Freight Tracks issue #7

FREIGHT TRACKS

MAY 9 2022

#7

On the waterfront

$200M BOOST FOR WA RAIL

Help for Ukraine rail heroes

100 NOT OUT FOR MALCOLM future perfect? RAIL FREIGHT IN 2032

CONTENTS MAY 9 2022

#7 NEWS

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headline news Class 99 bi-mode Co-Co to the UK Green light to Cherbourg-Bayonne rail link 20 years of operations out of Felixstowe

News Review Charlotte Western Railroad starts DRS charity open day returns Lithuanian Railways to scrap 2000 jobs

Op-Ed: On railroad service

REGULARS Scale Steel Rail Freight 33 Small Do you take milk? of the Line: 34 End Do you say Railway, Railroad or Rail Road?

Cover photo: The Malcolm Group unveiled their newly liveried Class 90 locomotive on Tuesday April 19 2022 at Peter D. Stirling Limited’s Mossend Railhead in Bellshill, Scotland.

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

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Webmaster: Natasha Antony Contributors: Neil Madden, Chris Lewis, Stuart Flitton, Johnathan Webb. Will Huskisson

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Press releases: editor@freight-tracks.com www.freight-tracks.com May 9 2022 n 3

headline news

Support FOR Ukra

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he Ukrainian rail system is the lifeline

for refugees, medicine, food and other humanitarian aid. Already more than 80 rail workers have died keeping the rail-

road running.

After all, only last week it was reported how Rus-

sia is intensifying its attacks on railways, taking aim at Ukraine’s connection to the outside world.

This is why Brussels-based AllRail is now offering the chance to directly support the railway heroes.

They are working together with the global charitable organisation United Way (unitedway.org), its German branch PHINEO (phineo.org/en) and its Ukraine programme WE-AID to provide targeted help to the Ukrainian rail sector.

The proceeds will be contributed to personnel: First Aid kits, protective gear, food sets, water bottles and other financial aid as well as the continuation of operations in order to help war refugees.

You can donate in Euros, UK Pounds and US Dollars by clicking on this link: https://www.we-aid. org/en-allrail.html Once you are on the donation page, choose “PayPal” in order to donate with any credit or debit card too, as well as a PayPal account.

Choose “Donation Receipt” if necessary in order to receive a document for tax purposes.

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aine’s Rail Heroes

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headline news

New liveried loco launched

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he Malcolm Group proudly unveiled its newly liveried Class 90 locomotive on Tuesday April 19 2022 at Peter D. Stirling Limited’s Mossend Railhead in Bellshill, Scotland.

The stunning locomotive is adorned in the group’s centenary year livery to continue their 100-year celebrations.

Originating as a family-owned business in the 1920s, the Malcolm Group has become one of the leading providers of logistics, construction and maintenance services in the UK and 2022 sees the group celebrate its centenary.

Malcolm Rail, a division of the Malcolm Group, celebrated 20 years in rail

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ald Malcolm. The success the company has enjoyed since its inception is largely down to the hard work and business savvy of Donald, who inherited the coal-round business from his late father.

With entrepreneurial foresight and prudent investment in vehicles, plant and depots, he is responsible for building the business which we know today.

freight in 202, and now operates daily services 364 days of the year, carrying over 30,000 containers for a wide range of retailers and manufacturers.

The locomotive is dedicated to Don-

May 9 2022 @freighttracks

Centenary year celebrations

Andrew Malcolm, CEO of the Malcolm Group, comments: “I was delighted to continue our centenary year celebrations by launching our new liveried

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to celebrate 100 years train, dedicated to my father, Donald.

“I am equally proud to be looking forward to our next 100 years as I am reflecting on the last 100. This is a year for acknowledging our achievements and looking forward.”

Roger Neary, Chief Commercial Officer at DB Cargo UK said: ‘We are proud to recognise and celebrate the centenary of the Malcolm Group, in particular the newly-liveried class 90 locomotive in honour of Donald Malcolm.

“Our relationship with the Malcolm Group has gone from strength to strength and like Andrew, we look forward to furthering the success of our achievements together’.

Left to Right : Euan Malcolm, Andrew Malcolm (Managing Director) and Ker Malcolm

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headline news

Brittany Ferries gives green light

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rittany Ferries is to start a new rail freight link between Cherbourg and Bayonne. The ferry company first announced the rail project back in February 2020, shortly before the COVID-19 health crisis hit, forcing a reduction in ferry services for nearly two years. But while the project—which Brittany Ferries deems strategic—was delayed, it was never cancelled.

During the pause, Brittany Ferries worked with French rail network operator SNCF Réseau and the Ministry for Ecological Transition to determine the routing for the new service, which will provide daily return journeys between Cherbourg and Mouguerre.

Following a study into the modification of four railway tunnels on the Atlantic corridor route to allow the lowest available wagons to pass through, a framework agreement was signed, allowing the project to enter its concrete development phase.

With support from the state, EU and the regions of Normandie and Nouvelle Aquitaine, Brittany Ferries will open the ‘rail motorway’ linking the port of Cherbourg to the European Freight Centre at Mouguerre, near Bayonne, connecting Spain to the UK and Ireland via the French railway network.

The launch of the new service, initially planned for 2022, is now expected by mid-2024.

Jean-Marc Roué, Brittany Ferries’ President said: “A few days ago I gave the green light, formal-

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ly committing Brittany Ferries to the various partners of the Cherbourg-Mouguerre rail project. As we enter this new phase, with the signing of the framework agreement between Brittany Ferries and SNCF Réseau, we can now secure the train slots for our services for the first five years of operation.

“Thanks to the support of the Ministry of Transport in the governments of Édouard Philippe and Jean Castex, under the presidency of Emmanuel Macron, we are finally able to make these ‘rail motorways’ a reality. During the five-year presidency, the French executive has shown strong and unwavering support for modal shift.

“Shifting freight from road to rail is something that many have talked about. But with this President of the Republic, it’s become a reality, forming part of our recovery plan. I welcome these political decisions which accelerate the future of low-carbon freight transport.”

To meet the needs of hauliers and logistics companies who wish to reduce harmful emissions and greenhouse gases, Brittany Ferries will diversify its freight offer, by offering a combined transport service for unaccompanied trailers along the French Atlantic Coast. The new link will form a natural extension of Brittany Ferries’ existing sea routes linking Cherbourg to Ireland and the UK, cutting the number of lorries transiting France by road by

around 25,000 per year. B ate and sell the new serv a rail operator.

