NCTA Issue 2, 2011 by National Coal Transportation Association

ISSUE 2 | 2011

Curtis Bay

Terminal On Pace for 12 Million Tons

Electric Vehicles

An Opportunity for Improving Energy Efficiency

PRSTD STD US POSTAGE PAID DENVER, CO PERMIT #353

Damaged & Defective Car Tracking

Looking to lower your overall operating costs?

Is the big decision to Repair or Replace?

Do you manage a fleet of coal or aggregate hauling cars that are past due for preventive maintenance on their door operating systems? Do you have cars that are operating sporadically or not at all? Are you tired of costly spill cleanups due to vandalism or some other inadvertent operation of your doors? If so, you should consider replacing your door operating valves with new state-of-the-art Lexair Second Generation Railcar Valves. From an added benefits and features standpoint, it is less expensive and more cost effective to replace valves on older cars with our newer, improved design. Changing to these new valves with all their great features helps assure correct and proper operation of your cars. This action will assist you in lowering your overall costs and help you keep your “cost-per-mile” of operation as low as possible.

Second Generation Valve Features:

• Main valve element is based on our rugged “sliding shoe” construction – the same trouble-free design that has been used in our railcar valves for over two decades. • A sequenced mechanical lock maintains the valve in the “door close” position regardless of outside forces or vibration. • The locking feature is released only when an electrical or manual signal to shift has been received. • A visual indicator is operated via the lock mechanism that clearly shows whether the valve is in the “door close” position with the valve element locked in place or if the valve is in the unlocked or “door open” position. • Because they are mechanically locked in the “door close” position, the valves may be mounted in any position or orientation - the valve element does not have to be perpendicular to the rails. • The units can easily be modified so that they can be linked to ECP Brake Systems in the future for communication of valve position status. • The modular design allows the main valve unit to be removed/replaced in minutes without disturbing the electrical connection or plumbing when repair due to age or service conditions becomes necessary. • Self closing solenoid cover/junction box can be locked to prevent unauthorized access to manual overrides. • Our patented “Safety Check” technology (U.S. Patents 7,093,455 and 7,328,661) is available as a “no-charge” option. • Innovative lock/indicator features latest Lexair, Inc. technology (Patent Pending).

Typical Before Installation Photos

Typical After Installation Photos

Website: www.lexairinc.com E-mail: jjennings@lexairinc.com Ph: 859-255-5001 Fax: 859-255-6656

Contents

ISSUE 2 | 2011

Reflections

Amsted Rail

PUBLISHED BY: National Coal Transportation Association 4 W. Meadow Lark Lane Suite 100 Littleton, CO 80127-5718 Phone: 303-979-2798 Fax: 303-973-1848 www.nationalcoaltransportation.org Editor: Pat Scherzinger Phone: 303-993-7172 scherzinger@ nationalcoaltransportation.org Production By: Suckerpunch Creative Inc. info@suckerpunch.ca www.suckerpunch.ca

©2011 NCTA. All rights reserved. The contents of this publication may not be reproduced in whole or part, without the prior written consent of NCTA. The opinions expressed by the authors of the articles contained in Coal Transporter are those of the respective authors and do not necessarily represent the opinion of the NCTA or its member companies.

The Timken Company

FEATURES

DEPARTMENTS

Meet Your Board: Jerry Wess

8 4 1

Member Profiles: Amsted Rail The Timken Company

Message from the NCTA President – Betsy Monseu

Message from the NCTA Executive Director – Tom Canter

Curtis Bay Terminal

NCTA Welcomes New Members

Energy Independence with Coal

NCTA Committee Updates

Damaged and Defective Car Tracking

Calendar of Events

AAR Interchange Rules/Rule 91

62 Statistics

Associated Terminals Honors Employees

Members Sound Off

View from the Caboose

Electric Vehicles: Driving Down Dependence on Foreign Oil

Membership List

Index to Advertisers

66 Reflections: Ron Stovash

CONFERENCES 20

37th Annual Fall Meeting &

NCTA Spring General Conference Recap

Conference Preview Denver, Colorado, September 12-14, 2011 Colorado Springs, Colorado, April 24-27, 2011

O & M Conference Highlights Incline Village, Nevada, June 13-15, 2011

COAL TRANSPORTER | 1

President’s Report / Betsy Monseu

President’s Report A Message from NCTA President, Betsy Monseu.

ur Executive Director Tom Canter’s home state of Indiana has been in the news, with the Department of Education allowing schools to opt out of teaching cursive handwriting beginning this fall. The emphasis will be on teaching proficiency in keyboarding. Naturally, this decision was controversial. Those opposed bemoan what will be lost if schools op out, including the beauty of penmanship, the ability to sign one’s name, and the ability to read historic documents or diaries written in cursive. Those who support schools opting out do so with a practical perspective of focusing precious teaching resources on the skills and tools that will best equip students to thrive in the digital world. Is Indiana on the leading edge of a trend? Quite possibly. Whichever side of this fence you are on, it’s undeniable that the use of cursive handwriting has been completely overwhelmed by the use of keyboarding. And we’re not going back. To successfully manage our business and sustainably thrive in our industry, we review what’s worked in the past and what has not. Beyond that, we proactively develop new skills, tools and techniques for continued improvement. Safety is a part of the core values and “Running Right” business philosophy of my company, Alpha Natural Resources, and we are committed to

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enhancing the safety and protection of coal miners. Rick McAllister, a director of continuous improvement in our Running Right group, is developing an exciting and innovative new “tool” – the world’s first mine rescue dog!! “Ginny” is a special dog undergoing rigorous and very specialized training to find trapped miners. She will have the ability to get to places in a mine that a mine rescue team could not. If her training and testing

To successfully manage our business and sustainably thrive in our industry, we review what’s worked in the past and what has not. Beyond that, we proactively develop new skills, tools and techniques for continued improvement. are successful, it will mark a major new development in mine rescue which could save many lives. Hopefully, Ginny will never be needed for the important job she is training to do. But if she is, she will be part of the collective mine rescue efforts made to achieve the best outcome – bringing miners home to their families. Alpha will also make Ginny available to our neighbors in Appalachia beyond the

coal community for help and assistance in search and rescue. What are we are doing within NCTA to equip those who are newer to the coal production, consumption, and transportation arenas with the skills and tools they need to learn and thrive in the coal supply chain arena? Of course, our conferences strive to be informative and meaningful. I recently attended the NCTA Operations & Maintenance Conference (O&M), which had a strong and relevant program. Beyond the program itself, high levels of interaction and exchange stood out, as did similarly high levels of dedication and mentoring. That mentoring comes about on a fairly informal basis by virtue of the strong connections that this group naturally has due to its focus. To increase its members’ knowledge base, the O&M committee is also taking advantage of another tool, the webinar capability Pat Scherzinger researched and tested. Let’s consider together other ways we can foster member development across the NCTA organization to support technical skills, and management and leadership skills. If you have ideas, I encourage you to share them with me or another Board member, or Tom and Pat. In the meantime, I look forward to seeing you at the historic Brown Palace in Denver in September for the NCTA Fall Conference. s

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Executive Director’s Message / Tom Canter

Forcing Technology A Message from NCTA’s Executive Director, Tom Canter.

egislative organizations throughout the world are a source of wonderment to me. The same amazement applies to bureaucratic entities that are making administrative fiats and laws almost daily. It matters not whether the solons and bureaucrats are assembled as Congress, Parliament, the state legislature or state assembly, the UN General Assembly, city council, or the public service commission, or whatever. All too many of the politicians and appointed officials desire to change the laws of physics and economics to satisfy their particular worldview. Science and truth are not a barrier to making and trying to implement new and ever more inefficient mandates that defy they laws of nature. Such mandated use of the favored technology that is neither mature nor economically competitive with existing, successful technologies (which are then penalized) is proudly deemed by politicians to be “forcing technology” for the greater good (as they define the greater good). All of this nonsense is not done in an effort to improve the lives of mankind, but to march down the road to the politician’s vision and version of social justice in a “sustainable world” where humans are subjugated to the needs of Mother Earth. Every one of these mandates brings price increases for electricity, food, the heating and cooling of homes, hospitals, and public spaces, and more control by government entities with fewer lifestyle choices for its citizens. Grandma Olson now is colder in the winter, hotter in the summer, paying more for food and transportation, and she is getting mighty peeved. Hopefully, the unintended consequences of these government mandates and subsidies for your neighbors’ solar

4 | COAL TRANSPORTER

panels, and their new hybrid car, are not intentional. To be fair, forcing technology is not to be avoided entirely, and can produce beneficial results when the goal comports with sound science or economics. The effort to find a vaccine for polio and other diseases, and the successful effort to land a man on the moon within a decade are well-documented mobilizations to achieve goals of the populace. However, such successes were not attained because of legislation mandating specific unproven technologies while imposing penalties on existing technologies. Government was involved in successful efforts to support and help fund research without picking and choosing winners and losers. It is almost unbelievable that engineers and scientists placed a man on the moon with many calculations completed to three significant mathematical digits on a slide rule! However, no one endeavored to change the laws of physics. What a concept! Let’s pick an example of forced technology and unintended consequences. Everyone is aware of the subsidies for questionable benefit with taxpayer and driver subsidies for corn ethanol, but my example is for cellulosic ethanol. Politicians and academics have been taking flak for the failure of corn ethanol to stop the tide of rising oil imports to the U.S. and starting touting cellulosic ethanol from non-food stock grasses as a better biofuel. In December 2007, the Democrat Congress and President George W. Bush (always some blame on both sides of the aisle) expanded the Renewable Fuel Standard (RFS) with the passing of the Energy Independence and Security Act (EISA). The EISA specifically targeted 500 million gallons of cellulosic etha-

nol for 2012, but EPA said it expected to require between 3.45 million to 12.9 million gallons or about 0.69% to 2.5% of EISA’s target for 2012. This amounts to a little less than 0.01% of current U.S. gasoline consumption. Here is the kicker – according to the Wall Street Journal on July 14, 2011, there has been nary a drop of cellulosic ethanol produced in the U.S. in the first six months of 2011. Breaking down cellulose into simple alcohol for ethanol production turns out to be more difficult than previously touted by lobbyists for the industry. Nevertheless, the Obama Administration is on record to help entities (read taxpayer money or borrowed dollars) to help new start-ups to produce cellulosic ethanol. So far, the Energy Independence and Security Act has not provided energy independence nor security. Please pardon my skepticism. Hello, is anybody awake or listening out there? Up there? Down there? Anywhere? Meanwhile, North America has 200 years of coal for electricity, 100 years of shale gas for heating our homes, and 200 years of shale oil for transportation and other uses, and many years of oil from tar sands. Yet, the politicians are at war with fossil fuels and tout technologies that have capacity factors from 10% to 35% as the answer to all things. More of my rant on forced technology in the next issue. In the meantime, I will search for a correlation of the hot air from politicians in Congress and the ever-increasing entropy predicted by the Second Law of Thermodynamics. Congress has been unable to repeal the Second Law. Have a safe day producing energy and wealth for the good people of North America. s

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lower operating and maintenance costs. No one builds more coal cars than FreightCar America. That should not come as a surprise – we’ve been at it for more than a century! In addition to coal cars, FreightCar America designs and builds bulk commodity cars, flat cars, intermodal cars, coil steel cars and mill gondolas. Contact us to find out more about the purchase or lease of the best railcars manufactured by the industry’s most innovative railcar builder.

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Meet Your Board / Jerry Wess

MEET YOUR BOARD Jerry Wess

CTA’s treasurer and board member Jerry Wess currently manages the Midwest coal logistics functions for Exelon Generation. He has responsibility for moving approximately 4.5 million tons of PRB coal annually while utilizing a fleet of more than 1,000 private aluminum coal cars. This coal is transported via unit train across the central U.S. under contracts Exelon has negotiated with the Union Pacific and regional railroads. Before joining Exelon,

Jerome Wess Fuels Trader Exelon Power Team

time in all major departments. Not too bad for a farm kid from Maryland!” In his 22 years with CSX Transportation, Jerry steadily progressed from a trainee through various management positions of increasing responsibility in Finance, Accounting, Sales and Marketing, and Operations, often managing staffs as large as 100. As Assistant Vice President of Fleet Management, he was one of only 1% of all CSX officers who held the coveted “Master” designation. In the middle of his career, Jerry

Wess has responsibility for the annual movement of approxi“… the experience of working with the NCTA Board that is composed of both coal producers and consumers adds great insight into the challenges that we all face in the coal logistics chain.” - Jerry Wess

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mately 4.5 million tons of PRB coal moving in a fleet of more than 1,000 private aluminum coal cars. Jerry served in various logistics capacities, and has extensive worldwide experience not only in rail, but movement of bulk materials via steamship lines and barge. Jerry received his bachelor’s degree in transportation economics from the University of Maryland in College Park, Maryland, and a master’s degree in finance and systems management from Baldwin Wallace College in Cleveland, Ohio. Jerry became interested in railroading while working as a relief clerk in the old B & O Railroad central mail room in Baltimore during his summer breaks from college. “I really enjoyed driving a truck to the passenger stations, and loading and unloading mail bags and packages from the trains. Working for the railroad was a high pay opportunity for a college kid. I was surprised how the railroad experience influenced me. After graduation, I was honored to be selected for one of the twelve coveted management trainee positions by CSX Transportation. It was a one-year opportunity to travel the entire rail network and spend

served as a Vice President at an International Logistics firm that both exported and imported various commodities via truck, rail, and intermodal means of transportation to and from Pacific Rim countries. He also directed marketing and sales activities for the field sales forces at G.E. Rail Capital, owner of one of the largest fleets of private rail cars in North America with over 135,000 cars. “I am just amazed how much I have learned about U.S. industry by being in the transportation industry for most of my career. And the experience of working with the NCTA Board that is composed of both coal producers and consumers adds great insight into the challenges that we all face in the coal logistics chain.” On a personal note, Jerry and his wife Barbara have been married for 41 years. They have three married sons and five grandchildren. When he’s not busy renovating his home in Baltimore, Jerry can usually be found on the beach or out in a sailboat, at their summer place in Ocean City, MD. s

THE NEXT GENERATION OF PROGRESS PROVEN QUALITY. ADVANCED INNOVATION. THAT’S PROGRESS.

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NCTA Member Profile / Amsted Rail

Amsted Rail – Brenco It is Performance that Counts! By Paul A. Hubbard

msted Rail Company, Inc’s Brenco bearing division, in Petersburg, Virginia, is the largest manufacturer of tapered roller bearings for the North American railroad industry. Founded in 1949, by the Whitfield family, the original bearing product was a bronze friction bearing used on both freight cars and locomotives. The name Brenco originated from an abbreviation of the name Bronze Engineering Company. In the late 1950’s, the Whitfield family was convinced that the wave of the future was the tapered railroad bearing, so they undertook a very aggressive project to develop a bearing of their own. The Association of American Railroads’ (AAR) approval of this new Brenco bearing was granted in 1962, and the company has continued to grow ever since. In the late 1970’s, the bronze friction bearing was outlawed in interchange service and the tapered roller bearing took over. It was these friction bearings that originated many of the sizes of tapered roller bearings seen today. For instance a 6 ½ X 12 referred to an axle journal 6 ½ inches in diameter by 12 inches long. During the transition era from friction, to anti-friction tapered bearings, there was an economic industry need to convert existing axles to fit the new bearings by turning their diameters and lengths down on a lathe. This resulted in axle journal sizes that are still somewhat confusing - a 6 ½ inch axle is really 6.1915 inches!

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Our Polymer Cage is the Best Choice for Heavy Haul Rail

A Single-Minded Focus on What We Do Best In 1996, the Whitfield family finally sold their company to Varlen, Inc., which was then subsequently sold to Amsted Industries in 1999 and has been an integral part of Amsted Rail ever since. Through all of these changes, Brenco has maintained its entrepreneurial spirit and its main focus. We design and manufacture only railroad bearings at Brenco. We are the only North American railroad bearing manufacturer that designs and manufactures its own seals and utilizes vertically integrated manufacturing. We understand the applications and cater to all the major worldwide railroad markets and customers. At Amsted Rail – Brenco, it is performance that counts!

