roosevelt signed an executive order creating the Rural Electrification Administration.

A year later, Congress promoted rural electrification through low-cost loans needed to build transmission and distribution facilities.

Rural cooperatives formed rapidly to take advantage of the favorable financing.

Farm by farm, village by village, the lights went on across rural America. Associated Electric Cooperative started in 1961 to work with the G&Ts to keep electricity affordable and reliable for thousands of households in rural Missouri, Iowa and Oklahoma using diverse energy resources.

Counting Costs with Coal

Associated’s history with coal began with the startup of Thomas Hill Energy Center’s Unit 1 in 1966, its first coal-fired power plant offering a baseload of 180 megawatts. Thomas Hill Unit 2 went online in 1969, adding 303 MW of new generation. New Madrid Power Plant’s first unit of 600 MW went live in 1972, as well as its 600-MW Unit 2 in 1977.

and Associated was one of the first utiliIn 1978, Associated purchased the ties in the country to burn 100 percent Bee Veer and Prairie Hill mines from Pealow-sulfur western coal at both Thomas body Energy, inheriting coal reserves and Hill and New Madrid by 1995, reducing a crew of capable miners. For more than emissions and offering significant savings 10 years, Associated operated the mines to to members. It also received Power magaprovide members with affordable, reliable zine’s annual Powerplant Award for being electricity using Missouri coal. However, one of the first utilities to burn this type of economics and environmental pressures coal in a large cyclone boiler power plant. from 1990 Clean Air Act Amendments “When many utilities started to burn dictated a change. The cooperative found western fuels, they did so by blending it more economical to purchase low-sulfur their boiler design fuel with Powder River coal from Wyoming, including transBasin coal,” said Neumeyer. “When Assoportation costs, than to continue using ciated completed the coal conversation …

Missouri coal with scrubbers to reduce it began burning 100 percent PRB from emissions. Associated was preparing for an the beginning. There was a steep learning energy evolution. curve for both fuel handling and plant Modifications were required to operations, but it paid off by keeping the switch to western coal, including the fuel costs low.” construction of a nearly 17-mile rail spur The switch could not have come at a connecting the BNSF Railway main track better time. Coal and railroad companies to Thomas Hill, a two-mile spur connectwere aggressively seeking new customers, ing the Union Pacific Railroad to New and they were looking to sign favorable Madrid and loop tracks for unloading. contracts through 2010. Associated’s Both plants needed rotary car dumpers mission of providing affordable, relito unload the rail cars, and the crushers, able electricity to rural America was well conveyor belts and other coal-handling underway. facilities were modified.

“Prior to the coal conversion, New Madrid received fuel by barges on the Spurring Savings and Innovation Mississippi River,” said Roger Neumeyer, Today Associated uses more than nine New Madrid plant manager. “Switching million tons of coal per year at its power to Powder River Basin coal allowed New plants, and rail delivery is about 60 percent Madrid to meet new air quality standards of that fuel cost. To secure economical and lower its fuel costs.”

The projects were completed in time, Associated’s generation

MW capacity

resources

Coal-based power plants New Madrid Power Plant

1,200

Thomas Hill Energy Center

1,153

Contracted power from KAMO Power’s portion of Grand River Dam Authority’s Unit 2

198

Combined-cycle, gas-based power plants Chouteau Power Plant

1,062

Dell Power Plant (dual-fuel)

580

St. Francis Power Plant

501

Peaking oil- and gas-based power plants Essex Power Plant

107

Holden Power Plant (dual fuel)

321

Nodaway Power Plant

182

Unionville Power Plant (oil)

45

Additional contracted power sources Hydroelectric peaking power

478

Capacity sold to other utilities

(40)

Total

5,787

rail contracts and deliver low-sulfur coal to the plants, Associated has worked with Union Pacific Corp. and BNSF Railway to get the best price for members. “Building and maintaining key relationships have always been important components of Associated’s business philosophy. Strategic partners work together to ensure their mutual success, much in the spirit of our cooperative heritage,” said John Mayer, fuels coordinator at Associated Electric.

Late 2011, Associated engineering moved forward on work and land acquisition for a rail spur to improve the cooperative’s competitive position. Associated signed with BNSF in 2012 for coal delivery to its New Madrid Power Plant beginning Jan. 1, 2014.

BNSF had served Thomas Hill Energy Center since 1994. “Today we are one out of only three utilities in the country to receive 150-car train sets,” said Randy Echternacht, material handling supervisor at Associated’s Thomas Hill Energy Center.

“This is possible because our rail loop is large enough to hold this many cars. Our original rotary car dumper system has been

upgraded to handle these large unit trains with a capacity of 18,000 tons per train.”

Because Associated’s power plants operate around the clock, are not intermittent and do not depend on the ability of storage like wind, water and solar power, fossil fuel-based generation is the most reliable and cost-effective form of electricity for members. However, that doesn’t stop Associated from reducing emissions, as well as cutting costs, through environmental stewardship.

Reducing Emissions One Element at a Time Associated has a history of environmental commitment, spending more than $1 billion to reduce emissions since 1994. Its focus on serving members drives responsible use of members’ resources. Balancing these responsibilities has always been one of Associated’s top priorities.

Closing its Missouri mines and switching to cleaner, low-sulfur coal at New Madrid and Thomas Hill power plants enabled Associated to reduce sulfur

dioxide emissions 90 percent to fulfill requirements of the 1990 Clean Air Act Amendments.

“Associated was unique in being one of the first utilities in the country to switch to burning Powder River Basin low-sulfur coal,” said Echternacht. “This was a giant step at the time to close down the existing coal mine … and switch to a source of rail-delivered coal. This forward thinking and planning successfully accomplished the task of lowering Associated’s fuel cost and surpassing or meeting environmental needs for many years.”

The cooperative also was one of the first utilities to install selective catalytic reduction (SCR) equipment on large units to reduce nitrogen oxides emissions up to 90 percent.

The cooperative also supports research on lower-cost technologies to reduce emissions and keep electricity affordable for members. Just as it was one of the first to burn 100 percent low-sulfur coal, the cooperative led testing of a technology to reduce mercury emissions at a lower cost.

Upgraded rotary car dumpers at Associated Electric Cooperative’s New Madrid Power Plant in southeast Missouri can handle large unit trains with a capacity of 16,000 tons per train and 120 tons per car. Rotary car dumpers at both New Madrid and Thomas Hill Energy Center dump about 4.5 million tons of coal each year.

10 | COAL TRANSPORTER

COAL KEEPS THE LIGHTS ON. WE KEEP THE COAL MOVING. Visit nscorp.com for more information.

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At Norfolk Southern, we’re investing in technology and resources to add value for our coal customers. This includes one of America’s largest coal fleets and hybrid cars with lower weights to increase capacity. Plus, at Lamberts Point, our dedicated coal transload facility in Norfolk, we can make custom blends. Whether you’re a shipper, receiver, or partner, rest assured we’ll go the extra mile for you.

Associated was one of the first utilities to use Cyclean technology from Clean Coal Solutions LLC to reduce mercury emissions from cyclone coal units up to 80 percent, and it has been using this refined coal since 2010 to reduce mercury emissions voluntarily and ahead of requirements.

Associated’s proactive research to find effective, low-cost energy has it wellpositioned to meet the Environmental Protection Agency’s Mercury and Air Toxic Standards (MATS). In addition, Associated’s use of refined coal helps the cooperative offset its fuel expenses.

Ash to Ashes, Dust to Concrete

Associated also is working ahead to meet new ash-handling regulations expected from the Environmental Protection Agency this year. For example, the cooperative converted from a wet to a dry ash-handling system at Thomas Hill Energy Center.

For the past 20 years, Associated has recycled ash from its coal units, bringing in revenue that helps keepsmembers’ costs stable. The cooperative sells bottom ash, a heavier material from the bottom of the units, for use in roof shingles. It has successfully recycled more than 545,000 tons of bottom ash, bringing in $1 million of additional revenue for members.

Associated sells fly ash from Thomas Hill Unit 3, a pulverized unit that produces ash lower in carbon, to make concrete. It also partnered with a University of Missouri scientist to create a super-strong “green” brick now licensed for manufacturing. Since 1998, the cooperative has sold thousands of tons of fly ash, bringing in several million dollars in revenue.

Dedication to Land, Wind, Water

Associated and its member systems strive to balance members’ need for low-cost power with its environmental stewardship. The cooperative has twice received the nation’s top award from the U.S. Department of Interior for restoring thousands of acres of once-mined land to productive pasture, forests and wetlands.

The U.S. Department of the Interior recognized Associated with its Excellence in Surface Mining and Reclamation Award for transforming 1,000 acres mined by a previous owner into a viable habitat for wildlife.

The Interstate Mining Compact Commission recognized Associated as a national leader in mine reclamation with its 2007 Kenes C. Bowling Mine Reclamation Award in the coal category for reclamation of the Bee Veer Mine in Macon County, Mo. The Department of Natural Resources also noted Associ-

ated’s “exemplary reclamation” and water quality restoration of the South Fork of Claybank Creek.

Today, on formerly mined land, as well as land that was never mined, are ponds that provide fish and wildlife habitat, woodlands with shelter for many species, land leased to neighboring farmers for pasture and acres for crop and wildlife research underway.

Associated also developed a groundbreaking agreement with the U.S. Fish and Wildlife Service to protect habitat for endangered species and ensure reliable transmission for members.

Associated worked with Missouri State University on research to create artificial habitat for Indiana bats. The cooperative placed 10 structures, including four utility poles, on reclaimed land at Bee Veer and Prairie Hill Mines in Clifton, Mo., and researchers are evaluating evidence of their use. Associated Electric employees even raised peregrine falcon chicks from the top of its power plants while researching further solutions to help wildlife and plant operations.

CARE Now, CARE for the Future Clean, affordable, reliable electricity for members (CARE): Associated successfully balances all three. Its focus is on continuous improvement, and its many underlying strengths enable the

Associated Electric Cooperative’s coal-based New Madrid Power Plant near New Madrid, Mo., accounts for 1,200 megawatts of the cooperative’s baseload generation and burns about 14,300 tons of coal every day.

12 | COAL TRANSPORTER

EXPERIENCE DEDICATION EXPERIENCE INNOVATION DEDICATION INNOVATION

Associated Electric Cooperative has reclaimed formerly mined land, transforming it into pasture, woodlands and wetlands that provide habitat for many species near its Thomas Hill Energy Center in north-central Missouri. cooperative to achieve important environmental and financial goals while meeting, and exceeding changes in the industry and members’ needs.

Collective responses from the system’s 2013 Member Satisfaction Triennial Survey gave the three-tiered system served by Associated the third highest customer satisfaction rating among energy providers in the U.S., and higher than the national industry benchmark. This high score indicates members are well-satisfied with the services of their local cooperatives.

Associated listened when members said they support a balance between environmental and cost issues, with the greatest importance placed on affordability. The cooperative’s Take Control & Save program helps members through energy audits; weatherization incentives; appliance, heating and cooling rebates; pilot projects; and educational seminars. The cooperative’s investment through 2013 will bring projected lifetime savings of 1.1 billion kilowatt-hours during the life of the appliances – enough energy to power about 73,000 member homes for one year.

Associated’s mission to provide affordable, reliable energy and support services includes a strong, flexible financial position and governance by an engaged, responsive board of directors representing diverse, informed member-owners. Associated is a lean, strategic organization poised to seize opportunities that benefit members, and it is well-positioned to continue to be its members’ best option for balancing clean, affordable, reliable energy for many years to come. s

OUR STANDARD OF EXCELLENCE drives us to focus on safety first, and to never

OUR STANDARD OF EXCELLENCE waver from our commitment to be the best. From drives us to focus on safety first, and to never our account managers, to our engineers, to our waver from our commitment to be the best. From maintenance team, GATX provides industry-leading our account managers, to our engineers, to our railcar leasing and support to a broad range of maintenance team, GATX provides industry-leading customers who depend on our 136,000 railcars railcar leasing and support to a broad range of and 600 locomotives. customers who depend on our 136,000 railcars and 600 locomotives.

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COAL TRANSPORTER | 13

1/23/14 9:22 AM

NCTA 2014 Fall Conference / Preview

NCTA 2014

Fall Conference Westin Downtown, Denver, Colorado | September 15-17, 2014

Y

ou are cordially invited to help us celebrate! The NCTA continues to offer “Conferences with Character� as it stages its 40th Annual Business Meeting and General Conference, September 15-17, 2014 at the Westin Denver Downtown in Denver, Colorado. An anniversary is a great time to reflect back on the efforts, accomplishments, and friendships created over the years. It is also a good time to look to the future. As a truly member driven organization, the future is what you, our amazing members, make of it.

The 2014 Conference is an opportunity to learn the facts

14 | COAL TRANSPORTER

and explore the issues directly with knowledgeable executives, regulators, consultants, and industry leaders. Rail service has been a major challenge for shippers this year. The three parties having the greatest impact on rail service out of the PRB - the Union Pacific, BNSF, and the Surface Transportation Board are on the agenda. NCTA always strives for a balanced agenda representing both sides of the issues. While you might not always agree with what you hear, you will leave with a well-rounded perspective. Please check the NCTA web site for updated information and online registration.

