Railway Age February 2024 by Railway Age

FEBRUARY 2024

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

Cinthya Melissa Guillén Pinales CPKC

25 40 UNDER

Rising Young Professionals

2024 LEGISLATIVE OUTLOOK Freight Railroads Face Swirling Policy Currents

TTC OPERATED BY ENSCO Close Encounters With the Impact Wall railwayage.com

August 2017 // Railway Age 1

AILWAY GE

February 2024 2020 February

FEATURES Under 40 13 25 Rising Young Professionals

36 Freight Rail Policy Outlook Swirling Policy Currents

Focus – Mechanical 40 Tech Force Control Operated By ENSCO 43 TTC Up Close at the Impact Wall

DEPARTMENTS 4 Industry Indicators 6 Industry Outlook

COMMENTARY

7 Market

2 From the Editor

45 People

8 Watching Washington

46 Professional Directory

10 Financial Edge

46 Classifieds

48 ASLRRA Perspective

47 Advertising Index

COVER PHOTO

TTC Operated By ENSCO

Cinthya Melissa Guillén Pinales, Superintendent Sr. Control & Operation, Canadian Pacific Kansas City. CPKC photo

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February 2024 // Railway Age 1

FROM THE EDITOR

AILWAY GE SUBSCRIPTIONS: 847-559-7372

Seventeen Years Ago

n this issue, Contributing Editors Frank N. Wilner and Donald M. Itzkoff separately address all of the policy and legislative challenges freight railroads face this year (see pages 8 and 36). All these challenges are a 30,000-gallon hazmat tank car’s worth of spillover from 2023. They’re mixed with a few bottles’ worth of malodorous thioacetone (bad feelings) from the labor dispute of 2022, and infused with dense, toxic political brain fog. Often, they’re accompanied by howling noises from self-righteous, gavelpounding attention seekers who populate Capitol Hill hearings. It’s deja vu all over again. While perusing PDFs of past columns, I came across one that struck a chord. Seventeen years ago, in 2007, the industry was in the midst of tense labor negotiations and battling reregulation attempts. Sound familiar? Early that year, a Class I manager who wished to remain anonymous sent me an opinion on why at least one rail union’s support of reregulation really didn’t make any sense. This sounds not-sostrangely familiar: “The most curious element of efforts to re-regulate the rail industry is the support of some rail unions. They say that rail management is too concerned with profits to do all it can to improve safety. “Anyone associated with rail management realizes that every safety failure costs money—but that it’s not proper to say so. It’s proper only to express concern for the pain and suffering of any individual who is injured and for their families. But the fact

remains: Accidents cost money and reduce the opportunity to make a profit. Maybe this should be said out loud, often—especially around the investment community. “How do accidents cost money? In pay or lost time. In repairs to or replacement of damaged property. All these costs are easily attributed to a specific incident. Less easily attributed, and often overlooked, are hidden costs—things like pay to workers near the accident who accomplish nothing while the investigation and cleanup occurs. When the railroad does not work smoothly, other areas don’t mesh. Crews outlaw, connections are missed, and people work overtime. Moneys are expended to ‘catch up,’ and service reliability takes a hit—which may cost the railroad future business. “The mindset of some union officials and some management is to cause trouble for the other. We must all remember that this does not advance either safety or profitability. The only cheap accident is the one that doesn’t occur.” Many long strides have been taken to improve life for this industry’s hard-working agreement employees, paid sick leave among the longest. To those of you in management and labor whose myopic mindset is about “causing trouble for the other,” stop swinging spike mauls at each other if you want to keep the predators off your railroad tracks. You can agree to disagree, respectfully. Civil discourse is in short supply these days, and it’s only going to get worse. Let’s not add to the toxic fumes. Let’s make sure we always have each other’s backs.

WILLIAM C. VANTUONO Editor-in-Chief

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2 Railway Age // February 2024

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Industry Indicators ’IN 2023, CARLOADS WERE UP YEAR-OVER-YEAR IN 10 OF THE 20 CATEGORIES AAR TRACKS’ “Total carloads on U.S. railroads (excluding the U.S. operations of Canadian and Mexican railroads) were up 7.3% in December 2023 over December 2022,” the Association of American Railroads reported last month. “That’s their biggest year-over-year monthly percentage gain since February 2022. Total carloads were up 2.0% in Q4 2023 over Q4 2022, their best year-over-year quarterly percentage gain since Q1 2022. U.S. railroads originated 11.70 million total carloads in 2023—up 0.7% (81,504 carloads) over 2022, up 0.7% (78,633 carloads) over 2021, and the most for a full year since 2019. In December 2023, U.S. intermodal volume, which is not included in carloads, was up 10.2% over December 2022, intermodal’s biggest yearover-year percentage gain since June 2021. Intermodal was up 5.5% in Q4 2023 over Q4 2022, its biggest quarterly percentage gain since Q2 2021. For all of 2023, U.S. intermodal originations totaled 12.67 million containers and trailers—down 4.9% (657,165 units) from 2022, down 9.6% (1.35 million) from 2021, and the lowest annual volume since 2013. In 2023, containers were 94.9% of U.S. intermodal units, a record high. 2023 is only the second year in our records (1996 was the other) in which total carloads were up over the previous year but intermodal was down. In 2023, carloads were up year-over-year in 10 of the 20 categories the AAR tracks.”

Railroad employment, Class I linehaul carriers, december 2023 (% change from december 2022)

TOTAL EMPLOYEES: 122,343 % CHANGE FROM DECEMBER 2022: +2.49%

Transportation (train and engine) 52,419 (+4.47%)

Executives, Officials and Staff Assistants

TRAFFIC ORIGINATED CARLOADS

FOUR WEEKS ENDING DEC. 30, 2023

MAJOR NORTH AMERICAN RAILROADS BY COMMODITY

DEC. ’23

DEC. ’22

% CHANGE

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

132,325 13,316 44,072 43,267 185,624 89,921 281,543 6,957 21,212 30,484 72,130 21,766 51,924 23,884 93,015 88,109 15,923 42,012 16,040 28,851

133,698 15,205 41,998 39,318 161,451 79,171 261,746 6,693 19,512 28,925 70,548 20,035 46,739 20,051 83,147 89,945 16,139 38,266 15,238 29,853

-1.0% -12.4% 4.9% 10.0% 15.0% 13.6% 7.6% 3.9% 8.7% 5.4% 2.2% 8.6% 11.1% 19.1% 11.9% -2.0% -1.3% 9.8% 5.3% -3.4%

TOTAL NORTH AMERICAN CARLOADS 1,302,375

1,217,678

7.0%

8,150 (+1.91%)

Intermodal

Professional and Administrative

MAJOR NORTH AMERICAN RAILROADS

10,310 (+2.81%)

Maintenance-of-Way and Structures 28,413 (–0.38%)

Maintenance of Equipment and Stores

FOUR WEEKS ENDING DEC. 30, 2023

BY COMMODITY

DEC. ’23

Trailers Containers TOTAL UNITS

53,433 1,252,226 1,305,659

DEC. ’22

% CHANGE

68,011

-21.4% 12.1% 10.2%

1,116,828 1,184,839

Source: Rail Time Indicators, Association of American Railroads

18,066 (+1.41%)

Transportation (other than train & engine) 4,985 (+3.08%)

Source: Surface Transportation Board

4 Railway Age // February 2024

railwayage.com

TOTAL North American CARLOADS, dec. 2023 VS. dec. 2022

1,302,375

AILWAY GE

1,217,678

december 2023

december 2022

Short Line And Regional Traffic Index CARLOADS

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

ORIGINATED DEC. ’23

ORIGINATED DEC. ’22

% CHANGE

57,223 22,660 24,191 13,114 30,814 7,844 9,270 2,726 21,224 11,300 2,136 2,371 15,310 14,396 44,508 11,728 62,296

51,426 21,699 22,867 11,370 28,640 7,038 8,199 2,781 17,746 8,388 2,349 1,746 16,010 12,129 38,515 10,777 66,076

11.3% 4.4% 5.8% 15.3% 7.6% 11.5% 13.1% -2.0% 19.6% 34.7% -9.1% 35.8% -4.4% 18.7% 15.6% 8.8% -5.7%

TOTAL U.S. Carloads and intermodal units, 2014-2023

(in millions, year-to-date through DECEMBER 2023, SIX-WEEK MOVING AVERAGE)

ARE YOU A RAILROAD OR SUPPLIER SEARCHING FOR JOB CANDIDATES?

Visit http://bit.ly/railjobs To place a job posting, contact: Jerome Marullo 732-887-5562 jmarullo@sbpub.com

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February 2024 // Railway Age 5 RA_JobBoard_1/3Vertical.indd 1

7/27/21 3:02 PM

Industry Outlook

REPUBLICAN PATRICK J. FUCHS, 35, HAS BEEN NOMINATED BY PRESIDENT BIDEN TO A SECOND TERM ON THE SURFACE TRANSPORTATION BOARD (STB). His first term expired earlier last month, but the STB’s statute permits members to remain in office an additional 12 months pending Senate confirmation. Fuchs now awaits a Senate Commerce Committee hearing to determine whether his name goes forward for a Senate-floor confirmation vote. A second term would extend to January 2029. While the Commerce Committee is expected to recommend confirmation, a Senate-floor vote cannot be assured given current election-year politics. The more certain path to a confirmation vote, assuming Fuchs is green-lighted by the Senate Commerce Committee, is to be paired with a Democrat and both names be voted in tandem to assure bipartisan support. Although Democrat and STB Chairperson Martin J. Oberman said last year he would resign his seat this spring, the likelihood of a Democrat being nominated to succeed Oberman and be paired with Fuchs is even more dicey. Senate Republicans will want to keep the Oberman Democratic seat vacant for nomination of a Republican by Donald Trump, should he be elected in November. Fuchs need not be paired with a STB Democratic nominee, however. There are Democrats already nominated to the National Mediation Board and National Transportation Safety Board awaiting Senate confirmation, and Fuchs also could be paired with a Democratic nominee to a non-transportation related agency. What is certain is Fuchs’ support for a 6 Railway Age // February 2024

second term from rail shippers, who have used words as “calm,” “solid,” “transparent” and “seriously thoughtful” to describe him. Railroads, so far silent, are expected to support his confirmation. Rail labor has indicated support for decisions that had Fuchs’ vote. Notably, Oberman—who is close with fellow-Chicagoan Dick Durbin, the Senate’s highest-ranking leader behind Majority Leader Chuck Schumer—has consistently praised Fuchs’ work ethic, collegiality and understanding of the law and transportation economics. As a Senate Commerce Committee senior staff member prior to earning his first STB term, Fuchs provided advice on transportation issues to then-Commerce Committee Chairperson John Thune, who holds the second-highest Republican Senate leadership post behind Minority Leader Mitch McConnell. Fuchs is one of 24 former congressional aides to become a rail regulator—there having so far been 117 members of the STB and its predecessor Interstate Commerce Commission (ICC), dating to 1887. In his nomination statement, President Biden said that during Fuchs’ first term, he “advanced transportation policies that address unreasonable practices and inadequate service, adjudicated railroad transactions that generated new capital investment and routing options, and streamlined inefficient processes that unduly burden the public.” Biden recalled that Fuchs, when serving the Senate Commerce Committee, “played an integral role in the development and enactment of significant railroad legislation, including the reform of railroad infrastructure programs and the first reauthorization of the STB” since its 1996 creation—a bill Fuchs had a hand in drafting. For that, Thune complimented Fuchs ahead of his first-term confirmation vote, saying, “Railroads and their customers will benefit from his sense of fairness and his talent.” In fact, Fuchs helped draft six bills directly affecting freight and passenger railroads. They included the rail and hazardous materials titles of the FAST (Fixing America’s Surface Transportation) Act. That law, the first rail passenger service reauthorization in almost a decade, instituted reforms improving Amtrak’s permitting and performance, encouraging private-sector competition on routes. It also created the CRISI

(Consolidated Rail Infrastructure and Safety Improvements) program, drafted by Fuchs, that has been a major source of funding for short line railroads’ capital projects to improve track, reduce grade crossing delays and expand options for shippers. Fuchs earned a double-major undergraduate degree in economics and political science, and a master’s degree in public policy analysis and management, with an emphasis on transportation policy, economics and statistics, from the University of Wisconsin. As a graduate student, he participated in an international academic program with the National University of Singapore focusing on international policy and economics. Prior to joining the Senate Commerce Committee Republican staff, Fuchs was a policy analyst with the White House Office of Management and Budget, a State Department Presidential Management Fellow serving in The Hague, Netherlands, and a research assistant at the National Center for Freight and Infrastructure Research and Education. Expect continued speculation on the Oberman vacancy. Some shippers are quietly promoting for nomination former House Transportation & Infrastructure Committee Chairperson Peter DeFazio (D-Ore.), now retired from Congress. DeFazio wouldn’t be the first congressional lawmaker to become a rail regulator—but none since 1958. Seven former House members were later nominated and confirmed to the ICC. DeFazio’s personality likely will work against him, however. Significantly, despite chairing the pivotal House committee initiating transportation legislation, DeFazio was locked out of crucial negotiations on the bipartisan IIJA (Infrastructure Investment and Jobs Act), a priority of the Biden administration. Upon Oberman’s departure, current Vice Chairperson Karen J. Hedlund will serve as acting chairperson. By statute, only the President may designate a permanent chairperson from among sitting Board members. Biden could name a new chairperson upon Oberman’s departure, await the confirmation of Oberman’s successor to do so, or leave the permanent chair vacant to be filled in 2025 following November elections. With Democrat Oberman gone, the Board will have two Democrats and two Republicans. – Frank N. Wilner railwayage.com

Patrick Fuchs

Fuchs Renominated to Second STB Term

Market ZTR, GATX PIVOT™ to Telematics

ZTR and GATX have signed a strategic agreement to install PIVOT™, ZTR’s new railcar remote monitoring telematics solution, on GATX’s North American railcar fleet. It will interface, the companies say, with the RailPulse platform. ZTR describes PIVOT™ as an advanced remote monitoring solution with wireless technology purpose-built for the railcar industry. BlackBerry Radar technology powers PIVOT™ asset tracking, creating “the potential to track GPS location, trip progress, impact detection, load/unload status, hand brake position and the open/close status of doors, hatches as well as gates,” ZTR notes. “The platform also has a full suite of reporting and configurable alerts, turning any railcar into a smart railcar. Railroads and shippers can benefit from reduced turnaround times, instant identification of delayed or misrouted railcars, and continuous monitoring of the integrity of goods and railcars, all while reducing overall operating costs and maximizing utilization of their existing fleet.”

