Freight Tracks issue 26

IS EUROPHOENIX'S CLASS 91 DREAM AT THE END OF THE ROAD?

CUSTOMERS INVESTED

$3.2B ALONG NS NETWORK LAST YEAR

GATX CORP REPORTS Q4

RUSSIAN ROULETTE FOR RAIL FREIGHT

CLICK THE COVER TO VISIT THE LAST ISSUE OF FEIGHT TRACKS!

HAS EUROPHOENIX'S CLASS 91 DREAM REACHED THE END OF THE ROAD?

By Jonathan Webb

Back in 2019 Europhoenix acquired two former LNER (London North Eastern Railway) class 91s locos – with a view to exporting them to Hungary, where they would be employed on freight work. It had been envisaged that up to 20 other class 91s could have followed in the same footsteps.

The two locomotives – 91117 and 91120 –were bought from Eversholt Rail Group, after coming off lease from LNER, as the Hitachibuilt Azumas started to take over more and more diagrams along the East Coast Main Line that links London with Edinburgh.

However, the Coronavirus pandemic saw

these well laid out plans cast asunder – both locomotives were in the process of being prepared for export when the outbreak saw proceedings grind to a halt. Any suggestion that they could be used in the UK was refuted by Europhoenix who said that it was very “unlikely” as “there just isn't anything for them to do”. It is envisaged that the locomotives will work as a permanent pair – blunt ends coupled together. Having spent a lifetime hauling expresses at high-speed, the class 91s have had to be regeared to a lower rating so that they are suitable for heavy freight haulage duties.

It's not the first time Europhoenix has pur-

chased redundant British locomotives with a view to exporting them. Hungary was the destination for a number of class 56s and 86s, with the company also supplying Bulgaria with class 86s and 87s.

The delay in exporting the two class 91s corresponded with a challenging economic climate – resulting in a reduced requirement for their

use oversees. Europhoenix is still confident, however, that an operator can be found for the class 91s. In the meantime 91120 has gone on an initial 12 month loan to Crewe Heritage Centre – just a short distance from where it rolled off the production line at Crewe Works. The agreement may be extended if Europhoenix still has no

requirement for it after that period. 91117 remains stored at Barrow Hill, where it has donated a number of parts to preserved 89001, a fellow East Coast Main Line regular. While a number of class 91s are still in service with LNER, some have already been broken up for scrap. As the years pass, it becomes increasingly unlikely

that the class will find work once LNER has finished with them.

Relatively expensive

Open air storage is never good news for any redundant stock – even more so if that stock happens to be electric. Even if the two Europhoenix locomotives do find use

oversees, there is still the inherent problem of operating a fleet of two – something that can make operation difficult in terms of spares and general maintenance.

This in turn can make a small fleet relatively expensive to operate, and with one of the two already having been partially stripped, even an optimist would have

to conclude that maybe the best chance of them being exported is in a shipping container of scrap to China. Not all gambles pay off and the shock ways of the Ukraine war coupled with a general recession due to the pandemic were two things that no one would ever have thought about factoring into any future business plan.

Rail freight's Russian

EXCLUSIVE: By

RUSSIA’S rail routes are the West's weakest link in keeping the arms flowing to Ukraine, yet there appears to be a laissez-faire attitude to the possibility of them suddenly being cut – rendering the West near helpless in its aim to continue pumping arms into a raging conflict.

Former UK prime minister Boris Johnson was mercilessly ridiculed after claiming that Russian president Vladimir Putin had threatened him with a missile, during a telephone call to discuss the Ukraine war – something that the Russian government dismissed as laughable.

However, those fighting Russia should have rather more pressing concerns to worry about and despite all their bluster seem to have forgotten that Russia could have the last laugh if it decided to disrupt rail freight traffic passing through its country – traffic that is being used to produce weapons for its enemies. Talk of supplying Ukraine with tanks, missile launchers and all manner of military hardware would be purely academic if there were to be no ammunition to supply them with.

Major freight route

Western arms manufacturers see Russia as vital to their survival. Russia is situated at the centre of a major freight route that supplies western arms manufacturers with an endless supply of metals

that are required to produce microchips, electronics and ammunition for modern weapons. The majority of the necessary metals needed to manufacture these vital components are mined in China. The war has seen Russian Railways JSC, along with other freight companies, convey an ever-increasing volume of such materials – materials that would severely hamper Russia's enemies should they suddenly be curtailed.

During the first nine months of 2022, the amount of rare earth metals from China that were carried by train across Russia, reached a staggering 36,074 tons. This figure is more than double the volume transported for the whole of 2021. The value of that trade rose by more than 89%, to €377 million ($408 million) through September.

Michael Wurmser, the founder of Norge Mining Ltd said: "It is astonishing that despite all the sanctions, this supply chain still works. It underlines the importance of those rare earths and shows how much we depend on them.”

Norge Mining has held talks with industry executives in a bid to create other supply lines of strategic materials. One option being considered is Norway, where Norge Mining has considerable business interests.

The country has significant deposits of vanadium and titanium, both metals being vital to the defence industry. Production of these metals is

Russian roulette

Jonathan Webb

currently dominated by China and Russia.

Currently, China supplies in excess of 90% of rare earth metals consumed by European industry – the latest European Union figures illustrate that Russian rail lines continue to be a busy route and a key component of Beijing’s Belt and Road initiative.

European governments recognise just how crucial the Russian rail freight network is to the West's

by sanctions, goods can still be impounded at the borders with Europe if Custom officers believe any tampering has taken place during the journey – such as swapping Chinese goods for Russian ones. After being sealed in China, the goods must travel through Russia and be verified as intact by European Union officers. One example of potential problems would be if a company buys Chinese coal and it unknowingly gets swapped for Russian

economy and last July the EU clarified that freight passing through Russia is not subject to sanctions.

Away from the transport of rare metals – rail transport via Russia to Europe has suffered to some degree or other. Most of this decline is put down to nervous European companies, with both BMW and Audi having ceased sending their cars by rail to China. Although westbound consignments can still travel from China via Russia, unhindered

coal during the journey. The customer would be prevented from moving that coal out of Russia, to their coal-fired power station in Europe. Such an incident would prove to be very costly.