REGISTRATION

Registration is required for each attendee of the NCTA Annual Meeting and Conference. The registration fee is now $530.00 for those representing an NCTA member company and $680.00 for all other attendees. The registration fee includes access to presentation materials; entry to all sessions; the receptions on Monday and Tuesday evenings; continental breakfast on Tuesday and Wednesday; and all refreshment breaks.

Please consider pitching in to sponsor this event. Sponsorships are only $450 and can be paid in the conference registration process. The flyer sponsorship is $750 and includes a one-third page sponsor advertisement/acknowledgement. All sponsors will be recognized on the agenda, with banners at the event, on the NCTA website, and in the Coal Transporter magazine.

RECREATION

The Rockies are in town against the Dodgers at Coors Field on Monday and Tuesday evenings of the conference and also have a Wednesday afternoon game. The Broncos are home on Sunday the 14th against conference rival the Kansas City Chiefs.

Kickoff is 2:25 pm. If you are more into music than football, Alabama is also live at Red Rocks on Sunday night. Doors open at 6:30pm. Even if you don’t attend a concert, Red Rocks is a great place for a day hike. The Denver Botanic Gardens, just minutes from downtown is hosting the Rocky Mountain Region’s first major outdoor exhibition of artwork by American artist, Dale Chihuly. Of course, don’t forget the multitude of great golf courses that the Denver area has to offer. s

ACCOMMODATIONS

Located in renowned LoDo District, right on the 16th Street pedestrian mall, the Westin is a fitting spot to celebrate the NCTA’s 40th anniversary because we have met there so many times. The Westin’s central location means restaurants, clubs, museums, and professional sports venues are all within walking distance. The Westin’s 430 guest rooms and suites have views of the city or the amazing Rocky Mountains. In room amenities include 37” flat-screen LCD TVs, iPod and laptop interfacing capabilities, and the Westin Heavenly Bed®. The Westin is located at 1672 Lawrence Street, Denver, CO 80202.

RESERVATIONS: 888-627-8435 or 800-937-8461 ROOM RATES: $185.00/day Single/Double The last date to get the guaranteed NCTA rate was August 22 and the hotel may be sold out now. In that event, we will help you find alternate accommodations.

Monday, September 15 2:00pm – 6:00pm NCTA Information Desk Open 11:00am – 4:00 pm NCTA Board of Directors Meeting 5:30pm – 7:00pm Welcoming Reception - Sponsor: AKJ - Nalco

Tuesday, September 16 8:00am – 11:30am 11:30am – 1:00pm 1:00pm – 3:45pm 4:00pm – 4:30pm 5:00pm – 6:30pm

General Session Lunch by Individual Arrangement General Session NCTA Annual Business Meeting for Members General Sponsor’s Reception

Wednesday, September 17 8:00am – 11:30am General Session

COAL TRANSPORTER | 15

New Member Announcement

NCTA WELCOMES ITS NEWEST MEMBERS!

T

he board of directors of the National Coal Transportation Association is pleased to announce that the applications for membership in NCTA of the following coal industry participants were approved. They join NCTA’s existing member companies working every day through NCTA to foster the cooperation needed to resolve issues faced by coal consumers, coal producers, transporters, rail equipment manufacturers, and services companies.

A complete list of NCTA member companies can be found on our website: http://www.nationalcoaltransportation.org/ index.php/membership/current-members

Benefits of Membership • • • • • • • •

Focus on Coal Transportation Conferences with Character Logistics and Planning Subcommittees Operations and Maintenance Subcommittee Access to Railcar Leasing Exchange Board Commitment to Education Policy Insights Publications

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Infrastructure / Lake Superior

The 2014 Season Begins

U

Finally

sually the big ships that glide in and out of the Twin Ports start the season with barely a ripple and make moving prodigious amounts of cargo look easy.

Sidle up to the dock. Take on tens of thousands of tons of cargo. Ease away to destinations on the lower Lakes. Arrive two or three days later without fanfare.

Discharge cargo. Turn around. Repeat. As the season progresses, ships from saltwater ports join the flow.

Piece of cake for the amazingly productive freighters that sail the Great Lakes.

But this year? Not so easy. Not so easy at all. The reason: ice.

An early close to the 2013 shipping season — because of early-onset ice — saw Coast Guard icebreakers and commercial tugs battling choked channels across the Lakes to assist a handful of freighters make final deliveries and get safely into harbors for winter layup.

18 | COAL TRANSPORTER

During those precious few weeks when vital maintenance and repair in layup was performed, often in miserable weather, the ice only got worse.

And so, crews faced daunting conditions in March when the 2014 season was to begin. Ice cover on Lake Superior peaked at 95 percent. Average ice cover across all five Lakes hit 90.5 percent by March 4 — the broadest coverage since 1979 — and it was three to four feet thick in many areas.

On that very day, Rear Admiral F.M. Midgette, U.S. Coast Guard Ninth District Commander, opened a letter to the Lake Carriers’ Association with, “Spring breakout this year will be one of the most challenging on record.” Midgette asked companies to reassess their needs at fitout and to delay deliveries if possible.

He added that “breakout would be long and difficult… and transits in current ice conditions slow and arduous.”

Coast Guard vessels had already encountered ice in the St. Marys River and Straits of Mackinac beyond their ability to break tracks. Conditions on Lake Superior were expected to exceed even the powers of the icebreaker Mackinaw, the most powerful weapon in the U.S. Coast Guard’s arsenal.

But the industries that depend on the timely movement of vital cargoes could not wait. Stockpiles of iron ore and coal were running seriously low. Waiting for Mother Nature to melt the ice was not an option.

Thus began the deployment of a finite fleet of Coast Guard assets — nine American and eventually four Canadian — in strategic locations across the sweep of the Lakes and Seaway to break out the rivers and channels and establish navigable tracks as quickly and safely as the interminable winter would allow.

Mark Gill, veteran director of vessel

The Cason J. Callaway, following a track broken by the USCG cutter Alder and a Heritage Marine tug, opens the season as she departs the Twin Ports on March 22.

Credit: Robert Welton

traffic services for the U.S. Coast Guard at Sault Ste. Marie, can look back on more than 35 seasons; it was apparent to him that the start of the 2014 shipping season would be one for the books. “This is historic — a once in a generation event,” he said. “This is the most ice we’ve ever dealt with on Lake Superior … a lot more ice than we have icebreakers.”

Gill’s job is directing vessel traffic services and “ice ops” for Coast Guard Sector Sault Ste. Marie. For more than three months, he and his team focused on strategically positioning and repositioning icebreaking assets according to changes in weather and ice while staging convoys above and below the locks.

In meetings with fleet operators and industry representatives in early March, Gill indicated that the Soo Locks themselves would be physically functional on the 25th but that standard movement of ships would be impossible. Gill and his

team looked at all contingencies, but walls of ice were blocking key locations — particularly an edge of ice four-plus feet thick that extended 50 miles to the west of the entrance to Whitefish Bay. Jim Sharrow, now facilities manager for the Duluth Seaway Port Authority and before that marine engineer for Great Lakes Fleet for 28 years, recalls that the last time ships were compelled to move in convoys to start the season was in 1979.

“We had severe ice conditions again in the 1990s, but typically, Lake Superior has open water in the center and thicker ice in just the far eastern and western ends, which allows for easier deployment of Coast Guard,” he said.

The Soo Locks did open this year on March 25, as scheduled — but without a single ship in sight. The first commercial vessel to transit didn’t arrive until April 4. Most U.S. and Canadian lakers were still held fast by thick ice at

docks across the Great Lakes.

Some fleets delayed their first sailings until early April. Lingering snowstorms and freezing weather complicated Coast Guard efforts to fracture and establish tracks on the Lake through thick shelf ice, windrows and huge chunks frozen in rubble fields.

It wasn’t just the western end of this waterway that faced delays. Due to unusually heavy ice back East, the opening date for the Montreal/Lake Ontario section of the St. Lawrence Seaway was pushed back to March 31 (though the Welland Canal section did open on March 28).

Lost time, lost cargoes

Normally, it takes a freighter two and a half days to make the trip from iron ore docks in Duluth-Superior or Two Harbors across Lake Superior. It’s into the St. Marys River, through the Soo Locks and Straits of Mackinac and then to steel mills COAL TRANSPORTER | 19

The Burns Harbor leads the American Century into Port on April 26 as convoys escorted by icebreakers battle their way from the Soo to Duluth-Superior.

Credit: Diane Hilden

along Lake Michigan’s southern shore.

Two of the first lakers out — the Cason J. Callaway and the John G. Munson — arrived in Gary two weeks after leaving Duluth.

The Callaway, the first laker to depart, was also the first commercial ship through the Soo Locks, on April 4. She and the Munson had been delayed when ice damaged a third laker in the convoy, fleetmate Presque Isle. After hull damage was discovered on the Presque Isle, it was clear that she could not continue the journey. So the Mackinaw parked the Munson and Callaway in an ice field while she escorted the Presque Isle back to Duluth for repairs. This is why the original crossing of Lake Superior took nine days.

Both the Munson and Callaway arrived at U.S. Steel Gary Works in Indiana on April 8, but not before the mill had run out of iron ore and temporarily idled its blast furnace. It would continue

Bob Sarvela, Midwest Energy Resources, Michael Hoffman, DTE Energy, and Randy Van Aartsen, We Energies represent three utilities in the thick of it. Are they comparing notes or do those smiles mean they were just happy the Spring Conference was on sunny Hilton Head?

20 | COAL TRANSPORTER

to run at reduced capacity until its supply of pellets was restored.

Two other freighters — the Mesabi Miner and Kaye E. Barker — were docked in Duluth-Superior, loaded with coal for a power plant in Marquette, Mich., but waiting for the next downbound convoy to queue up. The We Energies Presque Isle power plant in Marquette was operating just three of its five units to conserve coal until more arrived, while DTE Energy dealt with dwindling stocks by taking some units out of production for maintenance and buying power from the grid to make up for the loss.

According to the Lake Carriers’ Association, only three ships were able to haul coal on the Lakes in March, for a mere 102,000 tons, down 70 percent from the same month in 2013.

Combined shipments of iron ore, coal and cement carried by lakers in March totaled only 980,000 tons, 55 percent less than they’d delivered a year earlier.

Tonnages for April were off by nearly as much.

The LCA’s Glen Nekvasil said the persistent ice had led to an absolutely crippling start to the shipping season because the ice season started so early — the first week in December — and continued so late. “We’re going to face a real challenge to rebuild stockpiles.”

Fewer than half the U.S.-flag lakers were in service by early April, and several had suffered ice damage in early season transits. Even thick, steel, reinforced hulls are no match for the pressure of moving plates of ice. Neither are rudders, propellers and hubs invulnerable to damage when hitting ice.

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But conditions would improve. By the third week of April, ice was deteriorating in many parts of the waterway, though ships slogging across Lake Superior were still encountering ice two and three feet thick, plus walls 12 to 14 feet high that had been created by winds and waves. By May 1, conditions in the lower Lakes had improved enough to eliminate icebreaker escorts and convoys, though icebreaking operations continued on an as-needed basis until May 15.

Unrelenting ice took a toll on tonnage here at the Head of the Lakes. We counted just four vessel visits to the Twin Ports in March compared to 24 the same month in 2013. Remarkably, the Port saw no vessel traffic from April 16th to the 21st, and only 25 visits for the whole month.

Once laker traffic was somewhat back to normal, salties moved into the queues. Finally, on May 7, boatwatchers watched AIS apps on their computers and smart phones, eagerly awaiting the arrival of the season’s first saltie in the Twin Ports.

As May progressed, we could say, even if with a sigh instead of the usual shout of exhilaration, that the season was under way. Now we’ve got a lot of catching up to do. With open water ahead, finally, the big ships are again beginning to make their work look easy, with barely a ripple. s

Our thanks for technical assistance on this article to Mark Gill, USCG director of vessel traffic services at Sault Ste. Marie; Jim Sharrow, facilities manager at the Duluth Seaway Port Authority; and Kenneth Newhams, Duluth Shipping News The text and images in this article originally appeared in the Spring 2014 issue of the North Star Port Magazine, a publication of the Duluth Seaway Port Authority (DSPA). The DSPA is a public agency created by the state of Minnesota in 1955 to expand and improve facilities at the Port of Duluth-Superior in anticipation of the opening of the St. Lawrence Seaway in 1959. Today, the Port of Duluth-Superior is the largest tonnage port on the Great Lakes and ranks among the top 20 ports in the U.S., handling an average of 38 million short tons of cargo and hosting nearly 1,000 vessel visits each year. s 22 | COAL TRANSPORTER

Ice by any other name …

The unrelenting deep freeze of early 2014 not only delivered a winter of discontent but also unleashed language specific to ice. We thought it might be helpful to clarify terminology used this winter/spring by meteorologists, mariners and the Coast Guard.

As those pans thicken, fields of ice develop, which are also called floes.

Those fields start forming in protected areas like bays and harbors and then move out toward the center of larger bodies. It is uncommon to get thick fields of ice in the middle, deepest parts of Lake Superior.

