December 2014 Railway Age

ailway ge R A

December 2014 | www.railwayage.com

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2015 Outlook CAN WE HANDLE IT? More capacity needed for booming business

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RailwayAge

DECEMBER 2014

visit us at www.railwayage.com Features 2015 Outlook Partners in transit Movable bridge best-practices Boston barnstormer

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News/Columns From the Editor Update Watching Washington Short Line/Regional Perspective Industry Perspective Financial Edge

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Departments Industry Indicators Industry Outlook Market People 100 Years Ago Meetings Products Advertising Index Professional Directory Classified

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ON THE COVER

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Class I railroads face capacity problems in 2015.

Photo by Steve Schmollinger Railway Age, USPS 449-130, is published monthly by the Simmons-Boardman Publishing Corporation, 55 Broad St., 26th Fl., New York, NY 10004. Tel. (212) 620-7200; FAX (212) 633-1863. Vol. 215, No. 12.

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From the Editor WILLIAM C. VANTUONO

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Social media-friendly locomotives?

T

he railroads for quite some time have been reaching out to the public via social media—Facebook, Instagram, Twitter, etc. This is no doubt a good strategy for communicating with young people important messages about grade crossing safety, the dangers of trespassing, environmental friendiness, or even a career as a railroader.

Now comes GE Transportation, which in partnership with CSX has launched a social media campaign “that has a simple goal: sparking curiosity about our locomotives among Millennials (the children of Baby Boomers or Generation Xers, typically born between 1980 and 2000).We’re using an emerging app called ‘Yo’ (http://www. justyo.co) that lets you send and receive notifications from friends and companies with a single tap. Yo users can subscribe to GE’s ‘YOLOCO’ to communicate with the GE Evolution™ Series locomotives running on CSX’s intermodal network.

I think I get it: We now have locomotives that tweet as well as blast air horns.

“The Yo platform brings the connection between Millennials and machines into the palm of Millennial’s hands,” according to GE. “It also gives our locomotives the ability to ‘talk’ about how the Industrial Internet helps our customers reduce emissions, increase fuel efficiency, and improve reliability. Now, learning from our locomotives is as easy as sending a ‘Yo.’” I used to think that “yo” was an expression particular to Brooklyn, like “Yo! Fuggedaboudit!”

GE says that this isn’t the first time it has partnered with CSX to highlight the power of the Industrial Internet: “Late last year, we created a YouTube video (http://youtu. be/EkY04jkgRqo) and SoundCloud track (https://soundcloud.com/generalelectric/ge-brilliant-machines) using the sights and sounds of CSX intermodal terminals to tell the story of how GE helps CSX deliver more than two million containers across 2,000 routes every year.”

So what kind of messages do these Brilliant Machines send? GE says there is a daily “Yo” message from a GE locomotive “with unique analytics pulled using the Industrial Internet. Examples are miles traveled, fuel saved using Trip Optimizer, tonnage hauled, and tons of carbon dioxide saved. If you send a ‘Yo’ to YOLOCO you will receive a ‘Yo’ back with a neat fact about the GE Evolution Series locomotive.

For example, a single locomotive contains 6.7 miles of wiring, or enough to span the length of 117 football fields. Users can share messages from a YOLOCO with their friends via the ‘Yo This’ button.”

If you want to know more about how the Yo app works, there is a Facebook video (https://www.facebook.com/ video.php?v=732527606815536). Yo! Check it out!

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Industry Indicators TRAFFIC ORIGINATED CARLOADS

SHORT LINE AND REGIONAL TRAFFIC INDEX FIVE WEEKS ENDING NOV. 1, 2014

MAJOR U.S. RAILROADS

BY COMMODITY Grain Farm Products ex. Grain Grain Mill Products Food products Chemicals Petroleum & Petroleum Products Coal Primary Forest Products Lumber and Wood Products Pulp and Paper Products Metallic Ores Coke Primary Metal Products Iron and Steel Scrap Motor Vehicles and Parts Crushed Stone, Sand, and Gravel Nonmetallic Minerals Stone, Clay & Glass Products Waste & Nonferrous Scrap All Other Carloads TOTAL U.S. CARLOADS

OCT. ’14 111,081 7,080 47,986 32,837 149,646 81,785 558,809 8,326 18,276 29,981 40,655 19,164 54217 22,249 87,762 125,768 26,048 44,312 17,812 24,123 1,507,907

OCT. ’13 111,447 4,352 49,085 33,712 149,542 67,732 537,799 8,269 16,873 29,598 36,494 17,976 50,893 20,824 88,814 113,888 22,687 43,728 19,034 21,289 1,444,036

% CHANGE -0.3% 62.7% -2.2% -2.6% 0.1% 20.7% 3.9% 0.7% 8.3% 1.3% 11.4% 6.6% 6.5% 6.8% -1.2% 10.4% 14.8% 1.3% -6.4% 13.3% 4.4%

440,671

415,886

6.0%

1,948,588

1,859,922

4.8%

CARLOADS

Chemicals Coal Crushed Stone / Sand / Gravel Food & Kindred Products Grain Grain Mill Products Lumber & Wood Products Metallic Ores Metals & Products Motor Vehicles & Equipment Nonmetallic Minerals Petroleum Products Pulp, Paper & Allied Products Stone, Clay & Glass Products Trailers / Containers Waste & Nonferrous Scrap All Other Carloads

COMBINED U.S./CANADA RR

FIVE WEEKS ENDING NOV. 1, 2014

INTERMODAL MAJOR U.S. RAILROADS

BY COMMODITY TRAILERS CONTAINERS TOTAL UNITS

OCT. ’14 152,682 1,229,067 1,381,749

OCT. ’13 149,436 1,168,242 1,317,678

% CHANGE 2.2% 5.2% 4.9%

8,952 284,398 293,350

7,829 275,573 283,402

14.3% 3.2% 3.5f%

161,634 1,513,465 1,675,099

157,265 1,443,815 1,601,080

2.8% 4.8% 4.6%

COMBINED U.S./CANADA RR TRAILERS CONTAINERS TOTAL COMBINED UNITS

Source: Monthly Railroad Traffic, Association of American Railroads

AVERAGE WEEKLY U.S. RAIL CARLOADS: ALL COMMODITIES (not seasonally adjusted)

% CHANGE 6.0% 32.1% 22.6% -4.0% -3.8% -1.0% 6.7% -11.4% 10.8% 11.9% 26.9% -1.8% 2.5% 5.6% 14.5% 2.4% 3.2%

OCT. 2014 - 420,257 OCT. 2013 - 390,703 340,000 350,000 360,000 370,000 380,000

390,000 400,000 410,000 420,000 430,000

Copyright © 2014 All rights reserved.

RAILROAD EMPLOYMENT, CLASS I LINEHAUL CARRIERS, OCTOBER 2014 (% CHANGE FROM OCTOBER 2013)

CANADIAN RAILROADS TRAILERS CONTAINERS TOTAL UNITS

ORIGINATED OCT. ’13 45,896 18,629 31,464 13,168 29,957 6,912 10,622 8,686 22,118 10,887 2,470 2,225 20,778 14,306 46,769 11,734 94,082

TOTAL CARLOADS, OCTOBER 2014 VS. 2013

CANADIAN RAILROADS ALL COMMODITIES

ORIGINATED OCT. ’14 48,651 24,604 38,584 12,635 28,812 6,846 11,338 7,697 24,503 12,182 3,135 2,186 21,302 15,112 53,538 12,020 97,112

BY COMMODITY

Transportation (train and engine) 70,722 7.25%

Executives, Officials, and Staff Assistants 9,967 1.78%

Professional and Administrative 14,213 2.89%

TOTAL EMPLOYEES: 169,224 % CHANGE FROM OCT. 2013: 3.75% Transportation (other than train & engine) 6,719 (-0.27%)

Maintenance of Equipment and Stores 30,325 2.72%

Maintenanceof-Way and Structures 37,278 (-0.05%)

Source: Surface Transportation Board

EMPLOYMENT AGAIN UP FROM YEAR-AGO, PRIOR-MONTH PERIODS Figures released by the Surface Transportation Board show Class I total railroad employment rose 3.75% in mid-October 2014, measured against mid-October 2013, and was up 0.31% from mid-September 2014. Transportation (train and engine) once more powered the yearover-year gain, up 7.25%, Only Maintenance-of-way and structures fell from September, down 0.01%, as well as down 0.05% from a year ago.

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RAILWAY AGE

December 2014

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Industry Outlook STB Chair Elliott to be renominated

DART eyes downtown streetcars, LRT Nearing substantial completion of a decades-long effort to link downtown Dallas with outlying suburbs, Dallas Area Rapid Transit (DART) and City Council officials are looking into long-discussed rail transit upgrades within the city’s core itself.

A Dallas City Council committee is cautiously advancing a $1 billion plan that includes linking the Oak Cliff streetcar line, set to open next year, with the heritage McKinney Avenue streetcar via a downtown link. Such a move would add Dallas to the small but growing list of U.S. cities combining LRT and streetcar options.

As well, a second portion of the plan includes building a second DART light rail transit (LRT) route, dubbed “D2,” through downtown to relieve the bottleneck of downtown congestion and improve LRT flexibility. D2 was first proposed in 2007.

“We have to create additional capacity in downtown Dallas and we think it’s important to use multiple approaches to accomplish that goal,” a DART spokesman told Railway Age. “By being flexible we can keep moving forward and meet the demand for expanded service.”

BNSF’s Rose is new ACCCE chair

Hoosier State fate still unresolved Indiana’s Department of Transportation has ended contract negotiations with Chicago-based Corridor Capital LLC to provide passenger railcars, marketing, and other services for Hoosier State service between Indianapolis and Chicago. A spokesman said Indiana DOT seeks to preserve rail service beyond a Jan. 31 contract expiration date with Amtrak, the current operator.

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RAILWAY AGE

December 2014

Last month the American Coalition for Clean Coal Electricity (ACCCE) named BNSF Railway Executive Chairman Matthew K. Rose as ACCCE’s next chairman. James (Jim) J. Jura, CEO and general manager of Associated Electric Cooperative, Inc., was elected vice chairman. ACCCE noted Rose “has more than 30 years of experience in the railroad industry and previously served as CEO of BNSF Railway, before becoming executive chairman at the beginning of 2014.”

“We are pleased to have two talented leaders at ACCCE’s helm in 2015,” said ACCCE President and CEO Mike Duncan. “Matt and Jim enter their new roles at an important time for our industry, which faces unprecedented regulatory overreach from an activist White House.”

President Obama last month announced his intention to renominate Daniel Ellliot III to the Surface Transportation Board for another term, and upon appointment assume the role of STB chair, which he currently holds.

Elliott has served on STB since 2009. From 1993 to 2009, he was Associate General Counsel of the United Transportation Union (UTU).

Elliott was an Associate at Chester Giltz & Associates from 1991 to 1992, an Associate at Marshman, Snyder, Berkley & Kapp from 1990 to 1991, and an Associate at Bishop, Cook, Purcell & Reynolds from 1989 to 1990.

He has served as an editor for several railway-related publications.

The Senate Commerce Committee usually clears such a nomination, advancing its endorsement (and the nomination) to the Senate floor.

A committee recommendation is not required, but the absence of a Commerce Committee hearing on such a matter is a rare occurrence.

If confirmation fails to occur before the current lame-duck Senate adjourns, Elliott must step down from his position and, possibly, be subject to a new nomination after the Republicancontrolled Congress assumes its position in January.

Sources tell Railway Age that the confirmation likely will take place prior to adjournment, however. Elliott apparently has made his peace with Sen. Durbin (D-Ill.). Sen. Jay Rockefeller (D-W.Va.), who is retiring, is not seen as an impediment.

It is likely Elliott will be pressed on STB merger rules and how the agency might proceed if there is a formal merger application between two Class I railroads, the specter of which was raised this fall with a proposed union of CSX and Canadian Pacific.

That concern lingers even though the CSX/CP merger was called off last month, and some Class I CEOs have suggested such an effort faces “far too many regulatory hurdles.”

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Market

Norfolk Southern’s acquisition of Delaware & Hudson right-ofway will improve the railroad’s direct access to numerous locations in the Northeast.

Canadian Pacific sells D&H lines to Norfolk Southern Canadian Pacific said it would sell a segment of roughly 200 miles of its Delaware & Hudson Railway subsidiary, cutting across Pennsylvania and New York, to Norfolk Southern Corp. for $192.6 million. The transaction is subject to approval by the Surface Transportation Board. Acquisition of the line will give NS direct access from Chicago and the southeastern U.S. to Albany, N.Y. and the railway’s recently completed intermodal terminal at Mechanicville, N.Y. NS will also gain improved links to its joint venture subsidiary Pan Am Southern, which serves New England. The deal will include D&H’s car maintenance depot at Binghamton, N.Y., along with other facilities along the route. NS will also take on 150 D&H employees in the area.

CHSRA: Announced three bidders for Phase 2 of California’s HSR project, including: Dragados/Flatiron/Shimmick; Golden State Rail Partnership, which includes OHL USA, Samsung E&C Americas, and Tylin International (Tyli); and Tutor Perini/Zachry/Parsons.

LACMTA: Awarded a Skanska joint venture, including Traylor Brothers, Inc. and J.F. Shea Construction, a $1.6 billion design-build contract to extend the Metro Purple Line heavy rail by 3.9 miles. Separately, LACMTA also awarded Cubic Transportation Systems $9 million add-on contract to upgrade its TAP universal fare collection system.

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RAILWAY AGE

December 2014

M1 RAIL (DETROIT): Awarded a $30 million contract to Inekon Group for six streetcars for a 3.3-mile streetcar line.

METROLINX: Selected mobile transit ticketing supplier Bytemark to develop a mobile ticketing system for Union Pearson Express, the regional rail link connecting Toronto Union Station with Lester B. Pearson International Airport.

TRIMET: Selected RailComm to replace communication infrastructure for its CTC dispatching system.