Rare earth metal lanthanum is commonly used by western arm manufacturers to produce armour-piercing ammunition. Tungsten, another rare earth metal is used in the production of anti-tank weapons made by Thales Air Defence Ltd. and

Rheinmetall AG . The majority of both metals imported into Europe, have been mined in China.

European vulnerability

The war has exposed the West's supply chain vulnerability by revealing just how dependent Europe is on Russia's rail freight corridors in regard to shipping goods from China. Although the amount of China -EU freight passing through Russia amounts to just 3-4% overall – this being a tiny fraction when compared to the amount of freight using ships, rail is significantly faster than moving goods by sea. For example, a freight train from Wuhan, China can cross Russia and arrive in Duisburg, Germany in just 16 days. To make the same journey by boat would take twice as long.

There are a number of route options for trains travelling between China and Europe. Since 2016, the northern rail corridor had seen tremendous growth, with the equivalent of 692,500 20 feet containers being conveyed in 2021. As can be expected, the Ukraine conflict resulted in a rapid decrease of goods carried, with only 187,000 conveyed between January and April 2022.

There are alternative middle and southern rail corridors, but these have capacity constraints –making them unsuitable to absorb any extra traffic that would be displaced from the northern corridor. Such limitations are of no immediate concern, as the freight traffic is not subject to EU sanctions. However, should hostilities escalate, problems could arise in the medium to long term.

Overlapping supply chains regarding adversaries is nothing new. During World War II Japan imported scrap metal from the United States, for use in its ship building – many such vessels going head-to-head with American ships. Soviet metal assisted the west during the Cold War by helping produce weapons aimed at Moscow.

Painful revenge

Russia could exact a painful revenge. If Russia feels backed into a corner by the western armed Ukraine (one has to remember that Ukraine is en-

tirely reliant on western money and arms), it would be logistically sensible for Russia to either increase the costs for European bound goods using its rail network or, a take a more extreme course of action and block the 15 European-bound wagons that use the route most days.

The latter course of action would devastate the west's military strategy and put Russia on the front foot against a weakened Ukraine. Chinese mined tungsten accounts for more than 83% of world production – disruption would leave western economies in disarray. Away from military use, the rare earth metal is used in batteries, magnets and microchips etc. Two thirds of the world's known

reserves are controlled by either China or Russia and, according to Tungsten West PLC, soaring demand is being driven by "defence spending fuelled by the Ukraine and Russia conflict”. The company is in the process of attempting to open a Tungsten mine in England later this year.

Taiwan conundrum China's metal supplying role in the Ukraine war has the potential to spill

over into other areas of American foreign policy. As we can see, the west, especially America, is heavily reliant on Chinese metals. This puts America at the centre of a conundrum regarding the threatened invasion of Taiwan. Would it risk losing access to such a precious resource, in an effort to defend Taiwan?

The Ukraine war could drag on for years and with China stating that it intends to invade Taiwan by 2027, could America supply arms on two fronts, even if it wanted to?

NORFOLK Southern partnered with 120 companies to facilitate 159 industrial development projects in 2022. The projects expanded operations or created new facilities along the company's rail network. Collectively, they represent $3.2 billion in investment and the creation of more than 3940 new jobs.

"Our customers continue to leverage our business development and real estate expertise in addition to our world-class logistics network," said Norfolk Southern Executive Vice President and Chief Marketing Officer Ed Elkins. "With more than 825 development-ready industrial sites, approximately 300 rail-to-truck transload facilities, and 260 short-line partnerships, we have the capacity and connections to support our customers and earn new business."

Norfolk Southern's sustainable supply chain offerings and geographic footprint are attracting companies focused on growth, all in response to new market demands. According to Area Development, a leading publication for site selectors, nine out of the top 10 states in which to do business are served by Norfolk Southern. In addition, several economic trends are supporting future growth for the company and its customers, including increasing electric vehicle production, growth of e-commerce, reshoring/onshoring and a focus by businesses to reduce their carbon emissions.

"In partnership with public and private sector leaders, Norfolk Southern is a catalytic agent in economic development," said Norfolk Southern Vice President Business Development and Real Estate Kathleen Smith. "We collaborate with customers and economic development allies to unlock the value of utilizing rail in supply chains, and we work together to accomplish the shared goal of creating jobs, investment, and volume."

Strong project pipeline

Norfolk Southern has a strong project pipeline of customer initiatives in 2023 and beyond. These include 33 companies that have announced plans for a new production facility or a significant plant expansion along Norfolk Southern's rail network – or with one of Norfolk Southern's short-line partners. The announcements represent $30 billion in projected investment and are prime opportunities for business development. For example, in May of 2022, Hyundai Motor Group stated plans to invest $5.54 billion in Bryan County, Georgia for its first fully dedicated electric vehicle and battery manufacturing facility.

"We help our clients identify rail-served sites that offer companies reliable, sustainable, and efficient transportation for their shipments," said Norfolk Southern Group Vice President Industrial Development Craig Hudson. "Looking to 2023 and beyond, we are confident that our industrial development efforts will contin-

ue to drive growth for both our customers and Norfolk Southern, and our strong pipeline of opportunities underscores the confidence that our customers have in Norfolk Southern and freight rail."

In addition to the company's traditional business development capabilities, Norfolk Southern operates a customisable industrial site and transload location search engine, NSites. By using targeted filters, companies can sift through results based on acreage, location, existing warehousing, and proximity to highways, intermodal terminals, and port facilities.

Customers that NS provided industrial development support to included:

Commercial Metals Company, as the company invests $450 million in Berkeley County, West Virginia for a new rebar steel mill.

Packaging Corporation of America

(PCA), as the company invests $440 million to produce linerboard used for corrugated packaging in Jackson, Alabama.

Mark Anthony Brewing, as the company invests $400 million in a new state-ofthe-art brewery and production facility in Richland, South Carolina.

NewCold, as the company invests $333 million in building and operating an advanced, large-scale distribution facility in McDonough, Georgia.

CONSOL Energy as the company invests $100 million to open the Itmann Preparation Plant in Itmann, West Virginia, to produce premium, low-vol metallurgical coking coal to serve the domestic and international steel markets.

Fairwinds Landing as they invest $100 million in Norfolk, Virginia to transform Lambert's Point Docks into a maritime operations and logistics center that supports the offshore wind, defense, and transportation industries.