A Hardworking Bearing for the Heavy Haul Market The North American railroad industry continues to lead the world in heavy haul technology and nowhere is that more apparent, than with the development of the tapered roller bearing. The largest heavy haul railroad markets of the world continue to look toward North American heavy haul applications for guidance on best practices and on what equipment or technologies to employ. While North America has been largely running 286k GRL railcars since 1995, other markets continue to try to meet that standard. At the same time, we can definitely learn something from these worldwide heavy haul markets, as some have pushed the tonnage even higher.

A Shorter Bearing Axle, Means Longer Bearing Life After many years of experience with heavy haul axle loading, Amsted Rail - Brenco continues to learn more about trends in bearing performance and continues to make changes to our product, to help the bearing and the freight car bogie work together as a system. When discussing calculated L10 bearing (theoretical) life, the increase from 263k to 286k GRL resulted in an increase in railcar load by roughly 9%. This 9% load resulted in an approximately 25% reduction in bearing fatigue life. All bearing OEMs moved from the Class F bearing toward the Class K bearing design, which utilizes a shorter axle and bearing components. The Amsted Rail – Brenco Class K bearing is known as the Gen2000. The concept was that a shorter axle results in less bending, causing less fretting wear in the bearing component stack. This has worked out as planned, with marked improvements in wear characteristics. What has also been seen is the resultant reduction in actual raceway life. The sizes of the raceway surfaces remained essentially unchanged on all of the OEM bearing manufacturers

cup (outer race) and cone (inner race) when bearing manufacturers moved from the Class F to the Class K bearing. The L10 life of a Class F and Class K bearing are in fact identical, but both still meet the required AAR performance.

Rail Infrastructure Limits Bearing Loads When comparing relative bearing life between North America and worldwide heavy haul practices, it is interesting to note that markets such as China, Russia and India, tend to load their bearings much lower than typical of North American heavy haul practice. This is done for several reasons. One is the desire to make sure the over-the-road reliability is as high as possible. Secondly, their infrastructure cannot yet support 286k GRL loads and wayside detection may be minimal. Infrastructure improvements are being seriously considered or undertaken in a lot of these markets. Included in these improvements are commitments to increase the size of the bearing to maintain their existing safety factors as loads increase. It’s considered a small price to pay for more confidence that corridors won’t be blocked by bearing failures, particularly when these corridors are also a major source of the public’s transportation needs. The Class M bearing is the most logical choice for increasing the safety of North American railroads. Assuming a safety factor of 1 for the Class K bearing, the Class M comes in at 1.12. This results in a more reliable bearing with a better overall life span. When considering lifecycle costs and occasional overloading, this Class M bearing is more troublefree, runs longer distances and is less susceptible to damage. Upfront costs will be higher, but in the long run, the industry will be better off, as a whole.

New Products That Are Making a Difference There are many new products that are beginning to make a real difference in heavy haul. One of these products is called a universal backing ring. The universal backing ring is intended to create a fitted bearing application on all bearing mounts. The Wheel, Axle, Bearing and Lubrication (WABL) Committee has been in the process of implementing a mandatory fitted application throughout the industry on all new and reconditioned bearings by using these universal fitted backing rings. Implementation of this new rule is likely to occur January 1, 2012. Again there will be an upfront cost, but the benefit to the industry will be substantial. Code 97 bearing removals have been extremely prevalent in our industry, due primarily to non-fitted bearing applications. This code is for loose backing rings. A loose backing ring is identified by its ability to spin on the axle. Loose backing rings result in nearly 30,000 mandatory bearing removals every year. This costs railroads and private car owners’ time, money and unnecessary logistics. Universal backing rings are expected to eliminate the reciprocating action, corrosion and also loss of the bearing’s initial lateral clamp load. The Amsted Rail – Brenco universal backing ring solution is a two piece, precision-machined part. Named the Tru-FitTM backing ring, it is a patent pending design that maintains the best clamping and push off forces of all available COAL TRANSPORTER | 9

“The Tru-Fit is the best solution to the industry problem of loose backing rings” TM

- Paul Hubbard Director of Engineering, Bearings

Call: (719) 442-2600 • email: sales@westmoreland.com • www.westmoreland.com

universal backing rings. These forces help to maintain the fit necessary to keep water out of the critical axle fillet area to prevent corrosion. The Tru-FitTM backing ring can also be reconditioned multiple times. The Ryno RingTM insert is the portion that creates the interference fit with the axle dust guard diameter and is specified for replacement during every reconditioning cycle. The North American railroad industry continues to drive toward the use of low torque, low temperature grease seals. There are obvious benefits to the users of low torque seals. The most obvious is fuel savings, related to the lower friction at which these bearings operate. A less obvious benefit is the overall reduction in bearing operating temperature. This can

extend the life and performance of the bearing grease. Amsted Rail – Brenco offers a low-torque seal named the Efficiency PlusTM in all AAR size bearings. This is the lowest torque seal available that is also fully AAR approved. It is a true labyrinth design that does a great job of retaining grease, while providing excellent exclusion of contaminants, such as dust, road grime and moisture.

Our Polymer Cage is the Best Choice for Heavy Haul Rail Amsted Rail - Brenco has been employing the use of a polymer cage in our bearings since 1997, and throughout the whole product line since 2004. The advantages are many. The polymer material is better able to accept impacts from railcars

coupling, track defects and wheel defects. Since the polymer is lighter than the original steel cage, the resultant accelerations are significantly lower during impact events. As such, the polymer cage resists cracking much better than the steel cage. The polymer cage is injection molded and allows for complex features that are impossible to obtain from a steel cage. These features include a pocket bar that wraps over a much wider area of the outside diameter of the roller. Even in cases of broken polymer cages, this wide roller support helps keep rollers properly aligned, preventing the possibility of a skewed roller and a locked-up bearing. The polymer material also creates less friction and less resultant heat when the bearing is running, as compared to the steel cage. Extensive studies have been completed by Amsted Rail – Brenco in conjunction with the University of Texas Pan American (UTPA) on the industry problem of temperature-trended bearings. Those studies concluded that the rollers go into a vibratory mode when triggered by an impact. In simplest terms, this vibration causes roller skewing, which in turn,

w e s t m o r e l a n d c o a l c o m pa n y

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causes heat in the bearing. Polymer cageequipped bearings are significantly better than steel cages when comparing removals for temperature- trended bearings. The polymer cage is the obvious choice for heavy haul railroads for all of the reasons outlined above.

The Challenges Posed by Reconditioned Bearings Moving toward the future, the industry needs to reconsider the specifications for reconditioned bearings. Known defects, such as fatigue spalls, are regularly allowed to re-enter service after hand grinding and buffing. These operations make the component more visually appealing, but do little to extend service life. Even after hand-grinding to remove the rough edges of a spall, subsurface cracking remains. Fatigue spalling is the bearingâ&#x20AC;&#x2122;s way of communicating that it has reached the end of its useful life. This warning should not be ignored. Remaining subsurface cracks will continue to propagate, not unlike the proverbial pot hole in an asphalt road. Rollers (or automobile tires) span these pot holes and create high edge

YEARS

12 | COAL TRANSPORTER

stresses. This high stress, in combination with existing cracks, will cause the spall to grow. In the case of a bearing, complete failure is possible. There are many freight-carrying railroads, in foreign markets, that do not allow defects in reconditioned bearings. As a result of this specification, they also have fewer unscheduled stoppages. Other challenges facing the bearing OEMs, include the increased incidence of water- etched bearing components. Wateretch is the oxidation of bearing loadcarrying components, that can result in spalling, hot bearings and bearing failures. Oxidation removes raceway material and causes stress risers, not unlike those seen with fatigue spalls. These stress risers can initiate spalling. This is being studied by Amsted Rail â&#x20AC;&#x201C; Brenco in a two-pronged approach. The first is through improved greases and secondly, through improvements to the grease seal.

We Welcome Customers to See What We Do Amsted Rail â&#x20AC;&#x201C; Brenco employs state-ofthe-art manufacturing processes in its

main facility in Petersburg, Virginia. We are one of the few bearing manufacturers to hot-forge the raceway components to near-net shape, and have developed many proprietary processes, such as closed-die ring rolling. All subsequent processes closely control critical dimensions and functions, with extensive use of CNC, robotics and in-process gauging. We source from supply partners worldwide and are ISO-9001 and AAR M-1003 certified. We encourage our customers to visit our facility to see first-hand what we do. Amsted Rail offers a full line of undercarriage components and is able to optimize not only the performance of the bearing, but also the entire freight car truck systems. We continue to study the interrelationship between the truck system components and bearing life. This makes us unique, worldwide. Our design and service engineers work very closely with our customers. They have an intimate knowledge of the applications, and industry needs. Our goal is the lowest possible lifecycle cost for our end customers, the heavy haul private car owners and the railroads. s

Crown is Changing the “profile” of the industry!

Actual Compaction

Crown Coal CompaCtion, LLC is pleased to announce full scale on track testing in the Powder River Basin ongoing thru Summer of 2011.

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NCTA Member Profile / Timken

These wheel sets are equipped with reconditioned Timken速 AP-2TM bearings, which help provide a significant cost savings compared to new bearings.

The Timke non-conta revolutiona can greatl 14 | COAL TRANSPORTER

Moving Technology:

Timken® Optimizes Coal Cars for the Long Haul Alan Buchanan, Chief Engineer – Rail, and Thomas Young, Vice President – Sales and Marketing, North America, Rail

en® EcoTurn® acting seal is a ary, patent-pending design that ly reduce operating temperatures.

imken has been supplying rail products and services since the industry’s early years. While our brand today runs on some of the world’s fastest passenger trains, the Timken name also is synonymous with reliability in the transport of coal and other commodities. The answer to why so many customers choose Timken has more to do with the know-how we bring to every application than any bearing alone. Our expertise is a pedigree of industry-honed experience combining clean, high-performance steel alloys with rugged bearings and advanced sealing technologies. This combination of ingredients makes Timken unique, and it’s how we earn business as a brand of choice. Our range in the industry also includes bearing repair services to keep the coal industry running. For Timken, these services are a “living laboratory” that detail the work toll of bearings used to haul coal. Over the better part of a century, we’ve parlayed that knowledge into new designs to improve uptime. Today, our Timken products ensure smooth transport across the far reaches of the world. In fact, more than 50 railroads and hundreds of private car owners in 43 countries rely on Timken® bearings and related components to carry precious cargo, from commodity loads to commuters. Our comprehensive line of rail solutions, including bearings, seals, backing rings and bearing repair services, are engineered specifically for the most challenging rail applications, helping to improve efficiency and reduce emissions, while saving money on maintenance and fuel costs.

Timken Rail Innovations Because we focus on the unrelenting pursuit of excellence at Timken, our journal bearings support locomotives running on the highest-altitude railway in the world, through the heart of the Himalayan mountain range. Dedication to the entire life cycle and full breadth of bearing applications gives us a unique perspective to optimize the performance of mechanical equipment, whether for rail engineers specifying bearings for new, original equipment, or maintenance managers seeking dependable reconditioning and remanufacturing services. After Timken introduced the AP™ bearing, widely regarded a revolutionary breakthrough in rail transportation, we developed a second-generation AP-2™ bearing product for a longer life wheel set. The newer AP-2 journal-bearing concept features a shortened distance to the axle shoulder, which helps reduce fretting. The revised model also helps to reduce wear and grooving of the axle which can extend the life of the wheel set. The latest entry into the rail industry, Timken’s EcoTurn® seal, is a smoothturning innovation. The key design improvement focuses on the seal design, where contact has been eliminated between the elastomer lip and the mating surface. This contact has essentially been replaced by a film of grease that is trapped in the uniquely shaped sawtooth labyrinth section of the outer element inside diameter, which is designed to pump grease back toward the bearing rolling elements. The only torque loss experienced because of this clearance is the grease shear during dynamic operating conditions. This grease shear effect is extremely low, and therefore the heat generation and operating temperature of the seal itself are virtually negligible in the overall bearing system. As a result, operators can expect fewer hot-box set-outs and water-related bearing failures. The EcoTurn seal has consistently COAL TRANSPORTER | 15

Based on the original APTM bearing, the Timken AP-2TM bearing is designed to reduce axle deflection, fretting and damage.

produced substantially lower torque and lower operating temperatures than any other seal against which it has been tested. With lower temperatures and better water and contamination exclusion, private car owners may have lower total maintenance costs. The revolutionary design of the EcoTurn seal has been recognized outside the rail industry. In fact, R&D Magazine named the product one of its 100 most technologically significant products in 2008. Previous winners, such as the automated teller machine (ATM), the halogen lamp, the fax machine, the NicoDerm® antismoking patch and HDTV have become fixtures of modern life. The Timken Sure-Fit® universal backing ring exemplifies our drive to

16 | COAL TRANSPORTER

provide exceptional value to the rail industry. Knowing that loose backing rings cause a significant portion of bearing wheel-set removals, we developed the Sure-Fit backing ring to provide an interference fit between the axle dust guard diameter section and the backing ring. Sure-Fit backing rings work on an untoleranced or non-fitted axle with dust guard diameters up to .050” under current Association of American Railroads (AAR) minimum dust guard specifications. The Class F SureFit backing ring gained full approval from the AAR, and the Class E currently has conditional approval. While these products are providing value to a multitude of rail companies around the world, Timken also works

with customers to solve issues specific to their operations. A Swedish rail operator is a great example. The operator transports ore from mines inside the Arctic Circle to ports in Norway and Sweden, a journey that presents very specific environmental challenges involving journal bearings. Timken brought customized capabilities to meet the rail operator’s precise specifications for the bearing assemblies with polymer cages, which align and guide bearing rollers through the load zone. Synthetic grease was utilized to help ensure operation in temperatures as low as -45°C (-49°F). This success is a testament of the knowledge and high performance products Timken offers for the harshest operating conditions.

Timken Engineering Expertise in Every Rail-Car Product Across a wide range of industries, engineers at Timken technology centers around the world collaborate with customers to design, engineer and test develop a continuous stream of new and next-generation products and solutions. We share innovations across our organization, from aerospace to turbine technologies, so even the best thinking around those industries benefits our offering for the rail industry. Timken currently has 52 manufacturing facilities, nine technology and engineering centers and 20,000 employees around the world, with global headquarters in Canton, Ohio. We invest more than $50 million annually in direct research and development of our products and services, and much more in customerrelated development. Employing rigorous testing methods, we’re able to validate the performance of our products for their diverse applications. Having an engineering presence in key areas helps the efficient transport of coal and other heavy commodities and is a benefit to Timken customers. We offer peace of mind for their performance with

enhanced product designs based on their actual field performance and requirements, however grueling the conditions may be—from the desert to the Arctic Circle.

Reconditioning Services Benefit from OE Experience Every year, all around the world, we recondition hundreds of thousands of bearings for the rail industry and return them to work for many more years of reliable service. In fact, Timken is the only company in North America that serves customers in the rail industry across the full spectrum of original-equipment to reconditioning capabilities. Our investment in the entire life cycle of the customer’s application goes beyond industry norms of quality control. Timken’s technical support teams focus on putting the best reconditioned product in the industry in service, with the best available equipment and comprehensive gauging and inspection procedures to recondition and remanufacture rail bearings consistently, to very high levels of quality. We’re driven not only to meet AAR specifications; we aim to exceed them. s

Our teams of engineers and scientists around the world are dedicated to using everything they know about friction management and power transmission to improve our customers’ performance.

Timken leadership extends to communities Getting involved in our local communities is a Timken tradition that began with our founder and continues to inspire associates today. Volunteer leadership remains a core part of our community support strategy with all of our top executives expected to be involved in community leadership. 1. At a surprise meeting arranged to match children from Salvation Army’s afterschool program with bicycles built by Timken finance managers, the scene was joyfully chaotic. In recalling that afternoon of service, the managers say they gained more from the experience than the kids who took bikes home that day. 2. For the past 12 summers, Canton, Ohio-area associates and retirees have volunteered their time to build a Habitat home for a local family. This summer, we are building two Habitat houses simultaneously in partnership with Habitat for Humanity of Greater Stark and Carroll Counties. 3. Timken’s 2010 United Way campaign in the United States broke records for community engagement and financially was the company’s most successful to date, with a total contribution of more than $1 million.