The next steps

Planning for rail moveme network is now underway The next phase will co of two rail freight termina guerre, and the acquisitio ised loading equipment f tem which has been selec Ports de Normandie, i tor, and the Port of Cherb future operator, are also the next phase of the pr organise a preliminary co idents of Cherbourg. The project has received the Normandy Regional Coun ment, and the Communa Cotentin.

Brittany Ferries mean with the Communauté d Basque (CAPB) and the N to carry out public consu company has initiated di in order to acquire land

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t to Cherbourg-Bayonne rail link

Brittany Ferries will opervice, effectively becoming

ents using the French rail y. omprise the construction als in Cherbourg and Mouon of wagons and specialfor the Lohr Railway Syscted for the project. in its capacity as an invesbourg in its capacity as a involved in planning for roject. The first step is to onsultation with the rese Normandy part of the e support of Europe, the ncil, the Manche departauté d’agglomération du

nwhile will work closely d’agglomération du Pays Nouvelle-Aquitaine region ultation in Bayonne. The iscussions with the CAPB d for the Mouguerre rail

freight terminal. In addition, a consortium comprising Mouguerre transport operators, the CAPB and Brittany Ferries has been formed to respond to a European Union call for proposals under the Connecting Europe Facility, which aims to develop new multimodal platforms.

Main characteristics of the ‘rail motorway’

n A rail service with sea connections linking Poole, Portsmouth and Rosslare to Cherbourg, allowing seamless transport of unaccompanied trailers from Ireland and UK to the Iberian Peninsula and vice versa. n A 970km rail journey replacing a 920km road journey n A regular year-round service, with one daily return journey, six to seven days per week, operated by two trains: Each train is composed of 21 MODALOHR UIC wagons with double pockets, allowing 42 trailers to be transported. Trailers are rolled on and off using specialised horizontal handling equipment.

Parts of the route are not currently electrified.

Initially the trains will be hauled by diesel locomotives, but in the future these could be replaced by dual-mode locomotives.

From 2024 trains will be routed via Saintes, then from 2026 via the Poitiers-Angoulême-Bordeaux mainline. Journeys have been timetabled to connect with ferry arrival and departure times,

whilst also avoiding periods of peak road traffic in Cherbourg.

Modalohr railway wagons

Founded over 50 years ago, the Alsace-based LOHR group offers its customers transport systems that meet the needs of an increasingly environmentally-aware transport sector.

Modalohr wagons combined with fixed equipment at terminals allow rapid and secure loading and unloading of semitrailers. Since 2003 this French technology has allowed more than two million trucks to be shifted from European roads to railways, cutting carbon dioxide emissions by more than two million tonnes. Each time a semitrailer is transported over 1000km by rail instead of road, negative externalities such as accidents, noise, congestion and emissions are reduced by €800.

François Lhomme, CEO Lohr Group said: “We’ve been eagerly awaiting the launch of this emblematic and ambitious project. It will allow Brittany Ferries to extend its services along the Atlantic Coast using Modalohr wagons to carry trailers.

“We’re proud and happy that Brittany Ferries has selected our Modalohr technology for this project. The project will contribute to the ambition to double rail freight’s modal share by 2030, from 9 to 18 %.”

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headline news

GBRf celebrates 20 years of o

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B Railfreight (GBRf) celebrates its longstanding partnership with the Port of Felixstowe, marking 20 years since GBRf and the port first collaborated on an inaugural Intermodal service to transport goods across the UK for MSC shipping line.

The growth in the partnership and the port itself has been exponential over the past 20 years.

Since the first service, GBRf has gone on to operate

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50 daily services nationwide, of which 14 are for MSC. The port has expanded from 28 to 76 daily trains over the 20 years, with 30 of these belonging to GBRf, resulting in 166 GBRf trains running to and from Felixstowe each week.

With the launch of three new GBRf services out of Felixstowe over the last 12 months, the partnership between GB Railfreight and the Port of Felixstowe has grown year on year.

With the port’s expan customers than ever befo containers in and out o 62,441 containers in the fi – utilising Felixstowe’s re deep sea port in order to efficient services for its cu Railfreight has been serv terminals since 2002, furt

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operations out of Felixstowe

nsion, GBRf serves more ore, transporting 245,240 of the port in 2021, and first quarter of 2022 alone eputation as the largest o deliver better and more ustomers. Additionally, GB vicing seven of the inland ther bolstering the port’s

Left to right: John Smith (GBRf CEO), Clemence Cheng (CEO Port of Felixstowe), and Dan Everitt ( MSC UK, MD) the number of staff and services to meet customer demand.

The effectiveness of the relationship has been particularly on show over the past two years. GBRf is proud of the part it played in working with the Port of Felixstowe to keep the UK’s economy moving during the pandemic and supplying vital PPE at the height of the first lockdown in 2020. More recently, from the HGV driver shortages, Brexit impacts and the pressure of Christmas supply chains, the collaboration ensured goods kept on flowing to consumers and businesses without any significant disruption.

ability to fortify the UK’s supply chains and help grow the economy.

In the years ahead Felixstowe is expected to expand further, creating 90 daily rail freight services from the port. GBRf has already launched three new services – iPort, Tinsley and Birch Coppice – in the past 12 months. GBRf currently employs c.100 members of staff at the port, from which they run a seven-day-a-week service and intend to increase

More services John Smith, CEO of GB Railfreight, said: “Without our 20-year partnership we would not have been able to support the UK economy in the way that we did. Felixstowe has been crucial to the success of GBRf and the wider rail freight sector, enabling us to deliver more services, in a more efficient way, to customers. In the next 20 years our partnership will be multi-faceted, as we work together to make the UK’s supply chains even more resilient, efficient, and importantly, sustainable too.”

Clemence Cheng, CEO, Port of Felixstowe, said: “GB Railfreight are a key partner helping to ensure that we are able to offer shippers a range of frequent, efficient and sustainable distribution options from the Port of Felixstowe.

“We have worked closely with them as their operation has grown over the last 20 years and look forward to continuing the relationship long into the future.”

