August 2016 Railway Age

RailwayAge

August 2016 | www.railwayage.com

Serving the railway industry since 1856

MUSCULAR

METRICS

Why CN is “the best operator in the space”

GRINDING FOR THE BEST PROFILE HIGH-TECH BUFF/DRAFT CONTROL TRANSIT FOCUS: SEATTLE

RailwayAge

august 2016

visit us at www.railwayage.com Features Class I Focus: CN

19

M/W Focus: Rail grinding

27

TTCI rail grinding

31

Force Management

35

C&S Focus: Monitoring

37

Transit Focus: Seattle

41

News/Columns From the Editor

2

Update

10

Watching Washington

16

Short Line Perspective

17

Financial Edge

48

Departments Industry Indicators

4

Industry Outlook

6

Market

8

People

43

100 Years Ago

43

Meetings

43

Products

44

Advertising Index

45

Professional Directory

46

Classified

46

19 6

41

On the Cover CN has the lowest operating ratio among Class I railroads.

Photo: CN Railway Age, USPS 449-130, is published monthly by the Simmons-Boardman Publishing Corporation, 55 Broad St., 26th Fl., New York, NY 10004. Tel. (212) 620-7200; FAX (212) 633-1863. Vol. 217, No. 8.

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August 2016 Railway Age 1

From the Editor William C. Vantuono

Editorial and Executive Offices Simmons-Boardman Publishing Corp.

55 Broad Street, 26th Fl. New York, NY 10004 212-620-7200; Fax: 212-633-1863 Website: www.railwayage.com

Forced access? Don’t bet on it

S

o-called “forced access,” the railroads’ name for the semi-official regulatory term “reciprocal switching,” appears to be gaining tractive effort.

The Surface Transportation Board last month issued a Notice of Proposed Rulemaking on updated regulations “to improve the availability of reciprocal switching,” an action the railroads have been anticipating for more than a year.

The proposed rules “allow a shipper to gain access to another railroad if the shipper makes certain showings,” STB said.

STB said its NPRM “is an outgrowth of a petition for a rulemaking submitted by The National Industrial Transportation League in July 2011, which the Board is granting in part.” The 2-1 decision, written primarily by Democrat Chairman Daniel R. Elliott III, drew a dissent from Republican Ann Begeman and a separate expression in concurrence from Democrat Deb Miller.

The proposed regulations “create an avenue for the Board to impose a reciprocal switching arrangement,” STB said. A shipper seeking reciprocal switching must show that the arrangement is “practicable and in the public interest” or “necessary to provide competitive rail service.” The STB said it would “make its findings based on evidence presented by the shipper and the railroad.”

As expected, the battle lines have been drawn, with the AAR’s Ed Hamberger firing the first shot: “Forced access is an illconceived approach that compromises the efficiency of the entire network by gumming up the system through added interchange movements, more time and increased operational complexity,” etc., etc.

The reality is that the final outcome may not be so bad, and it may take a long time to get there, according to Contributing Editor Frank N. Wilner: “First, the STB rejected the NITL approach as too draconian and a threat to long-term rail revenue adequacy. Second, the final rule could well be decided by a majority that has yet to be nominated and 2

Railway Age

August 2016

RailwayAge

confirmed to the STB—an STB also possibly led by a new chairman, depending on who wins the White House in November.

“The STB seems to have purposely delayed a final rulemaking (in fact, it has been five years in the making) until after the November elections and a new Congress is seated in January. So who will cast the final votes?

There are two vacant seats on the STB that may be filled (but could remain vacant well into 2017 or later). As for the current lone Republican, Ann Begeman, she must depart the STB Dec. 31 if not re-nominated and later confirmed by the Senate. The only given now is that Elliott and Deb Miller will be at the STB in 2017 to cast votes.

“As for the vacant seats, it is most unlikely the Senate will confirm the two new members—even if nominated—this year, as the Senate Republican majority would prefer to allow a new President (hopefully to them, a Republican) to make the nominations.

Depending on the White House race, the new STB majority next year could shift from the current two Democrats (including a Democratic chairman) and one Republican to a Republican majority of three (including a Republican chairman). Or, the STB could stumble along with just two Democratic members for a long time—Elliott and Miller—if nominations and confirmations do not occur. Roger Nober was a lone STB member for many months.

“What remains a crucial outcome to be determined for railroads and shippers is the pricing of access were it to be allowed in a final decision—a price set not by the marketplace, but by a majority seated at the time of that vote. Adding to the current confusion is that railroads or shippers— or both—will challenge some aspect of the final rule, or all of it, before a federal appellate court. That could delay finality into 2018 or later. So a lot of dust must settle before this fat lady sings.”

ARTHUR J. McGINNIS, Jr., President and Chairman JONATHAN CHALON, Publisher jchalon@sbpub.com WILLIAM C. VANTUONO, Editor-in-Chief wvantuono@sbpub.com BEN VIENT, Managing Editor bvient@sbpub.com Contributing Editors: Roy H. Blanchard, Alfred E. Fazio, Lawrence H Kaufman, Bruce E. Kelly, Ron Lindsey, Ryan McWilliams, David Nahass, Jason H. Seidl, David Thomas, John Thompson, Frank N. Wilner Creative Director: Wendy Williams Associate Graphic Designers: Nicole Cassano, Aleza Leinwand Corporate Production Director: Mary Conyers Production Manager: Lily Man Production Director: Eduardo Castaner Marketing Director: Erica Hayes Conference Director: Michelle Zolkos Circulation Director: Maureen Cooney Western Offices 20 South Clark Street, Suite 1910, Chicago, IL 60603 312-683-0130; Fax: 312-683-0131 Engineering Editor: Mischa Wanek-Libman mischa@sbpub.com Assistant Editor: Jennifer Nunez jnunez@sbpub.com International Offices 46 Killigrew Street, Falmouth, Cornwall TR11 3PP, United Kingdom Telephone: 011-44-1326-313945 Fax: 011-44-1326-211576 International Editors: David Briginshaw, db@railjournal.com Keith Barrow, kb@railjournal.com Kevin Smith, ks@railjournal.com Customer Service: 800-895-4389 Reprints: PARS International Corp.

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Industry Indicators SHORT LINE AND REGIONAL TRAFFIC INDEX

TRAFFIC ORIGINATED CARLOADS MAJOR U.S. RAILROADS

FIVE WEEKS ENDING JULY 2, 2016

by Commodity Grain Farm Products ex. Grain Grain Mill Products Food products Chemicals Petroleum & Petroleum Products Coal Primary Forest Products Lumber and Wood Products Pulp and Paper Products Metallic Ores Coke Primary Metal Products Iron and Steel Scrap Motor Vehicles and Parts Crushed Stone, Sand, and Gravel Nonmetallic Minerals Stone, Clay & Glass Products Waste & Nonferrous Scrap All Other Carloads Total U.S. CarLoadS

JUNE ’16 107,069 3,545 46,848 29,433 148,209 53,996 373,761 6,375 16,401 28,632 31,795 21,399 44,424 18,486 91,042 109,211 21,935 40,470 20,593 31,401 1,245,025

JUNE ’15 94,087 3,854 48,706 28,796 148,796 69,411 446,955 7,561 17,590 30,351 38,318 20,143 47,202 19,526 90,286 116,938 25,023 40,651 17,686 26,832 1,338,712

% CHANGE 13.8% -8.0% -3.8% 2.2% -0.4% -22.2% -16.4% -15.7% -6.8% -5.7% -17.0% 6.2% -5.9% -5.3% 0.8% -6.6% -12.3% -0.4% 16.4% 17.0% -7.0%

340,706

380,165

-10.4%

1,585,731

1,718,877

-7.7%

CARLOADS

Chemicals Coal Crushed Stone / Sand / Gravel Food & Kindred Products Grain Grain Mill Products Lumber & Wood Products Metallic Ores Metals & Products Motor Vehicles & Equipment Nonmetallic Minerals Petroleum Products Pulp, Paper & Allied Products Stone, Clay & Glass Products Trailers / Containers Waste & Nonferrous Scrap All Other Carloads

COMBINED U.S./CANADA RR INTERMODAL MAJOR U.S. RAILROADS

FIVE WEEKS ENDING JULY 2, 2016

by Commodity TRAILERS CONTAINERS TOTAL UNITS

JUNE 2015 - 360,806 280,000 290,000 300,000 310,000 320,000 330,000 340,000 350,000 360,000 370,000 Copyright © 2015 All rights reserved.

Railroad employment, Class I linehaul carriers, JUNE 2016 (% change from JUNE 2015)

JUNE ’15 144,210 1,227,950 1,372,160

% CHANGE -25.2% -3.3% -5.6%

3,988 285,321 289,309

7,142 301,995 309,137

-44.2% -5.5% -6.4%

Transportation (train and engine) 58,180 (-18.17%)

111,891 1,472,658 1,584,549

151,352 1,529,945 1,681,297

-26.1% -3.7% -5.8%

Total employees: 152,426 % change from JUNE 2015: -11.55%

CANADIAN RAILROADS

COMBINED U.S./CANADA RR TRAILERS CONTAINERS TOTAL COMBINED UNITS

Source: Monthly Railroad Traffic, Association of American Railroads

average weekly U.S. Rail Carloads: all commodities (not seasonally adjusted) Average Weekly U.S. Rail Carloads: All Commodities 350,000 340,000 330,000 320,000 310,000 300,000 290,000 280,000 270,000 260,000 250,000 240,000 230,000 220,000

2014

2015

2016

Jan Feb Mar Apr May Jun

Railway Age

August 2016

Maintenance of Equipment and Stores 28,732 (-8.22%)

Professional and Administrative 13,805 (-5.78%)

Maintenanceof-Way and Structures 36,280 (-6.05%)

Source: Surface Transportation Board

2009

Jul Aug Sep Oct Nov Dec

Data are average weekly originations for each month, are not seasonally adjusted, do not include intermodal, and do not include the U.S. operations of CN and CP. Source: AAR

4

Executives, Officials, and Staff Assistants 9,286 (-6.42%)

Transportation (other than train & engine) 6,143 (-8.71%)

2006 (peak year)

% CHANGE 5.9% -22.6% -14.7% -1.4% 8.5% 7.4% 1.8% -43.5% -7.6% 20.6% -34.4% 19.2% -6.9% 11.9% -4.2% 4.4% -3.6%

JUNE 2016 - 348,689

JUNE ’16 107,903 1,187,337 1,295,240

TRAILERS CONTAINERS TOTAL UNITS

ORIGINATED JUNE ’15 43,901 25,733 27,951 10,639 21,632 6,611 9,359 5,392 17,046 8,303 2,763 1,920 18,646 12,418 49,064 9,756 89,672

TOTAL CARLOADS, JUNE 2016 vs. 2015

CANADIAN RAILROADS ALL Commodities

ORIGINATED JUNE ’16 46,503 19,923 23,833 10,488 23,464 7,098 9,532 3,044 15,754 10,012 1,812 2,288 17,363 13,893 47,020 10,189 86,473

BY Commodity

class I employment dropS ON YEAR, BUT STEADY ON MONTH Figures released by the STB show Class I total railroad employment dropped 11.55% in June 2016, measured against June 2015. But total railroad employment remained nearly even compared to May 2016, dropping only .2%. On the yearly comparison, Transportation (train and engine) dropped the most at 18.17%; followed by Transportation (other than train & engine), which dropped 8.71% followed by Maintenance of Equipment and Stores, which dropped 8.22%.

