January 2014 Railway Age Magazine by Railway Age

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Railroader of the Year all aBOaRd with

JOe BOaRdman 2014 PassengeR Rail OutlOOk

RailwayAge

JANUARY 2014

visit us at www.railwayage.com Features Railroader of the year: Joseph Boardman Passenger Railcar Outlook

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Departments industry indicators industry Outlook Market People 100 years ago Meetings Products advertising index Classified

4 6 8 54 54 54 57 61 62

20 47

News/Columns From the editor Update watching washington Perspective Financial edge

2 10 19 56 64

On the COver amtrak President and CeO Joseph Boardman. Photo courtesy of amtrak 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. 215, No. 1. Subscriptions: Railway Age is sent without obligation to professionals working in the railroad industry in the United States, Canada, and Mexico. However, the publisher reserves the right to limit the number copies. Subscriptions should be requested on company letterhead. Subscription pricing to others for Print or Digital only versions: $100.00 per year/$151.00 for two years in the U.S., Canada, and Mexico; $139.00 per year/$197.00 for two years, foreign. Foreign $239.00 (U.S. funds) per year/$397.00 for two years for Air mail delivery. When ordering Both Print and Digital: $150.00 per year/$227.00 for two years in the U.S., Canada, and Mexico; $208.00 per year/$296.00 for two years, foreign. Foreign $308.00 (U.S. funds) per year/$496.00 for two years for Air mail delivery. Single Copies: $36.00 per copy in the U.S., Canada, and Mexico/$128.00 foreign All subscriptions payable in advance. COPYRIGHTÂŠ 2014 Simmons-Boardman Publishing Corporation. All rights reserved. Contents may not be reproduced without permission. For reprint information contact PARS International Corp., 102 W. 38th Street, 6th floor, New York, N.Y. 10018, Tel.: 212-221-9595; Fax: 212-221-9195. Periodicals postage paid at New York, NY, and additional mailing offices. Canada Post Cust.#7204564; Agreement #41094515. Bleuchip Intâ&#x20AC;&#x2122;l, PO Box 25542, London, ON N6C 6B2. Address all subscriptions, change of address forms and correspondence concerning subscriptions to Subscription Dept., Railway Age, P.O. Box 1172, Skokie, IL 60076-8172, Or call toll free (800) 895-4389, or (402) 346-4740. Printed at Cummings Printing, Hooksett, N.H. ISSN 00338826.

January 2014 Railway age 1

RailwayAge

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

On the road with Joe Boardman

t has been a half-century since Modern Railroads (which Railway Age acquired in 1991) picked its first Railroader of the Year, the Southern Railway’s legendary Bill Brosnan. Our 2014 choice, Amtrak President and CEO Joseph H. Boardman, is the newest in a long line of people who have made a real difference in this great industry we call railroading. In a wide-ranging conversation with me aboard Amtrak Business Car 10001, the Beech Grove, as it journeyed from Washington, D.C. Union Station to Penn Station New York, coupled to train No. 185, Boardman talked about his lifelong career in transportation, his tenure at Amtrak, and his views on not only the company’s future, but on the importance of transportation to the U.S. economy and the nation’s standing in the global economy. A few highlights: • “I’m not naturally an awards type of guy. I know a lot of people aren’t, but I appreciate the fact that it’s really about the railroad. The women and the men here really get the job done. We’re making improvements on a regular basis and that’s a good thing for Amtrak.” • “Safety is the foundation for any transportation system. If people don’t trust the safety of our operation, our company, customers aren’t going to flock to the trains. I also have a very important role in increasing revenues and reducing cost. Congress wants that, so does the public. They want to see a system that really produces efficiencies and provides better service.” • “We have an excellent relationship with the freight railroads. They go far beyond for us in many cases. We fight with them over on-time performance and we want to be running first like we’re supposed to and all those kinds of things, but there are good, solid people at these freight railroads that understand our needs, that look at what we both need to get done, and work with us.”

