Freight Tracks issue 41

SHORT LINES: THE LITTLE

RAILROADS THAT CAN PART II

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ALL-AMERICAN SUCCESS

SHORT lines are an all-American success story. Short lines operate 47,500 miles of track in 48 states, or approximately 29% of the national US railroad network, touching in origination or termination one out of every five cars moving on the national railroad system, serving customers who otherwise would be cut off from the national railroad network.

Chuck Baker, President, American Short Line and Railroad Association (ASLRRA) spells out what makes the short line in the United Stated such a success.

He says: “These hundreds of small, primarily family-owned business railroads have taken cast-off, under-maintained and unprofitable lines and turned them in to thriving businesses, keeping small town and rural America connected to the US and international economies. We carry all types of commodities, but the energy, agricultural and manufacturing industries are particularly reliant upon short lines.”

This root of restoring lines disposed of by Class 1s for economic reasons when they were allowed to by Congress, contrasts so clearly with moves elsewhere, especially in Europe, where such un-economic lines are simply closed by railroads and governments.

Following our report in the last issue of freight Tracks, we profile the American Short Line and Railroad Association (ASLRRA), a voice for hundreds of short lines that are primarily small, primarily family-owned business railroads that have taken cast-off, under-maintained and unprofitable lines and turned them into thriving businesses, keeping small town and rural America connected.

SHORT LINE RAILROADS PART II

Very active membership

There are currently 17 full-time staff members of the association. It has staff members who are ex-railroad employees, as well as staff that have previously served in Congress supporting members who serve on key railroad oversight Congressional Committees.

As well, employees have served in the highest levels of regulatory agencies such as the Federal Railroad Administration (FRA). The association is also “blessed with a very active membership, so when railroad operational expertise is required our members are generally ready and willing!” says Baker.

Firts- and last-mile

The US rail network is extremely interconnected. Short lines primarily serve as the first- and last- mile service on shipments. One in every five rail cars moving on the network begins or ends on a short line. Many short lines interchange with more than one Class I railroad. In general, Class Is recognise the importance of short lines in serving customers well, and in providing a significant amount of carload traffic, particularly in the industrial, manufacturing, agricultural, and energy segments.

There are many examples where Class Is and short lines work closely together, including investing in improvements or new service, to secure traffic.

There are of course occasional moments of friction as there would be in any co-dependent business relationship, and the short line focus on growth and customised flexible service can sometimes conflict with the Class I desire to run a standardised simplified high-volume business, but in almost all instances the two private railroads are able to work out a solution.

There are 600 short lines in the US. More than 500 are members of ASLRRA.

Fire power

An outsider might think that the ASLRRA concentrates its fire more on DC than individual states. Is this a reflection that the short line industry is more affected by the federal government actions than individual state actions?

Baker says: “That is right in general. Given the nature of the freight rail network, most safety and operational/economic regulation of the industry takes place at the federal level through the FRA, PHMSA, STB, TSA and others. The ASLRRA largely is focused on that level. There are however plenty of laws, regulations, and programs that affect railroads at the state and local levels too –including state tax credits, state grant programs, utility crossing issues, grade crossing issues, truck size and weight issues, emissions issues, and more. In most instances, state

associations are best positioned to lead on

"Short lines are known for their white glove, laser focused service"

those issues, but the ASLRRA will become involved in certain circumstances.

Intermodal traffic

Research suggests that few short lines, if any, offer or operate intermodal traffic. Does this not mean they cannot be fully 21st railroad operations? Krouse comments: “That is right in general. Most short lines are not involved in intermodal traffic, but there are some exceptions – Florida East Coast, Indiana Rail Road, Pacific Harbor Line, Iowa Interstate to name a few. Most short lines focus on traditional “carload” traffic rather than intermodal, but they’re eager and willing to go

after every ton of freight that needs to move. Short lines are known for their white glove, laser focused service.

There is not a carload that a short line will NOT compete for, often building unique operations to service a customer. Almost all short lines go after transload business, which while different than intermodal is in a sense pursuing a similar idea.

“The railroad industry is experiencing a tight labour pool, similar to many industrial employers in the United States. Many crafts require a significant amount of training, which is another challenge – once you find 4

SHORT LINE RAILROADS PART II

a candidate, that candidate may not be able to begin productive work immediately. Short lines however pay good wages and strive to provide an enjoyable, flexible, family-like work environment and are thus generally able to retain their employees successfully.”

The larger railroads both in the US and abroad are promoting 'modal switch' to rail transport to help carbon reduction. How can ASLRRA members help to promote the greener nature of rail against road trucking?