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Industry Outlook

The panamax era has begun in Miami Florida East Coast Railway (FECR) stands ready to handle intermodal containers from the Pacific Rim arriving on the gargantuan ships via the enlarged Panama Canal.

On July 9, 2016, FECR celebrated with its partners the arrival of MOL Majesty, the first “neo-panamax” vessel to cross the expanded Panama Canal bound for PortMiami. The MOL Majesty is part of the G6 Alliance Transpacific PA2 service, originating in Asia.

FECR re-established on-dock

intermodal rail service at PortMiami, allowing import and export cargo to be loaded directly onto or off awaiting trains, linking the port to 70% of the U.S population in four days or less.

FECR can also facilitate the transloading of international freight into fewer domestic containers for inland moves to markets such as Memphis, Chicago, Cincinnati and Dallas.

Shipments from the Pacific Rim rerouted through the now-expanded Panama Canal to eastern seaboard

ports like PortMiami are expected to increase by 10%. FECR expects to grow its share of container traffic transported following the expansion and shift in trade routes.

“FECR has invested in infrastructure and equipment to support multi-modal shipping and global trade into and out of South Florida, and can support neo-panamax vessels such as the MOL Majesty,” said FECR President and CEO James R. Hertwig. “We offer customers a seamless transfer of goods from ship to our on-dock rail facility that allows fast access to 70% of the U.S. population, reaching key Southeast markets of Atlanta and Charlotte in two days.

We were glad to be at the celebration in support of our partner, PortMiami.”

“A new big-ship era is here, and PortMiami and its partners are ready,” said PortMiami Director and CEO Juan M. Kuryla. “The completion of PortMiami’s deep dredge and FECR’s on-dock intermodal rail projects cannot be overstated. PortMiami is now positioned as the most reliable, convenient and efficient global hub on the North American East Coast, serving the world’s leading ocean carriers.”

Miami-Dade County Mayor Carlos A. Gimenez and Panama Canal Authority Administrator Jorge Quijano were among the guests who joined FECR, PortMiami and other partners to welcome the MOL Majesty.

Maryland Purple Line closes $5.6 billion P3 financial deal Maryland Department of Transportation (MDOT), Maryland Transit Administration (MTA) and Purple Line Transit Partners have signed the final financial documents for a $5.6 billion PPP contract to design, build, finance, operate and maintain the light rail Purple Line north of Washington D.C. Purple Line Transit Partners comprises Meridiam as a 70% equity provider, with Fluor Enterprises and Star America each providing 15% of the equity. Meridiam is an investor and asset manager specializing in public and community infrastructure.

Fluor Construction has formed a 6

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construction joint venture to build the line with Lane and Traylor Brothers, while a consortium of CAF USA, Fluor and Alternate Concepts will operate and maintain the line.

CAF USA holds a 20% stake in the operations and maintenance consortium and will supply a fleet of 26 LRVs worth around $200 million for the project.

Purple Line Transit Partners has secured all its financing for the project, including an $875 million TIFIA (Transportation Infrastructure Finance Innovation Act) loan from the U.S. Department of Transportation; $313

million in private activity bonds issued by the Maryland Economic Development Corp., and $138 million from the partners’ own private equity.

The 16.1-mile east-west Purple Line will run from Bethesda to New Carrollton, serving suburbs inside the Capitol Beltway north of Washington D.C. The 21-station line will connect with four branches of the Washington Metro, three commuter rail lines (VRE and MARC), plus Amtrak’s Northeast Corridor. The line will have a mixture of dedicated rights-of-way and street running. Passenger services are due to begin operating in early 2022.

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IEM Corp.: No bad vibes for Sound Transit Troy, N.Y.-based International Electronic Machines Corporation (IEM Corp.) has attained “Substantial Completion” status for its installation of a state-of-the art Vibration Monitoring System for Sound Transit’s light rail system in Seattle, Wash.

Substantial Completion is a status indicating that the customer has certified that the installed system along with its related software operates in a manner that meets all design performance specifications.

North America St. Louis Loop Trolley: Acquired two W-Class electric trolley cars built by Melbourne and Metropolitan Tramways Board between 1923 and 1956 to refurbish for a Spring 2017 opening.

Illinois Department of Transportation (IDOT): The first two Siemens SC-44 Charger diesel-electric passenger locomotives have arrived in Colorado for the start of testing at TTCI. IDOT awarded Siemens a $228 million contract in 2014 to supply 32 of the 125-mph units for use on Amtrak services in the states of Illinois, California, Michigan, Missouri and Washington.

The locomotives are being assembled at the Siemens plant in Sacramento, Calif., and the first units are due to be accepted by IDOT in December.

Brightline (Florida): A Cummins QSK95 prime-mover has been installed 8

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August 2016

into its first diesel-electric Charger locomotive at the Siemens manufacturing facility in Sacramento, Calif..

the rollout of its 1,000th locomotive, three-and-a-half years after the start of production at the facility.

Brookville Equipment Corp.: Shipped its third of four Liberty Streetcars on order to the City of Dallas and Dallas Area Rapid Transit (DART), marking the completion of the first of two vehicles ordered by DART in a contract option exercised in July 2015.

Calgary Transit: The agency’s new fleet of Siemens S200 high-floor LRVs entered service on the city’s CTrain light rail network in time for the annual Calgary Stampede.

Bay Area Rapid Transit (BART): Unveiled its new diesel-powered multiple-unit trains, soon to link Pittsburg/ Bay Point and Antioch down the median of Highway 4.

Transdev North America: Has been awarded a $15.5 million contract by M1-Rail to operate and maintain Detroit’s first modern tram line.

GE Manufacturing Solutions: The plant in Fort Worth, Tex., celebrated

Worldwide Government of Cuba: Signed a €190 million ($215.75 million) loan agreement with the Russian Agency for Export Credit and Investment Insurance (Exiar) for the Cuban Union Railways (UFC) to finance modernization of its locomotive fleet.

Ukranian Railways (UZ) and Bombardier: Pledged to explore jointly producing locomotives in the Ukraine under a memorandum of understanding.

Update Supply Briefs

Two takes on two-person crews

Balfour Beatty Infrastructure and Stadler U.S. win Caltrain contracts Caltrain’s Board of Directors on July 7, 2016 approved $1.25 billion in contracts with Balfour Beatty Infrastructure Inc. and Stadler U.S. Inc. to begin work on the Peninsula Corridor Electrification Project (PCEP).

Balfour Beatty Infrastructure won the design-build contract for the corridor’s electrification infrastructure. Stadler U.S. won the contract for manufacture of high-performance electric multipleunit (EMU) trainsets.

“The award of these contracts marks an important milestone in Caltrain’s 150-year history,” said Caltrain Executive Director Jim Hartnett. “The Caltrain Modernization Program is the most transformative project this corridor has ever undertaken. It offers unique economic, environmental and mobility benefits to the region and it is a key link in a high-speed rail network that will transform the way we think about transportation in California.”

“This long-held vision for the corridor is finally moving forward, and it can’t happen soon enough,” said Caltrain Board Chair Perry Woodward.

Caltrain expects to begin rollout of electrified passenger service in the winter of 2020.

“When complete, the PCEP will help address rapidly growing ridership by allowing the operation of more service that will accommodate more riders,” Caltrain noted. “The project will also significantly decrease vehicle-miles travelled and greenhouse gas emissions throughout the Peninsula Corridor. Additionally, the project lays the foundation for the eventual operation of high-speed rail service that will connect the Bay Area to the rest of the state.”

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T

he Federal Railroad Administration, at a July 15, 2016 hearing regarding the agency’s proposed rule mandating two-person crews, heard two sharply contrasting arguments, one from freight rail management, the other from labor.

Association of American Railroads President and CEO Ed Hamberger, joined by CSX Transportation Chief Operating Officer Cindy Sanborn, Indiana Rail Road Senior Vice President Operations and Development Robert Babcock, Genesee & Wyoming Chief Operating Officer David Brown, and Indiana School of Public and Environmental Affairs Dean and former Office of Information and Regulatory Affairs Administrator John D. Graham, urged FRA to withdraw its two-personcrew NPRM. Transportation Trades Department, AFL-CIO President Edward Wytkind, joined by SMART Transportation

Division National Legislative Director John Risch and BNSF conductor and SMART-TD member Mike Rankin, stated labor’s case for a two-person crew mandate and “a final rule that closes loopholes permitting freight railroads to deploy single-[person] crew operations.”

“The proposed rule is a textbook example of unnecessary regulation,” said Hamberger. “In fact, while perhaps well-intentioned, the proposed rule is actually misguided and will undermine the very goal of both the FRA and the freight rail industry—making a safe rail network even safer. There are no data supporting this proposed rule, and it will provide no safety benefit to railroads, their employees, or the public. With no data showing that one-person operations compromise safety, there is no basis—other than anecdotal storytelling—for enacting a general prohibition on crew size reductions. While the Department of

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Update Transportation is throwing its full support behind development of autonomous vehicles as a way to improve safety on our roadways, it is backing a rulemaking for the industry that goes in the opposite direction and would freeze rail productivity and chill innovation.”

Hamberger pointed out that in its NPRM, “the FRA itself admitted it had no safety data to support the proposal.”

The agency “has not provided data suggesting that one-person crew operations are less safe than multiple-person crew operations,” he noted. “We have said time and time again that the FRA should conduct a fact-based—not emotionally driven—data-gathering process. If a safety risk is identified, then a rulemaking might be appropriate. But we are confident that an independent, objective analysis will conclude that no regulation is needed.”

Hamberger pointed out that Oliver Wyman, “a leading global management consulting firm with worldwide

expertise in railroad operations,” provided the FRA with an analysis of data on single-person operations around the world “that proves railroads can safely operate with one-person crews, and have been doing so for years.”

INDR’s Babcock noted that U.S. railroads using one-person crews “have consistently maintained exemplary safety records. INRD has been safely deploying one-person crews for nearly two decades, and there is no evidence that one-person operations are unsafe.”

John D. Graham told the FRA that its crew size proposal was “one of the analytically weakest regulatory packages [I have] ever reviewed,” among thousands of proposed federal regulations he reviewed in his former post at the Office of Information and Regulatory Affairs.

“There is no demonstration that crew size is a relatively significant factor in determining the number of railroad accidents, injuries and fatalities—or even near misses,” Graham said. “The reader is left

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Railway Age

August 2016

wondering why the agency has focused on this factor, as opposed to the many other factors related to railroad safety.”

ASLRRA opposes a two-person crew mandate. ASLRRA President Linda Bauer Darr testified that the rule “fails to adequately consider the economic impact to [our] small business members. In addition, and more important, there is no evidence of a safety benefit generated by a second crew member in the locomotive.”

“There is no evidence that the proposed rule will address safety challenges in a way that is meaningful and operationally sustainable for our small businesses,” Darr said. “Of the 450 railroads that make up the ASLRRA membership ranks, more than 100 operate with fewer than four operations employees on as little as two miles of track. Margins on many railroads are sometimes thin, requiring them to embrace innovative practices that make them more efficient. We are truly a small-business industry and we do a lot of good work on a shoestring budget. This efficiency is the reason that many small railroads survive today. We operate efficiently and we operate safely. That’s how we make our livelihood and that’s how we keep our people going home safely to their families each night.”

In sharp contrast, TTD’s Wytkind said, “It’s time to put to rest the absurd notion that operating a 19,000-ton freight train with a single crewmember is safe. The American public understands that having massive freight trains travel through their communities operated by one-person crews is a safety menace that should be barred by our government. We need a strong rule from the FRA mandating a certified conductor and certified engineer on all freight trains. Transportation labor has long advocated for a strong federal minimum requiring two crew members on freight trains—a policy that the vast majority of Americans agree with.”