Worldwide ADANI MINING PTY. LTD.: Named Parsons Brinckerhoff project

management consultant for its Carmichael integrated coal mine, port, and rail project in the Galilee Basin in western Queensland, Australia.

DB SCHENKER RAIL (GERMANY): Awarded ZTR Control Systems a contract for more than 300 SmartStart® AESS (Automatic Engine Start-Stop) systems.

MEXICO CITY STC: The public transport system awarded Alstom Transport Mexico a $343 million contract to modernize 85 rubber-tired trains, which are used on metro lines 4, 5, 6, 7, and B. Work includes new doors and braking systems, as well as maintenance work for four years.

Scott Snell

North America

Update SUPPLY BRIEFS Vertex Rail readies for North Carolina start-up Vertex Rail Technologies LLC, a manufacturer of railroad tank cars, is opening a new plant in Wilmington, N.C., using a former Terex Cranes facility. The Bostonbased company said it will build specialty tank cars designed to serve the U.S. energy market, and plans to invest $60 million at the site and employ more than 1,300 workers across two shifts. Positions will range from assemblers and fitters, welders, and painters to engineering, logistics, quality assurance, sales, safety, and management.

Vertex said it will spend the next few months refitting and equipping the facility.

Miner completes testing for AAR S-213 boxcar plug door standard Miner Enterprises has concluded boxcar plug door testing for door manufacturers pursuant to newly revised Association of American Railroads Standard S-213. A series of tests were conducted for the AAR at Miner’s Geneva, Ill., facility on boxcar plug doors.

These tests included railcar impact, water spray, and light leakage tests on Miner’s state-ofthe art Research and Development impact track. Miner custom-built a water spray fixture for one of the S-213 tests. Providing product development and quality assurance testing services for Miner’s entire product line, the R&D Department consists of a comprehensive physical test laboratory, a railcar impact track, and the capability to perform unmanned field service testing. The Department is staffed with engineers and technicians with years of expertise in instrumentation, stress analysis, load cell design, and test machine/ fixture design and fabrication.

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RAILWAY AGE December 2014

Engel accepts Railway Age Graham Claytor Award

A

t Railway Age’s 21st Annual Passenger Trains on Freight Railroads Conference in Washington, D.C., Al Engel accepted the W. Graham Claytor Jr. Award For Distinguished Service To Passenger Transportation.

Throughout his career, which has included key positions at GE Transportation, LS Transit Systems, SYSTRA Consulting USA, and Amtrak, Engel, a professional engineer and Penn State graduate, has been an outspoken advocate and activist for passenger rail.

His focus has been on high speed and higher-speed rail, a direction in which the U.S. must move if it is to keep pace with other developed nations.

“While global high speed rail mileage in operation has grown beyond 14,000 miles, we are still asking, when will the U.S. have a national policy and program for a world-class intercity passenger rail system?” said Engel. “I don’t mean to cast any aspersions upon Amtrak. I’ve had the pleasure of working there as a Vice President with many fine people both in the managerial and agreement ranks. Amtrak is fiscally and statutorily constrained and doing what it can in a politically charged, year-to-year funding environment.

“What will be the tipping point for a U.S. high performance intercity

passenger rail policy and program?

First, intercity passenger rail must be evaluated with the same return on investment metrics as other nationally funded transportation programs such as aviation, highways, and urban transit.

Somehow, there is the mistaken expectation in the U.S. that HSR must be paid for entirely out of the farebox.

Second, we must have a successful demonstration project to act as catalyst—perhaps California, or Texas.

Third, Northeast Corridor demographics will force a move to a parallel high speed rail service.

“We will have reached the tipping point for a national high performance passenger rail program to build a network along the lines of the system described in President Obama’s 2011 State of the Union message when the citizens demand it. This vision can only be achieved when there is an advocacy organization or coalition that can give voice to this national longing and effectively communicate the benefits to the constituency and their elected representatives.”

The W. Graham Claytor Jr. Award For Distinguished Service To Passenger Transportation is based primarily on lifetime achievement and is presented to an individual who has made significant contributions to the field of passenger railroading during his or her career. Among previous recipients are David Gunn (former Amtrak president and NYMTA, WMATA, and TTC chief), Paul Reistrup (former Amtrak president), Gene Skoropowski (former Managing Director, Capitol Corridor Joint Powers Authority), Bob VanderClute (SVP Safety and Operations, AAR, and former Amtrak Chief Operating Officer), Bill Millar (former APTA president), Tommy Thompson (former USDOT Secretary and Amtrak board member), Jim McClellan (former Norfolk Southern and Amtrak official), and Ross Capon (former NARP Executive Director).

Update

The Federal Highway Administration early last month approved a preferred construction alternative for CSX’s Virginia Avenue Tunnel project, enabling CSX to complete the tunnel’s design and initiate the construction permitting process.

FHWA’s decision marks the completion of an extensive environmental review of the project conducted jointly with the District of Columbia

12

RAILWAY AGE December 2014

Department of Transportation (DDOT) and incorporating three years of input from residents, businesses, and government agencies in the Southeast Washington, D.C., neighborhood around the tunnel.

But a lawsuit subsequently filed by the Committee of 100 on the Federal City, an advocacy group, claims the Final Environmental Impact Statement (FEIS) approved by DDOT and the

Federal Railroad Administration is flawed by “predetermination” and fails to adequately address concerns of safety and the district’s historic layout.

Notwithstanding the looming lawsuit, CSX and its design/build contractor, Clark/Parsons, plan to finalize the tunnel design and begin applying for construction permits in compliance with Washington D.C.’s established construction-permitting process.

Following the initial permitting process, utility relocations and other preliminary efforts will begin. Major construction is expected to begin in the next several months, following receipt of the required permits.

CSX said its Virginia Avenue Tunnel team “has voluntarily committed to hire workers and select contractors consistent with the spirit of the District of Columbia’s First Source and Certified Business Enterprise programs.”

“In response to feedback from nearby

District Department of Transportation

FHWA OKs CSX Virginia Avenue Tunnel project alternative

residents, the alternative selected through this process has the shortest construction time span (30 to 42 months) of any of the construction alternatives considered and ensures that trains will always operate in enclosed tunnels in front of nearby residences,” CSX said. “The plan includes significant measures to reduce the construction impacts on nearby residences and businesses, including dust, noise and vibration monitoring and control plans; limited construction hours; and maintenance-of-traffic plans that ensure continued pedestrian access and vehicle mobility for all essential services throughout the process.”

The Virginia Avenue Tunnel is part of CSX’s National Gateway, described as “an initiative to improve the flow of rail traffic throughout the nation by increasing the use of doublestack intermodal trains and creating more efficient rail routes that link Mid-Atlantic ports with Midwestern markets for domestic and

imported products. It is one of several infrastructure investments CSX is making to meet the growing demand to move more freight by rail across its network. The Virginia Avenue Tunnel, one of the largest components of the National Gateway program, is receiving no Federal funds.”

The Federal government approved the proposal to modernize the 110-year old tunnel, which will improve the flow of freight traffic through the District of Columbia and eliminate a rail traffic bottleneck that also impacts commuter and Amtrak trains in the region.

“The Virginia Avenue Tunnel is a critical piece of our national and regional transportation infrastructure,” said CSX Vice President Strategic Infrastructure Initiatives Louis E. Renjel, Jr. “Reconstructing the aging tunnel will eliminate a long-standing rail bottleneck that impacts freight and passenger rail, and it will increase the network’s capacity ahead of anticipated growth in

freight rail traffic. Through CSX’s commitment to the community, neighbors will enjoy improved streetscapes, additional green spaces, a new bike trail, and other improvements as part of the project.

“While this decision is the end of the Federal environmental review process, it is just the beginning of a new phase of CSX’s relationship with the community. Input from residents shaped many features of this project and we are appreciative of their involvement. We are committed to doing this project the right way: safely, respecting our neighbors, and working closely with residents and businesses to minimize impacts and to ensure that they are informed about construction plans.”

CSX will use a new website, social media, events, briefings, and other tools to maintain the flow of information to area residents and businesses.

The company has established a community office in the neighborhood.

W o r l d ’s L a r g e s t C r a n k s h a f t M a n u f a c t u r e r a n d R e - M a n u f a c t u r e r

H e r m i t a g e , PA U S A 1 6 1 4 8 Te l e p h o n e 1 - 7 2 4 - 3 4 7 - 0 2 5 0 w w w . E l l w o o d C r a n k s h a f t G r o u p . c o m December 2014 RAILWAY AGE 13

Update As expected, New York’s Metropolitan Transportation Authority on Nov. 10,

14

RAILWAY AGE December 2014

2014 officially opened its Fulton Street Transit Center, linking nine (eventually

to be 11) subway lines and related facilities in lower Manhattan.

Subway riders and other pedestrians in downtown Manhattan, alerted to the pending opening, began using the new hub at 5:00 a.m. local time, with most adapting quickly to new walkway travel patterns as if the station had been there for years.

MTA, city, and state officials marked the event a day earlier, on Nov. 9, including remarks on the adjacent Dey St. Concourse, eventually to link the E train and the PATH transit hub, located west of Fulton Street Transit Center at the World Trade Center.

Retail space remains largely empty at present. In December 2013, MTA awarded a contract to Sydney, Australiabased Westfield Group to oversee retail business operations at the center.

Westfield Group, operating in the U.S. since 1987, has its U.S. headquarters in Century City, Calif.

Joseph M. Calisi

MTA Fulton Street Transit Center unites NYCT lines

BNSF, Hotstart begin locomotive refit BNSF Railway is retrofitting 11 of its locomotives with Hotstart idle-reduction technology “to reduce emissions and conserve fuel in Washington State,” with the pool of locomotives to operate out of BNSF yards in Spokane and Pasco, Wash.

the locomotive when not needed. The combination of APUs and AESS can potentially eliminate most locomotive engine idling. Remote data logging systems will be installed onboard each locomotive to monitor and track data

BNSF and Spokane, Wash.-based Hotstart are joined by the Spokane Regional Clean Air Agency in the effort.

“Minimizing our impact on the planet is a key priority for all of us at BNSF and we are always striving to incorporate new practices and technologies to help us reduce our impact,” said John Lovenburg, BNSF vice president, Environmental. “Through our partnership with Hotstart and Spokane Regional Clean Air Agency, we are able to make continued strides in Washington to further reduce carbon emissions in our operations.”

To lower carbon dioxide emissions at its Spokane and Pasco rail yards, BNSF purchased Hotstart’s Auxiliary Power Units (APUs) to reduce idling during cold weather. Hotstart’s APU idle-reduction technology keeps the engine warm and ready to restart. Shutting down an idling locomotive reduces fuel consumption, oil consumption, emissions, noise, and engine wear, BNSF said.

In addition to the APUs, BNSF has installed Automatic Engine Start-Stop systems (AESS) that can be used in conjunction with the APU to shut down

for each of the 11 APU systems.

“Hotstart is proud to support BNSF in its efforts to reduce locomotive idling,” said Hotstart CEO Terry Judge. “We’re thrilled that our technology, developed and built right here in Spokane, will help BNSF save fuel and reduce emissions right in our own backyard.”

Spokane Clean Air, with technical assistance from Washington State Department of Ecology, facilitated the partnership between BNSF and Hotstart to purchase the APU idlereduction technology. When all of the retrofits are complete, it is estimated this project will reduce emissions by more than 22 tons and fuel consumption by nearly 64,000 gallons during the six-month, cold weather operational period.

“This project is an excellent example of how technology can be used to reduce air pollution while saving a company money through significant fuel savings. It is a win-win and we hope to see additional diesel engines retrofitted with idle reduction technology throughout our area,” said Julie Oliver, director of Spokane Clean Air.

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Update First RTD EMUs on way to Denver

The first electric multiple-unit (EMU) coaches ordered by the Denver Regional Transportation District, for its electric regional rail system, have left the Hyundai-Rotem plant in South Philadelphia; it arrived in Denver on Nov. 21. Hyundai-Rotem manufactures the carshells in Korea. Final assembly

takes place in Philadelphia, where four railcars are configured as a single EMU. The high-level-platform-boarding EMUs will be used on four RTD FasTracks lines beginning in 2016—the East Rail Line to Denver International Airport, the Northwest Rail Line to Westminster, the Gold Line to Arvada/ Wheat Ridge, and the North Metro Rail Line To Thornton.

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Metra flirts with fixed seating

Throughout its three decades of existence, Chicagoland’s Metra regional rail service has resisted the widespread adaptation of “fixed-seat” consists by other North American transit agencies, arguing that its customers prefer the choice of facing forward (or backward) on rides and, as well, that such choice poses little danger to riders obeying railroad safety rules.

But a notice in Metra’s November 2014 publication “On the Bilevel” is asking riders to evaluate a fixedseating alternative, which would bring Metra in line with its regional passenger rail brethren.

“We are considering switching to seats that do not flip but are more comfortable, with armrests and cupholders. They would be permanently positioned facing the vestibule, so half the car would have to ride backward,” Metra explains.

Last rails laid for TriMet LRT line Portland, Ore.-based TriMet last month said construction workers had welded the final rails of the 7.3-mile Portland-to-Milwaukie light rail line, set to open in September 2015.

“This is the last piece of rail to be welded on the Portland-Milwaukie project that has created more than 12,700 jobs and will provide improved transit in Clackamas County,” TriMet General Manager Neil McFarlane told local media assembled at the welding site, at Southeast 21st Avenue and Adams Street in downtown Milwaukie, Ore., southeast of Portland.

The line extends TriMet’s LRT reach from Portland State University to Milwaukie and North Clackamas County. The line includes Tilikum Crossing, billed as the first multimodal bridge in the U.S. that will handle LRT, streetcars, buses, bicycles, and pedestrians, but not private automobiles. It will be served by Siemens S70 “Type 5” MAX light rail vehicles, unveiled by TriMet last October in Gresham, Ore.