He says: “ASLRRA members are proud of the positive environmental impact of rail. They are working on a number of initiatives to continue to improve our industry footprint

“Our contributions to providing sustainable, earth-friendly transportation are considerable and growing. The EPA has provided that answer by measuring sources of transportation-related greenhouse gas emissions. Cars and light trucks account for 60%, heavy trucking is 23%, air traffic is nine percent and freight rail is only two percent. The AAR has analysed federal environmental data and found that if 25% of the truck traffic moving at least 750 miles went by rail instead, annual greenhouse gas emissions would fall by approximately 13.1 million tons.

“Short lines are doing their part. In terminals we are addressing light and sound pollution, limiting waste and recycling fuel, ties and steel. Diesel-powered locomotives have

been replaced with energy efficient switching engines or idle reduction equipment which improves air quality in terminal yards, many of which are in urban non-attainment areas. Many of our members are doing groundbreaking work to ensure a more sustainable future for our industry.”

He goes on to describe a few examples of such work.

Knoxville Locomotive Works (KLW) began designing its own line of locomotives in 2008 and has quickly become the preferred near-zero emission single engine locomotive solution, offering low emissions, low fuel consumption, and superior tractive effort performance. Most recently KLW was awarded EPA Tier 4 emissions certifications for its SE Series four and six axle locomotive designs.

In 2011 Anacostia Rail Holdings’ Pacific

SHORT LINE RAILROADS PART II

Harbor Line (PHL) was the first railroad in the country to have a locomotive fleet consisting entirely of Tier 3 or Tier 3+ units from Progress Rail and currently operates Tier 4 locomotives as well. Anacostia’s other affiliates have retrofitted locomotives with Auxiliary Power Units and idle limiting devices which substantially reduce fuel consumption and emissions.

In an excellent example of a public private partnership, Genesee & Wyoming’s California Northern Railroad secured a $3.7 million grant from California’s Bay Area Air Quality Management District to purchase two new Tier 4 low emission locomotives that reduce diesel emissions by 80 percent compared to the two circa-1976 locomotives that were replaced.

Baker continues: "Even in their office spaces, our members are looking for ways to

reduce their carbon footprint, while increasing efficiency. When Paducah & Louisville Railway constructed their new headquarters in 2012, they chose a geothermal energy system, LED lighting with motion sensor detection, and energy efficient windows.

"As an association, we encourage our members to join EPA’s SmartWay program, and are supporting a testing program to evaluate the impact of locomotive emissions on a variety of common configurations in the Short Line industry and fuel types.

"We have a very active Environmental Committee. The purpose of the Committee is to monitor significant developments in federal environmental laws and regulations, provide members with guidance on environmental compliance issues, and advance sustainability initiatives within the industry. The Committee will look for ways to tell our

environmental story and highlight new sustainability initiatives. That effort will include encouraging rail shippers to promote rail’s environmental benefits in corporate reports or environmental pledges. Finally, the Committee will look for public funding sources for short lines to pursue for environmentally beneficial endeavours.

From lobbyist to President

While President of the ASLRRA, Baker is not an ‘ex-railroader’ but spent 15 years before taking the position of President of this association as a lobbyist for the short line industry and as head of a rail contractor and supplier association.

He says: “I am proud to represent such a strong and vibrant short line community that is doing all they can and then some to contribute to the success of our shippers, the growth of our economy, the improvement of our environment, and the safety of our country.

“ASLRRA has a long history, having been formed in 1916 as its first iteration as the “American Short Line Railroad Association”.

Today the Association has more than 1000 members representing railroads and their suppliers. We offer a broad array of services and educational programs for our members, and represent the interests of our members in legislative and regulatory matters,” he concludes.

"Our contributions to providing sustainable, earth-friendly transportation are considerable"

Chuck Baker

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GREENING TRANSPORT PACKAGE MUST BE PRIORITY FOR EUROPEAN PARLIAMENT AND COUNCIL

ON July 11, the European Commission unveiled its long awaiting Greening Transport Package. With less than one year to go before European elections, it is essential that the European Parliament and Council work on this package with a matter of urgency. The adoption of these proposals, in a way that meets the needs of rail freight, will have a major bearing on Europe’s ability to increase rail freight volumes by 50% by 2030 and doubling volumes by 2050 – a goal set out in the European Sustainable and Smart Mobility Strategy -and Europe’s subsequent ability to reduce freight transport emisions.

