Railway Age November 2018

NOVEM B ER 2 0 1 8

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

A FAILURE

OF PUBLIC ENTERPRISE? WOMEN IN RAIL

Changing the industry’s face, one step at a time

BOLD MOVE AT BRAZOS

UP’s high-tech class yard railwayage.com

August 2017 // Railway Age 1

©2018 Loram Maintenance of Way, Inc.

True productivity. It’s the promise of the Loram UC1200 and Track Lifter Undercutter–the rail industry’s only 100% self-contained and most capable undercutters. Our patented dual cutting wheel design sets up faster without the need for auxiliary equipment, gets straight to work and handles all types of track contamination for maximum ROI – eliminating backhoes and additional support equipment costs. Your railway can profit from a solid foundation of proper maintenance with Loram, the global leader in maintenance of way services and equipment. Loram.com

Rail Grinding | Ballast Maintainance | Friction Management Material Handling | OEM | Geotechnical Services SPEED PERFORMANCE RELIABILITY

AILWAY GE

NOVEMBER 2018

16

FEATURES

16

Intercity Rail: Amtrak

22

Women in Rail

28 30 32 36

Crafting a new business model.

Leadership, recognized.

NEC stations transformed Women lead VHB’s projects.

Class I Focus: NS New operations for a new era.

Traffic Management In Texas, UP bets big on Brazos.

Bettering Ballast Rail’s bedrock goes high-tech.

DEPARTMENTS 4 6 8 42 42 42 44 46 46 46

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

NEWS/COLUMNS 2 10 14 15 48

From the Editor Update Watching Washington Financial Edge Perspective On the Cover: Amtrak’s survival requires a new strategic approach.

Photo: William Beecher

Railway Age, USPS 449-130, is published monthly by the Simmons-Boardman Publishing Corporation, 55 Broad St., 26th Fl., New York, NY 10004. Tel. (212) 620-7200; FAX (212) 633-1863. Vol. 219, No. 11. Subscriptions: Railway Age is sent without obligation to professionals working in the railroad industry in the United States, Canada, and Mexico. However, the publisher reserves the right to limit the number of copies. Subscriptions should be requested on company letterhead. Subscription pricing to others for Print and/or Digital versions: $100.00 per year/$151.00 for two years in the U.S., Canada, and Mexico; $139.00 per year/$197.00 for two years, foreign. Single Copies: $36.00 per copy in the U.S., Canada, and Mexico/$128.00 foreign All subscriptions payable in advance. COPYRIGHT© 2016 Simmons-Boardman Publishing Corporation. All rights reserved. Contents may not be reproduced without permission. For reprint information contact PARS International Corp., 102 W. 38th Street, 6th floor, New York, N.Y. 10018, Tel.: 212-221-9595; Fax: 212-221-9195. 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

November 2018 // Railway Age 1

FROM THE EDITOR

AILWAY GE Subscriptions: 800-895-4389

Cloud-based Railroading

S

aint Peter had just completed first-trick duty at Pearly Gates Yard when he decided to drop by Heaven’s Stables and visit with E. Hunter Harrison.

“Hey, Hunter, there’s something going on down below on Earth that I think you’d like to see,” said Saint Peter, who since Hunter had arrived had been sitting in on the mighty railroading legend’s Precision Spiritual Railroading lectures.

“No, I ain’t interested in that earthly stuff no more,” said EHH with a hearty laugh. “I got better things to do with my eternity. Tomorrow, I’ve got a golf foursome with the Three Bills on Arnie Palmer’s new course.”

“The three Bills? Is one of them that hedge fund guy? He’s not scheduled to arrive here for a long time, and we’re still looking at whether he’s going to need some rehab time in Purgatory. The boss has high hopes for him. He’s basically a good guy, but he’s overly preoccupied with money.

Unlike you, my friend. You made tons of that stuff, but your true motivation was running a better railroad, and you also did a lot of teaching and coaching. The boss says you could have been a great preacher.”

“Thanks, but no, it’s the Three Railroad Bills: Vanderbilt, Van Horne and Brosnan.

After that, we’re goin’ to see Elvis sing and play acoustic guitar. After that, Fidel Castro is dropping by with some fresh Cuban cigars, Havanas. He was just released from

Purgatory. Did him some good.”

“Listen, I think you’d be really pleased.

How about if I open a window on North America for just a few minutes?”

“OK, Pete, whatever you say. Can’t hurt, I suppose.”

“Here, take a close look. Zero in on Omaha and Norfolk.”

“Well, I’ll be damned! Ooops! Sorry! I meant to say Holy—uh, never mind. Geez, that looks like Precision Scheduled Railroading! You think those folks got that idea from me? You think they were really paying attention?”

“Of course they were paying attention.

Did you expect anything less?”

“Well, that does make me feel pretty good. But I wonder, that makes five out of them Big Seven Class I’s usin’ PSR. What’s with the other two? Are they waitin’ for a merger or somethin’? In fact, when’s that gonna happen? You know, two transcontinentals and a whole bunch of them shared assets areas spread around, very successful, keepin’ the customers and the regulators happy, like Little Conrail does.”

“Don’t say Little Conrail. You know Stan Crane doesn’t like that. Well, no matter, Hunter. I have a feeling you just might see that two-railroad system come to pass. The stars seem to be aligning.”

“Ha, you oughta’ know! Keep me posted, OK? Just don’t interrupt my golf games.”

WILLIAM C. VANTUONO Editor-in-Chief

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

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 // November 2018

Editorial and Executive Offices Simmons-Boardman Publishing Corp.

55 Broad Street, 26th Fl. New York, NY 10004 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 STUART CHIRLS Senior Editor schirls@sbpub.com Contributing Editors: Roy H. Blanchard, Jim Blaze, Alfred E. Fazio, Bruce E. Kelly, Ron Lindsey, Ryan McWilliams, David Nahass, Jason H. Seidl, David Thomas, John Thompson, Frank N. Wilner Art Director: Nicole D’Antona Graphic Designer: Aleza Leinwand Corporate Production Director: Mary Conyers Digital Ad Operations Associate: Kevin Fuhrmann Production Director: Eduardo Castaner Marketing Director: Erica Hayes Conference Director: Michelle Zolkos Circulation Director: Maureen Cooney Western Offices 20 South Clark Street, Suite 1910, Chicago, IL 60603 312-683-0130; Fax: 312-683-0131 Engineering Editor: Mischa Wanek-Libman mischa@sbpub.com Assistant Editor: Kyra Senese ksenese@sbpub.com International Offices 46 Killigrew Street, Falmouth, Cornwall TR11 3PP, United Kingdom Telephone: 011-44-1326-313945 Fax: 011-44-1326-211576 International Editors: David Briginshaw, db@railjournal.co.uk Keith Barrow, kb@railjournal.co.uk Kevin Smith, ks@railjournal.co.uk David Burroughs, dburroughs@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

SIMMONS-BOARDMAN PUBLISHING CORPORATION

railwayage.com

Everything we do is

Engineered to Outperform.

From our control valve that preserves 85% of the brake force lost to brake cylinder leakage and keeps cars running longer; to our Electronic Brake Valve, that’s installed on over 95% of heavy-haul locomotives and sets the standard for reliability; to our train handling system that reduces fuel consumption by up to 16% and runs longer trains; to an air compressor that lasts 8 years without overhauls and uses no oil…

New York Air Brake has a proven track record of innovating train control solutions that help heavy-haul railroads run smarter, safer and more profitably.

To calculate our total value is to also account for countless intangible benefits we deliver to our customers. Whether it’s the responsiveness and knowledge of our field service experts. Speedy shipments and a vast inventory of the parts

Products (clockwise from top left): Oil-Free Compressor, LEADER® Train Handling System, Electronic Brake Valve / CCB II, DB-60 II™ Control Valve with BCM™

you need at our centrally located Kansas service center. Or the reliability and operational excellence of our precision manufacturing and lean logistics systems.

Looking to align your operation with a train control company that delivers industryleading technology and support?

Talk to us. We’ll listen. 315.786.5200 or www.nyab.com

E₂O : Engineered to Outperform

Industry Indicators Coal Still A Factor As Intermodal Racks Up Record Volume Despite weakness in some commodities, September rail traffic tracked solid economic fundamentals such as industrial output and consumer spending, the AAR said. U.S. carloads posted their seventh straight year-over-year increase. Crushed stone, sand and gravel saw their first on-year decline in 21 months as oilfield demand drives deliveries of frac sand by truck from local sources. Coal, despite a 1.0% slide through September, still accounts for 32% of carloads in 2018. Intermodal volume surged 6.2%, its 20th straight monthly increase. The last two weeks of September 2018 were the two highest-volume U.S. intermodal weeks in history.

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

TRAFFIC ORIGINATED CARLOADS

MAJOR U.S. RAILROADS

by Commodity

Total employees: 148,171 % change from SEPT. 2017: 1.02%

Transportation (train and engine) 62,641 (4.61%)

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

Executives, Officials, and Staff Assistants 8,414 (-0.98%)

CANADIAN RAILROADS

Professional and Administrative 11,852 (-4.37%)

COMBINED U.S./CANADA RR

Maintenance-of-Way and Structures 32,493 (-2.96%) Maintenance of Equipment and Stores 27,109 (-1.38%) Transportation (other than train & engine) 5,662 (4.61%) Source: Surface Transportation Board

groupthink targets more job cuts Just when you thought it was safe to go back to the railroad… The news that Union Pacific was adopting a Precision Scheduled Railroad operating plan was a shock to the industry and marked the end of what was an extended period of stable employment levels among Class I’s. Norfolk Southern executives said they also will roll out a PSR plan in 2019, meaning five out the seven North American Class I’s have hitched their trains to Hunter Harrison’s lean and mean ops scheme.

4 Railway Age // November 2018

FOUR WEEKS ENDING SEPT. 29, 2018

total carloads

Intermodal

SEPT. ’18

SEPT. ’17

% CHANGE

86,457 3,154 36,921 24,980 126,895 50,255 348,363 4,229 13,708 23,105 26,809 16,952 38,690 15,060 65,370 97,433 16,019 32,214 20,528 24,358

81,456 3,592 34,320 23,489 121,750 35,505 353,925 4,676 13,067 22,397 26,448 16,580 36,715 15,783 66,247 100,475 15,824 31,491 19,686 21,337

6.1% 3.9% 7.6% 6.3% 4.2% 41.5% -1.6% -9.6% 4.9% 3.2% 1.4% 2.2% 5.4% -4.6% -1.3% -3.0% 1.2% 2.3% 4.3% 14.2%

1,066,826

1,040,000

2.6%

339,317

334,108

1.6%

1,406,143

1,374,108

2.3%

four WEEKS ENDING SEPT. 29, 2018

MAJOR U.S. RAILROADS

by Commodity

SEPT. ’18

SEPT. ’17

% CHANGE

102,208 1,025,177 1,127,385

88,715 972,869 1,061,584

15.2% 5.4% 6.2%

0 289,273 361,744

4,384 276,582 352,358

-100% 4.6% 2.7%

Trailers Containers

102,208 1,314,450

93,099 1,249,451

9.8% 5.2%

TOTAL COMBINED UNITS

1,416,658

1,342,550

5.5%

Trailers Containers TOTAL UNITS

CANADIAN RAILROADS Trailers Containers TOTAL UNITS

COMBINED U.S./CANADA RR

Source: Rail Time Indicators, Association of American Railroads

railwayage.com

TOTAL U.S./CANADIAN CARLOADS, sept. 2018 VS. sepT. 2017

1,406,143 SEPTEMBER 2018

AILWAY GE

1,374,108 SEPTEMBER 2017

Short Line And Regional Traffic Index CARLOADS

by Commodity

ORIGINATED SEPT. ’18

ORIGINATED SEPT. ’17

% CHANGE

50,021 21,050 28,828 10,330 23,901 6,420 8,919 2,890 18,785 10,395 1,887 2,096 17,970 13,485 47,535 9,172 77,350

43,393 24,022 29,302 10,336 22,238 6,196 8,914 2,850 16,508 10,874 1,917 2,031 16,169 13,320 39,731 9,325 80,324

-3.7% -12.4% -1.6% -0.1% 7.5% 3.6% 0.1% 1.4% 13.8% -4.4% -1.6% 3.2% 11.1% 1.2% 19.6% -1.6% -3.7%

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

Copyright © 2018 All rights reserved.

average weekly U.S. Rail Carloads: all commodities (not seasonally adjusted) 280,000 2018

270,000 260,000

ARE YOU A RAILROAD OR SUPPLIER SEARCHING FOR JOB CANDIDATES?

250,000 2017

240,000

2016

230,000 220,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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

railwayage.com

Visit http://bit.ly/railjobs To place a job posting, contact: Jeanine Acquart 212-620-7211 jacquart@sbpub.com

November 2018 // Railway Age 5 RA_JobBoard_1/3Vertical.indd 1

8/17/17 10:59 AM

Industry Outlook Hitachi Moves Toward 100% of Ansaldo STS

Texas Central, Spain’s Renfe Sign Bullet Train Operating Agreement Texas Central and Renfe in October signed an agreement that formalizes the relationship of the Spanish train operator as the Texas high-speed train project’s operator.

“The agreement helps solidify Texas Central’s team, made up of the industry’s leading subject matter experts,” Texas Central said in a statement. “With its decades of expertise, Renfe was a natural fit to join Texas Central’s other partners. Having the operator, the design-build and technology teams all on board will ensure all aspects of the railroad are integrated and efficient. The combination of these best-in-class global experts sets the foundation for the new jobscreating industry Texas Central is bringing to the U.S.” Other Texas Central partners include Salini Impregilo, along with its U.S.-based subsidiary The Lane Construction Corp., which will oversee the civil construction consortium that will build the passenger line. San Francisco-based Bechtel, which has an office in Houston, will serve as project manager, supporting Texas Central as the project moves from development to full implementation.

6 Railway Age // November 2018

“By partnering with the best, most experienced firms in the world, Texas Central is ensuring that the new American high-speed train industry being created in Texas is leveraging the best experience and technology available worldwide,” the company said. “It will meet the demands of the fast-growing state, providing a safe, reliable and productive traveler experience.”

The 200-mph high-speed train connecting North Texas, the Brazos Valley and Houston will use the Japanese Shinkansen system. “This technology has resulted in the world’s safest system,” said Texas Central. “In 54 years, the Shinkansen has had no crashes or fatalities from operations. Trains will make the trip in 90 minutes, linking two of the most dynamic economic centers in the U.S. Texas Central’s market-led approach is backed by investors, not government grants, making it an innovative new business model for infrastructure projects.”

Texas Central is currently refining and updating construction planning and sequencing, guided by the Federal Railroad Administration’s recently-released draft environmental impact statement for the 242-mile project.

Japan’s Hitachi Group has reached an agreement with Paul Singer-led hedge fund Elliott to purchase the investment group’s 31.8% stake in Italy’s Ansaldo STS for €807.8 million ($919.7 million), or $14.46 per share—another step in its plan to own 100% of the company founded by George Westinghouse as Union Switch & Signal in 1881.