NORTH AMERICA

WABTEC was awarded $157 million brake system order from the Mobility Business of SIEMENS INDIA PRIVATE LIMITED for INDIAN RAILWAYS’ (IR) new line of 1,200 electric locomotives for freight service. Wabtec will supply Siemens with brake systems from the Hosur plant— its primary manufacturing facility for transit products in India—and provide maintenance services for 35 years. Siemens and IR will assemble the 9,000-hp locomotives at the IR factory in Dahod, in the state of Gujarat, India, and maintain them at IR depots in Vishakhapatnam, Raipur, Kharagpur, and Pune. Siemens was awarded the $3.8 billion IR contract, which includes 35 years of full-service maintenance, in January 2023. At that time, it was the largest locomotive order the company had ever won.

METROLINX last month announced that ONXPRESS OPERATIONS INC. (OOI), a member of ONXPRESS TRANSPORTATION PARTNERS (ONxpress), will serve as the new operations and maintenance partner for the agency’s GO Transit system in the Greater Golden Horseshoe Area over a 23-year term, beginning Jan. 1, 2025. ONxpress is a consortium comprised of AECON, FCC CONSTRUCCIÓN S.A. (FCC), DEUTSCHE BAHN INTERNATIONAL OPERATIONS and ALSTOM. Each partner holds a 25% interest in ONxpress, and Aecon Concessions holds a 28% interest in OOI, a partnership with Deutsche Bahn International Operations. Through OOI, ONxpress will operate and maintain the trains, work with Metrolinx on train service planning and in the network operation center, introduce new operational technology and process solutions, and provide maintenance services for new assets, such as electrification and signaling. This is an important milestone for OnCorr, the second and largest piece of the GO Expansion program, as one of two proposals making up the development phase, according to Metrolinx. Aecon also holds a 50% interest in the project’s civil construction partnership with FCC, which is advancing work to finalize

GATX/ZTR

WORLDWIDE

railwayage.com

another contract by the end of 2024 for the design and construction scope of the OnCorr project. Early construction activities are ongoing, and the development phase will conclude upon finalizing this contract. A U.S.-based rail and leasing services company has signed a contract valued up to $5 million with Ra’anana, Israel-based RAIL VISION for its Switch Yard Systems. The first phase of the contract is valued at $1 million, and follow-on orders, worth up to $4 million, are subject to approval by the new, unnamed customer, which is said to be “a prominent player in the rail services sector in North America.” The contract also includes “specific purchase quotas that, if met, provide the customer with exclusivity in the North American industrial rail yards switching segment. The Switch Yard System enables railway operators to streamline and enhance safety by combining advanced vision sensors with artificial intelligence and deep learning technologies to automatically detect and classify objects within a range of up 200 meters), in diverse weather and light conditions. Additionally, it can detect switch states to support remote railcar coupling, and enables the monitoring of operational dead zones to facilitate secure railcar coupling.” February 2024 // Railway Age 7

Watching Washington

Can the Surface Transportation

ail captive shippers—primarily of chemicals and coal— unable to utilize barge or truck alternatives and lacking two-railroad competition owing to decades of mergers are an unhappy lot. They pay more because they lack modal choices. “They may be destined to future unhappiness if public policy focus does not change,” says retired University of Tennessee economist Mark Burton. Public policy can erase discriminatory rate spreads, but decades of such rigid fiat brought the rail industry to the brink of financial ruin. Redemption was delivered by Congress in 1980 through partial economic deregulation—lawmakers recognizing the essentiality of demandbased differential pricing whereby those with fewer transportation alternatives necessarily pay more to keep the rail network solvent. The economic rationale is railroads have relatively high fixed costs to be paid in full regardless of whether 100,000 carloads are transported or just 1,000. The costs include building and maintaining—and paying property taxes on—an extensive privately owned infrastructure. Barge and truck operators can charge less because their rights-of-way are government provided, with lower than full-cost recovery user charges. As shippers with competitive options won’t pay more for rail, railroads must charge less if the business is to be had. So long as lower rates at least cover direct costs of the transportation provided— crew compensation, fuel and maintenance associated with infrastructure wear and tear—even a minimal contribution to fixed costs reduces the spread captive shippers must shoulder. Captives cease to be content when they sense the premiums they pay above direct costs exceed what is sufficient to keep the railroad solvent. In 1985, Surface Transportation Board (STB) predecessor Interstate Commerce Commission (ICC) ruled discriminatory pricing should cease when railroads reach revenue adequacy—earning enough

8 Railway Age // February 2024

The economist to whom the genesis of SAC is traced, Gerald R. Faulhaber, testified, “There are several possible right answers to how to test for rate reasonableness, but the current SAC model is without doubt the wrong answer.” Department of Justice Antitrust Division economist Russell Pittman, speaking for himself only, says “there appears to be a growing consensus that the SAC test should be replaced. But by what?”

Mark Burton to maintain the rail system and attract renewal capital. By merging, reducing headcount and aggressively using demand-based differential pricing, railroads reversed their pre-1980 financial decline. STB Chairperson Martin J. Oberman cites a return to investors, through dividends and share buybacks, of $253 billion over the past 14 years. It is impractical for railroads to argue they are not revenue adequate. Yet for more than two generations, efforts by the ICC and STB to develop a methodology protecting captive shippers from market-power abuse have foundered. Intentions aren’t assurances of outcomes. An early regulatory prescription marking-up fully allocated costs by 7% was invalidated by courts as arbitrary. Others were withdrawn as impractical. A Stand-Alone Cost (SAC) constraint, requiring captives construct on paper a hypothetical most efficient stand-alone railroad tailored to its requirements, is so complex as to cost complainants upward of $5 million. Ridiculously lengthy disputes arise over the number of imaginary restroom stalls and quality of switchyard lighting. Shippers have largely ceased filing rate complaints—unwilling to commit additional funds for outcomes viewed as primarily in the railroads’ favor. Even simplified SAC alternatives, said to cost under $1 million, are shunned by shippers.

TRB’S SUGGESTION A congressionally ordered Transportation Research Board study, concluding all methods attempted by the STB “have proved to be slow, costly and inappropriate to many shippers,” suggested detecting pricing outliers, comparing them to the same commodity traveling a comparable distance, then limiting how much the outlier price may exceed the average price. STB STAFF RECOMMENDATION An STB Rate Reform Task Force recommended a rate-of-return analysis focusing on specific assets used by the railroad serving the captive shipper; or a winnertake-all arbitration process—Final Offer Rate Review—with the STB choosing. Railroads have asked a federal court to require the STB continue its “traditional” rate regulatory process. Were public policy to pivot toward private sector solutions as advocated by economists Murray Rothbard and David D. Friedman, railroads and shippers would empanel experts who would jointly add a panel of neutral economists—the three panels collectively deciding grievances. Jointly chosen neutral arbitrators would break ties. Costs would be borne by railroads and shippers. MANDATED RECIPROCAL SWITCHING Two-railroad competition—lost through decades of mergers—could be restored through mandated “reciprocal switching.” A railroad with sole physical access to a shipper facility would interchange railwayage.com

Watching Washington

Board Pivot to Satisfy Shippers? that shipper’s cars, for a regulated fee, to or from a near-by second railroad that would bid for the long-haul. Will duopolists compete? CSX CEO Joe Hinrichs was quoted, “There is a notion in this industry that somehow we all compete with each other, when actually we mostly partner with each other.” Still, an academic study found BNSF and Union Pacific competing for Powder River Basin coal shipments— but during a period before all rail rates began rising in 2002. Then, there is Canada, where unfettered open access is accepted by railroads—so much so that when Canadian Pacific made its unsuccessful bid to acquire Norfolk Southern in 2015, it volunteered system-wide open access as a condition. Yet the Association of American Railroads opposes access mandates. Strikingly, and without explanation, the STB recently cancelled a pending rulemaking mandating reciprocal switching as a means of moderating captive shipper rate increases. It substituted a proposal that access be mandated only if a railroad’s service level falls below a level based on average performance seen during the 2022 supply chain crisis. UNBUNDLING RATES The STB could reverse its 1996 ruling that a railroad need only offer a rate on the route the railroad deems most efficient.

Russell Pittman railwayage.com

As shippers with competitive options won’t pay more for rail, railroads must charge less if the business is to be had. So long as lower rates at least cover direct costs of the transportation provided, even a minimal contribution to fixed costs reduces the spread captive shippers must shoulder.” The STB instead could rule that failure to unbundle and quote separate bottleneck and line-haul segments is an unreasonable practice. Shippers could then challenge the bottleneck rate. DR. PITTMAN’S SUGGESTION The STB could determine commodityspecific mark-ups over variable costs based on the STB’s Uniform Rail Costing System (URCS). Yes, it is an outdated and f lawed accounting allocation method. Many elements date to 1907 and it has built-in averages from when railroads owned most freight cars and line hauls were shorter. But it is used daily as part of the STB’s regulatory tool kit. “The perfect should not be an enemy of the good,” Pittman says, echoing Nobellaureate Robert Solow on the sin of “over-refinement.” Another Pittman approach requires antitrust law changes. If it is determined railroads refuse to compete, “eliminating the railroads’ partial antitrust exemption may indeed improve situations facing some captive shippers and increase overall economic welfare,” he says. Congress also could allow the STB or shippers to bring complaints against railroads for “refusal to deal” to gain reciprocal switching or rate unbundling. Simply threat of a lawsuit could spur lower rates. Where the Supreme Court once frowned on such cases, it ruled in 2000 that, “under certain circumstances,” refusal to deal can be a tort.

RANK-ORDER RATE CAPS Another STB prod could be through its annual Revenue Adequacy Shortfall Methodology, which estimates the amount of revenue a railroad requires from traffic moving above 180% of variable costs—a statutory threshold for bringing a rate complaint. Depending on overall revenue need, the STB could reduce rates incrementally on the highest rated traffic—a laddered approach—until it has exhausted the overage. Initially, all traffic moving at a revenue to variable cost (R/VC) ratio of 500 might be reduced to 450—then, if necessary, to 425 or 400. The calculation would be performed annually. “It’s time we created a new, forward thinking set of regulatory goals important to the 21st century,” Burton says. Railway Age Capitol Hill Contributing Editor Frank N. Wilner was formerly assistant vice president for policy at the Association of American Railroads and an STB chief of staff. HIs new book, Railroads & Economic Regulation, is available from Simmons-Boardman Books at www.transalert.com, 800-228-9670.