In its early stages of making ice, when water begins to freeze or crystallize, those small crystals are called frazil ice. Locked together, they form small circular disks called pancake ice. And as the temperature keeps dropping, those pancakes link together to form plates.

This year, people were also talking about windrows — wind-driven ridges or rubble fields. The terms are virtually interchangeable and refer to high piles of ice — plates that have been broken apart by wave action — and then lifted and stacked on top of one another, then refrozen in subzero weather. There were miles upon miles of windrows at the start of this shipping season — some

As plates start to collect and freefloat, they are often called pans.

How slow was it?

Media reports were chock-full of news this spring about the slow start of the 2014 shipping season because of ice. How slow was it? This table, showing March and April arrivals since 2010, paints a not so pretty picture:

March

April

2010. . . . . . .11 2011. . . . . .119 2012. . . . . .132 2013. . . . . . .24 2014. . . . . . . .7

2010. . . . . . .68 2011. . . . . . .88 2012. . . . . . .93 2013. . . . . . .25 2014. . . . . . .25

Season’s firsts First Outbound. . . . . . March 22 1:30 p.m.. . . . Cason J. Callaway First Inbound. . . . . . . . . April 9 10:47 a.m. . . . . . . American Spirit (From Two Harbors)

First in via Soo Locks. . April 14 4:54 a.m. . . . . . . Stewart J. Cort First Canadian. . . . . . . . April 14 6:47 a.m. . . . . . . CSL Tadoussac First Saltie . . . . . . . . . . . May 8* 11:51 p.m.. . . . . . . . . . . . . . Diana * Latest on record since Seaway opened in 1959.

reaching heights of 12 to 16 feet on Lake Superior. In many years, it is common in the Straits of Mackinac to get 20- to 30-foot windrows.

Brash ice forms as the result of propellers breaking plate ice into smaller pieces, akin to a blender breaking up ice cubes for a slurpee — or a daiquiri. Here in the Twin Ports, winds from the east-northeast tend to pack that sticky ice into the harbor entries and outside the piers.

Ships sometimes become beset in ice so thick that the vessel is stopped in its track and unable to proceed on its own. When a ship hoves to, it means that the captain has voluntarily stopped in the ice to wait, perhaps for daylight, for the rest of a convoy to catch up or an icebreaker to arrive before proceeding.

The Presque Isle, having sustained hull damage during her first attempt to start the season, transfers some cargo onto the American Spirit before tying up for repairs.

Credit: Robert Welton

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COAL TRANSPORTER | 23

NCTA 2014 Spring Conference / Review

NCTA 2014 Spring Conference Marriott Resort & Spa, Hilton Head, South Carolina | April 27-30, 2014

T

he polar vortex was a fresh memory but luckily nowhere to be found as the 2014 Spring Conference kicked off at the Marriott Resort & Spa on Hilton Head Island. The opening reception on Sunday was a casual affair on the ocean front deck where the sound of the surf intermixed with that of the Kathy Deringer Duo. The annual golf tournament was held on the Robert Trent Jones Oceanfront Course at Palmetto Dunes. Its signature 10th hole is only one of 2 oceanfront holes on the island. A film crew was on hand to catch all the action, not for us, but for a Hilton Head Island special due to air on HGTV. The annual NCTA dinner was a Taste of the Low Country featuring a variety of Carolina favorites including pulled pork, shrimp boil, and the most delicious fried green tomatoes ever.

It was another perfect evening and the group stuck around long after the peach cobbler and peanut butter pie was gone to visit and enjoy the music provided by The Headliners. It was such a great band that other hotel guest hung out on their balconies just to enjoy the show.

As if on cue, the skies turned cloudy once it was time to stay indoors for the formal conference program. Surface Trans-

Melinda Canter & David Ryan

The Cutest Guest at the Party

24 | COAL TRANSPORTER

a Raul Fuentes, Irm

portation Board Chairman Dan Elliott was Tuesday’s Keynote Speaker. He brought with him two representatives from the STB’s Rail Customer & Public Assistance (RCPA) program for private, confidential meetings with attendees. The Western Logistics and Planning Committee also met in a breakout session to constructively analyze and discuss western rail service. The Eastern Logistics and Planning Committee took the opportunity presented by the timing and location to concurrently hold its usual May meeting in a breakout session Tuesday afternoon.

The Spring program included transportation updates for the Norfolk Southern and CSX Railroads as well as the Mississippi River export gateway. On the commercial and regulatory front, markets, rate trends, the coal dust mitigation decision, FERC Operations, and upcoming environmental regulations were covered. Looking to the future, ongoing coal advocacy efforts including the NCTA digital media initiative were presented. The meeting concluded with an expert panel on Coal and Electric Grid Stability.

The 2015 Spring Conference is scheduled for April 26-29, 2015 at the Wigwam in Litchfield Park, Arizona just outside of Phoenix. s

Laney Roumpos & David Carlile

Gregg Simmons

Lynn Mart in

ri,

Anda Vidaur Delia Ordonez De Susie Fuentes

William McNally, Logan Bonacorsi, Allen Gould

Jim Owens

Dan Speck & Bob Liss

Brian Miles, Jeff Maier, Kevin Birrell, Rick

Pieper

Maxine and David Jacobs, Emily Regis, Dan Applebaum

2014 Spring Conference Sponsors Platinum: Gold: Jeanne and Dave Wanner, Nathan Harbeck

COAL TRANSPORTER | 25

NCTA COMMITTEE

UPDATES

NCTA Committee work is at the heart of the Association.

The committees provide valuable information and education to members, foster best practices, improve communications among the parties, and keep members up-to-date on new rulings and technologies. This is where members get payback many times over for their annual membership fees.

Eastern Logistics & Planning

Operations and Maintenance

The Eastern L&P Committee met on April 29, 2014 at the Hilton Head Marriott Resort and Spa. Chairman Edwin Fisher (Arch Coal) and Mike Bailey (Peabody Energy) put together a great education program.

On the rail side, updates were provided by Jack Burgess of CSX and Steve Ewers of the Norfolk Southern (NS). Jack Cranfill of AKJ Industries presented information on the use of latex systems and its handling as a coal top application. Rob Brawner of Mountain Laurel Coal gave a thorough primer on various mine layout plans and mining practices.

Representing one of NCTA’s newest members Pickand Mathers, Sam Brown discussed the innovations in supply chain management adopted by the PM Lake Services group.

Grounded by weather and unable to make it to Hilton Head for the meeting, Chris Hamilton, the Director of the West Virginia Coal Association, gave his presentation on the associations public education activities over the phone as attendees viewed the slides.

The Fall Meeting of the Eastern Logistics and Planning Committee has not been scheduled. If you would like to host the meeting, please contact a NCTA staff member or EL&P Chairman Edwin Fisher. s

The Operations & Maintenance Committee just completed its annual conference in Park City, Utah. The conference was very successful, containing great educational content and a wealth of networking opportunities. For complete details and photos, see the conference recap in this issue.

Dennis Wanless (Xcel Energy), Kurt Stroer (Ameren), Robin Andersen (Mitsui Rail), and Tom Sedarski (Ellcon National) were reelected to 3-year terms on the Executive Committee at the allmember Roundtable. Participation on any of the Operations and Maintenance committees is open to all members. One of the most active is the Tech Review committee.

Its main focus this year has been the development of a universal wheel removal template. The purpose of this template is for the collection and study of wheel removal data gathered from participating NCTA member companies and entered into one large data base.

With wheel change-outs being the number one maintenance expense for coal car owners, the Tech Review Committee feels that there is value in studying a large (owner anonymous data base to help identify trends and commonalities pertaining to wheel life that may lead to solutions in reducing premature wheel change-outs.

A preliminary template was presented to the membership roundtable at the recent NCTA O&M conference held a Park City, Utah. A lively discussion was held and many comments and suggestions were offered by the membership. Based on those comments and suggestions, a “streamlined” version was developed.

Currently, instructions on how to use the template are being finalized and the template should be made available for the membership by the end of the summer. After the data is submitted by the membership and analyzed by the Tech Review committee, a webinar is planned to share the results with the membership. If there are any questions please contact Dennis Wanless or the Tech Review committee. s

Edwin Fisher at the Arch Coal event following the EL&P Meeting 26 | COAL TRANSPORTER

Dwight Porter, O&M Chairman Dennis Wanless and Education Outreach Chairman Gayle

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NCTA COMMITTEE UPDATES Western Logistics & Planning The Western Logistics & Planning Committee met at Ameren’s Power Operations Service Facility in St. Louis on July 24th. It was a home game for Chairman Molly Mitchell (Peabody Energy). ViceChairman Jeff Zekle (American Electric Power) made arrangements for a tour the previous afternoon of the tow boat the Jeffery G. Stover. Jeff Fettig of AEP River Operations was on hand to help with the tour groups. He also spoke on the rising river at the formal meeting the next morning. Our thanks go to the crew and all of those involved in planning this very educational tour. There will be a test later on which Jeff was which.

Wednesday evening those that could attend enjoyed a night out at Busch Stadium in a baseball networking event sponsored by Ecofab. John Cruikshank, an Australian, may not have seen his first home run, but he did get to

John Cruikshank of Ecofab at the Cardinals/Rays Game

see Cardinals’ Yadier Molina leave crackers at home plate for his brother Jose, the starting catcher for the Tampa Bay Rays. Apparently there is a third Molina (Bengie, now retired as a player) and all three have World Series rings. The Rays won 3-0.

The meeting was opened by the Ameren’s, Director of Coal Supply Bob Neff. Bob is a past President of NCTA and we couldn’t have asked for a more knowledgeable person to lead things off. Railroad updates were provided by Cindy Overhue for the Union Pacific and Will Cunningham of the BNSF. When plans for additional locomotives and manpower were discussed, shippers were very interested in how the capacity would be allocated between the carriers various business lines.

The committee’s Western Rail Service forecasting and equipment management working groups reported on their efforts to improve communications and efficiency within the system. These

presentations are available to members on the NCTA website. An extensive discussion followed.

Glenn Hof of Ameren was also on the agenda and discussed onsite rail maintenance. Glenn is interested in putting together a track maintenance spending survey that would ultimately assist individuals in optimizing their maintenance programs. He proposed a third party firm handle the survey data to maintain its confidentiality.

Following a tasty lunch hosted by Peabody Energy, a group headed out for a tour of the Labadie Power Station which produces over 2,400 MW of beautiful, reliable, low cost electricity from coal. A big thanks to all our sponsors including Ameren, Peabody Energy, American Electric Power, AEP River Operations, and Ecofab.

The next meeting of the Western Logistics and Planning Committee will be in February 2015 with the location to be determined. s

Jamie Torske, Molly Mitchell, and Lexie Burgess

Turbine Deck at the Labadie Energy Center

The Jeffery G. Stover heads down the Mississippi following the tour 28 | COAL TRANSPORTER

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Thanks to FreightCar America and TrinityRail for providing these photos from their archives.

30 | COAL TRANSPORTER

4 0 Y E A R S of Coal Car Tec

C

hnology

oal cars didn’t seem to change that much in the first part of the tw but they have changed entieth century a lot in the last 40 years . Coal fleets have one est utilization rates in of the highthe rail industry, some of the lightest and mo car designs, and unlik st advanced e any other cars, they are subjected to challen processes such as heat ging physical sheds, rotary dumpers component manufactur , and shakers. The rail ers, fleet managers, an car designers, d the rail operators all these the most reliable work together to make workhorses on the pla net.

COAL TRANSPORTER | 31

2014 Operations and Maintenance Conference / Review

Smile for Pat!

2014 Operations and Maintenance Conference Park City, Utah | June 9-11, 2014

N

Roundtable. This is a unique event within the industry, providing NCTA members the opportunity to discuss maintenance trends, do some problem solving, and share best practices. The technical review committee reported on their efforts to create a template for the collection and study of wheel removal data. See the committee section of the magazine for more details on this effort.

Tuesday’s general session began with a welcome from Utah native and life-long resident, Kevin Birrell, currently with Bowie Resource Partners.

The Tuesday evening dinner was a Mountain Barbeque Buffet held in the outdoor Sundial Pavillion just at the base of the mountain. It turned out to be a very fun evening with dueling piano players, entertaining and engaging the group. Instead of the traditional tips, each table had a few sets of STOP and GO cards so when a fellow attendee

CTA Operations & Maintenance Committee held its annual conference June 9-11, 2014, at the Grand Summit Hotel at the Canyons Resort in Park City, Utah. Those arriving early to enjoy the beautiful Wasatch Mountains were blessed with perfect weather for hiking, biking, or bobsledding - summer style. In the early morning, a flotilla of hot air balloons dotted the sky only to be replaced in the evening by millions of stars.

Following the opening night reception, groups headed down to Main Street. The old mining town of Park City is now a fashionable center of arts, shopping, dining, and recreation. It is said that Park City has more chefs per capita than Paris, many of whom studied in France and have earned world-renowned reputations.

The meeting began on Monday with the annual private car owner 1

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requested a song, it could be derailed with a stop card. The piano players would move on to a different song if a go card was not produced. There was singing, dancing, and even some “lighters” held in the air. Who knew there was an app for that?