18 | COAL TRANSPORTER

2REB Dist Train Frght Car1_2p2011_Layout 1 3/1/11 11:43 AM Page 1

The Railway Educational Bureau (REB) offers independent study courses covering: • Freight car inspection and repair • Locomotive electrical and mechanical repair • Locomotive operation • Track maintenance • Basic railroad foundation • Metal trades • More!

Independent Study courses offer you the ability to: • Enhance existing training programs • Present theory, techniques and knowledge to your employees • Standardize training for improved efficiency • Manage and document employees’ training • Eliminate training development costs • Provide cost effective training for your maintenance personnel

NCTA members receive a 20% discount off our lesson processing fee. Please call for more information. Mention “NCTA” to receive your discount.

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800-228-9670 railwayeducationalbureau.com COAL TRANSPORTER | 19

NCTA 2011 Fall Meeting & Conference / Preview

NCTA 2011 Fall Conference Brown Palace, Denver, Colorado | September 12-14, 2011

he NCTA continues to offer “Conferences with Character” as it stages its 37th annual Business Meeting and General Conference, September 12-14, 2011 at the Brown Palace Hotel in Denver, Colorado. The theme of this year’s conference is “Managing the Message”. Every day coal provides affordable electricity to people, businesses, and industries across North America. Increased regulation and alternatives to coal will claim a bigger slice of after tax household income and make business and industry less competitive in the global marketplace. Jobs and economic growth are directly linked to low cost energy. Let this message be heard. Our special guest speaker will be Scott Rasmussen founder and president of Rasmussen Reports. Rasmussen Reports was founded in 2003 as a media company specializing in the collection, publication and distribution of public opinion polling information. Going beyond the numbers themselves, Rasmussen's group translates them into meaningful analysis about underlying trends and the questions that Americans have about energy. Please check the NCTA web site for updated information and online registration: www. nationalcoaltransportation.org/events/fall2011.html

has visited The Brown Palace Hotel. Teddy Roosevelt was the first, speaking at an elaborate hotel banquet held where the guests paid $10 to attend and more than 1,500 cigars were smoked. Oh, have times changed. The Brown has also been the hotel of choice for an extraordinary array of musicians. Snoop Dogg and Springsteen, Beatles and Bacharach, Jewel and Diamond, McCartney and Metallica, Perlman and Pearl Jam, Norah Jones and Rolling Stones – The Brown has attracted the biggest names from every musical era and genre. While an historic hotel, the Brown Palace is set to accommodate the modern business traveler with updated rooms, high speed internet, LCD flat screen televisions, and all the amenities that NCTA attendees have come to expect. The Brown Palace, located at 321 Seventeenth Street, is a block from the free 16th Street Mall shuttle that will take you to both ends of downtown Denver and the watering holes and restaurants in lower downtown. For more information see their web site at www.brownpalace.com.

RESERVATIONS: Telephone: 303-297-3111 or 1-800-321-2599

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REGISTRATION

Registration is required for each attendee of the NCTA Annual Meeting and Conference. The registration fee is $450.00 for each attendee representing an NCTA member company and $585.00 for all other attendees when registering prior to August 26, 2011. After August 26th an additional $50 fee will apply. There is no fee for spouses. The registration fee includes access to presentation materials; entry to all sessions; the receptions on Monday and Tuesday evenings; continental breakfasts on Tuesday and Wednesday; and all refreshment breaks.

ACCOMMODATIONS

The Brown Palace Hotel and Spa, opened every day since 1892, is the historic jewel of Denver Hotels. It has been a favorite hotel in Denver for Presidents, royalty, and celebrities. Since 1905, nearly every U.S. president 20 | COAL TRANSPORTER

$179.00/day Single/Double

RECREATION

September is a beautiful time of year to enjoy one of Colorado’s scenic golf courses. Try Arrowhead with its awe inspiring vistas 300 million years in the making or the top rated but affordable Murphy Creek Course where the 18-hole green fee of $34 will make your boss happy. Sorry, the Rockies are on the road this week but since the NFL owners and players are finished fighting over their billions, the Broncos are scheduled for Monday Night football, taking on the Raiders in INVESCO Field at Mile High. This could be your chance to see popular Heisman Trophy winner and now Denver Quarterback Tim Tebow in action. s

Monday, September 12 2:00pm – 6:00pm Registration 1:00pm – 4:30pm

NCTA Board of Directors Meeting

5:30pm – 7:00pm

Welcoming Reception

Tuesday, September 13 8:00am – 11:30am

General Session

11:30am – 1:00pm

Lunch Break

1:00pm – 3:45pm

General Session

4:00pm – 4:30pm

NCTA Annual Business Meeting for Members

5:00pm – 6:30pm

Reception Sponsored by Suppliers

Wednesday, September 14 8:00am – 11:30am General Session

While an historic hotel, the Brown Palace is set to accommodate the modern business traveler. COAL TRANSPORTER | 21

New Member Announcement

NCTA WELCOMES ITS NEWEST MEMBERS!

he board of directors of the National Coal Transportation Association is pleased to announce that the applications for membership in NCTA of the following coal industry participants were approved. They join NCTA’s existing member companies working every day through NCTA to foster the cooperation needed to resolve issues faced by coal consumers, coal producers, transporters, rail equipment manufacturers. and services companies.

Drummond Coal Sales Inc. iIRX, LP Martin Engineering RESIDCO

A complete list of NCTA member companies can be found on NCTA Web site: www.nationalcoaltransportation.org/membership/members.html

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Infrastructure / Curtis Bay Terminal

CURTIS BAY On Pace for 12 Million Tons and Planning for 18 Million Tons Annually By Dave Gambrel

24 | COAL TRANSPORTER

ust like Babe Ruth in the 1932 World Series, CSX, owner and operator of the Curtis Bay Terminal, has pointed to the center field flag pole and has told everyone they expect to hit the ball there. Curtis Bay is holding a pace of 8.6 million tons through mid-year 2011. The “flag pole” is 12 million tons of annual throughput by 2012. Infrastructure improvements are being planned for a potential dumping capacity of 18 million tons in the next 3-5 years. The first of these improvements will be complete by first quarter, 2012. The first project requires cross-over material transfer belting modifications, enabling the high dumping rate of the two-car B&O dumper to load vessels at either pier or unload the coal to ground storage. Currently, the two-car dumper is configured to unload cars only directly to vessels at the B&O pier. Simultaneously, the Bayside dumper will be able to unload trains to another vessel or ground storage; whichever is not being serviced by the two-car dumping process.

They Boldly Go What is the source of CSX confidence, and why is it so pervasive? The key to it may be found in a September 5, 2010 letter from CSX Chairman Mike Ward to Surface Transportation Board Chairman Daniel Elliott. Ward stated that in spite of economic adversity and in spite of having to idle 700 locomotives and 30,000 freight cars in 2008-2009, CSX still spent $5 billion in capital over the past three years. Sensing a favorable turn in the metallurgical coal export market, CSX began breathing life back into the two under-utilized terminals in 2003 with a major step up in funding in 2009. These were CSX’s B&O Terminal, whose ship berth could handle Panamax vessels, and Island Creek’s adjacent Bayside Terminal, which could fully load Capesize vessels. CSX now owns both terminals, and operates them as one under the name Curtis Bay Terminal. The most recent history reflects handling 3.4 million tons of coal in 2007, 4.2 million tons in 2008, 2.3 million tons in 2009, 5.0 million tons in 2010 and they are now on an 8.6 million ton pace.

Senior management has challenged the terminal to hit a 10 million ton pace by the end of 2011, and the entire team expects they will be able to do it. This is a confident group of experienced men led by the veteran Craig Blinke as the Supervisor of Piers. Since the third quarter of 2010 contract manpower has increased from 45 to 70 and management manpower has increased from 8 to12. Embedded in the growth strategy is the continual focus on safety: terminal personnel as well as visitors and the surrounding community. Curtis Bay has a full-time Manager of Operating Practices and Safety to reinforce standard and reliable processes that are consistent with all supervisors and shifts. Training includes a specialized two-week course of instruction at the CSX REDI Center in Atlanta to give all workers’ baseline knowledge prior to full-time residency at Curtis Bay. Standardized testing on the equipment reinforces safe operating processes.

Three Rotary Rail Car Dumpers Curtis Bay has the luxury of having not one but three rotary rail car dumpers. The Bayside dumper (#3) can dump about 300 cars per day. The B&O (#2) dumper is a double car dumper capable of unloading 800 cars per day. The B&O (#1) single car dumper regularly dumps 200-250 cars per day. It is currently configured to dump cars for coal loading directly to vessels at the B&O pier using either the barge loading system or the ship loading system. The single car dumping is best tailored to loading coastal barges while the B&O double dumper efficiency is best applied to larger vessels. Conveyor belts from the dump hoppers currently route the coal to specific piles or piers. For example, coal dumped at the #2 dumper goes to the old B&O pier. Coal dumped at the #3 dumper goes to the Bayside pier, ground storage or B&O pier, but only when neither of the other two dumpers are in use. When completed later in 2011 the cross-over belting project will provide

TERMINAL

enhanced flexibility between dumping systems and vessel loading systems. When CSX began Unlike a typical ground storage rejuvenating the old terminal terminal, this terminal has the distinct advantage of being owned facilities it found large banks by a delivering railroad, CSX. This of system controllers that were dual ownership provides a degree operated by vacuum tube of flexibility and control not electronics and mechanical enjoyed by most terminals. CSX switches, a technology on its presently has about 1,600 cars in way out in the early sixties. service to Curtis Bay Terminal, Those controllers have all been Ships on berth waiting to be loaded. L-R: M/V serving coal mines primarily located replaced by state-of-the-art PLC ‘’Barock’’ (82191 dwt, built 2007) on the B&O Pier; (programmable logic controller) in the Northern Appalachian coal fields the states of Pennsylvania, M/V “Golden Eclipse” (79474 dwt, built 2010) on panels. A full electronic upgrade West Virginia and Maryland. They and conversion of the #2 double the Bayside Pier. run a mix of 130-car trains primarily dumper has been accomplished. loading at MGA loadouts or mines adjacent to the MGA region. Also, additional safety lighting, preservation, painting, and invenSmaller trains of about 80 cars each are originated on the A&O tory overhaul have been completed. railroad. Both train sizes are loaded to an average of 105 tons per car. These 80 car trains can be doubled at Cumberland, MD, Eight Stacking Tubes for Storage enabling 160-car trains to be delivered to Curtis Bay. Since thaw sheds are often required to unfreeze coal in rail cars during the The terminal was originally constructed as a direct dump facility, winter, the use of aluminum rail cars is not advised. which minimized the need for ground storage and space. ConseThe terminal’s goal is to move loaded trains in and unloaded quently, the storage facility has a small acreage footprint, but offsets trains out within 9-12 hours once they are placed at the terminal. that deficiency by stacking vertically. This has been made possible Because they work the schedule so efficiently, they regularly find by using eight stacking tubes, vertical tubes roughly 30 feet in themselves waiting and asking for trains, even though their laddiameter and 90 feet high. Openings along the length of the tubes der track configuration does not permit entire trains to be kept allow coal to flow out at various levels. The toe of the piles along together. This is a good sign, because it shows the terminal itself the side closest to the dumpers is deepened by means of a retaining is not an impediment to faster throughput. There have been some wall. In two perfect piles they can store 600,000 short tons on the track conversions to support greater yard flexibility, and more are ground, enough for four or five Capesize vessel loadings. being planned. If different coals are stacked in adjacent piles, the toes of those piles are generally kept apart by at least the width of one

The Rail Advantage

COAL TRANSPORTER | 25

dozer blade. The feeders operate at 1000 tons per hour, and are capable of feeder-to-feeder blending when loading vessels from ground storage. The system still requires some direct rail-to-ship transfers to maximize efficiency. There is one in-bound sampler as part of each dumper and two out-bound samplers; at the outbound transfer tower and just prior to each shiploader. Dust control and water runoff are both a primary concern for the terminal. Dust control is accomplished by rainbirds located around the stockpile area at 200’ spacings, and on top of the stacking tubes. They are always operated at noon and at 7PM, as well as when the computer determines additional spray water is needed. The computer operates on the basis of preset times and wind speed set points. Starting with an initial supply of city water, it is supplemented with rain water and reused. The amount varies from 7000 to 20,000 gallons per day. There is a one acre settling pond to catch all the water runoff from the stockpiles. Environmental control people watch dust and water emissions closely, but there have been no violations.

Wide Assortment of Vessel Loading and Unloading Options Curtis Bay Terminal has three outbound coal pier berths and one inbound ore pier. Two of the outbound piers are strictly for export shipments of coal because of the larger vessel sizes. The Deep Draft, or Bayside Pier, was built in 1982. This pier will permit the loading of Capesize vessels to a draft controlled by the Maryland Pilots Association. That limitation is currently set at 47’6”. The Panamax, or B&O Pier, was built in 1965. Its draft limitation is currently set at 42’ (about 66,000 metric tons). The Coastal Barge Pier loads coastal barges of coal for coastal customers, and the adjacent Inbound Ore Pier has the capability of unloading ores, scrap and other bulk commodities. Curtis Bay Terminal is one of the very few multi-faceted terminals capable of so many operations. The LOA and beam parameters shown in Table 1 are suitable only for self-trimming bulk carriers; other vessels types will

Table 1. PIERS AT CURTIS BAY TERMINAL Pier Name 

Deep Draft (Bayside)

Panamax (B&O)

Coastal Barge

Inbound Ore

Pier Type Berth Length, ft LOA, ft Beam, ft Dredged Depth, ft MLW Max. Air Draft, ft Vessel Draft, ft

Export 909 1000 160 50 60 47'6"

Export 900 900 135 40 60 *

Export 800 250 40 25 *

Import 650 900 150 42 52 *

* Determined by vessel captains, but Panamax vessels are normally loaded to 80,000 MT at B&O Pier. The deepest route to and from Chesapeake Bay is south of Chesapeake Light through the buoyed Deep-Water Route in the southeasterly approach. Federal project main channel depths are 50 feet from the Virginia Capes to Baltimore and 55 feet from the Capes to Hampton Roads.

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Empty rail car side of the three dumpers. Stacking tube storage is to the left, and piers are to the right in this photo.

Stacking Tube Storage. Rail car dumpers are just north of center, and piers are at the top right. Total stockpile capacity is 600,000 short tons.

be considered by CSXT on a case-by-case basis. This simply means that a vessel should be capable of trimming coal cargoes in its holds using it own equipment, and should not require the lowering of mobile equipment into the holds to accomplish trimming. The terminal focuses on minimizing storage time, so vessel loadings at Curtis Bay are tied to a 60-day permit. This amount of lead time enables the coal mine, the terminal, the railroad, and the ship to plan and coordinate shipments in a maximally efficient manner. This does not mean the terminal will turn away late business (less than 60 days), but all shippers are informed the best way to be assured of throughput capacity is to plan ahead by at least 60 days. CSXT will maintain a

tentative schedule of vessel arrival dates. Shippers are expected to nominate vessels at least 60 days prior to arrival.

      

A Wee Bit of History In 1993 Consolidation Coal agreed to sell the Bayside coal export terminal in Baltimore to settle Federal Trade Commission objections to its proposed $480 million purchase of Island Creek Coal Company. The FTC had found the acquisition would significantly reduce competition at Baltimore’s two coal export piers, which at that time were owned by Pittsburgh-based Consol and Island Creek, a subsidiary of Occidental Petroleum Corp. of Lexington, Ky.

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Western Maryland coal producers had complained to the FTC that Consol’s plan to take over the Bayside terminal through its purchase of Island Creek would give Consol control of the port’s two coal export piers, a monopoly they feared could squeeze them out of the market. Baltimore was the only port for the Maryland coal companies’ exports, since they lacked rail access to other ports, such as Philadelphia or Norfolk, Va. A third coal pier in Baltimore, owned by CSX Corp., handled only domestic shipments of coal. The FTC found that the acquisition by Consol could have raised the price of export services to coal producers and led to reduced coal production in the northern Appalachian region served by the Baltimore terminals. The FTC settlement permitted Consol to buy Island Creek but required it to sell Curtis Bay Company, which owned and operated the Bayside terminal.