FRANK N. WILNER Capitol Hill Contributing Editor February 2024 // Railway Age 9

Financial Edge Pre-Pandemic Rail is a Thing of the Past

nly those people that are capable of being a soulless rake (a rake is a person prone to excess) leading a careless and superfluous life can avoid concerning themselves with mundane issues of the working world such as measuring productivity. For the rest of the population, including the parties involved in the rising (and occasionally falling) fortunes of the North American rail market, data matters. Railway Age reported that in the Jan. 19, 2024 Federal Register, the STB issued its annual five-year rail industry productivity calculation. Railroad productivity is, in essence, how efficiently railroads move freight. The rail productivity measure is a five-year backwards looking window. This being early 2024, the data for 2023 is not used in this calculation. The STB reported a slight drop of 1.5% in the five-year measure. The decrease was expected or at least unsurprising, considering the challenges to and outward facing perspective on railroad service that have been a recent focus. These productivity number levels are not surprising. Non-farm productivity (tracked by the Bureau of Labor Statistics) rose 1.5% in the timeframe of 2019 to 2023, so almost 30% more than rail but not in an absurdly eyepopping way. What makes rail productivity so interesting? Start with a few basic facts. For calendar year 2018 (ending Dec. 29, 2018), total U.S. loadings (including intermodal) were 28.11 million. 2018 was a banner year for rail loadings. The 2018 total is a 3.7% increase over 2017. Fast forward to 2022. For calendar year 2022 (ending Dec. 31, 2022), total U.S. loadings were 25.4 million. That’s a decrease of 9.6% (2.7 million loads). In 2018, July Class I employment was roughly 147,700. In November 2022, the number was 118,944. That’s a 19% difference. More interesting is that the 2022 number is roughly around where employment was in May 2020, when the pandemic caused significant layoffs. Need some more information? Systemwide (again U.S.) velocity on Class I railroads in the early part of 2018 is roughly the same velocity as the railroads were operating at the end of 2022 (approximately 24 MPH, see the chart). Perhaps the most interesting factoid

10 Railway Age // February 2024

spanning that period is what the STB calls “Adjusted Net Railway Operating Income.” This is a measure used in determining Railroad Revenue Adequacy. For the year ending 2018, that number was (across all Class I U.S. operations) US$ 19.77 billion, and in 2022 it was US$ 23.67 billion. That is an increase of 16.5%. One key difference between general nonfarm productivity and rail productivity is that U.S. GDP increases pretty much every year. It means that the U.S. economy is always growing. It is the pace of growth that matters and impacts daily lives. Even in the pandemic year of 2020 after an incredible economic contraction, the U.S. economy still managed to squeak out a full year expansion. Not exactly so with the rail economy. To summarize: Loadings have decreased, velocity is the same, the industry employs significantly fewer people and income is way up. Yet through all of this, productivity over the time frame has actually decreased. Now—you decide—is the rail economy expanding or contracting? Rail productivity goes into calculating rail rate reasonableness. Certainly, a decrease this modest will not have an outsized impact on what rail rates will look like in the coming year. While this data set is not complete, it suggests one very clear thing: Moving freight by rail was more expensive in 2022, and the railroads made more money moving freight in 2022 than in 2018. They moved

less freight with fewer people at roughly the same speed. Sounds like a great business model. It’s almost as if the roughly 25% reduction in coal traffic over that period was actually better for the railroads. The ongoing cogitation around railroad industry growth obscures a fact hiding in plain sight: Railroad growth is the problem. Finding growth that supports the same margins and increased income levels seems to have put a ceiling on loadings. In 2023 there was a true 10% reduction in grain and a 5% reduction in forest products loadings. Gravitation to the nominal mean for those commodity classes still would not bring loadings back to 2018 levels. But such a bounce back would suggest more railroad income. Shippers and suppliers waiting for a volumetric related increase in loads and decreases in pricing should read the writing in the Federal Register and realize that pre-pandemic rail is, well, a thing of the past. Maybe being a soulless rake isn’t such a bad idea after all. Got questions? Set them free at dnahass@ railfin.com.

DAVID NAHASS President Railroad Financial Corp. railwayage.com

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MOTIVE CONGRATULATIONS

PEDRO SANTOS on being named one of Railway Age’s 2024 ‘Fast Trackers’ 25 Under 40

For nearly a decade, Pedro has been an integral figure in the rail industry, leveraging his extensive expertise and knowledge in gas technologies. His profound contributions have manifested in the creation of tangible opportunities, particularly in the development of tenders for compressed gases such as hydrogen and methane. As co- founder of CNGmotive and HGmotive, Pedro has played a pivotal role in establishing innovative solutions like the ChillFill system, aimed at significantly reducing tender filling times to levels comparable to diesel. His influence extends beyond technological advancements, as Pedro has actively contributed to the formulation of industry standards for compressed gases, collaborating closely with customers and regulators to ensure safety and compliance. Pedro’s commitment goes beyond his technical contributions; he is an avid supporter of his team, readily offering guidance and mentorship. It is with great pride that we extend our congratulations to Pedro Santos for being recognized as one of the 25 fast trackers, a testament to his outstanding leadership and impactful contributions to the industry.

HGMOTIVE.COM

779.333.7233

25 40 UNDER

25 Under 40

Shutterstock/ Kikujiarm

Railway Age is proud to recognize 25 ‘Fast Trackers’ Under 40 in 2024

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February 2024 // railwayage.com Railway Age 13

25 Under 40

stablished in 2016, our annual awards are presented to top North American railroaders under the age of 40 for making an impact in their respective fields or within their companies in the United States, Canada and Mexico. They represent freight and passenger railroads, as well as the supply and consultant/contractor and government communities. Candidates, who had to be under the age of 40 as of Jan. 1, 2024, were judged on criteria that included industry experience and education, leadership skills, industry contributions, and community service involvement. “The field was strong, which bodes well for the future,” said Michigan State Center for Railway & Education Director Nick Little, program judge. “This year, there was a noticeable reduction in IT people as these skills clearly become assimilated into the more traditional roles. Many nominees talked about internal and external cooperation and cross-functional leadership qualities. I continue to be amazed by the contributions these young people have made in their careers alongside maintaining quality of life. Ten of the 25 are female, which says a lot about the quality of women in rail today. The range of backgrounds and skills range from locomotive engineer to civil engineer and from project leader to operations manager, and everything in between.”

NICHOLAS (NICK) C. LITTLE

Director, Railway Education Michigan State University Center for Railway Research and Education While in high school in Britain, Nick Little started his career with clerical and operating internships at Plymouth on British Rail’s Western Region in the early 1970s. He won a scholarship program with the British Railways Board that gave him a supply management degree plus training in all aspects of BR’s organization. Little then spent 15 years with BR in many locations, including Derby and London. In 1995, Little came to Michigan State University, initially for one year on loan to work on a research program, but he stayed to follow his passion of helping to develop future generations of railway industry expert managers and leaders with deep business knowledge and experience. He took charge of MSU’s Railway Management Certificate Program at the Broad College of Business in 2013.

14 Railway Age // February 2024

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Shutterstock/ Monton Tiemrak

Broad College of Business, Lansing, Mich.

MICHAEL CLEVELAND

230058

Director of Advanced Energy Progress Rail

We keep you rolling. Interested in joining our team? Scan the code to visit our careers page.

25 Under 40 LINDSAY ANDERSON

Director Business Analytics & Resource Planning

Abagail Barman’s academic research at the University of Pennsylvania on alternative project delivery models has been instrumental in shaping Amtrak’s strategy under the Bipartisan Infrastructure Law.

Since starting her railroad career 11 years ago, Anderson has striven for a data-driven culture. She transformed the way operational decisions were made at Kansas City Southern and now at CPKC, which was formed in April 2023 through the merger of CP and KCS. She was responsible for construction and adoption of 50-plus dashboards that leaders use to make decisions based on trends. Through 2022 and 2023, Anderson led an initiative to create a machine learning environment and KCS’s first predictive model for train ETAs. They have been successfully running for six months and provide train ETAs to crew change locations and destinations with a median error of 4.7 hours, vs. the planned schedule with a median error of 7.4 hours. This data will be used to inform decision-making on calling crews’ line of road, predicting when recrews will be required and decreasing crew call to departure times. Anderson and her team are responsible for creating and maintaining all STB-required metrics to monitor the operational performance of CP-KCS network. She works with executive leadership to identify negative trends in the metrics to minimize risk.

BRYON ARITA

ABAGAIL BARMAN

The Greenbrier Companies

Amtrak

Vice President – Sales Arita joined BNSF in 2006 as an asset utilization analyst. He spent 15 years at the Class I, rising through the ranks to Manager, Asset Utilization— first for the Chemicals and Plastics Business Unit and later for the Automotive Business Unit. He moved on to become Manager Product Planning and Development for Intermodal in 2013 and Sales Manager, Full Truckload Intermodal in 2017, before taking on the role of Senior Marketing and Sales Manager for the Steel Business Unit. According to his nominator, among Arita’s accomplishments at BNSF was working with the automotive team, other railroads and TTX to develop new strategies to overcome network inefficiencies. In 2021, Arita joined The Greenbrier Companies, a freight railcar manufacturer that provides railcar management and maintenance, fleet management, and railcar leasing services. He is responsible for new railcar sales and leasing for the South Central region, works with the commercial team, and provides valuable insight to customers, his nominator said. Arita also strives to bring others into the transportation field through his roles as founding Board member of the Young Professionals in TransportationDallas-Fort Worth Chapter, as Secretary of the Transportation Club of Dallas-Fort Worth, and as a UT Dallas MBA Supply Chain mentor. Arita holds a bachelor’s degree in marketing and entrepreneurship from Baylor and an MBA from Texas Christian University. 16 Railway Age // February 2024

CPKC

Assistant Project Director Part of Amtrak’s Capital Delivery team, Barman is responsible for managing transportation facility capital improvements valued at more than $2 billion. She is overseeing redevelopment of the historic William H. Gray III 30th Street Station—from upgrading operational facilities, expanding passenger waiting areas, and providing new retail and dining options to offering a pedestrian-friendly plaza and an enlarged metropolitan lounge for Amtrak passengers. All these improvements will be made while maintaining uninterrupted rail operations, which Barman will manage through detailed work planning and crossdepartmental coordination. Since joining Amtrak nearly three years ago, she has established a project team and stakeholder management strategy to deliver this complex, high-profile capital program that is being delivered through a Public Private Partnership—the first of its kind for Amtrak. Furthermore, Barman’s academic research at the University of Pennsylvania on alternative project delivery models has been instrumental in shaping Amtrak’s strategy under the Bipartisan Infrastructure Law. Outside of work, Barman is dedicated to community service. She has worked to train and socialize small animals at the Upper Valley Humane Society and to maintain and build trails for the Upper Valley Trails Alliance; served as Chair of the Hartford Parks and Recreation Board; and helped organize and lead Young Professionals in Transportation events. railwayage.com

POWERING INNOVATION. LEADING CHANGE. THAT’S THE THOROUGHBRED WAY. Congratulations, Stephanie Roop for being recognized as one of Railway Age’s 2024 “Fast Trackers” 25 Under 40 As Assistant Vice President of Strategy and Planning at Norfolk Southern, Stephanie leads a team that manages our market planning and analysis, strategy development, and technology product ownership for Norfolk Southern’s Industrial Products and Coal (IPCO) marketing division. Through her leadership she has helped establish 22 strategic growth initiatives, creating impactful technological advancements and further enhancing the industry’s technological sophistication. We are proud to honor her for this recognition and thank her for the impact she has made to creating a railroad of the future.

25 Under 40 MICHAEL CLEVELAND

Director of Advanced Energy

“Michael Cleveland’s knowledge and deep experience with alternative fuels gives railroads a unique advantage as they tackle the challenges of decarbonization while maintaining existing operations.”

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Progress Rail, a Caterpillar Company

Cleveland leads strategic work around the world to implement sustainable locomotive solutions from Progress Rail, which sees an evolving market for its EMD® product line, including batteryelectric (EMD® Joule is testing in California, Brazil and Australia), hybrid and hydrogen propulsion, plus diesel-electrics fueled with bio and renewable diesel blends. He has more than a decade of rail industry experience, primarily spent leading alternative locomotive fuel projects. Cleveland has successfully implemented projects ranging from EPA engine certifications to battery-electric locomotive equipment. He got his start in 2010 as a mechanical management trainee at BNSF, where he also served as a natural gas locomotive tech expert, mechanical manager, and battery electrification program leader, before joining Progress Rail in 2021. While locomotive-focused, his passion for clean transportation and decarbonization has yielded projects that have advanced the industry’s understanding across equipment types. “Cleveland’s knowledge and deep experience with alternative fuels gives railroads a unique advantage as they tackle the challenges of decarbonization while maintaining existing operations,” his nominator said.

railwayage.com

Congratulations from the entire CN team! 2024 Railway Age Fast Trackers 25 under 40

honoree

honorable mention

Sarah Hagel

Corey Caville

Senior Manager Service Design

Director of Marketing, Petroleum & Chemicals

25 Under 40 LUCAS CONRAD

Senior Manager of Rail Safety Training Watco

Lucas Conrad leads the Watco team that develops training and delivers content to prepare the next generation of railroaders In 2023, he or the instructors he leads trained 352 engineers and conductors.