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headline news

Stadler introduces the Class

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tadler, Beacon Rail and GB Railfreight (GBRF) have signed an agreement for the supply of 30 Class 99 bi-mode CoCo locomotives including spare parts. Following the success of the EURODUAL 6-axle locomotives in continental Europe, with about 100 units sold, Stadler is introducing this concept to the UK. Like its sister, the Class 99 is a versatile CoCo locomotive, adapted to the British gauge and specifications, combining 25 kV AC electric and diesel operating modes.

It represents a new generation of locomotives that offers rail operators many economic and environmental benefits and underscores Stadler’s green credentials. Stadler has signed the first contract with the leasing company, Beacon Rail and GBRF, for the supply of 30 Class 99 locomotives, which includes spare parts.

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Able to reach speeds of up to 120 km/h, the powerful machines can run on 25 kV AC electrified lines with a power of 6,000 kW at wheel. In addition, they feature a high-power low-emissions Stage-V engine allowing them to operate on non-electrified lines. The Class 99 locomotives boast an outstanding tractive effort of up to 500 kN, high hauling capability and performance.

They also offer optimal visibility and an excellent working environment for the drivers, including ergonomic desks.

“Stadler has extensive experience in the UK locomotive market. Over recent years, we have introduced the Class 68 diesel-electric locomotive, the Class 88 bi-mode locomotive and Europe’s first tri-mode locomotive, the Class 93, in line with our commitment to decarbonising rail transport,” said Iñigo Parra,

headline news

s 99 bi-mode Co-Co to the UK

CEO of Stadler Valencia. “We are very proud to go one-step further with the development of the Class 99, a versatile, high-performance locomotive that will provide environmentally-friendly and cost-effective rail transport services,, supporting modal shift to rail”, he added.

Long-standing customer

Beacon CEO, Adam Cunliffe said: “Beacon is proud to introduce the Class 99 to the market; this is the result of a collaborative approach with our long-standing customer GB Railfreight and manufacturer Stadler. The Class 99 order underlines Beacon’s drive to support the UK’s journey towards a greener and more

efficient rail network. We look forward to supporting the delivery programme for these locomotives ahead of introduction to service in 2025, providing further momentum to facilitate modal shift from road to rail.”

John Smith, CEO GB Railfreight, said: “Today’s announcement is an important milestone for GB Railfreight and the UK, and I want to thank the teams at Stadler and Beacon Rail for their collaboration in producing a train fit for a greener future. Rail freight is already a more sustainable alternative to moving goods by road, but the Class 99 will increase our industry’s levels of sustainability and propel us further towards meeting the UK government’s task to decarbonise the rail industry by 2040 in support of the UK’s net zero ambitions.”

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headline news

$200M BOOST FOR WESTERN AUSTRALIA’S REGIONAL RAIL FREIGHT NETWORK

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estern Australia’s key agricultural areas will receive a funding boost for freight infrastructure, following a joint Commonwealth and State funding commitment of $200 million for the first package of the Agricultural Supply Chain Improvement (ASCI) programme.

On the back of a record 24 million tonne harvest, worth around $8 billion to WA’s economy, the McGowan Government is committed to ensuring freight infrastructure keeps up with growing demand.

The four projects funded under the first ASCI package will help WA grain growers and other primary producers transport their product to markets - in Australia and around the world.

The projects to be funded have been determined in close consultation with CBH, rail network manager Arc Infrastructure, grower groups and local government.

The $200 million package will go towards the following four project areas. This government funding will

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leverage millions in private sector investment for the region: n $22 million for four rail siding extensions for CBH grain bins at Moora, Brookton, Cranbrook, and Broomehill complementing significant CBH investment in rail loading facilities. These works are now underway; n $46 million for seven additional grain rail siding upgrades at Avon, Kellerberrin, Dowerin, Konnongorring, Ballidu, Mingenew, and Perenjori North, which will help CBH load longer trains much more quickly; n $60 million for Midland Line Main Line upgrading from 16 Tonne Axle Loading (TAL) to 19 TAL between Carnamah and Mingenew, allowing heavier trains and a 20% increase in train loads. With around 400,000 tonnes of grain per year being carried on this section, the upgrade will provide operational improvements and freight cost savings for all grain growers delivering to bins on selected line sections; and

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$72 million for the Southern Wheatbelt region towards the progressive recommissioning of the Narrogin-Kulin rail line and associated works to service grain and other potential customers in the Narrogin-Wickepin area via a Tier 3 line.

The Narrogin-Kulin line was closed in 2013.

The first stage of this project will be a study to assess the most useful way to make this investment for the benefit of all potential freight users and the community.

The siding upgrades are to be complemented by at least $200 million of investment in rapid loading bins and elevators

by CBH. For CBH and the grain growing industry, these works will further assist the effort to move grain rapidly to port after harvest, to capitalise on strong international demand and high prices.

Loading longer trains more quickly at the strategically located CBH bins will bring tangible financial returns to growers in the region.

The $72 million Southern Wheatbelt project will increase the amount of grain moved by rail and decrease the number of trucks on regional roads.

Equally important, it will provide the capacity for other primary producers, for example hay exporters, to use a rail service.

The new WA Kaolin clay mine, near Wickepin, will also benefit from a potential rail freight service, as its export production ramps up in coming years.

Securing this funding means the planning and design phase can now commence, with completion of the projects expected in 2025.

The State and Commonwealth have already partnered to deliver $187.5 million in funding for the Wheatbelt Secondary Freight Network program.

A further $36 million in joint funding will commence the Mid-West and Great Southern Secondary Freight Network programs to further improve export connections throughout the agricultural regions.

A record spend

future perfect?

RAIL FREIGHT IN 2032

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o mark our 10th issue, we are asking: What will rail freight lok like in a decade’s time? What will be different, what will be the same?

In our 10th issue, June 20 2022, we will look at what rail freight might look line on June 2032.

We will be in the third century of freight railway operation in a decade. Will this be a chance to move forward into a world of AI, driverless locos, cutting-edge handling techniques?

We will talk with C-Suite executives, railway managers, intermodal executives, shippers, short-line and freight railways.

If you would like to be involved in this special issue, contact:

editor@freight-tracks.com

Transport Minister Rita Saffioti said: “The McGowan Government is committed to improving regional freight infrastructure.