Editor’s observation: Most Americans know little or nothing about railroads and their operating procedures, much less crew size.

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Update Atlanta public to vote on rail in November

The Atlanta City Council has voted unanimously to include a menu of significant Metropolitan Atlanta Rapid Transit Authority (MARTA) transit improvement projects on a Nov. 8

14

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ballot referendum, which if approved would fund many MARTA projects with a half-penny sales tax levy that would raise an estimated $2.5 billion over the next 40 years.

Earlier this year, the Georgia General Assembly passed SB369, a measure that enables voters in the city of Atlanta to vote on a half-penny sales tax levy for MARTA bus and rail expansion projects, as well as other service enhancements. Since then, MARTA officials have collaborated closely with the mayor’s office and the city council to draft a prospective menu of transit projects that will benefit Atlanta residents.

Among the projects that could be built if the referendum passes is a lightrail line that would connect areas of southwest Atlanta, a transit station at Greenbriar Mall, on-demand circulators that operate in neighborhoods, infill stations, additional fixed-bus routes and other enhancements and expansion initiatives that would link to the Atlanta Belt Line, as well as MARTA’s existing bus and rail network.

Canada aims to regulate locomotive emissions For the first time, the Government of Canada is attempting to regulate air pollutant emissions from locomotives. The proposed regulations are being developed under the Railway Safety Act, with a focus on health and the environment.

Transport Canada, the Canadian government’s transportation department, estimates the proposed rail regulations will cost C$162.3 million over 10 years and reduce nitrogen oxide (NOx) emissions by 9.3% and particulate matter (PM) emissions by 8%, creating an estimated savings to healthcare and the environment of more than C$245 million.

“Aligning locomotive emission standards with the U.S. will provide regulatory certainty for the rail industry and improve the efficiency of the North American transportation system,” said Marc Garneau, Canada’s Minister of Transport. “Most

important, these regulations will lead to environmental benefits that protect the health of Canadians and advance green technologies.”

The proposed changes would limit harmful air pollutant emissions, also known as “criteria air contaminants,” from locomotives operated by railway companies under federal jurisdiction through increasingly stringent emission standards and reduced idling. The emission standards set out in these proposed regulations will also align with those of the U.S., which “will improve the efficiency of the transportation system and advance green technologies.”

The Government of Canada has already taken action to reduce emissions from light- and heavy-duty vehicles. Canada has also moved forward with regulations to implement the North American Emission Control Area, which will reduce emissions of key air pollutants from ships,

and the adoption of more stringent NOx emission standards for aircraft.

The proposed regulations support the Government of Canada’s efforts to transition to a greener transportation sector.

Canada and the U.S. are also working together on approaches to reduce greenhouse gas emissions from locomotives under the Canada-U.S. Regulatory Cooperation Council.

Transport Canada invites public comments to these proposed regulations until Sept. 15, 2016.

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Watching Washington Frank n. wilner

Déjà vu once again for intermodal

B

etween the euphoria of achievement and the agony of despair resides intermodal—the rail carriage of trailers and containers that have prior and/or subsequent transport by other modes. It’s no new kid on the block.

Produce-laden wagons riding Long Island Rail Road flat cars headed to New York City made a brief appearance during the mid-1800s, delivering a glance at the future.

A second act opened during World War I, as railroads hauled demountable motor-truck bodies—loaded and locked by shippers and trucked to a railyard for lifting by crane atop 50-foot flatcars. With the freight untouched until reaching the consignee, The New York Times termed the steel boxes “individual traveling safe-deposit vaults.”

The birth of modern trailer-on-flat car (TOFC) occurred during the 1920s—the riding by rail of rubberwheeled highway semi-trailers.

Regulators couldn’t resist crashing the party—“smothering TOFC in the cradle,” wrote historian Albro Martin.

Frowning that not all shippers could partake, and that lower rail rates flowing from reduced freight handling and fewer loss and damage claims threatened the growth of infant long-haul trucking, the Interstate Commerce Commission (ICC) ordered TOFC rates increased.

The 1950s saw intermodal’s third attempt to blossom. Pullman-Standard pioneered uniform intermodal flatcars.

Beginning with the Pennsylvania Railroad’s TrucTrain service, railroads formed Trailer Train Co. (now TTX) in 1955 to acquire, pool, control and manage a free-running intermodal flatcar fleet. Introduced were demountable (from their rubber-wheeled highway chassis) cargo containers,

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August 2016

ushering in container-on-flat-car (COFC)—a superior strategy of stackable containers and low-profile railcars for a lighter-weight, fuel-saving train.

Again, regulators meddled, ordering TOFC/COFC rates increased as an umbrella to protect barge, truck and coastal water carriers’ market share.

Intermodal’s triumph followed the 1980 Staggers Act that partially deregulated railroads and was administered by more free-market oriented regulators who ceased pricing oversight of highly competitive TOFC/COFC. The resulting innovative pricing and service

Railroads must expand capacity and improve service reliability for intermodal to grow. enhancements encouraged doublestack container trains that, with two-person crews, move as much freight as 200 separate trucks and drivers.

Where 168,000 trailers moved by rail in 1955, 13 million trailers and containers now move by train annually, representing half of all rail traffic and 23% of rail revenue. Financial analysts say intermodal is “the key” to keeping rail earnings buoyant in the face of reduced demand for coal and crude oil.

Yet déjà vu again threatens intermodal—but this time regulatory interference could be harshly more damaging as intermodal has a decidedly greater rank in the rail traffic mix and its capital investment needs are substantial.

Today’s threat is from regulators

lowering rate ceilings on so-called captive traffic—chemicals, coal and grain—highly dependent on reliable rail transport owing to fewer transportation alternatives.

Shippers most in need of rail service pay a greater share of fixed costs—the portion of a rate exceeding direct costs.

Market forces conversely dictate that shippers able to substitute all-truck for rail intermodal bear a lower share of fixed costs, or they shift from rail.

Lower intermodal rates still benefit captive shippers, as, absent that traffic, captives would bear an even greater share of fixed costs.

If railroads are to grow intermodal, they must expand capacity, boost train speeds and improve service reliability.

To afford that—and railroad investment requirements exceed those of most industries—railroads must earn their cost of capital.

Intermodal rates cannot be increased to yield a greater contribution to fixed costs. That traffic and its contribution to fixed costs would be lost, as truckers, suffering in a lackluster economy, are slashing their own rates.

Regulatory tamp-downs of captive traffic rates would similarly threaten rail revenue adequacy. In fact, few, if any, captive shippers pay more than the replacement cost of rail infrastructure they require.

As railroads struggle to adapt to a changing global economy, they are more solvent than in past turmoils.

This doesn’t rationalize another déjà vu moment, with regulators imitating Lucy Van Pelt and pulling that football away before Charlie Brown can kick it.

We all know what happens to hapless Charlie—he falls flat on his back.

Should revenue adequacy be dashed, most adversely affected would be captive shippers, whose requirement for reliable rail service is greatest.

Perspective: Short Line & Regional Linda Darr

BRACE Act bolsters 45G tax credit

I

n July 2016, the American Short Line and Regional Railroad Association (ASLRRA) was proud to announce a milestone achievement for our members—the 2,000th co-sponsor on legislation securing a tax credit for capital investment in rail improvements (45G) was recorded.

The 45G Tax Credit, and this year’s extender legislation, the BRACE Act, has been a bi-partisan effort to create and support a private solution to a public problem. Freight railroads are one of the most capital-intensive industries, and Class II and III carriers have an additional challenge: Their lighter-density lines often receive little investment from previous owners and must be upgraded and maintained to safely connect more than 10,000 rail customers to the national Class I rail network. The 55,000 miles of track owned and operated by short lines and regionals often provide the only means to connect communities to the national network, moving one in four cars in origin or destination annually on the U.S. freight rail system.

The 45G offers a way for small railroads to use more of their own capital to invest in operations—to date, more than $1.5 billion, growing from $391.6 million invested in 2004 at the inception of the program to $892.9 million annually by 2013. The tax credit has been good for government as well, as Class II and III revenues grew by 257% over the same time period, producing a 64% growth in tax liability.

In short, the credit has been good for us, good for our customers, good for the U.S. economy, and good for the government.

However, this would not have been accomplished without the support of our 450 railroad members. The power of association allows us each to be better than we would be alone.

Together, we can achieve so much more

than we ever could as individuals and separate companies.

U.S. short lines and regionals began their work together more than 100 years ago. Today, ASLRRA provides a variety of benefits to members, such as: • Educational opportunities provided in many forms, including regional and national conventions, specialty training sessions in partnership with the FRA and other organizations, onsite training provided by our industry experts, and webinars and other forms of online training. In addition, ASLRRA communicates hot-topic information via

A bi-partisan effort created and supported a private solution to a public problem. weekly e-news, our quarterly Short Line Connections magazine, and provides resources on our membersonly sections of our website.

• Advocacy, whether the issue is at the state, U.S. Congress or regulatory level. ASLRRA’s staff of experts and our Washington lobbying team are available and engaged in issues of importance to all of us, including employment practices such as the recent two-person-crew Notice of Proposed Rulemaking, training requirements, documentation requirements, truck size and weight changes, and many more.

• Networking. One of the most important ways associations support members is by providing connections

that drive business between suppliers and railroads, and provide support and mentoring among railroaders.

At ASLRRA, we provide informal network opportunities, as well as more structured groups such as our Young Professionals. In addition, we are preparing to launch online communities so that our members can engage continuously in their areas of interest.

• Working groups and committees, an area for active engagement and problem-solving for the entire membership.

ASLRRA has many committees and working groups that meet regularly to share and develop programs and materials in areas such as Safety and Training, Mechanics, Technology, Human Resources, etc. Specific challenges may also be discussed and solutions developed in special committees, such as our recently formed Carload Business and PTC task forces.

• Buying power. Many associations provide value to their members in the form of special member benefits and discounts. ASLRRA’s recently announced member discount program will provide our members unique benefits with industry-leading service and product providers.

Associations can also be instrumental in raising the water level for everyone, encouraging and rewarding excellence, and providing support for those struggling. A great example of this is ASLRRA’s successful quest to form the Short Line Safety Institute, which focuses on the people part of the railroad industry’s safety culture.

To quote legendary industrialist and Ford Motor Co. founder Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.” Associations like ASLRRA provide opportunities to achieve success at a level that no business could do alone.

August 2016 Railway Age 17

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MUSCULAR METRICS CN is arguably the best-run Class I—not an easy feat in these

By WILLIAM C. VANTUONO, Editor-in-Chief challenging economic times.

CN

A

question for CN President and CEO Luc Jobin: Just how low do you think you can go? We’re of course referring to CN’s operating ratio, the lowest of the Class I railroads. As of the second quarter, it stood at a record 54.5%. CN continues to be among North America’s best-run railroads, weathering the current economic storm and decline in traffic better than most of its peers.

Now under the leadership of President and CEO Luc Jobin, who recently took over for Claude Mongeau, CN is “one of the best positioned to weather industry headwinds,”

in the opinion of Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl.

“With the industry’s best operating ratio and lowest coal exposure, CN should continue to act as a relative refuge for rail investors in a challenging environment. We maintain our long-term favorable view. CN lowered its 2016 earnings growth guidance from mid-single digits to flat relative to 2015. Given the tempered outlook commentary from other Class I’s, CN’s guidance reduction should not come as a big surprise. In absence of favorable demand dynamics, the railroads have sharpened their focus on improving operating August 2016 Railway Age 19

CLASS I focus: CN

CN expects to acquire 90 new high-horsepower locomotives to handle future volumes and improve fuel efficiency.

metrics, and CN has once again proven that it is the best operator in the space. The improvements achieved in all four quarters of 2015 continued in first-quarter 2016, with just about every key operating metric improving year-over-year, including train speed, which was up 8%, and terminal dwell, which was down 15%.”