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Conrad leads the team that develops training and delivers content to prepare the next generation of railroaders. He joined Watco as a Freight Conductor, and progressed to Locomotive Engineer and Trainmaster, spending two years supervising and mentoring operations employees; supporting rail customers; and managing conductor and locomotive engineer certifications on one of the company’s largest railroads. In 2013, he helped start operations and train employees for Watco in Australia. Conrad later became an instructor on Watco’s Safety and Training team. In 2020, he assumed his current role at Watco’s Safe Performance Center, which trains upwards of 900 students per year. In 2023, 352 locomotive engineers and conductors were trained directly by Conrad or the instructors he leads. He has guided implementation of computerbased training, locomotive simulation training and testing, and remote electronic learning, resulting in improvements in student scores, longterm knowledge retention, and ultimately career development. He also spearheaded the SPC portion of Watco’s initiative to move from paper rulebooks, timetables, and other publications, to an electronic format.

railwayage.com

25 Under 40 MONICA CORIA

Senior Manager, Railroad & Real Estate Services Southern California Regional Rail Authority/Metrolink

Coria is responsible for advising Metrolink’s CEO and Chief Strategy Officer on freight and tenant railroad relations and negotiations, which are critical to Metrolink’s network development and operations given that nearly 93% of its 545 route-mile network involves shared-use territory featuring operations by BNSF, Union Pacific and Amtrak in addition to commuter trains. She has more than 12 years’ experience managing railroad right-of-way assets, projects, and real property and shared use agreements for North County Transit District, San Diego Metropolitan Transit System, and Metrolink. She is currently researching shared-use agreement opportunities to increase Metrolink’s service footprint and provide efficient regional service for the 2028 Olympics in Los Angeles and beyond. Just six months after joining Metrolink, Coria was able to finalize critical negotiations that had been pending for more than two years. She has broken down internal silos, improved communication with rail partners, and successfully implemented last-minute service requests. In her free time, she mentors underprivileged high school students.

MARCELLOUS GRIGSBY

Prevention and Mitigation Specialist Washington Metropolitan Area Transit Authority (Metro)

Grigsby’s eight-year tenure at Metro has been marked by datadriven safety risk mitigation, performance enhancement, and leading in-depth investigations across multiple transit modes. His creation of the “Safety Re-inspection Process Work Instruction” has streamlined safety processes for better asset management and improved safety, and as Mission Assurance Coordinator for the Metro Integrated Communications & Command, he significantly improved incident data analysis and communication efficiency. Grigsby served as Project Manager for the Metro Master Location Repository project, which successfully centralized verified addresses for all Metrorail stations—crucial for emergency response. With an MBA in public administration and MS in criminal justice, Grigsby is a Pro-board Certified Volunteer Firefighter and EMT and NFPA 1031 Certified Fire Inspector, and completed USDOT’s Public Transportation Safety Certification Training Program for Bus & Rail. He also earned the Metro Rising Champion of Safety Award in 2019 and was member of APTA’s 2023 Emerging Leaders Program.

BNSF proudly congratulates

TIM WORRELL for being chosen as one of Railway Age’s Top 25 Under 40.

BNSF.com/Careers

railwayage.com

February 2024 // Railway Age 21

25 Under 40 SARAH HAGEL

“The strategic integration of digital technology in railway operations is pivotal for the industry’s growth,” Metro’s Marcellous Grigsby says. “It addresses key areas of operational efficiency, safety, customer experience, and data-driven decision making essential for increasing revenue and volume.”

Senior Manager Service Design in Network Operations CN

Over the past year, CN’s Service Design team has undergone a significant personnel transition, including a new Director. Hagel was elevated to Senior Manager, leading a team of six and mentoring another three temporary employees. She took a proactive role overseeing the development and maintenance of an optimized service plan. This involved extensive network-wide travel and conducting service reviews at key terminals. An accomplishment during winter 2022/23 was the successful implementation of a manifest package in the Edmonton to Winnipeg corridor. Also, in Intermodal Service Design reviews, Hagel adjusted plans to achieve a more balanced arrival and departure through Edmonton, leading to a more efficient inbound plan, with a 4% improvement in network train speed designed time between Edmonton and Winnipeg and a 5% improvement between Edmonton and Vancouver. Additionally, in an August 2023 analysis of the Scotford Service Plan, it was found that Hagel’s strategic decisions resulted in an 8% faster cycle for railcars to Rupert and that outsourcing the first-mile work contributed to a 27% reduction in online car days.

Congratulations! We want to congratulate Jonathan Wnek, Project Manager, on being a Railway Age “2024 Fast Tracker” honoree. Jonathan manages major rail projects and participates in multiple industry organizations. He also volunteers his time and talent encouraging young engineers to consider a career in the rail industry. Thanks for all you do, Jonathan! RAILPROS.com/career/

22 Railway Age // February 2024

railwayage.com

25 Under 40 ADAM L. HARRIS

JENNY KANE

R.J. Corman Railroad Company

Metra

Director of Locomotive Operations & Maintenance

Harris has a proven track record of improving the reliability of R.J. Corman’s locomotive fleet and is considered the “go-to” manager for all things electrical. He joined R.J. Corman in 2016 as a Locomotive Electrician Supervisor, independently troubleshooting and repairing locomotives. His expertise and proficiency earned him promotions to Mechanical Superintendent, Central Region in 2021, managing a team of about 20 employees, and to his current role last October. Harris has been a key player in redesigning the R.J. Corman locomotive fleet based on need and best fit for operation; this has meant that in the past 15 months, the company has secured 27 more units to optimize operations. His latest project, a comprehensive data collection initiative for all R.J. Corman locomotives, has showcased his organizational skills. Harris is also a mentor and advisor; at least three young managers have been elevated to positions of greater responsibility and are flourishing under his leadership. Outside of work, this certified firefighter has served the West Knox Fire Department in Corbin, Ky., for more than 16 years.

Director, Rail Contract Management & Special Projects Kane is managing the transfer of commuter rail services from Union Pacific to Metra commuter railroad in Chicago; this includes a 30% increase in Metra’s headcount and operational responsibility for three additional rail lines in a transaction worth $200 million annually. What sets her apart is her willingness to “meet people where they are” regardless of job responsibility. She is completing a management and labor program overhaul, and has support from all sides, largely because of her willingness to listen. With more than a decade of commuter rail and transit experience, Kane authored Metra’s first-ever FRA-approved Part 270 System Safety Program Plan; served on the APTA Working Group that drafted a Recommend Practice document for Safety and Security Certification; and managed the safety and security oversight function of five rail system new starts during construction, testing, and pre-revenue operations (Honolulu rail transit, KC Streetcar, DC Streetcar, St. Louis Loop Trolley, and Detroit Streetcar). She is part of APTA’s Leadership 2024 class and was selected for Metra’s My Metra Honors program for Improving Efficiency.

Nicely done, Grace. Congratulations to General Director of Mechanical Engineering & Quality Grace Olsen for being named one of Railway Age’s 2024 “25 Under 40.”

railwayage.com

February 2024 // Railway Age 23

25 Under 40 MATTHEW MCLAUGHLIN

Vice President of Business Development – Rail Cathcart Rail

Since joining Cathcart Rail in 2022, Matthew McLaughlin has grown BIP by 60% (revenue); developed active UP/BNSF interchanges and brought in two new customers for CNRR; and developed a transloading business at Cathcart’s Amarillo shop.

24 Railway Age // February 2024

McLaughlin provides commercial support for Cathcart’s Belpre Parkersburg Industrial (BIP) Railroad (an Honorable Mention in Railway Age’s 2021 Short Line and Regional of the Year program); Cornhusker Railroad (CNRR); Bucyrus Industrial Railroad; seven contract switching locations; transload operations; and railcar storage. He has secured $5 million in state funding and another $15 million from the FRA’s CRISI Program in 2023. Since joining Cathcart in 2022, McLaughlin has grown BIP by 60% (revenue); developed active Union Pacific/BNSF interchanges and brought in two new customers for CNRR; and developed a transloading business at Cathcart’s shop in Amarillo, Tex. He began his railroad career at CSX in 2008 as an Operations management trainee, and in his 13 years there, took on a variety of positions, including Terminal Trainmaster, Manager Total Service Integration, Manager Strategic Planning, and Manager Short Line Development. He rounded out his service as Senior Manager Regional Sales, responsible for a portfolio of $104 million in annual revenue that represented more than 250 accounts in the Southeastern U.S.

railwayage.com

25 Under 40 GREG MITCHELL

GRACE OLSEN

Assistant Chief Engineer – Engineering Services

General Director Mechanical Engineering & Quality – Mechanical,

Iowa Interstate Railroad

Over the past eight years, Mitchell has developed the bridge management program for Class II Iowa Interstate—from small scale repairs to successfully completing 26 full renewals and 39 major repairs. He leads all aspects of the program, beginning with inspection and continuing through need, design, permit, bid, contract and completion. Mitchell was instrumental in the design, construction and administration of the William J. “Bill” Duggan bridge near Booneville, Iowa, which was funded in part by a FRA CRISI grant and completed in record-setting time and under budget. He also managed bridge projects under another CRISI grant, which covered installation of 21 miles of continuous welded rail between Atlantic and Hancock, Iowa. These projects not only improved Iowa Interstate’s infrastructure, but also increased safety for customers, local communities, and the railroad. Additionally, Mitchell was a key player in bridge-washout recovery efforts in summer 2018. Two 60-foot-long spans washed out on a Sunday evening and the bridge was back in service by Thursday. Mitchell also gives back to his community as a volunteer ambulance driver.

Lindsay Anderson Director Business Analytics & Resource Planning

Union Pacific Railroad

Olsen got her start at UP 13 years ago in the Operations Management Training program. In her latest role, she is responsible for the reliability of the 8,000 locomotives and 270,000 cars traveling on the Class I’s network and the 60,000 cars it owns and leases. Her team provides support for locomotive and car facilities for material, technology and logistics and work on ESG initiatives. Olsen is a proponent of collaboration between field operations for car and locomotive. She served previously as General Director Locomotive and Quality, working on UP’s hybrid locomotive and battery-charging technology development and helping to drive locomotive manufacturers to test and approve higher biofuel blend limits. While Olsen was Senior Manager for Denver’s locomotive facility, UP decided to close the 200-person shop. She engaged internal partners to develop an action plan to support impacted employees, arranged résumé building and interview skills workshops, and worked with HR to attract area businesses to interview employees. In 2022, Olsen was recognized with the UP Chairman’s Environmental Award.

Cinthya Guillén Superintendent Sr. Control & Operation

Congratulations to Lindsay Anderson and Cinthya Guillén for being honoured by Railway Age as Fast Trackers. Connect to an exciting career at cpkcr.com

railwayage.com

February 2024 // Railway Age 25

25 Under 40 SEAN PENGELLY

Engineer – Projects & Development

In her first four months as General Manager in CPKC’s Operations Center at Monterrey, Cinthya Melissa Guillén Pinales has led a 10% sequential improvement in network velocity and a 14% sequential improvement in system dwell from Q3 to Q4.

Lake State Railway Company

Pengelly has become the leader in maintaining Lake State Railway Company’s (LSRC) relationships with the Michigan Department of Transportation (MDOT) Office of Rail, and the Federal Railroad Administration’s (FRA) CRISI Grant administrators. His has led business development efforts on LSRC for several customers and projects and his leadership has also developed relationships with customers new to rail. Pengelly has taken on key roles in relation to CRISI funded projects on LSRC. These roles have ranged from project development to material procurement, contractor bidding, and grant reporting. Many of these roles were not otherwise present at LSRC and Pengelly helped to create the tools and resources to carry the projects forward. Pengelly serves on a Transportation Research Board (TSB) committee, as well as a committee for the American Railway Engineering and Maintenance-of-Way Association (AREMA). He also supports field visits of the Michigan State University Railway Management Program to LSRC and coordinates and advises on Michigan Technological University senior design projects on LSRC.

Congratulations, Cecilia Schmierer Railway Age’s 2024 ‘Fast Trackers’ Under 40 Honoree Cecilia joined CSX with boundless enthusiasm and determination to make a difference. Today, eight years later, she is a valued contributor to our team, the company and the broader rail industry. Rising through the ranks, Cecilia now serves as Director of Risk Management, a testament to her exceptional collaborative skills, expertise in claims resolution and strong leadership capabilities. She embodies the spirit of ONE CSX with an unwavering commitment to continuous learning, industry involvement and improving our communities. Congratulations, Cecilia, on being named a 2024 Railway Age ‘Fast Tracker’ honoree.

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25 Under 40 CINTHYA MELISSA GUILLÉN PINALES

Superintendent Sr. Control & Operation CPKC

In her first four months as General Manager in CPKC’s Operations Center at Monterrey, in charge of the Mexican network operation, Pinales has led a 10% sequential improvement in network velocity and a 14% sequential improvement in system dwell from Q3 to Q4, and redefined the roles and responsibilities through organizational changes in the department. Pinales’s other contributions to the railroad include launching Bulletin 8, a safety initiative that helped employees and contractors understand and follow procedures and rules while driving productivity. As North Regional Superintendent for the Intermodal Terminal and Salinas Victoria in 2022, she led the onboarding of more than 100 employees while training supervisors. Pinales also implemented an OTS program at the terminal by formulating tests, incident reports and conducting analysis for employee performance. Pinales is eager to participate in programs that empower and motivate women in the industry, and her goal has always been to surpass expectations. She hopes to one day become CEO.