NEW RAIL FREIGHT SERVICES SUCCESSFULLY LAUNCHED IN WILHELMSHAVEN

TX LOGISTIK has successfully launched its new hinterland connections between Wilhelmshaven and southern Germany. Since mid-January, the rail logistics company, which is part of Mercitalia Logistics, has been running one round trip per week between the Jade-Weser Port and the rail terminals in Nuremberg and Kornwestheim.

Both routes are operated as direct connections and offered via the boxXpress production platform.

The destination in Nuremberg is the Tricon container terminal and in Kornwestheim the Duss Kombiterminal, which acts as a hub for the Stuttgart/Ludwigsburg area.

With the new connections, TX Logistik not only offers

its customers additional capacity for container transport by rail. The integration of the Jade-Weser Port Wilhelmshaven into the network is at the same time an important step for TX to benefit from the forecast further volume growth at the Jade-Weser Port.

As Germany's only deep-water port, Wilhelmshaven is increasingly the destination of ever larger container vessels and is already served by eight shipping companies on a scheduled basis.

Based on this development, TX is planning to add more connections between Wilhelmshaven and terminals in the hinterland by rail in the first half of this year.

New railcar type for ÖBB Rail Cargo Group

GATX Europe's railcar selection menu has just got bigger with the latest addition of grain railcars, dubbed Tagnpps. GATX is introducing this new railcar type with a strong partnership as it welcomes the collaboration with ÖBB Rail Cargo Group, a valued customer across Europe.

In preparation to meet upcoming demands, more than 350 new grain railcars are being added to the fleet, with the first client handover taking place mid-January.

Johannes Friess, Business Unit Manager at GATX Rail Europe said: “We’re starting the new year with a strong addition to our fleet, both in quality as well as in quantity. With this addition, our customers can transport grain, an essential food item, safely and sustainably year round.”

Reinhold Pölzl, Business Unit Manager at ÖBB Rail Cargo Group added, “We have been looking forward to GATX Rail Europe expanding its fleet to include grain railcars as the demand for the Tagnpps railcar type keeps growing across the continent. It is always our goal to anticipate and deliver customer demands, and in GATX Rail Europe, we have found a strong partner with very similar values.”

With an experience-based design paired with GATX’s eye-catching lime green paint and state-of-the-art telematics and sensor devices, the new railcar is a market standard

for grain transport, says GATX. The new grain railcars in two different sizes to fulfill different delivery types. The Tagnpps grain railcars have two possible dimensions, 95 and 103 cubic metres, resulting in different car lengths and weight to best meet the customers’ specific loading, transport and unloading requirements.

Railcar enthusiasts will have the opportunity to explore the grain railcar’s specific attributes and features at the Munich 2023 Transport & Logistics fair in May.

GATX CORP REPORTS Q4 AND FY 2022 RESULTS

n Rail North America and Rail International fleet utilisation remained above 99%

n Lease rates in North America increased sequentially for tenth consecutive quarter

n Full-year investment volume exceeded $1.0 billion for third consecutive year

n Company initiates 2023 earnings guidance of $6.50–$6.90 per diluted share

GATX CORPORATION reported 2022 fourth-quarter net income of $48.4 million or $1.36 per diluted share, compared to net income of $61.0 million or $1.69 per diluted share in the fourth quarter of 2021. The 2022 fourth-quarter results include a net negative impact from Tax Adjustments and Other Items of $0.18 per diluted share. The 2021 fourth-quarter results include a net positive impact from Tax Adjustments and Other Items of $0.11 per diluted share.

Net income for the full-year 2022 was $155.9 million or $4.35 per diluted share, compared to $143.1 million or $3.98 per diluted share in the prior year. The 2022 and 2021 full-year results include net negative impacts from Tax Adjustments and Other Items of $1.72 per diluted share and $1.08 per diluted share, respectively. Details related to Tax Adjustments and Other Items are provided in the attached Supplemental Information.

"GATX produced solid financial results in 2022, with each

business unit contributing to a positive year," said Robert C. Lyons, president and chief executive officer of GATX. "Capitalizing on strong demand for existing assets and an improved railcar leasing environment, Rail North America exceeded segment profit expectations. Our commercial team achieved higher renewal lease rates while maintaining over 99% fleet utilization.

"We continued to improve the efficiency of our maintenance network, completing the vast majority of repair work at our owned facilities. We further optimized our fleet by selectively selling railcars into a robust secondary market, generating $104.6 million in remarketing income for the full year.

"Rail International performed well despite supply chain disruptions that delayed new car deliveries in Europe and India.

"Demand for railcars in both regions was strong, and Rail Europe continued to experience increases in renewal 4

lease rates compared to expiring rates. In Portfolio Management, the Rolls-Royce and Partners Finance affiliates performed better than we anticipated as long-haul, international air traffic improved from a year ago.

"We capitalised on a number of attractive opportunities to grow our global asset base in 2022. In Rail North America, we invested more than $815 million and entered into a new six-year supply agreement that enhances our ability to meet customer needs.

"Despite delivery delays internationally, we invested over $176 million at Rail Europe and almost $68 million at Rail India. In the fourth quarter, we increased our direct investment in aircraft spare engines by acquiring five additional engines for nearly $150 million. In total, our 2022 investment volume was over $1.2 billion."

Lyons added: "For 2023, we expect the railcar leasing environment in North America to remain favourable. We project slightly higher segment profit at Rail North America as higher lease revenue and continued strength in remarketing income are expected to offset rising interest expense and modestly higher maintenance expense.

"Rail International’s 2023 segment profit is expected to increase as strong demand for new and existing railcars continues in Europe and India. In Portfolio Management, we anticipate higher earnings from RRPF driven by ongoing improvements in the operating environment for global air travel. Combined with increased earnings from GATX Engine Leasing, we expect Portfolio Management to generate higher segment profit in 2023."

Lyons concluded: "We enter 2023 facing uncertain economic conditions in North America and Europe, continued global supply chain challenges, and a heightened interest rate environment. Fortunately, GATX has a 125-year his-

tory of navigating volatile markets, and our global franchise positions us for continued strong performance in the year ahead. Based on our current outlook, we expect 2023 earnings to be in the range

ment profit of $321.3 million in 2022, compared to $285.4 million in 2021. 2021 fourth-quarter and year-to-date results include a net positive impact of $5.3 million from Tax Adjustments and Other

of $6.50–$6.90 per diluted share, which would mark another excellent year for GATX."

