Freight Tracks issue 20

FREIGHT TRACKS

NOVEMBER 7 2022

#20

BYE-BYE 2022, HELLO 2023

UK RAIL DIVERSITY BROUGHT TO BOOK

R. J. Corman hosts AARS training

SWISS FAMILY RAILFREIGHT

SWISS WAGONLOAD: THE TRAFFIC THAT WON'T GIVE UP

headline news

news review

The Art of Railway Publishing

www.chimewhistle.com info@chimewhistle.com

CONTENTS NOVEMBER 7 2022

HEADLINE NEWS

RAILWAY READING MY MUMMY IS A TRAIN DRIVER

#20

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SEEING DOUBLE: MODEL NER ES1 CLASS LAUNCHED

Keep the Date Railway industry events

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WORLD FREIGHT TRAIN DAY 2023 After the positive reaction to the soft launch of World Freight Train Day 2022, we are beginning to plan World Freight Train Day 2023.

We welcome any reader who wants to get in at the start of planning WFTD23.

Just get in touch.

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Swiss wagonload freight

Last month, all the attention was on Swiss rail oper new world record for running the longest passenge carriages. However, the country's rail freight netwo

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he shock announcement from Swiss Federal Councilor Simonetta Sommaruga at the General Assembly of the Association of Shipping Business and Logistics (VAP) in August where she claimed that the country is at a turning point regarding rail freight has focussed the minds of many in the Swiss rail industry.

At the heart of Sommaruga's statement is a belief that rail freight is not an economically viable proposition when it comes to large areas, even more so if it involves single wagonload traffic.

This mirrors the experience of British Rail and its Speedlink network in the 1980s – which lost £28 million on a turnover of £42 million in 1989/90 and £51 million on a turnover of £39 million the following year.

While undoubtably good for the environment, wagonload traffic is both a financial and logistical nightmare. Shunting and trip working made up 80% of Speedlink's costs.

Speedlink ovly lingered on for so long because

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isn't ready to surrender

rator Rhaetian Railway, following its setting of a er train – 1.2 mile in length and comprising of 100 ork is just as fascinating, discovers Jonathan Webb there was a belief that the opening of the Channel Tunnel would open up new freight markets and generate enough wagonload freight to at least break even. This optimism was partially based on the fact that wagonload freight was relatively common in France.

The concept of wagonload traffic in Britain was lucky to have lasted so long, for such traffic was recommended for abolition as long ago as 1963, as part of the Beeching report. This suggested that British Rail should only concern itself with block trains, such as moving coal from colliery to power stations. The network, serving a limited number of destinations and using dedicated air braked wagons was established in 1974 – later evolving into Speedlink. A push to convert Speedlink traffic into trainloads had limited success – with

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around 70% of traffic being retained.

Councilor Sommaruga did, however, offer a glimmer of hope among her down-beat predictions, saying: “Either the federal government sticks to its self-finance and tries to improve the situation in advance with incentives, or we can modernise and develop single wagonload traffic together with you, with the industry."

While the extinction of wagonload traffic is not thought a possibility in the near future, there is the real danger that companies will abandon rail for road if rail fails to be cost-effective – it being much easier to switch to road when transporting smaller volumes.

Adapt or become extinct Two options to tackle the crisis were set out

by Sommaruga. The first of these was a continuation of the Swiss government's self-finance policy.

This, according to the Councillor would inevitably lead to the cessation of single

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wagonload traffic in turn resulting in a significant shift from rail to road for all but large volume customers. The second option would be for rail freight to rise to the challenge of securing the long-tern future of wagonload traffic – although Sommaruga did point out that modernising the wagonload concept would also require government funding. Wagonload traffic – where individual wagons from different customers are formed into a single train and conveyed to a collection point – is attractive to smaller businesses because such companies are rarely able to fill a whole train.

SBB Cargo, the national rail freight company, was also told by the Councillor that not only must the single wagon load traffic become more efficient, it must also become more market orientated and open-minded regarding new business models relating to cooperating with private rail companies.

An idea that's far from rubbish Switzerland makes great use of its rail freight network and this is perfectly illustrated in how it moves household waste in the Canton of Vaud.

The effective use of rail for moving freight over a distance of less than 50 miles is not

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always easy – mainly due to road competition.

However Swiss company ACTS, in co-operation with waste treatment companies in Vaud, have created a logistic system that enables a modal transfer between road and rail. ACTS is a familiar name on the Swiss rail freight scene. The company offers intermodal roll off containers and are heavily involved in the movement of low quantity bulky cargo in need of a decentralised collection.

The ACTS system of operation can be broken down into three parts. The first of these involve modified container wagons which are able to facilitate the roll-off method via pivoting supports. The second part sees containers provided in a variety of different shapes (suited for a variety of materials etc) that also fit the loading gauge of the routes they travel over. The third, and arguably most important, element is a universal lorry that has a chain and hook installed, allowing it to load and unload any type of container – even non ACTS ones.

Other competing container systems, such as MOBILER, need a lorry that has a specific loading device installed, whereas ACTS is attractive as it is not necessary to invest in expensive infrastructure equipment. The most common cargo conveyed is gravel, but salt and apples are not unknown.

Outside the Lausanne city area, household refuse is loaded into containers, which are then removed by lorry to relatively rural stations for transfer to rail wagons.

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Once these and other wagonload refuse traffic has been shunted, the train makes its way to the waste incineration plant at Lausanne. The waste is burnt and, in turn, helps generate electricity to the the city of Lausanne.

The incineration plant is reached via a five mile-long (8 km) tunnel and the route is on a steep incline – meaning that only a few wagons can be shunted at any one time. Approximately half of the waste burnt at Lausanne arrives by rail.