Amtrak files with STB over Capitol Limited performance Amtrak has filed a complaint with the U.S. Surface Transportation Board against Norfolk Southern and CSX over substandard on-time performance of the Washington D.C.-Chicago Capitol Limited, which operates over right-ofway owned by NS and CSX. This is Amtrak’s second such action regarding substandard on-time performance of its long-distance trains.

Attorneys Linda J. Morgan, Kevin M. Sheys, and Katherine C. Bourdon of Nossaman, LLP, and Amtrak Managing Deputy General Counsel William H. Herrmann filed the complaint on Nov. 17, 2014, to initiate an investigation by the STB. The complaint notes that “the on-time performance of the Capitol Limited service has averaged less than 80% for two consecutive calendar quarters. If all-stations on-time performance is defined as the percentage of station arrivals (and departure from origin station) that occur within 15 minutes of the times on the public schedule, then in the quarter ending Sept. 30, 2014, all-stations on-time performance of the Capitol Limited service was 20.4%, and it was 27.8% in the previous quarter. If endpoint on-time performance for longdistance trains (such as the Capitol Limited service) is defined as the percentage of times those trains arrived at their terminal station within 30 minutes of the arrival time on the public schedule, then in the quarter ending Sept. 30, 2014, the endpoint on time performance of the Capitol Limited service was 2.7%, and it was 33.6% in the previous quarter. Amtrak respectfully requests that the STB initiate an investigation of the substandard performance on the Capitol Limited service . . . [and] if the Board determines that delays to Amtrak Capitol Limited service are attributable to a host railroad’s failure to provide preference, as required by 49 U.S.C. 24308(c), the Board award damages and other relief it determines to be reasonable and appropriate, pursuant to 49 U.S.C 24308(f)(3).”

Under Section 213 of the Passenger Rail Investment and Improvement Act

of 2008 (PRIIA), if the on-time performance of any intercity passenger train averages less than 80% for any two consecutive calendar quarters, upon Amtrak filing a complaint, the STB is to initiate an investigation into the causes of delays incurred by Amtrak trains operating over a rail carrier’s lines. The ARI-45914 DECauthority Railway Age_ARI Image Ad STB “has ample to construe

‘on-time performance,’” Amtrak’s complaint says. “Amtrak’s definitions of on-time performance are reasonable. . . [and] Amtrak’s measurement of all-stations on-time performance under section 24308(f), besides being reasonable, also fosters an on-time performance policy goal established by 11/7/14 3:41 PM inception Page 1 Congress at the of Amtrak.”

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Watching Washington FRANK N. WILNER

Rails face old threats from new Congress

I

n a twist to 18th century satirist Jonathan Swift’s “Modest Proposal,” National Industrial Transportation League (NITL) President Bruce Carlton suggests shippers consume (as in “eat”) their railroads.

Before the Surface Transportation Board (STB), Carlton termed his petition—that shippers served by only one railroad be granted access to a second through mandatory reciprocal switching—a “modest proposal.” Really?

Railroads assert it would chop revenue by some $7 billion annually, discourage investment in asset renewal and expansion, require more switch engines, increase dwell time and sap productivity—in short, eat through assets. As if performing in a theater of the absurd, these same shippers demand of railroads greater capital investment—the source of which is sufficient revenue and profits—to improve fluidity of the rail network.

Carlton, shifting from literature scholar to Soviet historian, then invoked before the STB Josef Stalin’s “salami-slicing” strategy, terming his modest proposal “a wonderful beginning … a step in the right direction.”

Good grief, Carlton advocates expanding mandated access to turn the nation’s privately owned rail network into a public escalator with a freightrate direction of downward only.

Shippers also are urging lawmakers pursue reregulation, eventually restoring a pre-Staggers Act (1980 partial deregulation) environment even the NITL decried as villainous and requiring reform. For many, the lessons of economic history—the millstone of rigging railroad pricing to subsidize more politically favored shippers or commodities—have too soon been forgotten.

Such are the traps facing railroads before the new Congress in January.

18

RAILWAY AGE

December 2014

Separately, the STB—which has sided with shippers about half the time in deciding rate-reasonableness complaints—will consider the NITL petition plus new measures of revenue adequacy and revisions to its standalone cost methodology.

Railroad baiter-in-chief Sen. Jay Rockefeller (D-W.Va.)—long a voice for disgruntled coal shippers while chairman of the Senate Commerce Committee—is retiring. His successor as Commerce Committee chairman in the Republican controlled Senate come

NITL and other shippers’ groups are urging lawmakers to reregulate railroads.

January is John Thune (R-S.D.), who joined earlier this year with Rockefeller in introducing shipper inspired legislation that stalled. Expect Thune, energized by his native South Dakota agriculture interests, to reintroduce that bill (S. 2777) in concert with the committee’s ranking Democrat, Florida’s Bill Nelson.

While provisions such as increasing the number of STB members from three to five aren’t draconian, an arbitration requirement would treat individual shippers and commodities in a vacuum, encouraging indiscriminate choosing of winners and losers.

Thune, who once headed South Dakota’s rail planning division, understands the horrors of under-investment in rail assets that follow too-aggressive profit-choking economic regulation;

Nelson is on record that senators not make a rush to judgment, but rather encourage private-sector solutions.

What exits the Commerce Committee is subject to more radical amendment on the Senate floor. The House is less inclined to reregulate.

The proven stratagem in defending Staggers Act freedoms is to assure network fluidity, provide no-quibbles customer service, and deliver a concise, comprehensible message to Capitol Hill why public policy must preserve and expand the railroads’ current annual capital investment of $26 billion.

Policies advancing free lunches to the politically favored, oft-complaining only inflict financial anemia on the victim.

While shippers contend current railroad profits are sufficient to justify lower rates and encourage capital investment, Wall Street analysts differ; and no railroad has transited a complete business cycle consistently meeting minimum requirements for a revenue adequacy determination.

The new Congress must also address highway policy. Per-gallon fuel taxes are insufficient and inefficient. Weightdistance user charges better match pavement and bridge damage with responsibility. Anticipate efforts to increase allowable truck lengths and weights that threaten rail intermodal.

A Federal Communications Commission delay linked to authorizing placement of poles and towers makes compliance with the Dec. 31, 2015 implementation of Positive Train Control impossible. Congress likely will extend the deadline.

Sen. Commerce Committee member Richard Blumenthal (D-Conn.) will seek support for his effort to slow trains carrying high-hazard flammables, require electronically controlled pneumatic brakes, and fines as high $1 million for violations.

Perspective: Short Line & Regional ED McKECHNIE

ASLRRA: Thank you, Rich Timmons

I

t’s “out with old, in with the new”—a sentiment widely expressed by people everywhere as we enter the New Year.

In the short line railroad world, that sentiment has particular meaning this year as we say goodbye to American Short Line and Regional Railroad Association President Rich Timmons, and greet our new President, Linda Bauer Darr.

We are very excited about our new leader. She has extensive experience in association management, a deep understanding of transportation issues, and a familiarity with government, based on her service as a senior executive in the U.S. Department of Transportation.

She will bring a new set of strengths to an organization that is dedicated to strengthening the short line industry.

But before we begin with the new, I want to pay a well-deserved tribute to Rich Timmons, who became ASLRRA President in 2002 following a distinguished 33-year career in the United States Army. For most of his military career he was a man on the ground in the center of the battle. He fought in Vietnam and in Iraq in Desert Storm/ Desert Shield. At the end of his career he commanded our troops in South Korea, a high profile hot spot in international military affairs. He brought to the short line industry that same desire to be on the ground in the center of the action.

He reorganized and strengthened our association’s staff. He turned our conference room into a war room, where he attacked everything from the association’s finances to communications to membership services to relationships with our Class I partners.

When Rich took over in 2002, ASLRRA’s leadership had just begun developing the short line rehabilitation tax credit initiative. This was a massive undertaking involving extensive grassroots lobbying, data collection, media outreach, and increased participation in

the political process. Rich marshaled our resources and kept those resources focused on our objective until the credit was passed at the end of 2004. In recognition of this effort, he was named Railway Age’s “Railroader of the Year” in 2006, the first and only ASLRRA President ever given that award. He continued that focused effort as we successfully renewed the credit three times over the past six years. Hopefully, as you read this, Congress will have passed a fourth extension of the credit, which would be a fitting conclusion to his service as ASLRRA President.

He sought the perspective of rail workers and executives alike.

As past Chairman of ASLRRA’s Legislative Policy Committee and as current ASLRRA Chairman, it has been my good fortune to work closely with Rich throughout most of his tenure.

During that time I came to appreciate one very important thing about Rich Timmons. It would have been easy for a senior Army General of his experience and reputation to take the post and coast to the finish line. But Rich jumped into this new job with both feet. He went about methodically learning everything he possibly could about the railroad industry from train operations to shipper relationships to the financial underpinnings of our companies. He never attended a meeting with a Congressman or a regulator or a Class I executive without immersing himself in every piece of information that might be discussed. Perhaps most impressive, he

was a constant and patient listener and was as equally interested to hear the perspective of a track worker as that of a senior railroad executive or a Cabinet Secretary in Washington.

Rich’s wife Margo once told me that his happiest moments in the Army were when he was with his soldiers. That proved to be equally true in his short line career. He spent untold hours with short line railroaders and suppliers talking about their needs and concerns. He visited their properties, talked with their employees, met with their shippers, and lobbied their local officials. It allowed him to gain a knowledge and understanding of our industry that made him one of our most valuable public advocates.

In 2013 we celebrated ASLRRA’s 100th Anniversary. Rich concluded that celebration by putting his own service in perspective in a way that demonstrated his understanding of and affection for our community: “There have been ten Association presidents before me and while the many short line industry successes occurred on our watch, we were not the moving parties.

What has sustained the success of short line railroading for 100 years, in good times and bad, has been an entrepreneurial spirit that was eager to work hard, willing to take financial risk, and capable of seeing potential opportunity where others feared only potential failure.

Today’s short lines and their predecessors represent the very best in American business, and that is what will sustain our industry for the next 100 years.”

As we enter the New Year, I look with anticipation to the great leadership I know we will get from Linda Darr. I will also look back at the great leadership we got from Rich Timmons and wish him the very best in whatever endeavors he chooses to pursue in the future.

ASLRRA Chair Ed McKechnie is Executive VP and Chief Commercial Officer,Watco Cos. December 2014 RAILWAY AGE 19

Norfolk Southern’s Bellevue, Ohio classification yard recently underwent a size-doubling expansion.

2015 OUTLOOK: CAN WE HANDLE IT? Another year of record capital investment will be needed to build more capacity to keep up with growing demand.

T

he biggest challenge the railroads will face in 2015 isn’t the possibility of some form of reregulation. It isn’t captive shippers demanding open access or reciprocal switching. It isn’t stricter, EPA-mandated Tier 4 diesel locomotive emissions standards. Nor is it the fast-ticking clock to get PTC up and running by the end of next year.

These challenges are serious, but not as much as an ongoing capacity shortage that, combined with what is projected to be another harsh winter, may produce some fairly substantial service problems as 2015 unfolds.

With crude oil movements growing, intermodal at an alltime high, coal on the rebound, a second-consecutive record grain harvest, and most other commodities on the upswing, the Class I railroads can’t build additional capacity fast enough. But building it they are, and they will continue to do so for the foreseeable future.

The best example of this boom in building is BNSF Railway, whose planned capital expenditures for 2015 will be $6 billion—another record for a company that, including next 20 RAILWAY AGE December 2014

By WILLIAM C. VANTUONO, Editor-in-Chief

year’s amount, will have made more than $50 billion in capital investments since 2000. BNSF also updated its planned capital expenditures for 2014, which now are expected to be $5.5 billion—$400 million more than initial projections.

“Our 2015 plan marks the third year in a row that BNSF has committed a record amount for capital investments,” said President and CEO Carl Ice in announcing next year’s program. “Our capital investment program since the beginning of 2013 through the end of 2015 is unprecedented and is clear evidence of our confidence in a growing economy and our intention to meet the demand for service that comes from all our customers. We have made great progress in expanding the segments of our railroad that have been most constrained by rapidly increasing demand. Once these new capital programs are completed, we expect to further restore the capacity flexibility we have historically enjoyed to manage the periodic demand surges that come from a dynamic and fast-paced economic environment.”

The largest chunk of BNSF’s 2015 capital plan, $2.9 billion, will be for infrastructure renewal and maintenance.

These projects will go toward replacing and upgrading rails, ties, and ballast that are due for updating. As with practically all other railroads, such infrastructure projects “typically make up the largest percentage of BNSF’s annual capital projects and are important for ensuring that BNSF can optimize its rail network for ideal speeds for trains that carry a wide range of commodities,” Ice said.

BNSF also plans to invest almost $1.5 billion in expansion projects. Nearly $500 million of that expansion work will occur in the Northern Region, where BNSF has been experiencing the fastest growth—as well as the most congestion.

That region primarily serves agriculture, coal, crude oil, and materials related to crude oil exploration and production, such as sand for hydraulic fracturing. In 2014, $1 billion was spent on the Northern Region. With next year’s program, capacity there is expected to be well in line with projected growth, freeing up capital dollars for expansion programs on other areas of the network.

BNSF will also increase the size of its locomotive fleet, adding 330 new units to its fleet of 7,500 and replace others that will soon reach the end of their useful service life.

(Details for the various line capacity and maintenance projects BNSF plans to undertake, particularly those in its Northern Region, will be announced in early 2015.)

In the East, CSX—which Canadian Pacific recently approached about a transcontinental merger (RA, November, p. 9), said it has taken “a number of actions to overcome the transition in the energy markets in recent years, emerging a stronger company that is better positioned to capitalize on momentum across nearly all the markets it serves,” Chief Financial Officer Fredrik Eliasson recently told investors and analysts. “Our future is built on the continued execution of our core strategy, which means enhancing our ability to grow faster than the economy, price above inflation, make strategic investments, and produce ever more efficient operations to continue delivering superior shareholder value. The foundation of that strategy is service excellence, and we are putting the resources in place now to deliver strong service to continue creating sustainable value for our customers and shareholders. By focusing on inflation-plus pricing and efficient operations, CSX is better positioned to capitalize on continued economic momentum and develop new customers.