CN announced in February the details of its 2016 plan to invest approximately C$2.75 billion in rail infrastructure and equipment “to raise network efficiency, support long-term

growth and further strengthen safety.” CN plans to spend approximately C$1.5 billion on track infrastructure “to maintain a highly efficient and safe network,” the railroad said. This work will include the replacement of rail, ties, and other track materials, bridge improvements, and targeted branch line upgrades. CN will invest C$500 million in rolling stock, “allowing the company to tap available growth opportunities and to improve the quality of its car fleet.” CN also expects to take delivery of 90 new high-horsepower locomotives “to handle future traffic volumes and further improve fuel efficiency.”

CN said it plans to invest C$350 million this year in “a range of other key initiatives to drive productivity and to improve service for customers.” CN will also spend C$400 million on the implementation of Positive Train Control (PTC) technology on portions of its U.S. rail network. The railroad said it expects to install all the required PTC hardware on approximately 3,500 route-miles of its network by the end of 2018, with full PTC system operability achieved by the end of 2020, as required by U.S. federal government safety legislation.

How Low Can You Go?

In the midst of what Luc Jobin called “a very challenging volume environment” that saw second-quarter declines

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Railway Age

August 2016

Two photos: William Beecher

BUILDING EXPECTATIONS

CLASS i focus: CN

in revenues and operating income, the railroad posted an operating ratio of 54.5%—a second-quarter record and an improvement of 1.9 points over the prior-year quarter.

“CN continued to face a very challenging volume environment in the second quarter and maintained strong discipline in realigning resources to keep them in line with reduced freight demand,” said Jobin. “Service remained solid, key operating metrics advanced, and we continued to improve our safety record. An important product of our cost-management and productivity focus was a record second-quarter operating ratio of 54.5%.

“We expect the second quarter to be the volume trough for the year. For the balance of 2016, we continue to expect some markets to remain strong, including lumber and panels, automotive, and refined petroleum products, and we anticipate a bumper grain crop in Canada. At the same time, international intermodal volumes are expected to remain challenging while shipments of commodities related to oil and gas development, such as crude oil, frac sand and drilling pipe, are expected to decrease relative to last year. Given these expectations, we reiterate our April 25, 2016, financial outlook of aiming to deliver 2016 EPS in line with last year’s adjusted diluted EPS of C$4.44.”

CN made a number of economic and market assumptions in preparing its 2016 outlook. The railroad says it “now

Intermodal rate gains should increase once truckload capacity begins to tighten again, potentially late this year or in 2017.

assumes that North American industrial production for the year will be slightly negative,compared with our April 25, 2016, assumption that North American industrial production would increase by less than 1%, and assumes U.S. housing starts in the range of 1.2 million units and U.S. motor vehicle sales of approximately 17.5 million units. For the 2015/2016 crop year, the Canadian grain crop was in line with the fiveyear average and the U.S. grain crop was above the five-year average. We now assume that 2016/2017 grain crops in both

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Canada and the U.S. will be above their respective five-year averages (compared with its April 25, 2016, assumption that both Canadian and U.S. 2016/2017 grain crops would be in line with their respective five-year averages). With these assumptions, CN now expects total carloads for 2016 will decrease in the mid-single-digit range, compared with our April 25, 2016, assumption that total carloadings for the year would decline 4% to 5% vs. 2015. CN expects continued pricing improvement above inflation. CN assumes that in 2016 the value of the Canadian dollar in U.S. currency will be in the range of $0.75 to $0.80, and that the average price of WTI (West Texas Intermediate) crude oil will be in the range of US$35 to US$45 per barrel.”

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Railway Age

August 2016

“CN delivered an earnings beat despite a slightly lower-than-expected top line as the carrier achieved a second-quarter record low OR,” observes Jason Seidl.

“The company reiterated its full-year guidance and noted that second-quarter 2016 should be the volume trough. We maintain our constructive view of this high-quality railroad.”

CN’s reported adjusted secondquarter EPS of C$1.11 was 3% below last year’s but ahead of Cowen’s and consensus estimates of C$1.04 and C$1.06, respectively. Though operating income declined 5% year-over-year to C$1.29 billion, it still topped Cowen’s C$1.26 billion estimate and was just shy of the consensus forecast. The 9% revenue declined to C$2.84 billion compares to Cowen and consensus estimates of C$2.96 billion and C$2.97 billion, respectively. The 2% revenue per carload increase was driven by favorable currency and a 2.2% core price increase, a moderation from 2.5% in first-quarter 2016 and 3.0% in fourth-quarter 2015.

“While this deterioration, which is fairly in-line with what we saw at Union Pacific, may raise valid concerns about rail industry pricing, we believe intermodal rate gains should drive pricing back up toward 3% once truckload

capacity begins to tighten again, potentially late this year or in 2017,” says Seidl. “The operating ratio improvement of 190 basis points year-over-year to 54.5% is 290 basis points better than our assumption and 170 basis points better than the implied consensus OR. The impressive margin occurred via a combination of lower fuel prices, cost management efforts, mild weather, and low volume levels, resulting in broadbased service metric improvements.”

CN reiterated its 2016 EPS guidance of C$4.44, “but given the quarterly beat and the largely unchanged outlook, we believe guidance may be a bit conservative,” notes Seidl. “While fuel surcharges may be a headwind in this year’s second half, pension expense is expected to be a tailwind, and volume comparisons ease. Although overall freight demand remains sluggish, a number of bright spots exist. A record grain crop is expected in Canada, and a strong one is expected in the U.S. Meanwhile, South American crops continue to be challenged, which could spur U.S. exports. Other markets that should remain strong include lumber, automotive, and refined petroleum.”

A Smooth Transition

Luc Jobin is the most recent in a succession of top-flight executives who have led CN since the former Crown Corporation was privatized in 1995, beginning with Paul Tellier and continuing with Hunter Harrison and Claude Mongeau.

Citing health reasons, Mongeau stepped down on June 30, 2016, and Executive Vice President and CFO Jobin, who had been running the railroad in Mongeau’s absence, succeeded him.

“I was filled with joy returning to the helm earlier this year, but I gradually came to realize that it is difficult to fulfill such a demanding role given my new condition as a laryngectomee,” said Mongeau. “I sincerely thank the key members of my leadership team and my fellow CN directors for their understanding and support in the circumstances. Facing up to a situation like this inevitably stirs a lot of emotions, but I step down from my role with a deep

CLASS i focus: CN

sense of pride and the firm conviction that CN remains in good hands and has a bright future.”

Mongeau, who joined CN in 1994, was CFO for 11 years and CEO for the past six and a half years. “He has been one of the key architects of CN’s remarkable business transformation from the early days of the company’s IPO in 1995 to its successful expansion as a leading North American railway today,” CN said in the leadership transition announcement.

Jobin became President and CEO and a member of the CN Board effective July 1, 2016. Jobin, 57, joined CN as EVP and CFO in 2009. “CN has greatly benefitted from his very broad business experience over the past seven years as he set out to strengthen the finance, information technology and strategic planning functions,” CN said.

“Although Claude will remain available to help with the transition, we will miss him and his sound leadership dearly,” said CN Chairman Robert Pace. “His bold innovation agenda, centered on true supply chain collaboration and solid customer service, has set CN on a path of sustainable value creation for many years to come. We warmly thank him for that contribution on behalf of all our stakeholders. Luc and the senior leadership team are well-prepared to carry on delivering CN’s agenda of operational and service excellence. With its unique three-coast network, its diversified business franchise and its workforce of 23,000 highly talented

Take the

railroaders, CN remains very well-positioned for the future.”

At the railroad’s second-quarter earnings call, Jobin paid a fitting tribute to his predecessor. “Claude’s career at CN has been nothing short of exceptional, as he has spent the past 22 years working with the likes of Paul Tellier, [former CFO] Michael Sabia and Hunter Harrison to mold this company and help CN achieve great success over the years. As CEO for the past six-plus years, he also has been instrumental in helping us raise our game by evolving our strategic agenda to one of operational and service excellence while positioning CN as a true supply chain enabler. That agenda still resonates today with our customers and helps us gain traction in the marketplace even in difficult economic circumstances.”

Jobin also acknowledged Jim Vena, who retired as EVP and Chief Operating Officer after 39 years at CN. “To both of our former colleagues, we thank them for the part they played,” said Jobin. The leadership team now boasts people like EVP and Chief Marketing Officer JJ Ruest, and Vena’s successor as EVP and COO, Mike Cory, who has 35 years of experience at CN and has worked in every region in just about every aspect of transportation.

“Our bench is deep and we work hard at grooming talented people in the organization to flourish,” said Jobin.

That’s a characteristic of just about any sucessful North American railroad. RA

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A FINE FINISH

Keeping rail in ideal shape extends asset life and enhances safety.

R

eprofiling rail can extend life of a valuable asset, eliminate defects and mitigate derailment risk.

Companies involved in this market are working to provide machines and services that aim at refining a rail’s profile by the most effective means possible.

Harsco Rail

Harsco Rail’s Dynamic Pattern Generation, now available as part of its grinder technology, shelves canned pattern reliance and provides the grinder with a mechanism to orient grinding motors based on measured rail profile, desired rail

By MISCHA WANEK-LIBMAN, Engineering Editor

shape (template) and resulting metal removal effort.

Harsco Rail Senior Director, Engineering and Technology Joe Palese explains that by collecting rail and wheel profile data and applying this simulation technology, Harsco Rail is able to provide customers with desired grinding templates specific to their conditions and operation.

In other developments, Harsco Rail and RailWorks Maintenance of Way, Inc., are working together on a new offering where a special team, led by RailWorks operating personnel with technical support from Harsco, provides grinding services to Class I customers. RailWorks says its goal with August 2016 Railway Age 27

M/W focus: RAIL GRINDING

Orgo-Thermit’s 12-stone, fast-on/fast-off VM8000 grinding vehicle is equipped with four-wheel steering. It can skew its wheels, allowing it to “slide” out of the way of an oncoming train and return to its original position. the service is to provide an additional rail grinding solution that is service oriented and customizable.

Loram

Loram Maintenance of Way, Inc., offers a diverse grinding product line that includes the RG 400 Series Heavy Haul, C44 Series International, RGI International, RGS Specialty and the L Series Mobile/Specialty/Transit.

For Loram, efficiency of its grinding process is critical as traffic density continues to increase.

“We foresee continued movement toward precision in achieving the desired profile and removing the fatigued metal, all while removing as little metal as is required at the fastest speeds possible. Less metal removed artificially through grinding leaves more of the rail head and extends the life of the rail, provided adequate metal is removed to accomplish the objective. Precision is required to ensure 28

Railway Age

August 2016

this then is the case. Less metal removal required allows even faster speeds, fewer passes, less time spent in a block and a lower cost per track-mile. Speeds will continue to be limited by the need to provide precise profiling of the rail, as well as line-of-sight requirements for machine operation,” notes Loram.

Orgo-Thermit

Orgo-Thermit, Inc. (OTI), operates a VM8000, 12-stone grinding vehicle that is equipped with four-wheel steering.