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THALES, KNORR-BREM ON FREIGHT TRAIN AU A

utomatic Train Operation (ATO) will greatly assist train drivers in their daily work and thus help to counter the sector’s looming staff shortages, as well as improve rail freight’s efficiency, punctuality and competitiveness Knorr-Bremse, the global market leader for braking systems and other mission-critical systems for rail and commercial vehicles, and Thales, a global leader in advanced technologies have signed a Memorandum of Understanding to co-operate on the development of ATO solutions for locomotive-hauled freight and passenger trains.

Optimising lifecycle costs “In our industry, Automatic Train Operation is a key lever for making rail freight more efficient and more available, increasing transportation capacity, and further optimiSing lifecycle costs for operators,” explains Dr. Nicolas Lange, Chairman of the Management Board of Knorr-Bremse Rail Vehicle Systems. “Our partnership agreement with Thales has enormous potential for bringing about the innovations required to enable safe and smooth Automatic Train Operation and thus improve, for example, energy efficiency and punctuality.”

“Full autonomy is still a work in progress, although the necessary technologies are maturing rapidly. ATO is one of them, as a necessary step toward achieving fully autonomous driving. Thales has a clear vision for autonomy and is pleased to partner with Knorr-Bremse, a leading company in braking systems and other mission-critical train systems, with the aim of accelerating the development of automated train functions in the freight market,” adds Dr. Yves Joannic, Vice President Main Line Signalling and Managing Director Ground Transpor-

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tation Systems at Thales Germany.

ATO will deliver multiple benefits for the rail freight sector. These include anticipated gains in efficiency and capacity, energy savings, performance enhancements and better punctuality.

Train punctuality in particular (Estimated Time of Arrival) depends on smooth, consistent train driving based on factors such as track characteristics, topography and surrounding traffic, as well as train-specific parameters such as load, which influences traction and braking performance.

Intelligent interaction While many of these criteria are still monitored manually, digital and automated functions will significantly improve how they are tracked and utilised.

By using sensor-based, real-time data, for example, new features will be able to deliver intelligent insights to train drivers and devise optimal driving strategies.

Therefore, the smart interaction of the expertise of the two companies will be crucial.

Especially in existing fleets, Automatic Train Operation will support drivers in their daily work. Among other advantages, this will help to counter looming staff shortages in the rail freight business.

With respect to 2030 climate targets, i.e. reducing transportation emissions by at least 18% (European Commission, 2020), upgrading the rail freight sector is imperative for shifting large amounts of freight from trucks and airplanes to green, rail-based transportation.

Rail consumes 12 times less energy and emits up to 11 times less CO2 per passenger / ton kilometer compared with cars and trucks (IEA 2021).

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MSE TO CO-OPERATE UTOMATION

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R. J. Corman hosts key AARS training

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n two days at the end of October, 42 railroaders participated in an American Association of Railroad Superintendents (AARS) training hosted by R. J. Corman. It was two days full of highly technical training in Train Accident Prevention and Investigation.

Since 1881, the American Association of Railroad Superintendents has served as networking, education, and development group for railroad operations leadership and management of Class I, regional and short lines, and passenger railroads in North America.

Railroaders from different parts of the country, as

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well as Canada and Mexico, hail from an array of railroad companies, ranging from Class I and regionals to short lines and transit railroads. The sessions were led by experienced railroaders Bruce Rose and Jimmy Grupposo and included topics such as recording track geometry, identifying point of derailment (PD), situational awareness, rail rollover, and more.

The hands-on training portion took place at the R. J. Corman Central Kentucky Lines' Lexington Yard. It included an engineering section with track notes & turnout inspection training and a mechanical portion with detailed instructions on car inspection.

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KCS Breaks Ground on Second Span of New International Bridge

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ansas City Southern (KCS) ceremonially broke ground on both sides of the new International railroad bridge spanning the Rio Grande from Laredo, Texas, to Nuevo Laredo, Tamaulipas. This new bridge will be constructed alongside the existing bridge and is estimated for completion by year-end 2024.

"Today marks the start of construction of a new railroad bridge to meet the needs of North American commerce in the future," said KCS president and CEO Patrick J. Ottensmeyer.

"Upon completion, the second span of the International Bridge will keep Laredo-Nuevo Laredo at the center of North American trade and make this vital USMCA trade corridor safer, more fluid and secure, and relieve traffic congestion in Laredo and Nuevo Laredo.

"This significant private investment in infrastructure, along with the proposed combination of Canadian Pacific and KCS, pending regulatory approval, will connect customers on both sides of the border to new markets, enhance competition in the US rail network and drive economic growth across North America."

This new international bridge includes construction of a structure paid for entirely with private KCS

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funds. It will be constructed on the right-of-way roughly 35 feet from the existing bridge, allowing trains to operate in both directions at the same time.

The bridge will be roughly 1150 feet long (350m). US and Mexican construction crews will work concurrently on each side of the international border to complete the project.

The project will also include renovation of the existing US Department of Homeland Security/Customs and Border Protection building in Laredo and reconstruction of a KCS Operations Security Building in Nuevo Laredo.

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The existing single-track bridge is the only railroad bridge crossing of the Rio Grande River linking Laredo and Nuevo Laredo, and is the essential link in this international border crossing corridor.

The US. Presidential Permit for construction of the new single-track span bridge was received in July 2020.

Since 2020, KCS has been in the project engineering and design phase as various construction permits were obtained in the U.S. and Mexico.

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the US, Mexico and Panama.

Its primary US holding is The Kansas City Southern Railway Company, serving the central and south-central US. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50% interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances with other North American rail partners

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DHL has launched a pilot project for the tram delivery of parcels in Schwerin, Germany. The three-section Flexity tram, constructed at the turn of the century, has a three-stop route developed specifically for the project, and the tram itself was partially modernised. Seats in the middle car were removed to accommodate contain-

ers with parcels. The tram leaves the depot at 11:17.

