Railway Age June 2021

JUNE 2021

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

ROLLING

OUT OF THE PANDEMIC The railcar market adjusts to evolving circumstances

SURE-FOOTED SORTING

Clearing Away Class Yard Bottlenecks

TECH FOCUS – M/W railwayage.com

Finding Faults Beneath the SurfaceAugust 2017 // Railway Age 1

Trust the most responsive team in rail to keep your business moving.

Your team from American Railcar Industries is now American Industrial Transport™. It’s a new name, but the same dedication to you.

AITX.com | Mechanical, Certification, Cleaning, Coating Full-service repair network across North America: Sarnia, ON | Brookhaven, MS | Bude, MS | Goodrich, TX | Longview, TX | North Kansas City, MO | Tennille, GA

©2021 All rights and ownership reserved by American Industrial Transport, Inc., an AITX LLC company. AITX and American Industrial Transport as well as AX Logo are trademarks owned by American Industrial Transport, Inc. Railcar repair and maintenance services are provided through AITX Railcar Services, LLC and AITX Railcar Services of Canada, Inc., wholly-owned subsidiaries of American Industrial Transport, Inc. Railcar leases are entered into by AITX Leasing, LLC, an AITX LLC company.

AILWAY GE

February June 20212020

30

FEATURES

10

Equipment Leasing Guide

24

Sure-Footed Sorting

Herzog

30

Elephant in the Room Takes Leave

Improving Class Yard Efficiency

Precision Measuring Assessing Rail Alignment and Health

DEPARTMENTS 4 6 8 37 38 38 39

Industry Indicators Industry Outlook Market People

NEWS/COLUMNS 2 40

From the Editor ASLRRA Perspective

Professional Directory Classified Advertising Index

ON THE COVER: A Union Pacific manifest train hauling hazmat tank cars rolls through Athol, Idaho.

Photo: Bruce Kelly

Railway Age, USPS 449-130, is published monthly by the Simmons-Boardman Publishing Corporation, 88 Pine St., 23rd Fl., New York, NY 10005-1809. Tel. (212) 620-7200; FAX (212) 633-1863. Vol. 222, No. 6. Subscriptions: Railway Age is sent without obligation to professionals working in the railroad industry in the United States, Canada, and Mexico.

However, the publisher reserves the right to limit the number of copies. Subscriptions should be requested on company letterhead. Subscription pricing to others for Print and/ or Digital versions: $100.00 per year/$151.00 for two years in the U.S., Canada, and Mexico; $139.00 per year/$197.00 for two years, foreign. Single Copies: $36.00 per copy in the U.S., Canada, and Mexico/$128.00 foreign All subscriptions payable in advance. COPYRIGHT© 2021 Simmons-Boardman Publishing Corporation. All rights reserved. Contents may not be reproduced without permission. For reprint information contact PARS International Corp., 102 W. 38th Street, 6th floor, New York, N.Y. 10018, Tel.: 212-221-9595; Fax: 212221-9195. Periodicals postage paid at New York, NY, and additional mailing offices. Canada Post Cust.#7204564; Agreement #41094515. Bleuchip Int’l, PO Box 25542, London, ON N6C 6B2. Address all subscriptions, change of address forms and correspondence concerning subscriptions to Subscription Dept., Railway Age, PO Box 1407 Cedar Rapids, IA. 52406-1407, Or call toll free (US Only) 1-800-553-8878 (CANADA/INTL) 1-319-364-6167. Printed at Cummings Printing, Hooksett, N.H. ISSN 0033-8826 (print); 2161-511X (digital).

railwayage.com

June 2021 // Railway Age 1

FROM THE EDITOR

AILWAY GE

In Memoriam

I

never thought, during all the years I’ve spent at Railway Age, taking into account everything I’ve ever written, that I would be writing a column like this one. Even the one I wrote for our October 2001 issue about the 9/11 terrorist attacks, where I described witnessing both Twin Towers collapse from my office window about a mile from Ground Zero in New York City, and the 3,000 people trying to escape who perished, can compare, because it’s different. Much different.

I won’t go too deeply into what we all already know about the May 26 mass shooting at the Santa Clara Valley Transportation Authority light rail yard and maintenance facility: VTA technician Samuel James Cassidy—a sick, angry, deranged man with a history of violence, armed to the teeth with semi-automatic pistols and ammunition drawn from his home arsenal—kills nine of his co-workers and then kills himself

SUBSCRIPTIONS: 800-895-4389

as soon as law enforcement locates and confronts him. We’ve seen this happen, over and over and over, in recent times. Why? No one really knows. Evil and hate cannot be easily explained, much less understood.

The best we can do as a railway community is pay tribute to those who lost their lives, grieve with their loved ones, and hope and pray that it never happens again. There are no guarantees, even if guns are kept way from those who have no business owning them—and even if the politicians who refuse to deal with the problem start thinking with their consciences and their hearts, instead of their gun-lobby-financed campaign coffers and the next election.

Please, never forget the good, hardworking railroaders pictured below. They unexpectedly and needlessly lost their lives while just doing their jobs. It isn’t right. It isn’t fair. And it will never, ever make any sense.

WILLIAM C. VANTUONO Editor-in-Chief

EDITORIAL AND EXECUTIVE OFFICES Simmons-Boardman Publishing Corp.

88 Pine Street, 23rd Fl. New York, NY 10005-1809 212-620-7200; Fax: 212-633-1863 Website: www.railwayage.com ARTHUR J. McGINNIS, Jr. President and Chairman JONATHAN CHALON Publisher jchalon@sbpub.com WILLIAM C. VANTUONO Editor-in-Chief wvantuono@sbpub.com MARYBETH LUCZAK Executive Editor mluczak@sbpub.com BILL WILSON Engineering Editor/Railway Track & Structures Editor-in-Chief wwilson@sbpub.com DAVID C. LESTER Managing Editor, Railway Track & Structures dlester@sbpub.com HEATHER ERVIN Ports and Intermodal Editor/Marine Log Editor-in-Chief hervin@sbpub.com Contributing Editors David Peter Alan, Roy Blanchard, Jim Blaze, Nick Blenkey, Sonia Bot, Peter Diekmeyer, Alfred E. Fazio, Don Itzkoff, Bruce Kelly, Ron Lindsey, Ryan McWilliams, David Nahass, Jason H. Seidl, David Thomas, John Thompson, Frank N. Wilner, Tony Zenga Art Director: Nicole D’Antona Graphic Designer: Hillary Coleman Corporate Production Director: Mary Conyers Production Director: Eduardo Castaner Marketing Director: Erica Hayes Conference Director: Michelle Zolkos Circulation Director: Maureen Cooney INTERNATIONAL OFFICES 46 Killigrew Street, Falmouth, Cornwall TR11 3PP, United Kingdom 011-44-1326-313945 International Editors Kevin Smith ks@railjournal.co.uk

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

Change of address should reach us six weeks in advance of next issue date. Send both old and new addresses with address label to Subscription Department, Railway Age, PO Box 1407, Cedar Rapids, IA. 52406-1407, or call toll free (US Only) 1-800-553-8878 (CANADA/ INTL) 1-319-364-6167. Post Office will not forward copies unless you provide extra postage.

Photocopy rights: Where necessary, permission is granted by the copyright owner for the libraries and others registered with the Copyright Clearance Center (CCC) to photocopy articles herein for the flat fee of $2.00 per copy of each article. Payment should be sent directly to CCC. Copying for other than personal or internal reference use without the express permission of Simmons-Boardman Publishing Corp. is prohibited. Address requests for permission on bulk orders to the Circulation Director.

Railway Age welcomes the submission of unsolicited manuscripts and photographs. However, the publishers will not be responsible for safekeeping or return of such material.

Member of:

SBP 2 Railway Age // June 2021

SIMMONS-BOARDMAN PUBLISHING CORPORATION

David Burroughs dburroughs@railjournal.co.uk David Briginshaw db@railjournal.co.uk Oliver Cuenca oc@railjournal.co.uk CUSTOMER SERVICE: 800-895-4389 Reprints: PARS International Corp.

253 West 35th Street 7th Floor New York, NY 10001 212-221-9595; fax 212-221-9195 curt.ciesinski@parsintl.com railwayage.com

HIGH CAPACITY I PRECISION I RELIABILITY

Leading the Way Plasser American is known for highly productive and innovative track maintenance machines. Besides its outstanding technological achievements, Plasser American has always endeavored to find solutions specifically for the American Transit and Commuter Railroad Industry, and to be a reliable, long-term partner with our customers.

Decades of experience, up-to-date know-how, excellent track quality and favorable return on investment are reflected in thousands of machines nationwide.

www.plasseramerican.com ”Plasser & Theurer“, ”Plasser“ and ”P&T“ are internationally registered trademarks

Industry Indicators AAR: ‘NUMEROUS CATEGORIES HAVE COMPLETELY RECOVERED LOST GROUND’ “Numerous U.S. rail traffic categories have completely recovered the ground lost during the pandemic or are very close to doing so,” the Association of American Railroads reported in May. “For example, April saw a new all-time record for U.S. intermodal shipments, driven by surging international trade and strong consumer spending. The weekly average for intermodal for April was 293,488 containers and trailers, breaking the record of 293,305 set in January 2021. For the first four months of 2021, U.S. intermodal originations totaled 4.79 million units—the most ever for the first four months of a year. Grain, food, lumber, paper, scrap metal and several other categories were higher in April 2021 than April 2020 and 2019.”

Railroad employment, Class I linehaul carriers, APRIL 2021 (% change from APRIL 2020)

TOTAL EMPLOYEES: 115,485 % CHANGE FROM APRIL 2020: -7.19

Transportation (train and engine) 46,951 (-3.51%)

Executives, Officials and Staff Assistants 7,266 (-5.27%)

TRAFFIC ORIGINATED CARLOADS

Four WEEKS ENDING MAY 1, 2021

MAJOR U.S. RAILROADS

BY COMMODITY

APR. ’21

APR. ’20

% 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

104,147 3,878 36,118 24,185 133,128 44,357 250,958 4,089 14,577 21,337 27,886 13,473 37,809 16,840 47,239 80,554 16,282 32,911 14,536 27,536

87,140 3,952 31,988 19,457 115,927 40,579 195,029 4,213 11,538 19,801 21,446 12,625 26,566 8,613 8,348 81,377 16,014 28,285 11,502 25,380

19.5% -1.9% 12.9% 24.3% 14.8% 9.3% 28.7% -2.9% 26.3% 7.8% 30.0% 6.7% 42.3% 95.5% 465.9% -1.0% 1.7% 16.4% 26.4% 8.5%

TOTAL U.S. CARLOADS

951,840

769,780

23.7%

319,956

286,593

11.6%

1,271,796

1,056,373

20.4%

CANADIAN RAILROADS TOTAL CANADIAN CARLOADS

COMBINED U.S./CANADA RR

Professional and Administrative 10,126 (-4.81%)

Maintenance-of-Way and Structures 28,532 (-6.51%)

Maintenance of Equipment and Stores

Intermodal

Four WEEKS ENDING MAY 1, 2021

MAJOR U.S. RAILROADS

BY COMMODITY Trailers Containers TOTAL UNITS

17,895 (-17.57%)

CANADIAN RAILROADS

Transportation (other than train & engine)

Trailers Containers TOTAL UNITS

APR. ’21

APR. ’20

% CHANGE

89,692 1,084,260

59,983

1,173,952

817,211 877,194

49.5% 32.7% 33.8%

0 288,722 288,722

0 270,143 270,143

— 6.9% 6.9%

59,983

4,715 (-9.97%)

COMBINED U.S./CANADA RR

Source: Surface Transportation Board

Trailers Containers

89,692 1,372,982

1,087,354

49.5% 26.3%

TOTAL COMBINED UNITS

1,462,674

1,147,337

27.5%

Source: Rail Time Indicators, Association of American Railroads

4 Railway Age // June 2021

railwayage.com

TOTAL U.S./Canadian CARLOADS, APR. 2021 VS. APR. 2020

1,462,674

AILWAY GE

1,147,337

APRIL 2021

APRIL 2020

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 APRIL ’21

ORIGINATED APRIL ’20

% CHANGE

55,442 18,256 24,301 11,481 28,704 8,661 10,534 3,062 17,651 10,062 2,295 2,144 18,648 14,898 49,436 11,358 76,088

44,238 15,167 22,801 10,083 28,722 6,422 8,924 2,659 15,913 3,225 1,255 1,422 18,662 12,451 37,987 7,331 68,088

25.3% 20.4% 6.6% 13.9% -0.1% 34.9% 18.0% 15.2% 10.9% 212.0% 82.9% 50.8% -0.1% 19.7% 30.1% 54.9% 11.7%

Copyright © 2021 All rights reserved.