Firstly, the proposal for a Capacity Regulation is an essential tool in Europe’s mission to grow rail freight volumes. Today, over 50% of rail freight volumes cross at least one border whereas the infrastructure they operate on is nationally focused. Rail freight is therefore largely operating international services on a patchwork of national systems. The European Parliament and Council must adopt an international approach to capacity management which reflects rail freight’s operating model. It is clear a national-centric approach will undermine growth.

Secondly, it is counterproductive to assess the revision of the Weights and Dimensions Directive in isolation from other proposals.

The revision of the Weights and Dimensions Di-

rective must be worked on in conjunction with the revision of the Combined Transport Directive which will be released later this month. Both texts must ensure the interoperability of road and rail freight transportation, as well as fair competition between transport modes.

Finally, the proposal on CountEmmissionsEU is a positive development and has the potential to allow shippers to better take into consideration transport related emissions when planning theirsupply chains. The proposal must be user friendly and also focus on energy efficiency and other externalities such as noise, safety, and land use, rather than solely tailpipe emissions.

ERFA President, Dirk Stahl, stated, “If the European Parliament and Council are serious about growing rail freight and reducing freight transport emissions, we need an ambitious approach on this package. We need to urgently move towards a more international and user-friendly railway system. These proposals have an important role to play."

ERFA Secretary General, Conor Feighan, concluded: “With less than one year to go until European Elections, it is essential we see progress on this file over the coming weeks. This package must also be viewed in conjunction with other important proposals currently under negotiations such as the TEN-T Regulation."

First woman to head Indian Railways

JAYA Varma Sinha took over the charge of new Chairperson and Chief Executive Officer (CEO), Railway Board (Ministry of Railways) on Friday in Rail Bhavan. The Appointments Committee of the Cabinet approved the appointment of Sinha as Chairperson & CEO of Railway Board. She is the first woman to be appointed to this key post in Indian Railways.

Prior to this, Sinha worked as Member (Operations and Business Development), Railway Board. Sinha was responsible for the overall transportation of freight and passenger services on Indian Railways.

Sinha joined the Indian Railway Traffic Service (IRTS) in 1988. In her career of over 35 years in Indian Railways, she has worked on various important posts like Member (Operations & Business Development) Railway Board, Additional Member, Traffic

Transportation, Railway Board. She has worked on diverse verticals spanning operations, commercial, IT and vigilance. She was also the first woman to be appointed as the Principal Chief Operations Manager of South Eastern Railway. She had worked as the Railway Advisor in the High Commission of India in Dhaka, Bangladesh during which the famous Maitri Express from Kolkata to Dhaka was inaugurated.

Sinha is an alumnus of Allahabad University, and has a keen interest in photography.

Hallo Alberto

ALBERTO Nobis will take over as the new Chief Executive Officer of VTG GmbH on October 1 2023. In this new role, he will oversee the management and business development of more than 50 locations in 20 European countries, providing services that span the entire rail-based logistics chain – from wagon leasing and rail logistics to traction supplied by VTG's own rail transport company Retrack, alongside newbuild and maintenance workshops.

Nobis combines decades of leadership experience with an impressive list of achievements in the logistics industry.

He comes to VTG from the DHL Group, where he served the DHL Express division in increasingly complex roles, initially in finance and culminating in the position of global CFO. He later assumed general management positions at the national, regional and global levels. In his most recent position, Nobis served as CEO Europe at DHL Express. On his watch, DHL Express became the European leader in terms of market share, margin, customer satisfaction and employee engagement.

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Children and Megan Khang win at CPKC Women's Open

BIG crowds and memorable performances during the CPKC Women's Open helped Canadian Pacific Kansas City (CPKC) raise nearly US$3.5 million for children's heart health, with $2.9 million to the BC Children's Hospital Foundation and $580,000 to the Royal Inland Hospital (RIH) Foundation.

Megan Khang finished the week with a dramatic playoff win to take home her first LPGA Tour victory and the $350,000 winner's share of the $2.5 million purse, one of the largest for a non-major on the LPGA Tour.

"The CPKC Women's Open returned to Vancouver this week showcasing the best golfers in the world," said Keith Creel, CPKC President and CEO.

"On behalf of the entire CPKC family, I want to congratulate Megan Khang on her win! It was a tremendous week of golf. Together, we raised the biggest amount ever during our sponsorship of this this event, this year all in support of children's heart health in B.C.

"CPKC is honoured to continue making a lasting difference in communities across Canada through CPKC Has Heart, our community investment program supporting heart health initiatives," Creel added. "Over the last decade as title sponsor of the CPKC Women's Open, through CPKC Has Heart we've raised nearly $20 million for children's heart health."