Staff roll out containers at each stop and distribute parcels to postal machines.

Deutsche Post DHL claims to be able to deliver around 450 parcels a day on this service.

GATX announces appointment of James B. Ream as independent Chair of the Board

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ames B. Ream has been named as GATX Corporation’s independent chair of its board of directors. Ream succeeds Brian A. Kenney, who retired as the Company’s president and chief executive officer in April 2022 and who has served on the board as non-executive chair for a transitional period ending October 31 2022. The board previously announced its ntention to separate the board chair and CEO roles following the transitional period.

Ream has served as GATX’s independent lead director for the past ve years.

“Jim’s long history of leadership at

various public companies, combined with over 40 years of experience in the transportation industry, makes him an ideal choice to serve as chair,” said Robert C. Lyons, president and chief executive ocer of GATX. “I look forward to continue partnering with Jim and the board to execute on our strategy to drive attractive long-term returns for our stakeholders.”

Long-lived assets

Lyons added: “We are grateful to Brian for his tremendous leadership and for his 27 years of service to thecompany. Because of his vision and dedication, GATX is recognised as

the global leader in the full-service leasing of long-lived assets.”

“I am honoured to serve as chair of the GATX board,” Ream said. “On behalf of my fellow board members, would like to thank Brian for his invaluable contributions and partnership over the years. Looking forward, I am excited to work with the board to support GATX in its next phase of growth.”

Ream brings signicant industry, strategic, nancial and operational expertise to this position. He most recently served as senior vice president, operations and senior vice president, maintenance and engineering at American Airlines.

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WABTEC: CELEBRAT FORT WORTH

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ort Worth welcomed a new resident in October 2012 as Wabtec opened the doors to a one million square feet locomotive plant and 250,000 sq ft mining plant.

The region was an ideal location for Wabtec’s new plants.The Dallas/Fort Worth metroplex offered a strong talent pool, leading universities, a major international airport, proximity to key customers, and resources to compete in the global marketplace. Additionally, there was a rail line that could be converted into a test track.

With those ingredients for success, Wabtec’s team in Fort Worth established the site as one of the premiere pro-

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duction facilities for the rail and mining industries over the next 10 years. The site increased productivity and flexibility of Wabtec’s North American manufacturing operations enabling the company to better serve its customers.

"This anniversary is a tribute to the dedication and focus of the Fort Worth team," said Justin Downs, Group Vice President for Wabtec’s Freight Operations.

“They have positioned the site as one of Wabtec’s most productive operations by demonstrating the ability to take on different types of work and exceeding customer expectations.”

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TING A DECADE IN The 94-acre site’s capabilities have diversified and grown throughout the decade. The plants’ original focus was primarily the production of new locomotives and drive systems for giant mining trucks. However, the team has since added modernization and kitting work to the million-square-foot locomotive plant, while the 250,000 sq ft mining facility added production of truck control boxes. The site also added a 262,000 sq ft warehouse to support the locomotive and mining plants right across the street.

Since beginning operations in 2012, the team delivered approximately 3000 new locomotives, kits, and modernized locomotives to railroads in North America and Australia. The mining plant on the site also delivered more than 5300 AC wheel transmission axles, 2000 retarders, and 1700 control groups for 150 - 400-ton capacity mining trucks.

“We could not have achieved this level of success alone,” said Dave Cox, Group Vice President of Wabtec’s Mining and Components Operations. “Thanks to the support from the community, suppliers, and other Wabtec sites, our team positioned the site and the company for success for years to come."

Local relief efforts Wabtec and its employees are active members in the Fort Worth community through the United Way, March of Dimes, and various STEM initiatives. Last year, the company supported the community with a donation of $30,000 for local relief efforts in Texas following the winter storm and destructive power outages.The donation was split among three nonprofits: Salvation Army of North Texas, Tarrant Area Food Bank, and the Tarrant County Homeless Coalition.

Wabtec's Fort Worth site will continue to be an involved member of the community and a leading manufacturer for the rail and mining industries. Given the successful first decade and the company’s focus on sustainable technologies, the Fort Worth site will be an integral part of Wabtec’s vision to deliver environmentally friendly technology to the industries it serves for decades to come.

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TICK ALL THE BOXES WITH FREIGHT TRACKS sell to rail freight companies? an DoDo youyou want boost your sales to the sector? a Do you wanttocost-effective n advert packages? a Do you want your sales message n an key decision makers? in front of Since our launch in February 2022, we have carved a presence in the rail freight media to reach some of the most important and influential people and companies in the sector. Why not join us in getting to these people? We guarantee that your message will only get to freight people.

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Wabtec: Historical Timeline Gallery

2012: Ft. Worth facility begins operations

2015: Wabtec introduces EVO Tier 4 locomotive

2017: Ft. Worth begins performing locomotive moderniSations 4 www.freight-tracks.com NOVEMBER 7 2022 n 19

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Wabtec: Historical Timeline Gallery 2019: 1st locomotives for Australia produced in Fort Worth

2019: Delivery of the 1,000th EVO Series Tier 4

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CN Railway Becomes Sole Canadian Partner in UP/NS EMP ProgramME

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anadian National has agreed an exclusive partnership with the Union Pacific and Norfolk Southern railroads in Equipment Management Pool (EMP) programme.

CN continues to invest in broadening our range of intermodal services in North America. CN’s expansive 3-coast network and industry leading service, provide increased flexibility and expanded reach to shippers throughout

North America.

The EMP programme is a domestic interline service providing extensive coverage throughout North America, offering a fleet of more than 40,000 53-foot dry containers.

CN’s participation in the EMP Program enables shippers to reach new west, east and southern markets, leveraging the networks of North America’s largest Class 1 railroads while enhancing

Canadian National’s participation in the active North American supply chain.