TOTAL U.S. Carloads and intermodal units, 2012-2021 (in millions, year-to-date through APRIL 2021, 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: Jennifer Izzo 203-604-1744 jizzo@mediapeople.com railwayage.com

June 2021 // Railway Age 5 RA_JobBoard_1/3Vertical.indd 1

9/30/19 3:16 PM

Industry Outlook “We are thrilled that KCS has agreed to combine with CN to create the premier railway for the 21st century.”

— CN President and CEO JJ Ruest

KCS Picks CN Over Canadian Pacific CN AND KANSAS CITY SOUTHERN (KCS) ON MAY 21 ENTERED INTO A DEFINITIVE MERGER AGREEMENT THAT, BARRING AN UNEXPECTED TWIST, ENDED WEEKS OF A TUG OF WAR BETWEEN CN AND CANADIAN PACIFIC. CN’s revised offer was submitted to and determined by the KCS Board of Directors to be a “Company Superior Proposal” on May 13. Also on May 13, KCS had notified CP of its intent to terminate its merger agreement with CP and enter into a definitive agreement with CN, “subject to CP’s right to negotiate amendments to the merger agreement for at least five business days, and the KCS Board’s further determination as to whether any such amendments would cause the CN proposal no longer to constitute a ‘Company Superior Proposal.’” CP did not offer any amendments.

CN and KCS on May 26 filed with the Surface Transportation Board (STB) a renewed motion for voting trust approval, which includes a commitment to divest “the sole area of overlap between the CN and KCS networks, thereby making the combination an end-to-end transaction.” That overlap, the 70-mile KCS line between New Orleans and Baton Rouge, represents less than 0.7% of the some 27,000 route-miles the two companies 6 Railway Age // June 2021

operate, according to the railroads.

The STB had on May 17 denied CN’s voting trust application on the grounds that it was incomplete, but “without prejudice to filing a new motion.” The new joint application “highlights that the voting trust protects against premature control of KCS and protects KCS’ financial health, that CN remains financially sound,” and that the merger benefits stakeholders, “nearly 1,100 of whom support it.”

“After an intense competition among CN, CP and private equity interests, all seeking to acquire KCS’s historic railroad franchise, KCS has determined that a partnership with CN will provide the greatest benefits to rail customers, employees, local communities, the North American economy and KCS shareholders,” CN and KCS wrote in their May 26 STB filing. “The Board’s approval of Applicants’ Voting Trust Agreement—and the regulatory certainty that it provides—is essential to unlock the considerable public interest benefits of a CN-KCS combination.

“Applicants appreciate that the STB will approve a voting trust for a major merger cautiously. Under the current merger rules, Applicants must demonstrate that the public benefits from the use of a voting trust exceed any potential harms. In this Motion, Applicants meet that standard. We will show

that approval of the proposed voting trust conforms with all requirements set forth in 49 C.F.R. Part 1013, would achieve substantial public benefits, does not present any significant public interest harm, and thus satisfies the Board’s public interest test in 49 C.F.R. § 1180.4(b)(4)(iv).”

The railroads also reported that the filing “satisfies every aspect” of the voting trust approval framework. Among the highlights: • “No unlawful control. Under CN’s proposed voting trust, KCS would maintain complete independence. KCS will continue to be managed by its existing management and board of directors, with a trustee [Dave Starling] who is a former chief executive of KCS. KCS will remain intact and preserve its ability to pursue its independent business objectives. CN will have no influence over the day-to-day management or operation of KCS. • “CN will remain financially strong. The Verified Statement of CN’s Chief Financial Officer, Ghislain Houle, included with the STB filing clearly demonstrates that the proposed transaction will not impair CN’s strong financial standing, and sets forth CN’s plan for rapidly paying down the debt it has secured to fund a portion of the KCS purchase.

CN has a strong record of investing in its network to provide safe service and is dedicated to applying that same approach to the combined CN-KCS network. CN made its highest capital investments in 2018-2020 on record, which were focused on adding capacity to accommodate growth and resiliency, deploying technology to improve safety and productivity, and investing in railcars and locomotives to serve our customers.

• “No risk to competition. While the STB will have ample opportunity to review the competitive dynamics of the CN-KCS combination, CN’s commitment to address the approximately 70-mile overlap with KCS in Louisiana indicates that the CN-KCS combination is a vertical, end-to-end merger.

An analysis by Bill Rennicke, a transportation executive and a consultant to railroads and motor carriers for more than 40 years [who is currently Partner with Oliver Wyman], included with the filing addresses specific concerns about competition in Mississippi [expressed by the Department of Justice], finding that CN and KCS’ North/ South lines in Mississippi are generally many miles apart and do not serve a single customer in common in this area.” railwayage.com

Right Part, Right Place, Right Time Siemens Mobility solutions have customized plans to eliminate costly concerns and the uncertainty they bring to your systems. Our Managed Inventory service keeps your rolling stock in prime condition with priority access to parts and technicians. Cost-managed maintenance straight from the manufacturer. Moving Beyond. usa.siemens.com/mobility

MARKET Miner Expands Gate Product Offerings

WORLDWIDE

NORTH AMERICA

RIO TINTO will install a collision avoidance system developed by RAIL VISION, Israel, on its network in Pilbara, Western Australia, under a proof-of-concept trial.

Rio Tinto is looking to improve its existing systems to detect potential threats such as vehicles or people on or near the tracks, which carry driverless iron-ore trains. If the tests are successful, Rail Vision could install its system on Rio Tinto’s fleet of nearly 220 locomotives. The system will be supplied by HITACHI RAIL as project integrator.

The CALIFORNIA TRANSPORTATION COMMISSION (CTC) has allocated $27.8 million for Los Angeles County Metropolitan Transportation Authority’s (Metro) purchase of new light rail vehicles, as part of a $924 million investment to improve state transportation infrastructure. The program includes 78 systemwide LRVs, with the option to buy an additional 39. (Metro’s proposed Fiscal Year 2022 budget includes $92 million for light and heavy railcar purchases for replacement and expansion.)

THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (VTA) has shortlisted three joint ventures to undertake the estimated $2 billion tunnel and trackwork contract for the Bay Area Rapid Transit (BART) Silicon Valley Phase 2 (BSV2) extension project, which will extend BART infrastructure from the existing temporary terminus adjacent to the Berryessa/North San José BART station into central San Jose, terminating in Santa Clara. The BSV program also includes the $2.3 billion 10-mile Phase 1 extension from Warm Springs/South Fermont to the Milpitas and Berryessa transit centers, which opened in June 2020. VTA has applied

8 Railway Age // June 2021

for $1.735 billion in federal funds through the Federal Transit Administration’s Expedited Project Delivery Pilot Funding Program (EPD), which will complete the funding plan to build the Phase 2 project. The BSV2 program will be delivered as four separate projects, comprising contract package 1 (systems), contract package 2 (tunnel/trackwork), contract package 3 (Newhall Yard and Santa Clara station), and contract package 4 (stations). BART issued a Request for Qualification (RFQ) for contract package 2 in December 2020. After the submissions were evaluated by both a technical team and an executive team, three groups were shortlisted: (1) BART SILICON VALLEY PHASE 2 TUNNEL PARTNERS (B2TP), a joint venture of Acciona Construction Corp. USA (Acciona), FCC Construcción (FCC), and The Lane Construction Corporation (Lane), supported by Hatch Associate Consultants (Hatch). (2) BAY VALLEY CONNECT, a joint venture of BouyguesTP’s U.S. subsidiary Civil & Building North America, Vinci Construction, and Barnard Construction, supported by Parsons. (3) KIEWIT SHEA TRAYLOR JOINT VENTURE, consisting of Kiewit Infrastructure West, JF Shea Construction, and Traylor Brothers, supported by Kiewit Engineering Group and Arup. railwayage.com

Miner Enterprises, Inc.

Miner Enterprises, Inc., has acquired the Toggle-Lock™ gravity gate product line for covered hoppers from Davanac, Inc., a division of The Railway Supply Group.

Miner subsidiary Powerbrace Corp. will manufacture the gates, which are designed for grain and potash service.

The gates and their parts will continue to be sold and supported through its sales, engineering and service teams. “I’ve been extremely impressed with the ToggleLock brand and its operational commitment to customer success,” Powerbrace Corp. President and General Manager John Swezey said.

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 5-3-21.

216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment Updated 5-3-21.

217 Railroad Operating Rules Updated 5-3-21.

218 Railroad Operating Practices - Blue Flag Rule Updated 5-3-21.

221 Rear End Marking Device-passenger, commuter/freight trains Updated 5-3-21.

223 Safety Glazing Standards Updated 5-3-21.

224 Reflectorization of Rail Freight Rolling Stock Updated 5-3-21.

225 Railroad Accidents/Incidents Updated 5-3-21.

229 Locomotive Safety Standards Updated 5-3-21.

231 Safety Appliance Standards Updated 5-3-21.

232 Brake System Safety Standards Updated 5-3-21.

49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, and 272. In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, this final rule provides the 2021 inflation adjustment to civil penalty amounts that may be imposed for violations of certain DOT regulations.

DATES: This final rule was effective May 3, 2021.

Part 215: Freight Car Safety Standards 49 CFR 215. Prescribes the minimum safety standards for freight cars allowed by the FRA. Includes safety standards for freight car components, car bodies, draft system, restricted equipment and stenciling. Softcover, spiral.

Updated 5-3-21

$32.95

Mech. Dept. Regs.

