Freight Tracks issue #11

FREIGHT CARGO-PARTNER CHINESE EXPANSION TRACKS

UKRAINE: CALL FOR ACTION

JULY 4 2022

#11

NESTLE ECO DOUBLE-STACKS

UNCLE SAM: RIDIN’ THE RAILS

MISTER ED: OVER THERE

CONTENTS JULY 4 2022

#11

NEWS

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THE FREIGHT TRACKS PROFILE

TOO MANY CARLOADS, NOT ENOUGH RAIL WORKERS

Over There, Over There

REGULARS

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HEADLINE NEWS Nestle unveils double-stacking World Bank makes loan to Indian Railways EU-Ukraine logistics call to arms

review 38 news TX Logistics gains safety Getlink: strong growth cargo-partner expands in China

the Date 46 Keep Railway industry events Cover photo: Uncle sam: Ridin’ the Rails

Publisher & Editor: James Graham

If you have any stunning photos of freight trains you might like to see on the cover, send them to freighttracks@gmail.com

Editorial support: Kim Smith

editor@freight-tracks.com

Designer: Alex Brown freighttracks@gmail.com

Sales Manager: Martin Kingswell Sales Executive: Peter Dolan Webmaster: Natasha Antony Contributors: Neil Madden, Chris Lewis, Stuart Flitton, Johnathan Webb. Will Huskisson

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Copyright: 1435 Media London 2022 1435 Media London 259 Sydenham Road Croydon CR0 2ET United Kingdom

Press releases: editor@freight-tracks.com www.freight-tracks.com July 4 2022 n 3

news review

The Art of Railway Publishing

UT NOW:

This no holds barred book looks at incidents, some Funny Thing Happened humourous, some rather the Train to London less so, that have happened mited edition during the rail commute into London over the years.

www.chimewhistle.com info@chimewhistle.com

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THE FREIGHT TRACKS PROFILE

Ridin’ the rails

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ccording to the American Association of Railroads (AAR), whether selling and building automobiles and houses, powering businesses or enabling manufacturers to reach new customers, American industries rely on freight rail to get raw goods and www.freight-tracks.com July 4 2022 n 5

US RAIL FREIGHT THE FREIGHT TRACKS PROFILE products to market in the US and beyond. The net impact is profound, with railroads triggering a powerful economic effect across myriad US industries. Railroads make consistently high investments, and the results are impressive: High-paying industry jobs; additional industry-supported jobs; industry and consumer connection to the global market; and local community growth from sizeable funds infused into the market and government budgets.

These benefits come at a savings of billions of dollars each year for taxpayers because America’s freight railroads operate overwhelmingly on infrastructure that they own, build, maintain and pay for themselves.

Two names

In producing a profile of US rail freight in the 2020s, two names must be mentioned. One was a politician and one was a businessman of great renown. Harley Orrin Staggers Sr – 1907-1991 – and Malcolm Purcell McLean – 1913-2001. These two men propelled the US rail freight in directions they may not have intended. Born just six years apart, both lived very long lives that ended just ten years apart. It is not known if they ever met.

Harley Staggers (Democrat - West Virginia) who promoted the Staggers Rail Act of 1980, a United States federal law that deregulated the American railroad industry to a significant extent,

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replacing the regulatory structure that had existed since the Interstate Commerce Act of 1887, almost a century before.

The Staggers Act allowed a rail carrier could establish any rate for a rail service unless there was no effective competition for rail services.

Rail shippers and rail carriers were allowed to establish contracts subject to no effective review unless it was determined that the contract service would interfere with the rail carrier’s ability to provide common carrier service.

Malcolm Purcell McLean (November 14 1913 – May 25 2001) - later known as Malcom McLean - was a businessman and transport entrepreneur who developed the modern intermodal shipping container, which revolutionsed transport and international trade in the second half of the twentieth century.

Containerisation led to a significant reduction in the cost of freight transportation by eliminating the need for repeated handling of individual pieces of cargo, and also improved reliability, reduced cargo theft, and cut inventory costs by shortening transit time. The enormous 15,000 ft high speed BNSF intermodal double stack freight train in the California desert that keeps you waiting for minutes to cross the line is his legacy.

A third name, not that of a person, must also be mentioned. Created in 1971, the National Railroad Passenger Corporation, doing business as Amtrak, is a passenger railroad service that provides medium and long-distance inter-city rail

US RAIL FREIGHT THE FREIGHT TRACKS PROFILE service in the contiguous United States and to nine cities in Canada.

This move released the struggling railroad companies of the time to concentrate on rail freight by taking the unprofitable passenger services off their books.

Third decade of the 21st century

In this, the third decade of the 21st century, key takeaways from the American Association of Railroads (AAR) clearly demonstrate how far the freight railroad in the US has come since the Bal-

timore and Ohio Railroad became the first common carrier railroad and the oldest railroad in the United States on opening in 1830.

The AAR points out that the vast majority of America’s freight railroads own, build, maintain, operate and pay for their infrastructure with little or no government assistance. From 1980 to 2021, America’s freight railroads spent nearly $760 billion — well above $20 billion a year — on capital expenditures and maintenance expenses. These include locomotives, freight cars, tracks, bridges, tunnels and other infrastructure and equipment.

Smart public policy allows railroads to earn the revenue they need to maintain and modernise their nearly 140,000-mile rail network.

Average US freight rail rates (measured by inflation-adjusted revenue per ton-mile) are 44% lower today than in 1981. This means the average rail shipper can move much more freight for

about the same price it paid more nearly 40 years ago. These cost savings help American businesses stay competitive in the global economy. Railroads also haul one-third of all US exports.

Railroads are committed to addressing climate change. Investments in sustainable technologies have improved freight car designs while more efficient locomotives have reduced energy consumption, pollution and greenhouse gas emissions.

Railroads can move one US ton of freight an average of nearly 500 miles per US gallon of fuel.

They are three to four times more fuel efficient

than trucks. That means that moving freight by rail instead of trucks reduces greenhouse gas emissions up to 75% on average.

Freight Rail Policy Stance

The AAR suuport the idea that freight railroads support free and fair trade. International trade, facilitated largely through free trade agreements, has benefited the US economy. American businesses and major rail shippers — including automobile makers, energy producers, agricultural growers and even beer makers — need the certainty and benefits of tariff-free trade across North America to keep delivering for the American people.

Railroads oppose policies that restrict access to global markets, including the application of tariffs that impose additional costs to rail ship-

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US RAIL FREIGHT THE FREIGHT TRACKS PROFILE pers and industry business operations. When US companies — such as freight rail customers — have access to global markets, businesses and customers, Americans gain access to a greater variety of goods at a lower cost.

Short of track, not ambition

For all the two-mile long intermodal operations, entrepreneurial owners operate some 600 short line and regional railroads throughout North America. These play a vital role in the hub-andspoke transportation network, often providing the first-mile/last-mile connection between farmers and manufacturers and the ultimate consumer, says the American Short Line and Regional Railroad Association (ASLRRA).

Short line and regional railroads are known by the “first and last mile” mantra. Short lines might be small pieces of the overall freight rail puzzle, but they bring everything together and complete the picture. Short lines are the final link between suppliers and customers needing critical goods, says the ASLRRA. Its members stepped up during the COVID-19 pandemic as essential employees, running 24/7 to serve thousands of shippers. Members shipped pharmaceutical salt, isopropyl alcohol, propylene glycol and sodium hydroxide, all of which are common ingredients in cleaning and personal hy-

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giene products used by hospitals and other facilities, along with hundreds of retail products, and important commodities to manufacturing Taken together, US short line railroads operate 50,000 miles of track or nearly 40% of the national railroad network and handle in origination or destination one out of every four rail cars moving on the national system. They have grown from 8,000 miles of track in 1980 to 50,000 miles today and operate in nearly every US state In five states, short lines operate 100% of the state’s total rail network, and in 15 states they operate more than 50% of the railroad network.

Today’s short lines come in all shapes and sizes.

Some are members of rail holding companies, some are large regional entities, and many are small, family-owned businesses. Together they represent a diverse, dynamic and entrepreneurial collection of small businesses that are aggressive and agile companies that make wise use of resources available to them. They employ a skilled, productive workforce, offering them a good quality of life and they place considerable emphasis on training that workforce to be as safe as possible. Above all, they are aggressive marketers that fight as hard for single carload business as they do for unit trains. And that fight for business helps keep transportation costs as competitive as possible — which is good for customers and ultimately for the nation’s consumers.