Furthermore, EMP shippers will benefit from CN’s double stacked scheduled intermodal service to and from all Canadian origins and destinations from coast to coast.

The EMP programme provides seamless access to all major cities within Canada, the United States and numerous major markets in Mexico.

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Grain Movement: C

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uring the week of October 16 (week 12 of the 2022-2023 crop year), Canadian National (CN) moved over 806,000 tonnes of grain from Western Canada, exceeding its previous record by over 50,000 tonnes.

This record also comes on the heels of CN’s second best September ever for grain movement from Western Canada, with over 2.64 million tonnes moved.

“This performance shows what can get done when partners collaborate to create supply chain solutions to supply chain chal-

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lenges. We are very proud to have set a new record for the amount of Western Canadian grain moved in a single week. We are confident that our railroaders will continue delivering results for Canadian farmers and all of our customers,” said Doug MacDonald, Chief Marketing Officer, CN

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N Sets New Record

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Wilhelmshaven will be integrated within network in 2023

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X Logistik AG (Mercitalia Group) will integrate the deep-water port of Jade-Weser-Port Wilhelmshaven into its network. The plan is to start in seaport hinterland traffic from mid-January 2023 with a new connection between Wilhelmshaven and southern Germany.

Destinations will be the rail terminals in Nuremberg and Kornwestheim. Further terminals follow in the first half of 2023. With the new connection, TX Logistik intends to offer customers further capacity for container transport by rail and benefit from the forecast volume growth at Jade-Weser Port. Thus, it is consid-

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ered certain among experts that the volume handled will increase further in the coming year when the container shipping company Hapag-Lloyd and other members of the shipping consortium 'The Alliance' will start the first Far East service there.

In April, the EU Commission had approved Hapag-Lloyd's participation in Jade-Weser Port. Another important prerequisite for the new connection for TX Logistik, of course, is that the rail line between Oldenburg and Wilhelmshaven has been double-tracked and fully electrified. With the completion of

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all construction work by the end of 2022, the nearly 70-kilometer route can now be operated throughout with modern electric locomotives in 2023.

This will ensure efficient traction and significantly improve the accessibility of the logistics hub Jade-Weser port for freight trains. TX Logistik is currently working on the final details.

In parallel, discussions are being held with potential users of the connection, which is to be offered as part of the boxXpress production platform.

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SANCTIONS SLASH Operail VOLUMES

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he freight volume of the international transport and logistics company Operail in the first nine months of this year was 5.2 million tonnes, half less than in the same period last year.

According to the unaudited consolidated interim report for the first nine months of 2022, the freight volume of the Operail Group in Estonia and Finland was a total of 5.2 million tonnes. This is 48% less than in the same period of 2021. Over a hundred employees have been laid off due to the decrease in the freight volume. The reason for the decrease in the freight volume is the sanctions of Estonia and the European Union against the aggressor countries, which stopped the transit of Russian fertilizers and Belarusian oil products through Estonia.

However, intra-Estonian multimodal operations have shown strong growth in the first nine months of the year: the volumes were 52% higher compared to the same period last year.

“I am glad that the work in the field of intra-Estonian transport has

borne fruit and the growth has been strong. We have removed about 16,000 trucks from Estonian roads, thus making the roads safer for all road users and reducing the footprint of the transport sector,” said Raul Toomsalu, Chairman of the Management Board of Operail. “However, it is obvious that domestic trade, Estonian imports and exports, and northsouth transit will not replace the lost volumes in the near future.”

Extraordinary costs

Due to the decrease in freight volumes, the operating income of Operail decreased from €55 million to €42m compared to the same period last year.

The group was in a loss of €3.5m in nine months. Last year, it made a profit of €3.5m in the same period.

The loss has been increased by extraordinary costs resulting from layoffs and legal and consulting costs related to the preparation of the sale of assets. Nine-month EBITDA fell to €5.7m. EBITDA for the same period last year was €3.4m.

In addition to domestic multimodal operations, the wagon rental business, which continues to make a profit, has helped the company.

The company is also using funds accumulated in previous years. The concern about the future of the Estonian railway sector is nevertheless serious.

“The entire railway infrastructure in Estonia has been relying for many years on wagon rental income and large transit volumes. Now, transit volumes have decreased many times, while the railway maintenance costs are the same or increasing along with the general price increase.

If local goods are made to be responsible for the maintenance of the entire railway in the future, then these goods will be transported by road due to the price, and the future of the railway as the safest and most environmentally friendly mode of transport in Estonia is in serious danger of disappearing,” stated Toomsalu.

“The management of Operail is working hard to ensure that goods can be transported by rail in the future as well.”

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HHPI inks fourth order from ELP I

n 2019, HHPI ordered the first five EuroDual locomotives from ELP. In 2023, the eighth EuroDual locomotive will be handed over to HHPI by European Loc Pool (ELP). Thomas Schöfbauer, Managing Director of HHPI, explains: "There is no alternative to the locomotive for the type of use we use. We used to have 10 CL66 locomotives, but we can now manage them with just eight EuroDual.

In addition, with the EuroDual we can offer our employees better and healthier workplaces.”

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With up to 6.2 MW under catenary and 2.8 MW diesel drive, the EuroDual offers full flexibility on electrified and non-electrified routes.

“Compared to our old Class 66 locomotives, we have more power, more load options and save fuel at the same time. The locomotive is simply very good. It has a very high reliability, despite our very high mileage, we achieve 97% availability, adding together corrective and preventive maintenance. The cooperation between HHPI, ELP and

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their service partner Stadler Rail is good and ongoing optimisations accompany the process. You meet as equals and benefit from the experience of everyone involved,” says Schöfbauer.

