Crossties
LT Resources’ TieTek ties are manufactured to meet AREMA standards using premium recycled materials to provide solid performance and extended service life in severe environments.
32 Railway Track & Structures // October 2019
air-dried inventory our work will be cut out for us not only continuing to ramp up white tie supply, but also managing inventories and treating plant production to reach equilibrium.”
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With weather giving producers a break we are beginning to see increases in white tie supply inbound to our treatment plants.
However, if tariffs continue to be an issue the economy could slip and demand could be facing the worst-case scenario. Data shows in July tie production expanded at an annual rate of 12.1 percent and purchases fell at an annual rate of 6.4 percent. Inventory’s 12-month moving
average dropped by 20.6 percent from 2018 levels, while inventory-to-sales 12MMA went from 0.75 percent to 0.66 percent. Koppers Koppers’ new initiative, the Crosstie Lifecycle Management program, provides railroads with an environmentally responsible, single-source solution to optimize their crosstie ROI throughout every phase of the crossties’ lifecycle. From raw material quality control through energy recycling of scrap crossties, Koppers maximizes performance with effective cost control and risk management. It begins with total quality control through raw timber management and manufacturing of preservatives. The dual pressure treatment process using Borate and Creosote guarantees accurate, measurable, and repeatable preservative retention levels to meet customer expectations and maximize crosstie service life in all decay zones. At the end of service life, scrap crosstie enter the final phase—recycling/fuel processing. Timely collection and transport of scrap ties to Koppers’ facility reduces the liability, safety, and rtands.com
Photo Credit: LT Resources, Inc.
2019, and is projecting a 1 percent growth in 2020 of 22,991. In a best-case scenario, new wood crossties total purchases will bump up 1.3 percent at 22,983 in 2019 and 2.4 percent in 2020 at 23,532. Worst-case scenario shows total purchases being down 3.7 percent (21,857) in 2019 and .4 percent (21,770) in 2020. “Our economic forecasting model suggests that 2020 will be very much a mirror image to 2019 for investments in crossties,” Jim Gauntt, executive director for the Railroad Tie Association, told RT&S. “That does not mean it will not be a big year for crossite producers.” The spring flooding in the Midwest and a pent-up unfilled demand in the U.S. economy might have new wood crossties looking at the more positive scenario in 2019. At least two major railroads reported damage to infrastructure early in 2019 and that may have created a higher demand for ties. “With weather giving producers a break we are finally beginning to see increases in white tie supply inbound to our treating plants,” said Gauntt. “Since we are so far behind the supply curve for building