US RAIL FREIGHT Our Texas rail correspondent Peter J Lecody, President, Texas Rail Advocates, kicks off our report with a personal overview of the current US rail freight industry

TOO MANY CARLOADS AND NOT ENOUGH RAIL WORKERS T

hat’s the case across the US as Class 1s and some short lines still struggle to fill positions after cutting thousands of positions in 2020 when the pandemic dealt a blow to rail freight movements.

Rail employment has continued to plummet from over 180,000 full-time workers in early 2019 to near 146,000 in May 2022, according to the US Bureau of Labor Statistics.

An upswing in hiring among the big boys will still take time to digest as new over-the-road crew members are hired, trained on rules and regulations and qualified to run in their operating subdivisions.

In addition to Class 1s scrambling to find new employees, weather events, derailments, speed restrictions and having equipment in the wrong place at the wrong time is playing havoc in operations.

Traffic has gotten so congested that BNSF Railway issued a limited temporary embargo on June 29 affecting westbound traffic from 14 mid-US states barrelling toward California. Until July 31 permit requests must be submitted one week prior to the desired shipment date, according to BNSF. The railroad indicated that its goal is to hire about 1800 train, yard and en-

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TOO MANY CARLOADS AND NOT ENOUGH WORKERS gine employees by the end of 2022. Union Pacific Railroad said that it has already hired about h 1400 new employees it expects to train this year.

In Mid-June the Surface Transportation Board issued an emergency service order to Union Pacific, directing the railroad to move unit trains of corn from the Midwest to California. Foster Poultry Farms filed an emergency petition with the STB stating that hundreds of thousands of cattle and chickens were dependent on consistent rail deliveries of feed corn from UP. “Service failures had impacted Foster Farms ability to serve the public.” according to the company. UP indicated it would prioritise and move an additional unit train into service and monitor the service on a daily basis.

The Texas Rail Advocates website reported in April that railroads are having a tough go with supply chain hiccups across the country and Texas is not immune to the consequences. In a letter to the Surface Transportation Board, Kansas City Southern (KCS) indicated that congestion in the Houston region is an urgent issue and is hurting its cross-border traffic. Much of the mileage to get between South Texas and the Beaumont area is either on BNSF or Union Pacific lines, citing Houston as a major choke point.

In the STB filing, KCS Vice-President-Operations John F Orr wrote: “To help resolve the Houston congestion problems, KCS has actually offered its crews on several occasions to move BNSF and UP trains that lacked crews off the main line so that KCS trains can pass. We have also moved our interchange with BNSF for some auto traffic from the Robstown/Corpus Christi area to Rosenberg, just west of Houston, so BNSF has to expend fewer crews from their over-taxed crew base.

“There may be other ways to help resolve the problems in Houston,” according to the STB letter.

TheHillcom quotes Greg Regan, President of the AFL-CIO union’s Transportation Trades Department as saying: “The most important reason why the railroad leg of the supply chain failed over the last year and a half is the fact that they didn’t have the workforce or the equipment to be able to deal with the demand for goods.”

Containers at ports continue to pile up because of worker shortages and an imbalance of intermodal boxes. Rail containers at the ports of Los Angeles and Long Beach waited an average of 11 days in May before they were loaded on intermodal trains, according to the Pacific Merchant Shipping Association. That’s three times longer than at the start of 2022.

However, freight rail is not the only transportation segment suffering from a lack of employees.

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, The UK’s 1980s American rail freight revolution JONATHAN WEBB LOOKS AT AN AMERICAN RAILROADER WHO CROSSED THE POND

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he 1980s was a turbulent time for UK rail freight.

The early part of that decade saw the nationalised British Rail (BR) facing a dire financial situation.

BR managers and government transport officials turned to an unlikely saviour - an American railroad executive.

Edward Arnold Burkhardt was a significant railroad executive, the founder and current chairman of Rail World Inc. Following passage of the Staggers Rail Act, on April 3 1987, Burkhardt led a group of money men in buying the Lake States Transportation Division of the Soo Line Railroad With Thomas F. Power Jr., former chief financial officer at the Milwaukee Road, this purchase created the new Wisconsin Central Transportation Corporation.

The first WC train ran from Stevens Point to North Fond du Lac, Wisconsin on October 11 1987. Burkhardt served as chairman, president and chief executive officer of the company for 12 years.

The move to the United Kingdom by Burkhardt brought another strategic foreign input into the world’s oldest rail

freight network - Canadian-built freight locomotives that still operate today.

US railroad acumen

The move to bring Burkhardt over was about bringing private sector US railroad acumen to Britain’s troubled rail freight sector.

So what problem was he meant to solve? Much of the problem facing BR was due to an economic recession, and as it dragged on, hundreds of redundant freight locomotives were placed into store – many of them just turned off with no faults.

Although some did return to service, the vast majority were scrapped. If someone had suggested than that rail freight had a bright future – let alone a bright future with an American company – they would have been thought quite mad.

By the 1980s, with recorded losses of £28 million in 1989/90 and £51 million in the following 12 months (£55

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OVER THERE, OVER THERE million and £100 million respectively in 2022 values), the British government was putting the rail industry under intense pressure by demanding what many considered to be unrealistic financial targets. British Rail managers felt they had little option but to persuade companies to run regular train loads. If a company was unable to do so it would be priced off the network. Such freight customers unable to meet the minimum requirement suddenly saw its costs for using rail reach astronomical heights.

Wake up call

Depressing financial figures proved to be a late wake up call for BR, and in June 1994 it created three freight companied – Loadhaul, Maintrain and Transrail – as a prelude to privatisation. The three companies soon saw rail freight turn a corner and in 1996 all three were purchased by a Wincosin Central consortium, trading under the English, Welsh & Sottish name. They cost £225 million (£500 million in 2022 values). British Rail was initially reluctant to sell all three as a single unit, but lack of other bidders left BR with little choice but to concede.

English, Welsh & Sottish

On April 25 1996, the EWS brand was revealed and implemented over successive months. By the end of March 1997, it controlled 90% of the UK rail freight market, operated a fleet of 900 locomotives and 19,000 wagons, and had 7,000 employees. During the late 1990s, EWS invested heavily into rolling stock renewal, procuring a large number of British Rail Class 66 diesel locomotives, headcount was also reduced. It also acquired National Power’s open-access freight operator in April 1998. Showing that it had ambitions beyond UK rail freight, EWS had purchased the parcel and mail business Rail Express Systems for £24.2 million two months earlier. Raifreight Distribution was the final freight company to be added to the company’s portfolio – this happening in 1997. This resulted in EWS now having a near monopoly of the UK freight market, except for Freightliner which was sold for £5.4 million as part of a management buyout. Freghtliner’s precarious financial position acted as a deterrent for many – with the purchaser being gifted a £75 million track access grant to support the company over the initial five years.

The revolution begins

EWS was far from candid about the rolling stock it had in-

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66125 in EWS livery at Eastleigh hauling an up container herited – describing it as 50% life expired!

Almost immediately EWS began to look at replacing large swathes of the increasingly ageing, unreliable and

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AN AMERICAN RAILROADER WHO CROSSED THE POND

train on January 25 2008 expensive to maintain locomotives of various classes and replace them with a single class. It would, however, retain a core fleet of approximately 150 British-built locomotives

as a reserve fleet that could be ready at a moments notice.

The class 47s were high on the hit list to be withdrawn, as it was not unknown for the engine room to be awash with

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OVER THERE, OVER THERE class 66, which would be built at London, Ontario.

EWS Engineering Director Jim Fisk was looking for a locomotive with 95% availability and better route availability than the class 60s. The frames for 66001 were laid on May 18 1997, with it being completed on February 18 1998 and arriving in the UK on April 18.

The class 66 was an instant success, with Burkhardt later saying: “This locomotive revolutionised rail freight in the UK, and has since spread throughout Europe and beyond. It fulfilled our most exacting requirements and remains Europe’s best diesel locomotive.” EWS followed up its class 66 order with an order for 30 class 67s. These were mainly for use on mail trains.

Ironically, Burkhardt left EWS before the final class 66 had reached the UK’s shore. BurWisconsin Central (WC) trip to Northern Wisconsin on khardt is reported as saying that it was the April 16 1988 - Edward “Ed” Burkhardt, President of WC class 66 order that led to huge bust up with the banker-led EWS board, Ed Burkhardt bein centre lieving that the EWS board felt that the company was over committed financially and that it was more interested in sweating the existing leaking diesel and oil, which would on occasions drip onto assets.