“We are already spending a record amount on regional roads and we are now able to prioritise further investment on the regional freight rail network.

“This $200 million will ensure our regional freight network continues to keep up with demand now and into the future.

“The recent record harvest of 24 million tonnes shows that we need to continue to invest in road and rail to provide an increasingly efficient transport network.

“The ASCI rail project funding, closely aligned with CBH’s train loading investments, will deliver freight cost savings and grain price benefits each year to grain growers throughout the

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headline news

Charlotte Western Railroad commences operations in a growing metro area

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harlotte Western Railroad (CER), a wholly-owned subsidiary of Jaguar Transport Holdings (Jaguar), began rail operations on May 2 2022. It acquired leasehold rights to approximately 13 miles (21 km) of track owned by the North Carolina Department of Transportation (NCDOT).

“We are excited for the opportunity to establish our first operation in North Carolina and the southeastern US,” said Stu Towner, CEO of Jaguar.

“The railroad’s location, in a growing metro with access to both Norfolk Southern and CSX, along with the acquisition of a rail served warehouse, provides us with an excellent opportunity to serve current and future customers and earn the right to grow alongside them and the local community.

We will immediately move forward with a large project in partnership with NCDOT to build a new multi-commodity and multi-mode transload facility on our warehouse property which will create highly efficient solutions for the customers we are bringing to the property.

“This project, along with our focused commercial efforts to build sites along the railroad that are ready for new customers, makes this a fantastic solution for customers in the Charlotte market.”

Charlotte Western is the eighth shortline railroad for Jaguar, who has partnered with OPTrust, one of Canada’s largest pension plans.

Jaguar is a transportation and logistics company headquartered in Joplin, MO. Since 2018, Jaguar has focused on safety, team culture, service to customers, and innovation

to help drive its growth. Jaguar operates eight short line railroads and multiple other rail served sites across the United States. OpTrust invests and manages one of Canada’s largest pension funds and has significant experience investing in the surface transportation and logistics space, Other Jaguar railroads include Missouri Eastern Railroad, Cimarron Valley Railroad, Southwestern Railroad, Washington Eastern Railroad, Oregon Eastern Railroad, Texas Eastern Railroad, and West Memphis Base Railroad.

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news review

The train comes directly to the customer AUSTRIA Rail Cargo Group’s MOBILER system is as simple as it is ingenious: thanks to the special container sliding system, MOBILER containers can be handled quickly and easily between trucks and railway wagons almost anywhere – by a single person, without any outside help and without complex terminal equipment. One station with loading track and loading road is sufficient.

The technology works thanks to the interaction between the MOBILER container, the MOBILER truck and the Sggmrrss-y wagon. This means that even companies that do not have their own rail connection can benefit from the cost, traffic and environmental advantages of combined transport by rail.

The bogie flat wagon offers the carriage of containers with a total cargo length exceeding 60 ft, at speeds up to 120km/h.

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UP marks safe chemical transport with 2021 Pinnacle Award

UNITED STATES Union Pacific Railroad has announced that 70 companies have won the 2021 Pinnacle Award for dedication and commitment to safely transporting chemicals by rail. The annual award honors customers who implement release prevention protocols, corrective action plans and have zero non-accident releases (NARs) of regulated hazardous materials shipments.

“Union Pacific is honoured to partner with companies that share our commitment to the safe transportation

of chemicals and, in the process, the protection of the environment.

“This award recognizes the work these companies do every single day to prevent releases and safeguard the communities where we all live and work,” said Jacque Bendon, UP vice president-Industrial, Marketing and Sales.

Union Pacific’s Hazardous Materials Safety team supports customers with joint rail safety training programs and rail car inspections.

2021 Pinnacle Award

Aeropres Corporation El Dorado Chemical Co. Afton Chemical Corporation EnLink Midstream American Synthetic Rubber ExxonMobil Archer Daniels Midland Co. Foremark Performance Chemicals Arkalon Ethanol LLC FutureFuel Chemical Company Arkema Inc. Gibson Energy ASHTA Chemicals Inc. HELM US CORP Berryman Chemical Inc. Howard Energy Partners BP Indorama Ventures Buckeye Pipeline Company INEOS Oxide CALAMCO International Chemical Company Cargill Inc. Irving Oil Limited Chevron Phillips Chemical Itafos Conda LLC CHS Inc. Kemira CITGO Petroleum Corporation Keyera Corp.

Coffeyville Resources Nitrogen Fertilizers Koch Fertilizer LLC Covestro LLC Koch Methanol LLC Cross Oil Refining and Marketing Koppers Inc.

Eco Energy Lotte Chemicals Louisiana LLC Louis Dreyfus Company Grand Junction LLC Sulphuric Acid Trading Company Martin Operating Partnership Targa Resources MGP Ingredients Targray.

Midwest Renewable Energy The Chemours Company NorFalco The Lubrizol Corporation NOVA Chemicals The Plaza Group Olin Corporation TotalEnergies Petrochemicals and OQ CHEMICALS CORPORATION Refining USA Inc. Phoenix Park Energy Marketing TPC Group Ponderosa Petroleum US Amines LTD Reagent Chemical Valero Energy Renewable Energy Group Veolia North America Regeneration and Roehm America LLC Recovery Solutions Sawtooth Caverns West Plains Propane Inc. Solvay Chemicals Wildcat Midstream Limited Partnership Southwest Iowa Renewable Energy Williams Companies Inc. Stepan Company WRR Environmental Services

news review

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news review

READING & NORTHERN PURCHASES LARGE INDUSTRIAL COMPLEX

UNITED STATES Reading & Northern Railroad has acquired the former north campus of the Kovatch Fire truck company,consisting of nine buildings spread over approximately 10 acres (4ha) of property in Nesquehoning Borough, Carbon County.

The Kovatch company was sold six years ago to KME, a part of the REV Group. Last Fall, KME decided to cease operations in Nesquehoning and the property was put up for sale.

The facility sits in the middle of the Reading & Northern 400-mile (540 km) rail system that runs from Reading in the south to Hazleton, Scranton and Mehoopany in the North.

The Kovatch location is alongside the rail line that Reading & Northern purchased in 2021 from Carbon County, a rail line that now connects the Reading & Northern’s Reading and Lehigh Divisions.