Rail North America

Rail North America reported segment profit of $83.5 million in the fourth quarter of 2022, compared to $75.6 million in the fourth quarter of 2021. For the full year, Rail North America reported seg-

Items. The increase in 2022 fourth-quarter and full-year segment profit was primarily the result of higher lease revenue and higher remarketing income.

As of December 31 2022, Rail North America’s wholly owned fleet was approximately 109,600 cars, including more than 8600 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilisation was 99.5% at the end

of the fourth quarter, compared to 99.6% at the end of the prior quarter and 99.2% at 2021 year end. During the fourth quarter, the GATX Lease Price Index (LPI), a weighted-average lease renewal rate for

pared to 87.2% in the prior quarter and 89.2% in the fourth quarter of 2021.

For full-year 2022, the renewal lease rate change of the LPI was positive 23.4% and the average renewal term was 33

2022, compared to $28.9 million in the fourth quarter of 2021. Full-year segment profit was $85.9 million in 2022, compared to $105.0 million in 2021. 2022 fourth-quarter and full-year results include impairment charges of $3.8 million and $14.6 million, respectively, related to the Company’s decision to exit its rail business in Russia.

Compared to the prior year, lower segment profit was predominately driven by foreign exchange impacts, partially offset by more railcars on lease.

As of December 31 2022, GRE’s fleet consisted of over 28,000 cars and utilisation was 99.3%, compared to 99.4% at the end of the prior quarter and 98.7% at 2021 year end.

Portfolio Management

Portfolio Management reported segment profit of $23.1 million in the fourth quarter of 2022, compared to segment profit of $36.3 million in the fourth quarter of 2021. 2022 fourth-quarter segment profit includes an impairment charge of $2.8 million associated with the decision to sell the specialised gas vessels.

Lower segment profit in the fourth quarter of 2022 was driven by lower gains on asset dispositions at the Rolls-Royce and Partners Finance (RRPF) affiliates.

Full-year 2022 segment profit was $14.7 million, compared to $60.8 million in 2021.

a group of railcars representative of Rail North America’s fleet, was positive 29.7%.

This compares to positive 37.5% in the prior quarter and negative 0.7% in the fourth quarter of 2021. The average lease renewal term for railcars included in the LPI during the fourth quarter was 34 months, compared to 33 months in the prior quarter and 37 months in the fourth quarter of 2021. The fourth-quarter renewal success rate was 85.7%, com-

months, compared to negative 8.5% and 32 months in 2021. The renewal success rate for 2022 was 85.5%, compared to 82.7% in 2021.

Total investment volume was $815.9 million in 2022.

Rail International Rail International’s segment profit was $18.2 million in the fourth quarter of

Full-year 2022 results include an impairment charge of $34.3 million associated with the decision to sell the specialized gas vessels and an impairment charge recorded by RRPF, of which GATX’s share is $15.3 million, related to aircraft spare engines in Russia that RRPF does not expect to recover.

Excluding these impacts, higher share of affiliates’ earnings from RRPF contributed to the favourable 2022 full-year results.

XPO and Schneider Electric launch rail-road between France and UK

XPO, A leading provider of freight transportation services, and Schneider Electric, a global leader in digital energy management and automation, have deployed a new multimodal freight solution between France and the UK. The sustainable road-rail combination is the latest innovation in the companies' longstanding European partnership.

XPO has been a strategic partner to Schneider for 10 years, providing Schneider with full truckload, less-thantruckload and multimodal services in France and Spain.

Klaids Lafon de Ribeyrolles,Vice President – Indirect Procurement for Schneider Electric, said: "As a market leader in Europe, our growth strategy prioritises innovation and continuous improvement. "

XPO's bespoke solution for Schneider is managed by proprietary XPO technology and moves parts and components on round-trip runs between Schneider's warehouse in Mions, France, and its production plant in Telford, UK. XPO's road fleet transports containers of freight from Mions to the

rail terminal in Vénissieux; from there, the containers travel by train through the Eurotunnel or terminate at Dourges, where they cross the Channel by ferry. Once in the UK, XPO's road fleet completes the deliveries to Telford.

By utilising rail and ferry to cover more than 650 km of the trip, XPO has created additional capacity for Schneider and will reduce carbon emissions by an estimated 46% per year (172 tonnes of CO2), compared with all-road transport of 200 full truckloads.

Luis Gomez, President – Europe for XPO, said: "Our multimodal corridors are connecting key trade areas in Europe by road, rail and sea in response to customer requests. These solutions deliver cost efficiencies and contribute to the decarbonisation of supply chains.

"We are strongly committed to alternative transport solutions and will ensure that our valued partnership with Schneider Electric receives the full benefit of our innovation," he concluded.

Operail sells another batch of wagons

OPERAIL Leasing has sold 807 rental wagons by auction. ATASU Group from Kazakhstan and Skinest Rail from Estonia proved successful in the auction, with for €22.1 million raised in the sales to these companies.

More than 40 companies. took part in the auction. Twenty interested parties submitted their tenders in the different phases of the process.

In the first stage, 522 wagons located in Ukraine were sold to the Ukrainian company Fortior Capital and to the Estonian company Teslar Trans; the total amount of the transactions was €6.51 million.The price of the wagons in Ukraine was influenced by the war, as it is difficult to transport them out of the country.

After a long and tense sales process which involved negotiations with several companies, Operail concluded a sales contract with two subsidiaries of ATASU, one of the largest groups of logistics companies in Kazakhstan, in late December. The companies purchased 410 wagons in total. A sales contract was concluded with the Estonian wagon rental company Skinest Rail, which purchased 397 wagons.

The majority of the wagons sold are covered with rental contracts. All of the lessees are European companies. The

wagons are primarily located in Kazakhstan, Tajikistan, Mongolia, and the Baltic states. No wagons have been rented to Russia.

The process for selling the remaining rental wagons of AS Operail Leasing is currently in the stage of negotiations with the parties that submitted the best tenders.