He claimed that EWS even explored the possibilithe bogies and ignite when it came into contact with sparks ty of cancelling that part of the class 66 order that hadn’t generated by brake blocks. been delivered – but found the cancelation terms too punTheir unreliability was also a cause of concern for the ishing. The initial plan to order 500 class 66s (2x250 batchRoyal Mail, whose trains often suffered as a result. There es) never came to fruition, with an order for the second was also some disquiet over the lack of uniform compobatch never placed. nents for the wide variety of wagons – increasing the cost Burkhardt believes that failure to carry through with the of maintenance. order resulted in EWS losing significant traffic to competiThe ubiquitous class 08 switcher didn’t escape crititors Freightliner, DRS and GBRf – EWS instead focussing on cism either, with one EWS manager saying that he noticed short-term results instead of the long game. where the switcher was at a depot and if it was still in the same place a week later, it was obvious that it wasn’t needed. Burkhardt said about the inherited fleet “We quickly realised that that the majority of locomotives were overage and were frightfully difficult and expensive to keep in service . In fact, it proved impossible to keep more than two-thirds of them operational on any given day”

Enter the class 66

A single class of 250 locomotives was what Burkhardt and EWS wanted and in May 1996 it awarded a £375 million contract to General Motors for the design and build of the

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Goodbye EWS

On 28 June 2007, Deutsche Bahn announced it had agreed to purchase EWS, subject to receiving regulatory approval, for £309 million.

At the time of the acquisition, EWS had a market share of around 70% of UK rail freight, employing around 5,000 people.

The contract was completed on 13 November 2007. On 2 March 2016, DB Schenker was rebranded as DB Cargo UK, an identity it retains to this day.

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Freight railroads encourage regulator to embrace tech

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n June, US freight railroads asked policymakers in advance of a Congressional hearing to understand that rail employees and technology work together to continually improve safety and move goods. Railroads are also urging lawmakers and regulators to understand that policies that reduce rail’s competitive viability will shift goods to more carbon-intensive modes. The industry has a simple, common-sense message to the Federal Railroad Administration (FRA): let data drive policy.

The call for thoughtful public policy is in keeping with a letter AAR sent to Department of Transportation Secretary Buttigieg earlier this year in response to the agency’s very own innovation principles. It outlined how technologies like Positive Train Control, or PTC, as well as automated track inspection, or ATI, wayside detectors and fuel management systems make the network safer and greener. Railroads greatly value their workers and technology can make their work more predictable and safer.

As to wayside detectors, the FRA noted in a new report, “the work reported here shows that the wayside detection systems have performed as expected in improving the railroad fleet performance and operational safety reflected in reduction in derailment incidences.”

Through consistent investment, training and employee excellence, the train accident rate last year was down 32 percent from 2000 and the employee injury rate decreased by 48 percent.

Technology spans to other areas, such as energy use. Fuel management systems and anti-idling systems, alongside locomotive upgrades and better operating practices, have improved fuel

efficiency to a level that railroads can carry a ton of freight 500 miles on a single gallon of diesel. From 2000-2019, railroads consumed 9.6 billion less gallons of diesel and emitted 108 million fewer tons of CO2 due to innovation.

Yet existing and expected policy from the FRA raises questions about the agency’s commitment to progress and willingness to collaborate with stakeholders, such as industry. The FRA recently refused to extend the geographic scope of one railroad’s ATI program and refused to permit another’s to continue. Other waiver applications are long pending with delays beyond the historical norm, while more pilot programs will expire later this year.

The data is clear: ATI is more effective than visual inspections alone, in some cases reducing track geometry defects by 90%. Even where ATI is used, visual inspections continue, but they are not needed at the level specified

by FRA’s 50-year old inspection regulations. Slowing or stopping their use only stands to reduce investment in new safety technologies.

The industry is also concerned about a regulation to require railroads

to maintain the physical presence of two people in the cab of a locomotive with no end in sight.

The FRA sent a rule to the Office of Management and Budget in March, despite a continued dearth of data to justify such intervention.

When originally proposed in 2016, the FRA noted it did “not have information that suggests that there have been any previous accidents involving one-person crew operations that could have been avoided by adding a second crewmember.” PTC, which helps avoid the worst accidents, makes the case for freezing current operating models in perpetuity even less reasonable.

Railroads, competing in a dynamic market defined by technology, need options in the future to redeploy employees outside of the cab. As NS EVP and COO Cindy Sanborn noted in testimony: railroads “seek the flexibility to continue to work with rail labour under the existing collective bargaining framework to identify when the presence of PTC, or other technologies, allow a reduction in the number of crewmembers in a locomotive cab without jeopardising rail safety.”

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Railroad in introduces

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n March, the Association of American Railroads (AAR) hosted its Annual Research Review for more than 325 railroad professionals from around the world to learn about progress made under the industry-sponsored Strategic Research Initiatives (SRI) programme. During the morning session, the US freight railroads announced that the team they have counted on for decades to lead the industry in research, testing, and training will now be known as MxV Rail.

MxV Rail — formerly Transportation Technology Center, Inc (TTCI) — is a team of more than 300 employees, including 110 mechanical, civil, industrial, and electrical engineers and metallurgists advancing the scientific research of railroads with objective intelligence and thoughtful diligence. In service to the rail industry, MxV Rail provides a unique testing environment focused on improving rail safety, reliability and efficiency backed by a level of specialty knowledge and experience not easily duplicated.

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“The nation’s ma — both passenger a enthusiastically supp said Ian Jefferies, A and CEO, adding that continue to lead the i SRI programme.

“MxV Rail’s SRI p an important indust aims to improve all a transportation.

“The Annual Res demonstrates that M only organisation conduct this essentia new facilities,” he sai MxV Rail will con ical work at the Tr Technology Center un ing of its new faciliti Colorado this Fall. T Rail campus is desig the evolving needs o dustry and the comp client base. New faci erations will enhance search and testing o well as provide a pr for advanced techno on improving freight ty, reliability and effic

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ndustry MxV Rail

ajor railroads and freight — port MxV Rail,” AAR President t MxV Rail will industry-wide

programme is try effort that aspects of rail

search Review MxV Rail is the equipped to al work at the id. ntinue its critTransportation ntil the openties in Pueblo, The new MxV gned to meet of the rail inpany’s diverse ilities and ope industry reoperations, as roving ground ology focused railroad safeciency

“MxV Rail is poised for a successful transition to our new facilities. Part of our success is grounded in a name that communicates our purpose and demonstrates that our value and industry contributions are not dependent on a single location. Our new name, MxV Rail is based on the formula for momentum: mass x velocity, evoking our dedication to creating the momentum needed to move our industry forward,” said Kari Gonzales, MxV Rail President and CEO. “Our experts are guided by the principles of rigor, innovation, collaboration and real-world applicability that are key to helping solve the industry’s most pressing challenges — immediate and longterm.”

Located on the expansive PuebloPlex facility in Pueblo County, MxV Rail’s new location will serve as the epicentre for its research, testing and training services.

The first phase of construction is underway, and the schedule through completion will ensure service continuity.

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CP announces ratification of three new labour agreements

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anadian Pacific has announced three collective bargaining agreements have been ratified by employees of CP’s Dakota, Minnesota & Eastern South; Central Maine & Quebec (CMQ) US and Central Maine & Quebec Canada subsidiaries.

The agreements, reached on CP properties in Maine, the US Midwest (Iowa, Missouri and Illinois) and parts of Quebec, provide higher hourly wages for all employees.

They affect a total of approximately 430 employees represented by United

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Steel Workers Local 1976 on the CMQ Canada, SMART Transportation Division representing all employees on the CMQ U.S. and the Brotherhood of Locomotive Engineers and Trainmen representing all train and engine employees on the DM&E South.

“CP welcomes the ratification of these three recently negotiated agreements that bring wage increases to hundreds of our dedicated employees,” said Mark Redd, CP Executive Vice-President Operations.

“We continue to work productively

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with all of our union partners to achieve long-term agreements that meet the needs of CP’s growing business and our industry-leading railroaders.”

Major CP crew bases that fall under the agreements include Ottumwa, Davenport, Marquette and Mason City, Iowa; Kansas City, Mo.; Savanna, Ill.; Brownville Junction, Maine; and Farnham, Que. CP is hiring for various positions at all of these locations in 2022, with immediate openings available to prospective employees.

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Virginia and NS close Western Rail Initiative agreement

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he Virginia Passenger Rail Authority (VPRA) and Norfolk Southern Corporation has announced the financial closing of the Western Rail Initiative Agreement which will expand passenger rail service from Washington, DC to Roanoke, Va. and to the New River Valley.