The annual NCTA O&M Golf Tournament was held Wednesday at the Soldier Hollow Golf Course. A part of gorgeous Wasatch Mountain State Park, Soldier Hollow was a major cross country venue during the 2002 Winter Olympics that was repurposed into two 18-hole courses named the Gold and Silver. The group played the higher gold course with amazing views of the Heber Valley.

The 2015 Operations and Maintenance Conference will be held June 8-10, 2015 at the Pinehurst Resort, Pinehurst, North Carolina. s

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L-R: TOP 1 Bruz Hicks & Tom Lubinsky 2 Bruce Fogg 3 DeWayne Bradford & Peter Sutcliff Bottom 4 Scott Steppe & Karl Van Norman 5 Lisa & Troy Smith

32 | COAL TRANSPORTER

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2nd Row 9 Piano player 10 Daniel Hart 11 Mike & Maureen Kelly 12 Elizabeth Cripps

3rd Row 13 Rob & Gloria Marchio 14 Lisa McNamara & Angela Key 4th Row 15 Tom & Tammy Lore 16 John & Lisa Jennings

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2nd Row 20 Paula Clark 21 Kevin Koepke 22 Devin Sammon 23 Robert Novinsky 24 Jo Bardell & John Zoller

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Fleet Management / Changes

COAL CAR FLEET MANAGEMENT PAST, PRESENT, & FUTURE

T

he list of ways in which the information age has changed our lives is long: at the click of a button we can reconnect with old friends, shop for just about anything, share photographs, learn a new language – and manage a fleet of railcars! Well, perhaps that last item takes more mechanical knowledge, but technologies have changed forever the way in which the experienced manager now handles fleet maintenance.

PAST

• Fleet managers were typically mechanical people, ex-railroad people, “Car Knockers”.

• Managed fleets by personal or employee inspections.

• Review AAR billing, but didn’t really analyze it • Railroad and some contract shop repairs (establish relationships)

36 | COAL TRANSPORTER

PRESENT

• Proactively manage fleet by in depth analysis of AAR billing data.

• May contract outside expertise to manage and analysis data.

• Proactive maintenance scheduling – bring trains into shop on annual basis • Wayside detection alerts. WILDs, Hot Bearing (Hot Box) Detectors, Acoustic Bearing Detectors • Analysis and evaluate fleet value (and condition) and leasing options.

• Manage fleets using other current data bases and technologies.

Aka: Raillink, Interis

FUTURE

• Fleet management will be completely data driven.

• Real time data – Fleet managers will know about equipment health “right now”. Will enable for more accurate pro-active maintenance planning.

• Warm/ cold wheel detectors will be improved and be key indicators of “root cause” issues. Aka: Hand brakes applied, truck issues, other brake equipment issues.

• Advances in truck performance detectors.

• Machine Vision technology – Wayside camera systems being developed now to detect a myriad of equipment defects.

• Possible onboard electronic health monitoring equipment. GPS equipped, manage Hand Brake position, other key components while inside private facilities.

• Advances in component tracking (bar coding of components) already underway on wheels and truck components (bolsters and side frames), other components, air brake valves, etc. next up. Will be able to more accurately track life cycle cost of components. s

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Associated Terminals Welcomes the T. May

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ssociated Terminals welcomed the T. May to its fleet with a christening on the riverfront at Woldenberg Park in New Orleans. The T. May marks the eighth Gottwald crane and second of the 8400B models that have been added to the fleet in the last five years.

While a driving rainstorm interrupted the festivities and drove the crowd inside to complete the ceremony, it did not dampen the spirits of Senior Vice President Terry May, for whom the floating crane was named. May, a 35 year veteran of the marine industry, has been part of the Associated Terminals team for over twelve years and is responsible for sales, marketing and logistics. At the event, he thanked a list of people who influenced his career and life, including his colleagues, mentors and family members. “When friends are doing business together, there are so many good days and so very few bad ones,” stated May. With the addition of the T. May, Associated Terminals has completed its program of replacing conventional equipment with Gottwald models. The company’s last conventional cranes, the Russell Knight and the Kristin J., have been divested. “This is another important milestone for Associated. We have invested a substantial amount of capital during the past several years to completely replace our fleet of floating cranes. This investment

has dramatically increased our capacity to continue to serve our customers, while providing our team with the safest and most modern equipment available to our industry,” stated Chief Financial Officer Kevin Tarleton.

The T. May is identical to Associated’s floating crane the Talley-Perez. “The T. May will allow us to continue to provide our customers with industry-leading service,” said Associated Terminals President Todd Fuller. “We have been so pleased with the performance of the Talley-Perez that we decided to choose the 8400B model again. The new addition will further increase our capacity to safely and efficiently handle large volumes.”

The Gottwald 8400B crane is mounted on a heavy load deck barge built by Conrad Industries of Morgan City, LA. The barge measures 250 x 72 x 12 feet. On the barge are two deck generators, each generating 135 kw to power the floating crane. The crane’s largest bucket has a capacity of 63.5 cubic yards. s Associated Terminals is one of the largest midstream stevedoring companies on the Mississippi River, operating a fleet of high capacity floating cranes. The company transloads cargo to and from vessels and barges at eleven mid-stream anchorage facilities on the Lower Mississippi River, as well as at additional dockside and on-site locations.

The new addition will further increase our capacity to safely and efficiently handle large volumes. - Todd Fuller 40 | COAL TRANSPORTER

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History / Promontory Summit

My Visit to

Promontory Summit By: Pat Scherzinger, NCTA Communications Director

42 | COAL TRANSPORTER

T

he driving of the Golden Spike at Promontory Summit, Utah to create the Transcontinental Railroad is just one of those pieces of history that every American is aware of. I’m sure the revisionist history book that my daughter used in high school even covered it, although I’m willing to bet that they spent more time on the plight of the workers and the impact on Native Americans than on what it meant to the country as a whole in terms of efficiency and economic development.

Despite my long term involvement with railroads and the fact that I’d been to Utah dozens of times to meet with PacifiCorp or Northwest Pipeline, I never once thought of going to the spot where history was made. That all changed on January 3, 2009. That was the day I was driving down Interstate 84, moving from Portland to Denver and there it was. The sign said “Golden Spike NHS Next Exit.” I immediately wanted to stop but also knew I couldn’t afford to.

I had my son Joe, my sister-in-law Claire and the cat in the car with me. We had a smashed headlight courtesy of a chuck of ice propelled from the top of a passing semi-trailer truck not long after we left Portland. We had managed to find another headlight, but had to have the shop leave it in the bushes for us. We weren’t going to make it to Boise by the time they closed and our hotel was miles beyond that. Just

blocks from the hotel, we got pulled over by a cop. He didn’t give us a ticket but did give us directions. Bottom line, we were on a quest to find a place to install the headlight and still make it across southern Wyoming in a reasonable amount of time. No time to play tourist.

Since that day, visiting Promontory Summit has been in the back of my mind.

When the Operations and Maintenance Committee made the decision to hold its 2014 conference in Park City, I jumped at the chance to make plans to visit. Since the site is only 90 minutes from Salt Lake International Airport, my planning consisted of scheduling a late flight home after the conference.

The Golden Spike National Historic Site I arrived at the site about half past noon and after pulling over to get a photo of the entrance sign, I went to Visitor Center, paid my entry fee, and hurried outside for the 1:00 PM steam demonstration.

The engines (both reproductions), the Central Pacific’s Jupiter and Union Pacific’s 119, sit facing each other on the tracks, just as they did on May 10, 1869. Behind each engine, sets of stairs and platforms allow visitors to view the inside of each engine and peak into the fuel car. I was thrilled to see the pile of coal in the fuel car of the UP 119. The Jupiter runs on wood. Up close, the engines were beautiful, with ornate details and bright colored accents. This was a bit surprising to me as I knew these engines were not just ceremonial, but were a regular part of the fleet. The Steam demonstration wasn’t much more than moving the train down a couple of tracks and back but it was fun to see the train in motion.

The site does stage reenactments on Saturdays during the summer, complete with dignitaries in full costume, but this was

Thursday. I don’t think that I missed anything though. I was almost happy that there weren’t a bunch of extra people there.

I met a nice couple from Duluth on their honeymoon. I took their picture sharing a kiss across the “last tie”. Overall the site was quite idyllic. The sky was partially cloudy but the temperature was in the high 70’s with a slight breeze. The low rolling hills were green and uncluttered. It was a perfect day for a picnic. Too bad I didn’t have any food.

After lingering around outside and taking as many pictures as I could justify of the two engines, I went back inside the visitor center. After all, I did have a plane to catch. I watched the short video that gave all the basic facts and history and looked at the handful of displays including a replica of the golden spike. The display area was about the same size as the small gift shop, so in the span of 15 minutes, I was done with both. While I’d seen everything there was to see, I was reluctant to leave. Maybe it was the sense of history I felt there, maybe it was the awesome day, or maybe it was because I was flying Frontier. I guess I’ll never know.

What I do know is that in retrospect I wasn’t all that educated about what happened before and after that historic day just north of the Great Salt Lake. What follows is a brief review of the facts.

The Part Everyone “Knows”

At noon on May 10, 1857, with the Central Pacific’s Jupiter and the Union Pacific’s 119 facing one another, just feet apart, a ceremonial gold spike was tapped into a special laurel wood tie with a silver plated spike maul creating the Pacific Railroad and for the first time physically uniting the United States. The Central Pacific had come 960 miles from Sacramento, California and the Union Pacific had come 1,086 miles from Omaha, Nebraska.

The low rolling hills were green and uncluttered. It was a perfect day for a picnic.

COAL TRANSPORTER | 43

Photographs were taken and champagne was consumed.

Immediately afterwards, the golden spike and other ceremonial spikes were removed and replaced with regular iron spikes and a normal tie. At 12:47 pm, the last iron spike was driven. An operator keyed in the word D-O-N-E and transmitted it to telegraph offices around the country. This was also the country’s first nationwide media event as people throughout the country were eagerly awaiting the news and were ready to celebrate. A study of photographs taken that day suggests that between 500 and 600 people were there for the actual event.

Apparently some “eyewitness” accounts were written days in advance. The interesting thing about some historical events is how things get misreported and important facts just get left

in getting the wagons out of the ruts. They were interested in building the railroad “to secure to the government the use of the same for postal, military, and other purposes.” The act was approved by President Abraham Lincoln on July 1, 1862.

Under the act, a railroad would be constructed between the eastern side of the Missouri River at Council Bluffs, Iowa and the navigable waters of the Sacramento River in Sacramento, California. The Central Pacific Railroad would build east from Sacramento and the Union Pacific Railroad west from the Missouri River. The timing of the act had much to do with the Civil War. There was much disagreement leading up the act’s passage on the where the Eastern end should be. Once Secession from the United States was declared in ten states on June 8,

out. When I was a kid, we were taught this all happened at Promontory Point which is actually 35 miles to the south. It is the southernmost point of the peninsula formed where the Promontory Mountains project into the northern Great Salt Lake and ironically, it was a factor in making this segment of railroad obsolete. More on this later.

1861 (joining South Carolina who seceded December 20, 1860), the argument was off the table.

In constructing the railroad, the UP primarily used European immigrants and Civil War vets, while the CP used a significant number of Chinese laborers.

There were plenty of dangers in addition to the construction, including disease, Indian attacks, or crossing a co-worker who was obviously out sick the day everyone had to take “violence in the workplace” training. AMC is currently airing a television series, now in its fourth season, titled “Hell on Wheels”. While mostly fictional, it portrays the life and the living conditions of the UP crews during the construction of the railroad and the caravan of casinos, dance halls, saloons, and

The “Before” Story

While the idea of a transcontinental railroad had been discussed for decades, the reality stemmed from an act of Congress entitled Pacific Railroad Act of 1862. The act contained several key features including the incorporation of the Union Pacific Railroad and a system of land grants and government loans to fund the project. Of course the government wasn’t really interested 44 | COAL TRANSPORTER

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The ornate detail of the UP 119

No fancy electronics for this engineer.

brothels that followed them as the rail moved west.

The project was subsidized by the federal government with payments between $16,000 to $48,000, plus 10 land sections (160 acres) for each mile of track laid. In addition to the land grants and subsidies, the Act granted both the Central Pacific and the Union Pacific contiguous rights of way for their rail lines. Because of these government payments, each railroad was in a hurry to lay track and as the line neared completion, their respective survey and grading crews actually passed each other on parallel paths. The government stepped in and in April 1869, all parties agreed on Promontory Summit as the spot that the final connection would be made.

Actual construction took just four years to build the lines over rivers, across plains, and through mountains. Once completed, service was advertised as The Great American Over-Land Route and the Union and Central Pacific Railroad Line. It allowed coast-to-coast travel in six days rather than six months.