The company says the machine is capable of highay operation, which allows for quick on- and off-track movements, as well as the ability to drive to the grinding site without occupying track time. Additionally, the machine’s dust collection system has been upgraded, and it can skew its wheels allowing it to slide out of the way of an oncoming train and then return to its original position.

M/W focus: RAIL GRINDING

OTI believes finish goes hand-in-hand with keeping operations quiet and can be a delicate balance, especially when it comes to not sacrificing power. The company says its VM8000 leaves tight facets and a scratch mark of three to six microns.

“We can grind directly through crossings and get very close in switches,” says Director of Field Services Randy Dry. “Mounting time is kept to within 25 seconds. This allows the stoppage of traffic, pedestrians, and trains to be kept to a minimum. No longer is it needed to wait for the last train to get into the yard, before departure.”

Vossloh Rail Services

Vossloh Rail Services says rail milling makes it possible for customers to fully refurbish and recover even some of the most damaged rail, thereby extending rail life. Vossloh’s mobile rail milling is a corrective machining technology developed for full rail refurbishment and elimination of major rail flaws. The company says all defects are removed and the cross-profile is restored in a single pass, dependent on the amount of metal removal required. Vossloh also notes that milling does not produce sparks, eliminating all potential fire hazards.

“The perceived drawback of milling is the limited working speeds, but with its high metal removal rate, corrective milling is faster than grinding when full rail recovery is considered,” says Vice President and11:51 General AD -Vossloh RailwayNorth Age 1/2America PG 2.qxp_Layout 1 7/22/16 AM Page 2

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Manager and Vice President Ron Martin. “We see a great opportunity for North American railroads to supplement their present grinding strategies with milling, especially in areas where grinding cannot recover excessively damaged rail or in areas where grinding is too hazardous or not able to be used at all.”

Dormer Pramet

Dormer Pramet says avoiding having to change a rail mill vehicle cutter during a shift change is a safety-enhancing practice.

Dormer Pramet manufactures a variety of cutting tools for the general engineering sector, including disk mills, cartridges and indexable inserts for dynamic rail milling. The company notes that avoiding having to change the cutter of a rail mill vehicle during a shift is a safety-enhancing practice.

The company’s rail milling inserts and cutters have a durability of more than 2.3 miles (3,700 meters), because it found the distance covered during a standard milling shift to be between 1.8 and 2.2 miles (3,000-3,500 meters).

A variety of universal and removable cassettes are also available, with each consisting of a casing, which is identical for left- and right-hand rails, to support both roughing and finishing applications. These cassettes are also used for different rail profiles. Dormer Pramet says when the profile needs to be changed, it is only necessary to replace two out of the eleven inserts in each cassette. RA

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August 2016

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JUST GRINDING AWAY Grinding is an increasing common practice used to prolong the service life of rail.

Loram

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ails and wheels are long-life consumables subject to a continual battle with wear while supporting large loads on a small contact patch. Rail grinding is a common technique to prolong the safe service life of rail by removing rolling contact fatigue (RCF) cracks and other surface irregularities while at the same time maintaining optimal cross-sectional profiles. These profiles can promote beneficial steering forces in curves and increase the speed at which vehicles remain stable on tangent track.

TTCI has determined that target Class I grinding cycles are 25 to 35 MGT between grinds for curves and 50 to 75 MGT for tangents. These cycles correspond to preventive grinding, whereby surface cracks are controlled but not necessarily removed, with frequent visits of the grinder and relatively small amounts of material removed. Over a recent one-year period, 83,442 total miles of track were treated with 117,901 pass-miles of rail grinding for an overall annual average of 1.41 pass-miles per mile ground with production rail grinders.

Based on data including grinder type, average grinder speed, and average number of pass-miles per mile ground, TTCI estimated an average depth of cut at the rail center. These estimates showed that railroads are typically removing more material with each grind cycle than would historically be associated with preventive grinding. This may indicate that optimal rail material removal rates and cycles are evolving over time due to factors such as the increased use of wear-resistant rail steels and top-of-rail friction modifiers.

Some railroads provided TTCI the percentage of grinding pass-miles for different ranges of track curvature, and the

By SCOTT CUMMINGS, Scientist, TTCI, for Railway Age

percentage of main-track miles in each of the curvature ranges.

Curves between 2 and 6 degrees require double the rail grinding effort compared to tangents and low-degree curves in the ranges where wheelset conicity should control steering. Curves greater than 6 degrees require only 88% of the grinding effort compared to curves between 2 and 6 degrees. This is presumably due to a higher wear rate associated with the sharper curvature that naturally controls RCF. Hi-rail inspection vehicles are now used for at least some pre-grind inspections to measure the existing rail profiles and overlay target rail templates. Software automatically generates a grind plan including grind patterns, number of passes, and grinding speeds to ensure that measured rail shape will be transformed to the desired shape. Determining the optimal depth of grind on any particular rail remains somewhat subjective, based on the visual evidence of RCF and/or spalling. The inspection vehicle operator looks at a video camera that shows a close-up image of the railheads. The operator can add a light, medium, or severe assessment of RCF, which potentially adds passes to the grind plan.

Emerging technologies and practices in rail grinding include the use of non-destructive crack depth measurement devices for increased precision in determining the optimal depth of cut, as well as a new generation of rail grinders for increased production. Available grinding options are increasing, with rail milling intended to remove a large quantity of material very infrequently, and high-speed grinding to remove small amounts of material while traveling at or near line speed, thereby minimizing traffic disruption. RA August 2016 Railway Age 31

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Force

Management

All photos: William Beecher

Draft gears, among railroading’s oldest technologies,

By WILLIAM C. VANTUONO, Editor-in-Chief are still undergoing improvement.

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afe train handling and damage prevention during coupling operations rest largely on the draft gears that are the interface between car and coupler, and that manage dynamic forces (buff, or compression, and draft, or expansion). The technology has been deployed for generations, but it’s constantly being improved.

Principal draft gear suppliers are Amsted Rail®, the Cardwell Westinghouse Division of Wabtec and Miner

Enterprises. Independent Draft Gear, an A. Stucki Company, reconditions most Group J and Group M draft gears per AAR Interchange Rule 21. Miner also reconditions its own Group J and Group K gears, as well as the Cardwell Mark 50 and Mark R500, to AAR specification M-901B. As well, Amsted offers remanufacturing and repair services for most types and brands of cushioning units. For example, its ASF®-K design is a gas conversion for spring-return units.

August 2016 Railway Age 35

MECHANICal focus: DRAFT GEARS

OEM Highlights

Miner, a pioneer in draft gear design with more than 115 years of experience, offers a product line that includes numerous high-capacity steel-friction and elastomer-friction draft gears that provide higher capacity for a wide range of service requirements. More than one million Miner draft gears are in service on North American railroads at any given time. According to the company, “tests have shown our draft gears provide double-digit increases in capacity well after one million miles of service.” All Miner draft gears “utilize the industry-proven friction clutch design, combined with durable and resilient spring packages as well as sturdy cast alloy steel housings.”

Miner’s TF-880™ TecsPak® friction draft gear is described as “the lightest weight high-performance M-901E draft gear, allowing extra payload capacity and greater car design flexibility. The TF-880 utilizes a patented TecsPak® elastomer compression spring package and proven friction clutch design. With 44% more energy absorption than double-coil spring designs, the TF-880 not only provides greater spring capacity, it can significantly reduce the transfer of damaging force to the railcar. TF-880 draft gears examined from service applications of more than one million miles have consistently demonstrated the sustained high capacity under a wide variety of operating conditions.”

Miner’s Mini-BuffGear “gives drawbar equipped railcars and trains improved lading protection and train handling. It incorporates a TecsPak® elastomer spring package to provide resilience in drawbar designs with a standard yoke and draft pocket. This resilience reduces any tendency of the drawbar to bind while negotiating curves. Its high preload and limited travel provide ultra-low slack in drawbar-connected multiple-unit well cars and groups of unit train coal cars.

To perform AAR M-901 series draft gear tests, Miner literally drops the hammer. Its 27,000-pound drop-hammer test rig is used to determine draft gear performance and durability. The machine’s base is equipped with a two-million-pound capacity load cell to measure reaction force. A laser displacement transducer is used to measure draft gear travel. The dedicated data acquisition system records output from the transducers, calculates the energy absorbed and presents the data in a graphical format.

In addition to a range of ASF-Keystone® Twin-Pack®™ draft gears, Amsted Rail® offers full line of AAR-approved cushioning units and drawbars, and customized one-piece 36

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August 2016

DuraSill™ integrated cast draft sills, which “exceed AAR specifications for design loads, while also reducing car weight.” For cargo deemed sensitive to buff and draft forces (such as motor vehicles), Amsted offers a line of hydraulic cushioning units. Active Draft Cushioning Units “deliver full protection while maintaining compression.” This is especially critical during train starts and stops.

Cardwell Westinghouse’s all-steel, self-contained and precompressed Mark 50, Mark 70E, Mark 75G, Mark 90AT, are for Group J, Rule 21 applications. The Mark 50 is described as “the first draft gear to receive unconditional AAR M-901E approval.” Also for Group J Rule 21, the Mark R-500 is a rubber friction draft gear that “transfers wear and stress to replaceable, energy absorbing components, and uses a solid rubber tube inside the spring housing assembly.

The Mark 325 “is specially designed to provide high capacity, all-steel performance in a streamlined package. AARrated at 47,327 foot-pounds, it’s the lightest Mark series draft gear available and “the highest capacity all-steel draft gear available.” It’s used on unit trains, intermodal platforms and general service cars.

The Mark H-60 “features a unique hydraulic unit working in parallel with a proven helical spring group. This combination actuates the friction clutch. The result is increased cushioning capacity. The hydraulic seals are static and are purposely located on the downstream low pressure side to provide long life. Although the Mark H-60 is specifically designed for intermodal cars, it can be used on all railcars having a standard 24-5/8 pocket.”

With all Cardwell Westinghouse draft gears, remaining gear life can be measured on the car without removal of the draft gear. RA

PROTECTED

BY TECHNOLOGY Performance-based monitoring offers a host of benefits, not the

By RYAN MCWILLIAMS, Contributing Editor least of which is improved safety.

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ew technologies are introduced into the rail industry every year that are improving the safety and productivity of freight and passenger railways around the globe. There are cutting-edge performance-based monitoring systems that are detecting excessive forces, broken or misaligned components, and worn or damaged infrastructure and rolling stock.

The advantage of implementing these devices is evident when we look at the benefit of removing human error, and acknowledge the additional benefit of employing a system that monitors 24 hours a day, in all environmental conditions. Performancebased monitoring devices also allow us to move from mileage or time-based maintenance to a system that is maintained at the appropriate time and location according to the actual condition of the asset. The efficiency gains and the removal of subjective decision making is extremely beneficial to the bottom line of the business, which often drives these system implementations. The safety implications are often more difficult to quantify, but the

rail industry agrees that the safety benefits are paramount.

Proven and mature systems such as ultrasonic inspection cars, HBDs (hotbox detectors) and wheel profile systems (among others) have become a mainstay in the daily operations of most networks. These systems allow us to monitor rolling stock and infrastructure and make educated science- and business-based decisions with respect to maintenance activities and safety. They also allow us to monitor more of our network assets at more frequent intervals.