The investment in the Kovatch facility is just the latest investment by Reading & Northern in this region. In 2020 Reading & Northern finished the construction of the new Nesquehoning Bridge Phase 2 at a total cost of $14 million.

After it purchased the Carbon County rail line for $4.7 million, Reading & Northern spent over $5 million to upgrade the track. And now Reading & Northern has acquired the Kovatch property in Nesquehoning for $2 million.

“We are investing in our future and the future of the com-

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munities we serve,” said Andy Muller, Jr., founder, and owner/ CEO of Reading & Northern. “Our company is growing by leaps and bounds. In fact, we believe we will be enjoying double digit carload and revenue growth for years to come fueled in large part by the increasing worldwide demand for Pennsylvania anthracite coal. We have always been known as “the Road of Anthracite” and this year the world has decided to purchase its coal from reliable Pennsylvania producers instead of Russia.

We expect our coal business to grow substantially in 2022 and for years to come.”

Among the buildings purchased by Reading & Northern are a number of buildings with heavy cranes systems capable of lifting equipment of varying weights.

“We anticipate locating important parts of our freight and passenger operations in Nesquehoning, which sits in such a perfect location for our railroad and our employees. We now will have the room to grow our equipment maintenance and repair facilities as well as providing much needed storage.

“With over 1600 freight cars and our ever-growing passenger fleet, which now consists of 47 cars, plus over 70 motor vehicles and a number of other equipment for track department and other departments, we were running out of space to keep our equipment well maintained.” said Muller.

news review

CP reports first-quarter results; building momentum in Q2 CANADA In light of the financial complexity of acquiring Kansas City Southern into voting trust on December 14 2021, Canadian Pacific is reporting additional financial metrics, including Core adjusted income and Core adjusted diluted earnings per share (EPS). These metrics have been added to provide more transparency by isolating for the impact of KCS purchase accounting.

KCS purchase accounting represents the amortisation of the difference in value between the consideration paid to acquire KCS and the underlying carrying value of the net assets of KCS immediately prior to the acquisition by the Company.

“I’m proud of the way CP’s team of professional railroaders managed the difficult operating environment they faced in the first quarter of 2022,” said Keith Creel, CP President and CEO. “The quarter reflected the impact of last year’s drought on Canadian grain volumes, harsh winter operating conditions and the effects of a work stoppage.”

Revenues decreased by 6% to $1.84 billion from $1.96 billion last year Added Creel: “With a difficult quarter behind us, we are building momentum, which I fully expect will continue to carry through the remainder of 2022.”

Norfolk Southern reports Q1 results

UNITED STATES Norfolk Southern has reported first-quarter 2022 financial results which included first-quarter records for railway operating revenues, income from railway operations, net income and diluted earnings per share.

First-quarter railway operating revenue was $2.9 billion, income from railway operations was $1.1 billion, net income was $703 million,and diluted earnings per share was $2.93.

Norfolk Southern reported double-digit revenue and EPS growth in the quarter. “Our financial results in the first quarter were solid, despite current network challenges.” said Alan H. Shaw, Norfolk Southern President. “I am confident that our efforts to improve our service through accelerated hiring and refinements to our operating plan will provide a platform for long-term growth and efficiency for both our customers and shareholders.”

Railway operating expenses were $1.8 billion, an increase of 13%, or $206 million, compared with the same period last year due to higher fuel, purchased services, and equipment rents expenses. Income from railway operations was a first-quarter record of $1.1 billion, an increase of 7%, or $70 million, year-over-year. The railway operating ratio was 62.8%.

Cargotec’s interim Q1: Improved profitability despite supply chain challenges

FINLAND Orders received increased by 2% and totalled €1,135 million.

Order book amounted to €3,151 million at the end of the period. Sales increased by 17% and totalled €851 million.

Operating profit was €37 million, representing 4.4% of sales. The operating profit includes items affecting comparability worth €-28 million.

Comparable operating profit increased by 26% and amounted to €65 million, representing 7.7% of sales.

Lithuanian Railways to scrap 2000 jobs amid Russia, Belarus sanctions LITHUANIA Lithuanian Railways (LTG), the country’s state-owned railway company, is beginning to count the cost of the present Ukraine military action. The railway is planning to lay off around 2000 employees by the end of the year as a result of the EU sanctions imposed on Russia and Belarus in the wake of the war in Ukraine.

LTG has set aside some €6 million for redundancy payments.

According to LTG, it is currently implementing a plan to adapt to the changed business environment as a result of the loss of the Russian and Belarusian markets. The plan aims to improve operational efficiency, reduce costs, and diversify and expand into new markets, particularly Western Europe.

Cargo staff face the chop

It is estimated that due to sanctions imposed on Russia and Belarus, LTG Cargo, Lithuanian Railways’ rail freight company, will transport 26.5 million tonnes of cargo this year, a drop of around 50% compared to a year before.

The significant drop in freight volumes will result in a loss of around €150 million in revenue for the LTG Group.

LTG has lost around 11 million tonnes in freight because of EU and US sanctions against Belarus’ potash giant Belaruskali, which will trim its annual revenue by €61 million. Some 1200 of the redundancies will be felt in LTG Cargo.

In March, In response to the Russian government’s war against Ukraine, LTG Cargo stopped the rental of platform railcars. Since March 7 the company’s platform railcars cannot be transported either directly to Russia or Belarus or in transit to countries other than Latvia and Estonia.

www.freight-tracks.com May 9 2022 n 21

HERITAGE FLEET SALE CONTINUES AT DRS

For sale: 37259 and 37607 UNITED KINGDOM The third tranche of Direct Rail Services’ (DRS) heritage stock is now available for sale.

This sale will see four Class 37 and two Class 57 locomotives available to buy through a competitive online bidding process.

The full list is available on the DRS website.

Locomotives 37038, 37059, 37259, 37409, 57003, 57007 are all offered as

part of the sale and an opportunity to view the engines will be made as part of the tendering process.

Bidders will need to register on the website and use the reference CTM 15380 to download the tender documents.

The process will run until 13:00 May 23 2022 and is another chapter in DRS’s push for lower carbon locomotives and ambitious fleet modernisation plans.

UNITED KINGDOM The Direct Rail Services (DRS) is delighted to announce that, after a two-year absence, their charity open day returns.