The “After” Story

Actually, a complete and continuous rail connection from the Atlantic to the Pacific was not achieved in 1869. At least two rivers needed to be bridged, the San Joaquin River south of Stockton California (Mossdale Bridge completed in September 1869) and the Missouri River between Council Bluffs and Omaha (finished in 1872). Trains were ferried across the Missouri River in the interim three years. Once the Missouri River Bridge was completed, there was a 3500-mile continuous railroad connection from New York to California. In the meantime, a coast-to-coast rail link was achieved in August 1870 in Strasburg, Colorado, by the completion of the Denver extension of the Kansas Pacific Railway.

Six months after the Union Pacific and Central Pacific were linked, Promontory became just another quick stop along the 46 | COAL TRANSPORTER

Coal in the fuel tender

way. From 1902 to 1904 a new 102 mile railroad route called the Lucin Cutoff was built by-passing the Promontory location to the south. By going west across the Great Salt Lake from Ogden, Utah, to Lucin, Utah and crossing Promontory Point in the process, the new railroad line shortened the distance by 44 miles and avoided curves and grades. Once in service, main line trains no longer passed over Promontory Summit. Local service to the ranchers and communities along the line declined until all service was discontinued in 1938.

In 1942, the original line between Lucin and Corinne, Utah over Promontory Summit was pulled up and the scrap metal donated to the war effort. The event was marked by a ceremonial “undriving” of the last iron spike. The original event had been all but forgotten except by local residents, who erected a commemorative marker in 1943. The years after the war saw a revival of interest in the Promontory Summit with the first re-enactment staged in 1952. In 1957, a local historian, Bernice Gibbs Anderson, wrote to President Harry Truman that the Golden Spike site needed to be preserved and protected.

Later that year, Congress established the Golden Spike National Historic Site to preserve the area around Promontory Summit as closely as possible to its appearance in 1869. It wasn’t until the mid-70’s however, that O’Connor Engineering Laboratories of Costa Mesa, California took on the job of reproducing Jupiter and No. 119 as they were during the Golden Spike Ceremony. With only a few photographs of the ceremony, a locomotive design engineer’s handbook from 1870 and whatever other scraps of information they could find, they created hundreds of drawings and two amazing replicas over a four year period. Trucked to Utah for the final assembly, they were put into service on the ceremony’s 110th Anniversary. They had a unique ceremony of their own as they were christened with water from the Atlantic and Pacific oceans. s

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The Locomotives The Jupiter and the 119 had much more in common than just being on the Promontory Summit on May 10, 1869.

They were both built in the Northeast in 1868, both scrapped for $1,000 in the early 1900’s and both were stand-ins for the original locomotives scheduled to be at the ceremony.

In 1868, Schenectady Locomotive Works of New York built for locomotives for the Central Pacific. One of those was the Jupiter. Like all CP locomotives built before 1870, they were shipped in pieces around Cape Horn to San Francisco. At San Francisco, the engines were trans loaded to a barge and towed to CP headquarters in Sacramento where they were reassembled. They were put into service on March 20, 1869. While the Jupiter was being built in New York a mere 150 miles away in of Paterson, New Jersey, the Rogers Locomotive and Machine Works was building Union Pacific locomotives 116 – 120.

While it is hard to envision this happening to a modern day senior railroad executive, neither Leland Stanford, Central Pacific’s President, or Union Pacific Vice-President Thomas Durant arrived at

Promontory Summit as intended. Originally the locomotive Antelope had the honor of pulling Stanford’s special train.

Stanford followed a passenger train carrying sightseers to the ceremony. When the first train passed through a large mountain cut still being cleared, workmen failed to see the green flag flying from the locomotive indicated that another train followed close behind. Immediately after the train passed, workmen rolled a huge log down the cut. Around the corner came Stanford’s train which struck the log, damaging but not derailing the engine. The first train was held at the station and Stanford’s cars were coupled to its locomotive, the Jupiter.

Durant too had trouble getting to the ceremony. He was delayed for two days because of a labor dispute and then forced to switch engines when it was determined that the original engine was too heavy to cross Devil’s Gate bridge. The bridge had lost some its supports due to flood conditions on the Weber River.

Durant’s train was forced to stop in Piedmont, Wyoming, by over 400 laid off tie cutters, who had been waiting three months to be paid. Durant’s coach was chained to the siding until the payroll arrived thus forcing the ceremony to May 10. At the Weber River, the locomotive nudged the lighter coaches so that they coasted to the other side. However, the

The Spikes There were actually four ceremonial spikes driven that historic day at Promontory Summit. The most famous one, known simply as the Golden or the Last Spike, is the final ceremonial spike driven by Leland Stanford. The golden spike was made of 17.6-karat (73%) copper-alloyed gold, and weighed 14.03 troy ounces (436 g). It was dropped into a pre-drilled hole in the laurel ceremonial last tie, and gently tapped into place with a silver ceremonial spike maul. The spike was the brainchild of David Hewes, a friend of Stanfords. It had been manufactured especially for the event by the William T. Garratt Foundry in San Francisco. Two of the sides were engraved with the names of the railroad officers and directors.

Another side was engraved, “The Pacific Railroad ground broken Jany 8th 1863 48 | COAL TRANSPORTER

and completed May 8th 1869.” The date was wrong because of the UP’s two day delay (see the The Locomotives). The fourth side was engraved, “May God continue the unity of our country as the railroad unites the two great Oceans of the world. Presented David Hewes San Francisco.” The top was simply engraved, “The Last Spike.”

Before the last spike was driven, three other commemorative spikes had been placed.

1. a second, lower-quality gold spike, supplied by the San Francisco News Letter was made of $200 worth of gold and inscribed: With this spike the San Francisco News Letter offers its homage to the great work which has joined the Atlantic and Pacific Oceans.

train was now without a locomotive (I guess some things never change). The Number 119 was dispatched from Ogden and completed Durant’s trip to Promontory.

After the ceremony, Jupiter continued service as a Central Pacific passenger locomotive. In 1885, Central Pacific was absorbed into the Southern Pacific Railroad system. The Jupiter name was dropped in the 1870s when the locomotive was repainted, and in 1891, her number was changed from No. 60 to No.1195. In 1893, No. 1195 was converted into a coal burning locomotive and was sold later that same year to the Gila Valley, Globe and Northern Railroad in Arizona. Being the first locomotive on their railroad, the GVG&N renamed her No. 1. The locomotive ran on the Globe until the early 1900s when she was scrapped for $1,000. The Union Pacific No. 119 continued service as a freight locomotive. In 1882, she was renumbered No. 343 and served out her days until scrapped in the early 1900s. s

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2. a silver spike, supplied by the State of Nevada; forged, rather than cast, of 25 troy ounces (780 g) of unpolished silver.

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3. a blended iron, silver and gold spike, supplied by the Arizona Territory, engraved: Ribbed with iron clad in silver and crowned with gold Arizona presents her offering to the enterprise that has banded a continent and dictated a pathway to commerce.

The Gold Spike, Nevada’s silver spike and the silver plated maul are displayed at Stanford University’s Cantor Arts Center in Palo Alto. The Arizona silver spike ended up in the collection of the Museum of the City of New York, and was on loan for a time to the Union Pacific Railroad Museum in Council Bluffs, Iowa. If you check both museum websites, neither mention it, so not really sure where it is today. What happened to the second gold spike is a mystery. There are several theories out there on the internet. The laurel wood tie was said to be in the San Francisco offices of the Southern Pacific and lost to fire following the 1906 earthquake. s

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Calendar of Events 2014

2015

Summer/Fall 2014 Presentation of NCTA Scholarship Awards: South Dakota School of Mines & Technology University of Arizona University of West Virginia University of Wyoming David L. Laffere Scholarship Three Member’s Children Scholarships

January 28, 2015 Advertising and Editorial Deadline for Issue 1 2015 of the Coal Transporter Magazine

July 8, 2015 Advertising and Editorial Deadline for Issue 2 2015 of the Coal Transporter Magazine

January 30, 2015 Payment of Annual Membership Dues

September 14-16, 2015 Forty-First Annual Business Meeting and Conference Grand Hyatt, Denver, Colorado

September 15-17, 2014 Fortieth Annual Business Meeting and Conference Westin Denver Downtown, Denver, Colorado

April 26-29, 2015 Spring General Conference Wigwam, Litchfield Park, Arizona June 8-10, 2015 Operations and Maintenance Conference Pinehurst Resort, Pinehurst, North Carolina

December 20, 2014 Receipt at NCTA office of all re-certification forms for the UMLER Fee Waiver for Calendar Year 2015

Pinehurst Resort, Pinehurst, North Carolina

Grand Hyatt, Denver, Colorado

50 | COAL TRANSPORTER

Wigwam, Litchfield Park, Arizona

BY: Gregory H. Boyce, Chairman and Chief Executive Officer of Peabody Energy

Changing the ‘Fate’ of 3.5 Billion with Energy Access from Coal

A

ccess to modern energy is the building block for human progress and economic development, offering a gateway to longer, healthier, more satisfying lives. Yet as we approach the 2015 U.N. Millennium target for halving extreme poverty around the world, there is enormous work to be done.

As many as half the world’s 7 billion people live without proper energy access for the most fundamental needs: education, healthcare and importantly, the standard of electricity access in developed nations that all people everywhere deserve.

The effects of energy poverty are as shocking as they are widespread: About half the children in the developing world attend school with no electricity. An estimated 1 billion people receive sub-standard care in health facilities because medicines and vaccines aren’t kept cold. Billions awaken each day to the sole task of foraging for wood, biomass or dung for fuel to cook meals or

52 | COAL TRANSPORTER

heat dwellings, a load that falls heaviest on women and children.

One woman from India’s Andhra Pradesh captures the prevalent view in her village: “A woman’s fate is to carry these burdens… our life is meant for this alone.”

From the hunt for fuel to the smoke from daily fires, energy poverty results in staggering consequences. By some estimates, each hour of exposure to indoor fire has the same effect of exposure to 400 cigarettes. Debilitating illness results. Lives are lost prematurely. Quality of life is sorely diminished.

Tragically, household air pollution from indoor fires is estimated to be the fourth leading cause of death in the world.

It results in a stunning 100 million years of life prematurely lost each year, based on Disability Adjusted Life Years (DALY), a metric established by the World Health Organization. Each DALY represents one year of healthy life lost to disease.

I submit that we cannot continue to allow these conditions

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to persist. The greatest human and environmental crisis we face is this crisis of energy poverty. Solving the problem doesn’t require research. It doesn’t require a miracle medical cure. But as leaders in energy, industry, policy and government, it requires our will.

Alleviating energy poverty in the developing world must be job one. Once we solve the issue of global energy access, other goals for society become far more possible.

Consider the success story of Thabo Molubi, a skilled craftsman, who makes his home in South Africa’s outback known as the veld. Living without electricity, Thabo carved out a modest income as a furniture maker for 16 years, though his productive day always ended at sunset.

So when an electrical line reached the veld, everything changed. Thabo and his business partner embraced technology.

They installed lights, and used power saws and drills in their shop. Productivity quadrupled, product quality improved and they expanded the business, hiring local workers. Access to energy was transformative for Thabo’s life and his livelihood, just as it is for tens of millions of people who are leaving grinding poverty behind and entering a new global middle class.

These statistics for the developing world paint a vivid picture, although the face of energy poverty is also evident in the developed world where access to low-cost electricity remains essential. Here, too, the choices are tough, with families wrestling with decisions between buying food or paying for heat. In the United States, some 48 million Americans live in poverty. A record 115 million qualify for energy assistance and more than half of Americans have said that as little as a $20 increase in utility bills would cause hardship.

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Solving Energy Poverty With an “All of the Above” Strategy Led by Coal The need for affordable energy access is undeniable, and the call to action urgent. Peabody’s Advanced Energy for Life Campaign is squarely aimed at advancing solutions by building awareness and support to eliminate energy poverty, increase access to reliable, low-cost electricity and improve emissions using advanced clean coal technologies.

We believe this multi-faceted campaign will improve understanding and ultimately drive actions and policies that will extend lives, build economies and improve the environment both indoors and out. How do we get there? Through an “all of the above” energy approach. We need more solar and wind power, more nuclear and hydro, more natural gas and oil, and above all, far greater use of coal, the world’s fastest-growing major fuel.

Peabody favours a plan that calls for half of new generation to come from high-efficiency supercritical coal plants that can achieve a key emissions rate that is two-thirds that of the existing U.S. fleet. Even the carbon dioxide emissions rate is 25 percent lower than the oldest U.S. plants. Each large supercritical plant delivers the equivalent carbon benefit of removing 1 million cars from the road. And an unprecedented 550 gigawatts of these advanced coal plants are in use or development around the world, with the vast majority being funded and built in emerging Asia.

Next on the plan to advance energy solutions, we favour deployment of today’s coal conversion technologies that use coal to produce liquid fuels and synthetic gas.

Finally, longer term, continued investment is needed to advance technology toward next-generation applications that ultimately will generate coal power with virtually no emissions, and this includes carbon capture and storage technologies for various uses.

Notably, this combination of advanced coal and coal conversion technologies achieve an environmental improvement that is well beyond what the carbon policy experiments of recent years have failed to deliver.

As we look to the future, we must work together to create energy solutions that drive progress toward a rise in global living standards, improved education and better health as we work to narrow the income gap.