“The business was expanded because Russian transit via Estonia shrunk significantly after the events of the Bronze Night and freight transport as an independent business line was no longer feasible. As freight transport is strategically important for the state, we had to find ways to survive from the economic perspective. We sought for alternative sources of income until we would be able to optimise and reform freight transport in Estonia. The media has painted a picture of renting wagons being a ‘Russian business’ for Operail. This is not true, the business was launched for the opposite reason – to reduce the dependence of the transit of goods from Russia,” says Raul Toomsalu, Chairman of the board of AS Operail.

The business model always consisted of renting wagons for use them for freight transport on 1520 mm gauge railroads.

DP WORLD INVESTS £12M IN NEW RAIL INFRASTRUCTURE

DP WORLD is investing £12m in two new Rail Mounted Gantry (RMG) cranes at London Gateway to meet fast growing demand for rail connections from customers at the smart logistics hub, which will increase its capacity by a third when a new fourth berth opens next year.

The £12m investment in the cranes – which are used for the quick, safe and automated handling of containers and will be operational in time for the new berth’s opening – will lift rail capacity at London Gateway by 50%.

Andrew Bowen, Port Operations Director at London Gateway, said: “We are delighted to be making a further investment in our rail capability and rail capacity with two new RMG cranes which will arrive in the same year that we open a new fourth berth. After the disruption of recent years, shipping lines and cargo owners are looking for capacity, reliability and growth opportunities and DP World will deliver on all three fronts.

“This is the latest step forward in our journey to becoming an end-to-end logistics provider. In November we launched a new intermodal train service connecting our container terminals at London Gateway and Southampton which will enable customers to switch volumes quickly and easily between the two UK locations.

“The DP World-operated round service carries cargo including fresh fruit, beverages and consumer goods in less than five hours,

taking up to 120 lorries a week off the roads. We estimate that the emphasis on rail across both ports takes a total of 300,000 trucks off UK roads each year and we are committed to playing our part in helping the UK meet its Net Zero 2050 policy.”

DP World – which operates ports, terminals and logistics businesses on six continents – runs the UK’s most advanced logistics hubs at London Gateway and Southampton: two deep water ports with access to freight rail terminals, and a rapidly expanding logistics park on the doorstep of the capital. Be-

tween them they moved a record volume of cargo in the first half of last year, with a combined total of 1.93m TEU.

DP World has now started construction at London Gateway’s new £350 million fourth berth, which will lift capacity by a third when it opens in 2024. The construction project is supporting 1000 jobs and the port-centric logistics park will employ a further 12,000 people when it is completed in four years’ time.

The company has also earmarked a further £1 billion of investment in the UK over the next 10 years

ALL-TIME REVENUE HIGH FOR GETLINK

THE "accelerated transformation" toward "operational excellence" of Eurotunnel, ElecLink and Europorte in their markets are bearing fruit

Consolidated Group revenue totalled €1.606 billion in 2022, an increase of 107% at a constant exchange rate compared to 2021, a new all-time high since the group’s creation

Eurotunnel: revenue up 63% to €1.049 billion, driven by the strong growth in passenger shuttle traffic and also Eurostar traffic which is five times the 2021 traffic.

Europorte: solid operational performance, with revenue up 5% to €137 million. ElecLink: €420 million in revenue generated since 25 May 2022.

Yann Leriche, Group CEO, said: “2022 has been a remarkable year for Getlink.

"The success of our customer-focused strategy and the successful commissioning of our ElecLink

interconnector between France and Great Britain are enabling us to accelerate our growth.

"All the group’s entities, supported by the commitment of our teams, have delivered a record performance in the service of low-carbon transport.”

Le Shuttle Freight:

Nearly 1.45 million trucks crossed the Channel on Le Shuttle Freight in 2022, confirming its status as market leader with 42.2% of the market in 2022 Success of the First offer with a targeted sample of freight customers

Le Shuttle Freight transported nearly 1.45 million trucks in 2022, confirming its place as market leader with 42.2% of the available market during the year.

NS Thoroughbred Bulk Transfer facility Tops commtrex Top 10 Transloading list

OUT of more than 1700 locations, Norfolk Southern’s Thoroughbred Bulk Transfer (TBT) terminal in Elizabeth, New Jersey was recently named no. 1 on Commtrex’s Top 10 Transloading list.

With over 3000 active members, Commtrex does business with all Class I railroads, and the annual ranking is based on positive user engagement.

NS’ TBT terminals are specialised facilities that allow customers to transfer a large array of commodi-

ties between rail cars and trucks.

The Elizabeth, NJ TBT is located close to Interstate I-95, ideally positioned to service the New York City and New Jersey markets. It possesses 167 rail car spots and receives daily switching from NS’ Croxton Yard. The terminal currently handles various commodities including lumber, dry and liquid chemicals and boasts a 10+ acre laydown area and a 15,000 sq ft warehouse with three rail dock doors.

Delivery of additional 36 brand-new Shimmns wagons to Mercitalia

THE second tranche of Ermewa brand-new 90-ton Shimmns railcars built by INVEHO left Orval workshop in France and arrived in Italy a few days later, for customer Mercitalia Logistics. No less than 136 Shimmns have been delivered.

" We are a key actor in Italy for more than 30 years

now and Italian freight railways is one of our major customers for many years. Mercitalia operates national and international transports, using our LPG and Shimmns wagons. Ermewa and Mercitalia work closely together to grow rail freight market share, the most eco-friendly type of transport," says the company

Engineering Tragedy: The Ashtabula Train Disaster

THE Ashtabula train disaster and bridge collapse was the worst train disaster of the 19th century, claiming the lives of 97 people, has made it to the small screen.

The engineering and structural failures that caused the collapse of a bridge that stood for over a decade, also took down the most luxurious train of the day, “The Pacific Express #5.”

The accident happened Ashtabula, Ohio on December 29 1876. during a raging blizzard sending the train crashing 70-feet (21-m) into a river gorge and costing the lives of 97 people. The disaster shocked United States, yet it’s a story that’s been lost in the pages of history.

This disaster became a rallying cry for regulation and change between big business, the public and the US federal government.