There are also newer performance-based monitoring systems, such as vision-based systems that can measure the amount of ballast needed on track and others that can determine if a brake shoe is worn or missing. More recent technologies can even scan a railcar to determine if an undesirable package or person is present. These more complex and more advanced systems are now being implemented and advanced at a very impressive pace. Not all systems are perfect yet, but it is very relevant to note that most of these newer and still advancing technologies August 2016 Railway Age 37

c&S: Wayside fault detection

available, suppliers and developers have been moving toward the improvement and adaptation of energy harvesting power supplies such as solar and/or kinetic. These systems are now on the scene, and are improving in both performance-based and cost every year. While the power supply industry is advancing, so is the data processing side of the house. Just like your laptop, the industrial computational processors of today are using less power and are improving their performance, which helps to advance our monitoring systems and also brings the cost down to a more acceptable level.

As the industry gets better at understanding and implementing performance-based monitoring systems, we are also providing a safer, more productive environment for our colleagues, our customers and the communities we serve. This article has a primary goal of showcasing how great the people are in our industry and also to draw attention to how vulnerable we are at any particular moment. On any given day, we have literally thousands of success stories about how well someone did his or her job. The following event is just one example that showcases the dedication and commitment of our colleagues and co-workers in a situation that is less than optimal. It is also an example of how close we are to catastrophes and why we are seeking support, insight and backup from monitoring systems.

Ballast integrity sensors inserted close to the field side of the rail monitor and report on any movement more than 1.5 inches from the original track/ballast/subgrade position.

are providing more accurate and enhanced information than has been historically available.

The industry is doing a great job in promoting the development of newer technologies. It appears that more decision makers are realizing that technology advancements are iterative and each tech breakthrough or application improvement is a step in the right direction. Railways that support newer performance-based monitoring systems are reaping the benefit of key information at an early stage while also playing a major role in accelerating the effectiveness of such information and technology. Suppliers and railroads are working together better now than they have in decades, which translates into a win-win situation for all involved and helps us keep pace with other industries, such as trucking.

The latest trend in the performance-based monitoring world is the development of on-board sensors that have multiple functions. It is obvious that a sensor with the capability of monitoring temperature, impact, pressure, wear and force is a much more valuable device than a collection of independent systems.

The challenge here is that the placement and processing power of such devices is restricted by the physical limitations and the reality of the railroad environment. The other constraint is that these on-board systems have the challenge of providing power and communications links for the acquisition system that is collecting the data and processing the information.

It is a tall order for a multi-sensor package to have enough power from its system battery to enable it to collect information continuously. Since a constant energy source is often not 38

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August 2016

Washout Warning

According to a PNR Railworks report, it was 3:00 AM with heavy rain falling and high winds blowing one dark July morning in 2013 when foreman James Filipchuk of PNR RailWorks sighted a washout and helped to avoid an almost certain derailment on GO Transit’s Bala Subdivision in Toronto.

A day of record rainfall in Toronto had created severe flashflooding across the network, causing chaos for GO Transit that included multiple trackbed washouts, rain-related signal problems and even a flooded train. That night, Filipchuk was nearing the end of his shift and protecting a welding crew on at Doncaster South. He was enoute to clear the men and equipment at milepost 11.1 and “could faintly hear the high-water detector in emergency at milepost 4,” he said. It would have been easy to let his focus shift to dry clothes and a warm bed, but Filipchuk kept his attention on the system he was protecting.

Filipchuk requested extended time from the rail traffic controller so that he could inspect a portion of the Bala Subdivision that runs alongside a flood-prone area just west of the Don River. He was given only a few minutes due to a CN freight train waiting to travel up the subdivision.

Filipchuk stated, “I cleared the welding crew and continued patrolling southbound. As I approached the curve heading into milepost 10, I noticed dark locations alongside the track, brought my hi-rail vehicle to a stop, and then noticed there was a significant washout.” Filipchuk then advised the proper authorities that conditions were impassible due to overflowing culverts and drains backing up that directed water onto the track and undermined the track bed. At this time, there were significant washouts occurring on four GO Transit subdivisions.

c&S: Wayside fault detection

GO Transit Manager of Track and Structures Mel White praised Filipchuk’s actions. “Had James not been proactive and requested time, we would have incurred a derailment, which may have caused loss of life but surely would have resulted in extensive delays to service on the Richmond Hill line,” he said.

Stop and think for a minute about the situation that night.

Let’s take a moment to consider a scenario where Filipchuk didn’t hear the alarm because the rain was just a bit heavier or the truck was slightly louder or he simply needed to get home after a long night shift. Consider that he received a call from a colleague and was focused on any one of his other critical tasks.

That day could have very easily been a lot different for a lot of people around the country. We are very thankful and very mindful of the close call that Filipchuk prevented from becoming an absolute catastrophe.

GO Transit also recognized the risk that had been narrowly averted and what they did thereafter was to further protect their assets from any similar occurrences in the future. The team at GO worked with PNR Railworks and International Engineering to evaluate the network and install ballast integrity sensors at key locations where the risk of washout was prevalent. The system they installed was a simple soil, subgrade, and ballast monitoring device, a self-contained system that is now monitoring the infrastructure at those locations 24 hours a day, 365 days a year.

The ballast integrity sensors monitor and report on any

More decision makers realize that technology advancements are iterative and each breakthrough is a step in the right direction. movement more than 1.5 inches from the original track/ballast/ subgrade position (this parameter is configurable based on the application). GO had ballast integrity systems installed in highrisk areas to monitor the bridge abutments as well as the hillsides where drainage culverts direct water under the track. Currently, the system notifies the Operations Control Center as well as PNR personnel in the event a washout, landslide or even a sun kink occurs that would trigger the trackside sensors.

An interesting circumstance regarding this project was the fact that the initial installation was comprised of plastic-bodied track sensors that were unable to withstand the crushing freeze/ thaw cycles that a Toronto spring season brings to bear. While the sensors still worked and were fully operational, their outer casing cracked when the freeze/thaw cycle imparted extreme pressure

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c&S: Wayside fault detection

due to ground water freeze and resultant compressive forces far beyond the material’s limits.

This is an example of how brutal the railway environment can be, and how improvements and application advancements are progressing out of necessity and experience. To remedy this condition, metal sensors were selected to replace the plasticbodied units on both the Bala and Oakville sub divisions. The metal sensors have materials characteristics that far exceed the crushing pressures of the frozen ground. Additionally, they are even pressure-proof to a depth of more than 50 feet under water to allow installation at the base of bridge piers for scour monitoring in locations that are not easily accessible.

Now that the infrastructure is protected and monitored in those critical areas, everyone at GO and at PNR is sleeping a bit better at night. Sun kinks, track buckles, washouts and misalignments are all big-ticket safety items for entire industry, and we bear a safety liability as well as a fiscal responsibility associated with these conditions on freight and passenger systems throughout North America.

There isn’t a railway person on the planet who wants the responsibility of a hazardous material spill or a derailed passenger train to be a headline on his or her watch. While we still need people like James Filipchuk on the front lines to prevent that next close call, we also need to provide him with the tools and the knowledge that a monitoring system or an early warning

Sun kinks, track buckles, washouts and misalignments are all big-ticket safety items for entire industry.

device affords so that he knows when and where to focus his attention. These systems don’t have to be complex, but they do need to be properly implemented. Thankfully, there are forwardthinking organizations actively promoting performance-based monitoring device options and solutions available in the market today. We should be very grateful that we have leaders in the industry who are taking a progressive approach to performancebased monitoring, safety and fiscal responsibility. RA

Are you a railroad or supplier searching for job candidates? visit http://bit.ly/railjobs THE RAILWAY AGE JOB BOARD connects candidates and opportunities in the rail industry.

To place a job posting, contact: Jeanine Acquart • 212 620-7211 • jacquart@sbpub.com 40

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August 2016

Sound Transit, sound PUBLIC INVOLVement

By BEN VIENT, Managing Editor

All Photos: Sound Transit

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his is how the Central Puget Sound region encompassing Seattle-Tacoma, Wash. sees itself: a thriving, picturesque mecca of towering evergreens, glistening bodies of water and hills where millions of people are drawn to live, work and play. The region is considered one of the most livable in the nation.

But the beautiful surroundings make mobility challenging. With more people living in greater Seattle-Tacoma and more job opportunities to choose from throughout the region, the roadways have become more congested.

And the region’s most scenic physical attributes—water, hills, and mountains—create natural barriers to expanding the transportation system.

In the early 1990s, state and regional leaders acknowledged that the Central Puget Sound region could not

simply pave its way out of traffic jams. They concluded that—if the region was to remain livable—more transportation choices were needed, with a new high-capacity transit network to connect the region’s urban centers.

In 1996, the public voted to begin building that network.

And it’s here that the Seattle region’s modern rail development story begins: with the public.

“The initial 1995 transit vote probably failed because we weren’t involving the larger public as well as we could have,” says Dave Early, a board member of Sound Transit during that time, and now. “So one year later, in 1996, we involved more of the commuting public to advocate for a more regional, comprehensive transit plan.”

In that 1996 vote, the public approved tax increases to fund a $3.9 billion transit package, with vote tallies nearly August 2016 Railway Age 41

TRANSIT FOCUS: SEATTLE-TACOMA

If voters approve, the ST3 Plan’s $53.8 billion in investments would be funded through new sales, motor vehicle and property taxes. reversed from the previous year: 56.5% approval, 43.5% disapproval.

The 1996 vote created the 1.6-mile Tacoma Link light rail system, opened in 2003 with Škoda vehicles, and the 13.9-mile Central Link, opened in July 2009 with Kinkisharyo vehicles.

The 1996 vote also included an 82-mile commuter rail partnership with BNSF that opened south to Tacoma in 2000 and north to Everett in 2003, with Bilevel cars from Bombardier and locomotives from EMD and MotivePower.

“Connecting commuter rail was part of the strategy to involve more people,” says Early. “Demonstrate how public transit can improve the lives of more people, and attract more voters for this development.”

After another public vote passed by 57% of voters in 2008, Sound Transit is now expanding light rail from 18.8 to 54 miles. Commuter rail service now totals 10 roundtrips daily to the south, and four to the north.

But a 2007 transit tax vote, with a $14.1 billion price tag that would had expanded light rail almost 50 miles, was defeated: 56% of voters disapproved. “This vote failure shows our transit infrastructure projects are dependent on the approval of the public,” says Geoff Patrick, spokesperson for Sound Transit. “The public didn’t connect with the large scale of the 2007 proposal.”

And so since 2015, Sound Transit has been working with the public to prepare a November 2016 vote for Sound Transit 3 (ST3). Sound Transit asked the public for 42

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project ideas at forums, advertised the public comment period in 13 diverse publications in seven languages, and conducted a phone survey in April 2016 that shows nearly three-quarters of voters now support expanding mass transit: 58% strongly and 18% somewhat.

“In a democracy, public support is required,” says Mayor Marilyn Strickland of Tacoma. “But it’s also smart policy to connect the public with the infrastructure industry to help create good jobs.”

If voters approve, the ST3 Plan’s $53.8 billion in investments would be funded through new sales, motor vehicle and property taxes. Sound Transit estimates ridership would quintuple, increasing from approximately 145,000 each weekday to between 561,000 and 695,000 daily riders in 2040. With ST3, the share of all transit travel in the region on Sound Transit rail lines could grow from 17% today to 69% in 2040.

An additional 62 miles of light rail would create a 116-mile regional system.

ST3 would also expand the capacity of the fast-growing Sounder commuter rail service linking Seattle, Tukwila, Kent, Auburn, Sumner, Puyallup, Tacoma and Lakewood, with extension of the line to reach Joint Base LewisMcChord and DuPont.

“We’re waiting to see how the public votes on this,” says DJ Mitchell, Assistant Vice President of Passenger Operations for BNSF. Mitchell explains that BNSF and its predecessors have been operating commuter rail in the Chicago region since 1864, but only in the past few years has BNSF forged partnerships with other cities: Los Angeles in 1996 and Minneapolis in 2009.