“Having such a powerful customer like HHPI on our side is invaluable to us. The joint development and the associated growth process is a great pleasure and will promote further resource-saving innovations in the future," says Emiel Knarren, ELP Chief Commercial Officer.

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XPO reduces carbon footprint for Wavin in the UK with innovative road-rail freight solution

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PO Logistics, a leading provider of freight transportation services, has introduced an innovative road-rail freight solution to reduce emissions for Wavin, one of the world's top manufacturers of plastic pipe systems for residential and non-residential use. XPO has partnered with Wavin since 2018, managing the transport of products from plants in Wiltshire and South Yorkshire to destinations throughout the UK. XPO successfully trialled the road-rail combination in June and implemented the full solution in September through a rail service agreement with Malcolm Logistics. XPO transports Wavin products by road from a production site in Chippenham, Wiltshire, to Daventry International Rail Freight Terminal (DIRFT), near Crick, where they are transported by rail to Grangemouth Rail Terminal in Scotland.

From there, the XPO fleet and drivers are deployed to complete the final deliveries.

Five days a week

It is envisaged that the service will be used five days per week, with up to six multimodal rail containers trans-

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ported daily. The road-rail combination will significantly lower annual C02 emissions by an estimated 58% and reduce NOx by18.8 tonnes yearly, with the full benefits realised once all the rail freight containers are in place.

The solution is managed by XPO's technology platform, which integrates all of the company’s transport services for Wavin, including dedicated truckload, less-thantruckload and a bespoke parcel delivery service.

Andrew Crosby, Global Director – Indirect Procurement, Wavin, said: “XPO’s road-rail solution is another example of our partner’s proactive approach to innovation.

"Our collaboration with XPO is delivering measurable improvements in on-time performance and cost reduction, and now we are further reducing the emissions of our operations on pace with our sustainability goals.”

Dan Myers, Managing Director – UK and Ireland, XPO Logistics, said, "Both Wavin and XPO understand the importance of taking responsibility to drive innovation and step changes in environmental performance.

With our latest initiative, we are achieving these two critical goals together. As partners, we will continue to deliver for Wavin’s customers and the environment."

BECAUSE NOT ALL FREIGHT ON A TRAIN MOVES IN A BOX www.freight-tracks.com June 6 2022 n XX

visit: tankcontainermedia.com

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GATX Corp reports G

ATX Corporation today reported 2022 third-quarter net income of $29.1 million, or $0.81 per diluted share, compared to net income of $40.1 million or $1.11 per diluted share in the third quarter of 2021. The 2022 third-quarter results include an impairment charge of $10.8 million, or $0.30 per diluted share, related to the company’s decision to exit its rail business in Russia.

Net income for the first nine months of 2022 was $107.5 million, or $2.99 per diluted share, compared to $82.1 million, or $2.28 per diluted share, in the prior year

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period. The 2022 year-to-date results include net negative impacts of $55.2 million, or $1.54 per diluted share, from Tax Adjustments and Other Items. The 2021 year-to-date results included net negative impacts of $43.1 million, or $1.20 per diluted share, from Tax Adjustments and Other Items. Details related to these items are provided in the attached Supplemental Information under Tax Adjustments and Other Items.

“Demand for railcars remains strong across our global fleets,” said Robert C. Lyons, President and CEO of GATX. “Fleet utilisation at Rail North America remains high at

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s Q3 2022 results 99.6% and our renewal success rate was 87.2% during the quarter. Absolute lease rates in North America increased sequentially for the ninth consecutive quarter, and the renewal lease rate change of GATX’s Lease Price Index was positive 37.5% with an average renewal term of 33 months. We recently announced a new committed railcar supply agreement, totaling a minimum of 15,000 railcars, which will enable us to continue serving our large and diverse customer base in North America.

“Rail International performed well during the quarter as Rail Europe and Rail India maintained high fleet utili-

zation and continued to take delivery of new cars to meet robust customer demand. In Portfolio Management, the Rolls-Royce and Partners Finance affiliates continue to perform as expected. Global air passenger volume improved from a year ago but remains below pre-pandemic levels.”

Mr. Lyons added, “Despite a volatile macro environment, we continue to identify attractive long-term growth opportunities in our markets in addition to the signing of a new railcar supply agreement in North America. Our disciplined asset allocation strategy resulted in investment volume of $203.4 million in the quarter and $887.9 million

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year to date.”

Mr. Lyons concluded: “Based on year-to-date performance and our outlook for the remainder of the year, we expect our 2022 full-year earnings to be at the upper end of our previously announced guidance range of $5.60 to $6.00 per diluted share. This guidance excludes any impact from Tax Adjustments and Other Items.”

Rail North America reported segment profit of $64.3 million in the third quarter of 2022, compared to $66.5 million in the third quarter of 2021. Year to date, Rail North America reported segment profit of $237.8 million, compared to $209.8 million in the same period of 2021. Higher revenue in the third quarter of 2022 was offset primarily by lower remarketing income due to timing. Higher 2022 year-to-date results were predominantly driven by higher gains on asset dispositions.

At September.30 2022, Rail North America’s wholly owned fleet was composed of approximately 111,500 cars, including over 10,200 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilisation was 99.6% at the end of the third quarter, compared to 99.4% at the end of the prior quarter and 99.2% at the end of the third quarter of 2021. During the third quarter, the renewal lease rate change of the GATX Lease Price Index (LPI) was positive 37.5%. This compares to positive 18.3% in the prior quarter and negative 8.1% in the third quarter of 2021.

The average lease renewal term for all cars included in the LPI during the third quarter was 33 months, compared to 34 months in the prior quarter and 32 months in the third quarter of 2021. Rail North America’s investment volume during the third quarter was $142.5 million.

Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America’s business are provided on the last page of this press release.