First step

The first step in the expansion is the addition of a second Commonwealth-supported roundtrip train between Roanoke and Washington, DC which will launch on July 11, 2022. This roundtrip further connects Virginia’s Blue Ridge with Northern Virginia and points along the Northeast Corridor including New York and Boston. The agreement also includes the future extension of the Roanoke service to the New River Valley with the construction of a new station as well as track and signal improvements.“The closing of the Western Rail Agreement is great news for Virginians as this is a big step forward in our mission to expand passenger rail to the New River Valley,” said DJ Stadtler, executive director of VPRA. “Communities along the Interstate 81 and Route 29 corridors will now have more passenger rail options when travelling to and from our nation’s capital and beyond, and the improvements will also increase our economic opportunities by enhancing freight rail service through the Commonwealth.

“We thank our partners at Norfolk Southern for helping us make this a reality.”

“Today’s closing marks the future of rail in the Commonwealth of Virginia.

Together, we have reached an agreement that expands access for passengers and preserves an important link in the supply chain for businesses that

rely on freight rail to ship base materials and finished products. The partnership of our government leaders was critical to making this plan a reality and we appreciate their commitment to the people and economy of Virginia’s Blue Ridge,” said Norfolk Southern Senior Vice President and Chief Strategy Officer Mike McClellan.

With this agreement the Commonwealth, will acquire approximately 28 miles of Norfolk Southern-owned “V-line” right-of-way including existing tracks from Christiansburg to the Salem Crossovers plus the passenger easement between Salem Crossovers and the Roanoke station platform. The Commonwealth’s plans also include rail infrastructure improvements between Manassas and the New River Valley for more frequent and reliable service.

Ridership triples

The extension of passenger rail to Virginia’s Blue Ridge began in 2009 with service to Lynchburg which saw ridership triple what had been predicted in just its first year.

In 2017 the service was extended to Roanoke and ridership continued to grow with more than 220,000 passengers traveling in FFY2019 (pre-pandemic). In April and May of 2022 ridership on the Roanoke Route surpassed the record ridership of the same months in 2019.

The new Washington, DC to Roanoke roundtrip will make stops at Alexandria, Manassas, Culpeper, Charlottesville, and Lynchburg. The agreement also calls for a potential future station at Bedford.

The new service is expected to add approximately 80,000 passengers in the first year once it is extended into the New River Valley.

On a mountain in Virginia Stands a lonesome pine Just below is the cabin home Of a little girl of mine Her name is June, and very, very soon She’ll belong to me For I know she’s waiting there for me ‘Neath that lone pine tree In the Blue Ridge Mountains of Virginia On the trail of the lonesome pine In the pale moonshine our hearts entwine Where she carved her name and I carved mine Oh, June, like the mountains I’m blue Like the pine I am lonesome for you In the Blue Ridge Mountains of Virginia On the trail of the lonesome pine I can hear the tinkling waterfall Far among the hills Bluebirds sing each so merrily To his mate in rapture trills They seem to say, “Your June is lonesome, too” Longing fills her eyes She is waiting for you patiently Where the pine tree sighs

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FRA boosts spendin tresspassing and s

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he Federal Railroad Administration (FRA) will award almost $2 million in Railroad Trespassing Enforcement Grants and $207,000 in Railroad Trespassing Suicide Prevention Grants to fund law enforcement trespass prevention activities and educational outreach campaigns aimed at reducing railroad-related suicides on rail rights-of-way.

These awards represent the largest single funding announcement made in conjunction with FRA’s National Strategy to Reduce Trespassing, which includes targeted technical assistance, collaboration, and other engagement activities with stakeholders who have a role in preventing trespassing.

FRA targeted these grants towards communities and states with a high incidence of rail trespass-related incidents and casualties when selecting the 25 projects in 13 states that will receive funding.

“No mission is more important than saving lives, and FRA is fully committed to supporting states and communities in the collective effort to prevent avoidable tragedies,” said FRA Administrator Amit Bose.

“Through these grants, we will deter railroad trespassing and suicide through co-ordinated responses from a broad range of local organisations specializing in law enforcement, education, and mental health.”

The massive increase in safety fund-

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ing will aid FRA’s efforts to reduce the approximately 400 trespass fatalities that occur around the country each year, almost all of which are preventable.

Rail suicides often involve railroad trespassing as well. From 2016 to 2021, an average of more than 236 people died by suicide within the US rail system each year in addition to at least another 27 individuals injured in suicide attempts annually.

Education campaigns

The Railroad Trespassing Suicide Prevention Grant programme aims to prevent these tragedies through three projects that will use targeted outreach and education campaigns. The assistance provided through these outreach efforts may take many forms, including but not limited to, advertising of mental health services, identifying and approaching individuals in need or other methods to recognise the signs of an individual in crisis.

Grant recipients will also use grant funding to devise curriculums and train professionals to better identify and respond to crisis situations. In addition to providing funding, FRA will employ every available tool for addressing suicide prevention by facilitating collaboration among local law enforcement, communities, railroad carriers, educators and mental health organisations.

July 4 2022 @freighttracks

The other 22 projects announced under the Railroad Trespassing Enforcement Activities Grant Program will help prevent railroad trespassing by funding hourly wages for law enforcement officers to enforce trespass violations at known trespass “hot spots.” Grant recipients will report their activities and the associated benefits to FRA, augmenting the agency’s data collection efforts and ensuring that these projects support key Departmental objectives, including safety, equity and inclusive approaches to infrastructure investments.

Bipartisan Infrastructure Law

As FRA implements the Biden Administration’s Bipartisan Infrastructure Law, projects such as those included in the Railroad Trespassing Enforcement and Suicide Prevention Grant Programs will be vital for ensuring that safety keeps pace with the expansion and construction of new rail infrastructure or services. Other competitive discretionary grant opportunities funded by the legislation, such as the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program and the newly created Railroad Crossing Elimination Grant Program, will also contribute to FRA’s safety goals by upgrading warning devices at highway-rail crossings and/or grade separations such as overpasses or underpasses.

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ng on railroad suicide prevention Some projects funded by the two grant programmes Hanford Police Department Railroad Trespassing Enforcement Project ($24,077) Hanford Police Department, CA. BNSF operates within the proposed project area Metrolink Trespasser Reduction Task Force ($112,795) Southern California Regional Rail Authority. BNSF/San Bernardino railroad subdivision

Town of Brunswick, ME. Railroads operating in proposed project area include State of Maine Railroad The South Florida Rail Corridor Railroad Suicide Prevention Education and Outreach Campaign Project ($56,500) South Florida Regional Transportation Authority. CSX

Riverside Trespassing Enforcement ($24,520) City of Riverside, CA. The railways within Riverside supporting the project include BNSF and Union Pacific

Lower Makefield Township Police Department Railroad Trespass Safety and Enforcement ($40,000) Lower Makefield Township Police Department, PA. CSX

City of San Bernardino Operation Safe Rails II ($120,000) City of San Bernardino, CA. BNSF and Union Pacific

Operation KORS (Keeping Oklahoma City Rails Safe) ($120,000) City of Oklahoma City, OK, BNSF

Broward Sheriff’s Office Railroad Trespassing Enforcement Grant ($120,000) Broward County Sheriff’s Office, FL. Florida East Coast Railway Railroad Trespassing Education and Enforcement Project ($78,157) City of Jacksonville, FL. Railroads operating in the proposed project area are Norfolk Southern, CSX Transportation, Florida East Coast Railway, and St. Johns River Terminal Railroad (a subsidiary of Norfolk Southern) PBSO Strategy for Reducing Railroad Trespassing ($120,000) Palm Beach County Sheriff’s Office, FL. CSX freight trains Brunswick Railroad Trespass Initiative ($77,000)

Middletown Railroad Enforcement Project Grant ($120,000) City of Middletown, OH. CSX Town of Coeymans Railway Safety Patrol ($15,000) Coeymans Police Department, NY. CSX Greensboro Police Department Railway Trespass Initiative ($120,000) City of Greensboro, NC. Norfolk Southern Billings Police Department Railroad Trespassing Enforcement Grant ($120,000) Billings Police Department, MT. BNSF Railway and Montana Rail Link DPD’s Railroad Trespassing Enforcement Program ($114,348) Dearborn Police Department, MI. CSX

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US RAIL FREIGHT

PKP CARGO INTE celebrates 70th

The Insulated Eco TrinityRail’s new insulated box car is an innovative solution for the transport of temperature-sensitive products including food and beverages.