In a strange twist of fate, the disaster also became the backdrop to the still unsolved murder of Charles Collins, the railroad’s chief engineer and the suicide of millionaire Amasa Stone, the railroad president and designer and builder of the bridge.

The PBS documentary covers the engineering, construction, and collapse of the Ashtabula Bridge; the treacherous conditions that hampered the rescue attempts of trapped passengers; the heroes surrounding this event, including America’s first African-American telegraph operator; and the ensuing investigations that prompted new national safety standards for the railroads.

After this disaster public outcry forced individual states to pass new bridge building standards and inspection laws that apply even today.

TRINITYRAIL pioneered rapid discharge technology. The latest in a long line of rapid discharge cars is the RDL-A, its longitudinal-discharge car for aggregates, sand and similar products. Tough cars for tough products, says the Texas-based manufacturer.

FREIGHTLINER AND ONE LAUNCH

ON January 17, a new Freightliner service made its first journey travelling from Southampton to Crewe. For this journey, ONE purchased GD+ fuel to cover 100% of the fuel volume required.

The train then continued its journey to Freightliner Coatbridge terminal, Scotland, using an electric locomotive, making this one of the greenest rail freight routes in UK rail.

This innovative service is the first of its kind in the UK and demonstrates an ambitious environmental commitment by Freightliner, ONE and their customers.

GD+ is a type of Hydrotreated Vegetable Oil (HVO) and can be used as a diesel replacement. This drop-in fuel is made entirely from waste and

residue oils and is defined as renewable, environmentally friendly, biodegradable, and sustainable. Its supply chain is traceable and independently verified, a prerequisite for both organisations.

GD+ generates significantly lower CO2e emissions compared to diesel. Apart from the significant CO2e savings, particulate matter, nitrogen oxides (NOx), and methane (CH4) are also reduced.

The train’s CO2e emission savings during its 700 km (435 mile) journey are approximately 80%, with 70% of emissions avoided utilising electricity and 92% reduced by running on GD+ when compared to diesel.

With only 38% of the UK’s rail network elec-

RAIL SERVICE USING GD+ FUEL

trified, adopting alternative fuels could be a quick and effective transition to drastically reduce the country’s emissions.

“This is an exciting and significant step forward in delivering impactful environmental benefits for the UK rail freight industry, and we are delighted to be partnering with ONE to make this happen,” said Andrew Daly, Chief Commercial Officer for Freightliner.

Evidence of our commitment

“We are leading the UK rail freight industry when it comes to delivering decarbonisation benefits, and this initiative is further evidence of our

commitment to a greener future for UK rail freight through committed customer partnerships. We will continue to invest and lead the way in this critical area of decarbonisation.”

Simon Parsons, Director of the Ocean Network Express UK Agency, comments: “As a global carrier, we aim to be the link between customer and supplier to accelerate the transition towards a fully green supply chain. Our long-term relationship with Freightliner has enabled us to align our green ambitions and act swiftly to support the logistical needs of our customers between Scotland and Southampton. We are very hopeful to further expand our green network throughout the UK moving forward.”

NEXRAIL BUYS ANOTHER 50 MODERN DE 18 LOCOMOTIVES

THE NEXRAIL.lease team is further expanding its leasing business in Western Europe with the addition of 50 low-emission DE 18 Stage V locomotives from Vossloh Rolling Stock.

The largest part of this order consists of a batch of 40 locomotives with German homologation, to be delivered in the fourth quarter of 2023. "This puts us in an excellent position to serve the demand of our clients in Germany, particularly at such short notice. These locomotives combine a proven, reliable design with flexible, fuel-efficient and low-emission operation."

The locomotives are prepared for Smart Hybrid and ETCS upgrades in the near future.

The agreement also includes the execution of an option for a further 10 DE 18 Stage V SmartHybrid BFLuxD locomotives.

“The market demand for hybrid locomotives that are ETCS Level 2 prepared is developing quickly,” notes Mark Remie, CCO of Nexrail. “The proven technology of the DE 18 Stage V SmartHybrid is a logical solution for most clients with traction needs on non-electrified lines.”

In 2023, Freight Tracks issues will contain a series of monthly in-depth feature articles on rail freight business topics.

Our writers will look at the subject from different angles to give a 360o oversight. These will be perfect places for advertisements to reach your customers.

editor@freight-tracks.com

January

Rolling stock leasing

February

Intermodal equipment

March

Rail freight software

April

Personnel training

May

Rolling stock design

June

Rolling stock leasing

July

Automotive

August

EU rail freight

September

North American rail freight

October

UK & Ireland rail freight

November

Freight locomotives

December

Prospects for 2024

Rail Baltica joint venture appoints new Chief Programme Management Officer

ON February 1 2023, Thierry Boussillon joined RB Rail AS in the capacity of Chief Programme Management Officer and member of the Management Board.

In his new position, Boussillon will oversee the co-ordination of the three Baltic countries cross border railway project’s master plan, implementation activities and delivery of Rail Baltica global project, and will be responsible for developing and rolling out project management methodology in close cooperation and engagement of the extended Rail Baltica team and national project partners to ensure the delivery of the project on time, within budget and quality.

Boussillon has 30 years of experience working mainly on large railways projects on the clients, PMC, and contractors’ sides. He spent the last 17 years managing the delivery of large railways and hospitality Projects. He has also held positions of Deputy Director General – Director of Operations & CAN (Africa Cup of Nations), in charge of special projects and master plan at Bechtel in Libreville, Gabon, Jubilee Line Upgrade Project Manager in London at Bechtel Ltd, and oth-

er extensive infrastructure projects in and outside Europe. His educational background is in finance, accounting and management.

Children's Hospital is charity partner of 2023 Women's Open

FEBRUARY is Heart Month, and Canadian Pacific (CP) is proud to announce today that BC Children's Hospital Foundation has been chosen as the primary charity partner for the 2023 CP Women's Open, to be held Aug. 21-27, 2023, at the Shaughnessy Golf & Country Club in Vancouver.

"The team at BC Children's Hospital provides expert care, research and support for children with heart conditions, and CP is grateful to have another opportunity to contribute to the critical work they do," said Keith Creel, CP President and CEO.

"The 2023 CPWO marks the third time BC Children's Hospital Foundation has been selected as the charity partner during CP's title sponsorship of this exceptional LPGA Tour event, helping raise more than $4 million so far. We're honoured to continue building this legacy."

