Railway age April 2018

April 2018

w w w. r a i lwaya g e .c o m

AILWAY GE S e r v i n g t h e r a i lway i n d u s t r y s i n c e 1 8 5 6

How Will

Tomorrow

Move?

Railinc 2018 Railcar Report

Fleet size remains steady-state

The P3 and LRT

Canada’s winning formula

Track Inspection Techniques railwayage.com

High-tech on the high August 2017 iron // Railway Age 1

There’s always a better way.

That’s what drives us.

We’re looking to tomorrow to solve your challenges today.

That’s why you’ll find GREX engineers out in the field partnering with

GREX Solutions

research institutions and universities on cutting-edge technologies.

We’re inspired to continually apply new ideas to our customer’s most

Translating Track Maintenance Into Savings and Safety

pressing challenges. And we’re working every day to apply this vision to our products so you can work safer and more efficiently than ever before. For GREX, delivering real rail solutions means always keeping one eye on what lies further down the tracks.

Contact GREX to discover what our technology can do for your railroad.

+1 512.869.1542 www.georgetownrail.com

© GREX 2018

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AILWAY GE

AUGUST APRIL 2018 2017

38

FEATURES

16 26 29

Class I Profile: CSX Life after E. Hunter Harrison

Passenger Rail P3s move LRT projects in Canada

M/W Focus: Track Inspection High tech meets the high iron

36

TTCI R&D

38

Freight Car Fleet Stats

One-million-mile M-976 trucks

Railinc’s annual assessment

DEPARTMENTS 4 6 7 8 43 43 43 44 45 46 47

Industry Indicators Industry Outlook Market Update People 100 Years Ago

COLUMNS 2 14 15 48

From the Editor Watching Washington ASLRRA Perspective Financial Edge

Events Products Advertising Index Professional Directory

On the Cover: A CSX SD40—older power, yet still pulling its weight.

Photo: William Beecher

Classified

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. 219, No. 4. Subscriptions: Railway Age is sent without obligation to professionals working in the railroad industry in the United States, Canada, and Mexico. However, the publisher reserves the right to limit the number of copies. Subscriptions should be requested on company letterhead. Subscription pricing to others for Print and/or Digital versions: $100.00 per year/$151.00 for two years in the U.S., Canada, and Mexico; $139.00 per year/$197.00 for two years, foreign. Single Copies: $36.00 per copy in the U.S., Canada, and Mexico/$128.00 foreign All subscriptions payable in advance. COPYRIGHT© 2016 Simmons-Boardman Publishing Corporation. All rights reserved. Contents may not be reproduced without permission. For reprint information contact PARS International Corp., 102 W. 38th Street, 6th floor, New York, N.Y. 10018, Tel.: 212-221-9595; Fax: 212-2219195. Periodicals postage paid at New York, NY, and additional mailing offices. Canada Post Cust.#7204564; Agreement #41094515. Bleuchip Int’l, PO Box 25542, London, ON N6C 6B2. Address all subscriptions, change of address forms and correspondence concerning subscriptions to Subscription Dept., Railway Age, P.O. Box 1172, Skokie, IL 60076-8172, Or call toll free (800) 895-4389, or (402) 346-4740. Printed at Cummings Printing, Hooksett, N.H. ISSN 0033-8826 (print); 2161-511X (digital).

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April 2018 // Railway Age 1

FROM THE EDITOR

AILWAY GE Subscriptions: 800-895-4389

Our Railway Man in Mexico

C

hris Aadnesen is retiring as Executive Chairman of Georgetown Rail Equipment Company, following a long and distinguished railroad industry career, 15 of them with GREX. If you don’t know Chris, you should. His career in the railroad industry spanned more than 40 years, and it literally encompassed the globe: CEO of Alaska Railroad Corp., Vice President of National Freight Rail Services for HNTB, CEO of Estonian Railways, Executive Vice President and Chief Operating Officer of Transportación Ferroviaria Méxicana, now Kansas City Southern de México (KCSM), President of Texas Mexican Railway Co., and Senior Assistant Vice President Transportation for Union Pacific, among other key roles.

Most significant in my mind, it was Chris who brought Mike Haverty’s vision of a seamless “NAFTA Railway” linking the U.S., Canada and Mexico to fruition. He led a group of senior rail industry executives who performed the due diligence work for Kansas City Southern in Mexico in the mid-1990s, when Ferrocarriles Nacionales de México was undergoing privatization. KCS, with partner Transportación Maritima Mexicana, successfully bid on the national system’s “crown jewel,” the 2,261-mile Northeast Railroad concession, comprised of the Nuevo Laredo-Mexico City main trunk, with connecting lines to ports at Lázaro

Cárdenas, Veracruz and Tampico, and running through important industrial centers in Monterrey and San Luis Potosí.

The Northeast Railroad was the most sought-after portion of the FNM concessions. It carried 46% of all rail freight traffic in Mexico and 60% of all freight coming from the U.S. In 1997, KCS and TMM bid $1.4 billion, winning the rights to operate the concession, paying 49% and 51%, respectively. In 2005, Kansas City Southern Industries purchased TMM’s share in TFM, giving it full ownership.

TFM was officially renamed KCSM. Critics and skeptics said that Mike Haverty was loco, that KCS had paid too much for the Northeast Railroad. But Mike, Chris and all the others who did the work and lined up the investors proved them wrong. And it was Chris who led the team of U.S. and Mexican railroaders who modernized the system, bringing it up to AAR standards, growing the business and returning traffic to the railroad.

Some of the most memorable moments of my time at Railway Age, now approaching 26 years, were spent with Chris and his colleagues on the high iron in Mexico’s high desert. Oh, the stories I could tell (all good, of course)!

Chris, puede usted tener buena fortuna dondequiera que la vida le tome, mi amigo!

WILLIAM C. VANTUONO Editor-in-Chief

Railway Age, descended from the American Rail-Road Journal (1832) and the Western Railroad Gazette (1856) and published under its present name since 1876, is indexed by the Business Periodicals Index and the Engineering Index Service. Name registered in U.S. Patent Office and Trade Mark Office in Canada. Now indexed in ABI/Inform.

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Industry Indicators Railroads Fear a Slow Order on Trade While talk of punitive tariffs and brewing trade wars stirred anxieties up and down the supply chain, rail watchers had to look hard to find any sustaining news in the monthly report of carload commodities. There was something of a post-New Year’s letdown, as rail volume was sluggish save for scattered modest gains or declines from the same month a year ago. Though there’s no apparent correlation, while Class I intermodal shipments moved ahead by 7%, container and trailer traffic plunged by more than 25% among short line carriers.

Railroad employment, Class I linehaul carriers, FEB. 2018 (% change from FEB. 2017)

Total employees: 144,815 % change from FEB. 2017: -2.71%

Transportation (train and engine) 59,847 (2.04%)

TRAFFIC ORIGINATED CARLOADS

FOUR WEEKS ENDING MARCH 3, 2018

MAJOR U.S. RAILROADS

by Commodity

FEB. ’18

FEB. ’17

% CHANGE

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, & Gravel Nonmetallic Minerals Stone, Clay & Glass Products Waste & Nonferrous Scrap All Other Carloads

83,871 3,258 38,085 24,488 130,474 40,425 344,453 4,502 14,077 21,267 15,478 14,741 37,544 15,324 70,210 90,280 14,404 27,106 13,417 24,737

88,583 3,600 37,089 24,555 126,188 38,937 350,254 4,953 12,965 22,469 12,968 16,653 36,759 15,199 73,493 83,951 16,436 27,813 15,269 22,760

-2.7% -9.5% 2.7% -0.3% 3.4% 3.8% -1.7% -9.1% 8.6% -5.3% 19.4% -11.5% 2.1% 0.8% -4.5% 7.5% -12.4% -2.5% -12.1% 8.7%

1,028,141

1,030,894

-0.3%

297,954

314,170

-5.2%

1,326,095

1,345,064

-1.4%

Total U.S. CarLoadS

Executives, Officials, and Staff Assistants 7,856 (-13.65%)

CANADIAN RAILROADS

Professional and Administrative 12,538 (-5.02%)

COMBINED U.S./CANADA RR

total carloads

Maintenance-of-Way and Structures 32,237 (-5.37) Maintenance of Equipment and Stores 26,746 (-4.28%) Transportation (other than train & engine) 5,591 (-5.03%) Source: Surface Transportation Board

HOW MANY EMPLOYEES DOES IT TAKE TO RUN A RAILROAD? On the surface, it seems like the Class I’s and Wall Street want to know the answer to that question.

Ask some shippers who have complained to the STB about deteriorating service, and they already know. For public consumption, the Class I operators continue to pepper their official social media accounts with “Help Wanted” posts, and executives have commented that hiring reliable employees in sufficient numbers remains one of their top priorities. Good help, it seems, is hard to find.

4 Railway Age // April 2018

Intermodal

FIVE WEEKS ENDING MARCH 3, 2018

MAJOR U.S. RAILROADS

by Commodity Trailers Containers TOTAL UNITS

JAN. ’18

JAN. ’17

% CHANGE

97,154 1,006,847 1,104,001

83,233 949,798 1,033,031

16.7% 6.0% 6.9%

4,360 264,305 268,665

4,269 244,736 249,005

2.1% 8.0% 7.9%

101,514 1,271,152

87,502 1,194,534

16.0% 6.4%

1,372,666

1,282,036

7.1%

CANADIAN RAILROADS Trailers Containers TOTAL UNITS

COMBINED U.S./CANADA RR Trailers Containers

TOTAL COMBINED UNITS

Source: Monthly Railroad Traffic, Association of American Railroads

railwayage.com

AILWAY GE

TOTAL U.S. AND CANADIAN CARLOADS, JAN. 2018 VS. 2017

1,326,095 FEB. 2018

1,345,064 FEB. 2017

Short Line And Regional Traffic Index CARLOADS

by Commodity

ORIGINATED FEB. ’18

ORIGINATED FEB. ’17

% CHANGE

45,386 19,802 23,426 10,116 22,596 6,024 9,219 2,973 15,254 7,989 1,812 2,292 16,625 37,979 9,357 78,049

39,603 22,839 21,034 10,096 24,722 5,525 8,222 2,994 15,270 8,130 1,823 2,052 15,034 51,153 9,698 73,784

14.6% -13.3% 11.4% 0.2% -8.6% 9.0% 12.1% -0.7% -0.1% -1.7% -0.6% 11.7% 10.6% -25.7% -3.5% 5.8%

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

Copyright © 2018 All rights reserved.

average weekly U.S. Rail Carloads: all commodities (not seasonally adjusted)

ARE YOU A RAILROAD OR SUPPLIER SEARCHING FOR JOB CANDIDATES?

280,000 270,000 2017

260,000 250,000

2018

240,000 2016

230,000 220,000

Visit http://bit.ly/railjobs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Data are average weekly originations for each month, are not seasonally adjusted, do not include intermodal, and do not include the U.S. operations of CN and CP. Source: AAR

To place a job posting, contact: Jeanine Acquart 212-620-7211 jacquart@sbpub.com

April 2018 // Railway Age 5

railwayage.com RA_JobBoard_1/3Vertical.indd 1

8/17/17 10:59 AM

Industry Outlook Siemens and Alstom Agree to Merger Terms

FRA’s Ron Batory to Railroads: We’re Here for You, and for PTC Characterizing progress on Positive Train Control as “uneven,” Federal Railroad Administrator Ron Batory pledged that the agency he now officially leads “is taking a proactive approach” to ensure railroads acquire, install, test and fully implement certified PTC systems in time to meet the congressional interim deadline of Dec. 31, 2018. “FRA is committed to doing its part to ensure railroads and suppliers are working together to implement PTC systems,” Batory said.

This is the first time that FRA has publicly —and correctly—referred to the Dec. 31, 2018 date as “interim.” FRA on March 20 released a status update on its efforts to assist railroads in implementing PTC, along with the railroads’ self-reported progress for the fourth quarter of 2017.

“The latest data confirms that railroads continue to make progress in installing PTC system hardware, with 15 railroads reporting they have completed installation of all hardware necessary for PTC system implementation and another 11 railroads reporting they have installed more than 80% of PTC system hardware,” Batory noted. “In addition, all but three railroads reported having acquired sufficient spectrum for their 6 Railway Age // April 2018

PTC system needs.”