The open day shows behind the scenes at one of the UK’s leading rail freight operators and is an event for all the family. Visitors will get to look around the company’s maintenance depot at Gresty Bridge, Crewe,sit in the driver’s seat of a variety of locomotives, ask questions to industry experts and muchmore. There will also a naming ceremony for the locomotives and their new nameplates unveiled.

Tickets cost £5 for adults with under 16s free and all proceeds are used to aid UK charities and other deserving community causes. Gates open at 10:00 on Saturday July 16 and close at 16:00.

Chris Connelly, Rail Director and NTS’s Deputy CEO, said: “I’m thrilled that we’re able to host our fantastic open day after a long absence.

“It’s been a tough couple of years throughout the pandemic so it’ll be great to get out and have a celebration of rail.

“Money raised goes to help charities, community projects and good causes across the country and we’re really proud of the support we provide through this fabulous event.”

DRS charity open day returns

news review

Spark Training Solutions joins ASLRRA’s discount programme UNITED STATES The American Short Line and Regional Railroad Association (ASLRRA) announces its newest member discount programme provider, Spark Training Solutions, a railroad software technology provider. Spark Training Solutions serves Class 1 and short line railroads with custom safety, regulatory, and compliance training solutions. Their solutions help railroads and contractors to find the most effective strategies to manage their company, Part 219, and other DOT-regulated drug and alcohol testing programmes.

Spark Solutions offers ASLRRA members an affordable programme and services that allow their Designated Employer Representative (DER) to focus on safety while avoiding unnecessary administrative tasks.

“We welcome Spark Training Solutions to our select group of Member Discount Partners -- they are a proven industry innovator with a solid record of providing exceptional safety and compliance services to short line railroads in support of Part 219 requirements,” said Chuck Baker, ASLRRA President.

“Our members, especially our smallest railroad members, will appreciate the option to participate in random testing pools and consortiums.”

ASLRRA member railroads and their contractors will benefit from the Spark team’s drug and alcohol testing expertise and hands-on support, discount pricing and expanded services, custom-built online tools and an established national network of providers.

“We are dedicated to the success of our short line railroad customers and are delighted to provide a programme that will help simplify drug and alcohol testing,” says Katie Inouye, CEO and founder of Spark Training Solutions.

www.freight-tracks.com May 9 2022 n 23

news review

Logistics companies benefit from simple processes in transport handling

GERMANY Users of Rail-Flow’s Intermodal Capacity Broker can now use JITpay to significantly simplify and accelerate payment flows. The process is noticeably streamlined for customers. In addition to saving time, there is no risk of late or missed payments.

The Intermodal Capacity Broker (ICB) is a neutral platform for operators, forwarders and transport companies. The ICB creates transparency about free capacities on the European market and brings together providers and bookers of intermodal transport. With just a few clicks, intermodal newcomers can also gain access and book transport directly – The ICB: Simply.Intermodal.Book.

By integrating JITpay into the Intermodal Capacity Broker, connected transport companies can assign the claim arising from the order to JITpay. JITpay takes over the dunning and receivables management, as well as the entire default risk and pays the transport partner immediately. Order management works completely digitally via the JITpay portal.

Booking forwarders also benefit from the advantages of

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digitized and automated billing in co-operation with JITpay.

The co-operation is gradually being expanded. In the future, Rail-Flow customers will gain more time with system-supported invoicing so that they can concentrate more on their core business.

Rail-Flow

With more than 60 employees, the Freight-Tech start-up simplifies access to rail freight and intermodal transport and increases its efficiency. The digital ecosystem developed by Rail-Flow offers innovative marketplace, collaboration and transport management solutions along the entire value chain.

This accelerates processes, strengthens the competitiveness of rail and supports the reduction of CO2 emissions by shifting traffic from road to rail. More than 200 rail freight companies, rail freight forwarders, intermodal operators, shippers and trucking companies are already using solutions from the Rail-Flow ecosystem.

Change at the top for Cargotec Jaakko Eskola new Chair of the Board

FINLAND Cargotec Corporation’s Board of Directors elected by the Annual General Meeting has announced the appointment of Jaakko Eskola as the new Company Chair. Eskola will succeed Ilkka Herlin who has chosen to step down as the Chair of the Board having served as Chair for 17 years since 2005. The change will take effect immediately.

Herlin will continue as a member of the board and as the Vice Chair.

Eskola joined Cargotec’s Board in March 2021 after a distinguished career in Wärtsilä and was elected as vice chair of Cargotec’s Board of Directors previously in March 2022.

Next wave of growth

“It has been a privilege to be chair of this unique company. As we move into a new phase of the company I’m pleased to welcome Jaakko as my successor. I have strong confidence in Cargotec’s next wave of growth. Jaakko brings a wealth of industry and leadership experience across a wide range of companies that ideally equip him to help Cargotec navigate the transition into a more sustainable and profitable business that continues to generate substantial value for shareholders and

customers,” says Herlin.

“I’m very humbled and excited to accept the role as Chair of Cargotec, particularly at such an exceptional time for the industry and wider society. I’m honoured to succeed Ilkka and I look forward to working closely with the leadership to continue to ensure that Cargotec makes a positive impact for all stakeholders. I have already participated in the shaping of the refocused strategy that Cargotec has recently communicated and I’m convinced this is the right time to accelerate the transition to an even more profitable and futureproof business,” says Eskola.

Herlin will continue as a member of both the Audit and Risk Committee and Compensation and Nomination committee. Eskola will chair the Compensation and Nomination committee.

As of today, Cargotec’s Board of Directors consists of: Jaakko Eskola, Chair Ilkka Herlin, Vice Chair Teresa Kemppi-Vasama Johanna Lamminen Casimir Lindholm Kaisa Olkkonen Teuvo Salminen Heikki Soljama

news review

CP announces results of director elections

CANADA Canadian Pacific Railway Limited (CP) announces that all resolutions placed in front of shareholders at its 2022 annual and special meeting earlier today have been passed, including the election of all nine nominees listed in the management proxy circular dated March 14 2022 as directors of CP. All directors received at least 94.66 percent of votes cast. The advisory vote on executive compensation (Say on Pay) received 92.52% approval.

The advisory vote on CP’s approach to climate change (Say on Climate) received 86.88% approval.

The stock option plan resolution received 92.28% approval. The appointment of Ernst & Young LLP as auditor received 99.56% approval.