We remain confident in our ability to deliver double-digit earnings growth and margin expansion in 2015 as we progress toward a mid-60s operating ratio over the longer term.”

RECORD FREIGHT CAR BACKLOG

As much as the railroads are scrambling to add needed capacity, freight car builders and component suppliers are scrambling to keep up with demand. The freight car backlog at the end of third-quarter 2014 amounted to 124,437 cars and platforms, the highest backlog level since October 1979’s 127,887 (when figures were compiled monthly), according to figures Railway Age obtained from Economic Planning Associates (EPA) and the Railway Supply Institute.

This backlog dwarfs prior high points of first-quarter 2006’s 86,853 units and third-quarter 1998’s 69,858.

“The railcar market continues to surge,” said EPA Peter

BNSF will invest an unprecedented $6 billion in capital in 2015.

Toja. “Even though assemblies accelerated in the third quarter, incoming orders of 42,900 cars and platforms far outpaced deliveries of 18,432 units. Most noteworthy of the thirdquarter expansion in orders was the widespread demand for a number of car types. Strong increases were recorded by all types of covered hoppers, intermodal equipment, Class F cars, and tank cars. Even the long-neglected boxcar segment expanded at a vigorous pace in the third quarter.”

Based on ongoing strength in several railcar types, EPA raised its short- and long-term deliveries forecasts. Toja expects deliveries of 68,500 cars and platforms in 2014, followed by assemblies of 84,500 units in 2015. Longer term, he expects deliveries to moderate at significantly higher levels than EPA’s most recent forecast. After 76,800 cars are delivered in 2016, deliveries will remain at “the healthy level of some 75,000 cars through 2019.”

“In spite of a sluggish economy, the major railroads recorded strong financial performances in third quarter, and were indicating strong investments in a number of areas, primarily for intermodal equipment and terminal facilities,” said Toja. “In addition to new intermodal terminals, expansion and modernization of existing facilities were cited by the railroads. And, we believe that these investments will be well-founded as railroads look to increase market share at the expense of the long haul truckers.

“On a positive note, demand for boxcars jumped in the third quarter. According to industry sources, the 3,510 cars ordered in the third quarter were primarily for equipment destined for TTX. It now appears that after years of neglect, TTX is looking to upgrade its extremely aged general service cars.

“Aside from TTX, there seems to be little support for boxcars from individual investors or users of boxcars. As we mentioned in previous reports, we continue to believe that December 2014 RAILWAY AGE 21

2015 OUTLOOK

Recent Norfolk Southern average train speed and terminal dwell time metrics are indicative of traffic growth on a capacity-constrained network.

the steady expansion in motor vehicle demand and production is leading to a revitalization of auto parts boxcars.

However, non-automotive demand seemed quite subdued until the TTX order was placed with two builders.

“Demand for hi-cube covered hoppers turned in another impressive gain in the third quarter. Orders for 2,875 cars

nearly matched the 2,950 cars ordered in the second quarter.

As a result, even with a significant increase in third-quarter assemblies, backlogs expanded once again to 9,764 cars at the end of September.

“Responding to an apparent shortage of grain service cars, demand for mid-sized covered hoppers rose to an impressive 4,230 cars in the third quarter. With only a moderate pickup in third-quarter assemblies, backlogs at the end of September were 9,578 units, ensuring that carbuilders would have hefty backlogs as 2015 unfolds. And the outlook for grain will also support further gains in demand for grain service cars.

“Orders for small-cube covered hoppers jumped to 16,597 cars in the third quarter. And, with orders through September far outpacing production runs, backlogs have expanded from 3,228 units at the beginning of the year to a very formidable level of 34,334 cars at the end of September We expect deliveries of 13,000 this year and 16,000 in 2015.

“Demand for coal cars expanded moderately in the third quarter. After only 154 cars were ordered in the second quarter, third-quarter orders amounted to 705 units. Still, the increase in third-quarter assemblies moderately eased backlogs from 2,140 cars at midyear to 2,092 units at the end of September. While electric utility coal consumption improved in this year’s first half, we expect limited demand for coal equipment until export markets rebound.

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“In spite of further idling of coal-fired capacity by the utilities and continued pressure by the Obama Administration and the Environmental Protection Agency, domestic coal consumption advanced 3.4% year over year in the first half of 2014. And though through July of this year, exports were running 15.5% below the comparable period of last year, we believe that over the longer term, coal exports will expand.

“Demand for intermodal equipment is gaining momentum.

First-quarter orders of 2,207 platforms were exceeded by orders of 3,313 platforms in the second quarter, followed by a further strong increase to 4,696 platforms in the third quarter. Backlogs at the end of September were 8,184 units, almost a tenfold expansion over opening year backlogs of 825.

And, we expect further gains in demand for intermodal equipment, longer term.

“Demand for non-intermodal flat cars is expanding rapidly.

After 1,050 units were ordered in the second quarter, thirdquarter orders amounted to 2,150 cars. As a result, backlogs expanded for the second consecutive quarter and now amount to 3,104 cars, the highest level since the first quarter of 2013.

Demand is being driven by autorack carriers. Given the expansion in North American light vehicle production as well as anticipation of further growth, we look for more gains in demand for the autorack carriers. We continue to look for deliveries of 3,000 Class F flats both this year and next.

“After 1,542 cars were ordered in the second quarter, there was no interest in mill gondolas in the third quarter, so acceleration in assemblies served to draw dawn backlogs to 2,228 cars at the end of September.

“Demand for tank cars continues to impress. After 10,628 cars were ordered in the second quarter, third-quarter orders amounted to 8,137 cars. In spite of a significant pickup in assemblies, end-of-September backlogs amounted to a healthy 51,582 cars. And, based on the latest projections of oil production and impending legislative issues, we look for further growth in demand for oil service tank cars. The anticipated growth in U.S. oil production, particularly from the Bakken oil shale formation, has been well documented.

“Spurred by the use of fracking, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year. Due to the rapid expansion in oil production and the lack of any significant pipeline additions, rail will continue to benefit, and we anticipate strong deliveries of oil tank cars throughout the forecast horizon.”

The record freight car backlog, said RSI President Tom Simpson, “is a number that had not been achieved since the late 1970s. Given the current annualized delivery rate of roughly 96,000 cars, it will take at least one year to work off the current backlog, even without additional orders.”

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On the regulatory front, the RSI Committee on Tank Cars (RSICTC) expects the U.S. Department of Transportation and Transport Canada to finalize rules governing the movement of flammable liquids by rail early in 2015. “RSICTC has submitted a comprehensive plan to both USDOT and TC arguing for a holistic approach to the issue that addresses rail operating issues and the proper classification of the flammable liquids,” said Simpson. “RSICTC also recommends steps to continue to remove risk from the tank car. The recommendations include new tank car standards and modifications to the current flammable liquid tank car fleet. RSICTC has proposed an achievable modification schedule that should not disrupt the movement of crude and ethanol by rail.”

“In 2015, the Obama Administration and the new, Republican-controlled Congress will have a full transportation and infrastructure agenda before them,” noted Simpson.

“Surface transportation reauthorization legislation, Moving Ahead for Progress in the 21st Century (MAP 21), extended by the last Congress, expires at the end of May 2015.

Congress will again confront the need to reauthorize or extend federal transportation programs and answer the fundamental question of how to pay for it. Embedded within MAP-21 reauthorization debate will be the issue of allowing bigger and heavier trucks on our nation’s highways,

26 RAILWAY AGE December 2014

reauthorization of the section 130 highway rail grade crossing safety program, funding for Operation Lifesaver, and perhaps a dedicated source of funding for intercity passenger rail.

“Additional rail issues debated could include extending the short line infrastructure tax credit, preserving balanced regulation through Surface Transportation Board reauthorization, Amtrak reauthorization, reforms to the Railroad Rehabilitation and Improvement Financing (RRIF) program, rail safety and operations, as well as the impending deadline for PTC. Add to that list nomination hearings for new FRA and PHMSA Administrators, and the Congressional rail agenda seems daunting. But the supply industry will continue to be heard on Capitol Hill and within the executive branch in pursuit of our industry’s legislative and regulatory goals. Our mission is to have a proactive legislative and regulatory strategy.”

The strength of the railway supply industry is perhaps best indicated by the strong interest shown in Railway Interchange 2015, scheduled for October 4-6 in Minneapolis, with outdoor locomotive, rolling stock, and M/W machine exhibits. “RSSI, REMSA, and RSI have expanded the indoor venue to include the entire Minneapolis Convention Center to accommodate the growth this event has enjoyed,” said Tom Simpson. “Our portion of the Convention Center is already nearly 50% subscribed.” RA

PARTNERS IN TRANSIT

UTA’s FrontRunner South project, built by a joint venture of Stacy and Witbeck, Inc. and Herzog Contracting Corp., utilized a Contract Manager/ General Management model.

By MISCHA WANEK-LIBMAN, Engineering Editor

Contractors with transit project experience rely on solid communication, developing a team culture and enhancing relationships to get them to a successful result.

T

ransit construction projects come with their own set of unique challenges, be it from the project alignment, political pressures, or financial constraints. Railway Age touched base with the past winners of the National Railroad Construction and Maintenance Association (NRC) Rail Construction Project of the Year award, which all happened to involve transit projects, to see what practices each adopted when working toward a successful outcome for their projects.

DEVELOPING AN “US” CULTURE

Stacy and Witbeck Inc. and Kiewit Western Co. (SWK) won the inaugural NRC award in 2011 for work performed on the West Valley TRAX Light Rail Project for Utah Transit Authority.

SWK had to deal with cost estimates that were over budget, delayed right-of-way acquisitions, stalled third-party utility relocations, soil conditions and alignment issues, and constructing a 780-foot, three-span curved bridge structure over an active Union Pacific classification yard.

December 2014 RAILWAY AGE 27

PARTNERS IN TRANSIT

A CMGC partnership enables contractors to solve issues alongside the owner prior to construction.

UTA’s FrontRunner South rail line, linking Salt Lake City and Provo, Utah, opened in late 2012.

Construction on the $199 million, 5.1-mile extension began in June 2008; the line opened for service on Aug. 2, 2011. SWK credits close collaboration with stakeholder agencies and the public with its ability to complete the project one year ahead of schedule and under the initial project budget of $202 million.

Ryan Snow, who served as project manager and is currently vice president for Modern Railway Systems, a subsidiary of Stacy and Witbeck Inc., said the number one issue regarding the relationship between contractors and transit agencies is communication.

“From day one, we put one another in each others’ offices.

There were no secrets, there was open dialogue, and we worked together as a team to solve project issues rather than point fingers. I think that really translated into a successful project,” said Snow. “This project, like all projects, had its share of challenges, and it’s easy to start getting defensive in those situations and try to figure out whose responsibility it is. But when you tackle the challenges as ‘us vs. the challenge’ rather than focusing on figuring out who is culpable, then it really becomes 28

RAILWAY AGE

December 2014

a successful project because you get over the issue and you don’t focus on the reason behind it.”

Snow also points out that the project delivery method, Contract Manager/General Contractor (CMGC), allowed SWK to partner with UTA from the earliest stages of the project’s design and gave SWK a chance to solve many potential problems prior to construction.

“What was truly unique about our relationship with UTA was that the CMGC model brought SWK, the contractor, on as a partner long before the design was finalized, and it allowed us to provide constructive feedback throughout the design process to be more cost efficient and more schedule efficient,” said Snow.

PUTTING THE PROJECT FIRST

Another award-winning project that utilized CMGC and, coincidentally, was for UTA, was the FrontRunner South line, built by a joint venture of Stacy and Witbeck, Inc. and Herzog Contracting Corp.

The FrontRunner South project is part of UTA’s FrontLines 2015 program, which is composed of five UTA rail lines that will be in operation by 2015 and will expand the existing rail network by 70 miles. The FrontRunner South project scope of work included 30 bridges, two million cubic yards of earthwork, 50 miles of roadbed preparation and trackwork, 40 joint (with UP) at-grade crossings, signaling work, and station construction. Construction began in August 2008; the line began carrying commuters between Salt Lake City and Provo in December 2012.

Juggling the various elements of the 45-mile, $525 million regional/commuter rail project was a challenge unto itself, but the joint venture also had an impeccable safety record.

The project had more than two million man-hours worked without a single lost-time accident.

Clayton Gilliland, project manager with Stacy and Witbeck, said key elements that made this project successful included the development of a “Project First” culture, where the needs of the job came before the needs of any individual team member; developing a compatible solutions-based culture among the owner, contractor, and designer; fair and clear risk allocation; developing a team environment through co-location and preconstruction phase, and having quarterly incentive review sessions to serve as a catalyst for frank discussions on contractor performance/expectations and develop issue resolution.

Gilliland points to the project team’s previous experience with CMGC, as well as similar experience working with UTA on the Frontrunner South project that allowed for efficient coordination with major project stakeholders, which also led

PARTNERS IN TRANSIT

to a comprehensive project understanding and equated to cost certainty. No contractor initiated changes on the project.

Much of the Frontrunner South alignment was constructed in close proximity to a Union Pacific main line.

In addition to strong relations between project stakeholders and subcontractors, Gilliland said the project team had an excellent understanding of UP’s expectations, as well as good working relations, which translated into improved efficiencies when the line was being built so close to the active freight route.

CONNECTING CLIENT AND CONTRACTOR

Delta Railroad Construction, Inc., took on its largest project in company history when it was awarded the $81 million trackwork contract for the first phase of the Dulles Corridor Metro Rail project. The scope of work called for Delta to install more than 115,000 feet of track, as well as 11 crossovers and 17 turnouts, over two years. Following delays outside Delta’s control, the two-year window was then compressed into one year.