The transaction will take Hitachi’s stake in Ansaldo STS to 82.6%. The company will launch a voluntary tender offer at the same price for the remaining 17.4% of the shares. Once secured, Hitachi plans to delist the company from the NASDAQ. Elliott rejected Hitachi’s offer to buy its stake in the Italian company in 2015, judging the $10.82 share offer as too low, frustrating the Japanese firm’s desire to take full control. The two companies have since been at loggerheads, with Elliott complaining about Ansaldo STS’s strategy and governance since the Hitachi takeover.

Westinghouse founded Union Switch & Signal in 1881, consolidating the assets of the Union Electric Signal Company (founded by track circuit inventor William Robinson) and the Interlocking Switch & Signal Company (which had pioneered interlockings).

In 1925, US&S acquired the Hall Signal Company, primarily to obtain the latter company’s patents for railroad searchlight signals.

US&S operated as an independent company until 1917, when it became a subsidiary of the Westinghouse Air Brake Company (WABCO). In 1968, American Standard purchased WABCO and reorganized US&S as a separate division. In 1988, Ansaldo purchased US&S from American Standard. In November 1993, US&S became a publicly traded company with shares listed on the NASDAQ. In December 1996, US&S merged with Ansaldo’s other signal investments. railwayage.com

THE NEWS DESTINATION FOR THE RAIL INDUSTRY

New Website Featuring: Breaking News Daily

Thousands of articles covering the rail industry

Mobile-friendly

Responsive across devices

Optimized Navigation

Easier to explore related content

Improved Search

Enhanced search capabilities

Industry Opinion & Resources

Expert analysis from industry leaders and vital rail resources

AILWAY GE

www.railwayage.com

Market Thales introduces SelTrac™ G7 to North America Thales Canada Transport Solutions introduced SelTrac™G7, the seventh generation of its service-proven CBTC system, to the North American market at the Railway Age/Parsons Next-Generation Train Control Conference in Philadelphia. SelTrac™G7 was developed in North America at the Thales Global Centre of Competence in Toronto.

Among the new features is the ability to provide 60-second headways, depending upon the application—a 50% improvement over the 90 seconds generally regarded as state-of-the-art for current CBTC technology.

NORTH AMERICA OmniTRAX Energy Solutions and trucker 1845 Oil Field Services have formed ShaleTECH Transport with a focus on mine-to-wellhead supply chain logistics solutions. The joint venture would extend the service offerings of OES, which provides frac sand storage, transload services and a patented last-mile containerized binto-blender proppant delivery solution.

Short line railroad holding company Ironhorse Resources, Inc., has acquired

Arizona-based San Pedro & Southwestern Railroad (SPSR). RR Mergers & Acquisitions, a specialist in the sale of rail sector companies, brokered the deal. SPSR will be renamed the San Pedro Valley Railroad (SPVR).

Light rail leads $2.7 billion in expansion projects unanimously approved by Atlanta’s MARTA board of directors. A half-penny tax increase approved by voters in 2016 will fund the improvements. The plan for 17 projects, under development for two years, includes 22 miles of light rail, including a late addition of $200 million for the BeltLine light rail system.

The American Short Line and Regional Railroad Association (ASLRRA) has selected Rockwell Collins to assist tenant short lines in creating safety-related documentation required to obtain permission to operate over a host railroad’s Positive Train Control (PTC)-equipped territory.

Growing freight traffic has led Iowa Interstate Railroad to order three new Evolution™ Series locomotives from GE Transportation, for delivery in early 2020.

8 Railway Age // November 2018

The regional railroad said the power is needed to move increasing volumes of grain, ethanol, metals and other commodities between Chicago and Omaha.

PFL has formed a new mobile railcar cleaning and repair company that also provides mobile scrapping services. PFL Field Services provides turnkey mobile cleaning and repair anywhere in North America for all different car types and commodities. The company also offers field inspection services for car owners, lessors and lessees. PFL also performs mobile cleaning and scrap services

WORLDWIDE Bentley Systems launched OpenSite Designer, a built-for-purpose application for the design and construction of civil site projects. It also launched OpenBuildings, bringing together its AECOsim building design and Speedikon factory and industrial design applications, and announced the availability of OpenBuildings Station Designer, a specialized application for designing commuter/intercity rail and metro stations. railwayage.com

NE TGEN R A I L W AY A G E P R E S E N T S

FREIGHT RAIL

Beyond Track. Beyond Trains.

#NGFR19

WHERE IS THE GROWTH IN FREIGHT RAIL? DISCUSSIONS INCLUDE: • How digital access is transforming the supply chain • Class I’s: Investing in industrial development is good for business • Blockchain & the future of freight rail • First & last mile: Short lines show the way on freight • Intermodal & the container port arms race

MAR. 12, 2019

Union League Club of Chicago

EXHIBITS & SPONSORSHIPS AVAILABLE 212.620.7224 | Jchalon@sbpub.com

REGISTER NOW www.railwayage.com/ngfr | 212.620.7205 | conferences@sbpub.com

Update

Tank car

building surge coming

A

n estimated 64,000 DOT117J (new) and DOT117R (retrofit) tank cars will be produced over the 2019-2022 time frame as confidence grows in a tank car demand resurgence, according to Cowen and Company analyst Matt Elkott.

Cowen sees Trinity, ARI (to be acquired

by ITE Rail Fund, p. 12) and Greenbrier as the main beneficiaries in a market where approximately 58,000 railcars overall will be produced in 2019, up by 2,000 units from Cowen’s previous forecast. The 64,000 tank cars will be for Class 3 flammable liquid service, which includes crude, ethanol and other petroleum products. Cowen estimates the current Class 3 flammable liquid tank car fleet to be roughly 85,000 units, and is projecting 3% annual growth in this fleet on average over the next four years, driven by Canadian and Bakken CBR (crude by rail) gains and increases in other petroleum product shipments. This accounts for about 11,000 tank cars embedded in the 64,000 estimate.

“We expect 50,000 units to come from what we believe will be an accelerated phaseout or retrofitting of older tank cars, namely the DOT111 and CPC1232,” said Elkott.

“The remaining 3,000 units represent our 10 Railway Age // November 2018

estimate for replacements of existing DOT117 tank cars due to damage or other reasons over the next four years.”

“There is no scientific way of gauging what percentage of the roughly 50,000 DOT111s and CPC1232s currently in flammable liquid service will be replaced with DOT117Js as opposed to retrofitted ones,” Elkott noted. “Some Class I railroads appear to be mandating use of the DOT117J on all new crude contracts. We believe others may allow the use of the DOT117R for certain flammables, but will impose fees.”

“We are raising our 2018 and 2019 North American railcar industry production estimates to approximately 53,000 units and 58,000 units, from approximately 52,000 and 56,000 units, respectively,” said Elkott.

“We expect tank cars as a percentage of total deliveries to increase from 20% in 2017 to 22% in 2018 and 31% in 2019. This would still be well below the peak of 55% reached in 2013 and the 52% and 44% in 2014 and 2015, respectively.

“Some customers may attempt to pull forward delivery dates on existing orders due to improving freight demand and out of concern about potential manufacturing capacity issues if the current strength continues or intensifies, something that no

longer seems like a farfetched scenario.”

For the overall railcar market, “It appears some investors may be concerned that the industry’s book-to-bill ratio may have peaked,” said Elkott. “This is likely not the case. The order momentum continues to grow. Customers are becoming concerned about tightening manufacturing capacity and rising lead times. Recent channel checks and commentaries made on earnings calls point to continued strength in inquiry and order activity. And, first-half 2019 production could be slightly tempered by line changeovers. All this points to the book-tobill ratio having more room to expand.”

tank car deliveries will represent 31% of the railcar market in 2019.” railwayage.com

NORTH AMERICA’S #1 RAILCAR SOLUTIONS PROVIDER

Integrated Railcar Solutions for all your transportation needs.

At Greenbrier, our business revolves around a proven system of tightly integrated services.

It’s a model that provides our customers with the peace of mind that their rail equipment needs will be managed meticulously for the life of their freight railcars.

FREIGHT RAILCAR MANUFACTURING REPAIR, WHEELS & PARTS SERVICES FULL-SERVICE TERM LEASING FLEET MANAGEMENT SERVICES

www.gbrx.com marketing.info@gbrx.com

Update

ITE Rail Fund Buys ARI Amid a surging market for new railcars, American Railcar Industries agreed to sell itself back to a group led by its former founder and CEO at a premium more than 50% above its mid-October share price.

Majority stakeholder Carl Icahn stands to more than quintuple the value of his original 2010 investment in ARI in the sale to ITE Rail Fund, a subsidiary of hedge fund ITE

Management L.P., for $70 per share, or 51% above ARI’s Oct. 19 closing price of $46.29.

The transaction is valued at approximately $1.75 billion, including ARI debt.

The North American railcar manufacturing sector is enjoying a surge as ARI, The Greenbrier Cos. and Trinity Industries saw second-quarter orders increase 35% on-year, to 23,788 units.

ARI, a legacy railcar builder based in Saint Charles, Mo., called it “a great result for all ARI shareholders.”

A company controlled by Icahn nearly two years ago agreed to sell ARI’s leasing arm to Mitsui Banking Corp. for $3.4 billion.

“The sale demonstrates the value this company, its employees and shareholders have created, and I would like to thank Icahn Enterprises L.P. for its support and guidance over the years,” said John O’Bryan, President and CEO of ARI. Jim Unger, a partner of ITE, said, “As one of ARI’s founders and, formerly, its President and CEO for almost 15 years, I know that ITE can work with this great organization and its people. With its current railcar lease fleet of nearly 14,000 railcars and the foundation of its manufacturing and repair businesses, we are excited about partnering with the ARI team to support continued growth of the business.”

The transaction is expected to close in the fourth quarter of 2018, subject to customary approvals.

We have the spots that put your inventory within easy reach

forward inventory positioning and car storage at four strategic Locations: Milan, TN • Middletown, IA (available Jan. 1) Chambersburg, PA • Edison, NJ Rail Enterprise Group has 8000 carspots available for forward inventory positioning, storage-in-transit, or empty car storage. We offer both long and short-term loaded (non-hazardous only) solutions to your needs. All of our railroads and interchanges are 286 capable. Each site has AAR-certified car repair facilities providing maintenance and cleaning. REG’s responsive team of professionals are available to ensure prompt interchange of rail cars, assist you with the coordination of rail deliveries, car storage, repair, and transloading services.

Maplewood, NJ 07040 Phone: (800) 21RAILS Email: gburwell@railsco.com Web: www.railsco.com 12 Railway Age // November 2018

www.railenterprisegroup.com 617-388-3446 • Eyal@railenterprisegroup.com railwayage.com

Update New Impact Study For Oregon Passenger Proposal Oregon, after years of study, has released a Draft Environmental Impact Statement for proposed passenger service upgrades between Eugene and Portland.

The plan would improve the frequency, convenience, speed and reliability of intercity passenger rail service between Eugene-Springfield to the south and the Portland urban area, part of the federally designated Pacific Northwest Rail Corridor.

The milestone DEIS released Oct. 19 by the Oregon Department of Transportation describes why the project is being proposed and the project alternatives. It examines the potential social, economic and environmental impacts of those alternatives. The two “build” alternatives were evaluated in the DEIS and both accommodate increased passenger rail service over the next 20 years.

Alternative 1 follows the existing Amtrak Cascades passenger rail route with track, signal and communication improvements.

Alternative 2 is primarily a new route

between Springfield and Oregon City along Interstate 5, an existing freight rail line and Interstate 205. It would follow the existing rail route north of Oregon City. The No Build Alternative follows the existing Amtrak route but has no additional service or improvements.

The DOT said after extensive public and agency outreach and analysis, it and the Federal Railroad Administration have identified Alternative 1 as the Preferred Alternative for the service.

The state agency is now accepting comments on the DEIS, and has scheduled five public open houses for review and comment. An online open house is slated between Nov. 28 and Dec. 18 at www.

OregonPassengerRail.org.

Following the public comment period, ODOT and FRA will select a Final Preferred Alternative and will document that decision in the Final Environmental Impact Statement (FEIS) and Record of Decision (ROD). The

ROD lays the groundwork for the possibility of expanding Oregon’s Passenger Rail Program, opening the path to future investments and expansion of service on the route.

Improved service is forecast to facilitate a near-doubling of ridership by 2035.

The state DOT and FRA anticipate publishing the Final EIS in 2019.

Keeping Technology in Motion

railwayage.com

November 2018 // Railway Age 13

Watching Washington

Amtrak’s Anderson Not A Random Choice

W

hen a 1978 labor dispute hobbled Northwest Airlines, North Dakota Gov. Arthur A. Link ventured to Minneapolis with a request of Chief Executive Donald Nyrop. Would Northwest—the lone east-west airline serving the state in the pre-deregulation era—withdraw an objection to competitor North Central temporarily providing the service?

For an hour, the governor waited patiently in a conference room. Upon entry, Nyrop pointed to the governor, saying, “That’s my chair.” Following frosty introductions, Nyrop curtly denied the request.

Such was Northwest under Nyrop, quoted that he removed restroom stall doors so employees “don’t read newspapers on my time.” Executives were tutored that the cost of a light bulb equaled the profit margin of one passenger between Chicago and Minneapolis.

From this corporate culture—albeit years following Nyrop’s retirement—emerged Northwest, and later Delta, CEO Richard H. Anderson, who as Amtrak’s president since 2017 has instituted aggressive cost cutting, targeting long-distance and excursion trains, ticket discounts, private-car operators, and on-board prepared meals. These actions infuriate Amtrak labor organizations, employees and passengers.

Especially incensed is former Amtrak President Joseph H. Boardman, who accuses Anderson of intentionally sabotaging Amtrak’s long-distance passenger network in favor of Amtrak’s Northeast Corridor (NEC) linking Washington, D.C., with Boston.

Perplexingly, Anderson, age 63,

2001 ANDERSON WAS ELEVATED

TO NORTHWEST CEO IN

14 Railway Age // November 2018

Texas-born and son of an Atchison, Topeka & Santa Fe Railway clerk, persistently rejects interview requests, declining to reveal the origin of his strategy in light of his transportation background being entirely in airline management. Notably, the Amtrak president has no vote on the board of directors, chaired

by NEC partisan Anthony R. Coscia.

Equally of note, former Amtrak President Charles “Wick” Moorman, previously Norfolk Southern’s CEO, supported Anderson’s hiring; former NS CEO David Goode was a member of Delta’s board while Anderson was Delta CEO; in 2012, when Anderson led Delta’s purchase of an NS-accessible oil refinery in Trainer, Del., Moorman and Anderson, who accepted the Amtrak job for a token salary, were chummy, and freight railroads generally view Amtrak as unwelcome on their tracks.

Backstory told, Amtrak is overripe for repair, and Anderson’s credentials accentuate expertise in mending broken business models. Amtrak must confront a reality that its subsidies are not unassailable entitlements. Trillion-dollar annual federal budget deficits, a national debt exceeding $21 trillion, and interest payments on federal debt threatening to crowd out funding for more urgent social programs such as Medicare and Social Security, require Congress make unprecedented discretionary spending cuts.

Most states are similarly cash-strapped.

Such is the trial of Richard H. Anderson, who honed a tough-guy image as a Harris County, Tex., criminal prosecutor before embarking on an airline career that included labor negotiations at Northwest, where he developed an understanding of the Railway Labor Act, which governs airline and railroad labor relations.