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January 2014

• “We in this nation have become so darn negative in tearing down institutions, whatever they are, and are so expert at it that we don’t recognize that we need to stop. We need to join in common cause to move forward on the debt we owe to the future—our grandkids and beyond our grandkids, those who need to grow a global economy for this nation.” • “Something that culturally needed to be changed when I came here was how we addressed the unions, the engagement of the workforce, to bring something different in for safety. Our behavioral safety program, Safe to Safer, is critical because it also helps develop leaders, those who begin to notice things that could be changed.” • “We have union leaders that are truly leaders. They understand they’re not perfect. They also understand they have an obligation to defend things they wish they didn’t have to defend, at times. We all do, but if you’re willing to collaborate, to sit down with them and listen to their point of view—even if you don’t agree with it— at least you show them the respect that they deserve because they are leaders, the people who operate our trains.” Joe Boardman is an individual of remarkable insight and passion. He cares deeply about Amtrak’s customers and employees, as I witnessed first-hand when he walked through train 185 following our interview, chatting with passengers and the train’s crew. His leadership style is quiet and unassuming—qualities that at first glance may not reveal the man’s inner strength and determination. For the full story on our 51st Railroader of theYear, see p. 20, as well as Frank Wilner’s Watching Washington column on p. 19. Video highlights are posted on the Railway Age website, www.railwayage.com.

ARTHUR J. McGINNIS, Jr., President and Chairman JONATHAN CHALON, Publisher jchalon@sbpub.com WILLIAM C. VANTUONO, Editor-in-Chief wvantuono@sbpub.com DOUGLAS JOHN BOWEN, Managing Editor dbowen@sbpub.com LUTHER S. MILLER, Senior Consulting Editor lmiller@sbpub.com CONTRIBUTING EDITORS: Alex Binkley, Roy H. Blanchard, Lawrence H Kaufman, Bruce E. Kelly, Anthony D. Kruglinski, Ron Lindsey, Ryan McWilliams, Jason H. Seidl, David Thomas, John Thompson, Frank N. Wilner Creative Director: Wendy Williams Art Director: Sarah Vogwill Corporate Production Director: Mary Conyers Production Manager: Jessica Cajas 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 George Sokulski, Associate Publisher Emeritus gsokulski@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, Keith Barrow, Kevin Smith customEr sErvicE: 800-895-4389 Reprints: PARS International Corp. 253 West 35th Street 7th Floor New York, NY 10001 212-221-9595; fax 212-221-9195 curt.ciesinski@parsintl.com Railway Age, descended from the American Rail-Road Journal (1832) and the Western Railroad Gazette (1856) and published under its present name since 1876, is indexed by the Business Periodicals Index and the Engineering Index Service. Name registered in U.S. Patent Office and Trade Mark Office in Canada. Now indexed in ABI/Inform. Change of address should reach us six weeks in advance of next issue date. Send both old and new addresses with address label to Subscription Department, Railway Age,PO Box 1172, Skokie, IL 60076-8172, or call toll free 1-800-895-4389. Post Office will not forward copies unless you provide extra postage. Photocopy rights: Where necessary, permission is granted by the copyright owner for the libraries and others registered with the Copyright Clearance Center (CCC) to photocopy articles herein for the flat fee of $2.00 per copy of each article. Payment should be sent directly to CCC. Copying for other than personal or internal reference use without the express permission of SimmonsBoardman Publishing Corp. is prohibited. Address requests for permission on bulk orders to the Circulation Director. Railway Age welcomes the submission of unsolicited manuscripts and photographs. However, the publishers will not be responsible for safekeeping or return of such material. Member of:

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Industry Indicators SHORT LINE AND REGIONAL TRAFFIC INDEX

TRAFFIC ORIGINATED

FOUR WEEKS ENDING NOVEMBER 30, 2013

CARLOADS

mAJOR U.S. RAILROADS 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 Waste & Nonferrous Scrap All Other Carloads TOTAL U.S. CARLOADS

NOV. ’13 91,749 3,970 38,885 25,469 116,059 58,127 448,343 6,380 12,641 23,512 26,462 14,484 39,842 16,289 69,761 76,979 16,124 30,923 13,233 16,121 1,145,353