CSX Works with Coal Companies CSX actively supports a large number of new projects. Coal company activity is being carried on in its Northern West Virginia, South West Pennsylvania and Western Maryland origins by several companies: Arch Coal, Alpha Natural Resources, Walter Energy, Alliance Resource Partners, United (recently purchased by Ukraine company MetInvest), PBS (recently purchased by Russian company Severstal), and Consolidation Coal. Their mines produce coal for the export market and rail it to coal terminals located in Baltimore. For example, Arch recently purchased all outstanding shares of International Coal Group (ICG), a metallurgical coal producer with several mines and load outs on the A&O feeder line to CSX’s main line to Baltimore. The development of ICG’s Tygart

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No.1 Mine began has been underway since June 2010. At full production, Tygart No. 1 is expected to produce approximately 3.5 million tons per year of premium high-volatile metallurgical and high-quality thermal coal. CSX has a long and solid history of working directly with coal companies to promote coal sourcing on the CSX railroad, and to combine market intelligence and strength. Its Coal Development Group consists of three commercial directors with over 90 years of coal field experience that work out of an office in Lexington Kentucky. Steve Crum, Guy Martin and Jeff Heath travel daily to all coal regions supported by CSX for both development of new facilities and focused customer service at loadouts and coal facilities. The Coal Development Team reports to the Director of Coal Facilities and Origin Sales, Jack Burgess and all are part of the Coal Commercial Group led by Chris Jenkins, VP of Coal and Auto. The CSX Coal Development Team has actively worked with multiple coal producers in the development of two new green-field projects in Northern WV, two expansion projects in Northern WV, two expansion projects in Western MD and two expansion projects in southwest PA that are planning to ship additional tonnage through Curtis Bay Terminal in the next 2-5 years. s Dave Gambrel is the president of Logisticon, a coal transportation consultancy. He was senior transportation executive of a major mining company for 15 years, and served on the DTA Management Committee for ten years. He was a member of the USA component of the LAXT negotiating team, and formerly chaired the Western Coal Transportation Association. Email: bunkgambrel@earthlink.net or david.gambrel@gmail.com

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NCTA 2011 Spring Conference / Recap

NCTA 2011 Spring Conference The Broadmoor, Colorado Springs, Colorado | April 24-27, 2011

Governor Schweitzer chats with Vanta Coda and Pat Cummings

30 | COAL TRANSPORTER

Charlie McNeil, Craig and Paula Romer

Bill Wallace, Steve Sharp, Frank Visger, and Doug Bock

hey say you can’t go back but the NCTA did with its return to the BROADMOOR in Colorado Springs for the 2011 Spring Conference. The conference began with the 16th annual golf tournament on the famous East Course. Over 100 golfers played the best ball event returning with a strong recommendation that the property be renamed the “Four Seasons” due the range of weather conditions encountered during the round from icy hail to glorious sunshine. The annual NCTA Spring Conference dinner was an elegant affair held at the Broadmoor’s International Center. Featured dinner speaker Montana Governor Brian Schweitzer mingled with attendees and guests during the pre-dinner reception. In his anecdote filled remarks, Governor Schweitzer reiterated his strong feelings on energy independence. “Whether we drill it, dig it, radiate it, grow it, or blow it, if it’s designed by American engineers and built by American workers and breaks our addiction to foreign oil it’s all good,” he declared. The evening was capped off with a little musical

Harry Zander, Pat Ottensmeyer, and Gary Turner

entertainment by the Castle Capellas. On Tuesday morning, the NCTA welcomed back keynote speaker Surface Transportation Board Chairman Daniel Elliott III. The chairman updated attendees on changes in the Board, recent decisions, and the challenges that lie ahead. Next up was special guest speaker Jim Davidson, adventurer, expedition leader and author. Jim used his personal story of triumph and tragedy to impart a lesson in resiliency. One of the hot topics at the conference was the export market and terminal capacity. Pat Ottensmeyer of the Kansas City Southern covered the Port of Lazaro Cardenas in his presentation Mexico – The New China. Terry May from Associated Terminals tracked export coal through the Lower Mississippi River and Matt LaFiandra discussed the terminal capacity on the Pacific Coast of North America and the opportunity for export growth out of the Ridley Terminal.

Jack Cranfill, Terri Humphies, Janet Cranfill, Jerold & Patty Nelesen

Castle Capellas

COAL TRANSPORTER | 31

NCTA 2011 Spring Conference / Recap

Mary Lou Risley and Sonny Williamson, Joe and Janet Vaccari

Jim Jacobs and James Garrett

Pat Cummings

Josh Herzing and Peter Sutcliffe

The AAR, CSX and BNSF covered the key challenges facing freight railroads both broadly and from the individual carrier’s unique perspective. The roles played by the Powder River Basin in powering America and by North America in the ever changing coking coal market were detailed in separate presentations. Presenters from the Beltway provided their perspectives on the STB’s developments including the coal dust decision and the EPA’s boiler MACT “debacle.” Rounding out the program was a presentation by EPRI’s Haresh Kamath on electric cars and the electric grid. Haresh has graciously provided a follow up article for this issue of the Coal Transporter. In a Tuesday afternoon breakout session, Robert Taylor of American Electric Power presented an update on the regulations, monitoring, and control of combustible and fugitive dust. The NCTA Spring Conference heads east to another one of a kind five star resort in 2012. Mark your calendars for April 15-18, 2012 at the fabulous Greenbrier in White Sulphur Springs, West Virginia. s

Event Sponsors: Alliance Coal, LLC Alpha Natural Resources Arch Coal Sales, Inc. Peabody Energy

Music & Lanyards: Jack Cranfill and Joe Evans

Westmoreland Coal

Flyer: Macquarie Rail

Mark Strazala and Jason Rea

32 | COAL TRANSPORTER

Thank you!

We’re working around the clock for you. Arch Coal is committed to your #1 goal of providing dependable, affordable electricity to your customers. That’s why we work around the clock to provide quality assurance, trusted reliability and personal service. With a national network of mines in every major low-sulfur coal basin, we can meet the demands of energy users from coast to coast. Give us a call today 1.800.282.2724.

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NMA / Energy Policy

Fueling Our Future A Strategy for Increasing America’s Energy Independence with Coal

By National Mining Association

ur nation’s vast coal resources can be effectively used to move the United States towards the goal of energy independence. The United States’ annual demand for coal could nearly double to over 2 billion tons by 2025 and lessen our dependence on imported energy, if current forecasts are realized and new markets for coal gasification and coal-toliquids develop. A corresponding increase in domestic coal production – 1.1 billion short tons in 2005 – would be needed to meet this demand. A number of factors contribute to this aggressive growth projection. Coal is the fuel of choice for the next generation of electricity, and its share of the total electricity market is forecast to increase from roughly 50 percent today to as much as 54 percent by 2025. Conventional oil and natural gas sources are constrained by availability and price even as demand for energy continues to grow. Conversely, the United States has 34 | COAL TRANSPORTER

a 250 year reserve of abundant and affordable coal that can effectively contribute to lessening our dependence on foreign energy sources in the years to come. In addition, coal gasification and coal-to-liquids technologies are opening promising new markets for coal in the residential, commercial, industrial, and transportation sectors. Production goals equivalent to 4 Tcf of pipeline quality synthetic natural gas (SNG) annually and 2.6 million barrels per day of liquid fuels from coal are possible by 2025. Over time, these modern coal conversion technologies, combined with an aggressive research program, could open the door to a hydrogen economy fueled by coal. Ensuring that sufficient domestic coal is produced, transported and converted into the energy products demanded by a growing and increasingly energy dependent economy is a national imperative. Success requires a strong and coordinated partnership between coal producing, transporting and consuming industries to

focus on actions and policies that: • Enhance coal-fueled electric generating capacity using a suite of advanced clean coal technologies; • Support the emerging coal gasification and coal-to-liquids industries; • Expand domestic coal production in a safe and environmentally sound manner; and, • Increase the coal hauling capacity of the nation’s railroads, river systems and coastal waterways. An equally strong partnership between industry and government is needed. While a range of polices and actions can affect the nation’s ability to meet the anticipated demand for coal, some are critical for success and require implementation of an action strategy designed to harness the attention, innovation and capabilities of both public and private sectors. These constitute our “Strategy for Increasing America’s Energy Independence with Coal” and include:

• Developing and deploying new technologies that enable the industry to advance the safety and health achievements that have been attained to date, including effective training tools for the new generation of miners that will join the industry in coming years. • Promoting an aggressive coal conversion program that includes expansion of the nation’s capability to generate clean electricity from coal and use coal to produce pipeline quality synthetic gas and liquid transportation fuels. This can be facilitated through new industry-government partnerships such as a Department of Defense-industry partnership to build coal-toliquids plants that produce aviation grade fuel from coal. • Reaching a consensus on land use and access policies that: A. Allows access to coal reserves on federally owned lands and promotes accumulation of sufficiently large reserve blocks on privately held lands; B. Allows timely expansion of the rail transportation network based on projected production-to-market scenarios; C. Provides appropriate sites for new power generation plants and coal gasification and coal-to-liquids refineries; and D. Provides access to rights of ways for expansion of the electric transmission system. • Developing regulatory policies and permitting procedures that ensure: A. Coordination among federal and states agencies to facilitate the expeditious review of permit applications and the resolution of any conflicts; B. Expansion of existing coal production capacity through the development of new, greenfield mines as well as the expansion of existing mines; C. Siting and permitting of expanded generating capacity; D. Siting and permitting of new greenfield generating plants; E. Expansion of transmission capacity; F. Siting and permitting of gasification and coal-to-liquids facilities; and G. Expansion of coal transportation systems. • Establishing environmental policies that balance the need for expanded and affordable energy supplies with reasonable and sensible environmental protection requirements while providing the long term certainty needed for major investment, such as: A. Retention of Nationwide Permitting 21 provisions and resolution of related Section 404 issues at coal mines; B. Resolution of particulate matter regulations so that coal production is not constrained by requirements that are not justified based on scientific and economic evidence and are inappropriate to coal mines; C. Finalization of NSPS and mercury requirements for existing and new power plants; D. Development of environmental requirements for coal refineries that take new and advanced technologies into account; and E. Opposition to all mandatory restrictions on carbon emissions.

• Undertaking aggressive employee recruitment and training programs at the technical level and at university-level mining engineering programs to meet the demand to replace 55,000 mining employees in the next five to 10 years. In addition, at least 300 new mining engineering graduates are needed annually to keep pace with projected retirements and growth in the industry. • Enacting tax policies that not only encourage, but also ensure, timely and adequate investment in coal based energy infrastructure, including expansion of coal mine capacity, coal transportation infrastructure, and generating plant, transmission lines and coal refining capacity, such as: A. Full expensing of expenditures for exploration and development costs; B. Either accelerated depreciation or full expensing for capital expenditures associated with new or expanded coal production, transportation, and generating and refining capacity; C. Use of accumulated alternative minimum tax (AMT) credits for capital investment in capacity expansion; and D. Repeal of the AMT. • Implementing financial incentives, including loan guarantees, low interest loans, grants, price guarantees or other incentives to: A. Encourage expansion of coal mines; B. Expand the coal transportation system; C. Accelerate installation of advanced pollution control equipment at existing generating facilities; and D. Promote construction of new generating plants and coal refineries using advanced technologies. • Providing full funding of research and development partnerships between government and industry to: A. Meet the research goals originally set out in the Industry of the Future vision statement for mining; B. Fully implement coal utilization research, development, demonstration and deployment programs to meet the criteria and goals established by the Energy Policy Act of 2005; C. Expand research on advanced pollution control technologies associated with the control of mercury and other criteria pollutants; D. Continue development of advanced clean coal combustion, gasification and liquefaction technologies; E. Allow for timely completion of the FutureGen project; F. Develop technologies to capture and sequester carbon; and G. Achieve cost-effective production of hydrogen from coal. The National Mining Association (NMA) commits itself to the attainment of these objectives, which promote the utilization of coal to fuel America’s energy needs, move our nation towards a greater degree of energy independence and support our quality of life. For more information, please contact NMA at (202) 463-2600 or visit our web site at www.nma.org. s COAL TRANSPORTER | 35

NCTA COMMITTEE

UPDATES Eastern Logistics & Planning

The Eastern Logistics and Planning Committee met May 19, 2011 at the Baltimore Marriott Inner Harbor at Camden Yards in Baltimore, Maryland. NCTA President Betsy Monseu, from Alpha Coal Sales in nearby Linthicum Heights, kicked off the meeting with a fun trivia game testing attendees’ knowledge of the Baltimore area and the state of Maryland. Jack Burgess of the CSX provided an update on operations and Rob Jones did the same for the Norfolk Southern in his first Logistics and Planning Meeting. Chairman Jan Figgins of AEP passed on information from AEP’s River Operations on current flooding and river conditions effecting coal movements on the system. Other speakers included Daniel Vaughn of ICAP United who discussed recent coal industry consolidation; Ted Barker of Maxeefish on seamless OTC coal deliveries; and Gene Kitts, of IGC who touched on the regulatory environment in a tongue-in-cheek titled presentation for a transportation group,

President Betsy Monseu warms up the crowd.

Western Logistics & Planning

The Western Logistics and Planning (WL&P) Committee will will be meeting at press time in the offices of Kansas City Power and Light. This working committee meeting has a robust agenda addressing railroad operations and maintenance schedule updates from the Union Pacific and the BNSF, Burns and McDonnell on environmental regulations and technology, the FRA on rail policy and breakout discussions on dust mitigation and the implications to utilities and chemical suppliers on the latest BNSF tariff. Following the meeting, Arch Coal will host a networking luncheon. A block of rooms was reserved at the Hotel Phillips for the convenience of committee members. Attendees plan to meet in the hotel’s 12 Baltimore Café, locally known as the “Cheers” of Kansas City, the evening of the 10th for a no-host networking event. The hotel is a short walk from the Kansas City Power & Light District, a premier dining, entertainment and shopping district in the heart of downtown Kansas City. 36 | COAL TRANSPORTER

NCTA Committee work is at the heart of the Association. The committees provide valuable information and education to members, foster best practices, improve communications among the parties, and keep members up-to-date on new rulings and technologies. This is where members get payback many times over for their annual membership fees.