Anderson was elevated to Northwest CEO in 2001; departed in 2004 to guide United Healthcare, and was tapped in 2007 to lead Delta Airlines, into which Northwest had merged. The St. Paul Pioneer-Press called Anderson “a skilled negotiator and problem solver, but also capable of snap judgments.”

Although billing himself a bridge-builder with organized labor—and there is evidence of that—Anderson sued Northwest’s employee-owned credit union for using the airline’s logos, seeking $6 million in royalty

his credentials accentuate skill in mending broken business models.” payments; eliminated 17,000 Northwest jobs; demanded more than $1 billion in concessions from Northwest unions, and, at Delta, said of a flight attendants’ campaign to unionize, “We’ve seen a lot of fear and smear messages. This is how the unions do business…It’s not a Christian way to behave.”

What hasn’t been heard from the suddenly media-shy Anderson are his intentions for other Amtrak lines of business following his unilaterally imposed service degradation on multiple long-distance trains, or whether he will support alternatives to the unsustainable status quo, such as privatesector operators for long-distance routes, and other public-private partnerships.

Amtrak’s broken business model is not unlike that of legacy airlines such as Northwest and Delta, which failed financially in the face of more efficient lower-cost competition, but were mended in merger through Anderson’s tutelage.

A good start is communicating with Amtrak’s shareholders—the subsidy-providing public. If not, attention must be paid by Congress. A national interconnected rail passenger network is too valuable a public resource for its stewardship to be shielded from the disinfectant of sunlight.

FRANK N. WILNER Contributing Editor railwayage.com

Financial Edge

Who Will Protect The French Fries?

I

n mid-September, CSX filed a report to the FRA stating that its June 2018 derailment near Princeton, Ind., (about 150 miles south of Indianapolis) was caused by buckled track. The derailment included 23 freight cars and caused the evacuation of nearby homes (within a radius of about one mile from the crash site) as a precautionary measure. Some of the derailed cars were carrying liquid petroleum gas (LPG or NGLs) and liquid propane (LP). 60,000 gallons of liquid NGLs were released. One tank railcar filled with leaking propane was on fire.

Burning propane is not harmful (explosive but not air-quality-hazardous). LPG and LP move in pressure-style tank railcars (DOT112J340s, considered a stronger design than the DOT117J crude oil car).

Billowing black smoke from the derailment was caused not from the flammable commodity but from the burning of —wait for it—French Fries loaded in some of the derailed cars. The derailment cost is estimated at $1.8 million.

Reading the CSX report confirming that the derailment was caused by buckled track was reminiscent of the BNSF derailment in Boon, Iowa (also in June 2018). In that derailment, the National Transportation Safety Board’s preliminary findings report notes the following: “FRA determined the train speed was about 48 mph when the train encountered the emergency brake application.

A total of 10 tank cars were breached, releasing about 160,000 gallons of crude oil. The area received five to seven inches

the train speed was about

forty-eigHt

MPH railwayage.com

of rain during the 48 hours prior to the accident, washing out track and f looding a tributary of the Little Rock River and farm fields adjacent to the derailment location.” (See (https://www.ntsb.gov/ investigations /AccidentReports /Pages / HMD18LR002-preliminary-report.aspx.)

What is the similarity? Track conditions causing derailments that end up leaking hazardous commodities. Yet, the industry redirects the focus of derailments from the condition of the track causing the derailment to the design of the cars operating on the track.

Since earlier this year, rail industry interests (regulatory, railroad, car owner and shipper) continue to pivot around which tank railcar should move which commodities. (See Financial Edge, August 2018; https://www. railwayage.com/regulatory/tempest-in-atank-car/.) Industry watchers are waiting for the other shoe to drop when it becomes clear that attempts to regulate car design cannot, of their own accord, prevent postderailment commodity discharge. When an explosive CBR (crude by rail) accident occurs with a DOT117J (and it is “when” and not “if,” unfortunately) what will the railroads do then? The CSX Princeton derailment shows that even pressure tank railcars are not immune to puncture or release of hazardous/ explosive commodities.

The CSX train was traveling at 38 mph, versus 48 in the BNSF derailment. However, railcar derailment damage involves not just train speed. The puncturing of a railcar during a derailment is determined by the amount of energy generated by the derailing railcars. It is primarily a function of speed and weight (the loaded railcar), and then the terrain and timing. The second car coming off the track likely causes the most damage to the first car.

How railroads and their customers perceive operational risk and its connection to railcar design is important. The idea that continually increasing the structural strength of a tank railcar’s design will prevent commodity discharge in a derailment is, for people that understand railcar design, the Emperor’s New Clothes of railcar manufacturing. This is the lesson from these two derailments. At

Track condition usually drives whether a car derails.” a difference of 10 mph, the pressure tank railcar still has a conditional release of commodity and a conf lagration.

In both cases, however, the cause of the derailment was not the railcars (tank or otherwise), but the condition of the track.

No one will argue that maintaining literally thousands of miles of track is easy. Frankly, it sounds downright impossible, but it is the central issue. There is no safe speed on flooded-out track, and there is clearly danger on a track that has been buckling.

Every train cannot move at a speed of 10 mph. This point of critical focus often withers while the spotlight is on railcars.

This is not a call for less-safe railcars. All parties agree that safer, well-maintained equipment leads to a better railroad and improved safety. This is true for crude, NGLs, chlorine and yes, even for French Fries burning on an Indiana summer afternoon. But the derailment evidence shows that, even with well-maintained cars, track condition is the circumstance that drives whether a car derails, its integrity get compromised and the French Fries get ruined.

No one wants French Fries that have been in a derailment.

DAVID NAHASS President Railroad Financial Corp.

November 2018 // Railway Age 15

AMTRAK There are snowballing reasons why Congress may be unable to sustain Amtrak, even at its current subsidy level.

16 Railway Age // November 2018

quarter-billion-dollar annual subsidy, as the regulated compensation is substantially below market-based rates. And owing to speed differentials over a congested freight network, a single passenger train can crowd out from between two to six freight trains, creating out-of-pocket and opportunity costs that the compensation formulas fail to recognize. Additional sidings could

reduce costly delays, but a single twomile-long siding, with signaling, Positive Train Control and high-speed turnouts at each end, could cost up to $15 million— with dozens or scores required—and it is unlikely Amtrak would pay.

There is a compelling economic argument that if users of a service do not pay its full costs, the service is not sufficiently railwayage.com

Joseph M. Calisi

W

ere Amtrak a business school case study, it would be advertised as “The Failure of Public Enterprise”—users receiving services for which they don’t pay the full cost; taxpayers subsidizing the difference; a failure to follow Generally Accepted Accounting Principles (GAAP), as if Bernie Madoff were Amtrak’s chief accountant, and conflict of interest collaboration with the Federal Railroad Administration (FRA) to impede entry by more efficient private-sector competitors.

The Amtrak subsidy is no small sum, and actually considerably greater than the advertised $1 billion annual average federal transfer Amtrak has enjoyed since its creation by Congress 48 years ago.

Amtrak’s purpose was to relieve privately owned, predominantly freight railroads of a financially crushing and statutorily mandated burden of providing perennially unprofitable passenger service. In exchange, freight railroads were required to provide Amtrak trains with access to their privately owned track at regulated compensation.

While few foresaw Amtrak ever turning a profit, Congress intended Amtrak to conduct business as if it were a for-profit enterprise.

As Congress, under voter pressure in 1970, declined to allow market forces to determine the future of rail passenger service, Congress continues, under voter pressure, to provide subsidy support to keep Amtrak operating. Voter endorsement of an intercity rail passenger network is so robust—notwithstanding that there are many-fold more Amtrak supporters than riders—that states progressively are providing their own subsidies, which include cash, equipment and passenger stations. Plus, there are hidden subsidies.

Freight railroads have said the priority-access mandate adds another near

AMTRAK

A Failure

of public enterprise?

By FRANK N. WILNER, CAPITOL HILL CONTRIBUTING EDITOR

valued to be provided. Amtrak, however, is hardly a lone island of socialism in America’s sea of capitalism. The listing of government-subsidized enterprises would fill the pages of this magazine.

However, there are snowballing reasons why Congress may be unable to sustain Amtrak, even at its current subsidy level.

First, Amtrak is not an essential public railwayage.com

service. Airplanes and automobiles are America’s preferred means of transport, and buses increasingly are poaching Amtrak’s market share in the populationdense Northeast Corridor (NEC) between Washington, D.C., and Boston.

In fact, German-based Flixbus, asset light and information-technology heavy with its ride-hailing model similar to Uber,

is pilfering long-distance passenger market share from European rail carriers, and is about to export its model to the U.S. Also on the horizon are self-driving vehicles and vertical takeoff and landing aircraft suitable for passenger transport.

A more menacing storm cloud over Amtrak is the shrinking public purse.

In the past, on the few occasions when November 2018 // Railway Age 17

Presidents—Democratic and Republican—zeroed-out Amtrak subsidies in their budget requests, Congress still delivered bare-subsistence rations. Well, Congress may soon be incapable of doing even that, with no evidence that Pollyanna Amtrak and its supporters are prepared.

Beginning with the 2020 fiscal year beginning Oct. 1, 2019, every federal program is in jeopardy as lawmakers confront a new reality of annual $1 trillion budget deficits, a national debt of $21 trillion and growing, and interest payments on that debt projected to exceed the level of defense spending within 10 years.

Further crowding out future Amtrak subsidies in the federal budget is that while Congress perennially barked at Amtrak to behave more as a for-profit business, the entreaties often were ignored. Should Amtrak confess its sins, it would best lug lunch and dinner to the confessional.

Among the sins are Amtrak accounting practices. While Class I freight railroads must follow a uniform system of accounts, patterned after Generally Accepted Accounting Principles (GAAP), and file those R-1 Reports with regulators for public inspection, accounting transparency is not required of Amtrak. Such actions reinforce the axiom that if you can’t measure accurately, you can’t manage effectively and efficiently.

Among criticisms of the General Accountability Office (GAO), Congressional Budget Office and other watchdogs are Amtrak’s arbitrarily assigning operating costs as 18 Railway Age // November 2018

capital costs, or allocating expenses to unrelated lines of business. GAO called Amtrak’s accounting “inconsistent and incomplete.”

Were Amtrak’s Inspector General not compromised by reporting to the Amtrak board of directors, rather than being independent as is the Department of Transportation (DOT) IG, it might confront Amtrak management rather than labeling manage-

Congress has intended Amtrak to conduct business as if it were a for-profit enterprise. rial problems as “challenges” and producing reports reading as if edited by the Amtrak law department.

As for the political-patronage-heavy Amtrak board—nominated by the President and confirmed by the Senate—it has exhibited conflicts of interest, and often lacks members with experience in railroad operations, rail labor relations, travel and hospitality, and violating corporate-board best practices.

When questions related to accounting

were asked of Amtrak President Richard H. Anderson following his presentation at the annual California Passenger Rail Summit in Los Angeles in April, Anderson was hustled from the room by an Amtrak vice president.

Although Anderson targets Amtrak longdistance routes as unprofitable, his predecessor, Charles “Wick” Moorman, wrote Congress that if the long-distance trains were eliminated, Amtrak’s federal subsidy requirements for fiscal year 2018 would have increased by some $400 million annually, suggesting that long-distance trains actually make contributions to Amtrak’s bottom line.

Nothing encourages economic efficiency as does competition. Where external impediments are few, private-sector competitors have been selected by commuter authorities through competitive bidding to replace Amtrak, notwithstanding a senior Amtrak official terming urban areas “the future of Amtrak.” Congress, meanwhile, has been extinguishing Amtrak’s tenuous government-protected monopoly on long-distance and state-supported routes.

The 2015 Fixing America’s Surface Transportation (FAST) Act authorized a pilot project to open three of Amtrak’s 15 longdistance routes—between 780 and 2,728 miles long—to a bidding process by privatesector competitors, beginning at 90% of Amtrak’s existing subsidy on that route.

Potential competitors who sought— but haven’t taken advantage of—that legislative provision, allege FRA wrote compliance rules to shackle the program. For example, the FAST Act intended that the FRA “shall require Amtrak to provide access to the Amtrak-owned reservations system, stations and facilities directly related to the operation.” But the FRA ignored that requirement in the final rule, which potential applicants said made the program unworkable. And, they say, the FRA arbitrarily imposed an unmeetable short deadline for filing applications.

As for Amtrak’s 29 state-supported routes of fewer than 750 miles, the 2008 Passenger Rail Investment and Improvement Act (PRIIA) created a framework for selecting alternative operators. So far, just one emerged following successful negotiation with the State of Connecticut (“Amtrak Reform: Attention Must be Paid,” RA, October 2018).

A festering impediment is negotiating railwayage.com

Joseph M. Calisi

AMTRAK

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

FRA News:

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

Part Title 210 Railroad Noise Emission Compliance Regulations 215 Freight Car Safety Standards Updated 4-3-17.

216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment Updated 4-3-17.

217 Railroad Operating Rules Updated 4-3-17.

218 Railroad Operating Practices - Blue Flag Rule Updated 4-3-17.

221 Rear End Marking Device-passenger, commuter/freight trains

Updated 4-3-17.

Safety Glazing Standards Updated 4-3-17.

Railroad Accidents/Incidents Updated 3-5-18.

Locomotive Safety Standards Updated 4-3-17.

Safety Appliance Standards Updated 4-3-17.

Brake System Safety Standards Updated 4-3-17.

223 225 229 231 232

Mech. Dept. Regs.

BKMFR

Order 25 or more and pay only $26.96 each

$29.95

There are no new proposals or final rules to report for this issue. Be sure to check back next month to see if there are any changes to FRA regulations.

NEW!

Part 228: Passenger Train Employee Hours of Service; Recordkeeping and Reporting; Sleeping Quarters

49 CFR 228 for records, recordkeeping, and reporting of hours of duty of a railroad employee. Also covers the construction of employee sleeping quarters and health requirements for camp cars. 40 pages. Spiral bound. Updated 9-17-18.

BKHS

Order 50 or more and pay only $11.25 each

Current FRA Regulations Item Code

FRA Part #

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

Update effective

4-3-17 7-20-09 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17

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 Rear End Marking Device, Passenger, Commuter & Freight Trains BKHORN 222 4-3-17 Use of Locomotive Horns BKRFRS 224 4-3-17 Reflectorization of Rail Freight Rolling Stock BKHS 228 9-17-18 Hours of Service BKLSS 229 4-3-17 Locomotive Safety Standards BKSLI 230 4-3-17 Steam Locomotive Inspection BKSAS 231 4-3-17 RR Safety Appliance Standards BKBRIDGE 237 4-3-17 Bridge Safety Standards BKLER 240 4-3-17 Qualification and Certification of Locomotive BKCONDC 242 4-3-17 Conductor Certification

232 4-3-17

BKBSS

BKCAD

FRA Part #

BKSTC

BKPSS

40 219

233 234 235 236 238 239

Brake System Safety Standards

50 or more

BKTM

49 Part 213, Subparts A-F. Classes of Track 1 through 5: Applies to track required to support passenger and freight equipment at lower speed ranges. Includes Defect Codes and Appendices A, B, and C to Part 213. Softcover. Spiral bound. 120 pages. Updated 4-3-17.