This year's goal is to raise more than $2.5 million for BC Children's Hospital. Those funds will be dedicated to enhancing the physical spaces of the Heart Centre to create a comfortable and healing environment for patients and their families. Funds will also help to create improved workspaces for cross-functional collaboration amongst the dedicated and talented cardiac team at BC Children's.

"Kids with heart conditions can be some of the sickest children in BC, and the Heart Centre at BC Children's Hospital is there to provide care for every one of them," said Malcolm Berry, President and CEO of BC Children's Hospital Foundation. "That's why we're so grateful to once again be

the CP Has Heart charity of choice. CP's support helps elevate the incredible care BC Children's is able to provide to kids and their families across the province."

In recognition of Heart Month, CP and BC Children's Hospital Foundation are pleased to hold a month-long fundraising campaign with CP matching all donations up to a total of $300,000. Visit https://www.bcchf.ca to help make a difference for BC Children's Hospital Foundation cardiology patients.

"Families of children with heart conditions put their trust in us," said Dr Shubhayan Sanatani, Head, Division of Cardiology. "In turn, we help to carry the burden of their child's health with them. That's the essence of what our team does at the Heart Centre at BC Children's Hospital, and CP has been a part of our team for many years. With CP's steadfast support, we can continue to improve the healing environment for our patients and their families."

The Tournament Partners of the LPGA awarded the CP Women's Open with Tournament of the Year in 2022. Golf Canada and Canadian Pacific also received Gold Driver Awards for Best Sponsor Activation in 2019 and 2022 as well as Best Community and Charity Engagement in 2017, 2019 and 2022.

"We are so proud to witness the incredible impact of CP Has Heart on the lives of countless youth in the host communities of the CP Women's Open," said Laurence Applebaum, CEO of Golf Canada.

Pictured (Left to Right): Jayme Edwards, BC Children’s Hospital; Heather Woods, CP; Vince Lambert, CP; Dr. Shu Sanatani, BC Children’s Hospital; Malcolm Berry, BC Children’s Hospital Foundation; Trish Page, BC Children’s Hospital; Megan Bolton, BC Children’s Hospital (CNW Group/CP)

Safety knows no time

Reiner Kapeller, Rail Cargo Group

PATRIZIA Walch starts work at 6 pm. Her shift lasts until 6:00 a.m., then she changes shifts. The trained mechanical engineer is a wagon technician in Innsbruck and thus responsible for the technical inspection of our vehicles.

"During a taster day it was quickly clear to me that this is exactly my job. I have never regretted this decision!" After the intensive training of seven months, Patrizia initially worked in the freight wagon area in Wörgl. "But I was looking for more variety. That's where the vacancy in Innsbruck came in handy."

Making decisions - bearing the consequences

Here, many passenger coaches are inspected and the proper loading and securing of the vehicles on the motorail trains also falls under her responsibility.

"At the beginning, that was already a big change. Because the decisions I make often have a direct impact on our passengers: Do we need a new locomotive and will this cause a delayed departure? What solutions are there for passengers if a wagon has to be separated from the train?" Clearly, however, safety always

comes first in the inspections. "Of course I don't park a wagon lightly, but I bear the responsibility for safe transport. I can't compromise on that."

WOMEN ON THE RAILWAY TO BE BROUGHT TO BOOK

DriverKaren Harrison broke the mould in the 1970s by becoming the first won in Britain to qualify as a mainline driver – despite much initial resistance from pockets of the industry. This first step paved the way for many other women to follow in Karen's footsteps – not only in driving, but in many other operational roles on the railway. Prior to this, most women who applied for jobs on the railway were destined to drive nothing more than a desk or work as carriage cleaners.

Jonathan Webb of Chime Whistle Publishing is hoping to crowd fund a book that celebrates women on the railway in the 21st century. Jonathan explained “Like many socially important books, they would never work in a commercial sense – yet it's important that they get published and act as a record of achievement.”

Printing and paper costs have skyrocketed in the last two years, so the only way the book will become reality is by the railway family across the world getting together and sponsoring it. Jonathan explains: “Ideally, I need corporate sponsorship if this groundbreaking book is to be published. Any rail organisation offering sponsorship will get a chapter dedicated to the women in its company – allowing it to showcase its workforce. There is tremendous support at grassroots level from women rail staff on the ground and a number of rail companies have shown an interest in the project.”

As a wagon technician, Patrizia is out and about in all weathers, walking between 10,000 and 12,000 steps per shift. "In between, there is always time to warm up if the weather is not so good. And besides, we have protective equipment that is topnotch. I wouldn't want to swap an office job for that," laughs the wagon technician. www.freight-tracks.com

Details of the book and how sponsors can help can be found on the Chime Whistle website at www.chimewhistle.co.uk

Photos: ÖBB / Macho

CP REPORTS NEW RECORD JANUARY FOR CANADIAN GRAIN TRANSPORT

CANADIAN Pacific (CP) moved 2.29 million tonnes of Canadian grain and grain products in January 2023, setting a new record for the month. CP has moved more than 15 million tonnes of Canadian grain and grain products thus far in the 2022-2023 crop year, exceeding the amount shipped by this time in the 2021-2022 crop year by more than 45%.

"CP's grain performance through January demonstrates the strength of our customers' supply chains, and the strong resiliency of our railway operations and effective winter planning, allowing CP to deliver for our customers," said Joan Hardy, CP Vice-President Sales and Marketing, Grain and Fertilisers. "CP, our customers and other supply chain participants were able to ship nearly double the volume of grain and grain products compared to January 2022, despite slowed grain vessel loading because of rain in Vancouver, holiday closures and periods of extreme winter operating conditions."

"CP is dedicated to grain; we have invested more than $500 million in new high-capacity hopper cars, and we are working with our customers to boost supply chain capacity," added Hardy.

"We are pleased to see a strong crop for Canadian farmers and the Canadian economy."

CP has called on the government and industry to improve the ability to load grain vessels in the rain at west coast terminals. This problem in Vancouver is causing significant capacity constraints for Canada's export of grain and agricultural products. Persistent rain delays in Vancouver disrupt the efficient, balanced cycling of rail cars from the Port of Vancouver back to the in-country grain elevators on the Prairies, where they are re-loaded with grain and transported back to the West Coast. These delays unavoidably reduce the grain supply chain's velocity and export capacity.