DR. ANISH POUDEL Principal Investigator II-NDE MxV Rail

Dr. Poudel has led the industry’s research efforts in the area of Non-Destructive Evaluation (NDE) through programs with the Association of American Railroads (AAR), FRA, Transport Canada and industry suppliers. He regularly leads multi-disciplinary teams to investigate the applicability of NDE technologies to various industry challenges, often serving as a conduit to bring together rail industry stakeholders and NDE experts. Collaborating with this robust network, Dr. Poudel has identified emerging technologies for tackling some of the most technically difficult problems facing the rail industry, such as couplant-free internal inspection of wheel rims and accurate depth measurement of rail surface cracking. His logical approach to inspection performance evaluation provides clear, objective results that allow proper assessment of the merits of various inspection methods. Dr. Poudel has held leadership roles in the American Society of Nondestructive Testing (ASNT) for more than a decade, culminating with his seat on the ASNT Board of Directors from 2019 to 2023.

Nicely done, Abby. Congratulations to General Manager of Alton & Southern Railway Abby Zach for being named one of Railway Age’s 2024 “25 Under 40.”

railwayage.com

February 2024 // Railway Age 27

25 Under 40 DAN RICE

Senior Director of Product Management

From 2020-2021, Stephanie Roop served as Co-Chair of Norfolk Southern’s Navigator Internship Program, where she helped roll out a new mentorship program for the railroad’s summer interns. She leads NS’s Marketing University team.

Wabtec Corporation

Rice has developed an expertise on the development of Electronically Controlled Pneumatic (ECP) brake systems. He is a contributing member of the team that qualified ECP brake systems in passenger rail in North America, including specifications for American Public Transportation Authority (APTA) and he is a member of the Train Braking Modernization Working Group for the FRA’s Railroad Safety Advisory Committee (RSAC). Rice is also a contributing member for the AAR Wireless Communications Committee Next Generation EOT/HOT (End of Train and Head of Train devices). He is currently a Senior Director for Product Management at Wabtec, which gives him the ability to touch everything involved in the company’s ECP, FastBrake, event/video recorders, EOT and HOT devices, BachSimpson, and Q-Tron product lines. In this role, Rice leads the strategic planning effort for responsible products, including creating the multi-generational product strategy aligned to deliver overall growth of the portfolio, and manages, coordinates and coaches product managers to handle all aspects of the product life cycle, among other responsibilities.

Railway Age 2024 Fast Tracker

Lucas Conrad

Senior Manager of Rail Safety Training Whether you’re at Watco’s Safe Performance Center teaching or in the community guiding Girls Scouts and youth basketball programs, you’re always helping others succeed.

Congratulations on this honor, Lucas.

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25 Under 40 MARTIN RITTER

STEPHANIE ROOP

President & CEO

Assistant Vice President Strategy & Planning

Stadler, US Inc.

Ritter is responsible for setting up a manufacturing location in 2017 for Stadler US, Inc., and growing the company to almost 500 employees. He helped manufacture the first true EMU Bilevel (Caltrain), the first H2 train for the U.S. (San Bernardino County Transportation Authority) and the first Battery Trainset together with Utah State University. Ritter is open minded to new technologies and ways of doing business, which he says, allows the company to run more efficiently, effectively and add value to the end customer instead of just internal stakeholders. He constantly encourages people to move beyond what they thought their own limits possible and in 2019, he set up a youth apprenticeship program that takes three years and graduates the students with an AAS degree. More than 10% of the production workforce is part of the education program. Ritter’s goal is to bring more jobs to the U.S. and transform the way America moves through innovations, top quality and on-time delivery. In 2020, Ritter was named one of Utah Business magazine’s Forty Under 40 winners.

Norfolk Southern

As Assistant Vice President of Strategy and Planning at Norfolk Southern (NS), Roop leads a team of 24 employees who manage market planning and analysis, strategy development, and technology product ownership for the company’s Industrial Products and Coal (IPCO) marketing division. In 2023, she led 22 strategic initiatives for the department. Throughout her career, Roop has served others by meaningfully contributing to their development and career advancement. As an active member of Women in NS, Roop participates in initiatives aimed at fostering diversity and inclusivity within the Class I. Her involvement in an Employee Resource Group (ERG), focused on cultivating an inclusive professional development environment, demonstrates her commitment to creating equitable opportunities for all professionals. From 2020-2021, Roop served as Co-Chair of NS’s Navigator Internship Program, where she helped roll out a new mentorship program for the railroad’s summer interns. Additionally, Roop is leading a team that created Marketing University, an internal training program for new hires coming into NS from outside the rail industry.

MATTHEW MCLAUGHLIN - VICE PRESIDENT BUSINESS DEVELOPMENT WE ARE SO PROUD OF MATT AND APPRECIATE HIS SUPPORT OF OUR CUSTOMERS CATHCART RAIL CONGRATULATES ALL OF THIS YEAR’S HONOREES

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February 2024 // Railway Age 29

25 Under 40 PEDRO TOMAS SANTOS

Chief Technology Officer

Pedro Tomas Santos developed, assisted in manufacturing, and sold the first AAR M-1004 compliant commercial alternative fuel tender for carriage of high-pressure hydrogen in the world, currently in operational testing on Class I Canadian Pacific Kansas City.

HGmotive (formerly CNGmotive)

Growing up under disadvantaged circumstances in the Dominican Republic, Santos started from adverse positions and managed to come out successful repeatedly in education, language, business and personal challenges. His contributions to the industry include more than 10 patents in rail innovations, including safety enhancements to enhance the crashworthiness of high-pressure tanks for the carriage of hydrogen and natural gas, among other highpressure fluids. Santos developed the first alternative fuel tender that complies with AAR’s M-1004 and the requirements for crashworthiness as evaluated by FRA. He also develolped and assisted in manufacturing, and sold, the first commercial alternative fuel tender for carriage of high-pressure hydrogen in the world, currently in operational testing on Canadian Pacific Kansas City. In 2012, Santos was named to the Forbes 30 Under 30 in Energy list. He was also featured as a Top 20 Latino Innovator by NBC in September 2012 during National Hispanic Heritage Month and received Congressional recogniztion in 2014 as an immigrant entrepreneur by the Commonwealth of Massachusetts.

Congratulations to Dan Rice from Wabtec’s Digital Intelligence team, and to all this year’s Top 25 Under 40 in the rail industry honorees.

Dan Rice

Senior Director of Product Management, Wabtec Corporation

30 Railway Age // February 2024

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25 Under 40 CECILIA SCHMIERER

JONATHAN SUNDE

CSX

Strato, Inc.

District Manager of Risk Management Since starting her railroad career in 2015 as a Manger of Field Investigations, Schmierer quickly established herself as someone who is highly motivated in her work and constantly looking for ways that she and her team can add value to CSX and the industry. She has been promoted to District Manager of Risk Management and has contributed to the industry as a member of the AAR General Claims Conference RRB subcommittee, as well as the RRB 10(o) outreach audit team. Schmierer regularly trains with the various Operations departments and shares this knowledge with her Risk Management peers and team. She is known for her ability to network internally, as well as externally, breaking down barriers in many situations. Schmierer also has a unique ability to handle many of her claims directly, which fairly resolves claims for employees and CSX. She is heavily involved in the community and volunteers with many different organizations, including Operation Lifesaver (OLI). Schmierer continues to expand her knowledge of the industry and is eager to support CSX’s culture of teamork, communication and respect for the contributions of all employees in all roles.

Chief Engineer and Site Director Sunde made an early splash in the industry by developing what is now Amsted Rail’s IBEX Truck-Mounted Brake System. This was a significant development because it was the lightest brake system ever made and allowed Amsted to expand into international markets. Since joining Strato in 2017, Sunde’s many accomplishments include being responsible for the development of the company’s SCU (Selective Cushioning Unit draft system), which is currently performing well on almost 2,500 active freight cars. Sunde also serves on the AAR Damage Prevention Committee and is a presenter for numerous conferences and events. He currently leads a team of more than 15 engineers and is well-known in the industry for his patience and perseverance in educating both his team and the industry leaders in general. Every summer, he also brings 10 interns on from various universities. His goal is to educate these aspiring engineers, as well as give them real-world experience. He also hopes that by exposing these interns to the railroad world, that they will one day join our industry.

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Contact Beverly Hess at READING BLUE MOUNTAIN AND NORTHERN RAILROAD

1.610.562.0227

February 2024 // Railway Age 31

25 Under 40 JONATHAN WNEK Project Manager RailPros

On July 26, 2023, Tim Worrell and his team accomplished more than one million cars humped injury-free at BNSF’s Galesburg Yard. He is a fifth-generation railroader, and serves as Chairperson of the railroad’s Emerging Leaders business resource group.

In his 13-plus years in the rail industry, Wnek has been a major contributor to the construction of high-quality rail infrastructure across the U.S. As a specialist in freight and passenger rail corridor design, he has developed track design plans for projects in numerous states and supported many project areas, including track rehabilitation and track alignment. Wnek has embraced challenging tasks, such as designing track and roadbed in highly constrained areas and revising formerly shelved plans. He has supported highspeed rail projects in multiple capacities, including as Senior Engineer of track geometry for high-speed intercity passenger rail, and helped realign a FRA Class II corridor to a FRA Class 6 corridor, allowing passenger train speeds up to 110 mph. Wnek serves as Chair for AREMA Committee 17 - High Speed Rail Systems and has contributed to multiple publications. He currently serves as Project Manager for the Amtrak LiDAR Extraction Project, which includes extracting all track, signal, structural, station, and electric traction features and assets along the 410-route mile NEC. He is a licensed Professional Engineer in Illinois, Texas, Pennsylvania and Michigan.

Metro congratulates Marcellous Grigsby for being chosen as one of Railway Age’s Top 25 Under 40.

Congratulations We wish to extend a warm congratulations to Jenny Kane for her continued achievements! Thank you for your dedication to Metra and its employees.

32 Railway Age // February 2024

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1/18/24 2:02 PM

25 Under 40 TIM WORRELL

ABBY ZACH

Assistant Superintendent

General Manager Alton & Southern

BNSF Railway

Worrell is a subject matter expert in many of BNSF’s continuous improvement initiatives, including leading an endeavor at Galesburg to optimize the railroad’s hump yards. He also played a pivotal role in the industry, leading innovation on the Logistics Park Chicago Intermodal Hub when BNSF shifted to an all-remote overhead crane operation in 2023. A fifth generation railroader, Worrell is active in mentorship, developing the next generation of leaders within BNSF. He also serves as Chairperson for the railroad’s Emerging Leaders business resource group. Worrell’s goal is to lead a division within BNSF as a General Manager. He truly believes that zero life altering injuries/fatalities is possible in the industry and does everything in his power to make that goal a reality for his team. Worrell recently hosted a customer symposium in Galesburg that was focused on service and safety. The format gave local customers the opportunity to learn more about Galesburg, voice concerns and/or solutions, and meet some of BNSF’s teammates while touring the yard. In 2021, he was named BNSF Employee of the Year. On July 26, 2023, Worrell and his team accomplished more than one million cars humped injury-free.

Union Pacific Railroad

Zach began her career as an intern with UP in 2013. Upon graduating from the College of St. Mary in Omaha, Neb., she transitioned to a full-time role as a Transportation Associate in the Operations Management Training Program (OMT). After completing the program, Zach quickly proved herself as a leader and has had consistent promotions and job growth. In February 2022, she was promoted to General Manager of UP’s subsidiary railroad, the Alton & Southern. In this role, Zach continues to thrive as a female leader in a traditionally maledominated field by breaking barriers and defying gender stereotypes. She is the definition of a trailblazer who inspires and encourages other women to consider careers in railroad operations, and actively engages with aspiring female professionals, sharing experiences and providing mentorship opportunities. Zach is a Board Member for the Leadership Council of Southwestern Illinois, and this past holiday season, she facilitated the promotion of Alton & Southern’s Toys for Tots drive. She plans to continue making significant contributions to the industry by driving innovation and implementing strategic initiatives.

STAY IN GEAR WITH RAIL GROUP NEWS

CONGRATULATIONS GREGORY MITCHELL for being honored by Railway Age as an Under 40 Fast Tracker

RAIL From Railway Age, RT&S and IRJ GROUP https://railwayage.com/newsletters NEWS

ROUND-UP of NEWS STORIES FROM:

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February 2024 // Railway Age 33

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25 Under 40 Honorable Mentions • Casey Blaze, Rail Equipment Manager, Greater Cleveland Regional Transit Authority (GCRTA) • April Casey, Locomotive Engineer, Alstom Transport/SunRail • Corey Caville, Marketing Director, Petroleum & Chemicals, CN • Ean Johnson, Vice President, Economic and Industrial Development, OmniTRAX • Matt Walker, Manager, Solutions Engineering, Railinc

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RAIL GROUP NEWS brings you a daily round-up of news stories from Railway Age, RT&S, and IRJ. This email newsletter offers North American and global news and analysis of the freight and passenger markets. From developments in rail technology, operations, and strategic planning to legislative issues and engineering news, we’ve got you covered.