BKMFR

FRA News:

Order 25 or more and pay only $29.50 each

BKFSS

Current FRA Regulations Item Code

FRA Part #

209 211 BKTSSAF 213 BKTSSG 213 BKWRK 214 BKFSS 215 BKROR 217 218 BKRRC 220 BKHORN 222 BKHS 228 BKLSS 229 BKSLI 230 BKSAS 231 BKBRIDGE 237 BKLER 240 BKSEP

Update effective

5-3-21 5-3-21 5-3-21 10-7-20 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21

BKCONDC 242 5-3-21

BKBSS

Each

RR Safety Enforcement Procedures & Rules of Practice Track Safety Standards (Subpart A-F) Track Safety Standards (Subpart G) RR Workplace Safety RR Freight Car Safety Standards RR Operating Rules and Practices RR Communications Use of Locomotive Horns Hours of Service Locomotive Safety Standards Steam Locomotive Inspection RR Safety Appliance Standards Bridge Safety Standards Qualification and Certification of Locomotive Engineers Conductor Certification

232 12-11-20 Brake System Safety Standards

50 or more

30.50

27.45

10.95 10.00 10.50 8.50 10.50

9.86 9.00 9.45 7.65 9.45

6.75 14.75 12.50 12.50 25.95 10.50 7.95 14.25

6.10 13.25 11.25 11.25 23.35 9.45 7.15 12.85

12.50

11.25

Each

25 or more

16.50

14.85

FRA Part #

Update effective

Each

25 or more

BKCAD

40 219

4-23-19 Drug and Alcohol Regulations in 5-3-21 the Workplace

38.95

35.00

BKSTC

233 234 235 236 238 239

5-3-21 5-3-21 5-3-21 5-3-21 5-3-21 5-3-21

Signal and Train Control Systems

21.50

19.35

Passenger Safety Standards

25.50

22.95

BKPSS

Compliance Manuals BKINFRA18 BKTM

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

Part 232: Brake System Safety Standards 49 CFR 232. Regulations and general requirements for all train brake systems, inspection and testing, periodic maintenance and training requirements, and end-of-train devices for Class I, II, and III railroads. Plus the introduction of new brake system technology. Softcover. 155 pages. Updated 12-11-20

BKBSS

38.00 49.95

34.00 44.95

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

Brake System Safety Standards

$16.50

Order 25 or more and pay only $14.85 each

Part 231: Railroad Safety Appliance Standards 49 CFR 231. General requirements for safety appliances including: handbrakes, brake step, running boards, sill steps, ladders, end ladder clearance, roof handholds, side handholds, horizontal end handholds, vertical end handholds, and uncoupling levers. 106 pages. Softcover.

Updated 5-3-21

BKSAS

Combined FRA Regulations

$8.50

Freight Car Safety Standards Order 50 or more and pay only $7.65 each

Railroad Safety Appliance

$10.50

Order 50 or more and pay only $9.45 each

800-228-9670 www.transalert.com

The Railway Educational Bureau 1809 Capitol Ave., Omaha NE, 68102 I (800) 228-9670 I (402) 346-4300 www.RailwayEducationalBureau.com Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN Orders over UP TO $10.00 $4.75 $9.20 25.01 - 50.00 12.00 20.05 $75, call for shipping 10.01 - 25.00 8.80 15.35 50.01 - 75.00 13.50 25.05 *Prices subject to change. Revision dates subject to change in accordance with laws published by the FRA. 5/21

2021 GUIDE TO EQUIPMENT LEASING

THE ELEPHANT IN THE ROOM TAKES LEAVE

W

elcome to the 2021 Guide to Equipment Leasing.

Let’s start out by addressing the space in the room left by the exiting elephant: The U.S. economy and its residents clearly are looking forward to the end of the pandemic era and the opening of the economy. In anticipation of growth and expansion, companies are looking to build up inventories while trying to manage

10 Railway Age // June 2021

congestion at the ports of Los Angeles and Long Beach. Commodities (including lumber), although gently pulling back from recent highs, have been surging. Rail loadings have risen above 2020 levels (how couldn’t they?), but languish below 2019 levels (which were lower than 2018).

For the 2020 Guide to Equipment Leasing, in the heat of the pandemic, three operating lessor executives answered a few questions about the current state of and future of operating leasing and the railcar market.

As the world rolls out of the pandemic, the same three executives answered similar questions to see how their point of view may have changed in the past 12 months. The participants are Jeff Edelman, President, Infinity Transportation; Greg Schmid, Managing Director-Rail, RESIDCO; and Jeff Lytle, President, Rail Division, CIT. Here are the questions, and their answers: • How has the lease market changed in the past 12 months? Will this trend continue? For context I am thinking about railwayage.com

Bruce Kelly

BY DAVID NAHASS, FINANCIAL EDITOR

lease rates, railcar demand, the impact of steel and scrap prices and the fact that general freight loadings (except intermodal), while certainly better than 2020, are still below 2019 levels, which was a down year from 2018.

Edelman: There has been an acceleration year over year with respect to demand, pricing and inquiries. A year ago, I think everyone in the market was concerned with the pandemic and how long it would last, and worried about managing the downside. There is a lot of pent-up demand that has resulted in significant activity so far this year. The scrap and steel markets have spiked and led to opportunities; however, it may offer mixed results in time should pricing persist. On the one hand, this will lead to an acceleration of retirements for aged, impaired and obsolete cars, which we view as a positive. However, the velocity in these markets makes it difficult to 12 Railway Age // June 2021

project price escalators for steel and scrap surcharges tied to new car manufacturing, which may mute a significant build cycle and recovery.

Schmid: The market has improved dramatically in 2021. Re-stocking of shipper inventory will take time, so we predict an improving market for railcars into 2022.

Railcar demand as well as lease rates are well above levels from a year ago. Demand is certainly outstripping supply in numerous commodity types. The percentage of railcar scrapping will probably be double that of normal levels this year, assuming scrap continues to be above historic levels.

Legacy railcars should continue to see improved lease levels because new car costs are higher than normal. The pandemic has also reduced some new car builders’ capacity because of plant shutdowns as well as personnel shortages. PSR is still a long-term concern for lessors, however.

Lytle: A year ago, there was great uncertainty about pandemic impacts, so it’s encouraging to see how much markets have recovered since then. While certain sectors remain challenged, we’ve seen improvements in multiple areas—notably in covered hoppers (excluding small cubes), railcars serving the steel industry, and certain tank car types. Despite the challenges, I believe the lease market still has room to run as the railroads pivot to growth. Steel and scrap prices may impact how customers think about alternatives to their current fleet.

With new railcars becoming more expensive, I would expect lease rates for existing railcars in some markets to reprice favorably from an owner’s standpoint. Higher scrap steel rates also may drive some car owners to accelerate their scrapping activity, which could tighten supply and present attractive replacement opportunities for car owners in certain markets. railwayage.com

William C. Vantuono

2021 GUIDE TO EQUIPMENT LEASING

Move your fleet in the right direction with one of the nation’s top rail lessors.

That’s tomorrow thinking.

As a leading lessor of railcars and locomotives in the nation,

we’re equipped to help you power forward with our: • Young, efficient and diverse fleet • Comprehensive leasing options • Fleet management tools

Let’s explore how our custom rail solutions can help you meet changing market demands and build new opportunities.

Visit cit.com/rail or call us at 312-906-5701.

©2021 CIT Group Inc. All rights reserved. CIT and the CIT logo are registered trademarks of CIT Group Inc. MM#9344

2021 GUIDE TO EQUIPMENT LEASING

navigate from here. I anticipate there will be investment opportunities for both new and existing rail equipment and portfolios during the rest of this year and beyond.

• What are you feeling about the future of railcar leasing? Is rail a growing business?

Edelman: Our team is optimistic about the future of railcar leasing, but also realistic with respect to yield, maintenance and administrative costs and market volatility.

While I am sure there will again be large build cycles over time, I’m not sure that reflects a growing business environment.

There are car type retirement trends on the horizon. However, it is unlikely there will be a one-for-one replacement due to

modal and market shifts, elevated manufactured pricing and efficiency initiatives, and consolidation with railroads.

Schmid: The railcar leasing business is a mature business, with numerous new entrants in the marketplace competing to deploy capital in large amounts. The railroads have become much more efficient through PSR and other initiatives. PSR over the longer term will shrink the number of cars needed in the industry, but hopefully the railroads will begin to be more aggressive in getting new lanes of opportunity.

Lytle: Once again, we’ve seen the importance of being well capitalized to withstand the down cycles, and to execute on growth opportunities. While I don’t think all

William C. Vantuono

• As a result of the pandemic, are you seeing any fundamental changes in the lease market?

Edelman: I think we are seeing immediate high demand driving things right now.

I don’t believe it’s a fundamental change.

Rather, it’s a positive cycle, with the question being: How long it will last?

Schmid: We really haven’t seen any fundamental changes. However, in the short term, the marketplace appears to be in a robust phase. We see it more as market normalization.

Lytle: The pandemic tested car owners on their ability and willingness to withstand the downside of the cycle. We are watching closely as other car owners consider how to

Michael E Mahoney - President 1401 Walnut Street, Suite 500, Boulder, CO 80302 (646) 258-5812

14 Railway Age // June 2021

mmahoney@railsolutions-llc.com

railwayage.com

THE EQUIPMENT YOU NEED WHEN YOU NEED IT.

Nordco TRIPP Tie Exchanger

Knox Kershaw Tie Crane KTC 1200

Racine Advanced Tie Plate Inserter “ATPI”

We have a wide array of equipment options designed to solve all of your MOW needs. We Tie season is upon us! RELAM offers a wide array of railway equipment for tie teams to lease. also offer custom financing programs that allow you to select the railroad equipment you Refresh your fleets with the newest equipment available in the market. By choosing to lease it, want—from Tampers to Spikers to Cranes and more—without compromising your financial you can reap the benefits of using new equipment while avoiding the high cost of ownership. stability. contact us to determine availability.

RELAM’sPlease competitive monthly rates, combined with the tax advantages of leasing, can make the wisest financial option for your team.

HARSCO STABILIZERS & TAMPERS • KNOX KERSHAW REGULATORS, SNOW FIGHTERS & TIE GRAPPLES, FLATBEDS, ROTARY DUMP, WELDING & PICK-UP HI-RAIL TRUCKS

EQUIPMENT HARSCO • PETTIBONE SPEEDSWINGS & CRANES • RACINE RAILROAD PRODUCTS STABILIZERS & TAMPERS • PETTIBONE SPEEDSWINGS & CRANES • NORDCO SHUTTLEWAGONS • ANCHORSPIKERS, APPLICATORS, SPIKERS, GRABBERS, HSTX TAMPERS & TIE NORDCO ANCHOR APPLICATORS, GRABBERS/PULLERS, HST TAMPER & TIE EXCHANGERS SHUTTLEWAGON • HUDSON CARS • RAIL HEATERS • OTM & TIE CARTS INSERTERS •• RACINE OTM & TIE CARTSBALLAST • HUDSON BALLAST CARS • RAIL HEATERS KNOX & KERSHAW BALLAST REGULATORS, SNOW FIGHERS & TIE EQUIPMENT

CONTACT US TODAY TO SEE WHAT WE CAN DO FOR YOU AND YOUR BUSINESS.

T 800.962.2902

RELAM East

quotes@RELAMinc.com

7695 Bond Street

www.RELAMinc.com

Glenwillow, Ohio 44139

MUL Railcars: Ready to Deliver A diverse and growing fleet

Our fleet of new and existing railcars is designed to address the full range of industry requirements: from specialty hoppers and tanks to a complete array of general freight cars.

We continue to invest at an accelerating pace, more than tripling our original fleet over the last two years. We’re making a multi-year, multi-billion dollar investment in a robust rail portfolio designed to serve the current and future needs of our customers.

Committed to service and ease of doing business We have the right people with an unwavering commitment to being responsive to our customers and delivering first-rate service and solutions including engineering and regulatory support, maintenance, repair and dedicated customer support.

Here for the long haul MUL Railcars is a subsidiary of Mitsubishi UFJ Lease & Finance Company Limited (MUL).

MUL is a prominent global leasing company in Japan and a member of the Mitsubishi UFJ Financial Group (MUFG), one of the world’s leading financial institutions. We are built to last with strong financial capabilities and a commitment to the rail industry.

A member of MUFG, a global financial group sales@mul-railcars.com • 503-208-9557 www.mul-railcars.com

railcar leasing companies will grow, I do see growth opportunities for those with patient capital and a relentless focus on long-term customer relationships.

• As a result of the pandemic, do you see any changes in the way companies will address their future railcar needs?

Edelman: The lesson of the pandemic for shippers may be the value and flexibility with leasing vs. ownership. Assuming a diversified lease expiration profile, shippers and railroads have the opportunity to trim the fleet in challenging times. As long as lessors follow the same approach in managing expirations, both parties have the opportunity to manage through challenging times.