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ith a 60′-3″ interior length, the Insulated EcoBox is a lighter weight, high-capacity box car containing fibreglass-reinforced panels and spray foam insulation applied to the underframe of the

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car. This is for efficient rail transportation of products requiring protection from extreme temperature fluctuation, says TrinityRail. It is an innovative transportation solution for today’s beer, wine, food and packaged goods industries.

The Insulated EcoBox is a “dependable option for the shipment of beer, wine and other goods”. Commodities that are sensitive to extreme heat and direct sunlight are protected from extreme temperatures and UV light.

Optimal loading

And shipments are protected by features that secure the product while promoting optimal loading configurations and capabilities.

Canned goods, bottled products plus certain fresh fruits and vegetables, are perfect for the Insu-

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ERNATIONAL h anniversary

oBox is launched lated EcoBox, which is designed to promote product integrity throughout the shipping process.

Railcar features

Features of the railcar include interior lining and spray foam insulation on the car’s underframe. The interior lining is fibreglass reinforced plastic panels on sides, ends and roof to promote thermal efficiency and product protection.

The rail car’s floor is primary apitong wood floor rated at 25,000 lbs and is reinforced with a secondary flat steel floor. It has a standard 12’ plug door.

The door opening is a spacious 12′ W x 12′-4″ H. Door handle is equipped with an anti-spin device.

Solar GPS monitoring, door open and close sensors and temperature sensor for real-time monitoring of the car are available.

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US RAIL FREIGHT

Fuelling the future

BNSF invests to slash San Bernardino dwell times

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he Delta South team joined many of industry professionals at the 38th Annual International Fuel Ethanol Workshop & Expo on June 13-15 at the Minneapolis Convention Center.

The three-day conference brought together many recognised experts of the ethanol industry, with the goal to get attendees up to speed on the “must know” information in this exciting field, all while providing a casual forum to meet, network and expand their knowledge of this game-changing industry.

The FEW conference featured many opportunities to learn about how the ethanol industry is working to reduce carbon emissions to provide more sustainable fuel alternatives. Summits included Biodiesel & Renewable Diesel and Carbon Capture & Storage where attendees learned about the economics of carbon capture and storage CCS, as well as the infrastructure required to

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make it possible and the financial and marketplace impacts to participating producers who deploy programs to capture of carbon dioxide from biofuel plants and store them safely in deep underground wells. From strategies and technologies available to how to optimise potential automation, instrumentation, process, and logistical approaches commercially available today, attendees came away with a better understanding of how Ethanol is tomorrow’s Low Carbon fuel and Carbon Capture Storage CCS are truly a game changer.

“We really looked forward to exhibiting at this event,” said Frank Prentiss, VP Sales & Marketing with Delta Southern Railroad. “Meeting industry professionals and learning about cutting-edge technology is essential to DSR and enables us to be on the forefront to provide the necessary services in the future. We are already looking forward to next year’s conference.”

t its meeting last month, the San Bernardino City Council in California voted to certify the Final Environmental Impact Report (EIR) for BNSF’s proposed gap closure project designed to expedite the flow of trains in and out of its existing San Bernardino Intermodal Facility.

The project will improve the facility’s efficiency, with approximately 4.3 miles (7km) of new fourth main track in two segments along the current BNSF corridor from the BNSF overpass at State Street/University Parkway to its intermodal facility.

The project will enhance goods movement for this critical BNSF eastwest route that connects the Ports of Los Angeles and Long Beach with the rest of the nation.

“We’re pleased that this project is moving forward, as it reflects our continued commitment to improve efficiency for our customers, while providing important benefits to the local community,” noted Tom Williams, Group Vice President - Consumer Products Business Group.

By eliminating track bottlenecks that forced trains to wait to enter BNSF’s facility, train idling will be reduced by 43%, with commensurate noise and air quality improvements.

BNSF is also investing in new and enhanced roadways with new sidewalks and lighting, as well as stormwater, drainage and other improvements that exceed what is required.

Earlier this year, BNSF announced a $3.55 billion 2022 capital investment plan, of which $283 million is allocated to California.

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Mexico re-routes to new mexico

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he state of New Mexico could benefit from a political conflict that has blown up between Texas and Mexico over recent border inspections, as the Mexican government considers rerouting a major new rail freight line away from the Lone Star state to New Mexico. Mexico is considering modifying a planned $3.3bn rail expansion, the T-MEC Corridor, which will connect Sinaloa state with Winnipeg, Canada, passing through Santa Teresa, New Mexico, instead of through Texas.

T-MEC

The project is a private initiative to build an international rail corridor tolink the Mexican state of Sinaloa with the Canadian city of Winnipeg through the United States.

The project include two logistics centres at each end of the corridor. One will be constructed in Winnipeg and the other near the port of Mazatlán. In order to operate this facility, Mexico would have to build another port in Sinaloa. The port would also require terminals to move containerised cargo, bulk cargo and the vehicular and hydrocarbon industries, among other products.

Construction is estimated to take five years and is set to last until 2027. The corridor could also pass through the Mexican states of Durango, Coahuila and Nuevo León and US cities Dallas, Tulsa and Chicago.

Free trade agreement

Some 87 km (54 miles) of railways will be built to complement the existing 7115 km (4425 miles) that will become part of the corridor. The project arose as a result of the free trade agreement signed between Mexico, the United

States and Canada, T-MEC, which replaces the Free Trade Agreement (TCLAN).

It was the move by Texas Governor Greg Abbott to call for heightened security of commercial vehicles at the state’s southern border in April that caused gridlock because of long wait times for inspections and major economic losses that prompted the decision to avoid Texas.

In May, the Dallas Morning News reported that The Mexican government “intends to shift longrange plans to build a trade railway connection worth billions of dollars from Texas to New Mexico in the wake of Govenor Greg Abbott’s stepped-up border inspections last month, which were widely criticised as being financially damaging and may now leave a lasting impact on relations between Texas and its No. 1 trading partner”.

The newspaper rep[orted thatMexican Economy Minister Tatiana Clouthier said a planned rail and ports expansion to connect the Pacific port of Mazatlán to the Canadian city of Winnipeg would not use Texas, but instead the rail line would be routed along the far edge of West Texas up through Santa Teresa, New Mexico, about 20 miles (32 km) west of downtown El Paso.

“We’re now not going to use Texas,” Clouthier said at a conference April 28 reported by the Dallas Morning News in Mexico City. “We can’t leave all the eggs in one basket and be hostages to someone who wants to use trade as a political tool.”

Clouthier was referring to what Mexican and U.S. officials and business leaders on both sides of the border have described as chaos generated by Abbott’s April 6 order requiring that all commercial trucks coming from Mexico to Texas go through “enhanced” safety inspections. Abbott said the move was necessary to crack down on human and drug smugglers, said the newspaper.

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US RAIL FREIGHT

IAM Rail Divisio pavement in Wa A

t last month’s 2022 IAM (International Association Of Machinists And Aerospace Workers) Legislative Conference in Washington, DC, union leaders from TCU, the Carmen Division, and IAM District Lodge 19 amplified our members’ voices by meeting with various elected officials from across the federal government. Our railroaders spoke at length with leaders from the Federal Railroad Administration, the Surface Transportation Board and Congress.

Conference attendees heard speeches in the mornings from some of the most powerful leaders in Washington,

including Speaker Nancy Pelosi, Majority Leader Steny Hoyer, Senator Maria Cantwell, Senator Sherrod Brown, and many others.

In the afternoons, railroaders took to the Hill to talk about thei ssues.

From local to national matters, all issues were on the table. Railroaders blasted the so-called “Precision Scheduled Railroading” business model that’s cost the jobs of 45,000 railroaders over the past 6 years, and the associated service declines.

They talked safety issues in our yards and the locomotive and car shops. They spoke about how elected officials can

better address assault prevention on our nation’s transit and passenger rail systems.

Members discussed ongoing national freight rail negotiations and the need to get all railroaders a raise and a fair contract!

“I’m proud of our local and division leaders for pounding the pavement on Capitol Hill this week,” said TCU President Artie Maratea. “Our folks were able to speak directly to the key leaders that can change our members lives for the better – and THAT is what being a union is all about.”

TCU National Vice President & Leg-

Operation Lifesaver celebrates 50 years of rail safety education o commemorate 50 years of rail safety education, Operation Lifesaver, partnered with Amtrak on a new locomotive reminding peoTple:Inc.See(OLI) tracks? Think Train!