Between Jan. 2 and Feb. 14, 2018, FRA hosted face-to-face meetings with executives from each of the 41 railroads subject to the statutory PTC mandate. The purpose of the meetings was to evaluate each railroad’s PTC status and learn what remaining steps each needs to take to have a PTC system fully implemented by the December 2018 interim deadline, or, at a minimum, to meet the statutory criteria necessary to qualify for an alternative schedule—essentially, an extension to Dec. 31, 2020.

As a result of the meetings with railroads, FRA is now conducting meetings with PTC suppliers “to learn more about their capacity to meet the high demands for railroads’ implementation of PTC systems in a timely manner,” Batory said.

Fourth-quarter 2017 data, current as of Dec. 31, 2017, shows PTC systems are in operation on approximately 56% of freight railroad route-miles that are required to be governed by PTC systems—up from 45% in the third quarter and 16% on Dec. 31, 2016.

Passenger railroads have made less progress, with PTC systems in operation on only 24% of required route-miles, unchanged from the previous quarter.

THE MERGER OF Siemens’ Mobility business unit and Alstom Transport reached a milestone on March 23 with the signing of a Business Combination Agreement (BCA) setting out terms and conditions agreed to by the two companies.

Siemens proposed the nomination of Roland Busch, currently a member of the Siemens management board, as chairman of the combined entity’s board of directors. Busch would take on this role in addition to his current responsibilities.

Yann Delabriere, current lead director of Alstom’s board, would be appointed vice chairman as an independent director.

Alstom Chief Executive Officer Henri Poupart-Lafarge will continue as the CEO of the combined company, and will also be a member of the board of directors. Both of these appointments are subject to approval by Alstom shareholders.

“Both companies are working diligently and in a very good spirit to progress toward closing,” said PoupartLafarge. “These first nominations illustrate the companies’ commitment to balance the governance of the future, combined company.”

Roland Busch added, “Siemens Alstom has all the prerequisites to become a European success story. I’m honored to take on this important role for a very attractive company in a growing market.”

The board of the combined company will comprise 11 members, six of whom, including the chairman, will be appointed by Siemens. The remainder of the board will consist of four independent members and the CEO. Approval of the transaction by Alstom shareholders is anticipated at the next shareholder meeting in July.

The merger is due to be finalized by the end of 2018, and is subject to regulatory approval. railwayage.com

Market CP Goes Green with Thermo-King Canadian Pacific has selected Thermo King SLXi-DRC refrigeration units for a large purchase of DRCs (domestic refrigerated containers). CP is the first Thermo King customer to purchase the SLXi-DRC unit in North America.

Thermo King and CP collaborated on an extensive, four-month field test of the SLXi-DRC to verify performance of the technology in the rugged environment and climate of Canadian railways.

The SLXi-DRC has a slim profile that increases cargo capacity by providing room for an extra pallet row of cargo space in the container. The SLXi-DRC also uses next-generation, lower global warming potential (GWP), environmentally friendly refrigerant, R-452A.

WORLDWIDE

NORTH AMERICA

Shanxi Jingshen Railway Company Ltd., China, has awarded Pandrol a contract for FASTCLIP FC-16 fastening systems for a major national infrastructure project. Under the contract, Pandrol will manufacture close to 880,000 FC-16 fastening sets to cover 145 miles of heavy-haul track that stretches through Menghua to Central China.

EL PASO STREETCAR: The first of six vintage 1937 Presidents’ Conference Committee (PCC) streetcars returned to the City of El Paso in March, following a detailed restoration and modernization program at Brookville Equipment Corp.’s facility in western Pennsylvania. The streetcars were removed from service in 1974 and kept in outdoor storage for decades before the Camino Real Regional Mobility Authority (CRRMA) and Brookville agreed to a deal in 2015 to restore the vehicles to new condition, including repairing and replacing structural carbody components, new propulsion systems, a complete rewiring, new interiors and door system upgrades. The project also included the integration of key modern features and amenities, including HVAC systems, pantographs and mobility device lifting system, among others.

The KLW SE10B T4L unit, built by Knoxville Locomotive Works, is EPA Tier-4-compliant, delivering 1,050 hp from an MTU2000 V12 prime mover.

Stockton Terminal and Eastern Railroad: The OmniTRAX short line was awarded a grant by the San Joaquin Valley Unified Air Pollution Central District for the purchase of a new environmentally friendly locomotive for use within the district.

NEW YORK STATE: Awarded a $200,000 grant for a siding to Norfolk Southern in Schoharie County to allow Hoober feeds, a feeds and services provider in animal agriculture, to receive raw materials via rail.

railwayage.com

VIRGINIA RAILway EXPRESS: The design of a new VRE Potomac Shores station is making progress, following the recently completed final contract amendment between the Virginia Department of Rail and Public Transportation and CSX. The contract amendment spelled out which of the third-track corridor enhancements will be completed first.

Dallas Area Rapid Transit: Awarded a contract to civil engineering firm Lockwood, Andrews & Newnam, Inc. to manage the extension of platforms at 28 of its stations.

April 2018 // Railway Age 7

Update

Locomotive gems

I

n nine weeks’ time, the GE Manufacturing Solutions (GEMS) onemillion-square-foot, 71-acre, 500-employee facility in Fort Worth, Tex., part of the GE Transportation supply chain, can take an aging locomotive and, through a modernization program, upgrade it to state-of-theart technology.

Approximately 170 locomotives for North American customers (including kits) have been through the program since 2017; another 1,000 are expected to be modernized at Forth Worth and other GE plants worldwide for global customers. The predominant number of “mods,” as they are called, and kits will originate in Fort Worth.

GE Transportation has completed approximately 2,000 locomotive modernizations in more than 24 countries, for 37 customers.

GE says the mod program improves utilization, yielding increased tractive effort of up to 50%, better rail adhesion of up to 25%, improved fuel efficiency of up to 10%, improved reliability of up to 40%, and maintenance and repair expense reductions of up to 20%.

The mods involve a new operator’s (main) cab and new electrical cab (an auxiliary cab and a traction inverter cab) up front, and a new radiator (“blower” or “rad”) cab behind 8 Railway Age // April 2018

the prime-mover/traction alternator assembly. It includes DC to AC traction conversions, modern engine control packages, GTO (gate turn-off) to IGBT (insulated-gate bipolar transistor) propulsion control upgrades, installation of GE’s Trip Optimizer and DP (Distributed Power) systems, installation of Positive Train Control (PTC) equipment or the gear to accommodate it (depending upon the customer), and overhauled primemovers and traction alternators. The locomotives retain their original power plants and truck frames, and typically receive a one-level EPA emissions-compliance upgrade. For example, a Tier 1 locomotive will be upgraded to Tier 1A. Most of the modernized units are Dash 8s, Dash 9s and AC4400s.

The intent is not to extend a locomotive’s service life. Rather, it is to increase its productive value.

GE will perform the entire modernization, or for some railroads—Norfolk Southern, for example—provide kits that enable them to complete the assembly with GE Transportation technical support GE and Norfolk Southern conducted a plant tour that showcased a completed NS AC44C6M, one of 100 units the railroad is modernizing. NS Assistant Vice President

Mechanical Doug Corbin described the program as “part of our fleet management strategy” for its 4,000-unit fleet, describing the investment as “a reasonable capital spend. We looked at acquiring new units versus modernization, and decided to go with improvements that would increase productivity on our existing fleet. We needed an upgrade to AC traction. We wish to grow our business without increasing our locomotive fleet size, as locomotives are expensive long-term assets.”

The NS program involves a combination of kits shipped to the railroad’s Altoona, Pa., locomotive shops and units transformed in Fort Worth.

we looked at new units vS. modernization of these long-term assets.” railwayage.com

William C. Vantuono

from GEMS

RSSI is Returning to Omaha in 2018!

Omaha

58TH ANNUAL C&S EXHIBITION

May 21-24, 2018 CenturyLink Center Omaha, NE

MAY 21-24

2018

Booths Still Available!

Registration & Hotel Reservations are OPEN! Direct Links Available at www.rssi.org

Visit www.RSSI.org for details.

Railway Systems Suppliers, Inc. • 13133 Professional Drive, Suite 100 • Jacksonville, FL 32225 Phone: 904-379-3366 • Fax: 904-379-3941 • www.rssi.org

Update Autonomous Trucks: How Much of a Threat?

Left to right: Cowen and Company analysts Matthew Frankel, Jeff Osborne and Matt Elkott, and Railway Age Editor-inChief William C. Vantuono, at Rail Equipment Finance 2018.

statement is,” said Osborne. “Most of what Musk says is exaggerated, especially around timing. But, from a competitive standpoint, railroads would do well to assume the worst: that such trucks will be much more competitive than current diesel trucks, especially on short to medium hauls.”

Should the railroads lose sleep right now?

“No, but they should sleep with one eye half open and watch for oncoming electric truck traffic,” Elkott said. “There is a low risk of significant, technology-driven conversion from rail to truck in the next five years.

However, a big step-up in headline risk could occur in two to three years and have real consequences for rail freight and stocks alike, if major players come out with high marks and reinforced commitment.”

Cowen believes that 30% to 60% of rail traffic could be at risk of conversion or increased price competition, should platooned, autonomous electric trucks become ubiquitous. The railroads, though, can take some comfort in the highly

Railroad Financial Corp.

At the Rail Equipment Finance 2018 conference in early March, a session on autonomous trucking with Cowen and Company analysts Matt Elkott, Jeff Osborne and Matthew Frankel, moderated by Railway Age Editor-in-Chief William C. Vantuono, examined the implications for railroads— both real and perceived—of this emerging transportation technology.

Tesla CEO Elon Musk says his company’s battery-powered, Class 8 big rig will be 20% cheaper to operate than diesel trucks and represents “economic suicide for rail.” He has stated that the cost of running three or more “platooned” electric semis would “approach the cost of shipping by rail.” This is clearly an exaggeration—but how much of an exaggeration remains to be seen.

“Without knowing the cost of Musk’s electric trucks, and the cost of building the infrastructure nationwide and internationally to support such trucks as well as other costs, I wouldn’t want to speculate as to how accurate or how far off the mark such a

fragmented nature of trucking. There are more than 150,000 carriers, and for many, the capital investment requirement in new technology may be prohibitive. But railroads need to adopt a multi-pronged response by investing in new technologies such as autonomous and natural gas locomotives; exhausting double-tracking and doublestacking opportunities; focusing on train length and speed; designing and building streamlined, higher-capacity railcars, and exploring additional Class I consolidation.

Autonomous trucks may arrive sooner than you think: Level 3 (driver still required) trucks could be ubiquitous on U.S. roadways by the mid- to late-2020s. Level 4 (driver required, but less involved) and Level 5 (driverless) could follow. Consumer adoption of driverless passenger vehicles is an important precursor.

The railroad cost advantage over trucking could dwindle over time. “We think a Level 3 fleet could see a 4% to 8% earnings improvement,” the analysts said. “We don’t need to have driverless trucks for railroads to lose a substantial portion of their 5% to 15% cost advantage. Platooning is a risk to railroads: A 7% improvement in trucking fuel efficiency leads to a 3% reduction in overall cost per mile alone.”

From a logistics perspective, there are many questions that could be asked more often by the mid-to-late 2020s, according to Frankel. For example, if very large e-tailers and retailers develop or acquire vertically integrated supply chains, why use as much rail when the density is available to fully utilize those owned trucking assets?

10 Railway Age // April 2018

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Hellmann Honored as Railroader of the Year Genesee & Wyoming Inc. Chairman, President and CEO John C. “Jack” Hellmann, the 55th recipient of Railway Age’s Railroader of the Year Award, was honored on March 13 at the traditional annual dinner of the Western Railway Club at the Union League Club of Chicago.

Hellmann, 47, is leader of the world’s largest short line and regional railroad holding company, with 122 properties in five countries operating more than 15,000 miles of rail lines. He is among the industry’s youngest chief executives. Yet, he is a long-time railroader, with international experience as well as expertise in finance and business development. Hellmann oversees a growing company that in recent years has invested more than $2 billion in acquisitions and operating agreements. He has also been expanding the company into related transportation markets.

Hellmann joined Genesee & Wyoming in January 2000 and served as Chief Financial Officer through April 2005. He was named

President in May 2005, joined the Board of Directors in 2006, and became CEO in June 2007, succeeding Mortimer B. Fuller III. Hellmann was appointed Chairman of the Board of Directors in May 2017 following the retirement of Fuller, who had served as Chairman since 1977. Fuller is a great-grandson of Edward L. Fuller, who founded the 14.5-mile Genesee &Wyoming Railroad Co. in 1899.