Schmid: I don’t think so. There is a possibility that railroads and shippers may increase their percentage of leased vs. owned fleets in order to retain maximum flexibility. The railroads have been encouraging shippers to get their own cars, if not part of their (the railroads’) core fleet demographic, but this relates more to PSR than to the pandemic.

Lytle: Several new companies are employing what I would call asset-light business models. While there may be some interest in that approach, we know customers often need equipment quickly. There’s simply no substitute for your long-time, trusted partners when it comes to fulfilling that critical railcar need. We spend a lot of time in front of our customers to understand their railcar needs so we can position our portfolio to serve them best. Responsiveness is critical to our customers, and we design our commercial processes to deliver fast results.

INFRASTRUCTURE BILL MERRY-GO-ROUND The Biden Administration came out guns ablaze in late March with a $2.3 trillion infrastructure bill. There continues to be an ongoing debate in Congress on a partisan level about the size of the bill, the impact on corporate tax rates, the lengthy repayment term (15 years!), and on the scope and priorities of the total proposal.

While there is a ceiling ($2.3 trillion) and a floor ($928 billion from House Republicans) between competing proposals, the broad gap in amount remains a concern.

Usually, goal posts suggest that a deal is at hand. With such a wide gulf between the railwayage.com

posts, and an incredibly diverse and somewhat divisive set of priorities, the resolution looks a little fuzzy right now. However, other than continuing some current grant programs, freight rail will not receive any major direct benefits from anything falling into the infrastructure bucket.

Best hope for rail to benefit from such government largess? An increase in loadings in commodities used in work approved by the bill. Think aggregates, cement and finished steel. That’s good news. However, stuck in the craw of railroad management is the premise of subsidizing—through higher corporate taxes—government infrastructure projects and technology (e.g., electrified over-the-road vehicles) that compete against rail for freight dollars.

HOT ROLLED STEEL SHAKES UP NEW CAR PRICING The increase in the price of hot rolled steel, which has soared in 2021, is heavily impacting pricing in the new railcar market. Originally thought to be a runup with a slow decline, indications are that today’s high price runup may have some longer-term grip to it. Prices have effectively tripled since August 2020 and are expected to stay in a range suggesting a 2x increase until the middle of 2Q2022. Railcar purchasers got a bit of sticker shock when prices reset to adjust for higher commodity costs. Some purchasers are seeing increases of 15% in the cost of a new railcar.

Why does this matter, if you’re not in the market for a railcar right now? The railcarpurchaser-friendly cocktail of low steel costs, low interest rates and weak demand has held lease rates down for some time. While rates have not started to increase yet (see “Around the Market,” to follow), railcar owners and manufacturers could see an improvement in lease rates driven by increasing new car costs.

Historically, used car values and lease rentals loosely track the new car market. Shippers accustomed to lower rates that never seem to increase might look to lock in today’s rates before the impact of steel pricing hits the balance sheet.

SCRAPAPOLOOZA REDO In June 2011, your erstwhile author penned a small portion of the Guide to Equipment Leasing under the tutelage of the late Anthony Kruglinski, Railway Age’s

INTELLIGENCE IN RAIL

AUTOMATIC SUCCESS Automated Inspections Mitigate Incidents Automated Inspections Monitor & Identify Issues

Wayside Monitoring Machine Vision Inspection

Remote Diagnostics Real-Time Fleet Wide

Asset Management Analyze & Act

rail.trimble.com | rail@trimble.com © 2021. Trimble, Inc. All rights reserved.

June 2021 // Railway Age 17

2021 GUIDE TO EQUIPMENT LEASING

Grain loadings continue to surge upwards above levels of 2019 (but still below 2018).

There has been some scrapping of older cars and some ordering of newer, highcapacity cars, like this one, from National Steel Car.

previous Financial Editor. One of the great things about North American rail is that, every so often, something old becomes something new. Back in 2011, scrap prices were around the same range, $400-$425 per ton, that they are today. In that piece in 2011, it was noted that scrappers were on the hunt for more scrap due to increasing foreign demand.

Fast-forward to 2021, and the market for scrap, while equivalent to 2011 in price per ton, ref lects a completely different set of market factors. Post-pandemic and following a period of rental weakness and the crashing of the frac sand and coal markets, the 2021 market is edging on being fully supplied, even as scrap rates remain taut and motor vehicle manufacturing has decreased due to the crisis in microprocessors. Don’t blame the infrastructure bill (yet). Anticipation of the global economic rebound (including demands for finished steel) is driving export demand from China and Turkey.

That is having an impact on domestic

STABILITY The right rail assets are critical to your company’s success As you look to grow your business, give us a chance to earn your business.

We welcome the opportunity to discuss your railcar needs.

18 Railway Age // June 2021 956626_SMBC.indd 1

railwayage.com 3/14/19 4:50 PM

National Steel Car

SMBC ©2014

smbcrail.com | sales@smbcrail.com

ON TRACK. ON TIME. LEASE. REPAIR. SERVICE.

LEASE

With a diverse fleet of more than 23,000 railcars and locomotives that we lease, manage and sell, we’re prepared to help you navigate the complex demands of your business.

REPAIR

With repair shops across the U.S., we’re well-positioned to assist with your repair, maintenance and renovation needs. Services include tank car repair, cleaning, blasting, painting, mobile repair, and acting as an agent.

LEASING Matt Keck I 419-891-6693 REPAIR Vanessa Knapton I 708-490-8938

For more information about our leasing opportunities, repair locations and services, visit www.AndersonsRail.com

2021 GUIDE TO EQUIPMENT LEASING prices for steel producers operating electric arc furnaces. They rely on scrap for their feedstock. While high rates are the norm for now, don’t hold out for stability at these levels or even for $500 or $600 per ton of scrap. Follow the words of one expert who said, “The market will come down eventually. I wish it wouldn’t … I’m selling my scrap.”

210043

New DOT/TC-117J tank cars for crude oil and ethanol, built to a very high shared safety standard for FRA and Transport Canada, are commanding more of a premium due to cost; those are running in the high-$700s to low-$800s, full-service.

AROUND THE MARKET The surge in scrap and finished steel has not yet equated into a surge in lease rates.

While there have been some improvements in certain markets, others continue to scuffle as rail looks to find its footing. Here is a summary of what’s happening around the market: Coal Cars: While coal loadings have actually gotten up off the mat, lease rates have not followed. Net rates continue to languish below $100 per car per month (PCPM), and full-service rates are in many cases not high enough to cover the cost of maintenance. With aluminum

WE KEEPYOU ROLLING Contact us today.

180098

Progress Rail offers flexible leasing solutions to suit your fleet. +1-800-476-8769 • progressrail.com @progressrail •

20 Railway Age // June 2021

@Progress_Rail

railwayage.com

2021 GUIDE TO EQUIPMENT LEASING prices stepping up along with ferrous scrap, an aluminum gondola car can be scrapped for about $12,000 (except freight charges). Look for continuing exits from this market by investors as the writing on the wall about the future of coal darkens daily.

Covered Hoppers for Sand and Cement: These are in competition with coal for the worst market today. Here again, scrapping has been taking place, but the oversupply is so significant that it’s drops in the bucket. Lease rates are low here: double digits, net and full. There isn’t an infrastructure bill big enough to revive this market. More pain ahead.

Covered Hoppers for Grain: Loadings continue to surge upwards above 2019 levels (but still below 2018). There has been some scrapping of older cars and some ordering of newer cars (CN recently ordered 1,000 cars from Trinity). 4,750cf full-service rates are low- to mid-$200s PCPM, which is up from pandemic lows.

Jumbo cars are in the mid- to high-$300s,

full-service. These rates might slow the scrapping of cars, even at today’s rates.

Covered Hoppers for Plastics: This market remains somewhat oversupplied by a mix of used equipment and by continued new deliveries for service in new projects still under production.

Parity seems a ways off at the moment, with lease rates on newer cars sub-$500 full (sub-$450 net). Smaller, older cars are going to scuff le as demand for those cars will show more weakness. Those cars are leasing low-$300s net and may struggle to recover from there.

Pressure Tanks: This market has slid down a bit but remains stable at lower levels. Rents are in the low- to mid-$600s, full-service. Once available inventory gets snapped up, expect prices to rise from these levels when orders for new cars start to get placed.

Mill Gondola Cars: Even though scrap prices are at higher levels, scrap loadings have not fulfilled the same level of promise.

Therefore, car demand remains relatively

weak along with lease rates. Older mill gons (263K GRL) rates are in the mid-$200s PCPM full-service, while newer cars (286K GRL) are in the mid- to high-$300s.

Crude Oil and Ethanol Tanks: This market continues to be set with oversupply, both for older DOT-111As and 117Rs (rebuilt). Full-service rates hover around $600, but longer lease terms for these cars seem elusive. New DOT/TC-117J cars are commanding more of a premium due to cost; those are running in the high-$700s to low-$800s, full-service.

Smaller Tanks: 20Mg (20,000-gallon) tanks are costing about $700 full-service for existing cars. Prices are higher on the newer side. Looking for corn syrup? The older 17Mg car is sitting in the low-$300s full-service, while a newer 19Mg car is in the mid- to high-$500s. The 17Mg car in industrial (chemical service instead of food grade) commands a larger premium: mid$500s, full-service.

Equipment Leasing Guide Profile Directory follows on p. 22.

Infinity

STAY IN GEAR WITH RAIL GROUP NEWS

Transportation

LEASING & EQUIPMENT MANAGEMENT Powered by Global Atlantic

Infinity Transportation provides efficient, costeffective leasing and financing solutions for a wide range of clients in rail and intermodal markets.

Infinity delivers: • A large rail fleet comprising an extensive range in car types • Exceptional customer service and flexibility with leases and modifications • An unwavering commitment to finding the transaction and equipment that meets each customer’s specific needs • A team that delivers over 90 years of combined transportation equipment management experience To learn how quickly Infinity Transportation can meet your rail needs, contact:

RAIL

From Railway Age, RT&S and IRJ GROUP http://bit.ly/rail_news

railwayage.com

NEWS

Lee Martini lee.martini@gafg.com VP of Sales & Marketing (678) 904-6315 Brian Ottinger brian.ottinger@gafg.com VP of Sales & Marketing (312) 731-2763 ROUND-UP of NEWS STORIES FROM: Ken Johnson ken.johnson@gafg.com of Sales & Marketing (859) 640-0362 RAILWAYVP AGE, RT&S and IRJ

June 2021 // Railway Age 21

equipment leasing guide

Leasing Resource

Directory American Industrial Transport, Inc., headquartered in St. Charles, Missouri, is a leading solutions-provider of railcar leasing and repair services. AITX provides customers across diverse industries a flexible portfolio of leasing options from a railcar fleet, sourced and managed in-house. AITX operate worldclass railcar repair services through its specialized repair network spanning across North America.

Offering a range of services from full to light repair, AITX’s repair capabilities include full-service repair facilities, mobile service units, and onsite customer dedicated repair operations.

Dean Sawyer, SVP Sales & Marketing American Industrial Transport, Inc. 100 Clark St, St Charles, MO 63301 (636) 940-6000 Email: dsawyer@aitx,com AITX.com

The 2021 Guide to Equipment Leasing (pages 10 through 21) is supported by companies that provide equipment leasing and financial services and products to the rail industry. All of these firms have advertisements elsewhere in this section or have used paid profile space to present their background and capabilities.

At TCIX Rail we still believe the business is best when you treat people how you would like to be treated.

With 35+ years in the railcar leasing industry we understand the complexities and hurdles our customers face on a daily basis. With our diverse fleet of tankcars and covered hoppers, we go above and beyond to meet the demands of our customers.