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US RAIL FREIGHT

on pounds ashington, DC islative Director Bill DeCarlo addressed the entire Legislative Conference on Wednesday morning: “Since taking the role at TCU, we’ve had one mission: Build. Build our union’s power. Build support amongst our membership. Build a legislative programme that ensures we can punch above our weight. The great turn out for this conference is evidence of the progress we’ve made, and we will continue to build our power in Washington, DC, and continue to live up to the legendary reputation of the ‘Fighting Machinists.”

For the first time, TCU and the Carmen Division joined forces with our brothers from the IAM’s District Lodge 19 under the umbrella of the newly-created IAM Rail Division. “I’m so proud of our TCU and District 19 guys stepping up to help represent our Rail Division in DC,” said Josh Hartford, Special Assistant to the International President, IAM Rail Division.

“And I want to thank the TCU Legislative team for their tireless efforts on behalf of all railroaders. Bill DeCarlo and Dave Arouca are a force in Washington, and we need their expertise now more than ever if we’re going to get our members a fair contract.”

Railroaders got to meet a few leaders that have been rockstars as of late, including T&I Chairman Peter DeFazio, who has long challenged the Class 1 railroads for their endless greed and treat-

ment of their workforce. “Chairman DeFazio was the first person on Capitol Hill to really get it. He knows how this PSR model is hurting our railroads, rail service, and rail workers. Our guys were extremely glad to finally meet the one of the leaders that’s really chastizing the Class 1 CEOs,” said Don Grissom, Asst.

General President of TCU’s Carmen Division. [In case you missed it, Grissom testified before the House Railroads, Pipelines and HazMat Subcommittee hearing on freight rail safety.]

STB Board Member Robert Primus also talked with the railroaders. Primus recently went viral amongst rank-andfile railroaders when he had a testy exchange with CSX CEO Jim Foote at the STB’s “Urgent Issues in Freight Rail Service” hearing in April.

“These days, a lot of these CEOs run their railroads through fear, because a scared employee is an obedient employee,” said Greg Kocialski, TCU’s National

Rep. covering CSX clerical and intermodal properties. “So it’s no surprise that Primus’ exchange with Jim Foote became legendary amongst railroaders. Our members have been through hell and back during COVID, deemed essential frontline workers from the get go – but all the railroads have offered is stricter discipline, massive forced overtime, and a $600 payday loan.”

Every Legislative Conference attendee contributed valuably to the week’s events and meetings: from Rudy Herrera telling his story to the FRA; Greg Burnett talking National Negotiations with Rep. Rick Larsen; Jason Cox detailing car inspection times with Sen. Sherrod Brown; and Josh Cox (no relation) bringing Nebraskan machinists issues home to Sen. Fischer and the entire State delegation.

As one staffer mentioned: “it’s truly amazing to see the range of accents from across the country – but you’re all telling the same story.”

www.freight-tracks.com July 4 2022 n 27

headline news

Nestlé unveils new doubl plan to reduce carbon fo

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estlé UK & Ireland has unveiled plans to increase freight capacity on trains to allow the double-stacking of products, an important step towards reducing its carbon footprint.

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The new curtain-sided rail container with a raising roof, designed to transport double-stacked palletised products by rail, was displayed at the Multimodal Exhibition in Birmingham last month.

The design of the container over-

July 4 2022 @freighttracks

comes an important barrier as the height of road trailers differs from rail containers due to the height constraints of the rail network, meaning transport by rail had not been a winning option for Nestlé until now.

headline news

le-stacking rail logistics ootprint

Trials will be carried out in partnership with Network Rail, Maritime Transport, W H Malcom Group and Freightliner. If successful, the project could have wide-reaching benefits such as reducing traffic congestion and carbon emissions in the future.

According to Network Rail, each freight train takes up to 76 heavy goods vehicles off the UK’s roads.

Three years in the making

Utilising a hydraulic raising roof mechanism, the unit allows the business to double-stack its food and drink products. The roof is then lowered to just above the height of the stock, making it compliant with the height requirements

of rail transport, while being able to get more products on board.

Nestlé has partnered with Oxford Rail Strategies, Bootle Containers and Marine Container Test Services to design and build the container.

Head of Delivery at Nestlé UK & Ireland, Sally Wright, said: “This project has been three years in the making, we continue to develop our future transport strategy and this project could have a profound impact on reducing the number of trucks that Nestlé puts on the roads.”

“We’re currently testing this approach on one route, from the Midlands to London Thames, as we know our container is suitable to travel on this rail route, and it’s a high-volume route for our products from both Hams Hall and East Midlands Gateway.”

The container is due to embark on a trial journey later this year with goods going to retailer Tesco.

This trial is just one of the ways that Nestlé is looking to reduce its carbon footprint.

Earlier this year, the company switched 75% of its owned fleet of trucks from diesel to Bio-LNG, a liquefied gas that is a by-product of waste.

Nestlé has been exploring solutions to reduce its carbon emissions in its transport and logistics network since 2017.

The move is a significant step towards Nestlé’s commitment to halve its emissions by 2030 and reach net zero by 2050.

www.freight-tracks.com July 4 2022 n 31

headline news

World Bank provides multi-m T The World Bank’s Board of Executive Directors has approved a $245 million loan to support India’s efforts to modernise rail freight and logistics infrastructure. The Rail Logistics project will help India shift more traffic from road to rail, making transport—both freight and passenger—more efficient and, reduce millions of tons of greenhouse gas emissions (GHG) each year.

The project will also incentivise more private sector investment in the railway sector. Indian Railways (IR) is the fourth-largest rail network in the world having transported 1.2 billion tonnes of freight in the fiscal year ending March 2020. Yet, 71% of India’s freight is transported by road, and only

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17% by rail. Capacity constraints of IR have limited the volumes and reduced the speed and reliability of shipments.

As a result, IR has been losing market share to trucks over the years; in 201718, its market share was 32%, down from 52% a decade earlier.

Road freight is the largest contributor to GHG emissions, accounting for about 95% of emissions of the freight sector. Trucks also accounted for about 12.3% of road accidents and 15.8% of total road transport-related deaths in 2018.

Rail emits about one-fifth of trucks’ GHG emissions, and with IR planning to become a net-zero carbon emitter by 2030, it has the potential to eliminate 7.5 million tonnes of carbon dioxide

July 4 2022 @freighttracks

and other greenhouse gases each year.

“While reducing greenhouse gases, the new project will also benefit millions of rail passengers in India as railway lines get decongested with freight moving to dedicated lines,” Hideki Mori, Operations Manager & Acting Country Director, India, World Bank.

“Integrating railways with the wider logistics ecosystem is also key to reducing India’s high logistics cost, which are much higher than in developed nations. This will make Indian firms more competitive.”

Rail Logistics project will strengthen India’s multimodal transport hubs and terminals, by improving rail links with ports and inland gateways, and building first- and last-mile connectivity to

headline news

illion loan to Indian Railways

railways.

The new Eastern Dedicated Freight Corridor-3 (EFDC), also supported by the World Bank, is already helping faster and more efficient movement of raw materials and finished goods between the north and eastern parts of India.

The Rail Logistics project will connect several other such infrastructure projects and bring in private sector efficiency to augment rail capacity, create and manage intermodal terminals, and improve service quality and value-added services through private train and terminal operators.

A major focus of the project will be on harnessing commercial financing by engaging the private sector and devel-

oping customer-oriented approaches.

The project will also support institutional capacity strengthening of the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) as a commercial organization and equip it to provide multimodal logistics services.

“India is increasingly focused on multimodal transport, particularly with railways as the central pillar of efficient logistics in the freight transport segment,” said Saroj Ayush and Martha B. Lawrence, World Bank Task Team Leaders for the project.

“The project will help leverage private sector efficiency for integrating rail transportation into cargo supply chains.”

The project places special emphasis

on tackling gender-based violence and will support regular awareness drives for the community on the issue.

It will also undertake activities to systematically improve women’s entry and transition in the railways sector, including improving women’s presence in technical job roles; creating safe workplace environments for contracted women employees and informal women workers; and prioritizing childcare for informal women workers at construction sites.

The $245 million loan from the International Bank for Reconstruction and Development (IBRD) has a maturity of 22 years, including a grace period of seven years.

www.freight-tracks.com July 4 2022 n 33

headline news

OPERAIL INCREASED ITS REVENUE LAST YEAR Achieved the best EBITDA in Operail’s history

ESTONIA The international rail company AS Operail closed the year 2021 successfully: the group’s revenue increased to €73 million, which is a 12% increase compared to the previous year. Thanks to added freight volumes and improved work efficiency, the group’s EBITDA increased to €17.2 million, which is an impressive 16% increase compared to 2020.