Previously, Hellman worked in investment banking at Lehman Brothers, Inc., in the Emerging Communications Group, and at Schroder & Co. Inc., in the Transportation Group. He also worked for Weyerhaeuser Co. in Japan and the People’s Republic of China.

He is a graduate of Princeton University and received an MBA from The Wharton School of the University of Pennsylvania and a master’s degree in International Relations from the Johns Hopkins School of Advanced International Studies.

Hellmann is a devoted family man. With his wife Betsy, an attorney, he is the father of

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April 2018 // Railway Age 11

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Watching Washington

Steep Tariffs Harm Rails, Wallets

D

ebates rage over the wisdom of steeper tariffs on U.S. imports and/or withdrawing from global trade pacts in hopes of protecting domestic industry and jobs.

History teaches such actions pose economic and national security risks.

Consider the 1930 Smoot-Hawley Tariff imposing steep imposts on some 20,000 imported goods. Consensus among economists and historians is that a resulting global trade war deepened and lengthened our Great Depression (retaliatory tariffs reduced American exports by 61%) and contributed to the rise of Nazi Germany by intensifying nationalist animosities.

Here are how the benefits of global trade might be explained in an introductory economics course.

Imagine you purchase quality paper stock and coloring pencils to draw-up a fistful of Benjamins to exchange for cool stuff, like a cell phone, laptop and flat-screen television. Uh-oh, the Secret Service soon comes a knockin’.

But aren’t U.S. government-minted Benjamins equally worthless pieces of paper? The difference, aside from the law, is faith that the government issue is what your fake Benjamins aren’t—a globally accepted storehouse of value.

Such faith allows the dollar—as well as the euro, yen and yuan—to lubricate world trade, giving humankind access to resources unevenly dispersed about the planet, plus goods where they can be produced more efficiently and cheaply.

Since the North American Free Trade Agreement was negotiated in 1994, trade volume between Canada, Mexico and the U.S. has soared

450% 14 Railway Age // April 2018

It is myth that an imbalance in trade with any nation is a swamp to avoid. Consider your grocery store, with which you have a 100% imbalance in trade—but it rights itself through innumerable other exchanges of money for goods, labor and services.

So it is with global trade. While dollars flowing to other nations may not immediately return through reverse trade, they are eventually repatriated—perhaps first passing through two or three other nations—in exchange for Boeing airplanes, Harley Davidson motorcycles, Kentucky Bourbon, John Deere tractors and financial and other services. U.S. agricultural exports—grain, for example—alone total almost $140 billion annually.

As consumers pay all costs of production, tariffs boost retail prices. As higher tariffs raise the cost of imported raw materials, American exporters of finished goods become less competitive globally. Plus, a titfor-tat response by other nations to higher U.S. tariffs further reduces American global competitiveness. Such was the SmootHawley Tariff trap.

If a steep tariff on imports raises domestic retail prices by 5%, it is equivalent to cutting paychecks the same amount. And it cascades, as less paycheck purchasing power reduces consumption, which adversely affects domestic manufacturing, demand for transportation and employment.

Higher domestic production costs have a similar negative impact on consumption, which is why investors don’t duplicate, at higher cost in America, that which can be produced more efficiently and cheaply in other countries.

When lower tariffs and less expensive imports combine to reduce retail prices, families have more to spend or save, improving our standard of living. Assertions that cheaper foreign labor causes American job losses is more myth than fact.

Yes, jobs are lost when domestic production shifts to other nations, but the real culprit of job upheaval is automation, robotics and other productivity improving technologies.

In the railroad industry, innovations—unit trains, containerization, remote-control beltpacks, Positive Train

THE BENEFITS OF FREER GLOBAL TRADE WELL EXCEED THE COSTS.” Control and even word processors—cut rail employment by nearly half since 1980.

Amazon’s “store of the future” in Seattle has no cashiers, with all sales recorded and charged through a smartphone application. Warehouses now use robots to restock shelves. Yet technology also creates new job opportunities, albeit requiring retraining and higher skills.

As global trade helps reduce retail prices and boost consumption, it also stimulates demand for more transportation, making rail jobs more secure. Since the North American Free Trade Agreement was negotiated in 1994, trade volume between Canada, Mexico and the U.S. has soared 450%, with much of it moving by rail.

Global trade is associated with one-third of U.S. rail revenue.

When American railroads were first constructed, communities ignorant of trade benefits and regional specialization discouraged standardized track gauge and interconnectivity. Such economic foolishness, replicated by the Smoot-Hawley Tariff, should be relegated to the dust bin of history.

Clearly, the benefits of freer global trade well exceed the costs.

FRANK N. WILNER Contributing Editor railwayage.com

Perspective: Short Line & Regional

Congress ‘On Board’ with Short Lines

I

n March, the short line industry had the opportunity to testify before two Congressional committees. At a House Ways & Means Subcommittee hearing, we discussed the need to extend the 45G short line rehabilitation tax credit.

At a Senate Commerce Subcommittee hearing, we discussed specific infrastructure funding programs. There was an important takeaway from those hearings.

In Congress, there is a growing understanding of and appreciation for two aspects of the short line story: the need for significant capital investment in our infrastructure, and the importance of keeping large areas of rural and small town America connected to the national railroad network. Farmrail President and current ASLRRA Chair Judy Petry was our witness at the Ways & Means hearing, and she came armed with a compelling set of data. The average short line railroad invests between 25% and 33% of annual revenue in capital spending and maintenance. During the past five years, Farmrail has invested $34 million of its revenues in infrastructure improvement. By any measure, that is a very high expenditure, and $7.7 million of that was made available by the 45G tax credit. 45G grants an amount equal to 50% of qualified track maintenance expenditures and other qualifying railroad infrastructure projects.

Leveraging shipper investment is an equally impressive story. In South Dakota, for example, the improvements made by the 670-mile Rapid City, Pierre & Eastern Railroad since it began operations in 2014

the average short line railroad invests between

25%-35%

of revenue

annual

railwayage.com

has already attracted more than $311 million in new facility investments by six South Dakota companies. It is a result that has been replicated on nearly every short line in the country. It is the reason that more than 1,000 shippers have come together to publically endorse the short line tax credit and ask Congress to make it permanent.

Petry appeared at the hearing with 15 other industries seeking extensions of their individual tax provisions. Each was asked the same question: “Why do you still need the credit now that we fixed the tax code?”

Petry was the last witness to testify, and she alone was interrupted by the Subcommittee Chairman five seconds into her answer so that he could answer for her. He repeated what so many of the Subcommittee Members had already said during the course of the hearing: That short line rehabilitation is a huge item given our capital needs and hugely important in keeping rural communities connected to the national railroad system. When Congress knows our story as well as we do, that is a good sign.

ASLRRA Vice President Jo Strang was our witness at the Senate Commerce Committee’s hearing on infrastructure funding programs. This was a hearing concerning specific federal funding programs. When it came time for questions, Senator after Senator commented on the importance of short line railroads in their states and on the need to help with their substantial capital investment needs. Twice Strang was asked to identify the most important thing Congress can do to strengthen the short line industry, and twice she told them to make 45G permanent. Apparently, the Senators agree, because 14 of the 17-Member Subcommittee are co-sponsors of legislation making the credit permanent.

When ASLRRA began sponsoring Railroad Day on the Hill in the mid 1990s, the most frequently asked question at our Hill meetings was, “How many passengers do short lines carry?” In 2004, when Congress was debating our tax credit for the first time, the second-ranking member of the House Ways & Means Committee was

The short line story is well-known in Congress.” apparently unaware of what a short line was, and in a moment of misunderstanding, asked the Committee Chairman why on earth there was a need for a “shore line” tax credit.

The short line industry has come a long way. We have succeeded because of the dogged determination of our short line and supply industry companies in the telling of our story over and over and over again. That determination and the importance of that story is the reason that our tax credit legislation has been and remains one of the most co-sponsored pieces of legislation in every session of Congress. It is the reason that when we appear before Congressional committees, our story is as well-known by our Congressmen as it is by ourselves.

We still have a tough road ahead securing yet another extension of the tax credit, one that we hope will be permanent. Partisan gridlock makes it difficult for any legislation to make its way through the process. Recently enacted tax reform legislation makes returning to new tax legislation a difficult maneuver. But, short lines are persistent, and we remain confident in our ability to get the job done.

LINDA DARR President ASLRRA

April 2018 // Railway Age 15

CLASS I FOCUS: CSX

move?

How Will Tomorrow

Hunter Harrison left behind much unfinished business at CSX. Will his successors continue with “Precision Scheduled Railroading”?

here are two opposing schools of thought on the current state of affairs at CSX. Some say E. Hunter Harrison, who passed from “icon” to “legend” status on Dec. 16, 2016, created a complicated mess that his successors are trying to straighten. They believe that almost everything Harrison did— under pressure from the hedge fund that installed him as CEO—did little more than quickly drive up the railroad’s stock price.

In reality, the stock has experienced ups and downs. CSX, perhaps in response, has been buying back millions of shares.

Others believe Harrison laid the groundwork for transforming a railroad that has never lived up to its potential, a railroad whose problems, both operational and cultural, can be traced to long-ago CEO

16 Railway Age // April 2018

John Snow, who many experienced industry people believe knew little about railroading.

Snow, they say, was concerned only with securing a Cabinet position in the George W. Bush Administration (which he did, as Treasury Secretary, in 2003). His tenure at CSX was characterized by deferred maintenance, declining revenues and falling earnings (“the company’s performance was middling at best,” said Forbes at the time).

Snow attempted to acquire 100% of Conrail, but was out-thought and out-smarted by the very astute David Goode and his executive team at Norfolk Southern.

Michael Ward, Snow’s successor, managed to turn things around, surviving the first assault by a hedge fund (the oddly named Children’s Investment Fund) on a Class I. But Ward’s accomplishments, though remarkable, weren’t enough to stave

off Mantle Ridge, the hedge fund run by Paul Hilal, who masterminded the installation of Harrison at Canadian Pacific for his boss at the time, Pershing Square Capital Management principal Bill Ackman.

Will Harrison’s successors continue on the path of “Precision Scheduled Railroading”? Or will they chart their own course— with some course correction?

The problems faced by CSX and its current management team, led by CN veterans Jim Foote (CEO) and Edmund Harris (COO), are daunting. Under Harrison, thousands of experienced employees were let go, and with them went years of institutional knowledge.

Service took a turn for the worse, so much so that the Surface Transportation Board stepped in to monitor the operation.

Continued on page 22 railwayage.com

William Beecher (all photos)

T

By WILLIAM C. VANTUONO, EDITOR-IN-CHIEF

CLASS I FOCUS: CSX

A Brief History of CSX Time

I

t’s called the railroad alloy—not steel rails hardened by combining diverse elements, but the nostalgia of Casey Jones, John Henry and the Rock Island Line amalgamated with the daily challenges of conductors, engineers, signalmen, car knockers, spike drivers and all who strive to operate trains on time and safely.

The CSX alloy dates farthest back in railroad history. Its current name may lack the imagination of other brands, but the family tree evokes an ether thick with originality.

Predecessor Pere Marquette was named for a French Jesuit missionary. Other ancestors shared names—typical in railroading— reflecting a diverse route geography.

Expressing lofty ambitions, “Pacific” sometimes was added to a railroad name, yet few bridged the Continental Divide to reach the West Coast. None has yet linked the Atlantic and Pacific oceans over a single route— although a CSX predecessor came closest in 1977. CSX ancestor Seaboard Coast Line (SCL) explored merger with Southern Pacific (now part of Union Pacific) to create a 27,000mile, single-route system linking East Coast ports from Richmond, Va., to Miami with West Coast ports from Seattle to Los Angeles.

But within five months of merger discussions, SCL President Prime Osborne abandoned Southern Pacific at the altar, citing “lack of economies [and] resulting financial burden,” and questioning the merger’s “responsiveness to shipper needs.”

Within three years, SCL attained a new bride—Chessie System—to form a 27,000mile union under the “CSX” brand (denoting Chessie-Seaboard) that would span 22 states, the District of Columbia and one Canadian province. Railroad regulators approved CSX financial control of Chessie and SCL the same September day House and Senate conferees finalized language of the 1980 Staggers Rail Act, partially loosening the industry’s economic regulation.