The Hon. John Baird will become the chair of the Board’s Corporate Governance, Nominating and Social Responsibility Committee.

The detailed results of the vote by ballot on the election of directors are as follows: The Hon. John Baird Isabelle Courville Keith E. Creel Jill Denham Edward Hamberger Matthew Paull Jane Peverett Andrea Robertson Gordon Trafton

94.79% 99.74% 98.73% 94.66% 98.67% 97.57% 98.25% 99.30% 99.27%

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news review

First CHINA TO VIETNAM Special Freight Train RUNS

VIETNAM / CHINA On April 18, a ceremony was held at Chengdu (Shuangliu) Air-rail International Intermodal Port for the first cross-border special freight train from Shuangliu, Chengdu to Hanoi, Vietnam.

After setting out from Shuangliu, the train will cross the border at the Pingxiang Railway Port, and travel southwards along the China-Vietnam Railway for 5 to 7 days before arriving at Hanoi, Vietnam.

This train signifies that a new logistics channel for economic and trade has been opened up between Shuangliu, Chengdu, which is an important gateway insouthwest China, and ASEAN. In March this year, Shuangliu opened the first international digital trade train along the China-Laos Railway; in April, a new land-sea channel train was launched, connecting Chengdu (Shuangliu) Air-rail International Intermodal Port with major surrounding cities.

The first cross-border special freight train carries 40 containers fully loaded with around 32-million-yuan worth of aluminum profiles manufactured by a local company based in Shuangliu.

After being packaged at the doorstep of the local company, goods can be directly delivered to clients after the train moves across the border at the Pingxiang Railway Port.

The CFO of the company said: “We used to export goods to Vietnam by automobile transport. This is the first time we use rail transport.” T

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Canadian man caught entering US through train tunnel

UNITED STATES / CANADA US Border Patrol agents assigned to the Detroit Station foiled an attempt by a Canadian man to sneak into the US utilising cross border freight trains.

On May 1, agents from Detroit Station observed an individual riding on top an inbound freight train from Windsor, Canada, to Detroit.

Agents contacted Canadian Pacific Railway and requested that the train be stopped. Once stopped, the agents arrested a 33-year-old subject for illegal entry into the US. At the station, it was determined that the subject was subject to an active criminal bench warrant from London, Ontario Police for “Possession of Weapon Dangerous

May 9 2022 @freighttracks

to Public”.

The subject was processed for expedited removal and immediately turned over to the custody of Canada Border Services Agency.

“It is extremely dangerous to enter the United States illegally, particularly through the train tunnel,” said Chief Patrol Agent Robert Danley. “Our outstanding relationships with our foreign law enforcement and CP partners were key in bringing this situation to a safe and effective law enforcement resolution. I am very proud of how the men and women of the Detroit Sector remain vigilant and focused on border security on two fronts, both on the northern and southern borders.”

Quantifying railroa

Op-Ed: On railroad service

Darell Luther, CEO & Founder, TEALINC

W

e’ve put together a high-level quantification checklist to help you determine the cost of railroad service issues to your company and give you some insights on what you can do about them.

Remember this is only a guidance document and each individual situation varies accordingly. Gathering data and supportable facts is time consuming and tedious but must be done to identify the resulting impact to your situation.

Identification of the problem

Railroad service consistency is an issue that generally surfaces on a seasonal basis. For instance, during grain harvest, times of large importations such as we’re seeing now on container freight, large shifts in demand such as when the west Texas oil companies shifted from white sand from MN and WI to local brown sand in NM and TX. Since Precision Scheduled Railroading there also seem to be a consistent service problem intonation in certain lanes that have been impacted by inconsistent rail operations. While we don’t know the exact impact of these service issues’ we do know they are costly in revenue dollars and productivity losses. And don’t overlook the fact that the service issues may be caused by your operation. In any case you’ll want fact-based data to proceed.

This step for most companies will be generally be easy to identify with general responses such as, “yep we have a rail service problem!” Now to quantify.

Understanding the Problem

In order to understand the problem more intently there

Never miss a rail freight story again.

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ad service issues

Op-Ed: On railroad service

to fix their problems for you either.

They’ll try to get better on service issues it is counter intuitive that they like poor service any better than you do. Remember though the changes they implement are for their improvements and economic gain not yours. The value in either cost savings, execution of existing sales, or lost sales you see or don’t see can be staggering. Loss of cost savings opportunities, loss of focus on materializing each shipment from a profit perspective, and loss of existing sales and or future sales can add up to millions of dollars. Focus on what you can change including your own operations if they facts point that way.

Next Phase – options to engage

is a requirement to measure the service standards and establish a baseline and track progress or regress from this base.

The problem really hurts.

This is where you identify value.

Take the nine items listed above and

THE QUANTIFICATION CHECKLIST IS COMPRISED OF: Identification of the problem Understanding the problem What’s your pain tolerance?

Action! Why now?

Next Phase – options to engage

assign them a value on an aggregate basis, average or better yet since you’ll have the data, on an individual railcar basis.

That will give you the cost of your pain points by individual pain point, for example, a specific lane increase in loaded time results in $500 per load decrease in revenue because of contractual commitments not being met (straight decrease in contract price or as a penalty for out of spec as to time frame delivery requirements) or simply because the market has moved away from your market position during railcar delay.

Action, Why Now?

The railroads aren’t going to fix your problems for you, they aren’t going

Do Something! That’s what my first boss on Burlington Northern would say to me every other time he went by even though I was engrossed in doing something some 10 hours a day. That’s his way of saying just get started and stay with it until its complete.

At this point you have to make some critical decisions. Do you engage a software solution and learn the details as you go or do you engage a company that knows the ropes and can provide the data packaged and ready for action, or do you do nothing? Data is just data until its converted into information.

Depending on your frustration level, desire to obtain better results and to stop the pain while more finitely manage your railcar assets will determine your course of action.

We’ve been down this path a number of times. Tealinc guidance4

www.freight-tracks.com May 9 2022 n 29

Op-Ed: On railroad service

Quantifying railroad service issues is set in a deep understanding of railcar service and rail rate and accessorial rates.

We know where to look and how to decipher the complicated messages sent by rail pricing, operations, service and accessorial price movements. All results are fact based on data so the outcome is actionable.

When should you invest in changing the ending of the story?