NOV. ’12 76,064 4,050 39,652 25,946 114,570 48,436 468,400 6,142 11,700 23,934 29,444 13,908 37,259 16,455 62,935 77,217 17,083 29,004 12,773 15,450 1,130,422

% CHANGE 9.9% -2.0% -1.9% -1.8% 1.3% 20.0% -4.3% 3.9% 8.0% -1.8% -10.1% 4.1% 6.9% -1.0% 10.8% -0.3% -5.6% 6.6% 3.6% 4.3% 1.3%

311.446

5.6%

1,441,868

2.2%

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

328,779

COmBINED U.S./CANADA RR

1,474,132

FOUR WEEKS ENDING NOVEMBER 30, 2013

INTERMODAL

mAJOR U.S. RAILROADS BY COmmODITY TRAILERS CONTAINERS TOTAL UNITS

NOV. ’13 118,576 888,973 1,007,549

NOV ’12 115,922 818,623 934,545

% CHANGE 2.3% 8.6% 7.8%

6,912 216,129 223,041

6,173 201,265 207,438

12.0% 7.4% 5.4%

125,488 1,105,102 1,230,590

122,095 1,019,888 1,141,983

2.8% 8.4% 7.8%

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)

% CHANGE

310,000 320,000 330,000 340,000 350,000

360,000 370,000 380,000 390,000 400,000

RAILROAD EmpLOYmENT, CLASS I LINEHAUL CARRIERS, OCTOBER 2013 (% ChANGE FROM OCTOBER 2012)

Transportation (train and engine) 65,941(1.26%)

Executives, Officials, and Staff Assistants 9,793 (-0.26%)

Professional and Administrative 13,814 (-0.83%)

TOTAL EmpLOYEES: 163,103 % CHANGE FROm OCT. 2012: 0.41% Transportation (other than train & engine) 6,737 (1.14%)

Maintenance of Equipment and Stores 29,522 (-0.63%)

Maintenanceof-Way and Structures 37,296 (0.24%)

Source: Surface Transportation Board

EmpLOYmENT Up YEAR-OVER-YEAR, DOWN FROm SEpTEmBER Figures released by the Surface Transportation Board show Class I railroads employed 163,103 people in mid-October, up 0.41% from October 2011, but down 134 employees, or 0.08%, from September 2013. Transportation (train and engine), up 1.26%, and Transportation (other than train and engine), up 1.14%, led the year-over-year gains. Executives, officials, and staff assistants rose the most from mid-September, up a slim 0.42%. 4

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42.1% 24.9% 69.3% 15.7% 18.5% 14.9% -4.6% 100.1% 0.0% 31.9% 72.7% 52.1% 12.6% 10.3% -8.8% 18.5% -29.1%

NOVEmBER 2013 - 358,828 NOVEmBER 2012 - 348,017

CANADIAN RAILROADS TRAILERS CONTAINERS TOTAL UNITS

ORIGINATED NOV. ’12 29,415 18,857 16,966 10,810 22,732 5,482 9,923 4,814 17,874 9,713 1,229 1,285 15,601 11,078 44,355 8,983 118,900

TOTAL CARLOADS, NOVEmBER 2013 VS. 2012

CANADIAN RAILROADS ALL COmmODITIES

ORIGINATED NOV. ’13 41,811 23,546 28,721 12,511 26,939 6,301 9,467 9,633 17,871 12,813 2,123 1,955 17,567 12,215 40,459 10,641 84,255

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Industry Outlook Lac-Megantic rail service resumes

Limited freight raiL service resumed in and around lac-Mégantic, Quebec, on Dec. 18, 2013, for the first time since July, when a Montreal,

Maine & atlantic Railway (MM&a) train derailed and exploded. MM&a has pledged to carry no oil products through the town, but lac-Megantic was concerned that the pledge would falter once the railway is sold to another company. MM&a has filed for creditor protection, with assets expected to be sold before next month. among the reported bidders seeking to acquire Hermon, Maine-based MM&a is Railroad acquisition Holdings llC, an affiliate of New york-based investment firm Fortress investment group.