SCL, known also as Family Lines, traced its heritage to Atlantic Coast Line; Clinchfield & Ohio; Louisville & Nashville; Monon; Nashville, Chattanooga & St. Louis; Richmond, Fredericksburg & Potomac; and Seaboard Air Line. As for Chessie System, it was the product of prior rail unifications

18 Railway Age // April 2018

involving Baltimore & Ohio (B&O), Chesapeake & Ohio (C&O), Hocking Valley and Western Maryland.

No railroad matches the nostalgia of Chessie System, named for an iconic domesticated feline, “Chessie,” who later gained a mate named “Peake,” with the two adding kittens named “Nip” and “Tuck.” It all began with a creative advertising agency in the 1930s, with Chessie and Peake promoting C&O passenger trains, and defensebond sales during World War II. The CSX alloy includes the inseparable lifelong bachelor brothers, Otis and Mantis Van Sweringen, whose rail holdings— until a financial collapse during the Great Depression—included C&O. Enter stock speculator Robert R. Young, who gained fire-sale control of C&O at auction. Aggressively nudging a technology-somnolent rail industry into a progressive age of computers and diesel-powered passenger train locomotives, Young was called by Fortune magazine the “envy and enmity of that strange breed of inhibited [railroad] bulldogs.”

After regulators nixed Young’s attempt to combine C&O with New York Central in 1948, Young shed his C&O holdings

and acquired financial control of New York Central—only later to take his own life.

New York Central subsequently combined with the Pennsylvania Railroad to form failed Penn Central, which itself was morphed into Conrail, whose 1998 partition found CSX in somewhat déjà vu control of Conrail’s New York Central routes.

CSX history began in May 1830 with America’s oldest railroad—the 13-mile B&O, which, true to its name, soon connected Baltimore and the Ohio River, then reached Chicago and St. Louis. Among its promoters was Declaration of Independence signer Charles Carroll.

Recently added to the CSX alloy is the late 1990s failed attempt at financial control

by The Children’s Investment Fund, the current reform efforts of hedge fund Mantle Ridge, and the tumultuous short tenure of industry iconoclast E. Hunter Harrison.

As CSX competes with rival Norfolk Southern—the tracks often within spitting distance of each other—there most assuredly will be new alloys added, and perhaps another merger partner to produce America’s first truly transcontinental railroad.

Frank N. Wilner, Contributing Editor railwayage.com

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CLASS I FOCUS: CSX

How Precision Scheduled Railroading Benefits Short Lines

C

SX Chief Operating Officer Ed Harris reeled off a number of recent accomplishments for the more than 200 short line representatives attending the 29th Annual Short Line Workshop—the longest-running of such Class I outreach efforts—in early March.

You can see right away how he’s making Precision Scheduled Railroading (PSR) principles work at CSX. GTMs per available horsepower are up 18%, train velocity is up 14%, dwell is down 7%. Harris is driving day-to-day decision-making to those closest to the action, swapping train crews between nodes so everybody gets home at night, and cutting re-crews nearly in half. They’re putting more teeth into their Interchange Service Agreements (ISAs), making short lines and their interchange-point managers accountable.

Harris is managing by absolutes: Either the train is where it’s supposed to be or it isn’t; either the car is operating to plan or it isn’t. This is PSR as it’s supposed to be.

And CSX short lines that can operate in this environment will be the winners, much sooner than later..

Some short lines are moving faster than others in taking up the PSR challenge. One executive said he had gotten together with both the senior and local people at the same time, and they all figured out how to use the new paradigm to their advantage. He’s a very happy camper.

At the opposite end of the spectrum, another short line has been going round and round with the local guys, getting nowhere,

20 Railway Age // April 2018

never going to the next level up for fear of retribution. Another short line had been having problems making ISAs work. So at the so-called “trade show,” where various CSX departments set up interactive tables and displays—they were able to chat with the appropriate players, quickly setting in motion a field process to fix the problem.

Consistent and reliable transit times are key to supply chain managers, and too often the railroads can provide neither. CSX has a partial solution: the per-car trip plan— partial as it goes from dock to dock only

Short lines are moving faster than others in taking up Precision Scheduled Railroading. where the customer is CSX-served; on short lines it’s interchange-to-interchange.

This is a mistake because, in capturing car-mile contribution or in calculating transit times, you miss the short line dwell interchange-on/interchange-off. Doing so could put the short line at a disadvantage; however, the goal is to maximize contribution/day, minimize transit time, and run

more tonnage with fewer cars.

Moreover, trip plans by car give customers much greater control. If you know the transit time release to actual placement is five days, you can plan your supply-chain requirements to fit. There are no plans at present to share trip plans with customers or short lines, but there exist thirdparty vendors who track them with waybill samples. You can see not only O-D transit times, but also times between nodes.

Trip plans at the CSX level also facilitate classification by distant node, so you can get more cars heading in the same direction in fewer trains making intermediate stops between O-D pairs. Finally, reduced transit times benefit customers (smaller inventory loads, faster inventory turn times, less inventory in transit) and the railroads (fewer assets to haul the same tonnage).

The faster a short line can receive, load/ unload, release and return a car to the Class I, the lower the car component of the rate.

Take longer and the rate goes up, putting short line customers at a competitive disadvantage, compared to their competitors not on a short line.

Line sales was a hot topic. CSX did an internal pro-forma study concluding that, even though it could forego up to $60 million in revenues on a 1,000-mile line-sale segment, it would avoid all variable costs and some fixed costs to the tune of $150 million, netting $90 million in savings. (As an aside, the mainstream press picked up 8,000 miles on the block. Not so. It’s 8,000 miles under review. The final number could be less.)

Michael Rutherford, VP for Merchandise Sales & Marketing, showed how and why the merchandise sector—everything but coal and intermodal—represents 60% of the CSX annual revenue stream. Chemicals and agricultural products make up about half the total pie; metals, forest products, fertilizers, minerals another third; and automotive the rest.

Thus, about 80% of merchandise carloads are fair grist for short lines. And with the tenets of Precision Scheduled Railroading in hand, CSX connections have a sure competitive advantage.

Roy Blanchard, Contributing Editor railwayage.com

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CLASS I FOCUS: CSX

Continued from page 16 At CSX’s Investor Conference in early March, management said it is staying the course set by Harrison. Executives told investors they would continue the streamlining begun by Harrison, improving profits by making do with fewer railcars, locomotives and train starts, eliminating jobs, slashing capital expenses and selling off portions of the network.

The railroad is targeting an operating ratio of 60% by 2020, a significant improvement from 2017’s 67.9% year-end figure. Is it doable? More important, should the OR be the only measure of success? Perhaps not.

“That CSX has fallen on difficult times, service-wise, is regrettable,” observes

Railway Age Contributing Editor Frank N. Wilner. “Whether the stumbles are selfinflicted is secondary to CSX’s commitment to recover, as the speed and quality of its recovery will spell the measure of current management to meet what should be Job No. 1 of every transportation firm: Deliver a customer’s product where it is wanted, when it is wanted, without damage and at a reasonable price. World-class customer service—not an emphasis on short-term earnings and a low operating ratio—is the time-honored method to raise and stabilize railroad stock price and dividends.”

What does CSX management believe?

Jim Foote’s statements at the Investor Conference were tailored for, well, investors. “Our continued focus on service and

efficiency improvements have helped generate momentum in our effort to create a better product offering for customers and strong financial returns for shareholders,” he said. “While our scheduled operating model has already produced significant operational and financial benefits, substantial opportunities exist to further optimize the network, leverage excess capital, create savings and grow our franchise.”

CSX forecasted compound annual revenue growth of 4% in 2019 and 2020, and average annual capital expenditures of $1.6 billion through 2020—down 60% from $2.7 billion in 2017. Capex would be limited to track maintenance. No equipment purchases or capacity expansion projects are apparently in the pipeline. Cash flow of $8.5 billion is forecast from 2018 to 2020. Planned sales of existing routes and real estate could bring in an estimated $800 million, to help fund the repurchase of $5 billion worth of shares by first-quarter 2019.

“We’re confident we have the right plan and the right team in place to achieve our goal of becoming the best railroad in North America,” said Foote. “The foundation of scheduled railroading has been set, and we expect to identify real growth opportunities that will benefit shareholders as our changes take hold.”

In a note to investors, Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl said, “We don’t expect to see anything

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CLASS I FOCUS: CSX close to the magnitude of network changes like we’ve seen over the past year, but do expect the company to reduce its workforce by more than 20% between now and the end of 2020. These reductions, the benefits of an improved network, a favorable rail pricing environment and minor operational changes should enable CSX to hit its 60% OR target by the end of the decade.

We expect CSX will become a more nimble, dynamic railroad in the coming years as many layers of management have been reduced. The company has consolidated into four operating regions from nine. The number of hump yards has been cut by two-thirds to four. CEO Foote suggested there may be more work to do on that front.

Decentralization of operational decisionmaking will likely prove to be a key component to customer service improvement and employee retention over time.

“Another example of how the company has improved its decision-making capabilities is through the production of daily morning reports that provide a 360-degree

railwayage.com

view of the railroad’s Key Performance Indicators. We were actually surprised to hear that this didn’t exist before. The railroad’s footprint is likely to shrink in the coming months. The company expects to sell at least $300 million worth of real estate between now and 2020 (this could be a conservative estimate). Management noted that it’s not just looking to sell assets, but rather place assets in the right hands.”

However, “spaghetti-like CSX is neither a linear railroad nor one whose unit-train business substantially exceeds single cars, as is the case on CN and CP,” notes Wilner.

“CSX shippers have complained of closed classification yards; longer transit times; unreliable car service; circuitous routings with “ping-ponging” of their loaded freight cars across the railroad’s network, and dreadful communications. Labor leaders say CSX has lowered the bar for safety.

Other interests, including safety regulators other railroads, speak of ‘a gutting of corporate culture with unknown future impact,’ and ‘the hollowing out of institutional

knowledge’ that includes the departure of 20 senior officers. Harrison placed blame on the CSX workforce, complaining of a ‘resistance to change,’ but his strongest words were directed at customers—many large and politically powerful. He termed shipper complaints of ‘chronic service failures’ as ‘unfounded and grossly overstated.’”

So much for “don’t bite the hand that feeds you.”

Jim Foote now speaks of “a remarkable rate of positive change” at CSX—even as shippers are still citing service problems.

“It should be enough to say that sharp sticks needlessly poking at the eyes of politically powerful shippers and labor organizations is its own train wreck waiting to happen,” observes Wilner. “It would be wise for the expatriate top CSX management, now returned from a long tenure in Canada, to reread, mark and inwardly digest the American political and regulatory process and atmosphere.”

Senior Editor Stuart Chirls contributed to this story.

April 2018 // Railway Age 23

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Sponsorships & Exhibits Available Contact Jonathan Chalon at 212.620.7224, jchalon@sbpub.com 18 RAILWAY AGE January 2016

Keynote Address Kevin B. Quinn Jr. Administrator Maryland DOT MTA

Change & Growth in Toronto Josh Colle Chairman

Toronto Transit Commission

System Safety Steve Vecerina Manager of Training

Hudson-Bergen Light Rail

Maintenance Quality & Asset Management Anthony Fazio, P.E. Director, Track Engineering & Design SEPTA

REGISTER

www.railwayage.com/lightrail January 2016 RAILWAY AGE 19

light rail funding

LRT,

By Stephanie W. Kam, Esq., Nossaman LLP, and Daniel P. Loschacoff, KPMG LLP

the P3 way

C

anadian taxpayers are not accustomed to user-pay or revenue generating infrastructure, and public transit generally runs at a loss, requiring large subsidies. Yet since the 2000s, billions on offer from federal and provincial programs have helped spur municipal decisions to develop light rail transit (LRT) under complex, long-term contractual agreements between public agencies and the private sector.

Canada currently has two LRT projects procured as a P3 (public-private partnership) in operation, with another five under construction and five under procurement.

26 Railway Age // April 2018

Although P3 approaches may vary from jurisdiction to jurisdiction, public transit agencies in Canada have typically used one of three P3 delivery models for LRT projects: DBFOM, DBFM and DBF (listed in decreasing order of risk to the private sector).

Design-Build-FinanceOperate-Maintain (DBFOM) Canadian DBFOM projects are largely financed by leveraging availability payments from the public owner to secure private debt financing. The DBFOM approach is particularly well-suited to optimizing operational performance. By bundling and transferring the design, build, finance, operation

and maintenance functions to a private sector partner over a long term, the private party has an incentive to implement lifecycle cost management before the project is transferred back to the public sector. Higher expenditures on design and construction can be justified if operation and maintenance costs will be reduced later on. The integration of all project phases also helps minimize costs, since there is an opportunity to start the next phase before the prior phase is finished (commencing construction before the design has been approved).