“If They Won’t Let You Mine It, Shipping Is Not a Problem”. Following the morning presentations and committee discussions, CONSOL Energy provided a tour of their nearby CNX Pier. Chris Marsh of CONSOL gave a high tech overview of the facility located on 200 acres along the north shore of the Patapsco River. CONSOL Energy’s terminal in the Port of Baltimore is the only East Coast terminal served by two rail lines, the Norfolk Southern and CSX Transportation. Alpha Coal Sales provided lunch at the pier. Thursday evening, Alpha Coal Sales also hosted an evening of baseball at Camden Yards with the hometown Baltimore Orioles taking on the New York Yankees. Although the Orioles lost in a bit of a rout, it was great opportunity to network and enjoy America’s “national pastime”. s

Shon Yates, Theresa Koegel & Greg Nunley of TVA. The winter meeting of the WL&P will be in February 2012 in Las Vegas. For input and ideas for this meeting, please contact Chairman Greg Key (Ameren) or Vice-Chairman Kathy Brown (Arch Coal). s

WL&P Meets August 11 in Kansas City

O&M Executive Committee: (L-R) Rich Kotan, John Casto, Jerry Bohacik, Kevin Waite, Dennis Wanless, Carmen Sparks, Kurt Stroer, Gayle TenBrink, Harry Mullins, Robin Andersen

Operations & Maintenance

The Operations and Maintenance Committee was very busy leading up to its annual conference (see conference recap on page 44). It was host to a second webinar, this one presented by Phil Polletti of Crown Products and Services. The topic was the new compaction process then being tested at Peabodyâ&#x20AC;&#x2122;s School Creek Mine. If you have topics you would like to see covered in a webinar or you would be willing to participate as a presenter, please contact Gayle TenBrink of Trinity Rail (gayle.tenbrink@trin.net) who is heading up this ongoing educational outreach. At the 2011 Operations and Maintenance Conference, four open positions

on the Executive Committee were filled by a one vote per company balloting process at the Monday afternoon roundtable. The Executive Committee members are John Casto, Chairman (FirstEnergy), Carmen Sparks, Vice-Chairman (Luminant), Gayle TenBrink, Secretary (TrinityRail), Robin Andersen (Mitsui Rail Capital), Jerry Bohacik (GATX), Rich Kotan (OPPD), Harry Mullins

(Southern Company), Kurt Stroer (Ameren), Dennis Wanless (Xcel Energy), and Kevin Waite (Detroit Edison). The next Operations and Maintenance Conference is scheduled for June 11-13, 2012 at the Hershey Lodge, in the Sweetest Place on Earth, Hershey, Pennsylvania. s

www.westernfuels.org

WESTERN FUELS ASSOCIATION, INC.

is a not-for-profit corporation providing coal procurement, rail transportation and rail car management services for the Associationâ&#x20AC;&#x2122;s members and other customers located throughout the U.S. To discuss the benefits of membership or review the full list of services available from Western Fuels to assist you with managing your coal procurement and transportation needs please contact us at 303-254-3070, or visit us at www.westernfuels.org

COAL TRANSPORTER | 37

DDCT

By Michael J. Kelly, Fleet Management Leader, GE Rail Services

new acronym—DDCT—entered the world of coal car owners and lessors this past January. It stands for Damaged and Defective Car Tracking, and it spells the end of many manual processes, expenses and sometimes confusion for those of us in the industry. DDCT is a major step forward and provides a new level of visibility into damaged and defective cars, though it has not automated every aspect of the process. For fleet owners like my company, GE Rail Services, the potential long-term benefits are significant. That is why we have worked diligently to adapt to DDCT, and why I encourage anyone who operates rail cars in North America to do the same. For the many improvements now available, this article will help you identify and follow best practices in the new world of DDCT. For decades, railroads, car owners and repair shops each maintained their own manual processes for tracking and

40 | COAL TRANSPORTER

managing damaged and defective freight cars. Because there was no centralized system, data retrieval could be time-consuming and complicated, and information was often scattered among emails, spreadsheets, and voice mails. In North America today, more than 550 railroads interchange about 1.5 million freight cars with each other and tens of thousands of suppliers and shippers. Class I railroads alone spent $1.15 billion on freight car repairs and maintenance in 2004 and billed other companies (including owners of coal cars) significant additional amounts, according to the Surface Transportation Board’s most recent available 2004 Railway Operating Expenses Annual Report. This January, a much better system for tracking and documenting damaged and defective cars under AAR Rules 1, 95, 107 & 108 was introduced in the form of DDCT. It automates what were manual processes with an easy-to-use, centralized web-based application. The railroad

industry’s data provider, Railinc, developed and administers DDCT throughout North America, and the initial implementation has gone well, already delivering benefits to rail car owners and railroads. Users now have real-time access to information through a single standardized source. And they can easily update, retrieve and share information in a timely manner. The result is better communication and collaboration among rail partners for better equipment management and improved rail safety. First, there are a few basics to know. So let’s get started.

FindUs.Rail To receive the maximum benefits from DDCT, it is critical that your company is entered as a car mark owner within the DDCT module of Railinc’s FindUs.Rail (FUR) directory. This will ensure you receive email notifications when damaged or defective incidents are created by a railroad on one or more of your cars. To maximize your ability to respond to an incident and provide disposition back to the railroad quickly, it is imperative that each of your shop locations load themselves into the repair shop module of FUR. Rules 114.2 e. and 114.2 f. of the AAR Office Manual mandate this. By having your shop network load each of their locations into the Repair Shop module of FUR, you can minimize the turn time for providing disposition for your cars, and they can be promptly routed to the correct facility when damaged. Under DDCT, the car owner receives a disposition request from the railroad via email, indicating which AAR rule is in effect. The car owner can easily check the FUR database and designate the desired repair location. Since AAR Rule 1 requires routing instructions within two days of notification, this easy

A new level of visibility into damaged and defective cars and responsive feature is a huge improvement. Previously, railroads had to wait for instructions sent through a patchwork of emails, faxes and phone calls. For this system to work effectively, make sure you maintain accurate and up-to-date information including contact information in FUR. Let’s talk briefly about repair shops. You want to be sure your repair shops understand the benefits and responsibility of using DDCT. By querying the system they can view the status of inbound cars, which permits the shops to better plan their workflow. They have a responsibility to enter the car-arrival date and a repairs-completed date which feed automatic status updates to car owners and railroads. There is also a module available where shops have the ability to update completed work as it progresses; in turn, shops can update the status of cars in their facilities, giving car owners better ETA estimates for the return of cars to service. To fully benefit, shops must be registered in both DDCT and FUR. If a shop is not in FUR car owners are not able to send cars to those facilities. Repair shops are also required to report cars as arrived at their shop and report repairs complete in DDCT. A complete “DDCT Getting Started Guide for Car Repair Shops” is available at: https://www.railinc.com/ rportal/alf_docs/DDCT/DDCTRepairShopGuide.pdf The guide includes information about how to apply for a repair shop mark if required; register for a single sign-on; request access to FUR and register as a contact within FUR. What if you don’t want to send the car to a repair shop? There may be situations where a car mark owner may receive a Rule 1 notification and not want to send the car to a repair shop. The

car may have been identified for scrap and is currently headed to a dismantling location, or it may be advantageous to let the car continue on to a destination where minor repairs can be accomplished at the load or unload point. In each of these scenarios a specific location must be loaded into the Repair Shop module of FUR so disposition can be furnished back to the railroad utilizing the DDCT system. As of this writing, several options are being explored for providing disposition to a non-shop location within DDCT. Stay tuned for updates from Railinc on this topic. Another advantage of the DDCT system is that railroads have instant access to an estimated depreciated value (DV). The need for scrapping can result from conditions including age and obsolescence, as well as serious damage. DDCT provides all registered parties with the estimated DV of the car, based on information contained in Railinc’s Umler™ system. So even if a car is seriously damaged, triggering an AAR Rule 107 (Major Damage) at an inconvenient time—such as 2:30 a.m. on a Sunday—estimated DV information can be accessed immediately, making it possible to quickly determine if the equipment is worth repairing, or should be dismantled on site. In any event, just as shops should be registered in FUR and have access to DDCT, so should scrap locations. If they aren’t, cars routed for scrapping could be stopped at interchange and held until information is provided manually.

Improved Visibility to Damaged and Defective Cars The DDCT system is integrated with Railinc’s Umler system and The Association of American Railroads’ Early Warning (EW) system which generates Maintenance Advisories (MAs). This enables both railroads and car owner’s visibility to railcars with previously identified defects or damage. Four of the Field Manual Rules pertaining to damaged and defective cars have been mapped to MA numbers. MA 124: AAR Rule 1—Minor Defects that are typically lessee or car owner responsibility. MA 125: AAR Rule 95.A—Minor Damage caused by a railroad. Creates an electronic defect card (paper cards are now obsolete). MA 127: AAR Rule 107—Major Damage typically resulting from a derailment. MA 128: AAR Rule 108—Major Defects not allowed in interchange that are the responsibility of the lessee or car owner. As a registered DDCT user, you will receive notification when a damaged or defective incident is created. The railroads handling the cars and shops identified to repair these cars also have visibility to the damage or defect on a car through both the DDCT and EW/MA systems. This enables more effective/efficient management of any issues pertaining to railcars you own or lease—a vast improvement over the previous system, which relied on paper defect cards and their related manual processes. COAL TRANSPORTER | 41

Miner draft gears provide million-mile protection. Long-Haul Durability Whether it’s a short run from the mine to the plant, or they’re coming cross-country from the Powder River Basin, coal hoppers are put through punishing service day in and day out. Utilizing the industry-proven friction clutch design, combined with durable and resilient spring packages as well as sturdy cast alloy steel housings, our draft gears are built to provide years of trouble-free protection – keeping your cars in service.

Long-Haul Dependability Miner draft gears have consistently demonstrated that their superior capacity actually increases over time, even in the most demanding unit-train service applications. In fact, our draft gears are known to perform as good as or better after prolonged use. Tests have shown Miner draft gears to provide double-digit increases in capacity well after 1,000,000 miles of service.

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Perfecting Railcar Performance

Helpful Functions within DDCT Development of a system as significant and complex as DDCT required years of detailed planning, execution and—most importantly—user involvement. A relatively new method of software development, called the agile process, is now being employed by Railinc. The benefits of this process are apparent by the easy and useful functionality that is available to users. With the agile process, new DDCT software was quickly tested with users, making it possible to modify, rethink and even do away with new components very early in the development process. The result is cheaper, faster and better development. Development was overseen by a cross-functional Technical Advisory Group (TAG) of subject matter experts with representation from Class I railroads, shortlines, and car owners. Key DDCT attributes that are of high value to car owners include: Easy and flexible searches. Multiple criteria (i.e. rule type, status, initial/number, wild card, etc.) can be used to find any incident. Uniformity. DDCT provides a single place for disposition of all industry events, replacing the individual “silo” approaches previously required by each railroad. The system also puts all scrapping authorizations (AAR Rule 108) under a single roof and makes it possible to accept/reject settlement offers quickly (Rule 107). Analysis and auditing. Data is being stored and will be held for seven years. Visibility. Shop queries permit car and shop owners to better track an entire event with more accurate predictions of arrival dates on cars moving inbound for repairs. Speed. Notifications are sent to car owners when events happen in DDCT, permitting quick response if necessary.

Enhancements Are on the Way Overall, DDCT has been a tremendous improvement for the industry since it was launched in January. Of course, nothing is perfect, and Railinc works with users and the industry to identify and develop improvements. One concern expressed by car owners is the increased number of email messages with DDCT. The good news is that this is the result of faster and more ac-

curate notification of events. Nevertheless, the volume of messages—particularly for minor defects under AAR Rule 1—can be overwhelming. Email “clutter” will, in part, decrease when shops, car owners and railroads track and close incidents as soon as they are resolved. Railinc is working to develop additional ways that email can be kept to a minimum. Another concern is that repair facility types are not identified in FUR. Future enhancements will capture more detail so that users can determine if a facility performs repairs, dismantling, storage, etc. as well as its capacity and specializations. As the industry accumulates experience with DDCT, Railinc is developing new releases continuously. There have been three releases as of this writing (February, April, and July), with more releases planned in the future. DDCT enhancements in the planning stages (but not yet scheduled for specific implementation) include: • Addition of DV calculation worksheets with actual depreciated values provided by car owners • Parent/child mark management capabilities • Umler delete/restencil support • Car owner administrative update capability Now that DDCT is established it provides a platform for additional functionalities which could include: • Incident edit capabilities • Incident auto-close capabilities

• Centralizing JIC/Alt JIC Rule 107 Damage—estimates, endorsement, etc. Updates envisioned for FindUs.Rail include: • Identify repair facility capabilities and capacities • Identify additional disposition locations (cleaning facilities, storage locations, etc.) • Capacity indicators This article has covered many of DDCT’s highlights. For regular DDCT users, Railinc provides significant and detailed resources that will help you make the most effective use of this powerful tool. And even if things seem to be going along quite well, you should check in periodically with Railinc to learn about recent and upcoming enhancements that will improve management of damaged and defective cars in your fleet. Get in touch by any of the following means: email: csc@railinc.com Web: www.railinc.com/ddct Phone: (877) 724-5462 The launch of DDCT earlier this year was a significant improvement for everyone who manages rail cars, including owners and users of coal cars. In addition to the immediate benefits, the system will compile a database showing what repairs have been done to a car, when they were done, and which shop performed the work. This information will be available to registered users and will remain with a car for its serviceable life. s COAL TRANSPORTER | 43

NCTA 2011 Operations & Maintenance Conference / Review

2011 Operations & Maintenance Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada | June 13-15, 2011

n attendee arrived at the opening night reception of the annual NCTA Operations & Maintenance Conference held at the Hyatt Regency Lake Tahoe in Incline Village, Nevada looking quite somber. “You know, this place was really hard to get to” the East Coaster said seriously. After a short pause, a smile crept across his face. “But, it was so worth it”. And “worth it” it was. The speakers were knowledgeable and engaged. The topics covered were timely and important to attendees. The networking opportunities were plentiful and the camaraderie evident. The food was tasty and calorie free (you wish). The staff was friendly and attentive. The golf course was challenging and the golfers stylish. The lake was clear and blue, the mountains snowcapped, and the sun shone over each and every event.

The conference began with the private car owner roundtable which was restructured this year into distinct morning and afternoon sessions. In the morning session utility car owners met in a traditional roundtable setting. In the afternoon they were joined by all NCTA members including leasing organizations, car manufacturers and suppliers. As always the goal is to provide Roundtable sessions educational and informative to members while at the same time maintaining a forum condusive to open discussion of issues members may have concerning their coal car fleets. Ultimately this roundtable was open to more members than every before thus maximizing both the exchange of information and the available expertise to resolve issues. O&M Chairman John Casto and Program Chairman Rich Kotan presided over the general conference sessions on Tuesday and Wednesday. The latest in inspection techniques and maintenance standards, along with information on

component life cycles and performance were areas of concentration in the program. Technology was also a major focus with presentations on railcar tracking using GPS, telematics hardware and data integration, detector technology, and comprehensive equipment performance monitoring. The NCTA dinner was an outdoor cookout on the Lakeside Cottage Green allowing those in the conference sessions all day to enjoy several hours of the venue’s exquisite alpine lake setting. Attendees and guests had an opportunity to catch up with old friends, meet newcomers to the industry and to swap stories about the adventures they had taken in the area. Some drove around the entire lake. Others explored specific places like Emerald Bay containing Lake Tahoe’s only island, enjoyed the view from the top of the gondola at Heavenly Valley in South Tahoe or took in a bit of history at the Emigrant Trail Museum near the Donner Pass in Truckee. The final event of the conference was the annual golf tournament held at the Championship Course in Incline Village. The lake views from this beautiful course were amazing as were the dapper knickers of tournament organizer Mike Gray! s

skey

McClo ent Director Mike m na ur To d an y ra Mike G golf event kick off the annual 44 | COAL TRANSPORTER

Executive Director To m Canter with wife Judy and grands on Chase Riley

Tom Sedarski

Glenn Stoner

Mike Johnson, here with wife Anita, was honored for his service to the O&M Committee

Jerry Barnaby

Jessica Marks, Lisa Te

rill, Amanda Marks

Jim and Dianna Lynn COAL TRANSPORTER | 45

dtable is a unique forum The Private Car Owner Roun ploring best practices. for problem solving and ex

Pat Whelan, John Casto, Bo b Pokorski, and Jerry Christianson

DeWayne Bradford and Steve Dobies Scott Williams, Todd Weir, Jerry Barnaby, and Joe Lehmann

Art Lewis and Bruce Fogg

Kevin Waite and Deonne Ta

ylor-Waite

Marcus and Danielle Yancey

2011 SPONSORS Platinum

Gold

FreightCar America / FreightCar Rail Services Progress Rail Services

The Greenbrier Companies New York Air Brake Wabtec Corporation

46 | COAL TRANSPORTER

Silver

Lanyards

A. Stucki Company Ellcon National Lexair, Inc. Maxeefish Miner Enterprises TrinityRail

Enserco Energy

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AAR Interchange Rules / Rule 91

Field Manual of the AAR Interchange Rules

Rule 91 Overview By Ed Strelecky, AVP Client Services, RAS Data Services

ervice Interruption fees through AAR car repair billing were introduced to the freight rail industry in a Solicitation of Comments AAR Circular Letter (C-10293) dated April 4, 2006, and were a part of the freight rail industry’s continuing effort to promote the Advanced Technology Safety Initiative (ATSI); however, ground work was actually initiated as early as the summer of 2005 with the request to ensure that guidelines were in place to adequately capture the time to perform repairs on line of road where the nature of the condition does not permit the continued operation of the train safely. It was anticipated that such situations would be infrequent, but there were cost implications that differed substantially from those occurring when repairs were made at a repair track.