27.45

10.95 10.00 10.50 8.50 10.50

9.86 9.00 9.45 7.65 9.45

6.75 6.25

6.10 5.60

14.75

13.25

7.95 12.50 12.50 25.95 10.50 7.95 14.25

7.15 11.25 11.25 23.35 9.45 7.15 12.85

12.50

11.25

Each

25 or more

16.50

14.85

Order 50 or more and pay only $9.45 each

800-228-9670

BKTSSAF

Each

1-1-18 Drug and Alcohol Regulations in 6-12-17 the Workplace

38.95

35.00

4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17

Signal and Train Control Systems

21.50

19.35

Passenger Safety Standards

25.50

22.95

$10.95

Track Safety Standards, Subparts A-F Order 50 or more and pay only $9.86 each

Track and Rail and Infrastructure Integrity Compliance Manual - Volume II, Track Safety Standards Updated 2018. This book consists of the guidance the FRA provides to its inspectors to properly apply the Track Safety Standards (TSS) during inspection activities. It covers Classes of Track 1 through 5. Includes defect codes for Part 213. 190 pages. Spiral bound.

BKINFRA18

$38.00

Trk and Rail and Infra. Integrity Comp.Man. Order 25 or more and pay only $34.00 each

Part 214: Railroad Workplace Safety The FRA's Railroad Workplace Safety standards address roadway workers and their work environments. Subparts A-General, B-Bridge Worker Safety Standards, C-Roadway Worker Protection, D-On-Track Roadway Maintenance, and Defect Codes for Part 214. Spiral bound.

74 pages. Updated 4-3-17.

BKWRK

Combined FRA Regulations

$10.50

Railroad Workplace Safety

www.transalert.com

Compliance Manuals BKINFRA18

Part 213: Track Safety Standards, Subparts A-F

30.50

25 or more

Update effective

$12.50

Hours of Service of RR Employees

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

38.00 49.95

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

34.00 44.95

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

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

Orders over $75, call for shipping

*Prices subject to change. Revision dates subject to change in accordance with laws published by the FRA. 11/18

AMTRAK access to privately owned track, although potential Amtrak competitors such as First Transit, Herzog, Keolis and TransDev/ Veolia are optimistic it can be obtained from most freight railroads by proving sufficient liability insurance and evidence of safe and reliable operations elsewhere.

The Association of Independent Railroad Passenger Operators (AIRPO) is working on their behalf. Of note, Amtrak’s safety record and culture have been criticized by the National Transportation Safety Board.

Meanwhile, Amtrak is alleged to be scrapping retired passenger equipment purchased with federal grants, rather than making it available for purchase and refurbishment by potential competitors, and Amtrak twice has attempted to thwart potential competitors by restricting access to Amtrak-owned passenger stations in Chicago and Washington, D.C. (“No Fingerprints on NEC Track Grab,” RA, September 2015; and, “Amtrak the Bully,” RA, June 2018). Virginia Railway Express (VRE) officials recall that after Amtrak lost a commuter contract to operate

VRE in 2009, Amtrak refused to assist VRE during the transition.

Also ripe for efficiency-inducing competition is the 457-mile, high-dollar-upkeep Northeast Corridor, owned by Amtrak with the exception of 103 miles in possession of public authorities. Amtrak’s ownership is under a 900-year, no-interest, no-principal-payment mortgage held by the federal government.

The NEC hosts 2,100 commuter, intercity passenger and freight trains daily, with the majority user being eight autonomous commuter agencies providing 243 million annual passenger trips, versus just 17 million

by Amtrak. Where Amtrak underpays its full cost responsibility when operating on host freight railroad track, commuter agencies underpay to Amtrak their full cost responsibility on the NEC, whose increasingly decrepit and outdated condition begs for an estimated $38 billion in new capital investment.

In 2002, the congressionally created Amtrak Reform Council unsuccessfully recommended separating Amtrak train operation from NEC ownership, and

opening both to competitive bidding. A recent suggestion is a federal, state and local subsidized quasi-government corporation, such as the Northeast Corridor Commission, that would manage and maintain a unified regional transportation system, allowing qualified train operators, including private-sector competitors, access to the NEC. (“NEC Infrastructure: Unification by Separation,” RA, August 2018).

Also suggested is unification of the eight autonomous commuter agencies now operating on parts of the NEC, and allowing commuter trains unrestricted geographic access to the entire NEC network so that a passenger could buy a ticket at any commuter stop on the NEC for passage to any other NEC station. This would allow for more efficient operation of higher- and high-speed trains serving only the largest cities.

Objections are that the Northeast Corridor Commission is a political body with limited expertise and extremely close ties to Amtrak; that eight politically powerful, autonomous commuter agencies would

RENTAL SYSTEMS, INC.

THE QUALITY TRUCKS AND EQUIPMENT YOU NEED. PHILADELPHIA 800.969.6200 DENVER 800.713.2677 DANELLA.COM/RENTALS

20 Railway Age // November 2018

railwayage.com

AMTRAK balk at unification, and a low probability that a multi-state compact could agree on an equitable funding formula, much less deliver on funding commitments, given that the involved states are cash-strapped.

Another approach is a public-private partnership, such as the AIRNet-21 concept, whereby a private-sector management organization would lease the NEC, manage it, and self-finance expansion and renewal, while providing open access. A profit would be earned through commercial development and assessment of statutorily regulated market-based user charges on qualified intercity passenger and commuter operators.

Competition has long been the engine of maximum efficiency. Each of these alternatives to a government owned and protected Amtrak franchise introduces such marketforce horsepower, allowing more efficient management and methods to drive out the less efficient.

The AIRNet-21 concept to make the NEC open-access (p. 48) was first proposed 17 years ago and continues to rely on a massive

railwayage.com

infusion of capital from the federal government—currently, a daunting $40 billion loan guaranty from Congress.

Former New Jersey Governor Jim Florio, a past chairman of the House Transportation Subcommittee and principal author of the 1980 Staggers Rail Act that partially repealed efficiency-smothering freight railroad economic regulations, says, “The current Amtrak model is unsustainable.”

Still active in the public policy arena, Florio counsels that “only when the pain of the status quo exceeds the pain of change” will change take place. Such conditions now exist, suggesting a new Congress, to be sworn in Jan. 1, may be nudged to turn 2019 into the year of passenger rail structural overhaul and reform.

The previous overhaul of passenger rail was the creation of Amtrak in 1970, when computers required paper punch cards; phone calls were carried by copper wire; and to determine driving directions, one opened and spread large printed maps.

What Congress can accomplish over the

next two years, through a new infrastructure renewal program and reauthorization of the FAST Act, is to secure for passenger rail a more reliable and consistent source of capital funding; devolve from the conflicted FRA all responsibility for passenger rail planning and funding, and allow for, and encourage, more private-sector competition.

The sword of Damocles hanging over Amtrak may concurrently ensure a positive event for commuter and intercity rail passengers, and the taxpayers subsidizing the service.

Frank N. Wilner is author of six books, among them Amtrak: Past, Present, Future, published by Simmons-Boardman Books.

Wilner earned undergraduate and graduate degrees in economics and labor relations from Virginia Tech. He has been AVP-Policy for the AAR, a White House-appointed chief of staff at the Surface Transportation Board, and director of public relations for the UTU. He is a past president of the Association of Transportation Law Professionals.

November 2018 // Railway Age 21

Women In Rail

Women In Rail

22 Railway Age // November 2018

KellyAnne Gallagher

Barbara Wilson

KAG Strategic Advisory

Wells Fargo Rail

Before launching KAG Strategic Advisory earlier this year, Gallagher served as a member of New York MTA senior leadership, representing the MTA before the USDOT and working with international and domestic partners and peer agencies to strengthen MTA’s capacity for benchmarking and best-practice exchange. Prior to that, she worked at APTA, where her portfolio included commuter and high-speed/ intercity rail and FRA’s RSAC. Along with FRA, ERA, and UNIFE, she led the creation of a quadrilateral initiative to share European and U.S. standards development.

Wilson is President of Wells Fargo Rail, the rail equipment operating leasing subsidiary of Wells Fargo Bank, which owns and leases more than 175,000 railcars and 1,400 locomotives. She is responsible for implementing long-range goals, strategies, plans and policies. Prior to joining Wells Fargo in 2013, Wilson worked as CFO at Helm Financial Corp., a private-equity-owned firm. Wilson began her career at the Bank of Boston in the Transportation Lending Group and earned a Bachelor of Science in Business Administration from Boston College and an MBA from Babson College.

Judge

Judge

Shutterstock/ Rawpixel.com

One year after its debut, nominations skyrocketed for the Railway Age Women in Rail award recognizing vision, ability and leadership. Our 14 honorees, selected from nominees from freight, transit and supplier companies as well as trade organizations, are driving their businesses forward while helping to make a difference by motivating colleagues, mentoring by example and making invaluable contributions to a better community outside the workplace. Their commitment marks them as pathfinders at all levels, from senior management down to the rank-and-file, whose professionalism and hard work set an example for many.

By STUART CHIRLS, senior editor

railwayage.com

Women In Rail

MICHELLE BOUCHARD Chief Operating Officer Caltrain

Bouchard is in her second stint with Caltrain, overseeing operations and capital projects for commuter rail in the San Francisco Peninsula and Santa Clara Valley. Bouchard added responsibility for PTC, EMU procurement and the $1.75 billion Caltrain electrification project, while preserving on-time performance. A mentor to staff, she was responsible for Caltrain Expansion program management. She is also active in community railroad safety initiatives.

NICOLE BREWIN

KELLI DUNN

Vice President, Government & Political Affairs Railway Supply Institute

Brewin, a rail industry advocate for more than a decade, played a key role in FAST Act tank car safety standards and securing federal funding increases for passenger rail in the fiscal 2018-19 budget. She serves on the Operation Lifesaver board, and is leading the first comprehensive economic impact study of rail supply companies. She has facilitated consensus on issues where RSI membership has a wide range of opinions and interests.

General Superintendent, Union Pacific Heartland Service Unit

Dunn started at UP in sales, and worked in seven departments before promotion to an executive-level position. She has led the service unit to record safety, service and efficiency. Dunn was instrumental in helping establish a UP Veterans employee group chapter, and volunteered to provide support for abused women in East St. Louis. She is active in recruitment programs at the University of Missouri-St. Louis and Missouri University of Science and Technology.

Congratulations Stephanie Lavino for receiving Railway Age “Women in Rail� Award Dagle Electrical Construction Corp 68 Industrial Way Wilmington, MA 01887 800-379-1459 | www.deccorp.com DagleElectrical_AD_November.indd 1

railwayage.com

10/25/18 12:00 PM

November 2018 // Railway Age 23

Women In Rail

LEILA FORD

Vice President, Marketing & Sales, G&W Midwest Region Railroads Genesee & Wyoming Railroad Services, Inc.

Ford managed relationships with large national companies to exceed her 2017 revenue goal by more than 50%, adding nearly 30 new accounts. She served as project lead on an intermodal terminal with CP in Jeffersonville, Ohio. Ford is a volunteer with Operation Lifesaver, and, having mastered G&W’s leadership training program, mentored team members on how to view commodity markets and geographic territories.

STEPHANIE LAVINO

JENNIFER MITCHELL

Dagle Electrical Construction Corp.

Virginia Department of Rail and Public Transportation

Administrative Specialist

Director

Lavino was instrumental in revamping Keolis Commuter Services’ Roadway Worker Protection program. She also established a mentoring process for employees so they could move on to a higher job position.

A mother of two girls, Lavino volunteers for the Walk for Hunger, Girl Scouts and Toys for Tots. She served two terms as President of the New England Railroad Club. At Dagle, she is often hi-railing, documenting progress on the MBTA’s PTC program.

Mitchell oversees $700 million in DRPT funding. A member of the APTA Executive Committee and Womens Transportation Seminar board, she developed legislation for dedicated WMATA funding and extending Amtrak service to Roanoke. She led development of a statewide rail plan, completed a $122 million expansion of CSX’s Acca Yard, and won a $165 million FASTLANE grant for the Atlantic Gateway project.

LEADERSHIP CONGRATULATIONS NICOLE BREWIN, VP of Government Affairs for receiving the Railway Age 2018 Women in Rail Award.

RSI_WomeninRail_HalfPageAd_Final.indd 1

24 Railway Age // November 2018

10/19/18 9:40 AM

railwayage.com

Women In Rail

JUDY PETRY

PATRICIA QUINN Executive Director

Chief Financial Officer

Farmrail Systems

Northern New England Passenger Rail Authority

Siemens Mobility, Inc.

President and General Manager Petry, who started her rail industry career in the 1980s, became a leader because she was never afraid to speak up. Rising from accountant in 1987 to Farmrail President and General Manager in 2014, she is Chair of ASLRRA and one of the faces of the short line industry. In March 2017 she testified before Congress in support of the 45G Tax Credit. Petry has chaired three ASLRRA Conventions, including the Association’s Centennial event.

Facing stiff opposition, Quinn’s leadership helped make Amtrak’s Downeaster service a notable success. She won a $38.3 million federal grant to upgrade track that has reduced travel time, expanded service to Freeport and Brunswick, and doubled ridership and revenue. She volunteers with the States for Passenger Rail Coalition, the State Amtrak Intercity Passenger Rail Committee, Visit Portland and others.

MARSHA SMITH

Smith’s standing with agencies and customers defines her leadership inside and outside the company. She helped steer Siemens Mobility through its 2012 merger with Invensys Rail. Her insights, experience and know-how are helping shape the future of connected mobility in North America.

Smith chairs Siemens’ Diversity and Inclusion Council. She also supports Repair the World, which seeks to transform lives through meaningful community service.

CONGRATULATIONS to Gina Trombley on being named one of Railway Age’s Women in Rail for 2018.

We are proud of Gina, her team, and all the employees at Bombardier who never stop moving to keep ideas, people and goods in motion.

railwayage.com

November 2018 // Railway Age 25

Women In Rail

LISA STABLER

LORIE TEKORIUS

GINA TROMBLEY

President

Executive Vice President and CFO

Vice President of Americas Ecosystem Sales

Transportation Technology Center, Inc.

The Greenbrier Companies

The first in her family to graduate from college, Stabler gained experience in product quality, engineering and strategic planning first at GM and then BNSF. She joined TTCI as VP Operations and Training in 2011 and has grown revenue from $50 million to $67 million. She chaired the AAR Advanced Technology Safety Committee, and supports Surface Transportation Training (Rail) with the Security and Emergency Response Training Center.

After her promotion to CFO in 2016, Tekorius became chair of Greenbrier’s Management Committee, with oversight of capital allocation, operations and technology, strategy, talent development and risk management.

Greenbrier’s stock has appreciated by nearly 126% since she was named CFO. Tekorius sits on the Providence St. Vincent Medical Foundation Council of Trustees and spearheaded Greenbrier’s $400,000 gift to Providence Heart Institute’s Play Smart program.

Bombardier Transportation

A West Point graduate, Trombley served as an Army intelligence officer before working for GE Transportation, Parsons and Bombardier. She led development of a $1 billion aftermarket parts and service plan for three Class I railroadss. Trombley focuses on mentoring talent, with an ability to create a strong following among her peers. A youth basketball coach, she participates in local STEM activities.