You can lease with confidence knowing we treat our interactions with customers as more than just business and more as a relationship. We know that your success will equal our success and we can grow together as partners by helping each other achieve our best potential. We have a dedicated fleet management staff that works hard to ensure our railcars are in tip top shape. Every department in our company is focused on making sure each customer feels valued. From accounting to IT to Sales we are all ready to pitch in and help with anything our customers may need. When you call, you won’t get shuffled around to different voicemail boxes. You will talk with a caring employee the first time, every time.

For solutions and railcar availability email us or call TCIX Rail leasing@tcixrail.com 918-495-3500 www.tcixrail.com

The David J. Joseph Company a NUCOR® company

CIT’s Rail division offers a full suite of ra i l c a r l e a s i n g a n d e q u i p m e n t financing solutions to rail shippers and carriers across North America.

Our Rail Division is a top lessor of high capacity railcars offering flexible lease terms, a diverse fleet , and customer service focused on longterm customer relationships. Our turnkey-ready cars are available to support increasing demand, free up capital for growth, and minimize outof-service time.

Let’s explore how our full suite of services can help power customer g row t h a n d s u p p o r t o p e rat i n g priorities in a growing economy at cit.com/rail

22 Railway Age // June 2021

The David J. Joseph Company’s Rail Group a company provides a broad range of transportation services throughout North America: single investor, freight cars, portfolio evaluation, purchases and sales of portfolios, and private fleet management.

Other services include freight car inspections and engineering services from design of new cars to complete ISL extended life, modifications and analysis; in addition to railcar dismantling for scrapping and parts reclamation.

R

The David J. Joseph Company Rail Group a NUCOR® company 300 Pike Street • Cincinnati, OH 45202 Tel.: 513-419-6200 • Fax: 513-419-6221 Contact: info@djj.com

www.djj.com

The Andersons Rail, a part of The Andersons, Inc., has served the rail industry for more than 30 years. We own a fleet of nearly 23,000 railcars which it leases to customers handling a variety of commodities. We provide repair, maintenance and manufacturing services to private railcar owners through repair shops and steel fabrication facility.

For more information, visit www. andersonsrail.com. Contact: Sean Hankinson, VP & GM of ANIRail, 419-891-6352, Sean_ Hankinson@andersonsinc.com

Infinity is a private lessor of a variety of railcar rolling stock.

Infinity prides itself on exceptional customer service and flexibility with regard to leases and railcar modifications to find the transaction and equipment to best serve our customers. Lease packages are tailored to meet customer needs, including a variety of short-term operating leases and longterm leveraged leases, as well as other assignment and deployment arrangements.

Larry Smith, Vice-President-Equipment Sales (678) 296-9709 • lsmith@infinityrail.com Lee Martini, Vice President of Sales & Marketing (678) 904-6315 • lmartini@infinityrail.com James Weaver, Vice President of Sales & Marketing 251-654-2166 • James.weaver@gafg.com CORPORATE OFFICES 1355 Peachtree Street • Suite 750 South Tower Atlanta, GA 30309 • www.infinityrail.com

railwayage.com

equipment leasing guide

R S , MUL Railcars, Inc. is an emergent power in the North American railcar leasing and management business, offering best-in-class asset management capabilities combined with a uniquely experienced and talented team dedicated to customer solutions. MUL Railcars offers a complete railcar leasing solution set with railcar asset management, regulatory support, specialized services and leasing products that provide customers with the options they need.

MUL Railcars, Inc. 121 SW Morrison Street Suite 1525 Portland, OR 97204 Tel.: 503-208-9295 Email: sales@mul-railcars.com

www.mul-railcars.com

Railroad Equipment Leasing And Maintenance (RELAM) Inc. is centrally located just outside Cleveland, OH and St. Louis, MO. RELAM provides railway equipment for short- or long-term leasing and have equipment for all your railway needs. We strive to provide excellent quality equipment at the best possible prices. Our name has become synonymous with quality service that delivers top of the line products, and this caliber of overall service has helped us grow our customer base. Our professionals will develop customized, knowledge-based solutions to fit your current and future needs. No off-theshelf solutions, no standardized approaches.

Tell us the equipment you want and let us do the rest. Our experts evaluate your requirements and deliver a program that works for you.

Request a more information at quotes@relaminc.com or call 800-962-2902

railwayage.com

Progress Rail offers a wide variety of leasing options for both locomotives and freight cars. On the locomotive front, we have the equipment to meet your motive power requirements from switchers all the way up to main line locomotives. We also offer a wide range of freight cars.

Progress Rail offers custom rolling stock leasing options to meet our customers’ specific requirements.

Understanding your needs and supplying an optimal solution is what we do best. Contact us today to learn more.

Progress Rail progressrail.com info@progressrail.com

SMBC Rail Services LLC is committed to providing innovative rail car leasing products and services to North America’s vital rail industry. Let one of our experienced professionals show you how.

Michael McCarthy President and CEO SMBC Rail Services LLC 300 S. Riverside Plaza, Suite 1925 Chicago, IL 60606 email us at sales@smbcrail.com www.SMBCrail.com

RailSolutions, LLC provides a broad variety of railroad equipment-related consulting, technical and advisory services to financial institutions, railroads, shippers and fleet operators with a primary focus on equipment valuation and appraisal services.

Additional areas of expertise include railcar and locomotive inspections, equipment repair and overhaul cost analysis, and portfolio valuations. Rail Solutions, LLC draws on over 40 years of railroad industry e x p e r i e n c e i n d eve l o p i n g m u l t i p l e quantitative valuation models supported by both a sound base of market data and advanced analytical techniques.

Michael E Mahoney - President 1401 Walnut Street, Suite 500 Boulder, CO 80302 (646) 258-5812

mmahoney@railsolutions-llc.com Investors’ Guide Inquiries: info@railsolutions-llc.com

www.railsolutions-llc.com

TrinityRail® provides our customers with comprehensive rail transportation products and services designed to provide value by optimizing the ownership and usage of railcars.

Available is an owned and managed fleet of approximately 130,000 railcars as well as fleet management solutions, administrative services and dedicated customer support. Access is also provided to TrinityRail’s extensive engineering and manufacturing platform, maintenance, parts, and on-site field support for operational assistance and training.

More information is available at www.trinityrail.com.

Brian Madison, EVP, Service Operations 14221 N. Dallas Parkway, Suite 1100 Dallas, TX 75254 800-631-4420 www.trinityrail.com

June 2021 // Railway Age 23

CLASS YARD PROCESS CONTROL

24 Railway Age // June 2021

railwayage.com

CLASS YARD PROCESS CONTROL Through technology, railroads can say bye-bye to classification yard bottlenecks.

BY WILLIAM C. VANTUONO, EDITOR-IN-CHIEF

C

SORTING

railwayage.com

Apex Rail Automation (formerly Vossloh Signaling)

SURE-FOOTED

lassification yards remain a backbone of railroading, mostly for “loose car” carload traffic, which accounts for approximately 60% to 70% of total rail traffic (excluding intermodal).

Gravity-hump or flat-switch, railroads are improving class yard efficiency, reducing car dwell time and the tendency for such a facility to become a bottleneck on an otherwise-fluid system. That’s what process control systems do. Among the key suppliers in this space are Apex Rail Automation (formerly Vossloh Signaling), PS Technology, RailComm LLC and Trainyard Tech LLC. Apex Rail Automation President David Ruskauff, with a software background, offers some historical context. “In the 1990s, there was development of what was called ‘object-oriented programming,’” he recalls. “It was based on breaking things into different functions, capabilities and objects, from a programming standpoint. It allowed you to take objects and combine and recombine them in different ways to come up with different solutions.

In the ’80s and ’90s, if you did a control system or any type of automation system, it was large, monolithic. You had to install complex power and comm systems. Everything was fixed in how it was assembled and what it was capable of doing.

“We started in the early days of Global Rail (a predecessor company) of splitting components into separate modules, whether they had to do with control software, DTMF (Dual Tone Multiple Frequency) decoding, audio boards or train detection. We split them into separate modules, so that we could combine them in different ways for different types of problems and solutions.”

Fast-forward to today. Apex’s MYA (Modular Yard Automation) technology incorporates switch machines, train detection and control and communication software, all built into different modules.

“We’re able to offer solutions that start from a single switch,” Ruskauff explains. “Let’s say you’ve got a main switch coming in and out of the yard.

We can put DTMF capability directly into the switch, so that crews coming off the main line can key themselves into the yard and basically not have June 2021 // Railway Age 25

CLASS YARD PROCESS CONTROL to stop the train to hand-throw a switch.

Same thing for departure. We can automate all the switches in a yard.”

Apex’s RailMaster, described as “a PC-based software system for controlling switches,” has been employed for yard automation. “We provide NX (entranceexit) automation for receiving and departure yards, moving trains within a yard facility,” Ruskauff says. “Our first system was in Mobile, Ala., for a CSX flat-switch yard. We took the RailMaster software, and instead of putting it into an office environment for a yardmaster or a dispatcher, we put it into an outdoor-rated computer, a kiosk where the people on the ground can set their routes and lineups in the yard at a touchscreen computer. They walk up to the top of a ladder, and send cars into different storage tracks. If you think of a ladder that you’re going to be switching on, the top of it is always an entrance. All storage tracks are exits. Following our very first installation in Mobile, we created a method within the RailMaster software to input a list of

destination tracks. And in a lot of these yards where we’ve installed this, they’ve gone to a single-person crew with RCL (remotecontrol locomotives). The person on the ground with the beltpack inputs the switch list, lines up the first one, and starts cutting cars off and kicking them down. Once the cars are rolling and past the switches, the system advances to the next one and lines it up. There are no manual switches or movements. It’s much safer.”

For RailComm, business has been brisk, says President Joe Forgione. “We remained fully operational during the entire pandemic,” he notes. “Given our skillset and our infrastructure, we operated mostly remotely, but that’s because we have the ability to support our customers through the cloud. Our people can work pretty much from anywhere.”

In 2019, the Georgia Port Authority selected RailComm as the yard management system provider for the new Port of Savannah Multi-Modal Connector. RailComm’s automation piece, compared to the

overall project size, is small but significant.

“The yard of the future is here, today,” says Forgione. “Everybody is waking up to the fact that you would never build a new yard anywhere, whether it’s at a port or intermodal facility, without fully automating it.”

Port and intermodal projects are largely done as P3s (public-private partnerships).

As a provider of the yard automation technology, RailComm finds itself as part of the consortiums that bid on these projects.

“Depending on the scope of the project, we are a subcontractor bidding on the automation piece,” Forgione explains. “Many times, we get involved before the project goes out for RFP, to help write the requirements. So there’s a large project management aspect in which we get involved to put all the pieces together.”

What Forgione calls RailComm’s “secret sauce” is its multi-purpose DOC® (Domain Operations Controller) software platform.

Its primary function in a yard application is lining switches. “All that can be done from a remote, safe and secure location,”

Stop The #1 Cause of Train Delays!

Switch Point Slider Prevents switch failures due to running rail by allowing the switch points to move freely and independently while maintaining perfect rod geometry.

Formerly Vossloh Signaling USA, Inc. TM

26 ApexRail_HalfPage_Ad.indd Railway Age // June 2021 1

Learn How by Contacting Us: sales@apexrailautomation.com (530) 272-8194

railwayage.com 5/26/21 9:44 AM

CLASS YARD PROCESS CONTROL says Forgione. “Usually, that’s in the yard office, though we’re beginning to see more and more railroads cluster locations, with the ability to manage multiple yards from a centralized location. In the very early days— and RailComm has been around for more than a decade—there were push-button switch control panels within the yard that eliminated hand throws, although, unfortunately, railroads are still doing a lot of that. Then we moved to a software platform from a computer within a central office.

Now, with smart mobile devices like tablets and phones, we offer, through a secure interface, the ability to throw a switch or activate blue flag protection from within a yard, rather than walking to the switch or to the end of the track.”