"CP appreciates the attention of both government and industry to this matter, and looks forward to stakeholders finding pragmatic and safe solutions to maximise throughput for Canada's export grain supply chain," said Hardy.

CP voluntarily publishes a weekly Canadian grain and grain product supply chain scorecard. The scorecard outlines CP's performance for the previous grain week and includes detailed information on any internal or external factors affecting grain movement.

Barstow international gateway

TRANSPORTATION has long been part of the story of Barstow, California, located in the southern portion of the state in the Mojave Desert.

The settlement began along the Mormon Corridor as freight wagons and animals followed the course of the Mojave River. When miners arrived following discovery of silver, railroads were constructed, with BNSF predecessor Santa Fe Railway arriving in 1886. It was then called Waterman Junction because steam locomotives were watered here.

The city was not long after named Barstow for Santa Fe President William Barstow Strong. For more than 140 years, BNSF has operated a railyard here, most recently as a classification yard.

Rail isn’t the only piece of Barstow’s narrative. The city is also well connected to freeway systems. At one time it was an important stop on Route 66.

And now, Barstow’s role in transportation is about to get really BIG – as in BNSF’s Barstow International Gateway (BIG), plans for which were announced October1, coinciding with the 75th anniversary of Barstow’s incorporation as a city.

The 4500-acre (1920 ha), $1.5 billion facility will be the first of its type in North America. The new integrated rail facility will be on the west side of Barstow, consisting of a railyard, intermodal facility and warehouses for transloading freight from smaller international containers to larger domestic containers.

BIG will optimise BNSF’s rail and distribution efficiency regionally and across the U.S. supply chain. It will also reduce truck traffic and freeway congestion in the Los Angeles Basin and the Inland Empire. A timetable for the project will depend on permitting studies that are underway now.

“It’s good for communities because in addition to reducing port and highway congestion around the Ports of Los Angeles and Long Beach, the facility will create 20,000 direct and indirect jobs,” Lena Kent, general director, Public Affairs, said. “It is being fully funded by BNSF and will not replace or become an extension of our existing Barstow Yard.”

Expressway

Currently when 40-foot international containers come off ships at the Los Angeles and Long Beach ports, there are two ways they are moved inland. First, they may dwell ondock until there are enough containers to build an 8000-foot-long (2240m) train, and then they travel directly to their destination by way of the Alameda Corridor, the 20-mile (36 km) rail “expressway” that connects the ports with transcontinental mainlines.

Or the containers are moved via truck to nearby warehouses. Here the container contents are unloaded, sorted and reloaded into 53-foot containers. These are either trucked to a railyard in Los Angeles and are transferred onto trains or they are trucked across country.

BIG will allow the direct transfer of containers from ships at the Ports of Los Angeles

gateway is a BIGdeal

and Long Beach to trains headed to BNSF’s mainline up to Barstow, about 130 miles (210 km) away, also via the Alameda Corridor.

Barstow’s location is ideal because it connects Northern and Southern California to Southern Transcon, the most efficient way to deliver goods into the interior US to places like Chicago, Kansas City, Memphis, Tennessee and Alliance, Texas.

Once the loaded containers reach BIG, they will be processed using zero- and near-zero emission cargo-handling equipment, and then staged and built into trains moving east on BNSF's network.

Big – big capacity

“BIG will consolidate many of the handoffs and transitions that add inefficiencies throughout the supply chain by bringing them into one simplified and integrated ecosystem,” Jon Gabriel, vice president, Service Design & Capacity Planning, explained. “This will play a critical role in improving the consistency of our intermodal product and fluidity across our rail network. By moving containers off the ports quicker while improving the efficiency at our existing intermodal hubs, including those in the Midwest and Texas, we’ll improve, simplify and add flexibility to the BNSF intermodal service experience.”

The impact for customers is going to be big – big capacity, big efficiency and big in terms of a more environmentally sustainable solution, Tom Williams, group vice president, Consumer Products, said. “Because BIG is going to have both a switching yard as well as an intermodal facility, the former will allow for more efficient consolidation of import traffic coming from the ports that doesn't need to be unloaded or transloaded for movement into the interior,” he said. “The latter, the intermodal yard, is going to allow short-haul intermodal containers coming in to be loaded into 53-foot containers to go into the domestic intermodal markets. So, it’s going to serve two independent purposes for supply chains that use intermodal.”

And because customers will have more capacity to use intermodal within their supply chains, that impact is going to be good for the environment.

“BIG is a catalyst for a more sustainable freight system,” John Lovenburg, vice president, Environmental & Sustainability, said. “It’s going to enable our customers to move more of their containers and trailers right on trains to the facility rather than going by truck to transload facilities. The net result: fewer emissions and less congestion, which benefits our customers and the communities where we operate.”

Ultimately, BIG will be a big deal for everyone, even if they don’t yet know it.

“This facility is going to create more capacity for the most efficient way to move cargo from the ocean ports in Southern California to inland destinations,” Williams added. “Ultimately, because BIG will be good for cost effectiveness of the supply chain, it is good for the American consumer.”

KEEP THE DATE: Railway industry calendar of events

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

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

Publisher & Editor: James Graham editor@freight-tracks.com

Editorial support: Kim Smith

Designer: Alex Brown freighttracks@gmail.com

Sales Manager: Martin Kingswell

Sales Executive: Peter Dolan

Webmaster: Natasha Antony

Contributors: Neil Madden, Chris Lewis, Stuart Flitton, Jonathan Webb. Will Huskisson

All rights reserved, No part of this magazine may be reproduced or transmitted in any form by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior permission in writing from the copyright owner. Multiple copying of the contents of the magazine without prior written consent is forbidden. Material sent to the editor, whether commissioned or freely submitted, is provided at the contributor’s own risk. Freight Tracks cannot be held responsible for loss of damage however cause. The opinions and views expressed by authors and contributors within Freight Tracks are not necessarily those of the editor or Freight Tracks. We are unable to guarantee the bona ideas of any advertisers.

Copyright: 1435 Media London 2022

Press releases: editor@freight-tracks.com