In recognition of her work toward achieving our Core Purpose —to be the safest and most respected rail service provider in the world—

The Virginia Department of Rail and Public Transportation congratulates Director Jennifer Mitchell on her well-deserved Women in Rail award.

She continues to lay the track for transportation growth in the Commonwealth!

G&W is honored to congratulate

Leila Ford, Vice President of Sales and Marketing for our Midwest Region Railroads,

on being named one of Railway Age ’s 2018 Women in Rail.

(804) 786-4440

Genesee & Wyoming Inc.

600 East Main Street, Suite 2102 Richmond, VA 23219

www.gwrr.com

26 Railway Age // November 2018 DRPT_WomeninRail_Ad.indd 1

railwayage.com 10/25/18 9:03 AM

Women In Rail Women in Rail Nominees Honorable Mention • Julie Benn - Amtrak • Ruth Brown - Norfolk Southern • Joy Carpenter - Utah Transit Authority • Sherrie Cooper - Palmetto Rail • Lorrie Cordray - Norfolk Southern • Dederia Demouey Mississippi Export Railroad

GWEN WADKINS

• Ashley Dopf - Drummac Inc.

KIMBERLY YU

Superintendent

Chief Operating Officer

BNSF Railway

Southern California Regional Rail Authority

In two decades working jobs from switchman to superintendent, Wadkins has been teaching, mentoring and leading by example. BNSF Employee of the Year in 2014 and 2017, she has always been first with boots on ground or rolling up sleeves to get work done while promoting safety. She challenges her team to be and do more than they thought possible. Wadkins helped with a charity drive for Hurricane Harvey relief, and is active in her church and community.

• Lisa Tuningley - T-Rail Products Inc. • Maggie Vuono - Holland LP

NEW!

$27.99*

Railroader - Hunter Harrison

$35.95

The most comprehensive collection of definitions relating to track. Over 1500 terms from antiquated forgotten slang to today's jargon. Clearly illustrated line art enhances the text.

BKRTT

Guide to Freight Car Trucks is an in-depth look at freight car truck maintenance covering some of today’s most commonly used trucks. You’ll get a comprehensive overview of AARapproved maintenance procedures to help your shop keep this vital component operating safely and efficiently.

$89.95

$35.00

Dictionary of Railway Track Terms

Guide to North American Diesel Locomotives

Guide to Freight Car Trucks

railwayage.com

• Ellen Smith - BART

Dictionary of Railway Track Terms

All About Railroading-Second Edition is the book for anyone who wants to learn the basics of today’s fascinating, high-tech railway industry.

1809 Capitol Ave., Omaha NE, 68102 www.RailwayEducationalBureau.com

• Laura McNichol - Watco Companies

BKHUNTER

Second Edition

The Railway Educational Bureau

• Lisa Matta - Wi-Tronix

Hunter Harrison, the revolutionary railroader from Memphis, dramatically turned four publicly traded companies into cash machines.

All About Railroading -

Guide to Freight Car Trucks

• Amy Lintick - Great Sandhills Railway

The Unfiltered Genius and Controversy of Four-Time CEO Hunter Harrison

$36.95

BKAARR All About Railroading

• Kristina Holcomb - Denton County Transportation Authority

Railroader:

Updated 2018. Everyone using the Single Car Test Device to check their air brake system will benefit from this manual. Compliant with the latest Code of Air Brake System Tests for Freight Equipment: AAR Standard S-486.

Single Car Air Brake Test Pro. Man.

• Caroline Gurjao - GE Transportation

Railroad Resources

NEW!

Single Car Air Brake Test Procedures Manual

BKFCT

• Shilah Geishauser Central State Resources

Yu has held executive operations positions at Metrolink and the Los Angeles County MTA, and helped guide the Measure R transit sales tax. Her work on revamping the SCRRA fare collection system and developing performance indicators to advance best practices are examples of her leadership ability. A wife and mother of three, Yu balances work with family life, and is on the Korean American Coalition board.

The Railway Educational Bureau

BKSCTD

• Carrie Evans - Iowa Interstate Railroad

BKGNADL

Jeff Wilson's new book, Guide to North American Diesel Locomotives, offers more than 300 pages of detailed information on diesel locomotives produced in North America from the 1930s to today.

$27.99*

Guide to North American Diesel Locomotives

800-228-9670

www.transalert.com

Add Shipping & Handling if your merchandise subtotal is:

UP TO $10.00 10.01 - 25.00 25.01 - 50.00 50.01 - 75.00

U.S.A. $4.50 7.92 10.78 11.99

CAN $8.75 12.65 16.80 21.20

Orders over $75, call for shipping

November 2018 // Railway Age 27

nec station development

Transforming Communities One Station at a Time

T

he Northeast Corridor (NEC) is the busiest passenger rail line in the U.S. To improve access and connectivity, several stations are expanding or being built along the NEC, among them Boston’s South Station and the proposed Pawtucket/Central Falls Station in Rhode Island. Both involve complex planning elements, multiple stakeholders and extensive public outreach.

South Station Expansion Boston’s South Station is currently in the planning process to increase capacity, improve connections, promote sustainability and spur economic development. Part of achieving this involves navigating a complex environmental process. The project involves development of both an Environmental Impact Report (EIR) pursuant to Massachusetts Environmental Policy Act (MEPA) requirements, and an Environmental Assessment (EA) pursuant to the National 28 Railway Age // November 2018

By Kristen P. Bergassi, ENV SP, NCICS; and Natasha Velickovic, PE, VHB

Environmental Policy Act (NEPA).

Defining an effective Purpose and Need (P&N) statement is the foundation for developing the range of alternatives required in the NEPA process and selection of a preferred alternative. There was a rare chance to address inadequate capacity for projected passenger rail growth in the Northeast. Defined goals for the expansion included achieving greater regional connectivity and passenger growth from Boston to New York to Washington, improving reliability and capacity as well as the passenger experience, and creating opportunities for development in downtown Boston.

One of the most important steps was developing an inclusive outreach plan tailored by project elements. The process began at project onset and continued throughout the environmental review and preliminary design. This continuity was crucial, as it proved the P&N statement was fully representative and defensible throughout the life of the project.

Alternatives analysis is the heart of the NEPA process. Because South Station Expansion included numerous elements that needed separate evaluation, the analysis was broken into five major project elements—station head house, track and platform layout, layover, joint development, and roadway alternatives. The selected alternative for each element was incorporated into a comprehensive Build Alternative, and advanced in the EIR and EA for full environmental evaluation.

Another element was managing multiple stakeholder interests. Identifying station users (regional/intercity, commuter, rapid transit and local/neighborhood) was critical due to diverse needs and varying levels of jurisdiction (federal, state, local). It was important to coordinate with stakeholders, but also encoura’ge them to coordinate with each other. A public involvement plan was developed early in the process to outline specific strategies for implementing outreach goals. railwayage.com

VHB

Projects headed by women are improving passenger rail along the Northeast Corridor.

nec station development

Natasha Velickovic

Understanding that there is no one-sizefits-all approach to stakeholder coordination, the team incorporated significant agency collaboration, engaged the public throughout the entire planning and NEPA/ MEPA process, and fostered consensusbuilding to keep the project moving forward.

South Station serves as the most heavily used passenger rail facility in New England, despite having half the tracks available as when it opened in 1899. A collaborative effort of the FRA, Massachusetts DOT, Massachusetts Bay Transportation Authority (MBTA) and Amtrak, the South Station Expansion Project seeks to facilitate improvements in corridor and regional mobility, passenger experience and comfort, economic development and quality of life.

Restoration in Rhode Island Once thriving communities with a strong industrial base, Pawtucket and Central Falls, R.I., experienced a devastating economic downturn in the 1950s. The loss of retail and commercial uses, coupled with an eventual abandonment of passenger rail service at historic Pawtucket/Central Falls

railwayage.com

Station, left these communities economically disadvantaged.

State and local politicians have been eager to re-establish a Pawtucket/Central Falls Station since 1981, when service there was discontinued. Finally, in 2007, the cities completed a feasibility study to restore a commuter rail connection. The study positioned the project to proceed into preliminary engineering and NEPA review, which was executed by the Rhode Island Department of Transportation (RIDOT).

NEPA later awarded the project a TIGER Grant toward construction. Getting there, however, was not without its hurdles.

Pawtucket and Central Falls had an ardent desire to connect their communities to major metropolitan areas. RIDOT, however, understood that a new station could not be designed and built quickly.

Early coordination between the cities and RIDOT was crucial to moving this project forward, but not in a silo and not without numerous railroad stakeholders. It was important to address each of the railroad stakeholders’ wide-ranging concerns.

From some perspectives, the script was already written: Municipalities want rail stations to help revitalized their communities, while state agencies are typically hesitant due to concerns over project readiness and funding while facing prioritization of state investments with limited resources.

Similarly, the railroad owners view maintaining existing operations and future capacity a top priority. Project success came from understanding these varying perspectives, setting realistic goals for cost and schedule, maintaining constant and transparent communication, and incorporating

each perspective into the big picture.

To address project readiness concerns, Pawtucket prepared a Transit Oriented Development (TOD) Vision Plan in parallel with the design process, to stage for private investment as soon as the station is open. The TOD Vision Plan also helped to successfully secure TIGER funding toward station construction. To address operational concerns from the railroad, the project included extensive coordination with Amtrak, which owns and operates on the corridor through Rhode Island; Genesee & Wyoming’s Providence & Worcester Railroad, which provides freight service through the project area; and the MBTA, which will provide commuter rail service at the station. Pawtucket/Central Falls Station was to be issued as a design-build contract in the fall.

Kristen P. Bergassi, ENV SP, NCICS, is VHB’s Deputy Project Manager and Environmental Task Lead on the South Station Expansion for MassDOT. Natasha Velickovic, PE, serves as VHB’s Project Manager for RIDOT’s Pawtucket/Central Falls Commuter Rail Station.

Kristen Bergassi

November 2018 // Railway Age 29

Norfolk Southern

YA R D M A N A G E M E N T

Flat, hump, or both?

Norfolk Southern’s hybrid Debutts yard is the first of its kind.

N

BY WILLIAM C. VANTUONO, EDITOR-IN-CHIEF

aples, Fla.-based classification yard process control system supplier Trainyard Tech LLC counts Norfolk Southern among its largest customers. NS’s massive Conway Yard, just outside of Pittsburgh (at one time, the world’s largest, under the Pennsylvania Railroad, Penn Central and Conrail), received a Trainyard Tech CLASSMASTER™ system in August.

NS’s Debutts Yard in Chattanooga, Tenn., on the former Southern Railway (named after Harry A. deButts, Southern President from 1952 to 1962, and succeeded by railroading legend Bill Brosnan), recently reopened with a unique “hybrid” configuration that combines flat-switching with humping. Trainyard Tech completed 30 Railway Age // November 2018

conversion of the existing CLASSMASTER control system at Debutts to hybrid in April 2018; the yard reopened the following month, after it had been shut down for a year for modifications and rebuilding.

Originally built as a hump yard, Debutts was converted to flat-switching in May 2017. But rising traffic levels across the NS network that led to congestion, rising car-dwell times and reduced train velocity problems, especially on the southern portion of the system, prompted NS to reopen the hump operation but retain the yard’s flat-switching capabilities, in line with operating plan changes made after the hump was closed.

Debutts Yard now consists of 60 tracks arranged in seven groups: four groups of nine tracks for humping, three groups

of eight tracks for flat-switching, at the pull-out end. The hump classifies cars for local customers; the flat-switch section is used mainly for block swapping, to make up new trains that are pulled out into the departure yards.

“This yard is different than most,” says Trainyard Tech President John Aliberti.

“It’s the first of its kind. It may look a lot like many other yards, but since three of the seven track groups are for flat-switching, it’s equipped differently.

“Our CLASSMASTER control system combines the routing features of both methods, and as such required extra functionality and safety features to protect the flat-switched track groups as well as those used for humping with car retarders. For example, the control system prevents railwayage.com

Norfolk Southern operators from routing car blocks designated for flat-switching onto the hump. We modified the operator display screens to show the flat-switching track groups.”

The hump throughput capacity at Debutts Yard is now 800 to 1,000 cars per day. Operations, Aliberti says, “are much more efficient. There’s been an improvement in car throughput.”

Generally, says Aliberti, “We’ve been able to adapt our CLASSMASTER technology to the railroads’ changing business needs and operating situations. The system is quite flexible, as we’ve shown at Debutts Yard.”

This will be especially important as the Class I’s shift to their own iterations of Precision Scheduled Railroading, which the late, now-legendary E. Hunter Harrison implemented at Illinois Central, CN, Canadian Pacific and CSX—his final CEO post before his death, at 73, in December 2017.

Union Pacific recently announced its shift to PSR (the UP 2020 program, for “Unified Plan.”) Norfolk Southern will go the PSR route beginning in early 2019.

Neither railroad has announced major yard closings as part of PSR. In fact, UP is building a new, state-of-the-art hump yard at Brazos, Tex. (See Contributing Editor Jim Blaze’s feature story, p. 32.)

It was a record 3Q2018 for NS. Net income increased 39% to $702 million in the three months ended Sept. 30 from the prior-year period, a third-quarter record, on a lower tax rate and income from railway operations that improved by 14%.

The operating ratio fell to 64.5% as earnings powered ahead by 44% to $2.52, both records for the quarter.

NS railway operating revenues were 10% higher at $2.9 billion on higher volumes and better revenue per unit, including higher fuel surcharge revenue and increased rates.

Total freight volumes were up 5% as weaker coal shipments were offset by growth in intermodal and merchandise categories.

Railway operating expenses expanded 9% to $1.9 billion from the previous-year quarter on higher fuel prices, increases in volume-related expenses and increased

costs associated with overall lower network velocity. Income from railway operations grew 14% to $1 billion, another record.

“Norfolk Southern continues to deliver record financial results that reflect our careful and determined pursuit of a balanced and flexible strategy,” said James A. Squires, Chairman, President and CEO. “Our demonstrated progress toward the goals of our strategic plan is significant, and our ongoing pursuit of new initiatives to benefit customers and shareholders will further strengthen our organization.”

In a call with analysts, Squires said the company plans to begin implementing the Precision Scheduled Railroading operating method that’s made some Class I railroads the darlings of Wall Street. NS will reveal its PSR plans in full at its investor day in February 2019.

Squires also confirmed reports the company could move its headquarters from Norfolk, Va., to Atlanta.

Senior Editor Stuart Chirls contributed to this story.

CLASSMASTER™

ROUTEMASTER™

INNOVATIONS

The Hump Yard Process Control System in 22 classification yards across the US and Canada featuring:

The NX Control System in 12 locations providing Entrance – Exit and Train Control Operation for Receiving, Pullback and Departure Yards featuring:

OSX™ Technology, switch and track occupancy detection using wheel detectors. Provides data essential for maintaining a High Performance yard.

Automatic Calibration Graphic Playback Realtime Hump List Display Pinpuller Scoreboard Display Automatic Report Generation Loggers – Daily, Event and I/O eBlock™, Electronic Track Blocking AEI Integration and List Verification • Remote Diagnostics • OSX™ Technology • • • • • • • •

railwayage.com

• NX Route Control – Receiving and Pullout Yards • 4G Wireless Control • Track Circuit-Less Shove Operation • Realtime status of all yard devices • Logger – Daily, Event and I/O • Individual Switch Control • State-of-the-art Lightning Protection • Graphic Playback

TyTReporter™, sophisticated reporting tool to simplify troubleshooting, analyze yard.