The Canada Line on Vancouver’s SkyTrain rapid transit system was the inaugural transit infrastructure project in North railwayage.com

Waterloo Region

Canada may be commonly known for its ice hockey, poutine, maple syrup and the colloquial “eh?”, but when it comes to infrastructure, the P3 delivery model is also well entrenched, particularly for LRT.

light rail Funding Ontario (pictured, opposite) is using the DBFOM method.

America adopting a P3 model. The local government’s decision to deliver the Canada Line as a DBFOM was, however, controversial. The project was first described as a piein-the-sky system that would never achieve its break-even ridership threshold. Unions criticized P3s as a form of privatization that provided no real benefits to the public.

Shattering negative expectations, the system was completed on budget and put into service three months early, in time for the 2010 Winter Olympics. SNC Lavalin built a longer LRT line than anticipated through the cost-saving cut-and-cover method of construction, rather than boring the whole line, the latter of which was proposed by Bombardier, whose ART linear induction motor technology was used for the SkyTrain Expo and Millennium Lines.

The Canada Line’s ridership goal was reached three years ahead of projections.

The Kitchener-Waterloo LRT project in railwayage.com

Design-Build FinanceMaintain (DBFM) The DBFM approach is similar to DBFOM, except the public owner retains operational responsibilities and related risks vis-à-vis the private sector partner. While some operational elements may be transferred to the private sector partner, such as cleaning, these services are typically limited in scope.

Metrolinx has been utilizing the DBFM model for both the Eglinton Crosstown and Finch West LRT projects in Toronto, leveraging the local transit service’s years of experience operating rapid transit.

Similarly in Ottawa, LRT operations are outside the scope of P3 contracts and will be managed by the local transit service.

Having an existing public transit service, however, does not always translate in the adoption of the DBFM model for LRT project delivery, particularly when there is political interference. The Hamilton LRT procurement was stalled for four months because of operational concerns. The city reaffirmed its original approach to using the DBFOM delivery model after it agreed to include a requirement during contract negotiations for the future LRT operator to unionize its staff. The project will now go through another election process because of the delay and serves as a good reminder of the importance of mitigating political risks throughout the entire procurement process.

Design-Build-Finance (DBF) The DBF model entails an agreement for a private contractor to design, construct and finance the capital cost of a project for a fixed price by a fixed date. The public owner identifies the level of funding it will provide and requires the developer to finance project costs in excess of the public funding over a specified period of time. In return, the developer typically receives periodic or milestone payments from the owner during and for some time following construction, pursuant to the contract’s schedule for repayment of project costs.

The procurement decision to use a DBF model for the Evergreen Line, an 11-km (6.8-mile) extension to the SkyTrain system in Vancouver, was based on a thorough analysis of different procurement options.

Although the DBFOM model used for the Canada Line was examined, it was determined not to be appropriate due to the greater economies of scale that could be achieved with the Evergreen Line being operated and maintained as part of the SkyTrain system. Ridership on SkyTrain and the Canada Line has steadily increased since the opening of the Evergreen Line.

CDPQ Infra CDPQ Infra is a subsidiary of Caisse de dépôt et placement du Québec and was launched in July 2015. It has since introduced a new alternative delivery model into the Canadian infrastructure market. The CDPQ Infra model is distinguished from a traditional P3 with the transfer of responsibilities and related risks from the project owner to CDPQ Infra, a public institution with investment expertise in public transit and greenfield projects.

CDPQ Infra has selected two private sector teams to develop Montréal’s automated Réseau électrique Métropolitain under two separate contracts: (1) infrastructure engineering, procurement and construction (EPC), and (2) provision of rolling stock, systems, operation and maintenance (RSSOM). While the EPC contract is not alternative delivery, the RSSOM contract adopts a DBF + OM model, where the private consortium assumes some exposure on operations and maintenance.

Launch of Canada Infrastructure Bank PPP Canada was a Crown corporation established by the Conservative government in 2008 that invested more than C$1.3 billion in 25 infrastructure projects, including the Edmonton Crosstown LRT and Sheppard East Rail Maintenance Facility.

The current Liberal government has now phased out PPP Canada and launched a new C$35 billion Canada Infrastructure Bank (CIB). The CIB’s purpose is to invest in revenue-generating infrastructure projects and attract private sector and institutional investment. Since almost all Canadian P3s have been structured as performance-based availability payment deals, there is a possibility that future LRT projects will leverage project-generated revenues, such as transit fares. The benefit of transferring demand risk is often offset by cost increase of private April 2018 // Railway Age 27

light rail funding financing. The P3 industry will have to wait and see how the CIB’s mandate will unfold.

P3s, though, have become the backbone of Canadian LRT development and operations. Project pipelines have grown dramatically through comprehensive, coordinated policies that implement the P3 model, such as PPP Canada’s previous mandatory P3 viability screen for projects with capital costs over C$100 million. The past decade of realizing new LRT projects has created a significant public transit success story, providing an opportunity to focus on life cycle maintenance and line expansion.

Stephanie Kam is an Attorney in the Infrastructure Practice Group at Nossaman LLP. Daniel Loschacoff is the Head of the Global Infrastructure Rail Practice at KPMG LLP. They have represented various public owners in connection with complex procurements and contracts for rail projects throughout the world, and can be reached on Twitter @P3Law and @GlobalRailKPMG, or by email at skam@nossaman.com and danielloschacoff@kpmg.ca.

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CONTACT US AT BUSINESSDEVELOPMENT@KINKISHARYO.COM 28 Railway Age // April 2018

railwayage.com

M/W FOCUS: TRACK INSPECTION

GATHERING

BIG-PICTURE

DETAILS

By Mischa Wanek-Libman, Engineering Editor

Holland’s Argus system is being incorporated into Holland’s fleet of TrackSTAR® vehicles and Unattended Geometry Measurement System applications.

Value-added technologies allow service providers to collect more data in the same amount of time.

H

Holland LP

elping a customer accomplish more with less is the ideal to shoot for in any service-focused industry.

When it comes to track inspection, service providers are packing their platforms full of technologies to optimize valuable track time. Not only are railroads able to obtain accurate and objective data to better plan maintenance activities, they are also better positioned to gain an overall snapshot of track system health.

ENSCO, Inc. ENSCO, Inc., introduced a new Rail Surface Imaging System (RSIS) that can measure and quantify rail surface damage. RSIS helps railroads identify Rolling Contact Fatigue (RCF), quantifies the severity of RCF, and displays RCF severity in strip railwayage.com

chart format alongside track geometry, rail wear and machine vision imagery, which ENSCO says will allow railroads to have an even greater understanding of their overall track quality and to make better decisions on grinding and maintenance.

ENSCO’s new Predictive Rail Temperature System (PRTS) can more accurately predict rail temperature by using several parameters from National Weather Service data, including intensity of solar radiation, solar angle, wind speed and sky temperature, as well as heat absorptivity and emissivity of rail. ENSCO believes PRTS will have a positive impact on safety and will minimize the impact on railroad operations by allowing for issuing of advance heat slow orders in an effective and targeted way.

The company has seen an increase in demand for its Autonomous Track

Geometry Measurement System (ATGMS), which can be installed on a revenue vehicle to measure track geometry and continuously streams the data to a cloud-based server. Additionally, the company says its Autonomous Vehicle/Track Interaction Monitors (VTI) continue to grow in popularity among Class I and II railroads and transits. VTI, installed on revenue vehicles to measure ride quality, wheel/rail impacts and track geometry surface conditions, has been credited with helping railroads identify high-risk track conditions and avoid broken rails and derailments.

“Recent customer conversations regarding the future state of automated track inspection have centered around applications to aid track inspection and reduce onsite walking inspections,” says the company. “This is focused on office-based April 2018 // Railway Age 29

M/W FOCUS: TRACK INSPECTION

track inspection by reviewing measurement and imagery data in the office to perform track inspections and utilizing autonomous track inspection technology.”

ENSCO has developed a suite of data management software tools that can be integrated with ERP (Enterprise Resource Planning) software platforms from SAP and other providers: “This integration allows for SAP and ENSCO’s tools to combine their specialties to achieve greater value than either system alone. SAP excels at work order management and finance; ENSCO’s software tools excel at scientific assessment of asset condition to accurately plan maintenance and conduct regulatory track inspection scheduling and reporting.

The two systems work together to exchange asset information, inspection and maintenance work order information.”

GREX Georgetown Rail Equipment Company (GREX) says the ultimate need of its customers is to ensure safety and prevent track failures.

“For ties and ballast, the railroads’ goal is to prioritize their program work where it is needed most and accurate, objective inspections are the foundation of assessing system-wide needs,” explains the company.

“Improved analytics will drive the optimization and prioritization of capital improvement, potentially stretching limited resources, increasing the durability of the track structure, and extending the cycle 30 Railway Age // April 2018

times for program work. As non-revenue track access is always at a premium, more inspection capabilities on a single platform is always requested by railroads.”

In late 2017, GREX introduced its Aurora Xiv™ inspection vehicle, which delivers four inspection systems for assessing ties, ballast profiles and clearance envelopes on a single pass. “Combining three patented machine vision technologies, Aurora Xiv is the rail industry’s most comprehensive inspection platform to date,” the company says. “Scanning track at up to 25 mph, Aurora grades wood or concrete ties, while Aurora Xi looks at the internal structure of track components, and BallastSaver identifies ballast deficiencies and issues with the clearance envelope.” Utilizing a Freightliner chassis, Aurora Xiv has a rigid ride height for consistent scanning, an around-thetruck operator visibility system to improve safety, and in-cab controls to simplify getting on and off rails.

Aurora Xi technology “allows for optimization between improving track integrity and limited capital budgets,” GREX says.

“Following inspection, the data is provided as an objective assessment, based on the customer’s grading model. The railroad then applies its own tie replacement logic rules to select which specific ties should be replaced during the next tie gang cycle.

To further enhance its offerings, GREX is introducing two solutions to its Aurora and Aurora Xi platforms. The Aurora Automated Tie Marking solution “will execute

Herzog Services, Inc. Herzog Services, Inc. (HSI) “continues to actively invest in research initiatives and puts them into practice through improved systems and methods for rail-flaw detection,” the company says. “Our R&D team has been implementing a continuous testing, post-verification workflow.”

Herzog’s rail-flaw detector car collects railwayage.com

GREX

GREX’s Aurora Xi allows for optimization between improving track integrity and limited capital budgets.

a railroad’s surgical tie replacement plan by applying paint marks to the railroadselected ties using machine vision navigation. Automating this process results in a more durable track structure by ensuring the correct ties are replaced and reducing the number of ties pulled prematurely.

Additionally, the combination of inspection data and tie replacement logic provides an analytical method of reaching a fixed tie allocation number.”

The second solution is preventing defective new ties from being installed with an inspection system that can be used to evaluate ties at a plant. GREX says the system will be able to find internal defects such as rot or deep splits that are not obvious from the surface. This can be especially important for higher value ties where the cost to replace a prematurely failing tie is significant.

“Track inspection technologies complement visual inspections and practical knowledge, and often are able to derive conditions and trends that are not apparent to humans. The industry’s practical knowledge base is shrinking as lifelong railroaders retire, and so the practical knowledge gap will have to be filled by better technology and systems that provide actionable information,” says the company.

GREX cites research that has shown correlations between ballast and tie condition and track geometry defects in its belief that a higher level of quality track structure can be achieved if it is evaluated as a system rather than as individual components.

“Railroads already have been taking big steps forward in using new technologies and advanced analytics for maintenance and capital improvement practices, and that trend will continue,” says GREX. “The industry is moving toward employing bigdata analytical techniques, and will benefit from advances in artificial intelligence, with the end goal being full automation of maintenance-of-way decision-making.”

M/W FOCUS: TRACK INSPECTION

Sperry’s ATS (Adaptive Test System) quickly assembles and deploys, allowing it to immediately move from test mode to transportation mode.

test data in a non-stop mode. The data is sent across a wireless network to a location where a qualified employee analyzes the test data for potential defects or issues. After the possible defective indications, or “picks,” have been prioritized, they are sent to an on-site operator for post-verification, where the possible indications are verified within 24 but not longer than 72 hours.