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The proposal was met with much controversy as comments were received from various entities including the Private Car Owners Alliance (PCOA) and the North American Freight Car Association (NAFCA). It was widely felt that service interruption for bad order cars has been an ongoing cost to the handling line and that these costs are already imbedded in the cost for rail service via the Uniform Railroad Costing System (URCS) calculations, and therefore this additional fee created two revenue sources for the same event: revenue from the shipper paying the freight charges and revenue (or more accurately, the reduction of overhead) from the car owner as a result of the service interruption. The AAR responded that URCS is a tool used by the Surface Transportation Board (STB) to determine if railroad prices may be subject to review by the STB. Train delay costs are currently included in the URCS costs, and if they were recovered from car owners, they would net out of the system and no longer be included. Car repair costs that are recovered from car owners are not in the UCRS costs. This area remains controversial to this day. Another area of concern was that the railroads are doing less frequent pre-departure inspections, thus allowing more cars with defects to leave the terminal. It was stated that railroads are regulated by the Federal Railroad Administration (FRA), which requires that specific mechanical inspections be performed, and the Committee has no information suggesting that railroads do not comply with these obligations. Nonetheless, stops for line of road repairs are occasionally made, and the new rule is simply addressing those “infrequent” events. Rule 91 was implemented via AAR Circular Letter (C-10416) dated December 1, 2006, with an effective date of January 1, 2007. It provides for a service interruption cost recovery for repairs made on line of road associated with an in-transit car component failure where the nature of the condition does not permit the continued operation of the train safely. Rule 91 was deemed consistent with car repair billing principles, which permit recovery of repair related costs with no element of profit. Three items were identified and studied as having additional costs associated with line of road component failure: The costs associated with a train delay (AAR Job Code 4456) – 2.743 hours. These costs include the train stop cost, the train crew cost, the locomotive cost, and the freight car cost. This does not include the associated system train delay costs of any trains following

48 | COAL TRANSPORTER

Ed Strelecky, RAS Data Services that train which may also be delayed. The costs associated with setting a car out and picking it up (AAR Job Code 4457) – 1.075 hours. This is the average cost to switch the car out and switch a car back into a train. The costs associated with jacking a car on line of road (AAR Job Code 4459) – 1.724 hours. This is the average cost to set up and raise/lower the car for repair. As a comparison, the repair track jacking charge is .829 hours The repair set out location could be on the line of road or at a terminal, so set out and pick up costs may or may not be incurred. Also the following definitions were added to the AAR Field Manual as a result of Rule 91 implementation: Line of Road – Outside yard limits. Service Interruption – A train delay that is caused by a specific AAR condemnable defect that causes a train delay on the line of road.

were taken challenging the additional service interruption charges when the causing condition was an EW, MA, or EHMS alert. Effective January 1, 2011 - Rule 91. 2. H in the Office Manual now reads:

• Causing condition is a non-billable item. Example: straightening safety appliances on car. • Causing condition is a handling line defect. • Causing condition is an end air hose failure. • Causing condition is an end air hose separation. • Causing condition is a broken coupler knuckle or knuckle pin. • The handling line slows the train speed to move it safely to terminal without stopping the train. • Causing condition had been identified at AAR condemnable level by an Early Warning, Maintenance Advisory, or EHMS alert prior to the line of road failure.

‘H. Causing condition had been identified at AAR condemnable level by an Early Warning, Maintenance Advisory, or EHMS alert prior to the line of road failure and the car had been released from a shop or repair track with the alert still existing. (Documentation or reference to the specific alert must be provided by car owner when billing exception is taken). As a back office agent for a sizeable fleet, RAS Data Services, Inc. does pay and/or challenge a substantial number of Rule 91 Service Interruption charges. Perhaps the time has come to revisit some of the volumes that were thought to be so infrequent an event as to pass off as almost inconsequential. As history has taught us, the voice of concern from the private railcar equipment owner needs to be unified and loud when addressing railcar operating issues. s

Since the 2007 implementation of Rule 91, there have been many train delay charges and many challenges by the car owners to these charges; therefore, the process of taking exception to train delay charges under the provisions of AAR Rule 112 in the Office Manual was restricted in AAR Circular Letter (C-11353) dated December 21, 2010. At issue was the extent to which exceptions

As history has taught us, the voice of concern from the private railcar equipment owner needs to be unified and loud when addressing railcar operating issues.

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As a way to adequately define when a service interruption occurs as a chargeable event, the Committee felt that the easiest and best approach was to define when the charges do not apply. Service Interruption allowance is not allowed when: • A train is within the yard limits of the departure terminal.

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Infrastructure / Lower Mississippi River

Additional Midstream Capacity for Associated Terminals

New Cranes Honor Long Time Employees

s a sign of the company’s faith in the strengthening midstream market for export and import cargoes on the Lower Mississippi River, Associated Terminals has again added to its crane fleet in 2011 with the addition of two new floating cranes. The first, the derrick barge “K. ROBERTSON” was delivered in March and immediately went to work at the company’s Chalmette, LA operations (mile 86.5 to 90.5 AHP). The second, the derrick barge “F. WALKER” was delivered in July and joined the A.T. fleet in Reserve, LA (miles 136 to 141 AHP). Both cranes were named in honor of the company’s long time Senior Operations Managers. Kerry Robertson has been part of the Associated Terminals team for nearly a decade, joining the company upon the acquisition of Gulf Coast Dockside. Frankie Walker joined the company in 1997 when A.T. purchased its first two stevedoring cranes from International Marine Carriers. The K. ROBERTSON and the F. WALKER are Gottwald GHPK 6400B mobile harbour cranes capable of rotating 360 degrees on a pedestal. They have 164 feet of boom, 125 tons of counterweight and the operator cab sits 72 feet above the water. They are each powered by a 1,490-hp Cummins engine. The barges measure 250’x72’x12’ and were built by Conrad Industries especially for this application. They have a load capacity of 2,000 pounds per square inch on the deck, built-in entry stairwells on each side and two 10,000-gallon fuel tanks. Each crane is equipped with two Hyundai loaders and two Hyundai trackhoes featuring Tier III low-emission engines and sealed wiring systems to prevent corrosion. Additionally, the cranes are outfitted with two Piener buckets (24 yard and 40 yard) and one 11-yard grapple bucket. Gottwald has become the crane manufacturer of choice for Associated Terminals because of their heavy duty capacity and efficient operations. The K. ROBERTSON and F. WALKER are the company’s fifth and sixth Gottwald cranes added to their fleet since 2007, giving A.T. the youngest, most modern crane fleet on the Lower Mississippi River. The company operates ten floating cranes at twelve midstream berths between miles 56 and 141 AHP, giving shippers the opportunity to work their cargoes in the specific area that gives them the best overall economics. s 50 | COAL TRANSPORTER

Education / AEP Teardown

AEP Railcar Teardown Report

Cook Coal Terminal, Metropolis, IL – 5/17/2011 – 5/19/2011 By Jason Echelbarger, American Electric Power

n May 17, 2011 AEP kicked off its first teardown with known mileage and repair history. The private car owners since 2003 at the Cook Coal Terminal in Metropowere able to evaluate which components and component lis, IL. Representatives from major component combinations work well. Railcar inspectors had an opportunity manufacturers, car builders, and private car owners to look at the cars with the component manufacturers to see gathered at the Cook Coal Terminal to inspect six which items need to be inspected based on actual in service aluminum gondola cars used in AEP’s western coal service. performance. AEP will be able to use the inspection reports to These cars typically run from the Powder River Basin to either develop maintenance plans based on actual component wear AEP’s western coal burning generating instead of relying on mileage, and/or stations or to the Cook Coal Terminal service time to determine component Attendee Details for the transloading of PRB coal to life. This will help avoid unexpected barge for AEP’s eastern plants. The cars Company Type # of Attendees component failures and premature comselected for the teardown consisted of ponent replacement. Component Manufacturers 34 1994 – 2008 built cars with mileage Both NCTA Executive DirecPrivate Car Owners 5 tor Tom Canter and Operations and between 250,000 and 1,700,000 miles. Car Builders 6 This event was mutually beneficial for Maintenance Chairman John Casto Inspectors/Other 9 all parties. The component manufacturwere on hand to learn some new things AEP Representatives 9 and to lend their support to this unique ers were given the opportunity to evaluTotal Attendees 63 educational opportunity. s ate their product’s performance on cars

52 | COAL TRANSPORTER

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Calendar of Events 2011

Fall 2011 Presentation of NCTA Scholarship Awards: South Dakota School of Mines & Technology University of Arizona University of West Virginia University of Wyoming David L. Laffere Scholarship Three At-Large Scholarships

2012

September 12-14, 2011 Thirty-Seventh Annual Business Meeting and Conference Brown Palace Hotel, Denver, Colorado November 7-8, 2011 Board of Directors Meeting and Washington Visits December 20, 2011 Receipt at NCTA office of all re-certification forms for the UMLER Fee Waiver for Calendar Year 2012

January 21, 2012 Advertising and Editorial Deadline for Issue 1 2012 of the Coal Transporter Magazine.

June 11-13, 2012 Operations and Maintenance Conference Hershey Lodge, Hershey, Pennsylvania

April 15-18, 2012 Spring General Conference The Greenbrier, White Sulphur Springs, West Virginia

September 10-12, 2012 Thirty-Eighth Annual Business Meeting and Conference Westin Denver Downtown, Denver, Colorado

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Prevent Coal Train Dust Losses with Ecofab’s FlexCover Technology ™ 2011

Ecofab, a world leader in covering bulk materials in railcars, has developed a new technology railcar covering system specifically to suit hopper and gondola railcars in US coal operations. This FlexCover Technology™ will allow fully automatic loading and unloading of railcars without any delay to train operations. The system will work equally well with bottom dump or rotary dump facilities. FlexCover Technology ™ will eliminate coal dust losses from both loaded and empty railcars, and will ensure the delivered quantity and quality of coal with no added water, snow or ice. Independent testing has confirmed the use of covers on railcars significantly reduces wind drag and will provide immediate fuel savings. A solution that is beneficial to mining companies, railroads, power utilities and the community.

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Technology / Electric Vehicles

Electric Vehicles: Driving Down Dependence on Foreign Oil By Haresh Kamath, Program Manager, Energy Storage, Electric Power Research Institute

he last year has seen a remarkable development in the automotive industry: the nationwide deployment, by multiple manufactures, of thousands of plug-in electric vehicles. These electric vehicles use electricity from the grid as their primary energy source, instead of the petroleum-based fuels which have powered most vehicles for the last century. The breathtaking speed of plug-in vehicle introduction raises several questions: will electric vehicles really catch on with consumers? And if they do, will they overwhelm the electric grid that is expected to supply energy to them? To answer these questions, we must begin with an examination of why a shift to electric vehicles might make sense. Most vehicles on the road today derive their energy from an internal combustion engine burning a petroleum-based fuel, such as gasoline or diesel. Gasoline and other petroleum-based fuels hold a great deal of energy, pound per pound. They are easy to handle, and allow quick refueling. Petroleum fuels have been historically inexpensive, and are very widely available. A gasoline-powered car has effectively infinite range, since refueling stations are

56 | COAL TRANSPORTER

found nearly everywhere. In recent decades, various developments have made it desirable to curb the use of petroleum. The pollution created by large numbers of gasoline vehicles, including the so-called criteria pollutants â&#x20AC;&#x201C; ozone, sulfur dioxide, nitrogen oxides, carbon monoxide, particulates, and lead â&#x20AC;&#x201C; eventually degraded the air quality in major cities. More recently, concern over climate change has prompted efforts to reduce carbon emissions. As demand outpaces domestic oil supplies, the need to import large quantities of oil from overseas has become an economic and security concern. The last issue has become an acute issue in the last decade, as the rapid expansion of worldwide demand and depletion of worldwide supply has resulted in rapidly climbing prices. Governments and consumers are now increasingly interested in alternative transportation fuels.

Whatâ&#x20AC;&#x2122;s Old is New Again

Electricity is one such alternative fuel, and indeed electricity has been an important option since the earliest days of the automobile. Electric vehicles competed

with gasoline vehicle (and steam vehicles) in the 1900s, before the excellent range and low operating cost of gasoline and diesel vehicles made them the dominant transportation technology of the 20th century. In the 1970s, oil shortages as well as regional initiatives to reduce pollution briefly revived the interest in electric vehicles, but a number of technical obstacles prevented their widespread commercial deployment. Chief among these was the absence of a battery that could provide the range, operating life, and low cost necessary to compete with conventional gasoline-powered vehicles. When the price of oil fell in the early 1980s, interest in the electric vehicle waned. In the 1990s, automakers once again explored electric vehicles in response to government mandates designed to reduce the emission of criteria pollutants. The automobile industry did not recognize electric vehicles as an opportunity, however, seeing them as a niche market at best. Governments eventually removed the mandates in response to industry pressure. A number of external developments began to gradually change this picture. The most important was the electronics

revolution, which put portable devices such as cell phones, laptop computers into the hands of consumers. The manufacturers of these devices required newer high-energy battery technologies to power their products for reasonable lengths of time. Substantial development effort went towards developing these new technologies, resulting in the commercialization of the lithium ion battery. As demand for portable consumer electronics increased, the production capacity for lithium ion batteries expanded, and prices dropped. By the early 2000s, prices were low enough to attract the attention of smaller electric vehicle manufacturers such as Tesla, who used lithium ion batteries to produce a roadster with over 200 miles of range and acceleration that could take it from 0 to 60 in less than 4 seconds.

The Hybrid is Born

In the meantime, mainstream automobile manufacturers had learned that substantial markets existed for vehicles that achieved high fuel efficiencies through the use of new technologies. In 1996, Toyota introduced the Prius, a hybrid

electric vehicle, in Japan. Unlike previous electric vehicles, the Prius continued to use gasoline as the primary fuel, but augmented the internal combustion engine with a battery and an electric motor. Internal combustion engines operate best at a steady rate, but because cars have to be able to accelerate from a stopped position, the engines in conventional cars are designed to operate at variable rates, reducing the efficiency. In a hybrid electric vehicle, the battery provides a good part of the acceleration from the stopped position, so that the internal combustion engine can be designed to run continuously at a more efficient operating point. The battery also allows regenerative braking – the battery absorbs energy during braking, and the re-delivers that energy to the wheels during acceleration, improving the overall fuel efficiency of the vehicle (as well as reducing wear on the brakes). Other automobile manufacturers largely ignored hybrid electric vehicles until gas prices began to rise in the early 2000s. As consumers looked for more efficient transportation options, hybrid vehicles like the Prius began to attract

attention. Not only were the hybrids themselves popular vehicles, but the aura of eco-friendliness and high tech engineering gave their manufacturers an “aura” that helped them sell other vehicles. Other automobile manufacturers, desperate to catch up, searched for ways they could demonstrate their own engineering prowess by applying vehicle electrification. It is this combination of factors – high oil prices arising from increased global demand, the availability of superior battery technology, and a new commitment from vehicle manufacturers towards electrification technologies – that has resulted in the rapid deployment of plug-in electric vehicles today. These new vehicles go a further step beyond conventional hybrids like the Prius, which simply use the battery to improve the efficiency of the gasoline engine. Plug-in vehicles take advantage of high-energy lithium ion batteries to store electricity from the grid, and then use that electricity as the primary fuel. This allows drivers to take advantage of the relatively low cost of electricity, equivalent to about 75 cents a gallon of COAL TRANSPORTER | 57

gasoline. And this time, the automotive manufacturers are pushing the change: Where only three hybrid electric vehicle models were released between 2000 and 2004, over twenty major automobile manufacturers have announced one or more plug-in vehicles to be released between 2010 and 2014.

The New Hybrid – Electricity Leads and Gasoline Back-ups Even among plug-in vehicles, there is some differentiation. Some vehicles, like the Tesla Roadster and the Nissan Leaf, are pure electric vehicles. These vehicles are driven only by electricity, and if the

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battery is depleted, they must be taken to a charging station or charged at home. Since charging takes several hours, this can lead to some inconvenience to drivers. Plug-in hybrid electric vehicles (sometimes abbreviated as PHEV) and extended range electric vehicles (EREV), in contrast, use electricity as the primary fuel, but also have gasoline-powered backup engines incorporated into the powertrain. The gasoline engine takes over when the battery is depleted, allowing the driver to continue driving the car as though it were a conventional hybrid. The Chevy Volt, one example of an EREV, provides up to 40 miles of pure electric range before the gasoline engine kicks in. Since most drivers drive fewer than 40 miles a day, the car functions primarily as an electric vehicle. Many Volt owners have driven for thousands of miles before filling the gas tank!