Reviewing Up-to-the-minute historical performance.

November 2018 // Railway Age 31

Traffic Management

Bold Move at Brazos

Union Pacific’s calculated bet on the future of rail freight is a half-billion-dollar classification yard in southern Texas.

U

By Jim Blaze, Contributing Editor

nion Pacific announced in January construction of a $500 million rail classification yard in southern Texas. While some may debate the future of carload freight as well as the future of railroad classification yards, UP is making a clear investment bet in the continued growth of both.

While some declare the class yard to be legacy technology, perhaps it’s best to consider Brazos Yard as representing UP’s confidence and commitment toward an exceptionally strong market in its Southern Region, one of two in its newly restructured operating network.

A multitask group of UP operations research, marketing and financial people took a long look at the future of UP traffic in the Southwest. One report suggests that at least seven years of research went into this capex investment decision, which includes: • An all-new, 1,875-acre classification yard with no confining land uses, in a remote location (rural Robertson County, near Hearne and Mumford), yet still close to the direct coastal markets of Beaumont, Houston and Corpus Christi, and about 120 miles north of existing customers and yards in Houston.

32 Railway Age // November 2018

• Initial ability to classify about 1,200 cars per day, growing to about 2,300 per day.

• A 40-track bowl yard, with possible expansion to 70 tracks.

Among the advanced engineering and IT technologies at Brazos are a new-to-UP three-point hump retarder system; a wider and faster hump yard turnout configuration; wider track centers within the yard; a network of AEI tag readers to help track and trace all car movements; an extensive fiberoptic system; a planned yard-specific wireless communications backbone; a by-design remote-control locomotive operating plan, with locomotive movement, in part, controlled by sensors embedded in-track; and no road/rail at-grade crossings.

Construction of Brazos involves 2.5 million cubic yards of earthwork; 72 miles of track; a hump yard that, after settlement, is 25 feet high; one million tons of aggregate base to support the track structure; a one-milelong, 25-foot-deep outfall drainage channel between the yard and the nearby Brazos River; and 39 miles of local drainage work. Project completion is expected in 2020.

The last small hump yard UP built new was in Livonia, La., during the early 1990s.

In contrast, other railroads, mainly those

under the leadership of the late E. Hunter Harrison, began to challenge the need for hump-and-retarder classification yards.

Under his Precision Scheduled Railroading model, Harrison closed a lot of them.

Yet, UP as well as Norfolk Southern and BNSF continue to rely on a network of classification yards. Why the difference?

As an example, within the past decade, NS has spent about $160 million to improve the functional capability of its existing Bellevue (Ohio) yard. Why modernize an existing yard like Bellevue rather than build a new yard? In part, because Bellevue yard had surrounding open land upon which to expand, and its location was a “sweet-spot” in the northern part of the NS system. Five routes serve this hub. NS believes that by using Bellevue’s improved hub functionality, it can avoid several intermediate yardings.

That is important, since each classification during a freight car’s trip adds to the potential lower reliability of on-time delivery.

UP confirms that several interdisciplinary teams identified functional features that would bring forward superior car logistical movements. The objective was to make Brazos the most cost-effective classification yard on the UP system. railwayage.com

Traffic Management Its location in Robertson County effectively makes Brazos a Southern Region hub terminal for five UP strategic corridors: Houston and Southern Gulf Coast; DallasFort Worth and North Texas; Mexico and the U.S; Texas and the U.S. Central Midwest; Texas and the Northeastern U.S. Data from recent Texas State Rail Plans clearly show that multiple high-traffic-density (millions of gross tons per year) UP lines pass near the Brazos location. The topology is relatively flat, with individual parcels that could, at reasonable total design/purchase/grade costs, be assembled into a sought-after yard configuration, directly connected to seven nearby UP radiating major routes.

The location of Brazos is interesting, as UP staff evaluated multiple sets of geography and ran numerous network computer simulations. From a main line network position, the new yard is centrally located between Temple and DFW to the north and the Houston complex to the south, plus the Beaumont and Austin markets to the southeast and southwest, respectively. The new location is spot-on for hub-and-spoke southern Texas freight traffic processing.

Why not just rebuild and modernize parts of the existing UP Houston yard complex? The technical problems that had to be resolved were daunting, in terms of rail economics. Yards within Houston were never located to support a modern, one-system company, the type of operation into which UP’s network services matured

railwayage.com

over the past three decades. The existing Houston yards are hemmed in by residential neighborhoods and other land uses, including highways and bridges. Width expansion of yards like Englewood is restricted.

It is typically very expensive to rebuild existing yards while simultaneously operating services. The existing Houston yards sit on a coastal flood-prone plain at elevations only about 50 feet above sea level; new Brazos location elevations range from 250 to 300 feet above sea level, with land open to supporting adjacent logistics development for customer use. As well, there are expenses associated with recovery from Hurricane Harvey. Railroads are aware of recent trends in extreme weather that make climate (weather/water/wind) conditions an important location factor.

UP will still need local traffic processing yards close to the carloads of freight it originates and terminates. About 84% of its traffic around Houston is heavy industrial movements that require carload support in rail yards. Shifting classification of many freight trains that operate through the central Houston region and remotely storing other cars that don’t require immediate local customer handling can resolve some Houston-area track capacity and yard congestion problems.

In the past 15 years, there have been about four Houston-region rail freight studies that examined traffic congestion and searched for solutions. The capital investment costs

associated with these solutions ranged from upwards of $500 million to as much as $5 billion. Financing a P3 (public-private partnership) never reached a clear consensus on what to build toward an improved regional network, and how to pay for it.

Ironically, not one of these multiple regional studies seems to have publicly anticipated an independent action by UP, the region’s largest rail carrier, to build congestion relief out toward Hearne. Few if any at the MPO or state DOT planning level seem to have anticipated the size of UP’s $550 million self-financed project.

Brazos Yard could make a big improvement in Houston’s internal network congestion.

The $550 million to construct Brazos is the largest single-facility capital investment in UP’s 156-year history. Yet, it is not the only recent large UP project. The all-new intermodal yard just west of El Paso cost an estimated $400 million..

UP management is confident about the need for Brazos Yard. Superintendent of Transportation Services Steven Bybee acknowledged that most system-wide growth has taken place in the Southern Region, which includes Texas and Louisiana. The traffic includes manifest (carload) volume. “We need the additional capacity in the South,” Bybee said. “We looked at natural car flows to decide where we could make room. Brazos is perfectly located. It will naturally fill up with manifest trains arriving from Mexico and the Gulf Ports, and makes room for growth in other Texas yards.”

November 2018 // Railway Age 33

Traffic Management

That market outlook was confirmed separately in a traffic presentation made to the Railway Industrial Clearance Association by UP Executive Vice President Marketing and Sales Kenny Rocker.

UP reaffirmed its commitment to building Brazos Yard at its 3Q18 earnings call, as senior management described the

classification yards in its 23-state network.

About half of UP freight moves across some part of its new Southern Region, and it’s turning its existing operations model “upside down” as it adapts the principles of Precision Scheduled Railroading to its network. As Brazos earthwork and construction continues, UP operations analysts are re-examining how some design elements might be changed by the time the yard goes operational during 2020. Among the design changes are longer arrival and departure tracks to accommodate longer UP trains; adjustments to bowl tracks to accommodate PSR’s longer car block building; and adjustment of yard processing software to reduce yard dwell from roughly 24 hours to 14 hours or less.

Why the Hearne area? UP engineers looked out along the star-like pattern of UP strategic corridors that approach the Houston region. The most important connectivity had to include access to DFW and points north and west of that strategic rail hump yard; to Arkansas toward the St.

Louis, Illinois, Indiana, Michigan and Ohio markets; to Houston and its broad nearby bay area customers that tie into coastal ports and plants; and connections between the northern states and the San Antonio and Mexican crossings. Connections from Texas to Southern California markets don’t seem to be as critical when considering how many compass points that UP had to prioritize with the limited number of available site choices.

UP executives have said that rail yards need to be extremely flat. Key among local site engineering construction problems is getting storm water to drain from an incredibly flat area. UP needed to find those two conditions “at a point reasonably close to connecting with our northern rail lines out of Houston, logically pointed to the closely adjacent unincorporated areas of Valley Junction and Mumford, plus the town of Hearne.”

The Hearne site fit those characteristics, being within the drainage and local flood plain area of the Brazos River—south of

Routine Maintenance Never Looked So Good Progress Rail brings you innovative Maintenance-ofWay solutions, such as our Kershaw 4600, 46-2 and 46-6 Ballast Regulators.

We have been on the forefront of MOW technology since 1945, introdcing the first ballast regulator in 1945.

Working smarter—that’s Progress.

Ballast Regulator fitted with Premium Carbide Wear Parts

progressrail.com •

34 Railway Age // November 2018

180098

From the very first Kershaw Ballast Regulator to today’s models engineered for speed, power, efficiency and performance, we set industry standards for excellence.

@progressrail •

@Progress_Rail

railwayage.com

Traffic Management U.S. Highway 79, between the Brazos River and west of Texas Highway 50. “Brazos Yard will allow us to handle railcars the fewest amount of times possible, making the Southern Region more fluid to accommodate expected growth,” Bybee said.

As for local community benefits, Brazos yard is expected to create more than 500 construction-related jobs. Texas A&M University’s Engineering Extension Service predicts the completed yard will contribute almost $260 million in annual total output for the state of Texas.

Union Pacific says that its decision to build Brazos Yard was made prior to 2014, but then delayed. Why? Commodities that UP hauls in and out of the southern Texas coastal region that typically might use Brazos include chemicals, plastics, metals, industrial products and high and wide clearance loads (project cargo). But the Texas prize of general merchandise goods is chemicals and plastics.

UP’s hesitation is not surprising, considering that the crude-by-rail boom was

coming to a halt and reversing between 2013 and 2015. Across many industries, there was serious thinking about five- to ten-year plans as the global price of energy declined.

However, since 2016 there have been multiple independent global as well as North American economic studies that clearly point to a coming surge in chemical, plastics, and energy/feedstock-based plants. One recent report suggests that, over the next ten years, as many as 100 petrochemical plants might be built along the UP-served Gulf Coastal areas between Corpus Christi and Louisiana. UP’s and Wall Street’s business expectations have risen over the past two years as the nearby Texas Permian fields have come on line.

Texas-wide studies at the state DOT level project the state’s freight to about double from 2.2 billion tons to more than 4 billion tons toward 2035. Interestingly, many Texas commodity projections undervalued chemical-growth prospects prior to 2010, since they had not factored in the strategic robustness of U.S. oil and natural gas discoveries.

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.

Diesel-Electric Locomotives How They Work, Use Energy, and Can Become More Efficient and Environmentally Sustainable

by Walter

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

Prior to about 2007, very few within the energy industry would have foreseen the rapid rise of the U.S. crude oil industry.

The outlook has changed over the past two years. The petrochemical-based production of ethylene continues to grow.

Over the next five years, the ethylene sector may expand at an average annual growth rate of 3.6%. Comparable timeline reports suggest that U.S. GDP might only grow by about 2.5%.

For this Railway Age report, reviews of multiple independent sources suggest that the growth rate in broad-based U.S. chemical production could range year-over-year during the next ten years from an annual low of about 2% to 3% to a high in the 4% to 6% range. This ignores the extreme low and/or high sector predictions that might occur one or two years during the decade ahead.

Taking all the pros and cons—even with some economic and trade risks foreseen— it does seem that with Brazos Yard, Union Pacific is making a bold but calculated bet on the future of Texas rail freight.

“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 railwayage.com

ORDER EARLY

$39.99 Pre-publication price good through Dec. 1, 2018.

Regular price $45.00. Use book code BKDIESEL. Softcover, 200+ pages, full-color graphics.

S&H $10.78 single copy U.S., $16.80 single copy Canada. Call for shipping prices on international orders and for multiple book orders. Orders expected to ship late fall 2018.

November 2018 // Railway Age 35

Ballast

Bettering

BALLAST

There’s nothing low-tech about modern ballast machinery. allast distribution and maintenance suppliers are continually improving their offerings to the North American railway market.

Following is a summary of the state-of-the art in this critical area of engineering.

Balfour Beatty Rail and its long-term technology partner Zetica Rail have developed a range of hi-rail and trainmounted trackbed inspection technologies, which include Zetica’s Advance Rail Radar (ZARR), LiDAR and vision-based trackbed inspection systems.

These systems are intended to provide a

36 Railway Age // November 2018

comprehensive assessment of above- and below-ground condition of the trackbed.

Information from a Railway Asset Scanning Car (RASC®) survey provides railroads with the ability to target ballast maintenance in a cost-effective manner, including “right-sizing” drainage rehabilitation, undercutting, shoulder ballast cleaning or track lifting and surfacing plans.

During the past year, the company has seen a shift within the industry toward railroads seeking to acquire trackbed condition information for condition-based maintenance planning. The benefits of routine measurements to evaluate changes in

trackbed condition include better predictive maintenance planning, as well as a new focus on monitoring the extent and quality of maintenance activities. Railroads are consistently seeking automation and databased decision-making through machine vision and deep learning analytics.

Ballast Tools Equipment (BTE): This year, the BTE-325 Railroad Modified Hi-Rail Excavator is garnering attention for its versatility and durability.

The exclusive BTE four-wheel hi-rail system provides power for on-rail ballast maintenance. The Rototilt attachment, with a 360-degree rotation and 40-degree railwayage.com

Herzog Railroad Services

B

By Kyra Senese, Managing Editor, Railway Track & Structures

HOW MUCH BALLAST ARE YOU WASTING? WITH GREX, YOU WON’T WASTE A SINGLE ROCK. Take the guesswork out of your ballast program. Using advanced lidar survey scans and upgrades to your existing ballast cars, our comprehensive ballast solution can ensure you’re spreading the right amount of ballast right where it’s needed.

BallastSaver® Automated ballast delivery starts with BallastSaver®, which scans your track using advanced lidar technology to identify the precise location of ballast deficiencies.

A

COMPANY

+1 512.869.1542 www.georgetownrail.com G

E

O

R

G

E

T

O

W

N

R

A

I

L

E

Q

U

I

P

M

E

N

T

C

O

M

P

A

N

Y

Ballast

GREX Dump Train working in British Columbia.

Midwest back into service after flooding.

The company’s original DumpTrain® design has served the rail industry for more than 20 years, and its design allows a single employee to efficiently and safely unload up to 2,000 tons of aggregate per hour without requiring railroad employees on the ground. The new DumpTrain for Curves design provides the freedom to deploy multiple types of ballast for any project in curvatures of up to 27 degrees.

Two of the company’s newest offerings include improvements to its side-dump

Georgetown Rail Equipment Co.

tilt, allows operators to profile the ballast in various positions while remaining on the track. Paired with a ditching bucket or one of BTE’s high-performance undercutters, the BTE-325 can be “an indispensable track maintenance workhorse.”