Delta had to meet two sets of expectations of the new line’s owner and its operator, perform work within one of the most populated areas in North America, and employ innovative construction practices in order to complete the project.

For the Dulles Corridor Metro Rail project, Delta Railroad Construction, Inc., designed and constructed specially made side formwork and end-dams for direct-fixation track.

Delta designed and constructed specially made side formwork and end-dams for the direct-fixation track. According to the company, the forms were constructed to allow a monolithic pour of concrete that included the plinths and third-rail pedestals.

Wishing you happy holidays and safe travels in the year ahead.

December 2014 RAILWAY AGE 29

PARTNERS IN TRANSIT

Delta also manufactured a tie handler that attached to an excavator to unload and stage 35,000 8.5-foot concrete ties in an effort to increase safety and production in the narrow work area. The company says it would have used a front-end loader with forks, but there was no room to maneuver a loader to handle the ties.

Larry Laurello, president of Delta Railroad Construction, said communication and patience can help navigate any potential issues regarding project specifications and construction best practices, but stressed that it is critical to have an understanding of specifications from the beginning of any project (from both the contractor and project owner).

Laurello also believes addressing and resolving issues as they come up is a better practice than leaving potential issues to be dealt with at the end of a project. The way to do this, he says, is to make sure there is a personal connection.

“In today’s world, there is corporate sterilization, where you don’t get communication anymore from people,” said Laurello. “It’s important to have personal communication and a connection with the client and contractor. Even though it’s bucking a trend of not having the communication and the relationship, it’s important to push through and have personal communication with your client.

Otherwise, you can’t compete.” RA

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December 2014

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MOVABLE BRIDGE BEST-PRACTICES

Even with the use of advanced technology, movable bridge machinery on an electrified railway remains a complex combination of structural, mechanical, and electrical systems.

By ANTHONY FAZIO, P.E. and LESTER DELAGO, for Railway Age

T

he geography of the North Jersey/New York metropolitan area, combined with the crisscrossing of this region by a plethora of rail lines, mandated many rail crossings occur navigable waterways. A large number of these consist of movable bridges of various configurations—bascule, lift, and swing—the majority of which carry electrified passenger railways. Extraordinary measures are taken by a railroad’s professional and maintenance engineering staff to ensure safety.

Even with the use of advanced computer technology and electronics for controls, movable bridge machinery on an electrified railway is a combination of structural, mechanical, and electrical systems and sub-systems. While redundant system checks are used for safety (to guard against the possibility of a false clear), multiple levels of redundancy applied to a vital (fail-safe) system will reduce system availability.

While designs of individual bridges may vary, the critical mechanical and structural elements are common: CENTERING DEVICES Primarily on swing bridges, the centering device is a large metal bar that aligns and locks the swing span to the adjacent bridge spans in a vertical direction.

32 RAILWAY AGE December 2014

WEDGES: Wedge-shaped retractable bridge bearings that physically lift the swing span and transmit the load directly from the movable span to the bridge pier when the bridge is in the closed position. The wedges sit on a steel plate called wedge shoe or wedge bed. When the wedges are withdrawn, the dead load of the movable swing span completely shifts to the center bearing in order to swing the span open.

SPAN LOCKS: Large metal bars affixed from the movable bridge span and extend horizontally into a socket on the approach spans when the bridge is closed for train traffic. The span physically locks the movable span down to the adjacent fixed spans. They are particular to lift and bascule spans.

MITER RAILS: Rails that overlap from the movable span to the fixed span. They provide a smooth transition for the wheel of the railcar from the rail on the approach (fixed) span to the movable span. There are many different types of miter rails. Some types include High Speed Long Point Miter Rails, Standard PRR Miter Rails, and Rider Rails.

EXPANSION RAILS: Rails used at approaches to movable bridges. Rail length has a tendency to increase with

increasing temperature; the expansion rail assembly ensures that temperature changes do not change the length of the rail near the movable-to-fixed span transition area. The device allows longitudinal movement of the expanding rail to slide past a fixed and firmly anchored rail. Increased rail length and compression forces near a movable-to-fixed span transition zone, if not addressed, could disrupt miter rail-tobridge interface tolerances, and ultimately make closing a movable span impossible.

DARLINGTON COUPLERS: Large knife switches designed to carry track circuits. The blade travels with the movable span and the receiver stays with the approach span.

CATENARY SLED: A large frame that extends from the movable span to overlap on the approach fixed span that supports the catenary wire. This frame retracts every time the movable span is opened. The purpose is to have an overlap in the catenary for a smooth transition of the train’s pantograph resulting in decreased electric arcing.

INTERLOCKING: A series of devices that are interlocked for train control. The entrance to an interlocking is controlled by a signal. Interlockings have a predefined operating sequence through the use of solid-state microprocessors or complex relay circuits and electromechanical devices. Movable bridges are considered interlockings.

RELAY: An electrically operated switch that uses an electromagnet to move a set of contacts (or multiple sets of contacts) in order to energize another electrical circuit (or circuits). Relays are either on (energized) or off (de-energized). Relays can also be solid-state and are used extensively in engineered configurations for interlocking controls.

TRACK CIRCUIT: A low-voltage electrical circuit used to check occupancy of a section of track by using the rail as its conductor and a train to ground circuit. The grounded circuit shows occupancy of that circuit by de-energizing a relay.

Operation of these devices, to the allowable error tolerances and in the prescribed sequence, must be verified prior to operating a train over the structure.

CONTROL AND INDICATION TECHNIQUES

There are two groups of safety critical electrical circuits found on movable bridges for both indication and control of the bridge apparatuses: Bridge Department circuits and Signal Department circuits. The latter are part of the train control system.

Bridge Department indication circuits are essential to the primary (motor power) bridge operating circuits, whose main function is to open and close the bridge. Signal Department circuits are essential in determining if the movable bridge is ready and safe for train movement. The Bridge and Signal System indication systems are separate and operate independently of each other. They are, however, integrated in such a fashion that they inhibit the operation of certain elements of the other system, depending on the mode (opened/closed/in transition) of the bridge. For example, when a “proceed” train signal is displayed for train movement, the Signal System inhibits the bridge control circuits from operating any movable components such as miter rails and wedges. At the same time, when Bridge

Long-point miter rails equipped with a Darlington Coupler, a large knife switch designed to carry electrical current.

Systems are not in a safe position for train movement, the Signal System is inhibited from displaying favorable signals over the bridge.

Position-indicating devices that railroads commonly use are electromechanical devices called Circuit Controllers. They indicate position of movable bridge components to a microprocessor or a relay-based control circuit. Highly robust devices, they’re well suited to the challenging environment (temperature, ice, impact load) associated with railroad movable bridges. They convert rectilinear motion, such as the movement of a shaft along its line of travel, to rotational motion, which is used to open and close electrical contacts.

Indications achieved through use of Circuit Controllers are either on or off; that is, the device is either in a position that allows a circuit to be “made” or it is not. The intermediate position of the device is not measured as it might be, for example, through the use of an LVDT (Linear Voltage Displacement Transducer) and is not relevant for the function of the bridge. The logic controller only needs to know if the device has achieved the required position and clearance for the next sequence of a bridge opening operation or that the device is down and locked into position for train traffic. The sole exception to this, however, is the actual position of the movable span. This position (as rotation or translation) is always transmitted to the Bridge Tender either mechanically or electrically. For example, lift bridges are usually lifted only to what is required to allow river traffic safely under the movable span. Moving a lift span to the top of its tower will increase maintenance costs and add to opening time, causing delays in high density rail systems. Therefore, intermediate height of a lift span is pertinent information.

Bridge circuit controllers are typically utilized in low voltage circuits to indicate to the bridge logic controller the position of a movable component. This information is utilized by the logic controller to determine when higher voltage and current circuits should be either activated or deactivated, via electrical contactor, to motors that move bridge components like miter rails and wedges. In the railroad industry, Circuit Controllers that are commonly used are U5 Boxes, GRS Boxes, and Gemco Boxes.

December 2014 RAILWAY AGE 33

MOVABLE BRIDGES

The sequence of operation for a movable bridge, such as a swing bridge, is a series of precise and calculated events.

All movable bridges on main line railroads operate under similar premises. However, a modern swing bridge is the most complex. From the moment a mariner calls the Bridge Tender for an opening, there are numerous checks that the Signal System executes electrically before the Bridge Tender’s control panel is even energized. From the perspective of railroad operating rules, the movable bridge is classified as an Interlocking; the entrance to it is governed by a controllable signal. The Bridge Tender notifies the Train Dispatcher of a request to open the bridge, who puts in a request to release the bridge for local control to the Bridge Tender.

SAFETY FIRST

However, the bridge cannot be released until certain criteria are established by the Signal System. First, all signals at the entrance to the bridge are at “stop.” Second, no train can be detected on the bridge or its approach. The controllable signals must be at stop for a pre-determined amount of time, so that a train approaching the bridge has adequate time to safely stop prior to reaching the stop signal. Also if a train is on the bridge, the train has the time to clear this section of railroad. The occupancy of the bridge is also checked for traffic by the track circuit relay to ensure the bridge is not released with a train sitting or traveling on it.

Other features used on railroad movable bridges are derails on the approaches. They are designed to derail a train that violates a stop signal.

Once the conditions have been met by the control logic in the Signal System, the dispatcher can now “unlock” the bridge. This request is via a control circuit to check all of the required conditions. If met, the unlock relay in the bridge 34 RAILWAY AGE December 2014

Self-aligning end wedge equipped with a U5 Circuit Controller on Amtrak’s Spuyten Duyvil bridge in New York City (left). Miter rail with lock rod and PRR-style bayonet box (right). Miter rails provide a smooth transition from the rail on the approach (fixed) span to the movable span.

energizes the bridge control panel with electrical power, usually 60 Hz AC commercial power. The Signal Department power for indication of devices is typically low-voltage DC. Also, audible alarms on movable bridges are mandatory.

The alarm is considered a safety-critical item and is often directly wired to the unlock relay so that employees are alerted of impending bridge movement at the moment the bridge is unlocked to open. Less-sophisticated systems employ Standard Operating Procedures (SOPs) that require Bridge Tenders to sound alarms before any bridge opening.

The purpose of the SOP is to establish a rigid and mandatory function for a Bridge Tender to replace that particular function of a pre-engineered controlled system.

At this point, the Bridge Tender has full control of the system, and the operation transitions that of the Bridge Department’s. The modern swing bridge’s control panel typically indicates whether a device is extended or retracted.

All of these different systems are usually driven by electric motors and indicated for position and current by Circuit Controllers. All electric motors have a motor brake to physically lock the device they are controlling when the motor is not energized. Motor brakes are important, because devices such as wedges would push themselves out from the weight of the bridge without a brake. It is not uncommon, and is actually a benefit, to have the ability to manually crank each one of these mechanical bridge components in the event of a motor or power failure.

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MOVABLE BRIDGES

During the opening sequence, the first bridge subsystem energized on electrified railroads is the catenary sled subsystem. It is electrically impossible to skip one of these subsystem steps; each must be performed in a sequence in order to go to the next step to prevent physical damage to equipment (swinging a bridge with devices still engaged).

Once the Bridge Tender receives indication that both catenary sleds are lifted or retracted, the bridge’s centering devices are pulled. The next step typically is to pull center wedges. However, this is predicated by structural design of the bridge. Also, some swing bridges do not have center wedges because their center bearings are designed to transmit live load. Once center wedges are pulled, the Bridge Tender pulls the end wedges and lifts the miter rails as one subsystem. Miter rails and end wedges can be operated by the same gear train and shafting, The miters are geometrically arranged to lift slightly before the wedges pull, so that they are not damaged when the bridge settles onto its center “swing bearing.” Miter rails and wedges still get their own Circuit Controllers despite sharing drive machinery.

After all these conditions have been met, the swing subsystem is nearly prepared to engage. DC drive motors, in past practice, have been favored for this subsystem function because traditional DC motors are controllable at various speeds for a smooth opening/closing. Motor-Generator Sets (MG Sets), Thyristor Drives, and Vector Drives are common motor control systems used for this phase of an opening.

The bridge has one final sequence before swinging: The “machine” brakes must be released. Machine brakes are drum or disk brakes on the main machinery shaft. Once electrically released, indication is sent to the bridge control system and the bridge can swing.

For lift and bascule type bridges, the machine brakes are not released until the energy is sent to the main drive motor through a relay that picks up within the motor circuit. The relay releases the machinery brakes while the drive motors are energized. As soon as the drive motors are de-energized for any reason, the brakes are reset. This is so that the movable span is under full control of either the motor or the brake, to control the span’s acceleration due to gravity.

36 RAILWAY AGE December 2014

Movable bridge controls at DOCK Bridge on the Northeast Corridor, just east of Newark Penn Station (left). Rotary cam boxes are used to open and close contacts (right).

A rotary cam box, typically a Gemco Box, indicates the position of the bridge with a unique gear ratio to each swing bridge for purposes of opening and closing contacts. This rotary cam box indicates when the bridge is nearly open, fully open, nearly closed, and fully closed.

At nearly open/closed, the speed of the bridge is slowed or “ramped” by the drive motor to slow the inertia of the bridge.

At fully opened/closed, the power to the motor is cut off and the machine brakes are set (the brakes are momentarily released while centering device is driven after swinging closed).

CLOSED AND LOCKED?

Once the bridge is closed, its control is returned to the Train Dispatcher, and power from the bridge’s control system is removed via release relay. Before the Train Dispatcher can display a signal for train movement on the bridge, the Signal Department’s vital circuitry performs checks on every safetycritical device to insure that all movable components are in their proper position to allow for safe train movements.

Often, the Signal Department does this by a separate set of Circuit Controllers. Only after this is confirmed will the signal system permit the movement of trains.