Our journey is long, and begins with a single step. Let’s take that step today. We cannot allow any human being anywhere in the world to assume their ‘fate’ amounts to little more than scavenging for fuel to cook and heat.

Together, we can end the most challenging human and environmental crisis we face if we are willing to work with allies across all sectors, with multinationals, non-governmental organizations and governments all over the world. Let’s work to create a new beginning for the 3.5 billion that starts with energy access from coal.

Learn more at AdvancedEnergyForLife.com. s Greg Boyce is Chairman and Chief Executive Officer of Peabody Energy, the world’s largest-private sector coal company and a global leader in sustainable mining, energy access and clean coal solutions.

This article was first published in the July 2014 issue of World Coal Magazine.

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Logistics -

Cost or Profit Contributor?

BY: Dennis Wilmot, President & CEO, Iron Horse Logistics Group

P

roponents of capitalism allege that this economic system is the most successful of all based on one very simple focus and motivation—profit. Those who question and even oppose capitalism claim that in the 21st century corporations’ drive for profits at the expense of everything else is unlike past centuries and progressively getting worse. “Nowadays the rage for possession has got to such a pitch that there is nothing in the realm of nature, whether sacred or profane, out of which profit cannot be squeezed.” No, this was not quoted from a recent newspaper, newscast, blog or tweet. This was penned five centuries ago by the Dutch humanist, Desiderius Erasmus. If the focus for corporations is profits, then why do most companies find sustainable profitability so challenging today, and what solutions are available to return to profits?

Has profitability really declined in recent years? Consider a few facts about the metals industry, one bellwether market on which to gauge the economy and a major consumer of coke derived from coal.

• The metals industry’s share of the GDP has been on a steady decline since the late 1990s – falling 33% between 2000 and 2012. 1 • According to IBIS World report, the metals industry was one of the greatest victims of the global economic crisis, resulting in 22% of all jobs lost and almost 50% of all revenues vanishing. 2 • Just 19% of metals companies reported thriving in 2013.3 • In 1980, the U.S. produced 173% more steel than China. Just 30 years later, China produced an astounding 707% more than the U.S.4

What can today’s corporations do to develop more profitability? As companies struggle to overcome seemingly insurmountable obstacles, eliminating inefficiencies and boosting the bottom line has never been more important.

Controlling costs has always been a major goal of any company; today it has reached monumental concerns.

One of the biggest costs corporations seek to minimize is labor.

Labor-related costs have gone up 67% since 2010, and 93% expect additional employee costs in the near future. 5 The average age of a metal worker, truck driver, and likely many other industries, is 54.

As many as 75 million workers (Baby Boomers) are on the verge of retirement! Class I rail carriers have often cited the “age gap”, where, along with most manufacturing industries, there is a vacuum of workers trained and experienced to assume the roles of those retirees. Yet corporations including rail carriers, energy companies, and more, continue to offer early retirements to reduce costs in an effort to produce that desired profit. How can a business generate

Controlling costs has always been a major goal of any company; today it has reached monumental concerns.

56 | COAL TRANSPORTER

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efficiency when replacing its most experience resource with those still in their learning curve to efficiency?

Energy costs have been a glaring issue for the past four decades. Over the past 20 years coal prices jumped by 74% and crude oil prices increased by a staggering 532%. By 2030, experts estimate that natural gas prices will jump 42% and electricity prices will go up by 33%.

6 The recent discovery and development of an unforeseen boom in energy resources generated from the Marcellus and Utica Shale natural gas deposits has already had a huge impact on the energy industry while creating entirely new

order to gain a competitive advantage.8 Unless the most cost-effective means are deployed to move raw materials into plants and to ship products to customers, the core business itself is unsuccessful.

47% in the metals industry commonly experience major or minor delays in the supply chain and have problems with supplier delivery time. This number jumped 27% between 2009 and 2012. 9 What steps should be taken to minimize the growing costs of transportation?

A majority (57%) of global companies say that optimizing transportation is central to achieving operational priorities.10 Unfortunately, optimizing

Over the past 20 years coal prices jumped by 74% and crude oil prices increased by a staggering 532%. By 2030, experts estimate that natural gas prices will jump 42% and electricity prices will go up by 33%. markets for rail carriers. Possible political action, including that of the Environmental Protection Agency, could change the trajectory of the entire industry.

The always unstable Middle East, which continues to develop most recently into becoming more unfriendly to the United States, presents another very significant unknown for the future of energy.

Controlling these costs will continue to be a major focus of most corporations, but one with the potential for more sudden change than most other costs. What components of the full product cycle are impacted by energy costs and should be addressed accordingly?

Transportation costs overall have risen 85% just since 2011!7 Fully 97% of global companies say that they would like to optimize their supply chain in

transportation is easier said than done.

Anyone who drives on roads and highways in America knows how deteriorated they are, and that the cost to repair them is astronomical. When done right, rail transportation is the most efficient and cost effective means of freight transportation. Average U.S. freight rail rates today are the lowest in the world — lower than Russia and China and less than half those of most major European countries. The resurgence in rail shipping, and in the profitability of rail carriers, along with the facts stated above, suggest rail should be a key component of any strategic plan for business.

Railroading has its challenges. In a world of acronyms a working knowledge of the AAR, ARCI, ASLRRA, DOT, FRA, NTSB, ORER, RSI, STB, and

1

Source: Gross-Domestic-Product-(GDP)-by-Industry Data, Bureau of Economic Analysis, 2013.

2

Source: IManufacturing employment hard hit during the 2007–09 recession, Megan M. Barker, 2011; BIS World Report; Global Metals Outlook, KPMG, 2013

UMLER (to name a few) is essential.

What does a shipper do with carrier capacity shortages? Railcar supply shortages? Hidden costs and charges?

Unabsorbed switching? Overloads? In fact, the #1 fear supply chain professionals report is that they lack the right knowledge or understanding of the process to succeed.11 If the primary goal of all corporations is profits, which are becoming progressively more difficult to obtain and sustain, and cost control of labor, energy, and transportation are among the top targeted for control, what solutions are available?

1. Conduct a serious analysis of all transportation costs to determine possible savings.

2. Automate wherever possible to reduce costs and improve quality and efficiency.

3. Align with or engage with other businesses that are experts in that realm. The majority of companies say that partnerships, rather than in-house efforts, are the face of future innovation. 41% say that they are looking for ways to share the workload with outside companies. 46% say they want to outsource their transportation management.12 s

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Obama Climate change plan: war on coal would hike natural gas prices 42 percent, Dayaratna, 2013; Annual Energy Outlook 2013, U. S. Energy Information Administration, 2013 7

Source: 2013 Manufacturing & Distribution Monitor Report, McGladrey, 2013; Mergers, Acquisitions and Capital Raising in Mining and Metals, 2013 Trends, 2014 Outlook, Ernst & Young, 2013

Source: From Customer Orders through Fulfillment: Challenges and Opportunities in Manufacturing, High-Tech and Retail, CapGemini, 2013

8

4th Annual Survey: Supply Chain Resilience 2012, Business Continuity Institute, 2012; 17th Annual Global CEO Survey, PriceWaterHouseCoopers LLP, 2014

4

Source: Crude Steel Production, 1980 – 2012, World Steel Association

9

5

Source: From Customer Orders through Fulfillment: Challenges and Opportunities in Manufacturing, High-Tech and Retail, Capgemini, 2013; 2013 Manufacturing & Distribution Monitor Report, McGladrey, 2013; Manufacturers Cite Health Care as Top Concern in NAM/Industry Week Survey, Industry Week, 2013

Source: 2011 Next Generation Manufacturing Study, The Manufacturing Performance Institute, 2011; Suppliers confident, manufacturers concerned about supply chain after being burned in the past: ASQ Survey, ASQ, 2013

3

6

Source: Sources: Cleantech Matters: Global Competitiveness, Ernst & Young, 2013; U. S. Energy Markets Summary, U. S. Energy Information Administration, 2013;

58 | COAL TRANSPORTER

10 Global Manufacturing Outlook, KPMG, 2013 11 What Drives Supply Chain Excellence, Lora Cecere and Abby Mayer, 2013 12 From Customer Orders through Fulfillment: Challenges and Opportunities in Manufacturing, High-Tech and Retail, CapGemini, 2013; Global Metals Outlook,, KPMG, 2013

Advanced Clean Coal Can Energize the World 550+ gigawatts

of advanced coal technology in use or development globally

25 percent

lower carbon dioxide emissions rate with supercritical plants versus the oldest plants

1 million

cars removed from the road = carbon benefit from each large supercritical plant

Clean, affordable electricity from coal is vital for energizing developing and developed nations. Coal powers modern living, drives the best economies and lifts hundreds of millions out of energy poverty. It is also the fastest-growing fuel, set to become the world’s largest energy source in coming years.

Today’s high-efficiency “supercritical” coal plants have state-of-the-art controls and ultra-low emission rates. Even the carbon dioxide emissions rate is 25% lower than the oldest plants. Every large advanced coal plant brings the equivalent carbon benefit of removing 1 million cars from the road.

Let’s work together to end global energy poverty and increase access to low-cost electricity by deploying advanced clean coal technology. That’s a powerful environmental solution for people and economies.

Visit AdvancedEnergyForLife.com.

Sources: Platts World Electric Power Plant Database, December 2013; International Energy Agency December 2012; and International Energy Agency “Technology Roadmap: High Efficiency, Low-Emissions Coal-Fired Generation,” December 2012.

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NCTA / Member Sound-Off

Member Sound-Off

The Coal Transporter asked members and associates to offer their opinions on a current topic in the coal industry.

T

he NCTA turns 40 this year so we surveyed members and associates on their participation in the NCTA. The NCTA is not the same organization it was 40 years ago, but its dedication to the industry it serves remains as strong as ever. Members shared some favorite memories and offered up some guidance for the future. Here are the results:

Involvement in the NCTA

Respondents were asked how long they have been involved with the NCTA and its predecessor organizations, the WCTA and ECTA. Eighty-one percent of respondents have been involved in the NCTA for 6 or more years. A surprising 23% have been around for 21 or more years.

Apparently this is no fly-by-night outfit we’ve got going here. Why do people stick around?

Well the answer to this question depended largely on which NCTA activities the respondent had been involved in. Those that only attended conferences were most likely to value the

association for the great networking opportunities as well as the general education that the conferences provide. Those that have been involved in the Operations and Maintenance Committee recognized the value the NCTA brings to help members reduce operating cost. The members involved in the Logistics and Planning Committees were most likely to credit the association for improvements in operating efficiency.

60%

50%

Favorite Venue

BENEFITS DERIVED LARGELY A FUNCTION OF ACTIVE ENGAGEMENT Benefits Derived Largely a Function of Active Engagement

40%

30%

Choice 1

Choice 2

20%

10%

0% Promoting operational efficiency

Providing information to reduce costs

Communicating with the STB

General Education

Providing networking opportunities

When taken in aggregate, Arizona made the top of the popular venue list. Some people identified a specific property and some did not. The Westin La Paloma has been the site of three Spring and one Operations and Maintenance Conference. One respondent was specific enough to identify the Spring 1986 meeting at the Westin La Paloma as their favorite venue. The Broadmoor in Colorado Springs was the favorite specific venue identified followed by the Silverado in Napa. The Coeur d’Alene Resort in Idaho was the favorite O&M venue. Denver continues to be a popular destination as the permanent home for the Fall Conference. Other venues mentioned included Hilton Head, Kansas City, Key Largo, Lake Tahoe, Palm Springs, and Las Vegas.

Maryland was mentioned in spite of the fact that the NCTA has never held an event there.

90%

80%

ACTIVE ENGAGEMENT

70%

Active Engagement

60%

Looking Back

Here’s what some of members and associates have to say about their favorite NCTA memories:

Oldest memories …

50%

“The year that Bruce Miller and Matt Levar took me to the NCTA in San Francisco. It was one of my first conferences, and one I will remember forever.”

40%

30%

Margaret Branson, Cloud Peak Energy 20%

“One of the first fall conferences I came to was in Denver in the late 1980s. The conference took place in a blizzard.”

10%

Casey Kaptur, RungePincockMinarco

0% Spring Conference

62 | COAL TRANSPORTER

Operations & Maintenance

Fall Conference

Western Logistics & Planning

Eastern Logistics & Planning

Leadership Position Editorial Contribution

Remembering the comradery …

Travel memories …

“The opportunity to meet and interact with all of the various members and guests who have been part of the coal chain over the many years I have been attending the conference. I started attending the Fall meeting in 1978 and have only missed one since then and have seen the organization evolve from a Utilities vs. RR focus to a problem solving organization for its members.”

Gary Vontz, National Car

“Mike Shaw’s roasting at his last NCTA meeting before he retired, in Denver, CO. Why? The comradery and nothing is sacred attitude all involved displayed. It demonstrated the work hard play hard approach that I appreciate in a cross-industry association.”

John Mayer, AECI

“Many fond memories of Washington DC Board meetings. The summer temps were often sweltering. Interesting cab rides. Being lost and running late. Data overload from the “big cheese” luncheons. But the comradery was special as the Board worked to advance the industry & resolve common transportation issues.”