HSI says the goal is to collect more railflaw data in a shorter amount of time to reduce track time allotted to testing. HSI tested this project internally and is implementing field testing in the first half of 2018.

The third quarter of 2017 saw HSI release the Series 7000 system, which features upgraded hardware and software. HSI says the inspection software carries over many features that were introduced with the Herzog 2020 phased array system, which launched in 2015. In addition to an enhanced B-Scan presentation, it incorporates C-Scan, a wire frame side view of the rail that gives operators an image morerepresentative of its physical shape.

The Series 7000 system has relational milepost capability, allowing it to utilize a railroad’s database to record a defect’s location more accurately, useful when repair crews are dispatched. An operator now has live diagnostics for all channels. The system integrates vehicle functions with the test system, allowing additional features “The Series 7000 can also include a vision 32 Railway Age // April 2018

system that takes photos of the rail and integrates them into the operator’s inspection workflow, giving the operator additional information to reduce the likelihood of ultrasonic indication misinterpretation.

This will increase production for customers by allowing our operators to identify structures and rail service conditions more accurately,” explains the company.

HSI also notes that it met the Dec. 18, 2017 USDOT deadline to install Electronic Logging Devices (ELDs), which the company deployed on its U.S. fleet in October. The company began testing ELDs on its Canadian fleet in December.

HSI and Herzog Technologies, Inc. (HTI) are collaborating to add Rail Flaw Detection (RFD) to their Video Track Chart™ (VTC) data store. VTC is a software program that provides access to up-to-date imagery, track charts and geographic track maps.

“There are many benefits to this software, one of them being the ability to see how RFD trends with other data being collected, such as LiDAR and geometry, HSI says.

“VTC gives customers the option to view various types of imagery, such as LiDAR, video and 360-degree camera functionality, all geographically anchored so that the imagery is directly linked to the location.”

HSI says it continues to develop its inspection database, which has proven to be integral to the continuous testing project and will be key to what the company estimates

Holland LP Holland LP boils track inspection down to spending as little time on track to collect as much reliable, relevant data as possible. The company says the accuracy of multiple data streams “remains key to increased levels of analysis and inspection criteria, which coincides with precise location information.

Standardization of GPS and DGPS technology continues to make the job easier, but precise run-over-run alignment of foot-byfoot data remains a challenge.

“Get any part of it wrong, and the trends and forecasts you generate are meaningless,” states Holland Director of Product Management Jason Jeans. “Our Data Management team is devoted to making sure that data is properly vetted and aligned so that legitimate forecasts can be generated.”

Holland believes this, coupled with machine learning and artificial intelligence, will take the company and the industry to the next level and into the realm of big data, where predictive and prescriptive algorithms will comb through large sets of data to find salient answers between discrete data sets.

“We’re increasing our footprint, better positioning ourselves by improving our data collection capabilities and expanding our software and analytics platforms to strengthen our digital transformation, allowing us to play a larger role in providing comprehensive, data-based information services,” says Holland Railway Measurement Systems and Services General Manager Felix Krupczynski.

Holland is focused on the further development of its Argus® system following the acquisition of Vista track geometry and rail profile collection technology in December 2017. The Argus system is being incorporated into Holland’s fleet of TrackSTAR® vehicles and Unattended Geometry Measurement System applications.

The company notes that the Argus system’s railwayage.com

Sperry

to be “countless improvements to quality assurance team tools by making the audit process more streamlined and automated.”

HSI is also developing a dashboard of user-specific information that includes all collected data such as service failure ratio, uptime and test miles. Currently, it is being utilized internally, but the goal is to have this accessible to all HSI customers.

Protran Technology/Harsco

M/W FOCUS: TRACK INSPECTION light weight and durability make it ideal for hi-rail applications, while its size, weight and low power requirements also make it an ideal fit for the unattended application.

“The system incorporates redundant critical components that switch over automatically to maximize uptime and reduce the potential for data loss,” says Jeans.

“We’re currently looking to expand our capabilities to include mounting the Argus system on revenue-service transit vehicles and freight locomotives.”

The company says that while it is known for its fleet of heavy-duty TrackSTAR vehicles (which employ a split-axle, Gauge Restraint Measurement System that applies up to a 15,000-pound vertical and 10,000pound lateral load to assess track gauge strength), it recently developed two additional series of TrackSTAR platforms. These smaller units also incorporate Holland’s load axle design, which helps identify poor tie and fastener conditions, such as broken/ missing spikes, screws or fasteners under load conditions.

Holland says its TrackSTAR customers are looking to maximize track time.

To address this, Holland added Rangecam® Track Analyst Software as a Service (SaaS) earlier this year as part of its TrackSTAR testing platform. “Real-time use of Holland’s unique planning software to see data processed aligned with historical data as soon as possible to facilitate track analysis and begin maintenance planning is now available as part of our TrackSTAR portfolio,” states Krupczynski.

This year, Holland will also introduce and deploy Helios®, a 2D LiDAR-based clearance measurement and right-of-way profiling system on a portion of the TrackSTAR fleet. Helios will capture a wide range of data with 360-degree measurement including clearance, cross-sectioning, area and volume in tunnels; platform edge and gap surveys; clearances for oversized loads; track center distances; continuous ballast volume and profile surveys; and asset location and identification. This information will be coupled with video to provide a comprehensive picture of track conditions and asset locations along the right-of-way.

NxGn Rail services NxGen Rail Services provides rail-bound track inspection services and has been railwayage.com

testing new ground-penetrating radar systems to enhance the resolution of the fouling materials and improve automated ballast fouling index calculations. The company has also updated its web platform to provide higher definition for carrying out virtual track walks at any location on a network from any web-enabled computer.

NxGen Rail Services Managing Director Robert Grant explains making the business case for spending additional money on track inspection can be a hard battle to wage, especially if the result is that nothing goes wrong. “The truth is the opposite, as having everything under control means increased operational efficiency, fewer accidents and delays, reduced maintenance costs and a better bottom line,” he says. “In the consumer world, sales are directly affected by advertising: The more you spend, the more you sell. In the railroad industry, the more you test, the more efficient and profitable you can become.”

Grant notes that the company is making significant progress in systems integration to provide a holistic track view, merging data from its own sensors and from third party equipment. He says the technology to propel track inspection to the next level is available. However, total acceptance of that technology’s capabilities among industry stakeholders is yet to come. “Change is always difficult in large organizations,” he says. “But pioneering has always required

courage, and the ability to make bold decisions to unlock the achievable benefits.”

Plasser American Plasser American Corp. will introduce the Plasser Smart Maintenance Suite (PSMS), an integrated platform for machine and infrastructure data management. It consists of a Fleet Module, an Infrastructure Module and an Applications Module.

The company says the Fleet Module will provide a quick overview of a customer’s entire machine fleet and the condition of all registered machines. It manages the machine-related aspects such as performance indicators, machine health and machine maintenance information, among others. One of the Fleet Module’s key functions is to deliver detailed and accurate data for the Infrastructure Module; such data is then used to optimize operation, maintenance and the machine itself.

The Infrastructure Module manages the track-related infrastructure aspects for a railroad. PSMS can integrate other applications, such as the Plasser Machine Maintenance Guide (MMG).

“Customers need a continuous flow of information from the field to the office and from the office back to the field,” says Plasser. “The PSMS provides that functionality to the customer. With PSMS, office personnel can directly monitor, for example, tamper performance, including

Protran/Harsco Rail’s Europa product line incorporates high-speed, rail-bound inspection vehicle technology with multiple push-trolley inspection trolleys capable of spot checking and improved walking inspections.

April 2018 // Railway Age 33

M/W FOCUS: TRACK INSPECTION the option of displaying the measuring and line/lift data used while tamping.”

The company believes the track inspection market will move in a direction where data from various measuring systems is automatically cross-linked into a maintenance recommendation. “With PSMS, measuring data recorded with a measuring car can be used for tamper guidance in a streamlined fashion. The advancement will be that the measuring data from the measuring car will be prepared in advance in the office and then downloaded to a tamper as needed without a measuring run with a tamper,” explains Plasser.

Protran technology “The rail industry continues to look for new technology to improve operational efficiency,” notes Protran Technology/Harsco Rail. “A key area of interest is measurement technology, which can drive accuracy and automation the more a railroad improves efficiencies. Protran is now seeing a push for innovative and pervasive measurement

technologies. Products such as our Callisto track geometry product line and MRail vertical track measurement system allow for more-frequent measurements by utilizing vehicles that already have track time.

More-frequent measurements allow for more accurate maintenance planning tied to current conditions.”

Protran has introduced its new Europa track measurement line. “Europa, paired with Callisto, provides the next step in data collection tools,” the company says. “These products collect and analyze track conditions. The resulting data can be transferred directly into Harsco maintenance equipment so that assessment and maintenance activities are aligned and more efficient.”

Protran says the Europa product line “introduces high-speed, rail-bound inspection vehicle technology as well as multiple push-trolley inspection trolleys, which can allow a railroad access to various inspection technologies capable of spot checking and improved walking inspections. Measurement systems such as rail profile, track

geometry, ultrasonic inspection, clearance measurement, third rail inspection and general video can all be installed onto an inspection vehicle or trolley. In addition, the Callisto Hy-rail track geometry system can give a railroad access to a highly mobile track geometry inspection system.”

“With the Callisto Hy-rail system, most any hi-rail can be turned into a track geometry measurement system,” notes the company. “In addition to providing traditional track geometry inspection results, data captured from this system can be transferred to a Callisto ProTamp-equipped tamper to give the tamper access to pre-work measurements to improve productivity.”

Protran explains that these products allow its customers to take control of their automated inspection capabilities, enabling them to be more flexible with inspection activity scheduling.

“No longer are railroads and agencies held to the schedules of the traditional inspection service providers,” the company says. “The Europa product line allows

Keep Rail Moving Track Inspection Cars | Track Maintenance Planning Solutions | Autonomous Track Inspection Systems | Vehicle/Track Interaction Testing and Consulting Services

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34 Railway Age // April 2018

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railroads and transit agencies to have lightweight, mobile inspection tools that produce high quality data, so that they can allow high-priority track work to continue and perform required inspections when least impactful to their revenue operations.”

Protran adds that its products help augment an inspector’s current practices: “Typically, an inspector is trying to balance track time with inspection quality. Utilizing these new tools, an inspector can now gather more information during an inspection, which can then be further processed at the end of the day. With a more robust and detailed view of the track, these typical inspections can go further in preventing potentially catastrophic rail failures.”

Sperry Rail Service Sperry Rail Service’s new 360° Rail Health® technology “utilizes historical data, combining comprehensive testing techniques with artificial intelligence and big data to provide a proactive and predictive rail flaw and maintenance solution,” according to General Manager Jamie O’Rourke. “Our 360° solution is focused on improved management of failure risk. Partnering with railroads to move to predictive maintenance with our prognostic tools will help minimize avoidable failures and promote a better infrastructure.”

A key component of 360° is a patent-pending artificial intelligence tool named Elmer, after the company’s founder, Dr. Elmer Sperry.

Elmer combines machine-based data processing with predictive analytics and processes terabytes of data to identify exceptions and changes from expected norms. Predictive analytics include algorithms and tools to measure probability and consequence of failure from detected exceptions.

Elmer fits into Sperry’s six-prong approach to target order-ofmagnitude reductions in risk, which the company lists as noninvasive logistics; sensor technology; location systems; AI (Artificial Intelligence); predictive analytics; and reporting. Sperry says 360° “delivers a comprehensive view of rail health and strives to improve how operators manage risk. Every step has automated validation to reduce operator dependence and ensure we catch any exceptions, for the highest quality inspection.”

Sperry will soon be releasing a workforce engagement app that lets clients view their network and access detailed information on suspected locations and types, changes to track conditions, and rail health monitors that provide management and local field support with detailed, real-time data.

Sperry’s ATS (Adaptive Test System) “allows high-frequency track testing at a lower cost. The ATS can couple to existing railway-owned assets for zero additional equipment expenditures and minimal network disruption. It quickly assembles and deploys, allowing it to immediately move from test mode to transportation mode. Once installed, no additional operators or maintenance crews are required.”

The ATS features variable gauge capability. It supports multiple technologies, including Sperry’s Crushed Head Detection System, Surface Crack Detection and RCF Monitoring. The ATS also delivers 15 ultrasonic channels per rail, and supports enhanced rail flaw detection frequencies targeting large defects. It tests at speeds up to 25 mph, and is capable of carrying up to four RSUs (Roller Search Units) per rail. The ATS can be utilized in either non-stop or stopand-verify mode.