When RailComm was founded, the driving factor behind yard automation was mostly about efficiency, reducing dwell time. “It could take, for example, six hours to build a train, manually lining switches,” Forgione recalls. “We showed that, with automation, it could take only three hours.

railwayage.com

So, we would build a case, and it made a big difference, in reducing head count and getting dwell time down. But now, railroads are realizing that the driving factor is safety.

It’s moving from a secondary requirement to the primary one. I like to use this example: On an airport tarmac, how many people do you see walking around? Virtually none.

When you look at railroad safety, what’s the price of somebody getting injured or killed? It’s a big deal. We have many industrial customers who are looking to improve safety as well as efficiency. There are actually more industrial yards than Class I yards in the U.S. They’re a big opportunity, the next wave of rail automation.”

The biggest technological development in yard automation is flexibility, “the types of devices you can control, and from where they can be controlled,” says Forgione. “It used to be that every yard was a silo, individually managed with its own infrastructure.

Railroads are now looking at consolidating yard control into a single location, managing them from the cloud, much like we offer with

our dispatching business. We have 120 short lines managed out of our cloud. Once you get to the point where it’s in the cloud, you have the ability to begin to move employees around. I see that as a key trend.”

Forgione, in many respects, is a futurist, always questioning the status quo, identifying where the industry can do better. One area of particular interest is FRA regulations, which he feels are trailing available technology. The FRA, under the leadership of former Administrator Ron Batory, made progress embracing modern automation technologies, looking at making adjustments to testing and inspection rules.

“I think we’re starting to see much more openness to it,” Forgione says. “A lot of data is being collected and automated using technology as opposed to paper forms.

Railroads are starting to use intelligent devices to capture data. In terms of control, everything we do falls into the purview of what the FRA allows. Say, for example, you wanted to automate obtaining a movement authority before the train moves out, as

June 2021 // Railway Age 27

CLASS YARD PROCESS CONTROL opposed to having the conductor talk to a dispatcher. That would be something the FRA would have to get involved in. It falls into the same category of all this discussion about one- and two-person crews—what can be put on board, and how it can work.”

A combination of “rail yard knowledge and self-teaching AI (artificial intelligence) can lay the groundwork for optimizing operations,” says PS Technology. The company’s SwitchPro™ platform automates yard operations previously conducted through manual effort or legacy systems.

PST offers three Switch Pro™ classification yard process control systems: HPC, FPC and NX. All “utilize real-time, webbased health and monitoring systems that provide insight into terminal automation operations, such as utilization and efficiency, as well as alerts when equipment has failed.” PST says it has deployed more than 50 terminal process control systems, and is Union Pacific’s sole-source supplier.

PST’s HPC (Hump Process Control) consists of real-time process control

machines communicating with distributed IO. The Dynamic Hump Yard Speed feature “allows for a 20% increase in throughput, without sacrificing misroutes.” HPC also includes AEI Integration for work list validation and minimizing downtime during classification.

ML (machine learning) algorithms “allow for maximized coupling performance in all weather conditions.” Event playback and improved logging “support increased accuracy when troubleshooting and diagnosing failures.” HPC’s safety features include Dynamic Cornering Protection, Enhanced Presence Detection, Empty Track Logic and Contamination Detection that, among other functions, “minimize cornerings, derailments and rollouts.”

Throughout the pandemic, installation and upgrade work for Trainyard Tech LLC’s CLASSMASTER™ Process Control System, and for its ROUTEMASTER™ NX Control and SHOVEMASTER™ Flat Yard Control systems (which are built on the same platform as CLASSMASTER™),

How energy-efficient are locomotives?

Diesel-Electric Locomotives

Come along with us as we explore how diesel-electric locomotives actually work and penetrate the hush-hush world of locomotive fuel economy and energy efficiency.

This beautifully illustrated, information-packed book, written by an energy expert, allows you to look under the hood of the most modern diesel-electric locomotives through an energy and environment lens.

How They Work, Use Energy, and Can Become More Efficient and Environmentally Sustainable

by Walter

didn’t let up, according to President John Aliberti. “We’re doing a lot of software and hardware changes, as our customers have been making many upgrades and changes to their yard track configurations to run more efficiently and fluidly,” he says. “They’ve been doing everything from receiving and departure yard changes to rearranging tracks and switches to get trains over the hump faster. They design the physical changes, and then come to us to modify or upgrade the process control system. We recently finished upgrading Conrail’s Oak Island Yard (Northern New Jersey), and CSX’s Selkirk (N.Y.) Yard. We’re already well into upgrading CSX’s Radnor Yard (Nashville). It’s just been non-stop. We’re busier now than we’ve ever been.”

In terms of technological advancements, Trainyard Tech has been transitioning to “system virtualization.” “Instead of having multiple processors or computers with different functionalities, we’re now using one to three servers with virtual machines,” Aliberti says. “This reduces the system’s

Simpson

• Discover how every energy producing or consuming component of diesel-electric locomotives works, including the diesel engine, alternator/rectifier, inverters, traction motors, braking systems, auxiliary energy systems, head-end power, aerodynamics, and emissions controls.

• Learn about locomotive fuel economy technologies and energy efficiency performance measures rarely discussed by the railroad industry.

• Gain insights on meeting future environmental challenges with alternative fuels and motive power options.

“Walter Simpson’s book should prove interesting and educational to a wide audience—from rail buffs wanting to know more about the inner workings of their passion to anyone working on transportation policy. Professional railroaders will benefit from this well-researched nuts-and-bolts book.”

–Dave Cook, Rail Propulsion Systems

“Here at last is a publication that addresses the technical side of diesel electric locomotives yet one that explains the many details of these marvelous electro-mechanical machines in language a lay person can understand. And all this written from the unique perspective of energy conservation, one of the true hallmarks of North American railroading.”

–Don Graab, Retired Vice President-Mechanical, Norfolk Southern

Simmons-Boardman Books, Inc. 1809 Capitol Avenue, Omaha, NE 68102

1-800-228-9670

www.transalert.com • orders@sb-reb.com 28 Railway Age // June 2021

Gift Great ! a Ide

$45.00

Use book code BKDIESEL. Softcover, 250+ pages, full-color graphics.

S&H $12.00 single copy U.S., $20.05 single copy Canada. Call for shipping prices on international orders and for multiple book orders.

railwayage.com

CLASS YARD PROCESS CONTROL physical footprint while enhancing processing power. We’re able to do more things in a smaller box. Based on what our customers want, we’ve improved our algorithms, and added automation. We’ve added soft calibration, which reduces the amount of maintenance. Soft calibration is really automatic calibration, where the system self-tunes.”

Trainyard Tech has been in business for 18 years. “Years ago, when we designed a yard system, we would have several computers, each designated for different operations. The main process control would be handled by what we called the host, and we would have other computers to interface to external systems, like the railroad’s car inventory system. We would build a rack that would have maybe six to eight or more computers for other operations, like radio communications. Now, we’ll put all of them into smaller servers as virtual machines.

One box, multiple machines—virtually.”

Computing power has expanded exponentially. It has allowed suppliers of all types of railroad technology to, in simple terms,

fit more into a smaller package. Multiple redundancy can be built into one machine, rather than needing multiple machines to provide multiple redundancy.

“In our internal network for supporting all these systems, in the past, we would actually have a physical computer in-house for every project,” notes Aliberti. “There was a lot of maintenance required, especially when we were making changes. We of course have to test every change before we put it into the field. Well, now we have all that virtualized in a couple of large servers in our office. I call them large not because of their physical size, but because of how powerful they are. We’ve got more than 100 virtual machines running in them, and we can run tests from anywhere. Most of our people can work from home now. We can all access our internal systems or any system in the field through our network.”

Because of this functionality, during the COVID-19 lockdown, Trainyard Tech was able to do much of its field work remotely.

“We didn’t have to go out into the field very

much,” says Aliberti. We were able to do a lot of the work we normally do on site. It worked out well, as far as reprogramming a customer’s system. The railroad would make the physical track changes, and then we went into our system to reconfigure to what they needed. We were able to watch everything the railroad was doing, remotely. We ran tests jointly, and were able to operate 24 hours a day, if needed.”

This is what the post-pandemic “new normal” looks like for railroads, and for suppliers in the technology space: Working remotely, using the available communications tools, less travel, more flexibility, higher productivity, and lower operating expenses. That leaves more time and resources for important functions like research and development. It also allows for more time to be responsive to customers.

“All of our people have done very well through this situation,” says John Aliberti.

“The railroads have also adapted well to it.”

That’s a testament to the railroad industry’s resiliency.

TRUCKS AND EQUIPMENT FOR ALL YOUR RAIL AND TRANSIT NEEDS RENTAL SYSTEMS, INC. railwayage.com

PHILADELPHIA 800.969.6200 DENVER 800.713.2677 DANELLA.COM/RENTALS June 2021 // Railway Age 29

M/W Focus

Holland LP is pilot testing a locomotive-based autonomous system to provide full track geometry measurement (pictured).

C

M

Y

CM

MY

CY

CMY

PRECISION MEASURING

K

Suppliers are providing the latest technologies to help railroads assess rail alignment and health, quickly and accurately. rom track geometry to rail flaw detection, suppliers are providing the equipment and services railroads need to gather measurement data and identify flaws and internal defects.

Today’s technologies are not only more precise, but also more productive, helping

30 Railway Age // June 2021

freight and passenger railroads plan and conduct programmed maintenance—and take action before failures and service disruptions can occur, so they can focus on serving their customers.

Following is a roundup of suppliers who shared their latest offerings and market outlooks with Railway Age.

ENSCO RAIL, INC. “Freight and passenger railways have identified autonomous track geometry measurement as a key part of their track inspection future, as it is able to achieve the same quality measurements of a manned system, but at a fraction of the cost,” says Matthew Dick, Deputy Division railwayage.com

Holland LP

F

BY MARYBETH LUCZAK, EXECUTIVE EDITOR

M/W Focus

Herzog’s newest UT platforms combine multiple inspection services on one vehicle for a more comprehensive assessment of rail health.

Manager-Commercial Business Operations, who adds that ENSCO’s autonomous system helps railroads survey more miles per year. “Class I railroad customers in particular are starting to survey 100,000plus miles per year, which is approximately five times more than a manned vehicle.”

The company is currently delivering its first autonomous joint bar imaging systems

to two Class I’s. “These systems will enable detection of cracked joint bars and missing bolts, which are a key inspection requirement,” Dick tells Railway Age. ENSCO, he adds, is also in the process of delivering the first autonomous track component imaging system to a transit company in support of the Federal Transit Administration. It will allow for the automated inspection of

fasteners and ties, he says.

Driving such developments are ENSCO’s research and development efforts. Company engineers, for example, have investigated how to predict future track geometry exceptions based on recent measurements, Dick reports.

This approach, he says, can be used to identify when medium-level track geometry exceptions will turn into high-level exceptions.

Pandrol’s ultrasonic rail testing uses high pitched waves to identify defects in the rail. A full track inspection service provides an exhaustive report of the location, characteristics and urgency of defects.

pandrol.com 32 Railway Age // 1June 2021 Design New.indd

railwayage.com 19/05/2021 15:07:23

Herzog

Your track is talking Are you listening?

M/W Focus

With customers increasingly interested in high-resolution video, Plasser American now offers a 360-degree camera that can record an entire rail corridor.

are headed,” Elbert says. “We have seen early success in achieving real-time defect analysis using artificial intelligence/neural network technologies.”

HOLLAND LP Holland LP has developed a locomotivebased autonomous system to provide full track geometry measurement. Truckmounted, the system began pilot testing last summer at a Class I railroad. It can cover 500-600 miles of main line track per day or measure more than 100,000 miles per year, according to Sabri Cakdi,

Director of Product Development.