Cincy streetcar survives challenge

Construction on Cincinnati’s streetcar project resumed Dec. 26 following three weeks of political gamesmanship culminating Dec. 19, in a decision to let the $133 million project continue. Newly elected Mayor John Cranley, who took office Dec. 1, had vowed to scuttle the project, even after an independent analysis showed that halting construction would save little if any funds, and despite insistence from the Federal Transit administration that federal funds would have to be returned, and could not be diverted to other (road) projects. FTa asserted that $40.9 million in federal funds targeted toward the project must either be used, or returned, and could not be diverted. after much jockeying, a City Council Committee voted 5-to-0, with three abstentions, to let the project advance, with Mayor Crowley reiterating his intent to veto any such approval.But a looming 6-to-3 override vote prompted the mayor to yield, after which the City Council then in fact voted 6-to-3 to approve restarting the project. Private sector contributions were secured to meet projected operating costs for initial startup. Pro-streetcar forces during the month advanced a petition drive to put the streetcar issue to the voters for approval—for a third time—if the project was cancelled. 6

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FTA mulls MTA request for waiver The Federal Transit administration is considering a Buy america waiver submitted by New york’s Metropolitan Transportation authority (MTa) “for the Pad and Rubber Boot of a Concrete Block for a low Vibration Track System,” related to construction of the Second avenue Subway (SaS) in Manhattan. FTa’ noted MTa is making the request “on the basis of non-availability.” “with certain exceptions, FTa’s Buy america requirements prevent FTa from obligating an amount that may be appropriated to carry out its program for a project unless the steel, iron, and manufactured goods used in the project are produced in the United States,’’ the notice read in part. The two-mile, three-station first phase of the Second avenue Subway is currently expected to be completed in late 2016. The line was first proposed in 1929.

STB backs BNSF on coal dust issue The Surface Transportation Board last month said BNSF Railway has performed due diligence in minimizing or mitigating the generation of coal dust during rail movements, turning aside complaints from shippers and environmental groups claiming the railroad has been negligent. in Docket No. FD 35557 (labeled a “corrected decision”), decided Dec. 11, STB said it “finds the coal shippers challenging the safe harbor have not shown that the coal dust suppression methods set forth in the tariff are unreasonable. However, the Board finds unenforceable one provision regarding shipper liability for adverse impacts from any approved suppression methods because the language is overly broad and ambiguous.” STB said it “started this proceeding to give coal shippers the opportunity to challenge the ‘safe harbor’ provision of a tariff change by the BNSF Railway Co., which requires coal shippers to reduce the amount of coal dust lost from railcars during transit from mines in the Powder River Basin.” The challenged provision “states that shippers will be in full compliance with coal loading requirements if they apply one of BNSF’s five approved suppression methods to their railcars after loading them pursuant to the profiling requirement. alternatively, shippers may propose equally effective coal suppression methods for BNSF’s approval.” Other parties involved included: arkansas electric Cooperative Corp. (aeCC); the National Coal Transportation association (NCTa); and Union electric Co. D/B/a ameren Missouri (ameren Missouri). Union Pacific and the U.S. Department of Transportation also were involved. Coal shippers objected to BNSF’s revising its tariff structure in July 2011 “which made several changes to the requirements regarding the control of coal dust emissions from trains loaded at mines in the PRB,” STB noted.

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Market

Siemens/Cummins team lands passenger locomotive order The illinois Department of Transportation (iDOT) has issued a Notice of intent to award to Siemens Rail Systems USa for approximately 35 high-performance diesel-electric locomotives for several Midwestern and west Coast states using funds from the USDOT. iDOT is leading the multistate locomotive procurement on behalf of the illinois, California, Michigan, washington, and Missouri DOTs. The new locomotives will achieve a maximum speed of 125 mph and meet Federal environmental Protection agency Tier 4 emissions standards. They will be equipped with the Cummins QSK95 diesel engines, which Siemens is using for its U.S.-market diesel-electric locomotives. Siemens and Cummins announced their partnership on Dec. 3, 2013.