The group’s net profit without extraordinary items was nearly four million euros, which is a 43% increase compared to the previous year. Taking into account the extraordinary items, which in 2021 included write-down of assets, the group made a loss of five million euros.

“We are glad to conclude that we have been on the right course so far, and that we have achieved the best EBITDA result in the group’s history. The key contributor here was the wagon lease business line,” said Raul Toomsalu, Chairman of the Management Board at Operail. In 2021, the Operail Group underwent preparations for privatisation, which generated the need for restructuring within the group. As a result of this process, all individual business lines at Operail (freight transport in Estonia, freight transport in Finland, lease of rolling stock, maintenance and repair of rolling stock) are legally separated.

The container freight volume in Estonia increased to 56,429 TEU, which is 26% more than the previous year.

Freight transport in Finland had its first full year of operation, during which we transported a total of one million tons of goods in Finland. In the wagon lease

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department, 94% of wagons were covered by contracts by the end of 2021.

In 2021, the group invested a total of €13.7 million.

Complicated circumstances

As for 2022, Operail has welcomed the year in complicated circumstances. The war that broke out in Ukraine in February has a negative impact on the group’s operations. The management board of AS Operail is taking steps to find replacements to sanctioned transport and to direct rental wagons away from highrisk regions.

“Despite the unexpected events at the beginning of the year and an economic environment that quickly became challenging throughout Europe,

July 4 2022 @freighttracks

I am convinced that the group will successfully adjust to the circumstances, and that Operail continues to be the leading rail expert in Estonia, as well as a trustworthy partner to its clients,” assured Raul Toomsalu.

Operail is an international transport and logistics company, whose business includes freight transport, construction and repair of locomotives, and lease of rolling stock. The company employs nearly 500 people in Estonia and Finland. In addition to the parent company AS Operail, Operail Group includes the wagon lease companies AS Operail Leasing and Operail Leasing Finland Oy, Finnish rail transport company Operail Finland Oy, and the locomotive construction and repair company Operail Repairs OÜ.

headline news

EU-Ukraine logistics: call to action for the Solidarity Lanes initiative

Getting Ukrainian agricultural produce back in motion.

Transporeon calls for all logistics players in Europe to support the European Commission’s EU Ukraine Solidarity Lanes initiative EU / UKRAINE “Calling all logistics players across Europe, your help is needed,” that is the rallying cry from Transporeon, ALICE and the European Commission. With 25 million tonNEs of grain and other agricultural goods held in storage due to the supply chain disruptions as a direct result of Russia’s invasion of Ukraine, a gargantuan effort by the collective logistics industry is needed to get these goods back on the road and rail again.

The European Commission has adopted the action plan ‘EU Ukraine Solidarity Lanes’ aimed at facilitating the Ukraine’s agricultural export and bilateral trade with the EU. A key part of this plan is to scale up rail freight transportation capacity, unleash bottlenecks and drive engagement from the logistics community to take part, contribute transportation equipment and open up freight corridors.

Transporeon announces the availability of its Transportation Management Platform for all involved parties to identify live congestions and transit

times across the region. “We are proud and honoured to have been invited to support this vital program. Provision of this real-time visibility capability will

allow all players in the supply chain to see live congestions and current transit times to plan their transportation activity more efficiently as well as providing governmental bodies an opportunity to deploy resources as necessary to alleviate any bottlenecks, both of these activities are crucial to the release of these vital products back into circulation.”, said Stephan Sieber, CEO of Transporeon.

In addition, Transporeon will offer

its freight procurement platform for free and the needed consultancy services to run the project at cost to all shippers engaged in exporting Ukraine produce worldwide. This service will give suppliers in the Ukraine access to the market’s leading transportation management platform enabling logistics providers to submit prices and capacities in an efficient and cost-effective fashion.

“As the name suggests, the EU-UA Solidarity Lanes are an exercise in solidarity; close cooperation between Member States, national, regional, local authorities and private entities that drives partnership and the interoperability needed to succeed. We have trust in companies like Transporeon to put the full force of their expertise behind the Solidarity Lanes,” said European Commissioner for Transport Adina Vćlean.

Everybody who operates within transportation logistics here in Europe has a part to play in supporting this life sustaining project from the European Commission as not one person, organization or body can tackle the problem alone.

www.freight-tracks.com July 4 2022 n 35

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news review

TX Logistik gains new safety certificate

EUROPEAN UNION The European Union Agency for Railways (ERA) has issued TX Logistik AG with a single safety certificate for transports in Germany and the Netherlands for further five years.

The rail logistics company, which is part of the Mercitalia Group (Gruppo FS Italiane), is thus confirmed once again to fulfill the legal requirements for safe rail operations in both countries. The official certificate is valid until June 2027.

The re-certification was preceded by intensive preparation, in which TX Logistik had to demonstrate a comprehensive safety management system for controlling risks in rail operations in cooperation with numerous stakeholders, partners and service providers.

All involved parties worked intensively on this issue. The certificate issued by ERA also authorises the transport of dangerous goods.

Safety is a priority for Mercitalia Group and TX Logistik.

For the rail logistics company, which specialises in borderless transport networks, the new safety certificate is an essential prerequisite to ensure continuous traction. In the Netherlands, it has so far been operating on two routes. Six times a week, TX Logistik runs between Venlo and Melzo/Milan. In addition, the rail logistics company connects Rotterdam with Munich and Kornwestheim three times a week respectively.

The signs point to further growth: TX Logistik intends to fundamentally strengthen its presence in the Netherlands and gain new business there.

With the renewed single safety certificate, the company has created the prerequisite for additional transports in the Netherlands, which it can also carry out under its own responsibility.

In addition to Germany and the Netherlands, TX Logistik has safety certificates in Austria, Italy, Denmark, Sweden and Switzerland.

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news review

Getlink: Strong growth for unaccompanied freight services

BRITAIN / EU Launched in September 2021, the Getlink unaccompanied freight service, which enables transport customers to send unaccompanied trailers through the Channel Tunnel, has seen continuous growth since its inception and, more recently, a marked acceleration since March 2022, with more than 1000 trailers carried.

This service, which is fully aligned with the Group’s diversification strategy, adds to the range of sustainable logistics solutions provided for going to and from the European Union to hauliers.

The transport of trailers, handled by Eurotunnel Le Shut-

tle Freight teams on the two Eurotunnel terminals, operates 24/7 and generates 40 times less CO2 than ferries.

This service benefits from several competitive advantages including speed, ease and flexibility and is supported by the Group’s unique Customs expertise for the border crossing, using the Eurotunnel Border Pass.

Christian Dufermont, Freight Commercial Director, stated: “Our service is growing strongly because it answers the three principal challenges in the supply chain today: decarbonisation, lack of truck drivers and the sharp rise in the cost of fuel.”

www.freight-tracks.com July 4 2022 n 39

news review

Adif moves forward in new €123.5m southern access to Port of Castellón SPAIN Spanish infrastructure operator Adif continues to make progress in improving rail-port connections with the aim of promoting co-operation between modes and favouring rail freight transport in Spain.

That is why the company has taken a further step in the construction of the new southern rail access to the Port of Castellón, which will facilitate a greater number of circulations and will allow rail freight transport to gain in competitiveness and efficiency by reducing access times and passing trains.

In this sense, Adif has put out to tender, for an amount of €123.5 million and an execution period of 30 months, the execution of the construction project works for the platform of the first section of this new southern rail access to the Port, which It has an approximate length of 4.69 km.

With the execution of the platform works of this first section, the railway connection of the Valencia-Barcelona line (belonging to the Mediterranean Corridor), between the stations of Almassora and Castellón, with the Port of Castellón, will materialize, which will allow traffic to be increased and offer a more competitive and sustainable transport alternative than the current one.

The works include the construction of a new railway platform, clearing, drainage, concrete frames to save cross-

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ings, replacements and complementary works.

The construction project has in its initial situation that the mixed gauge has already been implemented on track 1 Castellón-Almassora (direction South-mountain side) of the Mediterranean Corridor, as well as the works included in phase 0 of the construction project have already been executed platform for the new southern railway access.

The tendered contract does not include the first 100 metres of this section, which will be addressed in the construction project for the track and electrification of the new access, currently in the drafting phase, in order to minimize the impact on the Mediterranean Corridor tracks that are in operation.