4

Rail international Rail International’s segment profit was $14.5 million in the third quarter of 2022, compared to $27.0 million in the third quarter of 2021. Year-to-date 2022, Rail International reported segment profit of $67.7 million, compared to $76.1 million for the same period of 2021. The third-quarter and year-to-date 2022 segment results include an impairment charge of $10.8 million related to the Company’s decision to exit its rail business in Russia. Compared to

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the prior year periods, results were favorably impacted by more railcars on lease and negatively impacted by changes in foreign currency exchange rates.

At September 30 2022, GATX Rail Europe’s (GRE) fleet consisted of over 27,700 cars. Utilisation was 99.4%, compared to 99.9% at the end of the prior quarter and 98.1% at the end of the third quarter of 2021.

Portfolio management Portfolio Management reported segment profit of $11.2 million in the third quarter of 2022, compared to $6.2 million in the third quarter of 2021. Segment loss year-to-date 2022 was $8.4 million, compared to a segment profit of $24.5 million for the same period of 2021. Year-to-date 2022 results include an impairment charge of $31.5 million associated with the decision to sell five specialized gas vessels (recorded in the second quarter) and a net impairment charge recorded by the Rolls-Royce and Partners Finance affiliates (RRPF), of which GATX’s share is $15.3 million, related to aircraft spare engines in Russia (recorded in the first quarter). Favorable results in 2022 were driven by the performance at RRPF. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919.

headline news

Pe opl e o n th e mov e Ryan Buss is starting a new position as Plant Manager at Union Tank Car Company - UTLX. Founder and executive board member of the Transportation Club of Kansas City (TCKC), Mark Lukenbill has welcomed Michele Malski as incoming President of the growing Kansas City organisation for transportation professionals. Current membership stands at around 225 entities.

Zachary Novitske is returning to BNSF Railway as a Management Trainee January 2023 in Kansas City, Kansas. Special thanks to Alex F. Thompson, Caleb Setiawan, and George Hill for making the process as smooth as possible he says.

Phil Roberts is starting a new position as Planning Delivery Manager at DB Cargo (UK) Limited

Bailey Malone is starting a new position as Human Resources Manager at BNSF Railway.

Edoardo Costantin has started a new position as Business Development Manager for the European Market at CargoBeamer.

Kenneth Yarham MA MBA MCIRO is starting a new position as Senior Regional Freight Manager at Network Rail.

www.freight-tracks.com NOVEMBER 7 2022 n 33

headline news

Alpenglow Rail and CC&L Infrastructure acquire Alberta Midland Railway Terminal

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lpenglow Rail Services (Alpenglow) and its partner, Connor, Clark & Lunn Infrastructure (CC&L Infrastructure),have acquired Alberta Midland Railway Terminal Ltd. (AMRT), a dual-served rail terminal located in Lamont County serving customers in Alberta’s fast-growing Industrial Heartland. AMRT is located in the greater Edmonton region, approximately 30 kilometers east of Fort Saskatchewan. The acquisition of AMRT further expands Alpenglow and CC&L Infrastructure’s rail portfolio to the Province of Alberta. Alpenglow’s portfolio now comprises three rail terminals in Canada and three in the US Gulf Coast.

AMRT s p a n s 300 acres and offers customers over 1,400 railcar storage spots and a unit train capable loop track. With connections to both the Canadian National and Canadian Pacific railways, AMRT is the only dual-served rail terminal within Alberta’s Industrial Heartland. AMRT specializes in safely providing railcar staging and storage-in-transit to blue-chip industrial customers within the region. Under Alpenglow’s ownership, AMRT will expand its service offering to include transloading of product to and from railcar, railcar cleaning and railcar repair.

Drive growth

“We are thrilled to add AMRT to our portfolio,” said Rich Montgomery, CEO of Alpenglow. “The AMRT team has developed an exceptional business, and we look forward to continuing to drive growth in Lamont County. Having dual service to multiple Class 1 railroads provides AMRT’s customers competitive options resulting in lower transportation fees and a much larger network of origination and des-

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tination locations. We serve many of the same customers as AMRT at our other terminal locations, which provides us a unique opportunity to grow these relationships and continue to add value by expanding into this important market.”

AMRT President and COO Shawn I. Smith added: “AMRT was developed from greenfield over the past eight years.

We’re very proud to have witnessed our founder Darcy Heggie’s vision become reality. AMRT has a great team and valued customers which have helped us grow to this point.

We believe both our people and customers are now in good hands with Alpenglow and CC&L Infrastructure. With Alpenglow’s extensive relationships and expertise in transloading – a service that is in high demand in our region, and together with their access to capital, Alpenglow is the right party to shepherd AMRT through this important next phase of growth.”

This is Alpenglow and CC&L Infrastructure’s sixth terminal acquisition since they formed their partnership in 2019. Their portfolio includes VIP Rail, a rail business that encompasses two railcar storage, switching, transloading, and railcar cleaning terminals in Sarnia, Ontario, and USA Rail Terminals, a portfolio of three similar rail terminals located in the US Gulf Coast.

“The AMRT transaction is very strategic to our portfolio,” said Alpenglow’s Chief Strategy Officer, Josh Huster.

“Through the acquisition of AMRT, Alpenglow is now the only rail terminal business serving three major petrochemical centers in North America: the Alberta Heartland, the U.S. Gulf Coast, and Southwestern Ontario. This allows us to serve our customers in multiple markets, and to create pitch and catch opportunities for our customers as all three energy hubs are very integrated.”

headline news

Hall brings NS experience to Patriot Rail

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erry Hall has joined Patriot Rail as Chief Operating Officer. In this role, Hall leads the day-to-day operations and safe and efficient movements of Patriot’s 31 regional and freight short-line railroads and oversees the company’s other transportation and service operations.