North America MTA LONG ISLAND RAIL ROAD: awarded ansaldo STS a $20.5 million signaling contract to design and furnish a new vital microprocessor-based interlocking control system as part of the liRR project to improve the signaling on a 45-mile segment of right-of-way between Speonk and Montauk, N.y. REGIONAL MUNICIPALITY OF WATERLOO (ONTARIO): Received three bids for a C$536 million (US$505 million) contract to build an initial 11.8mile light rail transit line. Consortia included grandlinq, Kitchener waterloo Cambridge Transit Partners, comprised of gracorp Capital advisors and Tricity Transit System. Seven groups initially 8

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in 2012, iDOT was involved in a multi-state procurement of 130 next-generation bilevel railcars for high-performance service, an effort led by Caltrans, that resulted in the selection of Sumitomo/Nippon-Sharyo, which is building the railcars at its plant in Rochelle, ill. The procurement includes 88 cars to be deployed on Midwest regional corridors. amtrak debuted the first 110-mph HrSR (higher-speed rail) service segment outside of the Northeast Corridor on the Chicago-Detroit corridor in early 2012. Today, the corridor features an 80-mile segment of track where trains are running up to 110 mph. illinois debuted 110 mph service on a 15-mile segment of the Chicago-St. louis corridor from Dwight to Pontiac in November 2012.

responded to the regional municipality’s Request for Qualifications. SOUND TRANSIT: Signed a $34 million contract with wabtec Corp. to design, install, test, and commission a Positive Train Control (PTC) system on the agency’s regional rail line. wabtec will provide its interoperable electronic Train Management System (i-eTMS®) equipment and installation for 16 locomotives and 18 passenger transit cab cars. TRANSLINK: awarded Bombardier Transportation a C$17 million (US$15 million) contract to provide train operations for west Coast express regional rail system in the lower Mainland region of British Columbia.

The contract includes train operations for five years, with options for three additional five-year periods.

Worldwide SAUDI RAILWAYS ORGANIZATION: awarded FreightCar america a $67 million contract to supply 500 freight cars, including cement, cereal, limestone, and ballast hoppers. VR GROUP (FINLAND): Tapped Siemens as preferred bidder for a $411 million contract to supply 80 broad-gauge electric locomotives for passenger and freight services, with options for an additional 97 units and maintenance services.

Update Supply BriefS Axion international lands composite tie order axion international Holdings, inc., producer of eCOTRaX® composite rail ties and STRUXURe® building products, has received an order worth $925,000 from “a major domestic transit line located in the South Central region” of the U.S. axion says eCOTRaX® composite rail ties were chosen by the transit system to be used for an annual spot replacement of rotted wooden ties. The purchase order will be issued to support two installation projects, with the second phase purchase order to be finalized early this year.

VTG announces expansion of its u.S. railcar fleet Hamburg, germany-based VTg aktiengesellschaft (VTg), a railcar leasing and rail logistics company, last month announced it has expanded its U.S. railcar fleet, adding 350 jumbo covered hoppers for dried distillers’ grains (DDg), acquired by its U.S. subsidiary, VTg Rail. The railcars have an average age of six years. VTg Rail President Chris Schmalbruch said, “with the purchase of these cars we now have access to another promising market, where our highly motivated team can provide top level service to the leader in the premium DDg market.” VTg entered the North american market in 2008, acquiring Texas Railcar leasing Co. VTg says it doubled the number of railcars managed with further acquisitions in the following two years, and in 2011 again doubled the size of its fleet by adding another 2,400 railcars with its acquisition of the fleet owned by SC Rail leasing america. VTg Rail now operates in the North american market with a fleet of more than 4,000 railcars. 10

Railway age January 2014

Railroads face problematic Washington landscape

U.S. Sen. Jay Rockefeller (D-W.Va.), Commerce Committee chair, could continue to push for a rollback of some Staggers Rail Act provisions.