Georgetown Rail Equipment Co. (GREX): Now in its second year in the field, the next-generation DumpTrain for Curves™ from GREX continues to provide new aggregate delivery capabilities for railroads. New curve trains have been put to the test this year, helping to bring tracks in the

and ballast car automation equipment. The newest version of the company’s GateSync/ Solaris product allows customers to automate the unloading of their ballast cars.

HydraDump 2.0 is intended to serve as a reliable air-over-hydraulic conversion kit for side-dump cars on the market.

Herzog Railroad Services Inc. (HRSI) emphasizes precision in ballast placement. Its Automated Conveyor Train (ACT) has the ability to unload ballast quickly and efficiently in precise locations, including curves and S-curves with multiple aggregates. The company says its ACT is the only curve train capable of unloading all 32 cars in a curve, which minimizes the need for railroads to truck material to remote work-site locations. The ACT performs effectively for use in emergency situations, new construction and routine maintenance.

Herzog’s patented GPS trains (PLUS and SMART) are also meant to minimize track time for m/w work trains. The company said its GPS ballast train consist (up to 90 cars) has unloading speeds up to 20 mph and allows for pinpoint ballast unloading while avoiding facilities such as crossings or other no-dump areas.

Knox Kershaw Inc. currently offers four ballast regulator models. Each model allows the user access to customizable features. The KBR 925 is the company’s largest, most powerful model, with the most options. The KBR 860 is a heavy-duty

38 Railway Age // November 2018

railwayage.com

option at a shorter height and wheelbase for easier portability. The KSF 940 is designed as a snow fighter, but can be converted to a ballast regulator during warmer months. The KBR 800 is a ballast regulator designed for narrow gauge. It can now be sold with a kit to convert it to different gauges. The company’s ballast regulator models have undergone a redesign of the fuel tanks and hydraulic system to boost fluid capacities and lengthen run-time capabilities.

The machines have also had a redesign of the handrails and steps to improve safety.

In an effort to provide cost-efficient options to the new EPA Tier 4-powered machines, Knox Kershaw now offers factory remanufactured ballast regulators with come with a new machine warranty, Tier 3 engine packages, and all components new or refurbished.

Trade-in allowances may be offered on select machines.

Loram Maintenance of Way Inc., through its new HyGround division, uses ground-penetrating radar (GPR), scanning LIDAR and right-of-way imagery, along with advanced analysis of track geometry data, to determine when and where to perform ballast and drainage-related work. Quantifying the condition of the ballast and drainage components of the track, and then evaluating the performance to the track based on expected operating conditions, Loram is able to provide its customers with recommendations for the most efficient utilization of ballast and drainage equipment.

The maturity of ground-penetrating radar to provide ballast fouling, moisture and roadbed sublayer information has created a paradigm shift in how railway substructure is managed. The GPR information is useful, but Loram believes that by integrating other information, such as right-of-way topography from LIDAR and top-of-rail performance from track geometry analysis, an enhanced picture of the track condition is obtained.

Loram uses advanced analytical tools to evaluate geometry patterns to provide useful information on track substructure condition. Track geometry patterns, in particular, vertical profile (surface) patterns, are influenced by such things as variable ballast fouling, changing drainage conditions and variable subgrade stiffness. The Loram HyGround division also provides GPR collection services from hi-rail-based platforms and through hardware mounted on rail-bound measurement cars.

Miner Enterprises Inc. recently developed a stand-alone lighting system to aid in night ballasting. The system uses solar panels to store energy during daylight hours and for powering LED work lights at night. The system allows for a safer work environment during night operations.

Miner has also improved the internal electronics of all its aggregate systems, including the Stand Alone System. The electric standalone AggreGate enables independent operation of the car from anywhere within a ballast train, eliminating the need for grouping manual and automatic cars. The machine’s advanced electronics are intended to provide improved reliability, longevity and performance. This year, the company has continued to simplify the application of the AggreGate System to help carbuilders and car shops streamline installation and reduce labor costs.

Miner’s AggreGate can effectively ballast inside, outside or both sides of the rail simultaneously. These features include large guillotine door openings designed to stop ballast flow with minimum effort, easy-to-operate toggle-type linkage systems, and tapered railwayage.com

An Innovative Approach to

Railroad Maintenance Equipment PURCHASE—RENT—LEASE Customizable and Emissions Compliant

Formerly Rail Construction Equipment Co. (RCE)

WWW.RCEQUIP.COM 866-472-4570 RCE has increased options for under cutter bars! Complementing the newly expanded hi-rail excavator product line, RCE can now equip all the models with bars ranging from 8 to 15 feet in size. Bars available on hi-rail or standard excavators.

November 2018 // Railway Age 39

Ballast doors for easy ballast shutoff at switches, crossovers and bridges. In addition, the remote-control AggreGate allows the user to deposit ballast while remaining a safe distance from the activity.

Montana Hydraulics is currently working on three new products: a new design for covered ballast hoppers for more effective work in colder climates; a new ballast car gate system designed for rugged conditions; and a new hydraulic lift system for side-dump car mechanisms. The machine prototypes are in various stages of development, with a focus on high-cycle use in everyday service.

This year, Montana Hydraulics has incorporated a fiber-optic laser cutting machine that allows the company to cut component pieces with more precision and accuracy.

This machine is designed to eliminate the need for machining holes.

Montana Hydraulics is also currently in the middle of a multi-year service contract with a western Class I, and the company expects its activity rate to remain steady

throughout 2019. Company personnel manage the maintenance and operating systems for more than 2,200 material cars.

Plasser American Corp. specializes in high-speed, one-pass ballast regulators intended to work with highproduction, continuous-action tampers.

One-pass ballast regulators paired with high-speed tampers allow for achieving the maximum work completed within a track work window.

The Plasser PBR2005 Ballast Regulator is a heavy-duty ballast profiling and dressing machine that the company says can plow, profile and broom in one pass. The design of the shoulder plows allows the machine to reach out and pull in ballast, which was previously beyond the reach of conventional ballast regulators. A powerful drive system, adjustable X-type ballast plow and unique shoulder plows allow the PBR2005 to quickly and efficiently move large amounts of ballast. The machine can easily transfer ballast from both toe lines to both shoulders in a single pass.

The PBR2005 is also available with an optional double broom, making it useful for work behind two-tie tampers or tamper and pup tamper combinations.

The BDS 100/200 Ballast Distribution System is intended to accompany Plasser’s high-speed 09-3X tampers. The machines are equipped with plows to profile the ballast, hopper and conveyors to distribute ballast as needed, and double brooms to sweep up and store excess ballast and for final track dressing. MFS Hopper/Conveyor cars may be added for additional ballast storage. All work is performed in a single pass.

For transit systems with high-degree curves and restricted clearance envelopes, Plasser offers the PBR550, which, in addition to ballast plows and brooms, is equipped with a ballast hopper for storing and unloading ballast.

Progress Rail’s Maintenance-ofWay Equipment-Infrastructure Division says some of its key equipment models have received important technology updates within the past year, as railroads

RAIL BALLAST AREMA Compliant

Serving the Ports within the Great Lakes Illinois: Chicago Ohio: Ashtabula • Cleveland • Toledo Ontario: Windsor • Sarnia • Port Colborne • Hamilton • Toronto • Owen Sound Michigan: Detroit • Saginaw • Cheboygan • Ludington • Muskegon • Benton Harbor

FRANK HURKMANS REGIONAL SALES MANAGER – CANADA (519) 709-4377 // fhurkmans@tomlinsongroup.com

Meets all North American railway applications and AREMA specifications

BILL SANDERS REGIONAL SALES MANAGER – US (219) 775-5783 // bsanders@tomlinsongroup.com

www.tomlinsongroup.com | Ontario Trap Rock is a division of the Tomlinson Group of Companies | ©2017 Ontario Trap Rock. All Rights Reserved.

40 Railway Age // November 2018

railwayage.com

Ballast value machines that can think more intuitively, alerting operators to potential issues before they occur. The company recently implemented the integration of microprocessor control systems into all of its Kershaw Ballast Regulators to simplify and improve operator interaction with major systems. All operator control functions, machine status indicators, engine display parameters and engine codes are now displayed on a 12-inch industrial-grade touchscreen monitor. In turn, the operator has an enhanced experience, reducing troubleshooting time and providing customers an opportunity to take proactive measures to maintain fleet life.

The company also recently released a new brushcutter attachment that can be adapted for use with its Kershaw Model 60 Ballast Regulator, specifically to handle vegetation management.

For winter months, Progress Rail offers attachments to convert its Kershaw Ballast Regulator into a snow removal machine.

Having multiple attachment options

provides customers increased flexibility by improving their ability to utilize their equipment for multiple jobs.

Progress Rail has also launched a website dedicated to all Kershaw machines.

Customers can search for machine-specific parts, build parts wish lists and view images of each individual part to ensure accuracy during ordering.

Progress Rail also conducted major initiatives for its m/w product line, such as fully redesigning all ballast components on its Kershaw Ballast Regulators. The company introduced a full line of carbide wear components intended to extend the life of ballast components and reduce machine life-cycle costs.

Railroads continue to seek ways to improve reliability, while simplifying common work related tasks, the company notes. This includes culling additional feedback from its machine systems to aid in troubleshooting, and having the ability to store manuals electronically on the machine.

VANCER recently introduced the Vancer Cemented Ballast Cribber attachment to its line of specialty railroad maintenance-of-way attachments.

The Vancer Ballast Cribber is designed to remove compacted and cemented ballast in a single swing, providing operatorenhanced spot maintenance on track lines, the company notes. Featuring clamps that attach to the rail to ensure precise targeting of ballast removal, the cribber can accommodate various rail profiles with its adjustable rail clamp height.

Vancer also takes into account the serviceability and upkeep of its attachment lineup. The ballast cribber, for example, has been developed with heavyduty cylinders for durability in the field, and also encompasses removable teeth for easy replacement.

Additionally, the ballast cribber has the ability to couple to a wide variety of rail maintenance equipment, making it useful for difficult ballast maintenance problems on main lines and secondary lines.

GET THE INSIDE SCOOP ON & OFF THE TRACK

RAIL BRIEF

The Weekly RT&S Email Newsletter Subscribe at: www.rtands.com/RailBrief

November 2018 // Railway Age 41

railwayage.com RTS_RailBriefAd_QuarterPage_Final.indd 1

1/9/18 12:20 PM

People / 100 years / Events DECEMBER 13, 2018

Michael Miller

Big Data in Railroad Maintenance Planning

Genesee & Wyoming

High profile: Genesee & Wyoming Inc. has implemented multiple

organizational changes, including the promotion of Michael Miller to President-North America. All seven leaders of the company’s North American operating regions, as well as the Chief Commercial OfficerNorth America, now report to Miller, who previously served as CCO since joining GWI in 2010. David Brown will continue as Chief Operating Officer, overseeing the safety, mechanical, engineering, dispatch, service design and customer service departments in the U.S. He will also maintain operating oversight of GWI international operations in the U.K./Europe, Australia and Canada. Prior to joining GWI in 2012, Brown served as Executive Vice President and COO of CSX. Mike Peters has been promoted to CCO-North America, and leads GWI corporate commercial, industrial development, real estate, fleet management and commercial support teams. He previously was Senior Vice President Industrial Development and Real Estate.

T

he Association of American Railroads has appointed Adrian Arnakis as Senior Vice President of Government Affairs. She had worked as Deputy Staff Director for the U.S. Senate Committee on Commerce, Science and Transportation under Chairman John Thune (R-S.Dak.).

The US High Speed Rail Association selected Dan Richard as the new Chair of the USHSR Advisory Board. He succeeds Rod Diridon Sr., who has served as Advisory Board Chair since 2011. Diridon will remain as Chairman Emeritus of the Advisory Board. Richard, an attorney, serves as Chair of the California High Speed Rail Authority, having been appointed by Gov. Jerry Brown in 2012.

CSX Board Chairman Edward J. Kelly III announced his retirement effective Jan. 1, 2019. Kelly has been a board member since 2002, and became Chairman in March 2017.

The Board elected John J. Zillmer as Chairman, effective upon Kelly’s retirement.

WSP USA has promoted Lindsay Wood to Transit and Rail Market Lead for the company’s Texas-Mountain region, from her prior role as Transit and Rail Manager, Texas, in which she led project and technical services roles for such clients as Capital Metro, Central Texas Regional Mobility Authority, Texas Department of Transportation, Dallas Area Rapid Transit and the Gulf Coast Rail District.

Chief Executive Art Leahy announced his retirement from the Southern California Regional Rail Authority. The Metrolink Board appointed General Counsel Don Del Rio and Chief Financial Officer Ronnie Campbell as interim co-CEOs. Leahy, 69, joined Metrolink after leading Los Angeles County Metropolitan Transportation Authority as CEO.

100 years ago in railway age gazette November 1918 Navy Guns Mounted on Railway Cars Heavy naval guns originally intended for new battle cruisers … [have been] recommended to be placed on railway mountings for land service with the armies of France. The entire mount is covered with 1,600 square feet of armor plate. By shifting the position of the gun-mount on the tracks, the gun can be brought to bear on any desired target. The first gun, mounted complete, left the Baldwin Locomotive Works shops for the Army proving ground at Sandy Hook, N.J.

42 Railway Age // November 2018

University of Delaware-Newark https://outreach.engr.udel.edu/ professional-development/conferences/ big-data-in-railroad-maintenanceplanning/

january 6-9, 2019

NRC-REMSA Conference & Exposition J.W. Marriott Marco Island, Marco Island, Fla. http://www.nrcma.org/ conference_exhibition

JANUARY 8, 2019

Western Railway Club Union League Club Chicago, Ill. http://www.westernrailwayclub.org/ railway-meetings.htm

january 22-24, 2019

AAR’s 31st Quality Assurance Auditor and Industry Conference New Orleans, La. https://www.railwayage.com/event/ aars-31th-quality-assurance-auditorand-industry-conference/

JANUARY 24-25, 2019

15th Annual Southwestern Rail Conference Magnolia Hotel – Park Cities/SMU Dallas, Texas http://ctr.utk.edu/CTRrailcourses/ railclass.php?id=513&loc=1

MARCH 12, 2019

NEXT-GEN FREIGHT RAIL, presented by Railway Age Union League Club, Chicago, Ill. https://www.railwayage.com/ngfr/

june 5-6, 2019

Rail Insights 2019, presented by Railway Age Union League Club, Chicago, Ill. https://www.railwayage.com/insights/ railwayage.com

A world of railway market intelligence at your finger�ps Malaysia

CHILE

Australia

Britain Korea GERMANY Sweden China Japan Peru Canada Brazil AUSTRIA Saudi Arabia Russia FRANCE Poland Spain Morocco Belgium Bangladesh

Egypt

SERBIA

Myanmar

Tunisia

VIETNAM

Kazakhstan

Cuba

Hong Kong

SRI LANKA

Panama

ISRAEL

Philippines

Czech Republic

Ethiopia GHANA

Ukraine New Zealand Azerbaijan Norway

Tenders

Projects

Fleet

With con�nually updated and searchable content, IRJ PRO gives you a unique and up-to-date perspec�ve on investment in new railways and rolling stock

To find out more visit irjpro.com or email cp@railjournal.co.uk

IRJ PRO

Products Get a Move on with Rail Mover™ Nu-Star’s line of Power Pusher electric tugs provide a safe, cost-effective way to move heavy railcars. Several models are available for moving rolling stock from a quarter-ton to 225 tons.