The New South Railway Access, for the exclusive use of freight trains, has a total length of 8.3 km on a single track and mixed gauge, divided into two sections, with which the Mediterranean Corridor tracks and the port facilities of the Port of Castellon.

The construction of this branch constitutes a decisive step so that the port infrastructure has the necessary conditions that facilitate the entry of merchandise by train to the port area without conditioning factors of length and load as has been the case up to now, making this traffic more competitive.

www.freight-tracks.com May 9 2022 n X

news review

cargo-partner continues to expand its wareh

CHINA In the first half of 2022, cargo-partner has grown its network of offices and warehouses in China and introduced new rail and road transport services from China to Europe and Central Asia. cargo-partner’s teams in China have handled a range of interesting projects, from transporting oversized machine tools across Kazakhstan to managing high volumes of e-commerce shipments for one of China’s largest shopping festivals.

Since the opening of cargo-partner’s first office in China in 2004, the logistics provider has continuously grown its presence in the country. In January 2022, the company expanded its branch office in Beijing and opened a new warehouse in Kunshan, in close proximity to Shanghai and a ten-minute drive from the Beijing-Shanghai Expressway.

By renting 5,300 sq m of warehouse space, cargo-partner took further steps to expand its contract logistics network and serve the Kunshan market with its strong electronics industry, where the company sees great growth potential.

In March, another cargo-partner warehouse took up operations in the south of China. The warehouse in Yantian, Shenzhen provides 3,400 m² of storage space along with a wide range of value added services and also serves as a regional distribution center. At the start of June, cargo-partner opened a new sales office in Macau, complementing its network in the Greater Bay Area and making use of this important trading and transshipment hub.

New rail and sea transport solutions

In rail transport, cargo-partner circumvents the New Iron Silk Road by making use of the Middle Corridor via the Caspian Sea and the Black Sea. The company provides weekly departures along this new route and expects volumes to grow by 30-50% in the near future. In addition, cargo-partner continues to offer its seafreight service “Adria Express” from China to Koper, Rijeka and Trieste.

This routing shortens transit times to Europe by five to eight days compared to transport via Northern European ports. Cross-Border Trucking from China to Central Asia As of spring 2022, cargo-partner has introduced a cross-border trucking solution from China to Central Asia.

The logistics provider offers regular services from China to Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan with lead times of around two weeks. Needless to say, this transport solution is also suitable for project cargo.

Most recently, cargo-partner handled a transport of oversized machine tools, transported in 16 flatbed trucks from Dalian, Northern China to Tashkent, Uzbekistan. car-

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go-partner’s door-to-door service included lashing and securing before departure from the Dalian factory as well as close monitoring, communication on both ends and coordination of Customs-related procedures along the whole transport chain from China via Kazakhstan to Uzbekistan.

The transport was completed in 14 days.

Since the opening of the cargo-partner warehouse in

news review

ouse network and service portfolio in China

Kunshan near Shanghai, the local team has handled several challenging projects.

One of them was a cooperation with an importer of oat milk products who runs online stores on some of China’s major e-commerce platforms.

The company required logistics support for its participation in the 618 shopping festival, a large mid-year shopping

event. To meet the customer’s tight deadlines, cargo-partner trained 16 temporary workers and quickly set up a standard operating procedure.

The team completed all outbound orders in only 12 days, including picking and packing 290,000 pieces of milk boxes and labeling 34,000 packaging cartons without a single error.

www.freight-tracks.com July 4 2022 n 43

news review

Adif to deploy the 5G network in ten strategic logistics terminals

SPAIN Adif Alta Velocidad (Adif AV) has started the process to deploy 5G infrastructure infrastructure with 5G coverage in ten of the main logistics terminals in Spain, considered strategic logistics terminals in Spain, considered strategic, with the aim of boosting their to boost their digitisation and, with it, the automation of processes and the reduction of automation of processes and cost reduction in rail freight transport.

To this end, the entity has just launched a call for tenders for the contract of drafting of the construction project, supply, works, installation, maintenance and operation of the network infrastructure to support the 5G coverage of these logistics terminals 5G coverage for these logistics terminals for more than €27 million.

Logistics terminals The logistics terminals where this deployment will be carried out are: Vicálvaro and Villaverde (Madrid); Zaragoza Plaza; Barcelona Can Tunis and Barcelona La Llagosta; Valencia Fuente San Luis; Seville Majarabique; Vitoria Júndiz; Bilbao; and Valladolid.

This infrastructure will ensure advanced connectivity services for high-density for high-density environments, as well as the implementation of different 5G technology applications of 5G technology, which will enable the use of Inter-

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net of Things (IoT) networks, for monitoring critical assets.

In this way, the 5G infrastructure deployed will allow for the provision of advanced logistics services, with partial or full automation, and will facilitate the automation, and will facilitate the ‘smart’ management of freight traffic, thus speeding up transits and facilitating intermodality.

In addition, the installation of a 5G network in rail infrastructures will promote the interconnection infrastructures of the main transport nodes of the rail transport nodes of the rail system in an efficient way, which will result in a more sustainable and smarter mobility.

In addition to the use of the infrastructure deployed by Adif and Adif AV, the contract provides for the use of the 5G network in railway infrastructures. to telecommunications operators to make their services available their services to areas where their deployment would not currently be economically viable.

This new infrastructure for the 5G network will join Adif and Adif AV’s portfolio of Adif and Adif AV’s portfolio of telecommunications assets, which currently consists of a fibre optic network of more than 24,000 km, 1900 technical buildings and more than 700 technical buildings and more than 700 mobile sites.

Both companies are currently in the process of analysing their business model in order to consolidate their position in the telecom market.

BECAUSE NOT ALL FREIGHT ON A TRAIN MOVES IN A BOX

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KEEP THE DATE: Railway industry calendar of events

05-06 July 07 July 12-14 July 18 July 24-25 August 07-08 September 08 September 22-25 August 14-16 September 16-22 September 20-23 September 27 September 04-06 October 05 October 05-07 October 12-13 October 19-20 October 19-21 October November TBC 07-09 November 08-10 November 09 November 14-17 November 15-17 November 29 Nov - 01 Dec 07-08 December 08 December

London, UK Derby, UK Shanghai, China Lake Geneva, USA Halberstadt, Germany Warsaw, Poland London, UK Montpellier, France Munich, Germany Europe Berlin, Germany Worldwide Berlin, Germany London, UK Prague, Chezchia Germany Debrecen, Hungary Berlin, Germany Barcelona, Spain Warsaw, Poland Amsterdam, Netherlands Stockholm, Sweden Lisbon, Portugal TBC Malaga, Spain Duisberg, Germany Paris, France

ERTMS & Digital Signalling Rolling Stock Networking Intermodal Asia Midwest Association of Rail Shippers (MARS) Summer Meeting CRSC Information Day and Member Meeting Rail Freight Summit RFG Awards Dinner International Conference on Railway Technology 17th Conference on Critical Information Infrastructures Security European Mobility Week innoTrans World Freight Train Day EPCA Annual Meeting RFG Annual Conference International Rail Forum Conference Rail Infra Forum Rail Freight on Tour Deutsche Logistik Kongress BCNRAIL Internacional Rail Forum 9th International Transport & Logistics Exhibition Intermodal Europe Scandinavian Rail Optimisation Transport Research Arena Intelligent Rail Summit 2022 Rail Live 2022 European Silk Road Summit 101st UIC General Assembly

Lille France Birmingham, UK Milan, Italy

13th International Exhibition of Railway Technology Railtex Expo Ferroviaria

2023 28-30 March 09-11 May 03-05 October

If you would like your event listed here free of charge, just send details to freighttracks@gmail.com 46 n

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Hi CUBE BOXCARS

SMALL SCALE RAIL FREIGHT

DO YOU TAKE MILK?

In each issue of Freight Tracks we look at scale model versions of modern and old school freight rolling stock and infrastructure DAPOL O Gauge 6 Wheel Milk Tanker United Dairies

RAILROADS HAVE BEEN CARRYING FREIGHT SINCE DAY 1.

IT’S NOW DAY 71,490.

WORLD FREIGHT TRAIN DAY 2022 will celebrate the drivers, yard staff, loaders, planners and workshop staff who get the freight through.

Freight Tracks will work with railroads and Freight Operating Companies to promote the importance of the modern freight train in the global supply chain. The date marks the day the world’s first public railway, the Stockton & Darlington Railway in England, opened.

That was 71,406 days ago today.

Join us as over the next seven months, we will plan a series of events and projects that salute the Freight Train in all its importance.

KEEP THE DATE:

September 27, 2022