“We think this is a great alternative to the boxcar autonomous system,” Cakdi says.

Unlike the boxcar system, which requires the car to be outfitted with solar panels, backup batteries and power generators, for instance, Holland’s new system takes advantage of the locomotive’s power as well as its tachometer and GPS information. “We don’t make any structural changes to the locomotive— there’s no welding or drilling,” Cakdi adds.

Holland has been testing its performance against the Class I railroad’s conventional inspection car, and both have found the same

Plasser American

HERZOG Maintaining rail health is a constant challenge for the railroads, Herzog tells Railway Age. Finding defects before they become a problem requires repeat assessment and making the most of available track time.

While rail testing was down over the past year due to reduced freight and commuter traffic, Herzog says, the company has seen an uptick in the use of Continuous Testing (CT). CT fits into freight railroads’ tight work windows. “With CT, the railroads increase the miles of track inspected across the network and reduce delays associated with routine stop/start inspections,” the supplier explains.

Recently, Herzog added complementary services to its ultrasonic CT vehicles with the aim of gathering more data in one pass. “Now that we are capturing data for geometry and joint bar detection using visual imaging, LiDAR and new GPS/IMU systems, Herzog will be in the unique position of being able to collect and process multiple variates for cross correlation,” Herzog Services, Inc., President Troy Elbert reports. “Our goal is to develop intelligent algorithms that give our customers an up-to-date analysis on rail infrastructure health.”

By supplying more detailed network information, railroads can move toward scheduled, preventative maintenance rather than focusing on unplanned repairs or replacement, which slows down revenue service operations.

“Our dataset is robust, and we are excited about where our new inspection initiatives

railwayage.com

June 2021 // Railway Age 33

M/W Focus that may not be found otherwise.”

While Holland’s geometry system is positioned in front of a traction motor, it was designed not to be affected by electromagnetic interference, Cakdi reports. In addition, the system is reliable, he says, and has not needed any maintenance since it was installed.

With track time at a premium, customers “prefer multiple inspections in one pass,” Cakdi says. Railroads are not only looking for defects, but also determining trends so they can predict potential failures and rail life, he adds.

Among Holland’s other new products is the Gage Inspector, a portable, one-personoperated unit that can be moved between hi-rail vehicles in minutes, Cakdi says. The ENSCO’s autonomous joint bar imaging system (above) detects cracked joint bars and low-power system weighs 50 pounds and is missing bolts, which are a key inspection requirement. made in the United States.

Additionally, Holland is working on its next-generation geomsame defects, Cakdi says. “The locomotive system readings are just slightly higher because the weight is the heaviest,” he notes. The Class etry system, Argus 2.0, which is slated for launch before the end of I was interested in how the track behaves under a locomotive. “Our the year. The current system was designed for freight service, with preliminary conclusion is that it is slightly stressed and deflected a speed limit of 90 mph. The new system will be able to operate at more than with conventional inspection cars,” Cakdi says. “As the higher speeds for higher speed passenger rail service, Cakdi says.

On the research and development side, Holland is focused on weight goes up, the track deflects more. That allows us to find defects machine learning. “We believe that systems will be fully autonomous,” Cakdi says. “And that means algorithms will determine if a measurement is correct or not. At the moment, we have the baseline for it, but it still needs an experienced operator’s look, a final quality assurance look.”

Autonomous

Decreased derailment risk.

Increased efficiency.

Lower costs.

Solar Powered Roof Mounted Track Geometry Rail Cant and Wear Joint Bar Rail Surface Carbody Mounted

Continuous Data Streaming Battery & Fuel Cell Via Wireless Reserve Power

Vehicle/Track Interaction Monitoring

ENSCO Rail is the premier provider of autonomous inspection systems that identify defects early and improve rail network safety — at the lowest cost per inspection.

www.ensco.com/rail

34 Railway Age // June 2021

LORAM TECHNOLOGIES INC. “The fundamental indicator of track condition is track geometry, and in most cases, the condition defining the need for track quality improvement is poorly-performing track geometry,” says Loram Technologies Inc. “When we think of the geometry of the track, we think of the lines, curves and angles that make-up the track’s position along the right-of-way, and we talk of such things as vertical profile, horizontal alignment, cross-level and gage.”

Track geometry data from a measurement vehicle “provide an objective indication of the roughness of track, and by aligning and comparing track geometry roughness over time, one can quantify the performance and deterioration rate of the track,” says Loram. “For example, by analyzing the vertical profile geometry channel from successive inspection runs over time, the performance of the track’s ballast and drainage condition can be evaluated, since vertical profile is the geometry parameter most influenced by track substructure condition.”

Loram Technologies Inc. has developed a “heat plot” that expresses the geometry roughness on a color scale, with cool colors (blue, green) indicating smoother geometry, and hot colors (orange, red) indicating rougher geometry.

Integrating performance information derived from track geometry data with condition information “provides insight into the root-cause of track performance issues,” notes Loram. “From a track substructure perspective, Ground Penetrating Radar (GPR) data provides railwayage.com

Ensco

Track Inspection

M/W Focus continuous measurement of the condition of track substructure layers by providing information on the fouling condition of the ballast, the subsurface moisture condition, and the layer thickness and configuration of the bottom of ballast layer and the top of subgrade. Additional right-of-way information from lidar scanning, precisely aligned to GPR and track geometry information, provides an even more complete picture of the health of the line. Integrating disparate information and providing an intuitive visualization of the combined information, is very useful for track maintenance management and renewal planning.”

Nordco, a Wabtec Company Wabtec acquired Nordco earlier this year.

“It gives us the opportunity to leverage the expertise within the Wabtec family and the technologies that they’ve developed over the years,” says Bruce Boczkiewicz, Nordco Vice President, who notes that the combination will also speed product development.

Safety, productivity and equipment reliability are key for railroads, notes Boczkiewicz. Over the past few years, Nordco has been working on making rail flaw detection easier for operators, he tells Railway Age. “We continuously look at ways to automate processes.” Getting the same amount (or more) work done in a shorter amount of time is important. Ultrasonics is the basis for Nordco’s rail flaw detection system.

Data, too, is important to help railroads understand Example of integrated Geometry, GPR and LIDAR data not only the operations being in Railroad Doctor view. performed, but also how and the TPX (Tie Exchanger), which is machines are operating, and when they will need maintenance, fuel or expected to be in full production in 2022.

What’s next? The company is keeping an battery recharging, for instance, Boczkieeye on the market to “see what’s the best wicz says.

Among the company’s newest products way to deploy products going forward,” are the PCT (Production Chase Tamper) Boczkiewicz reports.

Driving velocity in the rail industry.

TRACK MAINTENANCE

Loram Technologies Inc.

RAIL CAR MOVING

RAIL INSPECTION

railwayage.com

June 2021 // Railway Age 35

M/W Focus geometry systems on tampers, allowing geometry car-level data to be sent to the cloud for back-end analysis and work validation.

Digital Solutions is currently working on multiple multinational projects: manufacturing measuring cars for Indonesia, Taiwan, Malaysia and Myanmar; performing measuring system upgrades for clients in the Netherlands, Czechia and Austria; and developing an autonomous geometry solution for Japan.

Plasser’s R&D efforts are focused on autonomous systems as well as lower-cost solutions that can be mounted on a variety of revenue service trains or track geometry equipment.

Plasser American Today’s customers want precise, cost-effective solutions to safely and effectively manage their networks, Plasser American tells Railway Age, and increasing measurement frequency is a must. “This is driving the need to measure track from vehicles besides geometry cars,” Plasser says, noting that autonomous track

geometry measurement during revenue service is among the ways to achieve this.

Customers are also increasingly interested in high-resolution video. Plasser now offers a 360-degree camera that can record an entire rail corridor. Its Digital Solutions Business Unit has also partnered with the Plasser Machine Group to upgrade the IMU-based

ENDURING. DRIVEN. VISIONARY.

Reaching the century mark isn’t easy – you have to be quality-driven, client-focused, and have a vision for the future. At 100 years, STV is looking ahead. Our planners, architects, engineers and program and construction managers are committed to quality performance.

We provide personal attention and timely solutions, with an eye toward sustainability. And with more than 40 offices, we are a local firm with national resources.

When it comes to getting your project delivered right, choose the firm that has the drive and vision to be the best.

www.stvinc.com

engineering • architecture • planning • construction management 36 Railway Age // June 2021

Railmetrics “Our customers are looking for multifunctional and autonomous railway inspection solutions to replace single-purpose, manned measurement and imaging systems,” according to Railmetrics. “We are seeing clients integrate our LRAIL [Laser Rail Inspection System] technology into their testing platforms as a way of providing an all-in-one, single-pass inspection solution that does not require onboard staff and that provides 3D imaging and inspection of their fasteners, crossties, ballast, joints, tie plates and more.”

One of the company’s current R&D projects is a collaborative effort with RailTEC at the University of Illinois. Funded by the Federal Railroad Administration, the project’s aim is to develop and field deploy AI (artificial intelligence)-based Change Detection technology. “This new approach to railway inspection shifts the focus from late-stage defect finding to the early detection of subtle changes in track conditions, which will impact future safety if left unchecked,” according to Railmetrics.

RailWorks RailWorks, which offers track geometry services via its Maintenance of Way (MOW) division, has seen a steady uptick in demand across customers in North America, according to the company. Combined, its contactbased testing systems and laser-profile gauge services “provide an accurate snapshot of the state of the rail,” RT Swindall, Vice President, MOW, tells Railway Age. “We work hand-in-hand with our customers to customize a package of MOW services to help enable continuous and smooth rail operations,” Swindall says. railwayage.com

Railmetrics

Among the outputs of Railmetrics’ LRAIL inspection process are 3D elevations, geo databases, rail geometry, tie grading, and fastener and anchor inspection.

People BRIAN E. GORTON

Conrail Shared Assets LLC HIGH PROFILE: Brian E. Gorton, who began his ca-

reer in 1987 as a Conrail conductor, has returned to his “home railroad” as President and Chief Operating Officer. He succeeds Timothy C. Tierney, who is retiring after nearly 43 years in the railroad industry.

Gorton advanced to Assistant Terminal Superintendent before departing “Big Conrail” in 1998, prior to CSX and Norfolk Southern splitting it up 58%/42%. (Conrail then transitioned to Conrail Shared Assets LLC, a neutral terminal and switching service provider for co-owners CSX and NS operating in Detroit, Southern New Jersey/Philadelphia and Northern New Jersey.

Conrail also serves shippers and receivers located within its operating territories.)

Gorton went to the Union Pacific, where he served in various capacities within the Transportation department. Most recently, he was the General Manager of UP’s Houston and Gulf Coast Service Units. He was responsible for all aspects of rail operations for a territory that encompassed more than 2,000 track-miles and close to 1,000 employees.

Tim Tierney “served as a strong leader for Conrail,” the railroad said. “He was able to guide the company through the difficult circumstances of the COVID-19 pandemic and also oversaw the successful implementation of PTC during his tenure.” Before being appointed President and Chief Operating officer in 2017 (succeeding Ron Batory, who went on to become Federal Railroad Administrator), Tierney worked in various positions of increasing responsibility within the Engineering department, including Division Engineer of the Buffalo, Albany and Philadelphia divisions. He became Chief Engineer in 1999 at the time of the NS/CSX acquisition. He joined Conrail in 1978.

“Brian has worked in the industry from the ground level up and has proven himself to be a leader with an exceptional commitment to hard work and safety,” said Tierney.

“He brings a wealth of knowledge and experience in the rail industry and will continue to accelerate Conrail’s commitment to our core values of prioritizing people first and providing safe and efficient service. I am confident that Conrail is in good hands.”