RAIL From Railway Age, RT&S and IRJ GROUP https://railwayage.com/newsletters NEWS railwayage.com

February 2024 // Railway Age 35

ROUND-U

RAIL

FREIGHT RAIL POLICY OUTLOOK 2024

SWIRLING POLICY CURRENTS

reight railroads face swirling policy currents, too many to catalogue without even considering the upcoming 2024 elections. Will a 10-year “pilot” of 91,000-pound trucks operating on the nation’s highways, approved last year by a key Congressional committee, 36 Railway Age // February 2024

become law? How will courts treat a state mandate that railroads move completely to low or zero-emission locomotives? These and myriad other policy uncertainties loom this year and beyond. Yet among the policy threats and opportunities confronting freight railroads, three 2024 challenges stand out.

One year after a Norfolk Southern train derailed in East Palestine, Ohio on Feb. 3, 2023, spawning a toxic plume and a political storm, will Congress mandate more rail safety oversight? What does Surface Transportation Board (STB) Chairman Martin J. Oberman’s November 2023 announcement that he plans railwayage.com

FREIGHT RAIL POLICY OUTLOOK 2024 Looming questions for this year: Will Congress act on rail safety? Will STB oversight direction continue? Will substantial public investment in freight rail projects last?

Shutterstock/ Orhan Cam

BY DONALD M. ITZKOFF, CONTRIBUTING EDITOR

to leave the STB in 2024 mean for railroads and their customers? And will the hugely successful Consolidated Rail Infrastructure and Safey Improvements (CRISI) grant program administered by the Federal Railroad Administration (FRA) receive the same or higher funding levels when the current surface railwayage.com

transportation authorization expires in FY 2026? WILL CONGRESS ACT ON RAIL SAFETY? The February 2023 derailment of a 149-railcar Norfolk Southern train lit unprecedented national attention to a

transportation incident in which fortunately no one died. Dozens of NS cars including 11 hazardous materials cars derailed, five of which contained more than 115,000 gallons of vinyl chloride. Images of the derailment site and the subsequent controlled vent and burn of toxic chemicals, plus the vivid fears and February 2024 // Railway Age 37

concerns of East Palestine residents, fanned political fires. Environmental Protection Agency Administrator Michael Regan first visited East Palestine 13 days after the incident. The following week, former President and 2024 candidate Donald Trump arrived to blast the federal response to the derailment as a “betrayal.” One day later, Secretary of Transportation Pete Buttigieg inspected the East Palestine site and reviewed the disaster response. East Palestine upended past Congressional debate on rail safety. Two United States senators wrote to Secretary Buttigieg, emphasizing their “concerns with PSR” (Precision Scheduled Railroading). In assessing potential contributors to the East Palestine incident, these senators asserted that “it is not unreasonable to ask whether a crew of two rail workers, plus one trainee, is able to effectively monitor 150 cars”—a not-unexpected query from elected representatives, except that Republican colleagues of the letter authors, Senators J.D. Vance (R-Ohio) and Marco Rubio (R-Fla.), have more commonly voiced apprehension about the scope and cost of government regulation. Congress held multiple hearings addressing the East Palestine incident and disaster response. Last May, the Senate Commerce Committee approved the Railway Safety Act (S.576) by a vote of 16-11 (including two Republicans in favor). The legislation prescribes a long list of safety mandates, including new requirements on crew size, train brakes, railcar inspection, risk-based defect detection systems, a high-hazard train framework, increased fines and penalties, and more. S.576 gained 58 supporters, two short of the 60 votes typically needed to advance legislation in the Senate. In the House, Members introduced H.R.1674 as a companion measure to S.576 and other rail safety bills. Transportation and Infrastructure Committee (T&I) Chair Rep. Sam Graves (R-Mo.) and the T&I Rail Subommittee Chair Rep. Troy Nehls (R-Tex.) said, however, that they wanted the National Transportation Safety Board (NTSB) investigation into East Palestine finished before considering legislative action. Offering another perspective 300 38 Railway Age // February 2024

days after the derailment in December 2023, Greg Regan, President of the AFL-CIO Transportation Trades Department, wrote House Speaker Mike Johnson (R-La.) and T&I Chair Graves to declare, “It is outrageous that the House of Representatives has not taken a single step to address rail safety since the East Palestine derailment.” Speaking before the U.S. Conference of Mayors on Jan. 19, 2024, Transportation Secretary Buttigieg called for Congressional passage of S.576 and said, “Let’s not allow America to get to that oneyear mark and not have that safety act become law.”

“I still have much work to do and many initiatives to complete.” – Surface Transportation Board Chair Martin Oberman The NTSB’s report on East Palestine, now expected mid-2024, will recharge Congressional debate on rail safety. The current polarized dynamic in Washington makes it reasonable to question whether in an election year Congress can agree on more rail safety oversight. The post-2008 Chatsworth and 2013 LacMégantic experiences instruct, however, that another major rail incident in 2024 could well trigger Congressional passage of new rail safety laws. WILL STB OVERSIGHT DIRECTION CONTINUE? On Nov. 16, 2023, STB Chair Martin J. Oberman announced that he will not seek re-appointment to a second term and

would leave the agency in 2024. Railway Age Contributing Editor Frank Wilner has explained many of the surrounding issues: Upon the chair’s departure the vice chair becomes the acting chair; factors President Biden may assess in nominating a permanent STB chair; whether Republican Member Patrick J. Fuchs will be renominated for a second term; the f luidity in an election year of Senate consideration of any STB nominee(s); and that of course, a change of party control of the Presidency enables nomination of a new Republican chair. More than any leader since the STB’s formation in 1995, Oberman has emphasized that, in his words, railroads are “not just any industry, but an industry which has been imbued with a public interest mandate—the common carrier obligation—since it came into existence two hundred years ago …” In the same speech in which he announced his intention not to seek re-nomination to a second term, Oberman cited the Supreme Court’s explanation in 1897 of the common carrier doctrine: “It must also be remembered that railways are public corporations organized for public purposes, granted valuable franchises and privileges ... and that they all primarily owe duties to the public of a higher nature even than that of earning large dividends for their shareholders.” – United States v. Trans-Missouri Freight Ass’n, 166 U.S. 290, 332–33, 17 S. Ct. 540, 555–56, 41 L. Ed. 1007 (1897). Under Oberman’s chairmanship the STB investigated “urgent issues” in freight service including the impact of unprecedented rail service embargoes. This oversight resulted in STB mandates for railroad reports on labor and equipment shortages, filing of service recovery plans and other requirements. The STB has addressed specific shipper complaints of inadequate service, notably in Navajo Transitional Energy Company, LLC—Ex Parte Petition for Emergency Service Order, Docket No. NOR 42178. By a 3-2 vote on June 23, 2023, the STB issued a preliminary injunction requiring BNSF to transport a certain level of NTEC coal traffic. In a statement accompanying the STB’s decision, Chairman Oberman said, “The common carrier obligation railwayage.com

Surface Transportation Board

FREIGHT RAIL POLICY OUTLOOK 2024

FREIGHT RAIL POLICY OUTLOOK 2024 is a core tenet of the Board’s regulation of the freight railroad industry and is a pillar of the railroads’ responsibility to our country’s economy … Today’s decision ref lects the majority’s finding that the common carrier obligation requires a railroad to provide service on a customer’s request that is within the railroad’s capacity to provide.” STB Members Fuchs and Michelle A. Schultz dissented in separate expressions. On Dec. 13, 2023, with the parties having reached a settlement in the NTEC matter, the STB dismissed the proceeding and lifted, but did not vacate, the previously ordered injunction. Members Fuchs and Schultz dissented from the portion of the dismissal decision not vacating the injunction. Fuchs noted the precedent of this case and the “implications of the Board’s finding related to the common carrier obligation, and … that the Board ought to value f lexibility, resiliency and service-related outcomes and effects so that it avoids harming broad groups of shippers, penalizing crucial rail capacity, and imposing unnecessary costs on the network.” Schultz also disagreed with the portion of the majority decision that denied NTEC’s unopposed motion to vacate the STB’s June 23, 2023 injunction, which in her view did not provide “useful guidance in defining or assessing a carrier’s common carrier obligation under 49 U.S.C. § 11101; nor did it adequately explain how BNSF violated its common carrier obligation.” In another shipper complaint case, Sanimax v. Union Pacific Railroad, in which Sanimax seeks damages for alleged UP service reductions and disruptions, on Dec. 15, 2023 the STB granted a request to extend the procedural schedule to enable the parties “to conduct negotiations that could potentially resolve the dispute.” With Docket No. EP 711 (Sub-No.2) issued Sept. 7, 2023, the STB continued to scrutinize rail service. In EP 711, Oberman secured the unanimous endorsement of all four of his STB member colleagues to propose “a new set of regulations that would provide for the prescription of reciprocal switching agreements to address inadequate rail service, as determined using objective standards based railwayage.com

on a carriers’s original estimated time of arrival, transit time, and first-mile and last-mile service.” Comments have closed, with large railroads stating that EP 711 goes too far with unwieldy processes, and shippers complaining that the proposed rules don’t go far enough. Chairman Oberman’s pledge to serve “several months” into 2024 because “I still have much work to do and many initiatives to complete” suggests his desire to see EP 711 adopted. The question for railroads, given the easing of supply chain pressures and the renewed commitment of Class I carriers to enhance the experience of their customers, may be this: Does impending new leadership of the STB mean, to paraphrase Winston Churchill, the end of the beginning, or the beginning of the end, of elevated regulatory attention to freight rail service? WILL SUBSTANTIAL PUBLIC INVESTMENT IN FREIGHT RAIL PROJECTS LAST? In the Fall of 2023 FRA awarded $720 million for short line rail investments (out of $1.4 billion in FY 2022 CRISI funding available) to 47 projects in 36 states. For 2024, FRA has said it will combine FY 2023 and FY 2024 CRISI appropriations into a single notice of funding opportunity (NOFO), with at least $2.3 billion expected to be available. Marc Williams, Executive Director of the Texas Department of Transportation and Chair of the American Association of State Highway and Transportation Officials’ Council on Rail Transportation, told Railway Age: “State DOTs are doing their part to make sure the historic investment for rail included in the Infrastructure Investment and Jobs Act (IIJA) is being spent to benefit people and communities across the country. Rail investment is a real catalyst for economic growth and opportunity as it serves to improve safety, facilitate freight f low and enhance personal mobility. State DOTs will continue to be effective stewards of these dollars, which will result in projects that improve quality of life for users in communities small and large for many years to come.” This support of states and other stakeholders is vital, because the IIJA expires at

the end of FY 2026. Following the FRA’s upcoming 2024 CRISI NOFO, only two more fiscal years of guaranteed appropriations for CRISI at $1 billion per year above the pre-IIJA baseline remain. Williams offers a positive vision for railroads to cement this CRISI investment cornerstone so valuable to short lines. But will previously awarded and pending CRISI funds be spent wisely enough, with sufficient recognition of all the public benefits, to sustain a bright future for CRISI? WHAT’S NEXT? In his most recent policy infographic widely read in Washington, D.C., respected political strategist and advocate Bruce Mehlman advised to buckle up and “Expect Plot Twists & Curve Balls” in 2024. The accelerating array of policy challenges and opportunities for freight railroads, combined with the unknowns of a Presidential election year, spur anxiety. One way to deal with such unpredictability, suggests Maggie Jackson, author of “Uncertain: The Wisdom and Wonder of Being Unsure,” is to “rethink our outdated notions of not knowing as weakness, and instead discover this mindset as a strength.” For the rail sector, accepting uncertainty with a renewed commitment to doing the right things well—including keeping trains on the rails and apart while exceeding customer expectations—will line tracks favorably for policy success. Don Itzkoff is Chief Policy Officer for Patriot Rail Company.

February 2024 // Railway Age 39

TECH FOCUS – MECHANICAL

FORCE CONTROL Nearly 140 years after the first patent was issued, draft gears and cushioning devices remain as fundamental to railroading as steel wheels rolling on steel rails. ew other freight railcar components need to withstand as much in-train force as draft gears and cushioning devices. Safety and ride quality rely on these components performing seamlessly with wheelsets, braking systems, roller bearings, side bearings, truck assemblies, and, most important, couplers. The design and engineering that goes into these heavyduty devices is complex and continues to evolve and improve. Principal suppliers of these components are Amsted Rail, A. Stucki, Miner, Strato and Wabtec. First, some history: A U.S. patent was

40 Railway Age // February 2024

issued to William H. Miner, founder of the company that is today’s Miner Enterprises, on Oct. 20, 1891, for a “true tandem spring draft gear.” This set the stage for a 30-year product run. W.H. Miner spring draft gears “filled a special need during the railroads’ transition from wooden frames and the standardization of draft gear pockets, automatic couplers and braking systems from approximately 1885 to 1919,” the company notes. “The key patents involved in this evolutionary period of our draft gear business is covered in “The Amazing Story of the Miner Spring Draft Rigging,” downloadable at https://www.minerent.com/About_Us.php.