Prior to becoming Chief Operating Officer at Patriot Rail, Hall served as Vice President Transportation for Norfolk Southern, where he managed the transportation network. He achieved a record low operating ratio, reorganised the transportation leadership team, and consolidated the mechanical field operations into the transportation department to improve efficiency and better align responsibilities.

Under Hall’s leadership, Norfolk Southern achieved a then-record of intermodal lifts and record intermodal units per train while implementing advanced technologies to improve throughput in terminals. He managed the largest hump terminal, the two biggest divisions, and the busiest region on Norfolk Southern’s system.

During his operations tenure at Norfolk Southern, Hall transformed a division with the system’s worst safety performance to the best in less than a-year-and-a-half and also won the coveted Chairman’s Award for achieving a record safety performance for any Norfolk Southern transportation divisions.

Hall has served as a board member of the Belt Railway Company in Chicago, the Consolidated Rail Company in Philadelphia and the Pan Am Southern Railway in North Billerica, MA. He received a Bachelor of Science in Civil Engineering from the University of Alabama and graduated from the Advanced Management Programme at Harvard Business School.

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headline news

A model world for GATX

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here was a very special handover last month in Hamburg. The Miniatur Wunderland Hamburg added a number of GATX freight railcars to their already existing GATX tank car fleet.

The Miniatur Wunderland is without doubt a 'wonder' not only because of its landscape and surface area, but also due to the technology used to under-pin the exhibit. The 1490 sq m layout has 1040 trains and took 760.000 hours in construction.

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headline news

"Successfully reunited."

A rail freight laugh Tweeted by DB Cargo AG. Photo: Copyright: DB/Patrick Kuschfeld

headline news

What does condition-based main R

ail vehicles are like cars: they have to be taken to the workshop where certain maintenance and repair work is carried out and spare parts are exchanged after a certain number of kilometres.

The Rail Cargo Group relies entirely on condition-based maintenance in order to optimise these steps. What this means in detail and how optimum maintenance actually works is explained in the following article.

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headline news maintained in good time.

This requires, however, that all vehicles are equipped with appropriate telematics and sensor technology. This provides us with the necessary data so that we can pinpoint when the rail vehicles have to go to the workshop and what needs to be done in each case.

Vehicle data undergoes continuous analysis in order to make this possible.

Only then is it possible to speak of both optimised and optimal maintenance. After all, our goal is to improve the operational readiness and quality of our vehicles and thus avoid rail vehicle failures. This in turn ensures their maximum availability and reliability in the most cost-effective way and increases customer satisfaction.

Decisive competitive advantage

Condition-based maintenance thus enables optimal vehicle implementation. This means that rail vehicle maintenance costs can be kept as low as possible.

And that is crucial in international rail freight transport: in addition to operational and technical knowhow, data analysis and optimal utilisation are what will really make the difference for vehicle maintenance in the future.

This is an advantage that our customers will feel, not least because the vehicles can then be used to their best use and their full capacity.

ntenance mean?

Condition-based maintenance means setting the individual rail vehicle maintenance steps in such a way that the operating time of each component is used in the best possible way and the parts are also replaced or

Roland Steinberger ÖBB - Technical Services

a rail freight story again. reight-tracks.com www.freight-tracks.com NOVEMBER 7 2022 n 39

Railway Reading

Children’s book celebrates d

'My Mummy Is A Train Driver': to be relea

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new children’s book, aiming to break down gender stereotypes in the UK rail industry, is being released on November 8 2022 as part of a wider social initiative to address misconceptions about careers, that can start from the earliest ages.

Rail companies across the UK have pledged their support including, Freightliner, GB Railfreight, West Midlands Railway and London Northwestern Railway, DB Cargo UK Ltd, MTR Elizabeth line, ScotRail, Arriva, Southeastern Railway, Great Western Railway and C2C. All have come together to support independent publisher Butterfly Books to produce My Mummy Is A Train Driver – the ninth installation in a series of children’s books that aim to promote diversity and inclusion and tackle gender biases across a myriad of industries – from plumbing and nursing to engineering and firefighting.

My Mummy Is A Train Driver is a

culmination of the personal insights and perspectives of a diverse group of people working in the rail industry.

The aim is to inspire young children to consider a future career in rail and to showcase the welcoming and inclusive

work environment the rail industry continues to foster.

Kerrine Bryan, co-author and founder of Butterfly Books commented: “As an engineer by profession, I’ve worked in a sector that has long given

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Railway Reading

diversity in UK rail industry

ased tomor row

the impression that it’s a dirty, manually difficult career almost exclusively for white old men. In reality, there are many roles within engineering and working on sites is just a tiny element of that. The rail sector faces similar misconceptions when, in reality, the industry has done much to improve diversity and inclusion through various initiatives. Today there are many roles that women assume within the industry, including train drivers, and this deserves recognition and support.”

Initiatives Over the years, the UK’s rail sector has worked hard to improve gender parity via various initiatives. These include establishing employee networks groups, nominating senior champions of inclusion, working with external organisations on, for example, Women in Rail’s EDI Charter, Business in the Community’s Race at Work Charter

and working on attraction, recruitment and retention strategies to better represent the communities we serve. Additionally, all train and freight operating companies have committed to introducing or improving the gathering of diversity data of which the targets are that at least 10% of train driver roles in the industry will be occupied by women by 2025, and at least 20% by 2030. Currently, the overall target achieved sits at 7.4 % – 1425 drivers out of 19239 across all operators (RDG Workforce Data) Alison Bell, People and Corporate Affairs Director for MTR UK and chairperson for the Rail Delivery Group’s Diversity & Inclusion steering group, commented: “Working together, the rail industry has strong plans in place to champion an intersectional approach to diversity. This includes implementing training to ensure our environment is a safe space for everyone, promoting positive role models,

and remaining accountable for the impact of our efforts. We recognise that there is still much work to do across the full equality, diversity and inclusion spectrum and we are working closely with colleagues and experts to drive tangible progress.