Recharging Options and Opportunities Charging infrastructure has always been a key concern for electric vehicles. We already have a well-developed electric grid that delivers electricity to our homes and businesses. But will the grid be able to meet the increased electricity supply required to charge electric vehicles? And what special equipment will be required to charge these vehicles? It’s expected that electric vehicles will charge mostly at night at the owners’ residences, with a smaller number of vehicle additionally charged at the workplace, and a very small number of vehicles charging in public places. The new generation of plug-in vehicles can charge directly from conventional 110 V outlets, albeit at a relatively slow rate. This means that charging can be accomplished anywhere that electric power is available, without special infrastructure beyond the plug that comes with every vehicle. Most drivers will prefer a faster charge rate, which can be achieved with a simple wiring upgrade that allows them take advantage of the 240 V power already delivered to their homes. The total charging energy drawn by a typical electric vehicle over the course of the year is less than one-sixth of the electricity drawn by a typical residential home. There is plenty of generation available to cover this additional load – particularly since most charging is expected

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to occur at night. In there truly be any fact, electric vehicles reduction in carbon can actually help to emissions simply alleviate issues related by trading gasoline to excess generation vehicles for electric at night, which typivehicles charged from cally forces utilities to such a grid? operate their baseload To answer this power plants at a question, we must lower, less efficient consider not just the operating point. energy consumption It’s also importaking place in the car, tant to remember that but the energy used plug-in vehicles won’t throughout the entire appear on the roads fuel delivery infraall at once. Automostructure, from “well This pamphlet is available at bile manufacturers to wheels.” It’s imporhttp://my.epri.com, document will need time to tant to include the develop and build energy input required #1023161 their products, and for petroleum refining, initial production runs will be relatively for instance, and the carbon emissions small as they learn how to best work with associated with it. In gasoline vehicles, the technology. Consumer adoption will there are emissions at the refinery and also gradually ramp up over the course of at the tailpipe; for plug-in vehicles, several years. Even in the most aggressive emissions occur at the power plant, but adoption cases, it will take many years for emissions at the tailpipe are small, if sales of electric vehicles to replace a subpresent at all. stantial portion of the over 250 million Remember also that today’s gasovehicles in the U.S. line vehicles are not designed to run at At the same time, plug-in vehicles their most efficient point, but at a point are likely to be adopted in some parts that provides a reasonable compromise of the country faster than in others. The between efficiency and the requirements electric grid in those parts of the country for variable power during acceleration. will see the effects of plug-ins first, and This means that gasoline vehicles promay require modest upgrades to acduce a relatively large amount of carbon commodate the increased energy flow. for the energy they use. Electric drive Utilities across the country are presently vehicles are much more efficient and conducting analyses to understand how effective at delivering variable power their own grids will be affected by the (which is why the manufacturing sector introduction of plug-in vehicles, and are has continuously increased its level of making appropriate investments to be electrification over the past century). prepared for them. Utility power plants can also be operMany of these effects will be mitiated at high efficiency, because of their gated through “smart charging” methods. size and relatively steady operation. This These techniques use communication allows electric vehicles to deliver a subbetween the vehicle and the utility to stantial reduction in carbon emissions manage load peaks during the evening relative to conventional vehicles, even if hours and spread charging evenly across the electricity is generated from coal. the night, reducing the effect on the grid Plug-in vehicles represent a while ensuring that the vehicle is fully substantial opportunity for improving charged for the driver in the morning. energy efficiency, reducing reliance on foreign oil imports, and reducing the operating costs of transportation. EPRI Efficiency and Emissions – has recently published a pamphlet The Big Picture called Plugging In: A Consumer’s Guide The environmental benefits of electric to the Electric Vehicle, which has more vehicles are often questioned, since the information about plug-in vehicles, grid itself is largely powered by fossil how they work and where they make fuels such as coal and natural gas. Can sense. s

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STATS AT A

GLANCE

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Average US Retail Electricity Prices (c/kWh) 14.00

12.00

10.00

c/kWh

8.00

6.00

4.00

2.00

0.00 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Residential

62 | COAL TRANSPORTER

Commercial

Industrial

All Sectors

Source: Energy Information Administration: Historical 1990 through Current Month Retail Sales, Revenues, and Average Retail Price of Electricity by State and by Sector

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NCTA / Member Sound-Off

Member Sound-Off

The Coal Transporter asked members and associates to offer their opinions on a current topic in the coal industry.

It is hard to believe that this issue represents the start of the Coal Transporter’s sixth year of publication. We’ve come a long way from the two page quarterly Western Flyer to the full sized national magazine that the Coal Transporter is today. We asked NCTA members and associates to help us to reflect back on the last five years and look to the next five by taking a short survey.

Here is what people had to say about the Coal Transporter… 50%

“It is well designed, colorful and has interesting, relevant articles!” - Jan Figgins, American Electric Power

40%

“I scan other magazines; I read Coal Transporter” - Chris Harkey, TrinityRail

How Coal Transporter Editorial Rates Against Other Industry Publications

30%

“Great publication - always look forward to reading it and learning more about the industry.”

- Barbara O’Neill, Levin Richmond Terminal

“This is an excellent magazine that will in time rank near the top of the various industrial publications in circulation today.”

20%

10%

- Michael Smith, Rhino Energy 0%

“Keep it coming and including subjects of coal transportation interest, e.g., coal dust developments, railcar maintenance, other utilities’ coal transportation programs.”

Much Somewhat About Somewhat Much Better Better the Same Worse Worse

- Dan Gray, Entergy

50%

“Great easy to read informative industry publication”. - Jeffrey Griffin, Flagship Rail Services, LLC

“You do a very good job of collecting data and creating interesting articles for the coal transportation industry.” - Kevin Johnson, Nebraska Public Power District

40%

How Coal Transporter Graphics Rate Against Other Industry Publications

30%

“The news pieces about members and their companies are always great to read.”

20%

“Listing more general statistics such as coal movements by carrier/ increases and decreases from previous years would be a good tool to include. Facts like planned or announced lock closures would be helpful. Perhaps just a two or three page section on facts or stats such as these.”

10%

- Emily Regis, Arizona Electric Power Coop., Inc.

- Kevin Larkin, Alliance Coal, LLC

“Add in a little more industry statistic reviews for coal transportation, Iet more opportunity for EIA and other transportation or coal organization to provide good viz bang statistics for people to think about how important coal and its transportation is to the US economy.” - Jack Reid. Seminole Electric Cooperative, Inc.

Overall Balance

% Should be more technical

64 | COAL TRANSPORTER

balance % Good between personal and technical

include % Should more human interest

Much Somewhat About Somewhat Much Better Better the Same Worse Worse

Coal Transporter Shelf Life ■ Less than a month ■ 1-6 months ■ 7-12 months ■ Over a year ■ Until the next issue arrives

Reflections / Ron Stovash

Ron Stovash

Hitting the High Notes of a Forty Year Career

“

believe my career in the coal industry started the day I was born. Obviously, I did not know that then, but my family genes and history would eventually lead me to an exciting and rewarding life in coal mining.” Ron Stovash was born in Canonsburg Hospital in Canonsburg, Pennsylvania, but his parent’s home was actually in Coverdale, Pennsylvania, now part of Bethel Park in the South Hills area of Pittsburgh. Coverdale was a small company mining community that supported the Pittsburgh Terminal No. 8 Mine that opened in 1919. The mine, commonly known as the Coverdale Mine, operated until 1948. Ron’s grandfather was born in 1880 and started his mining career at the age of 8, hand loading coal with his father in Krakow, Poland. In 1906, in pursuit of a better life, he boarded a ship bound for the United States. He continued his mining

Ron with recording artist Bobby Vinton

66 | COAL TRANSPORTER

career throughout Western Pennsylvania and finally settled in Coverdale. Ron’s grandfather was a union worker, not a management representative, who became a Member of the Pittsburgh Coal Mining Institute in 1925, the same year the Institute was organized. Ron’s father started his mining career in the Coverdale Mine at the age of 15, hand loading with his father just as his father had done. Ron points out that a very interesting fact about Coverdale occurred on March 11, 1927 as reported in the New York Times. The first armored car robbery in U.S. history took place when a Brinks truck heading towards the Coverdale Mine about a mile away was attacked. Paul Jaworski and his “Flatheads” gang destroyed the road with dynamite to steal the mine payroll of $104,250 and then lose the many pursuing posses.

On Main Street in Coverdale, Bethel Park, there is a granite monument with the names of the original families of Coverdale and a picture of the mine building, to honor all those who started the community and worked at the mine. “I am proud that my family namesake is inscribed there to memorialize our family connection to the coal industry and the miners themselves.”

Prelude to a Career in Coal

In 1957, while at the Allegheny County Fair in South Park outside of Pittsburgh, Ron’s parents signed him up to take accordion lessons. “What boy at the age of nine wanted to play the accordion?” However, after beginning to play, Ron acquired a real passion for the accordion. At his grandfather’s house on every major holiday, he was required to play his accordion as his grandfather played the violin, his father the washtub bass, his uncle the banjo, another the washboard, another the spoons, as the adults drank Iron City or Duquesne Beer and Four Roses Whiskey. He entertained throughout the Pittsburgh area, initially for charitable organizations, nursing homes, and private functions. Later, after his father took up the drums, they formed a band and played for hundreds of weddings, dances, clubs, organizations, and special events. The band, named the “Deltones”, played for Pittsburgh Coal, Harmar Coal, and Mathies Coal Companies dances at such places as the Oakmont County Club. It was at one of the Consolidation Coal and Pittsburgh Coal Companies Christmas lunches that Ron’s brother Bob, who at that time was an accountant with the Pittsburgh Coal Company Division of Consolidation Coal, introduced him to Dave Werner, the President of the Pittsburgh Coal Company Division. “Bob asked Dave to give me a summer job as I was in my first year of electrical engineering at the University of Pittsburgh. Dave said if I wanted to be a shiny-ass engineer, there was no job available, but if I wanted to work underground as an hourly coal miner, I had a job. It was 1966

and seemed like a great opportunity since my genes, family roots, growing up in a coal patch, playing my accordion for various coal company functions, and maybe most of all, the challenge, passion, and respect I acquired over the years for coal mining and its people, inspired me – I accepted.”

Orchestrating a Harmonious Life The following summer, Ron started his formal coal career at the Montour #4 Mine of the Pittsburgh Coal Company Division as an UMWA hourly worker. “I don’t think my parents really wanted me to go underground and work in the mines at that time. The underground mining method employed was conventional mining utilizing drilling and airdox blasting. There were still a lot of accidents and fatalities in the industry. Remember, this was well before the Coal Mine Health and Safety Act of 1969.” Ron continued working summers and holidays underground at the mines while attending college and upon graduation from Pitt with a degree in Electrical Engineering, accepted a full-time position with Consol as a production engineer at the Renton Mine near Monroeville, PA. Ron progressed through numerous positions from section foreman, project engineer, to engineering assistant to the Senior Vice President of Consol. In 1974, at the request of Joe Kristoff, then President of the Pittsburgh Coal Company Division, he went to the Westland Mine as a shift foreman, put the new longwall in service as longwall coordinator, and became General Assistant Mine Foreman. In 1977, Ron was promoted to Superintendent of the Laurel Mine in Somerset County, Pennsylvania and in 1979, General Superintendent of the Shoemaker Mine near Wheeling, West Virginia. “I remember accepting the job at Shoemaker on a Monday in the office of President & CEO Bobby Brown. He ask me when I could start and I said the following Monday. He said you need to start tomorrow. I never went back to my home or office in Somerset, Pennsylvania ever again after leaving his office. I went directly to Wheeling, West Virginia.” Ron recalls the numerous work stoppages, strikes, and violence that faced the coal industry during the ‘70’s. “There were times when I thought I would get beat up or shot trying to cross a picket line at one of the mines – it was scary. Tensions were very tough between management and the UMWA. The entire industry has come a very long, needed,

Paul Jaworski and his “Flatheads” gang destroyed the road with dynamite to steal the mine payroll of $104,250 and then lose the many pursuing posses. COAL TRANSPORTER | 67

and positive way since then.” After advancing to the position of Technical Assistant to the Vice President – Moundsville Operations, Ron attended the Executive Management Program at the University of Illinois. Ron was promoted in 1987 to Vice President – Ohio Operations that included the newly acquired assets of the Quarto Mining Company from North American Coal Company. Responsibilities included CONSOL’s underground and surface mines in eastern Ohio with 135 and 105 cubic yard stripping shovels. Ron commented,” This was a unique experience to be associated with these extremely large surface mining machines that had a long and outstanding history in CONSOL.”

On Tour with CONSOL

In 1990, Ron was transferred to head the Fairmont Operations in West Virginia, and later was added the responsibilities for the Blacksville Operations and the Potomac Operations acquired from Island Creek Coal Company. In 1996, Ron was named Vice President – Northern West Virginia Operations with responsibilities for eight underground coal mines, preparation plants, related facilities, and staff departments. “During my career, I have seen the transition from conventional mining to continuous mining in the ‘60’s, the surge of longwall mining with shields and shearers versus chocks and plows in the ‘70’s, increased automation and the move to low-sulphur coal in the “80’s, advanced technology, larger horsepower equipment, and conversion from rail to belt haulage in the ‘90’s.” Then in 1999, CONSOL Energy President & CEO, Brett Harvey, asked Ron to transfer to the marketing department. “This was a tough move for me at that time. I had spent roughly 32 years in operations and liked that side of the business. I felt comfortable. But, in the end, I did what Brett asked of me and transferred to Vice President – Marketing Services.” In his new capacity, Ron had responsibilities for distribution, transportation, contact administration, technical marketing services, river division, docks, and terminals. With Ron’s role for overseeing CONSOL’s river operations and terminals, he was a member of the United States Marine Transportation System National Advisory Council and was appointed by the Secretary of the 68 | COAL TRANSPORTER

Coal mining runs deep in the Stovash family, Ron’s grandfather (left) started mining at the age of eight, hand loading coal with his father in Poland. Army to serve on the United States Inland Waterway Board. It was during this time that Ron helped form the Eastern Coal Transportation Association (ECTA) that later merged with the Western Coal Transportation Association to become the present day National Coal Transportation Association (NCTA). “This was an evolving time for the coal companies’ transportation sectors. We in the East, at that time, needed a stronger transportation voice, especially with the railroads and the Surface Transportation Board (STB). The ECTA, with the help of the other founding members, made this happen. However, we in the ECTA quickly realized that if we were going to have a bigger voice, we needed to join with the WCTA. I am very proud to have been part of that process and a director of the NCTA. Some of the friendships I have

made in those organizations I still consider my dear friends today. That is why I still participate at times in various meetings of the organization.” Later, while working under Pete Lilly, CONSOL Energy’s Chief Operating Officer, Ron’s responsibilities in the marketing department expanded to include international, domestic metallurgical, US Southeast, and Central Appalachian sales as Vice President – Sales & Marketing. Shortly thereafter he also assumed operating responsibilities for Central Appalachia and CONSOL’s joint venture mine in Australia when promoted to Senior Vice President. Ron was promoted in 2005 to Senior Vice President – Planning and Administration with responsibility for corporate planning, engineering, exploration, environmental affairs, closed

“There were times when I thought I would get beat up or shot trying to cross a picket line at one of the mines – it was scary.”