“The object of my invention,” William H. Miner said, “is to provide a draft-rigging of a simple, strong, and efficient construction, embodying great buffing and pulling resistance, and providing for a gradual or cushioned absorption and transmission of strains and shocks to the body of the car. To this end, my invention consists of a drawbar having springs arranged tandem between the draw-timbers and through which the strains and shocks, either pulling or buffing, are gradually absorbed and transmitted to the draft-timbers. In this matter of conserving railway revenue it is essential that the draft gear should be a scientific railwayage.com

MxV Rail

BY WILLIAM C. VANTUONO, EDITOR-IN-CHIEF

TECH FOCUS – MECHANICAL

mechanical appliance with the same degree of care represented in its design, material and construction as should be embodied in a high duty machine tool.” Back in the day, when the cover of Railway Age (then a weekly and sometimes a daily during industry trade shows) was available to advertisers, Miner’s products were often showcased. The June 26, 1928, cover featuring the company’s A-78-XB draft gear (p. 42) is just one example. Fast-forward 95 years to the Association of American Railroads End-of-Car Energy Management Task Force, a committee consisting of representatives from railroads and suppliers and including TTX Company, and MxV Rail researchers. At the June 26-28, 2023, AAR Research Review in Pueblo, Colo., MxV Rail Principal Investigator II-VTI Adam Klopp presented a summary of the Task Force’s ongoing draft systems research. The End-of-Car Energy Management Task Force’s objectives, Klopp noted, “are assisting the industry in reducing service disruptions from component failures, broken coupler knuckles and train separations. Improved draft system performance railwayage.com

provides better impact protection and control of in-train forces, limiting train slack action. Draft systems protect railcars and lading from coupler forces in a train by limiting relative motion, absorbing impact energy.” The most common draft systems are friction draft gears (DG), which have a short-displacement stroke and provide “good control of train slack action,” and end-of-car cushioning (EOCC) units, which have long-displacement stroke and provide “good energy absorption in yard impacts.” Draft system evaluations “historically have been done in North America through car-to-car impact testing or drop hammer tests from the AAR Manual of Standards and Recommended Practices,” Klopp pointed out. “They’re good for evaluating impact protection and energy absorption, but they aren’t good indicators of in-train performance and slack control.” MxV Rail and the End-of-Car Energy Management Task Force are currently developing a combined testing and simulation methodology to evaluate impact and in-train performance. Draft system impact testing has been conducted for six systems: 1. Friction draft gear. 2. Dual draft gear. 3. Elastomeric friction clutch draft gear. 4. Non-hydraulic long-travel unit. 5. Standard 15-inch EOCC unit. 6. 13/2 active-draft EOCC unit (13 inches of buff, 2 inches of draft; other combinations are available, but the Task Force focused it efforts on the 13/2 configuration). The impact tests were conducted “to evaluate impact protection provided by these systems, and the dynamic forces,” Klopp noted. “We also wanted to characterize these systems for use in modeling.” “Drift Simulations” were conducted with a block of 286,000-pound GRL (gross rail load) cars equipped with a single draft system type, and no locomotives or brakes. The block of cars was allowed to “drift” through grade transitions intended to create slack action and evaluate in-train performance. “The results show that EOCC units generally provided less train action control,” Klopp reported. “Higher speed differences and forces develop. Friction draft gears and alternative units generally provided better train action control, with limited relative motion and forces. Impact tests showed EOCC units

provided the most impact protection, while standard DGs provided the least. Standard DGs provided the most slack control, while EOCC units provided the least. Alternative draft systems provided better impact performance than DGs but with a smaller displacement than EOCC units.” MxV Rail and the Task Force are now developing a draft system evaluation Recommended Practice, supplementing current impact tests with train action modeling, and updating draft system evaluations “for the modern railroad environment.” One long-time (2008-2023) End-of-Car Energy Management Task Force member is Amsted Rail Vice President Engineering Jay Monaco, who gave this writer his first “lesson” in active-draft EOCCs some 30 years ago. It was time for a “low-impact refresher course” (pun intended), and he spent some time late last month bringing me up to speed: RAILWAY AGE: I find it interesting that the research is ongoing after so many years. There are continuous improvements to be made? MONACO: Initially, the idea of active draft came about a long time ago. There were hydraulic cushioning devices that had a mechanical spring coil, spring positioning mechanisms to give them some attenuation in the draft direction. Some cost reductions and simplifications occurred at the railroads, so we ended up with cushioning devices that did a great job for yard impacts, but went through complete slack and no shock absorbing at all in the draft direction, metal to metal. It was especially bad in the older days before we created the hydraulic lock preload devices that prevent the unit from running in very easily against the force that was generated by internal gas pressure. It was on the order of 6,000-8,000 pounds, which is inconsequential in a train, and then it would come all back out as slack. So these blocks of units that were cushionequipped, like autoracks, really were feeling the pain. The advent of preload, and particularly hydraulic lock preload, really helped a lot. That was proven in testing autorack unit trains, but it took care of only one part of the problem. We still had the issue of not really having any cushioning in draft. We tried installing a plain orifice—not a valve— staged an inch and a half or so inward so that it could run in easily up to that point. February 2024 // Railway Age 41

TECH FOCUS – MECHANICAL Today, there are pockets of adoption, but it hasn’t gone wholesale. RAILWAY AGE: What if active draft became the standard? It seems to me that, all things considered, it would be cost-effective. If there’s a good case to be made that the industry abolish prior specifications and go to active draft only, make it the standard. Would there be any issues in terms of retrofitting draft gear pockets in existing cars? MONACO: Not really. We’ve been able to get creative with the guts of the hydraulic unit, and I’m sure other suppliers have as well. A 10-inch travel unit in its pocket can be 9/1. A 15-inch travel unit can be a 14/1 or a even a 13/2. In Adam Klopp’s test data, you can see that 13/2 isn’t really that much worse than the 15-inch when it comes to impact performance. So you’re not giving up very much. We’ve accomplished that by putting elastomeric pads inside the cushioning unit on the front side of the piston and the inside of the front head. A couple of donuts in there to do all the work. Looking again at the Task Force research results, there is a dramatic difference between hydraulic cushioning devices and draft gears. That’s all pretty well understood. Again, the cushioning unit values are really very close to what’s happening with the draft gears, if you look at the magnitude of the values. What you’re sacrificing in train action forces is minimal compared to the damage that can occur in a higher-speed impact in coupling events.

In the event it would receive a draft shock in the train, it would have some degree of cushioning in that short amount of travel. But that didn’t go anywhere, either. There are expired supplier patents on this internal stuff. We sold a few, but the railroads weren’t sure if it was going to cost more, and there was constant churning over the specifications, M921E for autoracks and M921F for standard railcars. RAILWAY AGE: You left the industry for a few years and returned in 2005. Had any progress been made? MONACO: It finally turned into a research initiative, but started really slow. 42 Railway Age // February 2024

The railroads said, “Well, we’ll try one.” Our committee said, “No, you can’t just put one in there and expect that car to get slammed and say it’s performing better.” You have to equip the entire train. You need to avoid that buildup of velocities when you don’t have any attenuation in the draft direction, especially if you’re going down a grade and you have slack run-in, a buildup, and then you start going up a grade and those connections come out and you have high draft shocks that result in fatigue damage to the coupling system and even broken knuckles and train separations. In any case, testing occurred with only one unit. And sure enough, it didn’t do a whole lot. It helped a little bit.

RAILWAY AGE: What has the advent of longer trains with PSR, these 10,000-foot and 15,000-foot trains, done? And what about dynamic braking, where the locomotives, not the air brakes on the cars, are providing much of the braking force? It has been suggested that dynamic braking, while it has its benefits, especially when applied with distributed power, doesn’t do much to mitigate in-train forces. It could actually make them worse. There will be higher incidents of in-train draft and buff events. MONACO: I tend to agree with that. Obviously, the in-train dynamic forces are going to be higher. One thing is certain: Railroaders are going to have differing opinions. Bottom line: As long the industry’s stakeholders work together, safe, productive and profitable railroading will be the result. railwayage.com

TTC OPERATED BY ENSCO

UP CLOSE AT THE

IMPACT WALL

TTC Operated by ENSCO

BY MATTHEW DICK, P.E., CHIEF OF STRATEGY & DEVELOPMENT; AND PRZEMYSLAW RAKOCZY, PH.D., SENIOR RAIL RESEARCH ENGINEER, ENSCO, INC.

hen visitors enter the Transportation Technology Center (TTC), they travel over a small overpass just prior to arriving at the entrance gate. Despite thousands of people having made this journey over the years, few had the chance to stand close to one of the TTC’s testing capabilities, located near the entry into the TTC. This changed during the first annual TTC railwayage.com

Conference and Tour Nov. 7-8, 2023. Attendees were granted a unique opportunity to witness the TTC Impact Wall and Ram Car up close and learn about its applications and future use. VISIT TO THE IMPACT WALL TTC tour participants explored various testing sites, many of which had never been seen by the public before, shuttled on tour buses. At one of the sites, attendees exited the bus to see one of the

largest test structures on the property, a large vertical impact wall constructed of concrete and steel. Leading up to the wall is typical railway track. But parked on the track is a one-of-a-kind railcar previously unseen by many of the attendees. It’s a f lat car equipped with a heavy mass with a protruding steel structure. Known as the Ram Car, it is parked pointing directly at the Impact Wall like an arrow toward a target. Przemyslaw Rakoczy, a TTC employee February 2024 // Railway Age 43

TTC OPERATED BY ENSCO and rail vehicle impact subject-matter expert, greeted attendees to discuss the Impact Wall and Ram Car. Dr. Rakoczy explained that the Impact Wall, constructed in 1999, aimed to ensure railway crashworthiness safety for Federal Railroad Administrationled initiatives. Designed to withstand a three-million-pound impact at 65 inches above the top of the rail, the Impact Wall and Ram Car support highspeed instrumentation including strain gauges, displacement potentiometers, pressure gauges, accelerometers and high-speed cameras for impact tests. Dr. Rakoczy highlighted the common pairing of full-scale impact tests with Finite Element Analysis (FEA) simulations. FEA simulation packages such as LS-DYNA are commonly used to replicate impact test scenarios, but they need to be validated with physical test results from testing at the TTC. Once the FEA model is validated, it enables more simulations to be run to produce important insights while reducing the number of physical tests that need to be conducted. He discussed specific past applications and potential future uses for the Impact Wall and Ram Car. TANK CAR IMPACT TESTING Dr. Rakoczy delved into the history of the Impact Wall being employed for tank car puncture testing. Tank car crashworthiness, crucial for withstanding punctures from objects like derailed railcars’ couplers or broken rails, was replicated by the Ram Car in a controlled and repeatable manner. With the Ram Car guided by the track, the precise location of the impact and impact speed can be achieved. Testing has been done by impacting the side of the tank car shell and the tank car shell head (end). As an example, the TTC Impact Wall supported the testing required for the creation of the DOT-117 tank car specification, which focused on increasing tank car crashworthiness and puncture resistance for f lammable liquids such as crude oil. The DOT-117 specifications are defined in the Pipeline and Hazard Materials Safety Administration (PHMSA) Title 49, Code of Federal 44 Railway Age // February 2024

Regulations Part 179.200, General Specifications Applicable to Non-Pressure Tank Car Tanks (Class DOT–111, DOT–117). PASSENGER CAR TESTING The Impact Wall has played a crucial role in advancing crashworthiness for passenger vehicles. Notably, the first tests conducted with the Impact Wall focused on passenger car crashworthiness shortly after its construction. One significant contribution has been in aiding in the testing of Crash Energy Management (CEM). In scenarios where a passenger car collides with another train, the conventional impact energy absorption by the first car often leads to rapid deceleration and catastrophic structural collapse, causing serious injuries and fatalities. CEM addresses this by incorporating an intentional crush zone at the end of each vehicle, deforming in a controlled manner during impact. This strategic design allows for the “spreading” of impact energy absorption throughout the whole consist, resulting in smoother deceleration and reduced risks to passengers, minimizing damage throughout the vehicle. Through the testing conducted at the Impact Wall, FRA Title 49, Code of Federal Regulations Part 238.403, Crash Energy Management regulation, was able to be defined and is currently implemented.