And since 2000, with Sound Transit. BNSF operates Sound Transit commuter rail equipment under contract to the agency on its own trackage, and has been working closely with the agency on service and capacity expansion projects. “We’ve let Sound Transit know we are interested to further discuss the possibilities,” Mitchell says. “Passenger rail operations could develop more for BNSF. But rightfully, first, the public needs to figure out whether they want more of this rail development.” RA

People

Meetings

High profile: E. Hunter Harrison came out of retirement in 2012 to lead Canadian Pacific out of the Class I basement, where it had languished for several years. The following year, his protégé, Keith Creel, left CN to join his mentor. Next July, Creel will officially fill Harrison’s shoes upon Harrison’s retirement after more than a half-century in railroading.

Currently President and Chief Operating Officer, Creel will become President and CEO on July 1, 2017. Harrison will remain on board in a post-retirement consulting capacity for Harrison Canadian Pacific at least three years. Creel was appointed President and COO in February 2013 and joined the CP Board in May 2015. He previously served as Executive Vice President and COO of CN. “I have known and worked with Keith for more than 20 years,” said Harrison. “He is one of the strongest operating executives I have ever met in this business, and I know he will do a fantastic job leading CP after my retirement. I look forward to supporting him as we continue to transition over the next year.”

Aug. 17-18, 2016

CN—Mike Cory named Executive Vice President and Chief Operating Officer, succeeding Jim Vena, who retired after a long and distinguished career at CN spanning 39 years.

Ghislain Houle named Executive Vice President and Chief Financial Officer, succeeding Luc Jobin, named President and CEO following Claude Mongeau’s resignation due to health reasons. Mongeau will continue to serve CN in an advisory role.

Georgetown Rail Equipment Company (GREX)—Todd Euston promoted from Director of Inspection Technology to Vice President of Engineering.

Parsons Corp.—William “Bill” Crosbie has rejoined Parsons Corp. as Senior Vice President and Business Development Director for the firm’s Transport Division, which provides full-service engineering and management services in rail transit, ports and harbors and aviation. Gill Mosseri recently joined the corporation as Vice President and New York Region Business Development Manager of the company’s Infrastructure Business Unit.

WSP | Parsons Brinckerhoff—Wynne Davis hired in the Washington D.C. office as a Senior Rail and Transit Specialist, providing clients with program management and strategic advisory services. Rik Lor will

manage the delivery of rail projects as a Senior Engineering Manager in the Transit & Rail Technical Excellence Center in San Francisco. Prior to joining WSP | Parsons Brinckerhoff, Lor was a deputy project manager at the Regional Transportation District in Denver, responsible for managing the agency’s Eagle P3 project and North Metro Rail project. Jorge A. Chaves Dominguez named President and Asdrubal Montenegro named Chief Financial Officer of the firm’s Latin America Region.

100 YEARS AGO in

August 1916 President Wilson AS MEDIATOR IN WAGE CONTROVERSY: CALLS NATIONAL CONFERENCE COMMITTEE AND BROTHERHOOD REPRESENTATIVES TO WASHINGTON TO AVERT STRIKE President Wilson assumed personal charge of the efforts to bring about a peaceful settlement of the wage controversy between the railways and the four brotherhoods of train service employees, who have demanded an eight-hour basic day and time and one-half for overtime.

Michigan Rail Conference, Marquette, Mich.

Contact: http://www.rail.mtu.edu/ event/4th-annual-michigan-railconference

Sept. 15-16, 2016 Railway Age & Parsons present Next-Gen Train Control Arlington, Va. Contact: conferences@sbpub.com www.railwayage.com/nextgen

Sept. 20-23, 2016 InnoTrans Messe Berlin Convention Center and Hotel del Coronado, Berlin, Germany Contact: mjbalve@globaltradeshow.com www.innotrans.com

Sept. 21-23, 2016 Northeast Association of Rail Shippers Sable Oaks Marriott, Portland, Me. Contact: www.nears.org

Oct. 10, 2016 Chicago Railroad Mechanical Golf Outing, Chicago Contact: http://www.thecrma.org/

Oct. 27-28, 2016 Railway Age presents Energy by Rail Key Bridge Marriott, Arlington, Va. Contact: conferences@sbpub.com www.railwayage.com/energy

Nov. 1-2, 2016 Railroad Environmental Conference Illini Union, 1401 W Greet St., Urbana, Il. Contact: rrec-conf@illinois.edu http://railtec.illinois.edu/RREC/ overview.php

August 2016 Railway Age 43

Products “Spark-Proof” Urethane Heavy-Duty Double Wheel Chock Aldon Company offers Spark-Proof Urethane Wheel Chocks, which are designed specifically for tank cars and other freight cars loading or unloading hazardous materials, and where a spark from a steel wheel chock could ignite dust or fumes.

“Urethane is truly the miracle material, combining great resistance to loads with the ability to compress to half of its thickness and then spring back to its original shape,” Aldon says. “Urethane will not degrade from corrosive materials and most chemicals.”

Spark-Proof Urethane Wheel Chocks are tough enough to block a tank car, but resilient enough that the car can be pulled over the chock by a locomotive without derailing.

No more trying to yank free a steel chock that is stuck under a wheel. When it’s time to move, just pull the car over the chock and retrieve the chock later.

The Spark-Proof chock was successfully tested at TTCI and then at a short line railroad. Features: • 4 inches high, ideal for chocking locomotives.

• Available in exposed rail or flush rail version.

• Handles are 24 inches long. When installed on flush rail, the handles are 1.5 inches above the pavement for easy grasping.

• Weight: 9 pounds.

For further information contact: e-rail@aldonco.com.

Automatic Cutter Alignment System For Stanray Underfloor Wheel Truing Machine The new ACA (Automatic Cutter Alignment) system for the Stanray Underfloor Wheel Truing Machine improves railroad wheel shop safety and extends the life of rail vehicle wheelsets. The system automatically aligns the milling cutters to the ideal cutting position, limiting the amount of metal being removed from the wheel during wheel truing.

A properly reprofiled wheel also decreases the chance for wheel flange climb derailments. The easily calibrated system’s repeatability decreases the need for the operator to be under the vehicle during the wheel truing process and limits operator error. The ACA is available as optional equipment for all new Stanray wheel truing machines. It can be retrofitted to existing machines equipped with a Power Cutter Alignment. Information: www.Smtgroup.com.

Atlas Copco Modern Air Compressor Solution Atlas Copco, among the largest air compressor manufacturers in the world, has a plug-and-play solution for old OEM air compressors on GE DASH 8 and 9 locomotives. The design has an interface box that requires minimal work to be done to the locomotive to accommodate the new compressor. The compressor itself is compact, lightweight, efficient and has a low life-cycle cost. For more information, contact Jim Donohue, jim.donohue@us.atlascopco.com.

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Railway Age

August 2016

Ad Index Company

Phone #

Fax

URL/Email address

Page #

Danella Rental Systems, Inc.

610-828-6200

610-828-2260

pbarents@danella.com

Dixie Precast

770-944-1930

770-944-9136

fbrown142@aol.com

23

Greenbrier Companies The

800-343-7188

503-684-7553

gbrx.info@gbrx.com

34

LORAM

763-478-6014

763-478-2221

sales@loram.com

LTK Engineering Services

215-641-8826

215-542-7676

tfurmaniak@ltk.com

12

Michael Baker International

215-430-5506

215-568-1349

malisesky@mbakerintl.com

22

Miner Enterprises

630-232-3000

630-232-3055

sales@minerent.com

5

New York Air Brake

315-786-5431

315-786-5676

janice.pheile@nyab.com

7

Nord-Lock, Inc./Superbolt, Inc.

412-279-1149

412-279-1185

bolting@nord-lock.com

NRE

618-241-9270

618-242-8519 sales@nre.com

ORX

814-684-8484

glenn@orxrail.com

C4

Railquip Inc

770-458-4157

770-458-5365

sales@railquip.com

14

Rails Co.

973-763-4320

973-763-2585

rails@railsco.com

15

Railway Educational Bureau, The 402-346-4300

402-346-1783

bbrundige@sb-reb.com

Railway Equipment Co.

763-972-2200

763-972-2900

sales@rwy.com

RailWorks

866-905-7245

952-469-1926 jrhansen@railworks.com

Ritron, Inc.

800-USA-1-USA

317-846-4978

Strato

732-317-5406

732-981-1222 korozco@stratoinc.com

29

Trainyard Tech LLC

724-443-8881

724-443-8881

cra2@zooninternet.net

15

Unitrac Railroad Materials, Inc.

412-298-0915

865-693-9162

ppietrandrea@unitracrail.com

30

9

11, 18

26 3

23, C3 13 20-21

sales-info@ritron.com

Zhuzhou CSR Times Electric Co.

39

C2

The Advertisers Index is an editorial feature maintained for the convenience of readers. It is not part of the advertiser contract and Railway Age assumes no responsibility for the correctness.

Advertising Sales MAIN OFFICE Jonathan Chalon, Publisher 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7224 Fax: (212) 633-1863 jchalon@sbpub.com AL, AR, IN, KY, LA, MI, MS, OH, OK, TN, TX Jon Schact 20 South Clark Street, Suite 1910 Chicago, IL 60603 (312) 683-5021 jschacht@sbpub.com CT, DE, DC, FL, GA, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA, WV, Canada – Quebec and East, Ontario Jerome Marullo 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7260 Fax: (212) 633-1863 jmarullo@sbpub.com

AK, AZ, CA, CO, IA, ID, IL, KS, MN, MO, MT, NE, NM, ND, NV, OR, SD, UT, WA, WI, WY, Canada – AB, BC, MB, SK Heather Disabato 20 South Clark Street, Suite 1910 Chicago, IL 60603 (312) 683-5026 Fax: (312) 683-0131 hdisabato@sbpub.com The Netherlands, Britain, France, Belgium, Portugal, Switzerland, North Germany, Middle East, South America, Africa (not South), Far East (Excluding Korea /China/India), All Others, Tenders Louise Cooper International Area Sales Manager The Priory, Syresham Gardens Haywards Heath, RH16 3LB United Kingdom +44-1444-416368 Fax: +44-(0)-1444-458185 lc@railjournal.co.uk

Scandinavia, Spain, Southern Germany, Austria, Korea, China, India, Australia, New Zealand, South Africa, Russia, Eastern Europe Baltic States, Recruitment Advertising Julie Richardson International Area Sales Manager The Priory, Syresham Gardens Haywards Heath, RH16 3LB United Kingdom +44-1444-416368 Fax: +44-(0)-1444-458185 jr@railjournal.co.uk Italy, Italian-speaking Switzerland Dr. Fabio Potesta Media Point & Communications SRL Corte Lambruschini Corso Buenos Aires 8 V Piano, Genoa, Italy 16129 +39-10-570-4948 Fax: +39-10-553-0088 info@mediapointsrl.it

Japan Katsuhiro Ishii Ace Media Service, Inc. 12-6 4-Chome, Nishiiko, Adachi-Ku Tokyo 121-0824 Japan +81-3-5691-3335 Fax: +81-3-5691-3336 amkatsu@dream.com CLASSIFIED, PROFESSIONAL & EMPLOYMENT Jeanine Acquart 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7211 Fax: (212) 633-1325 jacquart@sbpub.com

August 2016 Railway Age 45

equipment Sale/Leasing

Available For Lease ◆ Pressure Differential (PD) Covered Hopper Cars – 5,125 & 5,230 cu. ft., 286K GRL, operate at 14.7 psi. ◆ 3,600 cu. ft. Open Top Hoppers. 45 degree slopes for aggregate, coke, coal, etc. ◆ Pressure Differential (PD) Covered Hopper Cars – 3,915 cu. ft. capacity, operate at 14.7 psi. ◆ Mill Gondolas – 65’ 6” inside length with 5’ sides and 52’ 6” inside length with 4’ 6” sides.