A noteworthy part of this process is the Signal Department’s Cycle Check on pertinent equipment such as miter rails. This insures that the equipment being checked, such as miter rails, are in fact lifted for the bridge opening and reseated after the opening, completing the cyclical process of lifting and seating. This ensures that a Signal Department Circuit Controller is not malfunctioning or seized. It is also a check on the condition of the miter rail or other Bridge Department device. Without the Cycle Check, Circuit Controllers that are seized in place could still display a signal to permit train movement, regardless of position and condition of the miter rail. The Signal Cycle Check is independent of the Bridge Department’s opening sequence.

Integration of these subsystems and devices is complex.

The Signal Department requires a higher level of accuracy in

MOVABLE BRIDGES

its system checks than the Bridge Department does for each moving bridge apparatus to accommodate safe train movement. For example, Bridge Wedges must be driven within one inch of their seated location since they are movable devices that, when properly driven, transfer the live load of a locomotive from the bridge superstructure to the pier.

Improper driving and seating could lead to derailment. This is an FRA-mandated requirement for the Signal Department.

Also, miter rails that are more than 3/8-inch from the proper seated position required for train movement must not display a signal for train movement. The 3/8-inch tolerance for obstructed rail is also integrated and consistent with the Track Department’s requirements for acceptable railhead wear on miter rails. These tolerances must be tested every month by the Signal Department. The Bridge Department provides a support role in these tests.

A position-indicating device currently being used to eliminate the moving parts and contacts of Circuit Controllers are Proximity Sensors. These were originally intended to augment the conventional Circuit Controller in places like the heel of a miter rail, where high cyclical stresses are induced from the machinery, bending the rail upwards for clearance to swing. However, at some locations, they have been used as a full replacement of Circuit Controllers. These devices essentially are indicating the presence of another

piece of metal in the required proximity to the Proximity Sensor by means of electrical induction.

Many railroads have worked to integrate different types of engineering in order to provide reliable and advanced designs. For example, PRR-type movable bridges utilized a machine to drive a one-inch-diameter blunt end locking rod from the movable span miter rail to the fixed side miter rail to physically lock the mating miter rails together. If the lock rod didn’t drive as a result of any misalignment, the track circuit didn’t carry to its receiver contacts housed in the Bayonet Box. A rod that did not drive after closing a bridge would not allow the Bayonet to carry the Signal Department’s track circuit and would display a stop signal.

Once the rod was driven, it provided shear strength to lock the two components of the miter rails together. This particular system was ultimately phased out and replaced with systems requiring less maintenance, such as Proximity Sensors to check the position of the rail.

Proximity Sensors are an effective tool and could continue to be used as supplement to other indicating devises. Locking rods with Bayonet Boxes have been viewed as troublesome. However, at places where miter rails are restricting train speeds, miter rail lock rods should be considered as a tool to effectively remove those restrictions. Using old ideas with new innovation, such as modern

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MOVABLE BRIDGES

drives, could create a better product.

There are other possibilities for improvements in control and indication for movable bridges. Currently, the wedge indicates from the movable span and sends the wedge position to the relay logic on the movable span. Logic indicates if the wedge is in the extended or retracted position as a surrogate measure for whether or not the wedge is seated and taking dead load, and suitable for transmitting live load.

Again, wedges retracted more than one inch should only display a stop signal to trains entering the bridge limits. The current industry standard does not indicate if the bridge’s wedges are properly sitting in their shoes on the pier.

Therefore, if the wedge shoe were entirely removed, the signal system could still display a favorable signal and allow a train over a bad, missing, or misaligned shoe. This is because the wedge is extended, but not necessarily seated. An enhancement could be to install proximity sensors mounted to the shoe, so that the wedge indicates in proximity to the wedge shoe. In other words, the Proximity Sensor would also indicate the condition or existence of the shoe/pier.

Other useful devices that could be applied are Remote Thermal Sensors to check the temperature of the bridge.

These devices have been used to monitor neutral rail temperature remotely in the summer months and assist in placing applicable speed restrictions. For the Bridge

Department, they would be applicable for opening restrictions due to extreme temperature. Also, the use of Impact Sensors could be used on movable bridges to provide maintenance information. Although rail impact loads at miter rails have been studied on a case-by-case basis, it is not common practice to continuously monitor them. High-speed, longpoint miter rails require more maintenance; constantly changing profiles in rail head from wear increase impacts on masonry piers and wreak havoc on mortar for stone masonry units, bridge timbers, steel ties, and wedges. Most common from impact loading at miter rails is damage to Circuit Controllers. Remote monitoring devices could be installed so that these impacts can be monitored remotely and trended to assist in scheduling maintenance.

Event recorders are used on some movable bridges. These are used to replay events and troubleshoot problems without having to use precious time to re-enact the failure mode.

Traditional event recorders take a reasonable level of competence to use. Modern recorders can be made with easier displays and designed to be more user friendly to the Bridge Tender, not just the technician (although they are ideally one in the same job). RA The writers gratefully acknowledge the technical review and comments of Steve Fiel, Irfon Oncu, P.E., and A.E. Fazio, P.E.

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Guide to Locomotive Electrical Maintenance • BKGLEM • $43.50 Diesel Theory - Principles Explained • BKDT • $24.95 Maps & Atlases

Canadian Rail Atlas • MPCANAT • $76.95

Railroads of Mexico Wall Map (laminated) • MPRRMEX • $99.00

Emergency Responder’s Guide to Railroad Incidents • BKERGRAIL • $33.00

Professional Railroad Atlas of North America • BKATLAS • $77.95

Elements of Train Dispatching, Vol. I • by Thomas White • BKETD1 • $44.95

Daily Locomotive Inspection (DVD format) • DVLOCO • $249.00

Railway Operations and Control • BKROC • $39.95

Railroad Hearing Conservation Training (DVD format) • DVHEAR • $165.00

Dispatching

Training Videos (DVD)

Elements of Train Dispatching, Vol. II • by Thomas White • BKETD2 • $41.95

Blue Signal Protection (DVD format) • DVBLUE • $210.00

Railroad Operations and Railway Signaling • BKRORS • $25.00

Big Boy: On the Road to Restoration

NEW !

Video documenting the first phase of this locomotive's journey to restoration. Historical footage of Union Pacific (UP) Big Boys in action plus exclusive Trains video of interviews and images of No. 4014 being removed from the Los Angeles County Fairgrounds and moved to Cheyenne, Wyo., for restoration.

90 minutes.

DVBIGBOY

Big Boy: Restoration

$29.99

Thank you for your business.

We look forward to serving you in the upcoming New Year.

Dictionaries

Dictionary of Railway Track Terms • by Chris Schulte • BKRTT • $32.50 The Carman's Dictionary • BKCD • $15.25

Transit

Urban Transit: Systems & Technology • BKUTST • $150.00 Urban Transit: Operations, Planning & Economics • BKUTOPE • $150.00

Fast Trains: America's High Speed Future •

by Emy Louie • BKFAST • $15.99

Shipping Rates: Add the following shipping and handling if your merchandise subtotal is: UP TO $10.00 10.01 - 25.00 25.01 - 50.00 50.01 - 75.00 75.01 -100.00 100.01 - 150.00 150.01 - 200.00 200.01 - 300.00

U.S.A. $4.10 7.20 9.80 10.90 13.00 14.80 17.30 21.00

CAN $8.55 11.80 15.70 19.80 26.10 34.20 45.90 57.20

U.S.A. CAN 300.01 - 400.00 24.70 68.90 400.01 - 500.00 28.50 80.40 500.01 - 600.00 32.50 91.70 600.01 - 700.00 36.50 105.60 700.01 & up (Appropriate charges applied)

To order, call

1-800-228-9670 or visit

www.transalert.com Simmons-Boardman Books, Inc. The Railway Educational Bureau 1809 Capitol Ave. Omaha, NE 68102 Ph: (402)346-4300 • Fax: (402)346-1783 email: orders@transalert.com

No. 2014 awaits commissioning with two other units in Providence & Worcester’s locomotive and car shop yard in Worcester, Mass.

BOSTON BARNSTORMER The 110-mph MPI HSP46 is the newest addition to MBTA’s regional

By WILLIAM C. VANTUONO, Editor-in-Chief rail locomotive fleet.

40 RAILWAY AGE December 2014

William C. Vantuono

T

he Massachusetts Bay Transportation Authority is taking delivery on 40 HSP46 diesel-electric locomotives, nos.

2000-2039, built by Wabtec subsidiary MotivePower Industries. These four-axle units are equipped with a 4,650-hp, four-stroke GE Transportation GEVO 45-degree V-12 that meets EPA Tier 3 emissions standards, and GEB-15 AC traction motors with individual axle control. Head End Power is supplied through the traction inverters. Weight on rail is 143.75 tons (287,500 pounds). Top speed is 110 mph.

Under the direction of Chief Mechanical Officer David Rutkowski, the Providence & Worcester Railroad is commissioning the HSP46 fleet at its Worcester, Mass., shops.

The HSP46’s distinctly American carbody shape and graphics are the work of industrial designer Cesar Vergara, principal of Vergarastudio. Vergara also designed the locomotive’s ergonomic and spacious control-desk-style cab. MBTA customers were asked to vote on four color schemes; the result pictured here is the winning design. RA

Caption here Transportation has leveraged the global reach of its venerable parent company to land.

Cesar Vergara inspects the HSP46’s desktop console-style cab (top left). The locomotive’s aggressively styled nose features recessed lights and a split windshield (top right).

Vergara, holding a foam-core model of the locomotive’s nose, explains some of his thinking behind what an “American” locomotive should look like to P&W Chief Mechanical Officer David Rutkowski (above). The builder’s plate uses special fasteners and heavy-duty adhesive to prevent theft (left). The HSP46 features recessed steps for maintenance (far left).

December 2014 RAILWAY AGE 41

People

Meetings

HIGH PROFILE San Diego’s Metropolitan Transit System has promoted 17-year MTS veteran Andy Goddard to Superintendent of Light Rail Vehicle Maintenance. With more than 17 years of experience working in the MTS LRV Maintenance department, Goddard is now responsible for developing and implementing the department’s strategic plan to maintain a fleet of 129 vehicles that provide 39 million passenger trips per year on a 53-mile LRT system. He will also oversee a $12 million budget and a staff of 72 electromechanics, Goddard linemen, and assistant linemen. Prior to his new role, he was MTS Assistant Superintendent of LRV Maintenance for six years, where he developed and supervised the implementation and administrative plans for all LRV maintenance activities. He began as an assistant lineman in 1997.

January 7-10, 2015 2015 NRC-REMSA Exhibition Westin Diplomat Resort & Spa, Hollywood, Fla. Tel.: 202-715-2920, -2921; Email: soucie@remsa.org, or cbaker@nrcma.org; Website: www.nrcma.org/form3.cfm

CSX—Kellen Riley named South Carolina Industrial Development Manager.

Hill International promoted John Milano to Senior Vice President and Northeast Regional Manager.

PERMIAN BASIN RAILWAYS— Timothy J. Hammond named Regional Vice President-Operations, and Kurtis Lindsey named Director-Permian Basin Logistics, for the company, part of Iowa Pacific Holdings, LLC.

HNTB Corp. named Terry Nash Senior Project Manager for Transit and Rail and Associate Vice President, based in HNTB’s Bellevue, Wash., office. Jaidev Sankar, PE, named Project Director and Vice President, based in New York.

SUPPLIERS

Parsons Brinckerhoff—Periklis Papadopoulos named a Supervising Communications Systems Engineer in the New York office. Matthew G. Verhoff rejoins the company as a Principal Technical Specialist for Rail Operations and Planning, Austin, Tex.

A. Stucki Co. named Daniel Mahalcak as Vice President of Sales.

Auto Truck Group, Rail Ready Trucks Division, named Joe Foster as Midwest National Sales Manager.

Jesse Hopperstad appointed National Sales Manager, Western region. Bill Carey promoted to National Strategic Account Manager.

Cummins named Melina Kennedy General Manager, Global Rail and Defense businesses.

Gannett Fleming named Charles R. Lynch, PE project manager for the firm’s work to support Caltrain’s extensive modernization program, including the Peninsula Corridor electrification project. Jeffery A. Hurley named deputy project manager for the Caltrain project. Both will operate from the company’s San Bruno, Calif., office.

Harsco Rail appointed Mark Emmerson Managing Director for the United Kingdom.

42

RAILWAY AGE

December 2014

100 YEARS AGO in

January 15-16 11th Annual Southwestern Rail Conference: “Trains — Driving the Texas Economy” Holiday Inn Park Cities/SMU, Dallas, Tex. Tel.: 214=522-5525; Website: http://tms.us/tra.html February 18-20 International Railway Summit Co-sponsored by International Railway Journal and International Rail Infrastructure and Technology Summit (IRITS) Barcelona, Spain Tel: +44 1326 313945; Email: hello@irits.org; Website: www.railjournal.com

March 23-26 2015 Joint Rail Conference San Jose, Calif.

Email: CraneS@asme.org; Website: www.asmeconferences. org/JRC2015/index.cfm

March 28-31

(DECEMBER 1914) INT’L RAILWAY CONGRESS POSTPONED BY WAR Word has been received from Berlin that because of the war all preparations have been broken off for the ninth session of the International Railway Congress, which was to have been held there next June. The congress, whose membership consists of governments and companies operating more than half of the earth’s railway mileage, is perhaps the most important railroad association in the world. The German government was to have acted as host, and it was understood that Kaiser Wilhelm would have opened the convention.

2015 ASLRRA Connections Hilton Orlando, Orlando, Fla. Email: kcassidy@aslrra.org; Website: www.aslrra.org

June 23-26 Railroad Day on Capitol Hill Renaissance Washington, Washington, D.C. Email: kcassiday@aslrra.org; Website: www.aslrra.org

October 4-7 Railway Interchange 2015 Minneapolis Convention Center, Minneapolis, Minn.