Ken Brockway, Florida Power & Light

Riding the rail memories …

“Train ride in Durango, Colorado.”

“Taking the wine train in Napa.”

Jerry Solt, WHEELWORX, LLC

“From a business standpoint, my favorite memories are when NCTA springs into action on emerging issues such as coal dust. From a personal standpoint, I remember a beautiful evening out on Lake Coeur d’Alene spent with colleagues (and my lovely wife)!”

Dave Wanner, Wisconsin Public Service Corporation

“Beyond a doubt the Spring conferences and their locations. Where else could a lowly country boy like me get the opportunity to take his wife to some of the finest resort settings in the world for a 4-5 day stay?”

Dan Fleming, Western Farmers

“Golfing at LaPlaya.”

David O’Neil, DLO and Associates

Appreciation for our Fearless Leader …

“Tom Canter as the patriot leader we’ve needed the last few years.

Great programs for all views.”

Darrell Dial, Global One Transport, Inc.

“When Tom Canter became the Executive Director. Second favorite memory was when WCTA changed to be the NCTA..”

Jack Reid, Seminole Electric Cooperative

Michele Fujimoto, Colorado Springs Utilities

COAL TRANSPORTER | 63

Involvement with NCTA “One cannot look back without remembering Tom as CoalTar the Magnificent. Working with Tom has been such a great experience.

He has such a talent in connecting with people.”

Pat Scherzinger, NCTA

INVOLVEMENT WITH NCTA

0-5 years 19%

21+ years 23%

And we are still making memories …

21+ Years 23%

“The dueling piano session from the O&M June 2014 at Park City.”

0-5 Years 19%

John Jennings, Lexair, Inc

Looking Forward

16-20 years Comments on moving forward generally fell in one of two camps. Many 16-20 years 7% members are rightfully concerned about the future of coal given the cur7% rent political climate and want to make sure that we as an Association lend out support for the cause.

11-15 years 12%

“Advocacy for the Coal/Railroad/Utility industries. America needs to know how important coal is to the nation.”

6-10 years 39%

Dan Appelbaum. Peabody COALSALES 11-15 years

12%

“Preserving coal as an option for electric generation.”

6-10 years 39%

Dave Wanner, Wisconsin Public Service Corporation

“The question always comes down to is NCTA just a social organization or is there some other mission. Sometimes it isn’t clear. Funding is a limiting factor on the reach of NCTA but also there is questions as to how far the membership is willing to go in addressing industry issues of concern under the NCTA umbrella.

I would stress to the members of NCTA that they have some obligation to provide leadership to the industry that employs them and that means more than just being part of an organization for social purposes. They need to work on solutions through leadership on those issues that have the greatest impact on the customers they serve regardless of the industry whether mining, utility, etc. They owe it to the industry that employs them.”

Duane Richards, Western Fuels Association

“Environmental pressure to close coal plants will also continue.

Consumers are the ones that will suffer when gas prices start to rise; how to get the public utility commissions and consumer advocacy groups more involved is something we need to explore.”

Michele Fujimoto, Colorado Springs Utilities

“Increased participation from federal officials to raise awareness on how valuable coal transportation and fuels are to America.”

Jim Owens, Strato

Another group highlighted the work that continues to be important to members with respect to transportation. After all, Coal Transportation is our middle name.

“How to get the railroads to work closer with the customers, the utilities.”

Darrell Dial, Global One Transportation, Inc.

“Increasing membership attendance at the conferences.”

Kevin Johnson, Nebraska Public Power District 64 | COAL TRANSPORTER

“Increasing competition and efficiency between the two joint line rail roads.”

Trevor Pettus, Ameren Missouri

“Having Class I’s give their thoughts and directions of the modern railroad to technology, cost, and time of implementation. Also further rule changes to inspection and cost of wheel sets...a costly item for coal handlers.”

Jerry Solt, WHEELWORX, LLC

“Continuing O&M and L&P meetings which will become more important as railcar fleets age and transportation issues become more complex, work on building a more constructive relationship with railroads and, where applicable, barge lines.”

Dan Gray, Entergy

“Rail congestion is a current problem, but the war on coal may help resolve it, to the detriment of the economy and ultimately the rate payers.”

Ben Wetherill, Western Farmers Electric Cooperative

“Talking about issues is great, but allowing the various committees to develop ideas/language/templates without getting neutered would be a step forward. I personally am one who favors action with mistakes and regrets, then inaction with no appreciable results.”

John Mayer, AECI

“Building a new relationship with the railroads and finding it in NCTA’s mission to train the new up and coming fuel buyers and transportation logistic people.”

Jack Reid, Seminole Electric Cooperative

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Reflections / Steve Behn

Steve

40+ Years of

Railroading 66 | COAL TRANSPORTER

S

teve Behn was born in New Richmond, Wisconsin on October 15, 1951, the second child of Charles and Alice Behn.

Although he was born in Wisconsin, his parents actually lived an hour away in Minneapolis and he lived there until he was five. In 1954, the family moved to Duluth where his mother worked for the advertising and public relations firm Westmoreland Larson and Hill and his father worked in various sales fields from insurance to home alarm systems.

One of Steve’s early childhood memories was being a proud fiveyear-old owner of a barely used steel pedal car. His mother bought it for him because when she was growing up “all the rich kids” had them.

Even at that age it was clear he was destined for a career in equipment management. His mother was a bit disappointed that all Steve seemed to want to do with it was wash it in the driveway!

Steve’s maternal grandfather, Chris Karlsrud, worked for the Chicago, St. Paul, Minneapolis and Omaha Railway (Omaha Road) in various

Behn positions, eventually becoming the Station Agent in New Richmond.

So much freight and passengers moved by rail in those days, Station Agents were looked up to and well respected especially in small towns.

Steve’s grandparents lived very close to the depot and Steve remembers lying in bed and hearing the whistles and sounds of the passing trains and often walking to work with his grandfather when they visited.

“He knew most of the train crews and I remember they would take me up in the locomotives while the train was in the station.”

Steve’s grandfather suffered a stroke in 1959, the same year his parents were divorced. He was forced into early retirement but went on to teach telegraphy at the Duluth Area Vocational school. He had a profound impact on Steve’s life at a time when his own father’s daily involvement diminished and was more limited to family outings including winter ski trips and fishing and water skiing at the cabin.

Steve was only 12 when his grandfather passed away but Steve quickly became the man of the house for his mother, sister, and grandmother.

One of Steve’s early childhood memories was being a proud five-year-old owner of a barely used steel pedal car.

UL - Steve with his grandfather, sister, and his dog “Queenie”.

UR - Steve’s grandfather (second from left) with a train crew at a stop in New Richmond.

LL - Steve proudly wearing his cub scout uniform and waving the flag.

LR - Charles Behn served in the Coast Guard during WWII.

The (I) Wonder (Why I’m in School) Years

Steve attended Duluth Central High School, graduating in 1969. Following in his sister Cheryl’s (aka Shari) footsteps through all the same schools was not always easy for Steve. “She was a model student and me, not so much. Since our last name was somewhat unusual, I was generally greeted each new school year with ‘are you Shari’s brother?’ This would often turn into ‘you are NOT Shari’s brother!!’ by year’s end.” Apparently not having learned this lesson in high school, he also followed Shari to the University of Minnesota Duluth where she had breezed through in 4 years and embarked on a long teaching career in the Duluth schools. After two years of taking general education courses, with the enthusiastic support academic counselors’ office, Steve decided to move on.

Steve worked several jobs during and following college including stints as a gas station attendant (when attendants still checked oil, tires and washed windows in addition to pumping the gas) and loading trucks for a frozen pizza company. He also worked as a courier for the advertising and public relations firm

where his mother worked. In those pre-internet days, news releases, photos and stories had to be hand delivered to the various TV and radio stations.

The First Railroad Years

Steve’s first railroad job was a summer position on the Duluth Winnipeg and Pacific Railway. His worked on the ballast gang along with a crew laying ribbon rail between Warroad and International Falls, Minnesota. Walking alongside the ballast cars, opening the doors, dumping the ballast on the skeleton track behind the rail gang left him in a perpetual cloud of dust.

When the empty ballast cars were returned at the end of the day, the crew had to close the doors using a 6’ lining bar, crushing granite in the doors in the process. Showers at the end of the day were a bucket of cold water in the shower car or a dip in 50 degree Lake of the Woods. “We did have our own cook and dining car. One evening we had pork chops for dinner and on some days it was necessary to take bag lunches if we were going to be a long distance from the cook car. Lunch the next day was a pork

“One evening we had pork chops for dinner... Lunch the next day was a pork chop sandwich.... complete with the bone between 2 slices of bread!”

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“Copy 3 Carlton” When copying train orders, the dispatcher would instruct the operator how many copies to make (using carbon paper) which the operator would repeat back. It was generally 3 copies, one for the conductor, one for the engineer and one station copy.

chop sandwich....complete with the bone between 2 slices of The Post-Tower Years bread!” The work was hard and the hours were long, but by the In 1976, the towers were beginning to be phased out, but Steve end of the summer, Steve was in the best shape of his life. landed a promotion to Train Dispatcher in Superior, Wisconsin.

Steve had several friends working for the railroad as tower The selection process included a 100 question written exam and operators. After visiting them on the job a few times, he quickly an all-day oral examination so it was a proud moment to pass discovered that he wanted to work for the railroad too. Towers and be promoted. Dispatching trains was still being done with once served as the operational hubs throughout the rail system, pen and paper with very few automated systems in place at the and kept the railroad moving. He jumped at the chance when time. After his promotion, Steve’s grandmother Laura told him the former BN offered him a position in how proud his grandfather would have September of 1972. As a train order opbeen as he felt train dispatchers were erator working in various towers across such an integral part of railroad operaMinnesota and northern Wisconsin, tions. It was a job he thoroughly enjoyed Steve copied train orders and handed and looks back on now as one of his them up to passing trains, switched favorites trains from track to track aligning Steve was promoted in 1979 to his them to reach their ultimate destinafirst exempt position as Supervisor Train tion. While the telegraph was no longer and Power Operations in the Operations required and phones had replaced Control Center in St Paul, Minnesota. them for official communications, the The control center was commonly telegraph keys remained in the towers referred to as the “War Room”. Each and were used by some who still knew locomotive, train symbol, and caboose Morse code. was depicted by a magnet. These mag“I remember a visit to the railroad nets were used on a 55 foot metal board museum in Duluth not long after the containing a schematic of the railroad. towers began closing in the late 70’s The railroad was divided into four terriand early 80’s and seeing many of the tories, each with its own Supervisor. The phones, telegraph keys, train order “trains” were pushed across the railroad hoops and equipment I had been using from territory to territory with magnets added and removed as locomotive and being displayed and thinking, geez, I am not that old.” Having lived through consists changed. a part of it, Steve was pleased when the New acquaintances Laurie and new BNSF headquarters in Fort Worth, The Happily Ever After Years Steve in 1980 constructed in 1997, was designed to The move to St. Paul proved to be a good one for Steve, not just because of the job, but because he include the history of the railroad. For Steve, the museum in met his future wife Laurie there in 1980. Laurie was a speech the welcome center, the paintings, and documents displayed pathologist teaching in the junior and senior high schools in throughout the building were always a joy to share with visitors.

70 | COAL TRANSPORTER

After only a year in Overland Park, Steve and Laurie moved to Fort Worth, Texas where Steve became the Supervisor of Coal and Taconite Operations working for Don Hogenson. nearby Elk River. They met at a party at her house where she was living with two other teachers. Steve was invited by one of her roommates who knew him from Duluth. While Laurie didn’t know Steve before the party, she’d heard about him and was intrigued. Apparently, Steve had dated a girl in Duluth that was now dating a guy she worked with. Laurie was also looking forward to meeting the girl’s brother who had also been invited.

While it sounds a bit convoluted, a singles party was just the 80s version of “match.com”.

The party was a success and Laurie got calls from both the girl’s brother and Steve after the party. Steve was the first to call and ask her out. They were married in 1982 in St Paul. Laurie went back to teaching but that was short lived due to a series of successive moves that made maintaining her teaching credentials and meeting state specific requirements unrealistic.

The Overland Park to Fort Worth and Back Again Years The Operations Control Center was moved from St Paul to Overland Park, Kansas in 1983 and the low tech magnets were replaced by a computerized system known as CAPMAC (Computer Aided Power Management and Control). Gone were the

days when locomotives went “missing” because they had fallen off the board into the cuff of the Supervisor’s pants.

After only a year in Overland Park, Steve and Laurie moved to Fort Worth, Texas where Steve became the Supervisor of Coal and Taconite Operations working for Don Hogenson.

There were a number of utility people that Steve met in those early years that were also still around when he retired. Dennis Wanless was one of the very first people he talked to. Nancy Chen, Ron Boro, and Bob Sarvela (then with MP&L) were also folks he met early on. “It was a pleasure to work with them over the years and be a part of the growth of an industry that became such an integral part of our company and nation.”

In 1986, the Coal and Taconite Operations Group was split from Coal Marketing and reported to Transportation in Overland Park so Steve and Laurie moved back to Kansas.