- Ron Stovash

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Ron with Ben Statler at the Kentucky Derby operations, material and supply chain management, and research and development. Here he was directly responsible for initiating and negotiating three separate complex and difficult acquisitions. “The Marrowbone joint venture acquisition through bankruptcy was extremely complicated and included a very significant number of parties. There were many times that I thought the deal would never be consummated, but persistence prevailed. The start-up of the Miller Creek Complex was a major milestone for CONSOL after many years of leasing the reserves. And finally, the acquisition of Mon-River Towing proved to be a significant value to CONSOL Energy’s river division operations.” He participated at the World Coal Institute (WCI) meetings in Brussels, Belgium and the International Energy Agency (IEB-CIAB) meetings in Paris, France. “The international exposure at these meetings gave me a real global perspective of the worldwide coal industry challenges.” In 2006, Ron returned back to mining as Senior Vice President – Coal Operations and serving as CONSOL’s management representative in three joint mining ventures. He was directly responsible for initiating two additional complex joint venture partnerships, one in Pennsylvania and one in the West. In January 2007, Ron retired from CONSOL Energy after 39½ years of 70 | COAL TRANSPORTER

Honoring the original families of Coverdale

service. “When I first started my career with Consolidation Coal Company, retirement seemed so far in the future that I could not imagine how far, but after I retired, it seemed as though I had just started yesterday. I have been very fortunate to work with a dedicated and outstanding group of miners, management, and executives over the years at CONSOL.”

What Retirement? Encore!

Within a week of Ron’s retirement, a former CONSOL executive and friend, Ben Statler, asked Ron to become the President & CEO of PinnOak Resources, the company Ben acquired from US Steel Mining. “I had no future plans when I retired from CONSOL Energy and the opportunity to be a President & CEO of a coal mining company was the epitome of my coal mining career. So I accepted the position. It was a rewarding and exciting position at PinnOak.” By mid summer 2007, Cleveland Cliffs, now Cliffs Natural Resources had an offer to purchase PinnOak Resources. Ron stayed on with Cleveland Cliffs after the purchase and through the integration of PinnOak into Cleveland Cliffs. Then at the end of November 2007, Ron retired again with over 40 years of experience. “I had a unique opportunity to work for an iron ore and coal mining company under Chairman, President & CEO Joe Carrabba.

Along with the various state coal associations and related organizations that Ron served on, he also was appointed by two governors to the West Virginia Public Energy Authority and elected Chairman, served as a member and Vice Chairman of the Electrical Engineering Visiting Committee at the University of Pittsburgh, a member of the Mining Engineering Visiting Committee at West Virginia University, a member of the American Institute of Mining, Metallurgical and Petroleum Engineers (AIME), and Society of Mining Engineers (SME). In 2009, Ron was elected a Distinguished Alumni of the University of Pittsburgh Swanson School of Engineering and is listed in Who’s Who for demonstrated leadership and industry achievement. Ron not only served his industry, but his community as well. He continues to serve as a trustee and Vice President of the Board of the West Virginia Public Theatre and has received a number of philanthropic awards for his outstanding service, a member of the Board of the Greater Morgantown Charitable Trust, a member of the Board of Directors of the Monongalia Health System and General Hospital, and a member and Secretary/ Treasurer of The Old Timers Club in the coal industry. In addition, Ron is a member of a number of committees for all of these Boards. “I am grateful for all the opportunities I have had in my

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working career and wanted to give something back, my leadership and managerial expertise, to the community and the people it serves.” After a 2009 meeting with a West Virginia Congressman and Senator in Washington, DC, Ron contemplated running for the US House of Representatives. “It was very obvious to me that both of these individuals were not in touch with the majority of the views of the people I knew in North Central West Virginia. I had a rather heated debate with both the Senator and the Congressman on the issues of healthcare and cap and trade. It was my impression that they were supporting the views of their own political party and their own political career, versus the views of their constituents who elected them to office. As a result, I decided to run for the US Congress to unseat the incumbent. After many lengthy discussions with my wife Stephanie concerning how nasty political races are, I decided not to run, but to support a candidate to unseat the incumbent. In the end, the incumbent was defeated and we are better off in our representation and government.”

Ron and Stephanie Stovash

The Music Plays On

Shortly after Ron became a Superintendent, he retired from his musical career and his band. “I thought that it was not becoming of a Consol Superintendent to be performing out in clubs and other functions. Although, from the time I

started playing the accordion, I always wanted to take Myron Florence’s place on the Lawrence Welk Show. It was not just because I had a crush on the Lennon Sisters, anyone of them for that matter, but it was because I truly loved playing and entertaining with the accordion. I did get the next best thing, performing with Bobby Vinton twice, once with the West Virginia Symphony, and performing at the 25th Anniversary of the West Virginia Public Theatre starring Tony Orlando. This was truly a highlight of my musical career.” From time to time, Ron still entertains, many times with his wife Stephanie who dances in a senior dance tap group, The String of Pearls, at various nursing and retirement homes, Veterans Hospital, and other community and charitable functions. The String of Pearls have nicknamed Ron their “Pearl Daddy”. “It’s like coal mining, it is in your genes and family history, and it is hard to give it up.” “I owe a lot to my parents and my two brothers who guided and helped mold me, including those first Consol managers and executives who further defined my work ethics and leadership. My

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brother Bob, who first introduce me to get my first job, worked for CONSOL Energy for 40 years and finished his career as a Vice President in the sales department. We had the opportunity to work together for a few years when I first moved to the sales department. That was a memorable experience.” Ron and his wife Stephanie still live in Morgantown, West Virginia and since last year, purchased a second home in Naples, Florida where they spend most of their extra time. Stephanie also had a connection to the coal industry. Her parents started Mt. State Bit Service Company that sold surface drilling bits to the mining industry and later expanded to perform the drilling and blasting for mining and construction companies throughout six states. Stephanie and her brother continued managing Mt. State Bit Service after their parent’s retirement until the company was sold in 2007 to an international drilling and explosive company. Ron’s children Kim and Ronnie, and Kim’s husband Michael, all work for CONSOL Energy, so the coal family history lives on. Ron and Stephanie have two grandsons and with Ronnie’s wife Jean expecting, they are looking forward to a third grandchild in January. “I am proud of the fact that my kids all got jobs on their own; I did not intervene for them. I realize that my brother Bob, myself, and the Stovash name and reputation helped, just like all the sons and daughters of miners and supervisors that I gave an opportunity to work at CONSOL because of the work history of their father or mother.” Ron still keeps in contact and socializes with many of his life long friends from the coal industry. “The relationships I made throughout my coal industry career are very much a part of my extended family.” Much of that is made possible through the various organizations, like the NCTA, and clubs that many of his active and retired coal colleagues participate. Last year, Ron gave a speech at the Denver Meeting of the NCTA and was able to see many old friends. Ron actively stays up to date on the coal industry and is doing a limited amount of work and consulting. ”I believe the challenges the coal industry had when I first started in 1967, and those during my nearly 41 year active career, were as severe and threatening as those the industry faces today. I am confident, based on the industry’s past performance and organizations like the NCTA, the coal industry will solve those challenges in the future.” s

THE VIEW FROM THE CABOOSE

The humo sometime rous s serio , sometim us ra es mbl of be st frie ings nd Pete and A s nn.

By Pete Moss & Ann Thrawsite Ann: Hi Pete! Long time, no see. What have you been up to?

with the USA Network. But I definitely agree, you are a character.

Pete: I just got back from the Operations and Maintenance Conference held in Incline Village on Lake Tahoe.

Pete: There are still a few of us old coal characters left but I do see a lot of new member companies and younger folks that I guess don’t want to do without both social security and energy at the same time.

Ann: Really? How was it? Pete: It was awesome. I love all that talk about wheels and bearings, WILD detectors and truck hunting. R.B. always brings video of engines crashing into each other or railcars smashing into walls at the TTCI test facility. Krunch! When he places the wave files from the acoustic bearing detectors, I like to play “name that defect”. I try to do it in five ear piercing screeches or less. Ann: You are such a child. Pete: Well lassie, it is a challenge retaining my childish ways. The economy is so bad that I heard that 7 of 10 houses on Sesame Street are in foreclosure. Not only that, but Dr. Seuss’s heirs were forced to rewrite one of his classics. I’m sorry, Green Eggs and Spam just doesn’t do it for me. Ann: Oh, you think you are so funny. Pete: Maybe I am prone to a wee bit of exaggeration from time to time, but never about how much I learn and the great people that I meet at a NCTA event. If I happen to be lucky enough to pick up a foldable Frisbee from A. Stucki, well that’s just a winwin. Advertising for them, fun for me! The NCTA is all about the win-win. I think they got an award for that along with the Union Pacific and the BNSF a few years back.

Ann: The NCTA has added a dozen members already this year and it’s only July. I hear that one was quite impressed by the magazine which has been around for five years already. To me that seems amazing. It seems like only yesterday that you and I first put pen to paper in that inaugural issue. Pete: And we have been getting wittier by the issue. Ann: That’s debatable. I do enjoy writing this column with you though Pete. It helps sometimes to take a step back, well in your case, several steps back, and look at an issue from a simple point of view. Pete: No problem. My friend “Jameson” and I are happy to help. I hear the magazine is going to be using a lot more pictures so I hope they don’t take our space. Ann: More pictures, why’s that? Pete: Haven’t you heard, the economy is so bad that a picture is now only worth 200 words so they have to use more. Ann: Unbelievable. s

Ann: Hopefully we can all help them keep up the tradition. Continuing to use low cost coal for electric generation is certainly a win for the economy. I heard the 37th Annual NCTA Fall Meeting and Conference will focus on how to manage this message and communicate the other benefits of coal. Working together on transportation issues is a big benefit to the industry and we are good role models for the politicians. Pete: I’m sure they’ve come up with a hoity-toity theme by now. I love how they have “Conferences with Characters”. I think I inspired them with my overall Pete Moss-iness. Ann: You a mean timely and succinct theme for their Conferences with Character, no “s”? I think you have the NCTA mixed up

www.armstrongcoal.com COAL TRANSPORTER | 75

NCTA Membership List A. Stucki Company AKJ Industries Alliance Coal, LLC Alliant Energy Corporate Services Alltranstek LLC Alpha Coal Sales Co., LLC Ameren Energy Fuels and Services American Electric Power American Railcar Industries, Inc Amsted Rail Arch Coal Sales, Inc. Arizona Electric Power Coop.,Inc. Arizona Public Service Arkansas Electric Cooperative Associated Electric Power Cooperative Associated Terminals LLC Basin Electric Power Cooperative Benetech, Incorporated Bosch Rexroth Corp., Pneumatics CANAC, Inc. CDG Engineers, Architects, Planners Chevron Mining CIT Rail City Utilities of Springfield Cleco Cloud Peak Energy Colorado Springs Utilities CONSOL Energy Inc. Consumers Energy Company CPS Energy Crown Products Dairyland Power Cooperative David J. Joseph Co. Dayton Power & Light Company Detroit Edison Drummond Coal Sales Inc.

Duke Energy Dynegy, Inc. Ecofab Australasia Ellcon-National, Inc. Energy Publishing, LLC Enserco Energy Entergy Services, Inc. The Empire District Electric Company Excel Rail Management LLC Exelon Power Team Exponent, Inc. First Union Rail FirstEnergy Flagship Rail Services, LLC Florida Power & Light Company FreightCar America GATX GE Rail Global Barrier Coatings Global Coal Sales Global One Transport, Inc. Grand River Dam Authority Great River Energy The Greenbrier Companies Helm Financial Corp. Heyl & Patterson ICG LLC Idaho Power Company Jim Walter Resources, Inc. Kansas City Power & Light KCBX Terminals Co. Kiewit Mining Group Inc. Kinder Morgan Terminals Lower Colorado River Authority Lexair, Inc. Locomotive Service, Inc. Luminant Energy Macquarie Rail Inc.

Martin Engineering Maxeefish LLC MEAG Power Metro East Industries, Inc. MidAmerican Energy Company Midland Railway Supply Midwest Generation Midwest Industrial Supply, Inc Miner Enterprises Inc. Minnesota Power Mitsui Rail Capital, LLC Momar Inc. Muscatine Power and Water Nalco Company Nebraska Public Power District New York Air Brake Newmont Mining Corp Northern Indiana Public Svc Norwest Corporation NRG Energy, Inc. NV Energy OG&E Electric Services Oglethorpe Power Corp. Omaha Public Power District Ontario Power Generation Otter Tail Power Company PacifiCorp Patriot Coal Corporation Peabody CoalSales Pincock Allen & Holt Platte River Power Authority Portland General Electric PPL EnergyPlus, LLC Precision Roller Bearing Co. Progress Rail Services, Corp QMASTOR Limited Rail Link Railroad Financial Corporation

RAS Data Services RESIDCO Rhino Energy LLC Salt River Project Seminole Electric Cooperative, Inc. Southern Company Generation Standard Steel Strategic Rail Systems Strato, Inc. Structural Composites of Indiana Taggart Global, LLC Tampa Electric Company TBS Mining Teck Coal Limited Tenaska, Inc. Tennessee Valley Authority Texas Municipal Power Agency The Timken Company Transportation Services Inc Trinity Rail Tri-State G&T Association TUCO/NexGen Coal Services Tucson Electric Power Company UtahAmerican Energy, Inc Wabtec Corporation We Energies Westar Energy Western Farmers Electric Western Fuels Association, Inc. WestRail Westmoreland Coal Sales Company White Energy Coal North America Wisconsin Public Service Corporation Wood Mackenzie Xcel Energy Zinkan Enterprises, Inc.

Index to Advertisers AEP/Cook Coal Terminal. . . . . . . . . . . . . . . . . . 19 AKJ Industries Inc.. . . . . . . . . . . . . . . . . . . 38-39 Alpha Coal Sales Co, LLC. . . . . . . . . . . . . . . . . 61 Amsted Rail Company Inc.. . . . . . . . . . . . . . . . 71 Arch Coal, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . 33 Armstrong Coal. . . . . . . . . . . . . . . . . . . . . . . . 75 Associated Terminals, LLC . . . . . . . . . . . . . . . . 51 CANAC Railway Services Inc.. . . . . . . . . . . . . . 58 Cloud Peak Energy. . . . . . . . . . . . . . . . . . . . . . 47 Crown Products & Services, LLC. . . . . . . . . . . . 13 Donohue Railroad Equipment Inc.. . . . . . . . . . . 12 Dynamic Railroad Consulting . . . . . . . . . . . . . . 60 EcoFab Covers International, Inc.. . . . . . . . . . . . 55 Electro-Motive Diesel, Inc. . . . . . . . . . . . . . . . . 65 Excel Rail Management LLC. . . . . . . . . . . . . . . 49 76 | COAL TRANSPORTER

FreightCar America . . . . . . . . . . . . . . . . . . . . . . 5 GATX Corporation. . . . . . . . . . . . . . . . . . . . . . . 73 Global Barrier Coatings, Inc.. . . . . . . . . . . . . OBC The Greenbrier Companies. . . . . . . . . . . . . . . . 22 Helm Financial Corporation. . . . . . . . . . . . . . . . 48 Ingram Barge Company. . . . . . . . . . . . . . . . . . 17 Jim Walter Resources, LLC. . . . . . . . . . . . . . . . 74 Lexair, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . IFC Locomotive Services, Inc.. . . . . . . . . . . . . . . . . 23 Macquarie Rail, Inc.. . . . . . . . . . . . . . . . . . . . . 54 Maxeefish LLC. . . . . . . . . . . . . . . . . . . . . . . . . 27 Midwest Industrial Supply. . . . . . . . . . . . . . . . . 69 Miner Enterprises Inc.. . . . . . . . . . . . . . . . . . . . 42 Momar Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . IBC Nalco Company. . . . . . . . . . . . . . . . . . . . . . . . 59

NexGen Coal Services, Ltd.. . . . . . . . . . . . . . . . 16 Osmose Railroad Services . . . . . . . . . . . . . . . . 29 Progress Rail. . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Rail Link, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 63 The Railway Educational Bureau. . . . . . . . . . . . 19 Railway Supply Institute. . . . . . . . . . . . . . . . . . 72 Railroad Friction Products. . . . . . . . . . . . . . . . . 53 Slover & Loftus LLP. . . . . . . . . . . . . . . . . . . . . 28 Structural Composites of Indiana. . . . . . . . . . . . 11 Taggart Global. . . . . . . . . . . . . . . . . . . . . . . . . . 3 TBS Shipping Services Inc.. . . . . . . . . . . . . . . . 58 Thompson Hine LLP. . . . . . . . . . . . . . . . . . . . . 23 Westmoreland Coal Sales Company . . . . . . . . . 10 West Rail Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 26 Western Fuels Association Inc.. . . . . . . . . . . . . 37

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AFTER

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