Power Pusher’s Rail Mover™ industrial electric tugs enable a single person to safely move 45 to 225 tons, and operate on or off the rails for easy maintenance of railcars.

Remote control operation is available for effortless maneuvering.

The Super Power Pusher™ has the push/ pull capacity necessary to overcome extremely heavy or high rolling resistance loads, delivering the ability to maneuver railcars up to 250,000 pounds. Power Pusher’s Railroad Attachment™ easily pulls trucks out from under railcars. The connection is positive locking and also lined with plastic to eliminate steel-on-steel contact while ensuring that the truck doesn’t slip away.

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

RAIL GROUP From RAILWAY AGE, Railway Age,RT&S RT&S and and IRJ IRJ NEWS www.railwayage.com/rgn ROUND-UP of NEWS STORIES FROM:

44RA_RailGroupNews_Half_InGear.indd Railway Age // November 20181

7/18/17 10:27 AM railwayage.com

Products Railroad Software Aids HOS Compliance, Rail Yard Tracking RAILROAD SOFTWARE offers the improved, Federal Railroad Administration-integrated compliance software, TrackHOS, for Class I and short line railroads. TrackHOS keeps track of Hours of Service Law regulations within the application in order to generate employees’ time reports and provide alerts for violations to the FRA. The application meets the requirements for FRA 49 CFR § 234.315 for electronic record-keeping.

As the industry shifts to newer technology and innovations, Railroad Software is an enterprise-level application that is intuitive, user-friendly, and accessible through mobile devices. “The focus for TrackHOS was to give train, signal, and dispatcher employees easy access to time entry from their mobile devices and web browsers. For administrators we sought to provide a simple yet robust management dashboard to make better business decisions and compliance reporting,” says company CEO Jeff Birmingham.

The company’s Rail Yard Inventory Software enables users to know where every rail car is all the time, regardless if customers are using AEI Tag readers or relying on a switching crew. Managing of railcar locations within the rail yard details is simple and fast using a webbased or tablet application. The dashboard provides the ability for operators and customers of the operator to quickly see the state of the rail terminal facility; quickly view railcars by status and type; see a live aging report to support the management of demurrage charges; comments specific to current condition of rail yard, and a summary table by status and pool ID, commodity, or destination.

Based out of Cumming, Ga., Railroad Software currently manages more than 200,000 railcars through its RTMS product in addition to managing FRA compliance through its TrackAsset and TrackHOS products. Company founder Jeff Birmingham’s roots run deep within the railroad industry. A fifth-generation railroader, he inherited his family’s experience owning and operating railroad properties.

railwayage.com

November 2018 // Railway Age 45

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.

WE START IT ALL

6750 West Loop South St. 735, Bellaire, TX 77401

3324RR STARTS ENGINES UP TO 3500HP

PROFESSIONAL DIRECTORY

strAteGic PLANNiNG: • Commuter rail tranSitionS • fra ComplianCe programS • operationS auditing

3370RR STARTS ENGINES UP TO 6000HP

Kansas City Office (913) 661-2424 oPerAtioNs trAiNiNG & coNsULtiNG: www.tcsrailservices.com • engineer training & CertifiCation other services: • exCellent HiStory witH fra, ntSB • Staffing • interim management • meCHaniCal & part 238(Qmp)

214RR HEAVY USAGE STARTING

Empoyment

FOR MORE INFORMATION VISIT

E

R

IC

A

www.STARTPAC.com M

A

D

E

IN

A

M

OR CALL TOLL FREE 844.901.9987

RAILWAY AGE A4.indd 1

Available for Lease

07/07/2017 09:15

3000 cu ft Covered Hopper Cars 4650 cu ft Covered Hopper Cars 4300 cu ft Aluminum Rotary Open Top Gons 65 ft, 100-ton log spine cars equipped with six (6) log bunks 60 ft, 100 ton Plate F box cars, cushioned underframe and 10 ft plug doors 50 ft, 100 ton Plate C box cars, cushioned underframe and 10 ft plug doors 26,671 Gallon, 263k GRL, NC/NI Tank Cars Contact: Tom Monroe: 415-616-3472 Email: tmonroe@atel.com

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

ALL MAJOR CREDIT CARDS ACCEPTED 46 Railway Age // November 2018

(713) 667-0406 www.ednarice.com info@ednarice.com

(Opening in Chesapeake, VA) Track Measuring Systems Engineer: Design & construct Track Measuring hardware, interfaces, & networks according to customer’s specs & Dept Manager’s Track Recording & Research (TR&R) interpretation. Prepare Hardware & S/W documentation. Work directly with S/W engineering staff to develop hardware & S/W interfaces. Set up measuring system S/W and verify results for proper functioning of measuring systems.

Ensure correct documentation of systems & changes in manuals & drawings. Oversee sourcing & production of TR&R products including Automatic Geometry Guidance System (AGGS) & Optical Gage Measuring System (OGMS) boards, OGMS hardware, & Compact Flash (CF) disks. Maintain parts lists for TR&R Track Measuring hardware delivered. Track shop orders & TR&R part lists. Conduct field testing of new products. Troubleshoot & service systems in the field. Reqs 10% domestic travel & 10% international travel.

Reqs MS in Electrical Engr, Industrial Engr, Mechanical Engr, Engr Physics, or related & 2 yrs exp OR BS in same & 5 yrs prog exp.

2 yrs must include exp with use & calibration of turnout measuring systems, preparing measurements to enable tamping machine guidance from measuring car data, designing digital filters, analog data acquisition, data analysis for repeatability & reproducibility, mechanical aspects of measuring system installation, & Matlab S/W. Send resume to Plasser American Corp.

2001 Myers Rd., Chesapeake VA 23324.

Southeastern Regional Account Executive Geismar North America, Inc. A subsidiary of The Geismar Corporation SEE THE FULL JOB POSTING AT RAILWAYAGE BOARD.COM JOB

railwayage.com

Ad Index Company

Phone #

513-419-622

bombardier transportation

Fax #

URL/Email Address

Page #

maryanne.roberts@rail.bombardier.com

215-441-1269

25 23

dagle electrical construction 561-743-7373

561-743-1973

SBolte@danella.com

20

dixie precast

770-944-1930

770-944-9136

fbrown142@aol.com

41

genesee & Wyoming inc

203-202-8900

203-656-1092

corpcomm@gwrr.com

26

georgetown rail equipment

512-869-1542

512-863-0405

bachman@georgetownrail.com

37

greenbrier companies the

800-343-7188

503-684-7553

gbrx.info@gbrx.com

11

danella rental systems

herzog railroad services inc

816-385-8233

jhansen@hrsi.com

38

loram maintenance of way

763-478-6014

763-478-2221

sales@loram.com

C2

ltk engineering

215-641-8826

215-542-7676

tfurmaniak@ltk.com

33

973-344-0700

973-344-5891

edward.russnow@macproducts.net

13

315-786-5431

315-786-5676

Janice.Pfeil@nyab.com

3

mac products new york air brake next-gen-freight

212-620-72224

212-633-1165

jchanlon@sbpub.com

9

bsanders@tomlinsongroup.com

40

plasser american corp

757-543-3526

757-494-7186

plasseramerican@plausa.com

C4

Progress Rail A Caterpiller Co

256-505-6402

256-505-6051

info@progressrail.com

34

Eyal@railenterprisegroup.com

12 21

ontario trap rock

800-449-4244

rail enterprise group

617-388-3446

railquip inc

770-458-4157

770-458-5365

sales@railquip.com

Rails co

800-21-RAILS

973-763-2585

gburwell@railsco.com

12

railway supply institute

502-327-7774

502-327-0541

rssi@rssi.org

24

RCE Equipment Solutions Inc

866-472-4510

630-355-7173

dennishanke@rcequip.com

39

railway educational bureau

402-346-4300

SIEMENS-RAIL AUTOMATION

412-944-6533

town & country crossing

636-227-8226

trainyard tech llc

724-443-8881

virginia department of rail

804-786-4440

402-346-1783 636-686-9194

bbrundige@sb-reb.com 19,27,35 amanda.weir@siemens.com

C3

jnewman@tccortho.com

29

cra2@zooninternet.net

31

DrptPR@drpt.virginia.gov

26

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

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

railwayage.com

AR, AK, AZ, CA, CO, IA, ID, IL, In, KS, LA, MI, MN, MO, MS, MT, NE, NM, ND, NV, OK, OR, SD, TN, TX, UT, WA, WI, WY, Canada – AB, BC, MB, SK Heather Disabato 20 South Clark Street, Suite 1910 Chicago, IL 60603 (312) 683-5026 Fax: (312) 683-0131 hdisabato@sbpub.com The Netherlands, Britain, France, Belgium, Portugal, Switzerland, North Germany, Middle East, South America, Africa (not South), Far East (Excluding Korea /China/India), All Others, Tenders Louise Cooper International Area Sales Manager The Priory, Syresham Gardens Haywards Heath, RH16 3LB United Kingdom +44-1444-416368 Fax: +44-(0)-1444-458185 lc@railjournal.co.uk

Scandinavia, Spain, Southern Germany, Austria, Korea, China, India, Australia, New Zealand, South Africa, Russia, Eastern Europe Baltic States, Recruitment Advertising Michael Boyle International Area Sales Manager Nils Michael Boyle Dorfstrasse 70, 6393 St. Ulrich, Austria. +011436767089872 mboyle@railjournal.com Italy, Italian-speaking Switzerland Dr. Fabio Potesta Media Point & Communications SRL Corte Lambruschini Corso Buenos Aires 8 V Piano, Genoa, Italy 16129 +39-10-570-4948 Fax: +39-10-553-0088 info@mediapointsrl.it

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

AILWAY GE November 2018 // Railway Age 47

Perspective

Let’s Stop Whining and Start Winning

P

olicymakers and rail passenger advocates alike whine about Amtrak issues, yet offer no viable solutions.

Amtrak’s latest band-aid approach to fiscal responsibility is to reduce its food service options and intentionally cause long-distance train revenues to decline by increasing ticket prices to a point that ordinary people can neither afford nor are willing to pay.

This strategy risks accelerating Amtrak’s demise. Amtrak’s survival is dependent on its long-distance trains. In Amtrak’s FY 2018 General and Legislative Annual Report, former President and Chief Executive Wick Moorman stated that Amtrak’s long-distance trains were projected to contribute more than $400 million to Amtrak’s bottom line, and that without those revenues, Amtrak would “require more funding from Congress and Amtrak’s partners rather than less.”

Furthermore, the great majority of Amtrak’s congressional support comes from members whose districts are served by Amtrak.

Without that congressional support, Amtrak would not survive.

Congress can barely fund Amtrak at current levels, let alone at required levels. As a senior Democratic Senate staffer observed, “Amtrak’s funding model is dead.” So, what is Amtrak doing? It’s reducing its longdistance services’ financial contributions and ignoring Wick Moorman’s observation.

But even were Amtrak to fully “liberate” itself of its long-distance trains, Amtrak would still bear the high maintenance and capital costs of its owned rail infrastructure. Amtrak intends to mitigate these costs by making commuter carriers and states pay more, but there is only so much blood one can squeeze from a stone.

Meanwhile, Amtrak, a government entity needing tens of billions of dollars just to fund the Gateway trans-Hudson tunnels and associated bridges, is more concerned about maintaining control than encouraging Congress to entertain the use of a public-private partnership (PPP)—a proven funding alternative. It seems that Amtrak prefers to pander for grants and never-to-be-repaid “loans” from the federal government and to try to leverage funding

48 Railway Age // November 2018

from New York and New Jersey—neither state flush with excess funds.

We are clearly approaching a tipping point. But, even if Amtrak’s status quo is crumbling, what is a viable option?

The answer: a legislative proposal called American Intercity Rail Network for the 21st Century, or AIRNet-21 (www. airnet-21.com).

AIRNet-21 is an innovative PPP with a unique design. Its elements are bipartisan in nature, and it involves no selling-off of government (Amtrak)-owned assets. It puts infrastructure management in the hands of infrastructure specialists, but makes those specialists subject to government oversight. It returns Amtrak to its pre-1976 role as a passenger-services-only operator. It removes from Amtrak the need to beseech Congress and the states for funding to maintain its owned rail infrastructure, and also removes the Northeast Corridor infrastructure cost allocations from Amtrak’s national network trains.

AIRNet-21 guarantees that, during the 50-year lifespan of the PPP, close to $100 billion of private-sector money will be invested in Amtrak’s owned NEC and Midwest infrastructures to bring them beyond a state-of-good-repair. It immediately furnishes $1 billion to Amtrak, which it could use for new passenger cars and locomotives. It funds the Gateway Hudson River tunnels and bridges, a new Baltimore tunnel and a new Susquehanna River bridge, an upgraded traction power system, and numerous other major stateof-good-repair programs. It restricts when and how much money the private partner may extract from the venture, but allows it to profit if it successfully turns around the infrastructure.

Most interestingly, it appears that AIRNet-21 will score well and may actually make a budgetary contribution in excess of $8 billion, which appropriators can use to pay for other federal priorities.

So, what’s the magic here? There really is no magic. The keys to making Amtrak’s owned infrastructure an opportunity as opposed to a burden are greater utilization; new, more frequent and different types of services; greater market segmentation, and

airnet-21 guarantees close to $100 billion of privatesector money.” competitive pricing.

Whining about Amtrak’s current dilemma achieves nothing. I played a key role at Amtrak during its formative years, but a new century requires a new approach.

The only thing preventing the implementation of AIRNet-21 is Congress enacting the needed legislation. Let’s start winning by working together to implement AIRNet-21, and revitalizing Amtrak to provide modern, energy-efficient and consumer-friendly transportation in the 21st century.

Robert VanderClute, prior to becoming principal of FirstRail International, LLC (a rail consulting firm with expertise in freight, intercity and commuter rail services), was Senior Vice President-Safety and Operations with the Association of American Railroads and Vice President-Operations and Chief Operations Officer of Amtrak, where he was responsible for Amtrak’s day-to-day operations. VanderClute, a graduate of the University of Tennessee (transportation major), completed graduate school programs at the Darden Graduate School of Business (University of Virginia) as well as the Harvard Business School. He is a recipient of Railway Age’s W. Graham Claytor Award for Distinguished Service to Passenger Transportation.

ROBERT VANDERCLUTE Principal, FirstRail International, LLC

railwayage.com

Shaping Connected Mobility Starts with People We believe that even the best innovations can’t succeed unless they are supported by strong employees that work collaboratively on our combined success. Marsha Smith is a shining example and we congratulate her on receiving this year’s Women in Rail Award.

usa.siemens.com/rail-automation

HIGH CAPACITY I PRECISION I RELIABILITY

The standard of ballast bed cleaning Saving time and resources, assuring high quality cleaning and offering flexibility in operation: that is Plasser’s philosophy for economical ballast cleaning. The most important foundation for sustainable track geometry is a faultless, straight formation. To produce this, the Plasser ballast cleaning machines for tracks and switches are equipped with an excavating chain in a transverse cutter bar - adjustable precisely to the required excavating depth and formation crosslevel.

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