This year's total donation is the result of several fundraising efforts of the CPKC Has Heart campaign. Through CPKC Birdies for Heart, CPKC contributed for each birdie made by Shaugh-

nessy Golf and Country Club members prior to the tournament and $5,000 for each birdie made by LPGA players on the 16th hole during championship tournament play at Shaughnessy. CPKC also matched donations made during a BC Children's Hospital Foundation campaign online in February, which is heart month.

"One in every 100 children in BC is born with a heart defect, and BC Children's Hospital's Heart Centre is there for them," said Malcolm Berry, President

and CEO of BC Children's Hospital Foundation.

Royal Inland Hospital Foundation in Kamloops was the 2023 CPKC Women's Open community partner.

"The Royal Inland Hospital Foundation is beyond grateful to partner with CPKC for another successful year raising funds for cardiac care," said RIH Foundation CEO Heidi Coleman. "Located in Kamloops, B.C., Royal Inland Hospital is the only tertiary acute care hospital in the Thompson Cariboo Shuswap region, serving a catchment of over 225,000 British Columbians. As our community grows it is imperative that we continue to develop our cardiac program so that when patients require timely access to care they can feel reassured knowing that this type of specialized care is close to home. Through CPKC's Community Partnership and matching initiatives, we have raised an incredible total of $580,000 greatly benefitting cardiac care. We can't thank you enough.

"What CPKC has done to leave a meaningful legacy in the host communities of the CPKC Women's Open has been exceptional," said Golf Canada CEO Laurence Applebaum. "We are so proud of the impact of CKPC on heart health and are thrilled that the British Columbia community will once again benefit from the incredible generosity of our partners through the 2023 CPKC Women's Open."

ON THIS DAY: RAILFREIGHT HISTORY

SEPTEMBER 5

1876 THE first through train from San Francisco, California, arrives in Los Angeles, California, after traveling over the Southern Pacific Railroad’s newly completed Tehachapi Loop.

1941 THE first 4-8-8-4 Big Boy steam locomotive is delivered from Alco to the Union Pacific Railroad at Omaha.

2017 GENESEE & Wyoming Inc. and SEACOR Holdings Inc. form a 50/50 joint venture to own and operate CG Railway, LLC (CGR), a subsidiary of SEACOR acquired through its acquisition of International Shipholding Corporation.

SEPTEMBER 6

1970 LIVERPOOL Waterloo Goods depot closes completely after 112 years of operation by which time all goods traffic had ceased.

SEPTEMBER 9

1963 BRITISH RAIL Southern Region starts a new fast freight service at 18:05 from Chatham to the North-west. Goods taken into Chatham before 16:30 on each weekday are received in Liverpool, Manchester and Warrington by 06:00 the following day. The new service is designed to speed fruit from Kent to northern markets and accelerate the transit of exports to the main Atlantic ports.

SEPTEMBER 10

1910 TRAIN ferry Pere Marquette 18 is bound for Milwaukee, Wisconsin, from Ludington, Michigan, with a load of 29 railroad freight cars and 62 persons. Near midnight, the vessel began to take

on massive amounts of water. The captain dumps nine railroad cars into Lake Michigan, but this was no use. The Pere Marquette 17, travelling nearby, picked up the distress call and speeds to assist the foundering vessel. Soon after she arrived and she could come alongside, the Pere Marquette 18 sank in relatively calm waters with the loss of 28 lives; there were 33 survivors. The ferry sank about 20 miles (32km) off Sheboygan, Wisconsin. No cause for the disaster has ever been determined. The Ship’s Master, Capt. Peter Kilty, and all of the officers, went down with the ship, along with 17 crewmen, two passengers and two stowaways.

SEPTEMBER 19

2006 FRIEGHT OPERATOR Stobart Rail commences a daily train on behalf of Tesco. The train runs from the Stobart depot at Daventry International Railfreight Terminal (DIRFT) in Rugby to the Grangemouth Rail terminal in Scotland. The train then returns to Rugby, 90% filled by Tesco and 10% filled by Coca-Cola. Hauled by Class 66 locomotives supplied and manned by Direct Rail Services, the train consists of 26 specially designed new 45 feet (14m) curtain-sided shipping containers, which at 8 feet 6 inches (2.6m) in height are within the UK loading gauge. Stobart has bought 90 of these new containers in order to provide this service. The train travels at an average speed of 40 mph (64 km/h), which is comparable with a lorry.

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