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4:09 PM

Your Track, Your Services TrackSTAR® Testing Services

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• Average Wear • Inventory • Rail Replacement

Track & Clearance Measurement

Holland's portfolio of track testing vehicles and services is designed to satisfy the track geometry and rail profile measurement requirements of Class 1, Regional, Short Line, and Transit properties.

A Solutions Partnership Unlike Any Other Visit hollandco.com Call 708-672-2300 April 2018 // Railway Age 35

ttci

ONE million

miles

After 14 years of heavy-haul service, AAR M-976spec trucks have more than proven their worth.

n 2004, M-976 trucks were mandated for 286,000-pound car service. To date, more than 400,000 cars have been fitted with M-976 trucks. By 2017, those cars with the highest service usage either approached or exceeded one million miles in revenue service.

During 2017, TTCI studied maintenance records from a series of 350 coal cars operating in a specific western U.S. coal service with approximately one million revenue service miles. TTCI also inspected and tested the trucks from two randomly Truck type/fleet

selected cars in this fleet to determine their condition, current performance and maintenance history—in particular the rate of wheel removals during their service life.

The trucks under the two cars were found to be generally in excellent condition.

Maintenance records indicated no component replacements in the life of the trucks other than that of brake shoes and wheels.

In general, wheel replacements suggested a median wheel life as high as 400,000 miles.

High-impact wheel removals (Why Made Causes 61, 65, 67 and 75) were minimal.

This maintenance data was verified against wheel impact load detector (WILD) data.

The WILD removals on the 350 specific cars operating in western coal service were compared with WILD removals from all cars equipped with M-976 trucks, as well as all other cars operating in North America not fitted with M-976 trucks. The metric used for comparison is wheelsets removed for high-impact wheels (“WILD wheels”) per billion GTMs (gross ton-miles). This metric is a good indication of the relative performance of these trucks/cars based on

Assumptions Number Of Cars

Gross Load

Loaded Miles/Year

Loaded/Light Car Miles

Global Fleet of non- M-976 trucks

~1.2 million

263,000 lbs

12,000

50%

Specific M-976 fleet analyzed

350

286,000 lbs

50,000

50%

All cars fitted with M-976 trucks

~400,000

286,000 lbs

30,000

50%

Assumptions made in comparing fleets of cars equipped with M-976 trucks against the global North American fleet.

36 Railway Age // April 2018

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Bruce Kelly

I

By Harry Tournay, Senior Scientist II, Tom Guins, Chief Economist and Russell Walker, Principal Investigator II, TTCI; and Robin Andersen, Vice President Operations, Mitsui Rail Capital, LLC

TTCI the assumptions made as listed in Table 1.

Based on these assumptions, and with reference to Figure 1 (opposite): • Cars fitted with M-976 trucks develop approximately 70% fewer WILD wheels than the overall fleet.

• WILD wheel removals for the specific 350-car fleet studied are similar to those for all cars fitted with M-976 trucks.

Other, very limited wheel removals were random and generally due to either worn flanges or treads (Why Made Causes 60, 62, 63 and 64). The wheel treads of those cars inspected suggested uneven wear patterns and asymmetry with respect to location in the car. TTCI is investigating whether these uneven wear patterns might be associated with the worn condition of the polymer center bowl liners in the trucks inspected.

Suspension wedges are traditionally a wearing component on a truck as they damp out the energy in the suspension.

Wedge wear is measured in terms of the height of the wedges relative to the bolster in the truck. Wedge height measurements in the two cars indicated wedge wear of

Figure 1. Comparison of WILD wheel removals between cars equipped with M-976 trucks and all other cars fitted with non- M-976 trucks.

approximately 75% of the allowable wear suggested by the suppliers. TTCI is currently testing these trucks to determine the influence of this wear on truck performance.

After approximately one million miles in revenue service, M-976 trucks are in

excellent condition. Data suggests that WILD wheel removals are significantly reduced. TTCI is further investigating the root cause for polymer center bowl liner degradation and will quantify the influence of wedge wear on truck performance.

- New Publication -

Development and Operation of New York’s IRT and BMT

by Alfred E. Fazio, P.E. History does repeat itself. In his latest work, Fazio connects the dots for today's operational officers by outlining the relevance of modern challenges to those faced by our forefathers of operational design. Many of these issues are brought to life by exploring examples learned from mitigating various issues and tactics used when the NYCTA assumed control of the BMT and IRT lines. The author's work includes reviews of papers and analyses by operational experts of the early twentieth century such as William Parsons, Frank Sprague, Fred Lavis, and Bion Arnold.

Additional Information: The book concludes with a series of historical case studies that are directly pertinent to modern design and operations, including HudsonBergan Light Rail's Bayonne Flyer and “three roads,” BART operations, and the Washington METRO's capacity challenges. It includes graphical analysis, technical drawings, and suggestions for further reading on critical topics.

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Include $11.99/U.S.A. $21.20/Canada S&H. S&H charges based on ground delivery for a single copy in US/Canada. Contact us for S&H on orders for multiple copies. Company invoicing available in US/Canada. All other countries, pre-payment is required and appropriate S&H will be added. US funds only. Allow 15 days for delivery. Nebraska residents add appropriate sales tax.

April 2018 // Railway Age 37

RailInc

Steady State

Railinc’s annual North American freight railcar review indicates only minor shifts in fleet makeup.

By David Humphrey, Ph.D., Senior Data Scientist, Railinc Corp.

38 Railway Age // April 2018

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R

the previous robust building cycle rather than any broader economic trends.

In the past 25 years, GRL 286 cars have accounted for 76% of all new additions to the fleet. This trend continued in 2017 as 87% of new equipment were GRL 286 cars (Figure 4). The number of GRL 263 cars added in 2017 decreased by about 4,400 from 2016.

GRL 286 cars dominate among recent additions to the fleet because they enable operational efficiencies that reduce costs and ease logistics challenges. The fleet continues to add GRL 263 and GRL 220 cars but at a much lower rate than GRL 286 cars. The last year that non-GRL 286 cars led among new additions to the fleet was in 1992.

More than 700 equipment type codes (ETCs) appear in the Umler equipment registry. Of those, 10 accounted for 53% of the fleet in 2017. For the third time since 2011, nine of the top 10 car types are either tank cars or covered hoppers—the two largest in the revenue-earning fleet. The rankings were unchanged in 2017 compared to 2016.

As the demographics of the car types change, so do the average car sizes and the total combined capacity of all the units in a car type. For example, with the growth in the tank car population, the total fleet capacity has increased by 46% since 2009. Most new tanks are large, which has pushed the average car size up about 7% since 2009. The total fleet capacity for covered hoppers has increased as well, by about 17% over the same period. However, the average car size has decreased because most new covered hoppers are small.

In the past decade, the boxcar population has decreased, which has driven down the total fleet capacity. Large

Bruce Kelly

ailinc’s annual analysis of the North American revenue-earning railcar fleet reveals that fleet size increased slightly in 2017, with the two largest subfleets—covered hoppers and tank cars—accounting for all growth. One of the smallest subfleets—hoppers—continued its decline in 2017. The average car age was unchanged, and new cars again trended large, with the majority having 286,000 pound gross rail load (GRL).

Total fleet size grew 0.3% in 2017, compared to 1.5% the previous year.

Covered hoppers grew the most of all car types, up 2.9%, followed by tank cars, up 0.3%. Gondolas led declines, down 3.2%, followed by hoppers, down 1.9% —the eighth consecutive year of decline. Flat cars dipped 1.1%. After holding steady in 2016, boxcars—the smallest subfleet—were down 0.3%.

The fleet realized a net increase of 4,000 cars in 2017 but grew at its lowest rate since 2011. At the end of 2017, it totaled 1.632 million units, up 0.3% from the previous year (Figure 1).

The average fleet age of 19.5 years was unchanged in 2017 after five consecutive years of decreases. This suggests new cars are joining the fleet at the same rate as older cars are exiting (Figure 2).

The number of GRL 286 cars added to the fleet declined by about 33% in 2017.

However, these cars accounted for 87% of all new additions in 2017 and about 80% in the past decade.

About 96,000 new cars joined the fleet in the past two years (Figure 3).

However, 2017 was the first year since 2010 that the number of new cars added was less than 40,000. The decline reflects

Railinc

railwayage.com

Figure 1: Fleet Size By Group (in thousands)

April 2018 // Railway Age 39

RailInc

Figure 2: Average Age By Year

Figure 3: Number of Cars By Age

Figure 4: Cars By Age and GRL (Gross Rail Load)

boxcars have joined the fleet, which led to an increase in average car size, but not at a fast enough rate to offset the population loss.

Covered hoppers, gondolas, open hoppers and boxcars carry commonly shipped commodities, and make up a sizable percentage of the fleet.

From 2011 to 2016, this report presented data on individual car types grouped by their 40 Railway Age // April 2018

capacity or GRL, which is the sum of the weight of the car and the lading within the car and represents the maximum allowed loaded weight of the car. This year, as in the 2017 report, we present select car types by the kinds of commodities they carry. This provides a more nuanced view of these car types. For example, while covered hoppers carry grain, sand, plastic pellets and other

commodities, the types of covered hoppers that transport each commodity are very different in their characteristics.

Plastic Pellets: Covered hoppers are commonly used. This commodity subfleet added about 12,500 cars in the past two years, more than in the previous 10 years combined. Cars with equipment type code C214 comprise nearly the entire commodity subfleet as defined here, make up 7% of the revenue-earning fleet, and are the third-largest equipment type. New railcars have trended large. Of the cars added to this subfleet in the past 20 years, 89% have had a capacity of 6,000 cubic feet or more.

Grain and Fertilizer: Railroads move this in large covered hoppers. The subfleet added about 23,500 new cars in the past two years and now comprises about 17% of the fleet. Two types—C114 and C113—are the most populous and account for about 95% of this subfleet.

Larger covered hoppers with capacities of at least 5,000 cubic feet have made up 87% of additions to this subfleet in the past 20 years.

Sand and cement: Small covered hoppers are used. Over the past eight years, this fleet has added almost 72,000 of four covered hopper equipment types—C111, C112, C311, and C312. About 95% are C112, which was the fourth most populous equipment type in 2017. Because of the density of the commodity, these cars tend to be smaller; almost all have a capacity of just over 3,000 cubic feet.

Coal: Shipped primarily in gondolas and open hoppers; these cars still made up a sizable portion of the fleet—13%, or 216,000 railcars—in 2016 and 2017. About 74% of these cars were added between 1992 and 2012. In the past four years, about 1,700 have joined the fleet, but only about 70 were added in the past two years.

Aggregates: Commodities such as limestone and crushed stone are shipped in gondolas and open hoppers. The number added to the fleet in 2016 and 2017 was up 43% over the previous two-year period.

Boxcars: Used to ship a wide variety of products, from consumer goods and paper products to automotive parts, this fleet is older than other car types. Boxcars built in the past two years account for about 45% of all box cars added to the fleet in the past 12 years, reflecting the replacement of cars that were aging out.

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People / 100 years / Events May 5-9, 2018

Doug Kelsey TriMet

High profile: The TriMet Board of Directors named Chief

Operating Officer Doug Kelsey as the agency’s General Manager.

Since joining TriMet in 2015, Kelsey implemented a strategy to significantly improve rail on-time performance from 75% in November 2015 to more than 88% by November 2017. Kelsey implemented the agency’s first comprehensive strategic business plan, and launched a rail safety review that has led to a more than 200% reduction in railroad operating rule violations in a single year. Kelsey, a Canadian citizen, will oversee an agency with a $532 million operating budget that serves a population area of 1.5 million people and transports an average of more than 304,700 daily riders. He said the transit agency is in a “wonderful position” due to an expected influx of new revenue tied to a state transportation package approved in 2017 and an increase in payroll taxes it charges to employers and self-employed workers.

C

SX appointed Angela Williams as its new Vice President and Controller as successor to Andrew Glassman. Williams’ appointment follows an announcement from Glassman that he will leave the company in pursuit of other opportunities as of June 30, 2018. Glassman will stay on through June during the transition. Williams had served as CSX’s Assistant Controller. She joined CSX in 2003 and has worked in various roles in the accounting organization.