FUEL TANK TESTING Beyond freight and passenger cars, the Impact Wall was utilized for testing vehicle components such as diesel fuel tanks. Standards defining fuel tank crashworthiness, including FRA Title 49, CFR Part 238.223, and the Association of American Railroads Manual of Standards and Recommended Practices, S-5506, were incorporated into Impact Wall testing scenarios. These real-life scenarios include a locomotive derailing and having the fuel tank strike the head of the rail of the track, a side impact from a semi-truck and a penetration from a broken rail. Some of these scenarios were replicated with the Impact Wall and variations of the Ram Cart, a smaller version of the Ram Car. FUTURE APPLICATIONS As the railway industry evolves, the Impact Wall continues to play a supporting role. In the August 2023 issue of Railway Age, the TTC Operated By ENSCO article detailed future needs related to alternative energy use for the reduction of greenhouse gases. Testing crashworthiness designs and specifications for alternative energy methods such as Hydrogen, Renewable Natural Gas (RNG), and Battery Energy Storage Systems (BESS) remains critical for meeting safety expectations.

railwayage.com

PEOPLE REMI G. LALONDE CN

HIGH PROFILE: CN last month appointed Remi G. Lalonde as Executive Vice President and Special Advisor to the CEO, effective immediately, in anticipation of his transition to the role of Chief Commercial Officer (CCO) later in the year. According to CN, the CCO is a critical executive role, overseeing the Class I railroad’s “strong, experienced, customer focused” Sales and Marketing team. As a former CEO, CFO and SVP at a prominent forest products company, Lalonde has led teams, executed strategy, managed regulatory matters, engaged with Indigenous communities and stakeholders, headed manufacturing operations, and worked with investors and suppliers. “His successful track record of cross-functional experience and first-hand knowledge of the importance of supply chains, as well as his focus on business growth and sustainability will help drive CN’s 2024-2026 growth agenda,” CN said. “I am very pleased that Remi is joining the CN team, preparing to lead our commercial team,” said CN President and CEO Tracy Robinson, Railway Age’s 2024 Railroader of the Year. “The role of CCO is of the utmost importance. The diversity of his experience, including as a railway customer and as a CEO, positions him well to lead the Sales and Marketing team. He will play an instrumental role in accelerating sustainable, profitable growth.’’ Lalonde will spend time embedded within CN’s operations to learn about scheduled railroading, servicing customers, and executing CN’s ‘Make the Plan, Run the Plan, Sell the Plan’ model. Once this “intensive familiarization” is completed, CN says Lalonde will transition into the role of Executive Vice President and CCO. Doug MacDonald, CN’s current Executive Vice President and Chief Marketing Officer, will remain in that role until the transition is completed later this year. Fluently bilingual in his native French and in English, and based in Montreal, Lalonde is the former President and CEO of a Quebec-based forest products company. After several years at a Wall Street Law firm, he joined the forest products company as Senior Securities Counsel. Over his tenure at the company, he served in corporate and customer focused roles, including as Senior Vice President and Chief Financial Officer and as General Manager for a critical manufacturing facility. Lalonde holds a Bachelor of Laws and a Bachelor of Environmental Engineering from the University of Ottawa.

fter six years leading the California High-Speed Rail Authority (CHSRA), Brian Kelly has submitted his letter of resignation, according to a Jan. 18 report from Nexstar Media’s KTLA 5 in Los Angeles. In the letter addressed to CHSRA Board Chair Tom Richards, Kelly wrote that “[m]y goal when I took this position in 2018 was to help stabilize the organization and improve performance such that policymakers would once again consider investing in the [high-speed rail] project,” according to KTLA 5. “While there is more work to do, this goal has largely been achieved.” Kelly came to the Authority as a transportation veteran, having served as the railwayage.com

first secretary of the California State Transportation Agency, which was established in 2013. He oversaw eight departments, boards and commissions; 38,000 employees; and an $18.1 billion budget. Prior to that, he spent nearly two decades at the center of major transportation policy decisions in the state of California by serving four successive Senate President pro Tempores. When Kelly was appointed to CHSRA in January 2018, he “indicated he only intended on holding the position for a few years,” KTLA 5 reported. “The job is tasking and Kelly described it [in his resignation letter] as the most challenging of his 30-year public service career. He also called it the most satisfying.” He did not

provide a departure date, “instead saying he was committed to helping the board with a smooth transition to new leadership,” according to the media outlet. In an interview with The Fresno Bee, Kelly said “that he plans to stay in the role, perhaps for several months or more, as the agency begins its search for a new chief executive.” Transportation and Logistics company J.B. Hunt has elected PATRICK J. OTTENSMEYER as the newest member of its Board of Directors, expanding the Board to 10 total seats. He is the third new board member since 2021, following Calpine Corporation CEO Thad Hill; he will serve on the Compensation Committee and Nominating and Governance Committee. With more than 17 years of rail industry experience, Ottensmeyer was previously President and CEO of Kansas City Southern (KCS), from 2015 to 2023. From 2008 to 2015, he was Executive Vice President of Sales and Marketing at KCS, and served as Executive Vice President and Chief Financial Officer at the railroad from 2006 to 2008. On April 14, 2023, KCS merged with Canadian Pacific (CP) to form CPKC, becoming the first single-line, transnational railway connecting Canada, the U.S. and Mexico. Ottensmeyer served as an advisor to CPKC President and CEO Keith Creel (formerly CP President and CEO) through 2023. Both are former Railway Age Railroaders of the Year, sharing the honor in 2022 and independently honored in 2020 (Ottensmeyer) and 2021 (Creel). Ottensmeyer served as the U.S. Chairman of the U.S. Chamber of Commerce’s U.S.-Mexico Economic Council (USMXECO) from 2019 to 2023. In this role, as leader of the U.S.-Mexico CEO Dialogue, he was instrumental in representing business interests during the formation of the United States-Mexico-Canada Agreement (USMCA) from 2017-2020. He currently serves on the Board of Directors for the U.S. Chamber of Commerce; for The Greenbrier Companies; and for Watco Companies. Additionally, Ottensmeyer is Co-Chair of the Brookings Institute USMCA Initiative and Chair of the Truman Library Institute. In 2023, Ottensmeyer received the North American Rail Shippers Association Edward R. Hamberger Lifetime Achievement Award, and in 2022 he was the recipient of Ingram’s Executive of the Year Award. February 2024 // Railway Age 45

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46 Railway Age // February 2024

railwayage.com

Ad Index COMPANY

PHONE #

URL/EMAIL ADDRESS

PAGE #

AMSTED RAIL GROUP

312-922-4516

kskibinski@amstedrail.com

AMTRAK

800-USA-RAIL

www.amtrak.com

BNSF

817-867-6250

media@bnsf.com

CATHCART RAIL

708.490.8938

vanessa.knapton@cathcart-rail.com

888-888-5909

CPKC

816-983-1327

Sheila.Dougherty@cpkcr.com

CSX CORPORATION

904-359-3200

csx.com

GREENBRIER COMPANIES THE

800-343-7188

gbrx.info@gbrx.com

HGMOTIVE

814-431-8050

gtrillanes@cngmotive.com

IOWA INTERSTATE RAILROAD

319-298-5402

bjallen@iaisrr.com

METRA SOCIAL MEDIA & GRAPHICS

312-322-4078

csantori@metrarr.com

NORFOLK SOUTHERN

PLASSER AMERICAN CORP

757-543-3526

plasseramerican@plausa.com

PROGRESS RAIL A CATERPILLAR CO

256-505-6402

info@progressrail.com

RAILPROS, INC

682-223-6897

www.railpros.com

READING AND NORTHERN RAILROAD

610-562-2100

bhess@readingnorthern.com

RAILWAY EDUCATIONAL BUREAU

402-346-4300

bbrundige@sb-reb.com

34,C3

RJ CORMAN

800-611-7245

www.rjcorman.com

STRATO INC

732-317-5406

korozco@stratoinc.com

UNION PACIFIC

402-544-3560

cbeyah@up.com

23,27

WABTEC CORPORATION

412-825-1000

www.WabtecCorp.com

WATCO COMPANIES

620-331-2230

tvanbecelaere@watco.com

WMATA

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.

railwayage.com

February 2024 // Railway Age 47

ASLRRA Perspective Supporting the Drive to Net Zero Emissions by 2050

hort line railroads are in business to provide shippers with reliable and competitive transportation service. Doing so requires constant attention to improving operating practices, upgrading infrastructure, and maintaining safety. While that is by necessity their focus, a growing number of short lines are also devoting serious time and resources to maximizing the environmental advantages inherent in rail transportation. Anacostia Rail Holdings (ARH) has commissioned and just released a new report examining the feasibility and benefits of operating short-haul intermodal services destined within 150 miles of the Ports of Los Angeles and Long Beach. On behalf of Pacific Harbor Line (PHL), which serves as the neutral switching operator for the two ports, ARH commissioned the study in September 2023 to examine how short-haul intermodal operations can address logistical and environmental issues commonly associated with containerized freight movement. As ARH President Peter Gilbertson said, “This concept has the potential to offer benefits to the ports and the surrounding community in terms of sustainability, unlocking capacity and reducing congestion—although implementing such a service also has challenges. We felt it was important to consider the parameters under which a transportation alternative like this might be viable.” The study, produced by two top firms with recognized expertise in intermodal rail operations—Oliver Wyman and Leachman & Associates—showed that a short-haul rail shuttle from the existing Los Angeles and Long Beach ports to an inland port could be cost competitive on a per container basis for shippers compared to direct truck drayage and could result in the elimination of 5,100 truck moves every weekday. That adds up to a significant reduction in CO2 emissions. This ARH initiative lays the foundation for additional feasibility studies by these California ports and national transportation policy-makers and may well jump start similar efforts by the dozens of ports

48 Railway Age // February 2024

served by short line railroads. On the other side of the continent, Georgia Central Railway and Heart of Georgia Railroad, both affiliated with Genesee & Wyoming (G&W), have filed with the Federal Railroad Administration a request to allow a pilot of a new zero-emission battery-electric rail container technology by Parallel Systems in South Georgia. G&W believes the development and adoption of this technology has the potential to capture short-haul container business now moving almost exclusively by truck, opening an entirely new market opportunity for many smaller short line railroads. The plan for the “Georgia Pilot” is structured to demonstrate the ability of this new technology to operate safely and concurrently with existing conventional rail freight services. It would not replace existing conventional freight services on short lines, but rather open new short-haul container markets now handled by trucks. If successful, the technology will create new financial stability for many short lines, while reducing roadway congestion, improving safety, and decreasing carbon emissions. ASLRRA, in partnership with Lake State Railway, Chicago South Shore & South Bend Railroad, and Michigan Technological University, is leading a project to evaluate short line locomotive emissions through field testing and controlled testing of non-traditional fuel technologies, including additives and injectors. Measuring the emissions and fuel economy benefits will enable and encourage short lines to adopt emissions reduction strategies. We believe these technologies could be applied to thousands of short line locomotives across the country and are a low-cost and immediately available method of reducing CO2 emissions while further emission reduction technologies are being developed. For some years now, ASLRRA’s Annual Conference and Exhibition has included the so-called “Green Zone” in our Exhibit Hall featuring rail industry companies that provide products and services that improve the environment and promote sustainability. This year

some 70 companies will host exhibits, the highest participation rate since the program began. Offerings will include recycled products, lubricants, batteries, and all manner of engine and equipment technologies that can help short lines contribute to cleaner air and a healthier environment. This year’s Conference will be held in Kansas City, March 24-26. As part of its Association activities, ASLRRA has joined and promoted a variety of federal government and private programs designed to engage individual companies in protecting the environment. We are an affiliate member of EPA’s SmartWay program, which offers tools short lines can use to communicate how shipping by rail can help customers meet their company’s environmental goals. In 2023, ASLRRA joined Operation Clean Sweep, a campaign by private industry to reduce plastic resin loss to the environment. Short lines are not the largest segment of the national railroad network, but we like to say that our importance is not our size but rather who and where we serve— rural and small-town America where we are often the shippers’ only connection to the national rail network. So it is with our environmental initiatives. Short lines are not the largest companies with the most financial resources available for research and development. But short lines across the country such as those described above are devoting serious time and effort to making their companies as responsive as possible to today’s environmental challenges. For more examples of short line railroad initiatives, big and small, improving their environmental footprint, go to https://www.aslrra.org/environmentalimpact/member-initiatives/.

CHUCK BAKER President ASLRRA

railwayage.com

We’re current, are you? FRA Regulations Mechanical Department Regulations

Now Include Part 22 s 4

A combined reprint of the Federal Regulations that apply specifically to the Mechanical Department. Spiral bound. Part Title 210 Railroad Noise Emission Compliance Regulations Updated 4-15-19. 215 Freight Car Safety Standards Updated 12-28-23. 216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment Updated 12-28-23. 217 Railroad Operating Rules Updated 12-28-23. 218 Railroad Operating Practices - Blue Flag Rule Updated 12-28-23. 221 Rear End Marking Device-passenger, commuter/freight trains Updated 12-28-23. 223 Safety Glazing Standards Updated 12-28-23. 224 Reflectorization of Rail Freight Rolling Stock Updated 12-28-23. 225 Railroad Accidents/Incidents Updated 12-28-23. 229 Locomotive Safety Standards Updated 12-28-23. 231 Safety Appliance Standards Updated 12-28-23. 232 Brake System Safety Standards Updated 12-28-23.

49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 227, 228, 229, 230, 231, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, and 272. This final rule provides the statutorily prescribed 2024 adjustment to civil penalty amounts that may be imposed for violations of certain DOT regulations. DATES: This rule was effective December 28, 2023.

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