Now! The amount of cash (real and unrealised) a company bleeds from inactivity is huge.

What’s your pain tolerance?

The magnitude of service disruption can be categorised in the following segments.

Shipments not getting timely to customers Value of missed commodity shipments Cost of not meeting contractual commitments Accessorial service charges General rising freight costs Ineffective supply chain Storage costs enter the picture Demurrage becomes a real issue The problem is internal to our organisation

Dutch cabinet must put its hand in its pockets for 740m trains

NETHERLANDS Dutch rail group RailGood sent a letter to the Permanent Parliamentary Committee on Infrastructure and Water Management of the Dutch Parliament on April 22 2022, calling on the Dutch cabinet to quickly make more investment budget available to upgrade the Dutch railway network for 740-metre train lengths. The Dutch cabinet should make avail-

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able quickly and (substantially) a greater budget for investments in upgrading the railway infrastructure in the Netherlands in order to to transport more and more efficiently cargo, especially in containers and trailers, by rail, to make better use of the existing railway capacity and to comply with the EU railway infrastructure regulation for 740m train lengths.

4

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Hi CUBE BOXCARS

SMALL SCALE RAIL FREIGHT

DO YOU TAKE MILK?

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

I

f your model layout population like milk in their tea or coffee, then this six-wheeled glass-lined milk tank is what you need.

The model version

The Wales-based model railway manufacturer Dapol has created this O gauge model of the 6-wheel milk tanker which features: finely moulded body shell and chassis; many seprately added fine details; finely applied livery and printed details; profiled wheels and axels with brass bearing pockets; metal sprung buffers; metal sprung coupling hook and metal screw couplings. It has a RRP of £80.

The real milk tank

Milk tank wagons were a common sight on railways in the United Kingdom from the early 1930s to the late 1960s. Introduced to transport raw milk from re-

mote dairy farms to central creameries, milk trains were the last railway-based system before the move to road transport.

Post 1923, of the 282,000,000 imperial gallons (12,800,000 hL; 339,000,000 US gal) of milk transported by rail by all four national railways companies, the Great Western Railway had the largest share of milk traffic, serving the rural and highly agricultural West of England and South Wales; followed by the LMS which collected from Cumbria and North Wales; the Southern particularly from the Somerset and Dorset Railway; and finally the LNER from East Anglia.

Often, the milk was delivered direct from the farmer to the local railway station in milk churns. So to remove the need for moving unprocessed milk from one container to another, and hence potential cross contamination or need to install hygienic washing facilities, the decision was taken to transport the milk churns. From the 1880s, the GWR had

introduced the popular GWR Siphon series of passenger carriage chassis-based high-speed and ventilated enclosed wagons, but with volumes rising and production systems changing, the transport system had to change.

The first designs were introduced by the GWR and the LMS in 1927, followed a year later by the LNER. The SR initially experimented with 2000-imperial-gallon (9100 l; 2400 US gal) roll-on/ roll-off two or three-axled road trailers, which after being towed to each farm by a dairy company or SR lorry, could be taken to the railway station and then strapped down on a standard railway flat wagon.

The initial milk tank wagon designs were based on a 12-foot (3.7 m) two axle railway wagon chassis.

The first tanks were labelled externally as being glass-lined (they were actually vitreous enamel), meaning that the wagons themselves were unauthorised for loose or hump shunting.

www.freight-tracks.com May 9 2022 n 33

Yard

Limit Rail freight off-duty

I say ‘Railway’, you say ‘Railroad’ (or is it Rail Road?)

R

ail terminology is a form of technical terminology. The difference between the American term railroad and the international term railway (used by the International Union of Railways and English-speaking countries outside the United States) is the most significant difference in rail terminology.

Then there are railway line, railroad line, rail line or train line.

Many American railway companies used the word ‘railway’ when they were founded back in the 19th century but later on there was a trend toward the use of ‘railroad’.

Just to confuse the friendly rivalry between the terms railway and railroad, It might be noted that the oldest passenger rail company still extant in the US (and possibly the world) is still operating under its original name: the Long Island Rail Road, chartered in 1834.

It’s partly geography, partly technology, partly era.

Railroading means two things

Curiously, in the United States ‘railroading’ denotes a job or a career while ‘railwaying’ is not a word. Railroading does actually a secondary, somewhat dark meaning: “informal to force (a person) into (an action) with haste or by unfair means.”

In a list of the top 10 largest rail companies in the world by market cap in 2020, there is an overwhelming range of railways again railroads..

Standing alone in the railroad corner is (1) Union Pacific Railroad ($123.56bn).

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In a much more crowded corner stand the railways: (2) Canadian National Railway ($94.85bn); (3) Central Japan Railway Company ($38.7bn); (4) East Japan Railway Company ($36.2bn); (5) MTR - Mass Transit Railway [Hong Kong] (31.14bn); (6) Norfolk Southern Railway ($27.1bn); (8) Canadian Pacific Railway ($22.8bn); (9) Deutsche Bahn - German Railway ($18.85bn); (10) Indian Railways (N/A).

One company in the Top 10 stands alone for neither having railway or railroad in its name - (7) CSX Transportation ($26.3bn).

Historically, In the US, if the trains were pulled by steam or diesel locomotives, the enterprise was called a railroad. On the other hand most of the now defunct electric interurbans connecting cities were typically called “railways”. That’s a good rule of thumb, though there were exceptions. Though it’s trains were pulled by steam and diesel locomotives, the Northern Pacific, which connected Minneapolis / St. Paul with the Pacific Northwest, used “railway” in its corporate name, while two of the last interurbans to operate, the Chicago, North Shore, and Milwaukee Railroad, and the Chicago, South Shore, and South Bend Railroad, used the name “Railroad” in their corporate names.

In the UK, most enterprises operating freight and passenger transport by rail used the name, and were referred to as “railways” to the extent that it’s likely that a written article using the word “railway” was written in the UK, or by an author writing for a UK audience.

BECAUSE NOT ALL FREIGHT ON A TRAIN MOVES IN A BOX

visit: tankcontainermedia.com

RAILROADS HAVE BEEN CARRYING FREIGHT SINCE DAY 1.

IT’S NOW DAY 71,476.

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

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

That was 71,406 days ago today.

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

KEEP THE DATE:

September 27, 2022