Prior to that, Williams was employed by KPMG LLP’s audit practice after serving in multiple accounting and internal audit positions at Winn-Dixie Stores, Inc. HNTB has brought on Edmond Hunter, CCM, as a Senior Transit and Rail Project Manager, based in Chelmsford, Mass., He will play a role in helping the firm’s transit and rail clients plan and implement programs that provide passenger services.

Norfolk Southern named Michael R. McClellan and Claude E. “Ed” Elkins Vice President Strategic Planning and Vice President Industrial Products, respectively.

McClellan will report to NS Chairman, President and CEO James A. Squires. Elkins will report to NS Executive Vice President and Chief Marketing Officer Alan H. Shaw.

Protran Technology, a division of Harsco Rail, named Kyley Holmstrom Director of Sales. Holmstrom most recently worked as general manager for transit sales at LB Foster.

TriMet General Manager Doug Kelsey (see High Profile, above) appointed Roland Hoskins as Executive Director of Maintenance Operations. Hoskins will manage TriMet’s $129 million maintenance program and oversee the agency’s maintenance of fixed-route buses, light rail vehicles and non-revenue vehicles.

100 years ago in railway age gazette aPRIL 1918

AMERICAN ASSOCIATION OF RAILROAD SUPERINTENDENTS (AARS) DERAILMENT INVESTIGATION SEMINAR DoubleTree by Hilton Hotel San Pedro, Calif. https://supt.org/page-1499874

May 16-17, 2018

TRAFFIC CLUB OF CHICAGO 111TH ANNUAL DINNER AND GOLF OUTING McCormick Place Skyline Ballroom Chicago http://www.traffic-club.org/event/ meeting/88/111th-annual-dinnerand-golf-outing

May 16-18, 2018

NORTH AMERICAN RAIL SHIPPERS ASSOCIATION (NARS) 2018 ANNUAL MEETING Hyatt McCormick Place Hotel Chicago, Ill. https://www.railshippers.com/event/ nars-2018-annual-meeting/

May 21-24, 2018

58TH ANNUAL RSSI C&S EXHIBITION CenturyLink Center Omaha, Neb. https://www.rssi.org/2018registration.html

June 6-7, 2018

RAILWAY AGE FOURTH ANNUAL RAIL INSIGHTS CONFERENCE Union League Club of Chicago Information: http://www.railwayage. com; conferences@sbpub.com.

Large Expenditures Needed for Maintenance of Way

June 26-27, 2018

It is a matter of common knowledge among railroad men that the present condition of railway tracks and structures in the United States is not in conformity with established standards. In other words, there is an appreciable amount of what is known as deferred maintenance. This is apparent to any seasoned traveler who has noticed the deterioration of the riding qualities of the tracks, even on some of the highest grade main lines.

The Hilton Philadelphia City Avenue Philadelphia, Pa. http://www.terrapinn.com/ conference/metrorail-americas/ index.stm

railwayage.com

WORLD METRORAIL CONGRESS AMERICAS 2018

April 2018 // Railway Age 43

Products Trackmobile Atlas Holds Up Under Tough Rail Conditions

Trackmobile’s Atlas model is designed to better accommodate railroad application locations requiring greater tractive effort due to unfavorable conditions or applications requiring longer strings of railcars to be moved in onsite spotting and switching activity.

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Delivering 43,900 pounds of single-coupled tractive effort and 60,200 pounds when double-coupled, the Atlas not only offers more capacity, but also offers state-of-theart operator comfort and ease of use, and includes many options as standard equipment. Proven in onsite testing at several different customer locations with challenging environments, the Atlas is the highestcapacity model produced by Trackmobile. It features a shorter wheelbase and machine length, to make it more agile and easy to maneuver in adverse track conditions and inclement weather as a locomotive replacement for in-plant usage.

Trackmobile is the leading manufacturer of bi-modal railcar movers, with more than 11,000 sold globally. The LaGrange, Ga.based company created the railcar mover category in 1948 as a solution to specific customer needs in railcar switching. Sales and service is handled by specifically trained and authorized 8/17/16 3:25 PM dealer Page 1distributors.

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railwayage.com

Ad Index Company

Phone #

Fax #

URL/Email Address Page #

Alstom Transport SA

514-673-5278

elaine.west@transport.alstom.com

C4

ENSCO

703-321-4515

dick.matthews@ensco.com

34

GEORGETOWN RAIL EQUIPMENT CO

512-869-1542

512-863-0405

bachman@georgetownrail.com

C2

HOLLAND LP

708-672-2300

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rgehl@hollandco.com

35

KINKISHARYO INTERNATIONAL LLC

732-230-4501

732-979-2378 businessdevelopment@kinkisharyo.com

28

Light Rail

212-620-7208

conferences@sbpub.com

24-25

loram

763-478-6014

763-478-2221

sales@loram.com

19

LTK ENGINEERING

215-641-8826

215-542-7676

tfurmaniak@ltk.com

22

MAC PRODUCTS

973-344-0700

973-344-5891

edward.gollob@macproducts.net

3

Progress Rail A Caterpiller Co

256-505-6402

256-505-6051

info@progressrail.com

17

Rail Insight

212-620-7208

conferences@sbpub.com

12-13

railquip inc.

814-684-8484

770-458-4157

sales@railquip.com

23

402-346-4300

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RSSI

502-327-7774

502-327-0541

SIEMENS CORPORATION

railway education bureau

bbrundige@sb-reb.com 11,44,C3 rssi@rssi.org

9

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21

Sperry Rail Services

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31

town & country crossings

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10

636-686-9194

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, KY, Jonathan Chalon 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7224 Fax: (212) 633-1863 jchalon@sbpub.com CT, DE, DC, FL, GA, ME, MD, MA, NH, NJ, NY, NC, OH, PA, RI, SC, VT, VA, WV, Canada – Quebec and East, Ontario Jerome Marullo 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7260 Fax: (212) 633-1863 jmarullo@sbpub.com

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AR, AK, AZ, CA, CO, IA, ID, IL, In, KS, LA, MI, MN, MO, MS, MT, NE, NM, ND, NV, OK, OR, SD, TN, TX, 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 The Netherlands, Britain, France, Belgium, Portugal, Switzerland, North Germany, Middle East, South America, Africa (not South), Far East (Excluding Korea /China/India), All Others, Tenders Louise Cooper International Area Sales Manager The Priory, Syresham Gardens Haywards Heath, RH16 3LB United Kingdom +44-1444-416368 Fax: +44-(0)-1444-458185 lc@railjournal.co.uk

Scandinavia, Spain, Southern Germany, Austria, Korea, China, India, Australia, New Zealand, South Africa, Russia, Eastern Europe Baltic States, Recruitment Advertising Michael Boyle International Area Sales Manager Nils Michael Boyle Dorfstrasse 70, 6393 St. Ulrich, Austria. +011436767089872 mboyle@railjournal.com 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

AILWAY GE April 2018 // Railway Age 45

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7/18/17 11:52 AM

Financial Edge

Highlights from REF 2018

A

t the 2018 Rail Equipment Finance Conference (REF), the mood was a mix of slight optimism, rugged pragmatism and concerns about the possibility of changes that may impact the variety of industries served by rail and that may be impacted by politics, changes in tax law and impending tariffs. Following are a few highlights.

Adriann janse van Rensburg, Sasol Chemicals, discussed the first wave of polyethylene expansion in North America, why cheap feedstock creates the opportunity for the development of all of this capacity, and where the product is going to go.

Philip Baggaley and Betsy Snyder, Standard and Poor’s, discussed the general economy (healthy), the state of the credit ratings of parties involved in the hauling of freight and leasing of equipment (steady), the impact of tax law changes on ratings (neutral), and the health of ABS transaction for rail equipment after the impact of the cyclical downturn.

Brad White, PriceWaterhouse, discussed the new tax law and nuances that might impact equipment financing. The law might not be the one we get in the future as lawmakers reconcile conflicts over the coming year.

Nicole Leonard, S&P Global Platts, discussed the current market for CBR, the market in Canada and how it is expected to evolve. A lack of pipeline capacity indicates that Canadian CBR is not going away any time soon. Ryan Eckert, The David J. Joseph Co., discussed the scrap market, steel tariffs and trade wars. He expects scrap prices to rise, and a growing economy to increase steel demand. Tariffs,

only 333 new locomotives were built in 2017.

2018? uncertain 48 Railway Age // April 2018

an infrastructure bill and a change in the dollar’s strength may causes changes in underlying market fundamentals.

Oliver Wyman’s Rod Case highlighted how technology across different railroad applications in Europe is changing the way transit is considered. European railroads are showing that service level improvement and efficiency are not just academic topics. Ron Sucik, RSE Consulting, talked about projected intermodal growth for 2018 and into 2019 (3.5%-5%) and about what the future might hold in logistics.

RSI’s Mike O’Malley went through the railcar backlog and the increasing number of tank car retrofits. Total completed to date: roughly 8,000. Dave Murawski, Union Tank Car, said UTC has committed 100% of its 2018 retrofit capacity.

Paul Titterton, GATX and Adam Simeon, Union Pacific, said the boxcar market continues to work between wanting a universal car and needing several car types to serve the customer base. Loads are dropping faster than car supply.

Joe Devoe, DVB Bank, and Dan Wallace, City National Capital Finance, said despite impending accounting rule changes and the evolving interest rate market, companies already leasing do so for factors that won’t change.

Sebastian de Meel presented eight technology trends, focusing on the Internet of Things, AI, automation and 3-D printing as some items that are changing the technological landscape.

FreightCar America President Jim Meyer discussed his efforts to look at the industry from a new perspective, to find the underserved niches that carbuilders have not been focused upon.

Eric Starks, FTR Associates, showed the positive trends for economic growth and trucking demand and price increases that should be favorable to rail. Intermodal should continue to increase.

Todd Kahn, Chicago Freight Car, noted that covered hopper overbuilding continues to keep lease rates depressed. Todd Ellman, GATX, noted that oversupply is slowly decreasing.

Glen Rees of Cummins discussed Tier 3 and Tier 4 engines. Cummins sees

slight optimism, tempered by pragmatism and political angst.” opportunities for additional EPA compliant replacement locomotives due to settlement dollars available from items such as the Volkswagen EPA-based settlement.

Tom Chenoweth of NRE is seeing a big pickup in domestic demand and some rebuilding of units as large as the SD60.

Repowering is an ongoing demand business. Ed Biggs (Biggs Appraisal) noted that only 333 new locomotives were manufactured in 2017. Prospects for 2018 are not much better.

Jason Kuehn, Oliver Wyman, identified the potential crisis in the locomotive market with uncertainty on the supply horizon, emission-related issues and a low level of investment in technology.

Pat Mazzanti, Steven Beal and Greg Schmid (Railroad Appraisal Associates, NRE and Residco) said locomotive valuations are trending downward on older units, while newer units with a higher level of EPA compliance maintain strength.

This article is a condensed version of a full REF 2018 summary available at www. railwayage.com. See also pp. 10 and 38.

Got questions? Set them free at dnahass@railfin.com.

DAVID NAHASS President Railroad Financial Corp. railwayage.com

We’re current, are you? FRA Regulations FRA News:

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Qual. and Certif. of Loco. Engineers Order 50 or more and pay only $12.85 each

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800-228-9670 www.transalert.com

Passenger Safety Standards

25.50

22.95

Compliance Manuals BKTRACKCOMP

Part 238 covers: Safety planning/General Requirements - Tier I & II Passenger Equipment - Specific safety planning requirements for Tier II passenger equipment. Part 239 covers: Specific requirements - Review, approval, and retention of emergency preparedness plans - Operational (efficiency) tests; inspection of records and recordkeeping. Softcover. Spiral bound.

212 pages.

Track and Rail and Infrastructure Integrity Compliance Manual - Volume II, Track Safety Standards - Part 213 Technical Manual for Signal and Train Control Rules. - Includes Part 233, 234, 235, 236

35.00 49.95

Updates from the Federal Register may be supplied in supplement form.

31.50 44.95

The Railway Educational Bureau 1809 Capitol Ave., Omaha NE, 68102 I (800) 228-9670 I (402) 346-4300 www.RailwayEducationalBureau.com

Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN UP TO $10.00 $4.50 $8.75 25.01 - 50.00 10.78 16.80 10.01 - 25.00 7.92 12.65 50.01 - 75.00 11.99 21.20

Orders over $75, call for shipping

*Prices subject to change. Revision dates subject to change in accordance with laws published by the FRA. 4/18

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