Available for Lease

For additional information and pricing, please contact John Goodwin phone (605) 582-8318 e-mail jgoodwin@mwrail.com www.carmathinc.com

3000 cu ft Covered Hopper Cars 4650 cu ft Covered Hopper Cars 3600 cu ft Open Top Hopper Cars 100 ton Automated/Manual Ballast Cars 4480 cu ft Aluminum Rotary Open Top Gons 65 ft, 100-ton log spine cars equipped with six (6) log bunks Contact: Tom Monroe: 415-616-3472 Email: tmonroe@atel.com

JUMP STARTER

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Contact: Jeanine Acquart Ph: 212/620-7211 Fax: 212/633-1165 Email: jacquart@sbpub.com

www.STARTPAC.com OR TOLL FREE 844.901.9987

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46

Railway Age

August 2016

TRAINING

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RFP NOTICES

New York City Transit

products & services

CONTRACT SOLICITATIONS RFQ#: R34211 DUE DATE: 10/18/16

The Oldest & Largest Manufacturer of Railroad Graphics.

The celebration with and Reidler continues. Mention this ad to receive 10% off your railroad graphics order; includes consolidated stencils, tank qualifications, & Chemtrec markings. (FRA delineators excluded) 264 Industrial Park Rd. PO Box 8 St. Clair, PA 17970 Fax 1-888-826-0108 www.reidlerrailgraphics.com Email: csweigert@reidlerdecal.com

Give us a call at

1-800-628-7770

TITLE: R34211 Purchase of 1025 Subway Cars DESC: The Metropolitan Transportation Authority, acting by the New York City Transit Authority (NYCT), is issuing a Request For Proposals (RFP) for Solicitation Number R34211 for the purchase of 1025 Subway cars as follows: A base order of 285 cars comprised of 10 open gangway cars (R211T) for the NYCT “B” Division, 75 cars for the Staten Island Railway (R211S) & 200 cars for the NYCT “B” Division (R211A). In addition there will be an option for 740 R211T or R211A cars for the NYCT “B” Division. There will also be an additional option for up to 520 Cars for the NYCT “B” Division. The Contractor will provide all design, engineering, testing, manufacturing, delivery, warranty, training, spare parts, tools, diagnostics test equipment & other services necessary. This contract will contain Federal funds. A Pre-Proposal Conference will take place on 9/8/16, 10AM, location to be determined.

Proposals from responsible proposers will be evaluated with respect to the evaluation criteria set forth in the RFP, which are summarized below.

Please consult the RFP for a complete description of the evaluation criteria.

Evaluation Criteria: 1) Technical Proposal & Overall Technical Qualifications: Technical features of the Proposal; experience of the Proposer/Suppliers/ Subcontractors; demonstrated capability to make or improve on delivery of cars based on Contract delivery schedule; evaluation of major subsystems; systems integration experience; management approach; system support; quality assurance; & a U.S. Employment Plan. 2) Overall Project Cost & Financial Benefit to the Authority 3) Other Relevant Matters.

All inquiries should be addressed as follows: Marian Murray, ACPO, MTA New York City Transit, 2 Broadway, Rm D19.83, New York, NY 10004, Ph: (646) 252 – 6040, E-mail: marian.murray@nyct.com. The release date of the RFP is 7/22/16 & may be obtained on or after that date by going to the website http://web.mta.info/nyct/procure/rfppage.htm August 2016 Railway Age 47

Financial edge DAVID NAHASS

ECP brakes, money, politics and Oregon

A

h those midsummer doldrums.

Hopefully, loyal readers are able to take a needed respite and page through your favorite magazine by a pool or a beach, slathered in sunblock or buried in shade.

Activity in the rail market continues, with sizable portfolios being made available for sale in the secondary market. Profit taking and earnings management are driving those initiatives. New car orders for second-quarter 2016 are logging in at 7,500 cars (that’s 30,000 cars annualized). While surprising, that quarterly total is a number many in the industry are hoping will improve in the short term.

Last month, the Financial Edge discussed the disconnect between expectation and reality regarding implementation of new-design tank railcars. The importance of the ongoing discussion on car design and safety returned to the foreground after the June 3 derailment on Union Pacific in Oregon. What grabbed attention was the post-derailment discussion about the value and impact of adding electronically controlled pneumatic braking (ECP brakes) to trains hauling crude and other Class III flammable commodities in tank railcars.

FRA Administrator Sarah Feinberg told Oregon Public Radio, “We believe that [electronically controlled] brakes would have led to fewer cars derailing and potentially no fire.”

The AAR and Union Pacific had pointed responses. From the AAR: “(ECP) will not provide significant safety benefits and is technology that does not prevent derailments.” From UP: “The train involved in the Mosier accident was equipped with distributed power, which has a braking capacity very similar to ECP… It is speculative to suggest that ECP brakes would have prevented cars from derailing.”

48

Railway Age

August 2016

Whew. As a friend says, “Can’t we all just get along?”

What’s at issue here? This is a dispute between the nature of perception and the field-level application of technology. The UP’s position makes sense: ECP braking may be significantly faster than conventional air braking. However, distributive power, placing locomotives mid-train and at the rear end, would shorten the application time of the air brakes by decreasing the length of the air brake line.

Point a finger, make a statement and hide behind the veil of public safety—facts be damned.

From the FRA point of view, the derailment presents an excellent opportunity to revisit the requirement for ECP brakes contained in the DOT 117 tank railcar spec issued almost a year ago and still under scrutiny for several issues, including, you guessed it, the requirement that all DOT 117 tank railcars have ECP brakes.

Railroad accidents (including crude oil train derailments) have stayed fairly level, averaging 2.6 train accidents per million train-miles from 2009-2015.

ECP braking is technology that has been around since the 1990s. Its implementation is expensive, so it makes sense that if ECP braking is going to be mandated, the need and benefit have to be correct and quantifiable. So how can there be such diverse opinions about its applicability and its potential results?

I asked a few industry veterans this question. Some of the responses I got were, “ECP brakes don’t equate to accident (derailment) prevention and the cost benefit analysis is not supportive of its implementation.” From another source, “While ECP makes sense, I don’t imagine the railroads embracing the technology while they embark on the expenditures for PTC (Positive Train Control).” Railroad industry analyst Tony Hatch answered “politics,” and quipped that the regulatory bodies governing railroads continue to focus on train crew minimum sizes while simultaneously advocating for driverless technology for trucks on the nation’s highways. (That’s a high-profile topic for another column.)

Money and politics—who would have guessed? The shield of safety is something easy to hide behind. After speaking with experts in the industry, the factual support for ECP braking vs. other current and soon-available future technology seems flimsy. Perhaps the FRA’s support of ECP brakes is the low hanging fruit of deflecting criticism regarding railroad derailments and safety. Point a finger, make a statement and hide behind the veil of public safety—facts be damned. Without ECP brakes to point to, only the facts support consistency in railroad operational safety. As Railway Age Contributing Editor David Thomas has pointed out, the ongoing refusal to stabilize volatile Bakken crude being moved in tank railcars (by removing natural gas liquids) remains at hand to discuss.

Lacking province over the decision of how crude is loaded into tank railcars, the FRA seems to be deflecting to safety down the ECP road.

At a cost of roughly $4,000 per car, many industry watchers hope that the FRA efforts fall flat. Political watchers might not have the same confidence.

We’re current, are you? FRA Regulations FRA News:

Mechanical Department Regulations A combined reprint of the Federal Regulations that apply specifically to the Mechanical Department. Spiral bound.

Part Title 210 Railroad Noise Emission Compliance Regulations 215 Freight Car Safety Standards 216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment 217 Railroad Operating Rules 218 Railroad Operating Practices - Blue Flag Rule 221 Rear End Marking Device-passenger, commuter/freight trains 223 Safety Glazing Standards Update 4-11-16 225 Railroad Accidents/Incidents Update 1-1-16 229 Locomotive Safety Standards 231 Safety Appliance Standards 232 Brake System Safety Standards

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FRA Part #

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Update effective

2-12-13 7-20-09 3-25-14 7-11-13 1-6-15 6-25-12 6-25-12 6-25-12 6-25-12 6-25-12

BKHORN 222 6-25-12 BKRFRS 224 6-25-12 BKHS BKLSS BKSLI BKSAS BKBRIDGE BKLER

228 229 230 231 237 240

6-25-12 12-19-12 6-25-12 6-25-12 6-25-13 6-25-12

BKCONDC 242 6-25-12

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50 or more

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10-3-12 Drug and Alcohol Regulations in 7-7-15 the Workplace

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49 CFR Part 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, and 272: Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act for a Violation of a Federal Railroad Safety Law or Federal Railroad Administration Safety Regulation or Order. To comply with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, FRA is adjusting the minimum, maximum, and aggravated maximum penalties that it will apply when assessing a civil penalty for a violation of a railroad safety statute, regulation, or order under its authority. In particular, FRA is increasing the minimum civil penalty per violation from $650 to $839, the ordinary maximum civil penalty per violation from $25,000 to $27,455, and the aggravated maximum civil penalty (i.e., the maximum civil penalty per violation where a grossly negligent violation or a pattern of repeated violations has created an imminent hazard of death or injury or has caused death or injury) from $105,000 to $109,819.

DATES: Final rule is effective August 1, 2016.

Part 213: Track Safety Standards 49 Part 213, Subparts A-F. Classes of Track 1 through 5: Applies to track required to support passenger and freight equipment at lower speed ranges. Includes Defect Codes and Appendices A, B, and C to Part 213. Softcover. Spiral bound. Updated 3-25-14.

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Part 214: Railroad Workplace Safety The FRA's Railroad Workplace Safety standards address roadway workers and their work environments. Subparts A-General, B-Bridge Worker Safety Standards, C-Roadway Worker Protection, D-On-Track Roadway Maintenance, and Defect Codes for Part 214. Spiral bound.

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Bridge Safety Standards FRA Part 237 establishes FRA safety requirements for railroad bridges. This rule requires track owners to implement bridge management programs, which include annual inspections of railroad bridges, and to audit the programs. Part 237 also requires track owners to know the safe load capacity of bridges and to conduct special inspections if the weather or other conditions warrant such inspections. Softcover. Spiral bound.

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The Railway Educational Bureau 1809 Capitol Ave., Omaha NE, 68102 I (800) 228-9670 I (402) 346-4300 www.RailwayEducationalBureau.com

Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN UP TO $10.00 $4.50 $8.75 25.01 - 50.00 10.78 16.80 10.01 - 25.00 7.92 12.65 50.01 - 75.00 11.99 21.20

Orders over $75, call for shipping

*Prices subject to change. Revision dates subject to change in accordance with laws published by the FRA. 8/16

MEET ORX’S HOTTEST GIRL & COOLEST GUY. Melissa - 37.6° C Managing all 2,368 ORX gages and their calibration certification records is no sweat for Melissa.

No matter what we throw her way, Melissa sizzles at her job.

Jeff - 36.0° C As ORX’s Technical Support Supervisor, Jeff is always in the hot seat. But as you can see, his calm disposition shines through while making the impossible, possible. Jeff is one cool cat.

www.ORXrail.com | 814.684.8484