“I would like to thank Tim for his 43 years of dedicated service and the positive impact he has made on the railroad industry,” said Gorton. “His contribution to the success of Conrail before and after Shared Assets is unmeasurable. I wish him a long and happy retirement, which he has so honorably earned.”

M

ichelle Jeng will join North Carolina Railroad Co. (NCRR) as Chief Financial Officer on June 21. With more than 20 years of finance experience, Jeng served most recently as CFO of Southwest Ohio Regional Transit Authority in Cincinnati, where she oversaw a $155 million annual budget and was responsible for financial performance, portfolio management, and the integration of finance and operations. “We are excited that Michelle is joining the NCRR team,” President and CEO Carl Warren said. “She brings a wealth of experience ranging from railwayage.com

financial strategy to leadership.”

Carolyn Gonot will return to California’s Santa Clara Valley Transportation Authority (VTA) on July 12—this time serving as General Manager and CEO. She takes over from VTA General Counsel Evelynn Tran, who was interim chief executive after Nuria Fernandez stepped down in January to become Acting Administrator of the Federal Transit Administration (FTA). Before joining Utah Transit Authority (UTA) in August 2019 as Executive Director, Gonot worked for 23 years at VTA, holding multiple leadership positions, including Chief Engineering and

Program Delivery Officer; Chief BART (Bay Area Rapid Transit) Program Officer; Chief Development Officer; and Deputy Director, Congestion Management Program. Gonot is the first woman to lead UTA, where she currently directs and administers a district that spans six counties with an operating budget of $336 million and a capital budget of $255 million. She leads a workforce of more than 2,500 employees and is responsible for the operation of three light rail lines, FrontRunner commuter rail, a streetcar line, 120-plus bus routes, two bus rapid transit routes, ski buses, paratransit, Flex (route-deviation) service, and vanpools. At VTA, Gonot will be responsible for 2,100 employees and for delivering projects, programs and transit services (light rail, bus and paratransit) for more than 2 million people in Santa Clara County.

Vancouver’s TransLink has appointed Kevin Quinn CEO, effective July 19. He will succeed Gigi Chen-Kuo, who has been serving as interim CEO since February 2021, when Kevin Desmond resigned following five years of service. Quinn is currently Administrator and CEO of Maryland Transit Administration (MTA), a role he has held since 2017. He has focused on customer experience and employee engagement; overseen the development of customer-facing real-time tracking technology for local bus and commuter rail service; and introduced the agency’s first mobile payment app, CharmPass. Previously, he served as MTA’s Director of Planning and Programming. Quinn also has private-sector experience, as the Mid-Atlantic Transportation Planning and Policy Manager for STV Inc. in Baltimore, Md. John O’Bryan has been appointed CEO of A. Stucki Co. He succeeds interim CEO David Brown, who will continue to serve as CFO of Stucki, a subsidiary of Stone Canyon Industries Holdings LLC. Brown took over the role from Bill Kiefer, who announced his retirement on March 31. Kiefer remains on Stucki’s Board of Directors. For more than 20 years, O’Bryan has helped lead private and publicly traded rail companies, and most recently supported the purchase and integration of ARI Manufacturing by The Greenbrier Companies, and had served as President and CEO of American Railcar Industries. Previously, he was President and CEO of American Railcar Leasing and President of Mitsui Rail Capital.

June 2021 // Railway Age 37

EQUIPMENT SALE/LEASING

RECRUITMENT EDNA A. RICE, EXECUTIVE RECRUITER, INC. The world’s most accomplished executive search firm specializing in the rail and transportation industries. With 31 years’ experience, we possess the industry-specific knowledge and expertise needed to consistently deliver the exceptional results one would expect for both our clients and our candidates.

MARKETPLACE SALES

1500 Marina Bay Drive, Suite 125 (713) 667-0406 Clear Lake Shores, TX 77565 www.ednarice.com info@ednarice.com

JENNIFER IZZO P: 203-604-1744 F: 203-857-0296 jizzo@mediapeople.com

WE ARE YOUR WHO LEADING THE FUTURE OF RAIL INDUSTRY EXECUTIVE SEARCH (773) 899-1650 Merritt@MeritusExecutiveSearch.com www.MeritusExecutiveSearch.com

ALL MAJOR CREDIT CARDS ACCEPTED

AILWAY GE ARE YOU A RAILROAD OR SUPPLIER SEARCHING FOR JOB CANDIDATES?

Visit http://bit.ly/railjobs 38 Railway Age // June 2021

To place a job posting, contact: Jennifer Izzo 203-604-1744 jizzo@mediapeople.com

railwayage.com

Ad Index COMPANY AITX ANDERSONS RAIL GROUP THE APEX RAIL AUTOMATION

URL/EMAIL ADDRESS

PAGE #

800-489-9888

AITX.com

C2

419-891-6386

RailSales@andersonsinc.com

19

PHONE #

FAX #

26

530 -272-8194

CIT

212-461-5781

212-461-5632

James.Spencer@cit.com

13

DANELLA RENTAL SYSTEMS, INC.

561-743-7373

561-743-1973

SBolte@danella.com

29

DAVID J JOSEPH COMPANY

513-419-6200

513-419-6221

txs@djj.com

11

ENSCO

703-321-4515

dick.matthews@ensco.com

34

HERZOG

816-385-8233

jhansen@herzog.com

31

sales@hollandco.com

33

HOLLAND LP

708-672-2300

INFINITY TRANSPORTATION

678-904-6300

infinitygafg,com

21

MUL RAILCAR

703-287-7400

dcarlson@kcsouthern.com

16

kmathesius@nordco.com

35

708-672-0119

NORDCO

414-766-2180

414-766-2379

PANDROL USA, L.P

800-221-CLIP

856-467-2994

PLASSER AMERICAN CORP

757-543-3526

757-494-7186

plasseramerican@plausa.com

3

PROGRESS RAIL A CATERPILLER CO

256-505-6402

256-505-6051

info@progressrail.com

20

RAILSOLUTIONS, INC.

757-903-4606

757-903-4705

jhusband@railsolutionsinc.com

14

RAILWAY EDUCATIONAL BUREAU

402-346-4300

402-346-1783

bbrundige@sb-reb.com

9,28

RELAM INC

262-939-8129

440-439-9399

cnielsen@relaminc.com

15

SMBC RAIL SERVICES LLC

312-559-4800

888-RAILCAR

sales@smbcrail.com

18

STV GROUP

212-777-4400

212-529-5237

info@stvinc.com

36

TCIX

918-495-3500

leasing@tcixrail.com

C3

TRAINYARD TECH LLC

724-443-8881

cra2@zooninternet.net

27

rail.trimble.com/rail@trimble.com

17

trinityrail.com

C4

TRIMBLE

TRINITY RAIL

678-597-3156 800-631-4420

678-597-0156

32

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

June 2021 // Railway Age 39

Perspective: ASLRRA

Congress Needs to Move Forward, Together

I

t is a hopeful sign of the times. This month, ASLRRA is holding our two regional meetings in person—the Central and Pacific Meeting on June 7-9 in Kansas City, and the Eastern and Southern Meeting on June 21-23 in Louisville, in conjunction with the General Counsel Symposium. More than 400 individuals have already registered for the meetings, and we’ve already exceeded expected registrations and sponsorship for both meetings, which is a welcome indication of growing confidence that life is getting back to normal. Railroaders are ready to go!

In May, I was one of four witnesses fortunate enough to testify before the Senate Commerce Committee Subcommittee on Surface Transportation as it began work on surface transportation legislation. In another hopeful sign, the hearing was held face-to-face in the Committee room, and I am taking it as a good omen that my first in-person appearance in Congress in more than a year was to present the short line industry’s case for a robust infrastructure package with beneficial policies.

The economic and environmental benefits inherent in rail transportation are significant and well-documented.

At this Senate hearing, and at a similar hearing in March before the House Transportation and Infrastructure Committee, we offered legislators a series of suggestions for the surface transportation bill that will enable short lines to maximize those benefits for the country.

We strongly support the CRISI (Consolidated Rail Infrastructure and Safety Improvements) grant program as it is the primary grant program that supports short lines and provides for direct short line eligibility. The funding level should be increased, and there should be no large new commuter rail or other megaproject set-asides that squeeze out short line participation.

We support the INFRA (Infrastructure For Rebuilding America) grant program, or a successor program such as Projects of National and Regional Significance, as proposed in H.R. 2 in 2020. There is 40 Railway Age // June 2021

value in this merit-based discretionary grant program open to multiple modes of transportation, and we offer changes that would benefit short lines, including fully removing or significantly increasing the $500 million cap on non-highway portions of the multi-modal freight projects, and increasing the 10% limit on small projects.

Short lines should be directly eligible applicants for project grants, as is the case for CRISI. Programs only open to local units of government require short lines to create unnecessarily complex applicant structures. As long as a rigorous costbenefit analysis is required, the applicant’s entity should not matter.

As was done in various versions of proposed infrastructure packages in 2020, the National Highway Freight Program should become more multi-modal and raise or eliminate the non-highway cap so that the program can become a source of funds for State DOTs to support freight rail projects if they choose.

On the policy and regulatory front, we urge Congress to refrain from implementing rules that threaten the economics of short line railroading, including increasing truck size and weight limits, mandating freight train crew sizes, banning the transportation of liquefied natural gas, and implementing arbitrary and unworkable blocked-crossing timetables.

In another hopeful sign of the times, it is evident that the transportation industry is ready to work together to move forward, and we are counting on Congress to take the same approach. Among the four witnesses at this hearing was Chris Spear, President and CEO of the American Trucking Associations. Trucks and short lines are intensely competitive. As Spear said, “We here testifying have no problem identifying issues of differences.”

But interestingly, each of our presentations ended with similar pleas for Congress to put partisanship aside and get on with the task of getting the job done.

In my words: “Government works when you work hard at working it out.”

In Spear’s words: “Stop blaming each other for the things you don’t do and start

taking credit for the things you should do.” Those are the sentiments of truckers and railroaders and most likely the majority of American workers. It should be the path forward for this important piece of legislation.

As readers of this column will note, this is the first time in many years that the short line industry’s primary legislative objective was not the extension of the short line rehabilitation tax credit (45G).

That is because we finally secured permanency for the credit at the end of 2020.

Enacting, extending and finally making 45G permanent was a 15-plus-yearlong march made successful by the tireless participation of hundreds of our short line members.

That effort has always been led by our Legislative Policy Committee (LPC), which is currently chaired by Genesee & Wyoming’s Jerry Vest. Jerry joined the LPC in 2006 and has served as its Chairman since 2014. He is now stepping down from the LPC Chairmanship, and a new LPC Chairman will be selected at our June Regional Meeting in Louisville.

Like his predecessors in that position, Jerry was a leader in defining objectives, developing strategy, implementing tactics and motivating a huge volunteer army of short line industry representatives. He pursued this objective with the tireless perseverance and laser-like focus that are essential ingredients for legislative success. We are grateful for the commitment he made to an endeavor that has done so much to preserve and enhance short line railroad infrastructure across the country.

Thank you, Jerry.

Here’s hoping we see many of you at one of our in-person meetings this June!

CHUCK BAKER President ASLRRA

railwayage.com

Railcar leasing made simple.

Our 36-year history of railcar ownership/leasing and logistics management services provides customers with value added and cost effective solutions.

LEASING

CLEANING

STORAGE

Call today to request a quote.

918.495.3500 WWW.TCIXRAIL.COM

WHEN YOUR BUSINESS RELIES ON RAIL, RELY ON US. TrinityRail® is North America’s leading railcar equipment and services provider. With a comprehensive platform of leasing, manufacturing, maintenance and professional services, you can rely on TrinityRail to fully deliver trusted expertise, innovative solutions and supply chain optimization. Learn more at TrinityRail.com.