“Partnering with Butterfly Books to produce My Mummy Is A Train Driver is part of an ongoing commitment to address diversity and inclusion in the industry holistically. By capturing the imagination of school-aged children, we hope to inspire them to think about the rail industry as a future career opportunity. It also provides an opportunity to demonstrate to parents and carers that rail is an inclusive, rewarding and forward-thinking sector.”

My Mummy is a Train Driver is available to pre-order via the Butterfly Books website:

2023 offer rail freight? cks December 10 2022 www.freight-tracks.com NOVEMBER 7 2022 n 41

Railway Reading

Heljan is producing a model loco that only had two examples built in real life.

SEEING DOUBLE: MODEL NER ES1 CLASS LAUNCHED

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he Danish model railway manufacturer Heljan has teamed up with a British railway museum and leading UK model railway retailer to produce a model of an unique British class of shunting locomotive that only ever had two examples built in real-life.

Locomotion Models of the National Railway museum and Rails of Sheffield will release a Heljan model of NER Electric Shunting Loco ‘ES1’ No.1 as the next loco in the National Collection in Miniature Series.

The North Eastern Railway (NER) Class ES1 locomotive was a class of two steeplecab electric locomotives commissioned by the NER in 1902. Both locomotives passed to the London and North Eastern Railway in 1923 and then to British Railways in 1948, but both were withdrawn before TOPS numbers could be applied.

The model, to be retailed at £220, is an OO gauge (1:76) offers museum quality detail, LED cab light and headlights, powerful 5-pole motor, DCC and sound ready, finescale sprung pantagraph and sprung buffers.

Early adopter The North Eastern Railway was an enthusiastic and relatively early adopter of electric traction for railways. As part of a 1902 scheme to electrify the suburban railway networks in the Tyneside area, the NER's Chief Mechanical Engineer Wilson Worsdell also wished to electrify a three-quarter mile (1.2 km),

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Railway Reading

horseshoe-shaped freight line that went from Trafalgar Yard in Manors to Newcastle Quayside Yard. Passing through three tunnels, this line had gradients as steep as 1:27 (3.70 %) and a number of sharp curves: it presented a formidable challenge for steam traction. Working conditions inside the tunnels were atrocious because the locomotives had to work exceptionally hard to manage the gradients which meant they produced vast quantities of choking fumes that could not disperse from the tunnels; the sparks they produced were a constant fire risk to the flammable packing materials in the yards. Electrification was the obvious answer.

The specification for new electric locomotives meant they had to start a train of 150 tons on the steepest gradient, while on the level they were expected to be able to haul 300 long tons (305 tonne; 336 short tons) at 14 mph (23 km/h).

The end-to-end journey on the branch was to be completed in 4.5 minutes.

In 1900, General Electric (GE) and Thomson-Houston built steeplecab-type locomotive for the Milan-Varese railway in Italy, electrified at 650 V DC using the third rail system.

The North Eastern Railway's ES1s were derived from that American design, although they were designed from the start

for both third rail and overhead operation: the Newcastle Quay branch used both systems—third rail in the tunnels, and overhead lines on the rest of the line.

A contract was signed with the British Thomson-Houston company on December 15 1902, for delivery by the end of the following year. British Thomson-Houston sub-contracted the mechanical parts to Brush Electrical Engineering Co. The electrified line was operational from June 5 1905, and in the following year both locomotives performed exceptionally well. In 1906, they were fitted with electric heaters, the men having complained they were too cold on wintry mornings. Early photographs show the locomotives with "CLASS ELECTRIC 1" painted on the bufferbeams, but this does not appear in official records.

On June 14 1946, Nos. 1 and 2 were renumbered to 6480/1; and under British Railways, they became Nos. 26500/1 in April 1948 From 1968, ES1 (number 26500 under British Rail's number scheme) was transferred to Leicester Railway Museum.

After that closed, in 1977 it was taken into the National Collection of the National Railway Museum, and is currently on display at Locomotion, Shildon.

www.freight-tracks.com NOVEMBER 7 2022 n 43

KEEP THE DATE: Railway industry calendar of events November TBC 07-09 November 08-10 November 09 November 10 November 14-17 November 15-17 November 25 November 29 Nov - 01 Dec 06 December 07-08 December 08 December

Barcelona, Spain Warsaw, Poland Amsterdam, Netherlands Stockholm, Sweden Manchester, UK Lisbon, Portugal TBC London, UK Malaga, Spain London, UK Duisberg, Germany Paris, France

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Rolling Stock Forum 2023 TransCityRail Midlands Golden Whistle Awards Rail in Scotland SIFER13th International Exhibition of Railway Technology Railtex Railtex Railway Innovation Awards Expo Ferroviaria

2023 07 February 09 February 03 March 08 March 28-30 March 09-11 May 09-11 May 23 May 03-05 October

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

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Press releases: editor@freight-tracks.com

www.freight-tracks.com NOVEMBER 7 2022 n 45

Bye-bye 2022, Hello 2023

T

his year represents the third year since the Covid pandemic hit the world's population. It was also the year that Freight Tracks was launched.

Drawing on the talents of some of the finest railway journalists writing today,we set out to bring rail freight to the fore.

In our last issue of 2022, due out on Monday December 19, we will look back at the year just completed and what might lie ahead in the year to come.

We will be inviting industry leaders to comment on 2022 and what they might expect in 2023.

At the same time, we will be providing the opportunity for firms in the rail freight industry supply chain to invest in advertising to thank those customers that kept loyal during the year while reaching potential advertises in 2023.

We welcome contributions from our readers in this issue.

Just get in touch with the email below.

editor@freight-tracks.com