Website; http:// railwayinterchange.org

Products ZTR offers overhaul technologies ZTR™ offers “flexible upgrade solutions for older locomotives to improve tractive effort, reliability, and locomotive health information, allowing customers to quickly upgrade their fleet performance,” according to General Manager Matthew Scott.

ZTR says “increasing demand for consumer and industrial goods, coupled with rising rail shipments of crude oil and agricultural products, is placing significant pressure on locomotives across North America. Add to this aging fleets and a shortage of new locomotives from manufacturers, and rail companies are trying hard to keep pace.” It has responded by releasing products to “improve locomotive performance while reducing installation and shop maintenance times.”

Those include BOA-WS™, which “improves wheelslip control, tractive effort, and locomotive reliability”;

KickStart™, “technology that improves starting reliability and battery health,”; and NCM™, a “locomotive communication and diagnostic solution.”

ZTR says these “improve the reliability of existing locomotives at a fraction of the cost of purchasing new.”

Tel.: 855-724-5987; Website: www.ztr.com.

New actuators from Southco, Inc. Southco, Inc., has expanded its line of mechanical actuators with two new styles that provide reliable actuation in heavy duty applications. The AC-10 and AC-15 Actuators are designed for use in rugged exterior environments.

The AC-10 features flush-mount installation and provides direct, single or multipoint actuation of a latch when used with cables. The AC-15 provides direct actuation and features a surface mount design to minimize protrusion. Available in both locking and non-locking versions. Combined with Southco R4 Rotary Latches and AC Cables, AC Actuators create a complete Rotary Latching System for secure, reliable remote latching.

Contact Southco, Tel.: 610-4594000; Email; southco.com/contact/en; Website: www.southco.com.

Roxtec CF F1 delivers fire protection Tulsa, Okla.-based Roxtec Inc. offers its CF F1 product line designed for applications in which high demands for fire protection must be met.

Developed specifically for the railway industry, CF F1 seals protect people and equipment against risks posed by fire, as well as water, gas, dust, vibration, and shock waves.

Roxtec CF F1 seals are practical where space is limited. Compact frames are available, as well as the regular Roxtec S, G, R, and RS frames.

Depending on the CF F1 product used, the single frame opening can hold up

to 60 cables, making them ideal for cabinets, compartments, enclosures and structures within rolling stock and trackside equipment.

The Retrofit feature of the CF F1 system enables sealing of preterminated cables, simplifying the installation process and cutting down on additional costs. CF F1 solutions are available in standard or special versions, depending on your needs for installation around existing cables.

Roxtec CF F1 solutions are spaceefficient, adaptable for various cable and pipe sizes, and easy to install, even around pre-existing cables and pipes. Roxtec seals are classified for NFPA 130 rating and ensure certified protection against gas, water, rodents, shocks, vibrations, noise, and electro-magnetic disturbance.

Contact Roxtec, Tel.: 800-520-4769; Email: marketing@us.roxtec.com; Website: www.roxtec.com.

IRECO all-steel flexible air brake hose support Bensenville, Ill.-based IRECO LLC’s new AAR S-4006 approved flexible Air Brake Hose Support is an all-steel design that offers resilience, durability, and energy absorption. It is not subject to ultraviolet degradation, nor is it affected by heat, cold, or sunlight. The spring compresses as force is applied to the Air Brake Hose Support so that the spring cannot be over-extended.

It is easy to install and adjust, and no tools are required. Contact IRECO, 805 Golf Lane, Bensenville, IL 60106; Tel.: 630-741-0155; Fax: 630595-0646; Email: sales@ireco.com; Website: www.ireco.com.

December 2014 RAILWAY AGE 43

Perspective MICHAEL SUSSMAN

Revitalizing direct rail service

N

orth America has yet to achieve the full extent of the railroads’ potential contribution to the economy, environment, and land use.

In spite of the good work of railroad developers, investors, and staff, as well as public sector support, railroads remain somewhat underutilized for moving goods and people.

Our freight rail system is already so robust that it is easy to miss the possibility of a continental surge in capacity and reach. But railroads are energy-, capital-, and space-efficient, and these benefits are key to our future. It is time to get working on the rail system that a growing, modern society ultimately needs to be successful and sustainable.

We can rally all stakeholders, including citizens, around a public-private growth strategy for rail transportation. But we have to start by making it safe to speak to the truth of the matter.

An important part of that truth is that, for North America to succeed economically and environmentally, it must reverse the ongoing decrease in direct rail service, the under-the-radar flipside of the burgeoning drive toward intermodal freight and unit-train logistics.

This decline in direct rail service takes many forms. From our vantage point in rail finance, we have seen the wideranging manifestations of this trend.

Million-square-foot Walmart warehouses are built truck-in and truck-out. Ethanol facilities in Iowa, built to ship by rail, instead ship product in trucks over rural roads to unit-train loading facilities.

From eastern Washington wheat to Nebraska corn, shippers are offered volume discounts to truck product to distant mega-loading facilities. Ironically, the market for shifting freight movements from truck to intermodal shrinks as the total truck drayage relative to the rail portion increases to reach locations that do not have, or use, direct rail service.

44

RAILWAY AGE

December 2014

The overarching drive toward larger shipments detracts from an efficient freight system that includes a robust network of branch rail lines. In a modern society, all regions, cities, and towns need rail lines to serve increasing population and freight demand. Yet, just since 2005, we have lost 3,500 miles of our rail system in the U.S., with thousands more miles endangered. More than 80% of U.S. towns are now served by truck only.

We are moving toward less transportation efficiency, not more.

North America must reverse the decrease in direct rail service.

Freight is transported on trucks over local roads and bridges that states and counties are hard-pressed to maintain, instead of on privately owned and maintained rail lines. Since truck shipments use two to five times more fuel than rail, the impact on the environment and our economy is wasteful and unsustainable.

Yet 90% of the potatoes shipping from southern Colorado are shipped by truck rather than rail, in spite of a 1,000-mile length of haul. Inbound materials to all Ford factories are delivered 58% by truck and 22% by rail. ArcelorMittal ships 55% of its outbound steel from 20 plants by truck. The myth is that trucks only move lighter-weight, higher-value consumer goods. Meanwhile, only 6% of aggregates move by rail.

As Philadelphia Eagles quarterback Nick Foles says, “We can fix our mistakes.”

There is little to be gained from blaming shippers, transportation providers, or policy makers. But the time has come to address the detrimental impact of

otherwise earnest individuals aiming to succeed in a marketplace that externalizes the costs to the environment, safety, congestion, and quality of life. Building a sustainable economy and environment starts with a marketplace that prices transportation services correctly by including all costs. Why delay?

As important as trucks are, we are relying on them much more than is healthy for the environment or the economy. Rail market share by tonnage in most states trails truck market share by 50%-90%. In Florida, for instance, freight rail tonnage in 2011 was 9% of the market share for trucking. Given the energy, capital, and space efficiencies of rail transportation, it is time to invest more in rail capacity.

Not that more money alone is the answer. Government rarely has enough capital to grow an industry, but it can “seed” private-sector capitalization.

Producing real results takes wholesystem investment strategies, thinking beyond typical public-private partnerships that, to date, have only focused on individual projects, not systems.

We can develop our infrastructure effectively and economically by instituting a comprehensive public-private sector action planning approach, rather than simply expecting that government funding or the marketplace will provide the answers. Intermodal can contribute to transport efficiency if we keep the whole system in mind. The current flood of public policy dilemmas requires this higher level of coordination, collaboration, and imagination. Unleashing the full potential of railroads is not about assigning, nor accepting, blame. As with many other challenges we face, the path to progress is built on our newfound capacity to work and think together.

Michael Sussman is President of Strategic Rail Finance and the founder of OnTrackNorthAmerica.

Ad Index Company

Phone #

Fax URL/Email address

American Railcar Industries

636-940-6020

636-940-6100

sales@americanrailcar.com

17

Amsted Rail Group

312-922-4516

312-922-4597

kskibinski@amstedrail.com

C2

Anchor Brake Shoe

607-257-7000

607-257-2389

paula@onlinesms.com

25

Beena Vision Systems, Inc.

678-597-3156

678-597-0156

info@beenavision.com

26

CIT

212-461-5713

212-461-5694 abby.cohn@cit.com

22

CMI-Promex

800-381-5808

856-351-1659 cmipromx@cmi-promex.com

35

Danella Rental Systems, Inc.

610-828-6200

610-828-2260

pbarents@danella.com

12

Dixie Precast

770-944-1930

770-944-9136

fbrown142@aol.com

14

Ellwood Crankshaft & Machine

724-347-0250

724-347-0254

ecgsales@elwd.com 13

Page #

Greenbrier Companies The

800-343-7188

503-684-7553

gbrx.info@gbrx.com

Herzog Railroad Services, Inc.

816-233-9002

816-233-7757

tfrancis@hrsi.com 15

9

Knoxville Locomotive Works

865-525-9400

865-546-3717

goklw.com/contactus

7

MTU

248 560 8484

248 560 8485

bryan.mangum@tognum.com

7

NRE

618-241-9270

618-242-8519 sales@nre.com

ORX

814-684-8484

glenn@orxrail.com

Plasser American Corp.

757-543-3526

757-494-7186

plasseramerican@plausa.com

Progress Rail Services

256-505-6402

256-505-6051

info@progressrail.com

23

Progress Rail Services

256-505-6402

256-505-6051

info@progressrail.com

30

Railquip Inc

770-458-4157

770-458-5365

sales@railquip.com

24

Railway Educational Bureau, The 402-346-4300

402-346-1783

bbrundige@sb-reb.com

RailWorks

866-905-7245

952-469-1926 jrhansen@railworks.com

29

Republic Locomotive

864-271-4000

864-271-5254

phaden@republiclocomotive.com

16

S & C Distribution Co.

708-396-1755

708-396-1754

info@sandcco.com

38

SMBC Rail Services LLC

312-559-4800

888-4RAILCAR

sales@smbcrail.com

37

Trackmobile LLC

706-884-6651 ext.229 706-884-0390

keithsellers@trackmobile.com

14

Transcore

214-461-6443

11 C4 5

39, C3

800-923-4824 www.transcore.com

3

The Advertisers Index is an editorial feature maintained for the convenience of readers. It is not part of the advertiser contract and Railway Age assumes no responsibility for the correctness.

Advertising Sales MAIN OFFICE Jonathan Chalon, Publisher 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7224 Fax: (212) 633-1863 jchalon@sbpub.com AL, AR, IN, KY, LA, MI, MS, OH, OK, TN, TX Emily Guill 20 South Clark Street, Suite 1910 Chicago, IL 60603 (312) 683-5021 eguill@sbpub.com CT, DE, DC, FL, GA, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA, WV, Canada – Quebec and East, Ontario Mark Connolly 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7260 Fax: (212) 633-1863 mconnolly@sbpub.com

AK, AZ, CA, CO, IA, ID, IL, KS, MN, MO, MT, NE, NM, ND, NV, OR, SD, UT, WA, WI, WY, Canada – AB, BC, MB, SK Heather Disabato 20 South Clark Street, Suite 1910 Chicago, IL 60603 (312) 683-5026 Fax: (312) 683-0131 hdisabato@sbpub.com BELGIUM, PORTUGAL, SWITZERLAND, GERMANY, EASTERN EUROPE, BALTIC STATES, MIDDLE EAST, SOUTH AMERICA, AFRICA (except South africa), far east (except Korea, china, hong kong, india), all others, tenders Louise Cooper International Area Sales Manager The Priory, Syresham Gardens Haywards Heath, RH16 3LB United Kingdom +44-1444-416917 Fax: +44-(0)-1444-458185 lc@railjournal.co.uk

SCANDINAVIA, THE NETHERLANDS, SPAIN, GERMANY, AUSTRIA, KOREA, HONG KONG, CHINA, AUSTRALIA, NEW ZEALAND, SOUTH AFRICA, RUSSIA, RECRUITMENT ADVERTISING Steve Barnes International Area Sales Manager The Priory, Syresham Gardens Haywards Heath, RH16 3LB United Kingdom +44-1444-416375 Fax: +44-(0)-1444-458185 sb@railjournal.co.uk Italy, Italian-speaking Switzerland Dr. Fabio Potesta Media Point & Communications SRL Corte Lambruschini Corso Buenos Aires 8 V Piano, Genoa, Italy 16129 +39-10-570-4948 Fax: +39-10-553-0088 info@mediapointsrl.it

Japan Katsuhiro Ishii Ace Media Service, Inc. 12-6 4-Chome, Nishiiko, Adachi-Ku Tokyo 121-0824 Japan +81-3-5691-3335 Fax: +81-3-5691-3336 amkatsu@dream.com CLASSIFIED, PROFESSIONAL & EMPLOYMENT Jeanine Acquart 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7211 Fax: (212) 633-1325 jacquart@sbpub.com

December 2014 Railway Age 45

PRODUCTS & SERVICES

TRAINING

Part 243 Training & Certification Part 242 Conductor Training Part 240 Engineer Training and re-certification -------------------------------------------------------Modoc Railroad Academy 916-965-5515 info@modocrail.com

EQUIPMENT SALE/LEASING

LOCOMOTIVE BATTERY “AMERICAN INGENUITY FOR A MODERN WORLD”

PROFESSIONAL DIRECTORY

STRATEGIC PLANNING: • Commuter rail tranSitionS • fra ComplianCe programS • operationS auditing

• MAINTENANCE FREE • ONLY 795 LBS • • PATENTED TECHNOLOGY • • 64V, 1600 CCA • BUILT IN CHARGER • OR TOLL FREE 888.901.9987

AGM64RR (3.375in x 5in).indd 1

THE NEW RAILWAYAGE APP FOR IPHONE AND IPAD

46

RAILWAY AGE

December 2014

AM ER IC AN

WWW.STARTPAC.COM

M AD E

Kansas City Office (913) 661-2424 OPERATIONS TRAINING & CONSULTING: www.tcsrailservices.com • engineer training & CertifiCation OTHER SERVICES: • eXCellent HiStory witH fra, ntSB • Staffing • interim management • meCHaniCal & part 238(Qmp)

22/09/2014 10:03

EQUIPMENT SALE/LEASING

WAREHOUSE / RR TRACK SPACE

WARREN, OH - 200k sq. ft. fenced warehouse, with security. Will subdivide.