Laurie was “retired” from teaching but was exploring other options. Much to Steve’s delight, one of these options was cooking classes. Steve worked shift work in the control center which included a 4am to noon shift on the weekends. He was promoted to Manager North Corridor and Taconite Operations in 1988.

The Innovative Years

In 1993 the Overland Park offices were consolidated with the

COAL TRANSPORTER | 71

“Life slows down?” Between the cabin in Wisconsin (left), a new toy for the lake (right), at home in Texas (above) and a couple of time shares (in Palm Springs below) life for Steve and Laurie seems as busy as ever. main headquarters in Fort Worth and the Behns moved from Overland Park to Fort Worth for the final time. Steve held various positions within the coal group for the next decade from Supervisor to Manager to Director with increasing responsibilities and staff.

There were many changes over the years from regulatory, to mechanical, to operations, to being a part of that was exciting.

The Staggers Act of 1980 ending tariffs and allowing contracts, the advent of aluminum railcars, the 1991 adoption of the 286k gross weight on rail standard, AC locomotives and distributed power were all huge drivers to railroad operations. Steve was also involved with a variety of tests and “experiments” over the years including the painting of aluminum railcars in an effort to reduce freezing; 5 pack coal cars designed to reduce in-train forces; the Trough Train; lighter composite materials; coal car covers; ECP brakes; 315k gross weight on rail; and expansion of the joint line. These all presented challenges and allowed Steve to work with a varied group of internal departments, vendors and customers.

One of the unique challenges Steve faced was that much of the equipment he was tasked with managing was not even owned by the BNSF but by its utility customers. The contract provisions specific to each customer had to be considered so a close relationship with Coal Marketing was essential. Although it wasn’t always the case organizationally, Steve felt that the best results were achieved when his group was physically located with the Coal Marketing Group while structurally reporting to the operational part of the railroad.

Steve was proudest of the work he did on enhancing the NCTA coal 72 | COAL TRANSPORTER

forecasting process and developing the coal forecasting tool. He was respected by the utility customers because of the effort he made to balancing and communicating their requirements as well as the railroads.

For many years, Steve promoted a spare car “pooling” plan that had the potential for huge productivity gains for both the railroads and car owners if properly managed. By pooling the spares, the overall spare requirement would be lower, saving participating utilities capital and lowering storage costs. Operationally, the ability to take the first available car rather than a specific customer car as a spare would have helped to maximize train size and reduce train dwell times. While the idea had some enthusiastic support among private car owners, others were less trusting of the railroad and he was never able to successfully implement the idea. Other innovative ideas, specifically some stockpile management plans, did get put in place.

The Retirement Years

Steve retired from the BNSF in June of 2013 and is thoroughly enjoying it. Steve says, “It is not so much having time to do more, as it is to have time to enjoy more what you are doing.”

Steve and Laurie are splitting their summer between Texas and their cabin in Wisconsin. This also allowed them to spend more time with Steve’s 92 year old mother who still lived in Duluth. Unfortunately she passed away July 21, 2014. All of us at the NCTA send our thoughts and prayers to the Behn family during this difficult time.

Steve’s family has owned property on Pine Lake in New Auburn, Wisconsin since the 1920’s after his paternal grandfather came across the lake while fishing with friends. His grandmother fell in love

with the lake when he took her there so they purchased some property and built a small cabin using used lumber from a sugar beet factory. Through the years the families grew and by the mid-80s, the small cabin and the sparse few warm months in northern Wisconsin were being shared with 16 aunts, uncles, and cousins. In 1987, Steve and Laurie teamed up with Shari and her husband, Allan, to build a new cabin on property next to the original. Shari who retired from teaching in 2001, passed away in 2004 from breast cancer, so it has been mostly just Steve and Laurie since then.

Unable to use the cabin very often while working full time, it was a high priority in retirement. They purchased a pontoon boat the first month and enjoy touring around the lake in the evenings. They have renewed friendships with people on the lake, some of which Steve has known since childhood, and are getting more involved in the Pine Lake Association’s planned group activities such as pontoon floats,

picnics, lunches and joint efforts to repair and maintain common areas, roads and paths.

Laurie is very active in genealogy research. She has traced her ancestry to the Mayflower and currently serves as the state historian for the Society of Mayflower Descendants in the State of Texas. In this role, she helps others to confirm their lineage and file the necessary paperwork to become part of the Society.

She is also involved in the Daughters of the American Revolution both at the chapter and state level.

While Laurie works on genealogy, Steve works in the yard and enjoys the fruits of his labor on the back patio with his morning coffee and newspaper. Travel plans include a return to their honeymoon spot in Hawaii next year and relaxing at their time shares in Cancun and Palm Springs. Steve highly recommends retirement life and after focusing for forty years on keeping things moving, he truly appreciates the chance to stop and smell the roses. s

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The View from the Caboose

THE VIEW FROM THE CABOOSE

By Pete Moss & Ann Thrawsite

Ann: Oh my. You are the last person that I ever expected to run into at a Hallmark store. What are you doing in here Pete?

Pete: Well, I was next door at City Sliquors picking up some 40-year-old Glenfiddich. Since the NCTA has an anniversary coming up, I just popped in to get a card.

Ann: That is so sweet, getting a card to go with your gift. I think I’ll call you Sweet Pete from now on.

Pete: No lassie, pleeeease don’t do that. Besides, the card is the gift.

Ann: I suppose that shouldn’t surprise me.

Pete: Don’t get all high and mighty with me missy. What did you get?

Ann: Er… still thinking about the perfect gift. But I do plan on being in Denver in September to be part of the celebration.

Ann: More like - loose screw.

Pete: Now be nice. Like my friend Glenn’s mom used to tell him, “just because you’re different, doesn’t mean you are defective.”

Ann: If he the same guy that requested My-Ding-a-Ling from the dueling piano guys at the Operations and Maintenance Conference dinner, then I can totally see why you two are friends.

Pete: I do have a lot of friends at the NCTA. It is a great organization and everyone treats me like family. I’ve already registered and have my room at the Westin for the conference. Last time I was too late to get into the room block and I’m not letting that happen again. When I was wandering back to the place I ended up staying, I came face-to-foot with a giant bear. It was peeping in windows. I thought it was looking for dinner so I ran like crazy.

Ann: Was it blue?

Pete: What do you know, Celebration is my middle name.

You know I’ll be there.

Pete: So what if it was? It was a blue bear, not a pink elephant, if that’s where you’re going.

Ann: I hear they are inviting some of the past Presidents and committee folks that have helped make the organization what it is today. They’ll also have some surprise mementos to give away and, of course, have their usual great program.

Ann: It was art.

Pete: You know that since the NCTA is 40, it should invite some fellow 40 year-olds like Victoria Beckham and Kate Beckinsale. Now that would be sweet.

Ann: No silly, it’s public art. You stumbled by the convention center where that piece of art is located. It is a 40 foot blue bear called “I See What You Mean”

Ann: Sure and invite Christen Bale in his Batman suit for me since he just turned 40. I don’t know where you come up this stuff Pete.

Pete: Well, I can see Denverites have weird taste in art. That horse at the airport always gives me the stink eye.

Pete: Creative imagination?

Pete: Denver lets a bear named Art wander all over town freaking people out!

Ann: Poor Pete.

Have something to say to Pete?

Send comments or questions to pete@nationalcoaltransportation.org COAL TRANSPORTER | 75

NCTA Membership List A. Stucki Company AKJ Industries Alliance Coal, LLC Alliant Energy Corporate Services Alltranstek LLC Alpha Coal Sales Co., LLC Alpha Products, Inc. Ambre Energy North America Ameren Missouri American Electric Power Amsted Rail Appalachian Railcar Services Arch Coal Sales, Inc. Arizona Electric Power Coop.

Arizona Public Service Arkansas Electric Cooperative Associated Electric Power Cooperative Associated Terminals LLC Basin Electric Power Cooperative Blackhawk Mining, LLC Bosch Rexroth Corp., Pneumatics Bowie Resource Partners CANAC, Inc. CDG Engineers, Architects, Planners CIT Rail City Utilities of Springfield Cleco Cloud Peak Energy Colorado Springs Utilities CONSOL Energy Inc. Constellation Consumers Energy Company Cooper T. Smith CPS Energy Crown Products

Dairyland Power Cooperative The David J. Joseph Company Detroit Edison Duke Energy Dynegy, Inc. Ecofab Australasia Ellcon-National, Inc. The Empire District Electric Company Energy Publishing, LLC Enserco Energy Entergy Services, Inc. Exponent, Inc. First Union Rail FirstEnergy Florida Power & Light Company FreightCar America GATX GE Rail Global One Transport, Inc. Grand River Dam Authority Great River Energy The Greenbrier Companies Hall St. Coal Terminal Helm Financial Corp.

Hendricks River Logistics Heyl & Patterson iIRX Jim Walter Resources, Inc. Kansas City Power & Light KCBX Terminals Co. Kiewit Mining Group Inc. Kinder Morgan Terminals Lexair, Inc. LG&E and KU Energy Locomotive Service, Inc. Lower Colorado River Authority

Luminant Energy Macquarie Rail Inc. MARK XVI Supply Chain Services, LLC Maxeefish LLC MEAG Power Metro East Industries, Inc. MidAmerican Energy Company Midland Railway Supply Midwest Generation Midwest Industrial Supply, Inc. Miner Enterprises Inc. Minnesota Power MinTech Enterprises Mitsui Rail Capital, LLC Muscatine Power and Water Nalco Company Nebraska Public Power District New York Air Brake Northern Indiana Public Service NRG Energy, Inc. NV Energy OG&E Electric Services Oglethorpe Power Corp.

Omaha Public Power District Otter Tail Power Company PacifiCorp Patriot Coal Corporation Peabody Energy Pickands Mather Group Platte River Power Authority Portland General Electric PPL EnergyPlus, LLC Progress Rail Services, Corp Rail Link Railroad Financial Corporation

RAS Data Services RESIDCO RungePincockMinarco Salt River Project Sandy Creek Energy Station Seminole Electric Cooperative SMBC Rail Services LLC Southern Company Generation St. James Stevedoring Partners Standard Steel Strategic Rail Systems Strato, Inc. T Parker Host Tampa Electric Company Tennessee Valley Authority Three Rivers Marine & Rail Terminals The Timken Company Transportation Services Inc. TrinityRail Tri-State G&T Association TUCO/NexGen Coal Services Tucson Electric Power Company United Railcar Covers, LLC UtahAmerican Energy, Inc. Wabtec Corporation We Energies Westar Energy Western Farmers Electric Western Fuels Association, Inc. Westmoreland Coal Sales WestRail Wisconsin Public Service Corporation Wood Mackenzie Xcel Energy Xcoal Energy & Resources Zinkan Enterprises, Inc.

Index to Advertisers Alpha Products, Inc.. . . . . . . . . . . . . . . . . . . . . 63 AKJ Industries. . . . . . . . . . . . . . . . . . . . . . . . . 38 Ambre Energy North America. . . . . . . . . . . . . . 69 Amsted Rail. . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Arch Coal Sales, Inc. . . . . . . . . . . . . . . . . . . . . 45 Associated Terminals, LLC . . . . . . . . . . . . . . . . 41 Aventics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Cloud Peak Energy. . . . . . . . . . . . . . . . . . . . . . 65 Coal Cap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Cooper T. Smith Corporation. . . . . . . . . . . . . . . 27 Crown Products & Services, Inc.. . . . . . . . . . . . 61 Donohue Rail. . . . . . . . . . . . . . . . . . . . . . . . . . 37 FreightCar America . . . . . . . . . . . . . . . . . . . . IBC

76 | COAL TRANSPORTER

Fuel Tech, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 53 GATX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 GKG Law, P.C.. . . . . . . . . . . . . . . . . . . . . . . . . 47 Ingram Barge Company. . . . . . . . . . . . . . . . . . 51 Lexair, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . IFC Macquarie Rail, Inc.. . . . . . . . . . . . . . . . . . . . . 16 MCRL, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 MinTech Enterprises. . . . . . . . . . . . . . . . . . . OBC Mitsui Rail Capital, LLC. . . . . . . . . . . . . . . . . . . 23 NexGen Coal Services, Ltd.. . . . . . . . . . . . . . . . 71 Norfolk Southern. . . . . . . . . . . . . . . . . . . . . . . 11 Peabody Energy Inc.. . . . . . . . . . . . . . . . . . . . . 59 PRB Coal User’s Group. . . . . . . . . . . . . . . . . . . 57

Rail Link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Railroad Friction Products. . . . . . . . . . . . . . . . . . 5 The Railway Educational Bureau. . . . . . . . . . . . 37 Slover & Loftus LLP. . . . . . . . . . . . . . . . . . . . . . 3 SMBC Rail Services LLC. . . . . . . . . . . . . . . . . . 47 St. James Stevedoring. . . . . . . . . . . . . . . . . . . 49 Strato, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Three Rivers Marine & Rail Terminals . . . . . . . . 54 Westmoreland Coal Company. . . . . . . . . . . . . . 73 Westrail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Xcoal Energy & Resources . . . . . . . . . . . . . . . . 29

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