Site is on NS delivery location with 8,000 RR track feet (150-car storage capacity) available. Call 304-545-3123.

EMPLOYMENT

For Sale 2001 & 2002 Trackmobile 4650TM Railcar Movers Dennis Beary Telephone 208.853.4900 Email dwbearyassocinc@gmail.com

Available For Lease ◆ 3,600 cu. ft. Open Top Hoppers. 45 degree slopes for aggregate, coke, coal, etc. ◆ Box Cars – 286K Gross Rail Load, 60’ 9” inside length, 12’ Plug doors.

For additional information and pricing, please contact John Goodwin PHONE (605) 582-8318 FAX (605) 582-8304 www.carmathinc.com

Transportation Technology Center, Inc. provides our customers with effective and efficient railway research, consulting, testing, inspections, training and technical support. We have two immediate openings for a Wheel Expert and a Rail Expert.

These positions are responsible for conducting testing and analysis for commercial clients, the AAR, AAR member railroads, the FRA, and other government customers in support of railway engineering related projects. Will provide senior technical leadership for on-site and off-site projects both in North America and overseas, and plays a leading role in the research and testing of railway wheels or rail steels. Will assist engineering and project management for staff coordination, budgetary and technical issues.

Minimum qualifications include Bachelor of Science degree in Engineering or Physical Science with a minimum of 10 years of experience applying engineering principles or an equivalent combination of experience and experience. Must have knowledge of metallurgy with respect to steel physical and mechanical properties; must have experience in contact mechanics of wheel/rail systems; must be familiar with North American railway wheel and axle, or rail standards and their analysis methods; must have good understanding of solid and fracture mechanics; must be familiar with advanced FEM proficiency in 2D and 3D analysis. Excellent communication skills, both verbal and written, are a must, along with demonstrable analytical capabilities. Apply on the Career Opportunities page at: www.aar.com TTCI is an Equal Opportunity/Affirmative Action employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability, or protected Veteran status.

RECRUITMENT

EDNA A. RICE, EXECUTIVE RECRUITER, INC (713) 667-0406 FAX (713) 667-1651 Web address: www.ednarice.com Email: resume@ednarice.com

EDNA A. RICE, President 6750 West Loop South Suite 735 Bellaire, Texas 77401-4111

MARKETPLACE SALES

Available for Lease 3600 cu ft Open Top Hopper Cars 100 ton Automated/Manual Ballast Cars 4480 cu ft Aluminum Rotary Open Top Gons Contact: Tom Monroe: 415-616-3472 Email: tmonroe@atel.com

Contact: Jeanine Acquart Ph: 212/620-7211 Fax: 212/633-1165 Email: jacquart@sbpub.com

ALL MAJOR CREDIT CARDS ACCEPTED

December 2014 RAILWAY AGE 47

Financial edge DAVID NAHASS

Service levels impact equipment markets

A

s the industry waits for the DOT and PHMSA to determine the future of the tank railcar that will carry crude oil and other flammable commodities by rail, industry insiders focus on other issues that remain relevant in the day-to-day management of railcar fleets and industrial businesses served by the railroads. One issue near the top of everyone’s list is concern about the efficiency (or lack thereof) of rail service throughout the North American system and what that says about capacity in today’s rail network and its ability to handle freight marketplace growth potential.

The issue is straightforward.

Carloadings, centered mostly on CBR growth (oil and sand) and including growth in grain and intermodal, have increased about 4.5% for the year vs.

2013. Growth projections are off the chart as a mix of energy and industrial infrastructure buildouts combine with decreasing percentages of truck loadings to drive future growth. That’s in addition to the projected shortfall in truck drivers and concerns about trucking hours-of-service requirements and labor force shortages But railroads seem to be struggling to keep up with the required increases in personnel and with the need to maintain and expand the existing rail network. This is in addition to the weather-related slowdowns that occurred as a result of the harsh 20132014 winter. As resources get stretched to the max, velocity decreases, dwell times increase, and transit times suffer. For example, the railroads have done excellent work using a fluid system to expand their presence in markets such as fresh-food transit on a transcontinental basis.

However, as service has suffered, so have the businesses relying on scheduled delivery service.

48

RAILWAY AGE

December 2014

For larger industrial companies not as absolutely reliant upon scheduled service, the impact has been significant as well. These companies, wanting to do more with less, instead find themselves having to source additional equipment to move product due to the decrease in service levels. Sources suggest that the service issues plaguing the system today are not likely to be

Some backlogs will rise until 2017. What happens when service returns to normal? resolved in the near future.

Overall, even the railroads acknowledge the difficulties in handling current and future traffic based upon projections for freight growth and the difficulty the railroads have had in staffing up to handle the growth. Add the projections for a harsh winter for 20142015, and you have the potential for additional downturns in service.

Not surprisingly, one angle on the issue of rail service and transit times is the impact on the equipment markets.

Try to get an off-lease railcar for any one of the basic bulk commodity groups and see how rates have been on the rise in every sector. Even coal cars have found stability at rent levels not seen consistently since 2008.

Cars built a decade ago routinely are changing hands at amounts equal to or higher than their original build cost.

This is happening in sand, steel, and grain. Cars that were trading at a fair

market value that were a bit oversold (to the low side), such as coal cars built in the mid 1990s or early to mid 2000s, have seen their values rise rapidly.

Some cars with good leases attached with an attractive mix of rent and term are trading for values that more than double the purchase price of the same off-lease car from ten months ago.

So what do investors in rail assets do?

Most are keeping assets on lease and raising rates whenever possible. New money is moving into the market and significant quantities of assets are changing hands at price points that should be making sellers blush and buyers weep.

Ongoing support from the Federal Reserve helps to fan the flames. Many in the railcar space are looking for investment opportunities. With new car backlogs out in many cases into 2017, investors in rail assets are struggling to find places to deploy capital today. It becomes the worst kind of “snake eats own tail” moment. Money is flowing into rail assets due to market strength.

More money flows in so railcar prices rise, so more money flows in, and so on.

When the railroads add crews, power up, and return the system to more balanced levels, equipment markets will hold their breath to see where the excesses show up first. Many parties are banking on small-cube covered hoppers for sand as a leading candidate for oversupply. If oil prices continue to drop, a slowdown in frac drilling could change some of the demand on rail assets, causing some service disruptions. Be careful what you wish for here. The industry is committed to sand and oil. Just as decreases in service impact the industry as a whole, a market shift in these commodities would impact builders, investors, shippers, and railroads across the board.

Questions? Set them free at dnahass@railfin.com.

Do you have the most up-to-date FRA Regulations?

Reb Says...

Use this handy index to verify that you have the most up-to-date version of the FRA regulations. The left-hand column lists the FRA Part number and the right-hand column list the latest revision date. Items highlighted in red denotes recent changes. (IFR = Interim Final Rule) FRA Part #

Last Update Effective:

FRA Part #

Last Update Effective:

FRA Part #

Last Update Effective:

40 . . . . . . . . .10-3-12 209 . . . . . . . .2-12-13 210 . . . . . . . .8-14-89 211 . . . . . . . .7-20-09 213 A-F . . . . .3-25-14 213 G . . . . . .7-11-13 214 . . . . . . . . .7-1-14 215 . . . . . . . .6-25-12 216 . . . . . . . .6-25-12 217 . . . . . . . .6-25-12 218 . . . . . . . .6-25-12

219 220 221 222 223 224 225 228 229 230 231

. . . . . . . . .5-6-13 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . . .1-1-14 . . . . . . . .6-25-12 . . . . . . .12-19-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12

232 233 234 235 236 237 238 239 240 242

. . . . . . . .6-25-12 . . . . . . . . .9-2-14 . . . . . . .10-21-14 . . . . . . .10-21-14 . . . . . . .10-21-14 . . . . . . . .6-25-12 . . . . . . . .1-28-14 . . . . . . . .1-28-14 . . . . . . . .6-25-12 . . . . . . . .6-25-12

The following is a list of booklets reprinted from the Department of Transportation Code of Federal Regulations 49 CFR Parts 200 to 399 that apply to the rail industry. They are printed in a convenient format and are kept current with updates from the Federal Register which may be supplied in supplement form.

Item FRA 50 or Code Part # Each more

209 211 BKTSSAF 213 BKTSSG 213 BKWRK 214 BKFSS 215 BKROR 217 218 BKRRC 220 BKEND 221 BKSEP

Railroad Safety Enforcement Procedures & Rules of Practice Track Safety Standards (Subpart A-F) Track Safety Standards (Subpart G) Railroad Workplace Safety Railroad Freight Car Safety Standards Railroad Operating Rules and Practices Railroad Communications Rear End Marking Device, Passenger, Commuter & Freight Trains BKHORN 222 Use of Locomotive Horns BKRFRS 224 Reflectorization of Rail Freight Rolling Stock BKHS 228 Hours of Service BKLSS 229 Locomotive Safety Standards BKSLI 230 Steam Locomotive Inspection BKSAS 231 Railroad Safety Appliance Standards BKBRIDGE 237 Bridge Safety Standards BKLER 240 Qualification and Certification of Locomotive Engineers BKCONDC 242 Conductor Certification BKBSS

232

Brake System Safety Standards

27.50

9.95 8.55 9.50 7.25 9.50

8.95 7.85 8.55 6.55 8.55

5.50 5.00

4.95 4.50

13.25 6.25

11.95 5.60

10.50 11.00 22.95 9.35 6.25 12.75 11.00 Each

14.75

9.90

9.90

25 or more

13.50 Each

Technical Manual for Signal and Train Control Rules.

Includes Part 233, 234, 235, 236 - Spiral Bound Order 25 or more and pay only $39.10 each

BKPSS

Passenger Safety Standards 22.80 Part 238, 239 - Order 25 or more and pay only $20.50 each

BKSTC

Signal and Train Control Systems Includes Part 233, 234, 235, 236 Order 25 or more and pay only $17.55 each

19.50

BKCAD

Drug and Alcohol Regulations in the Workplace Part 40 & 219

36.00

BKINFRA

Track and Rail and Infrastructure Integrity Compliance 33.00 Manual - Volume II, Track Safety Standards Update 1-1-14 Order 25 or more and pay only $30.00 each

1809 Capitol Ave, Omaha, NE 68102

Ph: (402)346-4300 • Fax: (402)346-1783 Email: orders@transalert.com

Dates: This regulation is effective January 6, 2015.

Mechanical Department Regulations A combined reprint of the Federal Regulations that apply specifically to the Mechanical Department. Spiral bound.

Part Title 210 Railroad Noise Emission Compliance Regulations 215 Freight Car Safety Standards 216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment 217 Railroad Operating Rules 218 Railroad Operating Practices - Blue Flag Rule 221 Rear End Marking Device-passenger, commuter/freight trains 223 Safety Glazing Standards 225 Railroad Accidents/Incidents 229 Locomotive Safety Standards 231 Safety Appliance Standards 232 Brake System Safety Standards

BKMFR

Mech. Dept. Regs.

Order 25 or more and pay only $24.50 each

8.50 5.60 11.50

BKTM

The Railway Educational Bureau

49 CFR Part 214, Railroad Workplace Safety, Part 232, Brake System Safety Standards and Part 243, Training, Qualification, and Oversight for Safety-Related: FRA is establishing minimum training standards for all safety-related railroad employees, as required by the Rail Safety Improvement Act of 2008 (RSIA). The final rule requires each railroad or contractor that employs one or more safety-related railroad employee to develop and submit a training program to FRA for approval and to designate the minimum training qualifications for each occupational category of employee. The rule also requires most employers to conduct periodic oversight of their own employees and annual written reviews of their training programs to close performance gaps. The rule also contains specific training and qualification requirements for operators of roadway maintenance machines that can hoist, lower, and horizontally move a suspended load.

Finally, the rule clarifies the existing training requirements for railroad and contractor employees that perform brake system inspections, tests, or maintenance.

46.00

$27.95

Part 242: Conductor Certification

The Conductor Certification rule (49 CFR 242) outlines details for implementing a Conductor Certification Program. The FRA implemented this rule in an effort to ensure that only those persons who meet minimum Federal safety standards serve as conductors, to reduce the rate and number of accidents and incidents, and to improve railroad safety. Softcover. Spiral bound. 124 pages.

BKCONDC

Order Now!

Conductor Certification Order 50 or more and pay only $9.90 each

$11.00

800-228-9670 8 a.m. to 5 p.m. C.S.T., Monday/Friday

www.transalert.com

Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN UP TO $10.00 $4.10 $8.55 25.01 - 50.00 9.80 15.70 10.01 - 25.00 7.20 11.80 50.01 - 75.00 10.90 19.80

Orders over $75, call for shipping

*Prices subject to change. Revision dates subject to change in accordance with laws published by the FRA. 12/14

Bob and the others like him here at ORX make us what we are: fully committed to getting you what you want, when you need it. Nothing will stop us. Either we'll find a way... or we’ll make a way.

December 7, 2013 – Bob takes his two boys, Tanner and Hunter, ice fishing. Things go smoothly because that equipment, too, is well-maintained and ready to go. Six perch, two crappies, and one great photo.

October 16, 2013 – A critical component in the underbelly of a critical CNC machine fails. We call the machine’s manufacturer to order a replacement part. Lead time: 14 weeks. Instead of accepting this set-back, Bob makes the part from scratch, and the machine is back in action the next day. And, if that weren't enough, he corrects the flaw in the part’s design that caused it to fail.

ORXceptional

Bob Gorman Senior Maintenance Mechanic

www.ORXrail.com | 814.684.8484