he year 2014 will present for railroads a familiar lineup of challenges on Capitol Hill, before the STB and federal courts, and at the labor bargaining table. In the House, Transportation & Infrastructure Committee Chairman Bill Shuster (R-Pa.) says he has a bipartisan commitment to produce a comprehensive surface transportation reauthorization bill, but which also includes funding for grade crossing safety, construction of efficient roadways linking ports and intermodal terminals, and rail relocation. Freight railroads will oppose attempts to liberalize truck size and weight limits. The Highway Trust Fund has been insolvent for several years, and there is pressure to increase taxes on motor fuels, notwithstanding Republicans’ antithesis to raising taxes. Although reauthorization of Amtrak is on the agenda given expiration this year of the Passenger Rail Improvement and Investment Act (PRIIA) of 2008, a standalone bill is unlikely to move amidst interparty bickering over the future of high speed rail and longdistance trains. While there has been talk of including PRIIA reauthorization as part of surface transportation reauthorization, this also is unlikely. Thus, it will be up to the appropriating committees of both chambers to agree

on funding to keep Amtrak running. While short lines and regionals seek extension of an infrastructure renewal tax credit (H.R. 721 and S. 411, The Short Line Railroad Rehabilitation and Investment Act), Congressional budget hawks seek to abolish it. Preserving that tax credit will be an uphill fight, but shouldn’t be assumed unwinnable. Small railroads would also like the Railroad Rehabilitation and Improvement Financing (RRIF) Program to provide for a more streamlined application process for loans of less than $5 million. Surface transportation reauthorization is also a vehicle to delay implementation of PTC, which under existing legislation must be in place by Dec. 31, 2015. Railroads seek delay because of difficulties in obtaining and installing hardware and software, siting of communication towers, availability of the needed communications spectrum, and system reliability testing. Self-proclaimed captive shippers will continue to seek a rollback of Staggers Rail Act pricing freedoms and increased antitrust exposure for railroads. While it is unlikely that such language will be inserted by the Republican-controlled House, the Democratic-controlled Senate may draft its own surface transportation reauthorization bill. That would be the vehicle for Senate

Congratulations to Joseph H. Boardman, Amtrak President & CEO, for being named Railroader of the Year! from

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Update Commerce Committee Chairman Jay Rockefeller (D-W.Va.) to insert in the Senate version language to roll back some Staggers Rail Act provisions, override previous STB decisions unwelcome by some shippers, and instruct the STB to give more weight to shipper complaints. Language creating greater antitrust exposure for railroads would originate with the Senate Judiciary Committee. Additionally to be watched is potential new rail safety language in surface transportation reauthorization. The July accident in Lac-Mégantic, Que., involving crude-oil tankers—followed by other fiery explosions in Alberta, Alabama, and North Dakota, and all involving crude oil shipped by rail from North Dakota’s Bakken shale formation—have caught lawmakers’ attention. To parry Congressional action, the railroad industry has urged the USDOT to prescribe stringent new construction and retrofit requirements

Railway age January 2014

for flammable-liquid hauling tank cars, and to order an aggressive phase-out of older cars not retrofitted to the new standards. Yet to be determined is why crude oil, which is not an explosive commodity, erupted into fireballs. Investigators are examining if the crude oil contains impurities from the fracking process or from naturally occurring highly flammable organic compounds. A standalone House bill (H.R. 3040, The Safe Freight Act) to require two-person crews nationwide on freight trains is unlikely to survive, given FRA safety oversight and existing labor agreements requiring two-person crews. The STB faces a busy rail regulatory agenda. Its most significant cases likely will be as follows: • DuPont vs. Norfolk Southern is a rate challenge involving 27 commodities (including chlorine) and 130 origin/ destination pairs. Because of the complexity, some STB staff term it “the mother of all rate cases.”

• National Industrial Transportation League, Petition for Rulemaking to Adopt Revised Competitive Switching Rules, seeks a ruling allowing shippers in origin or destination terminal areas served by one Class I, and without effective truck or barge competition, to be granted access to a second railroad having an interchange point within 30 miles. • Sunbelt vs. NS is a rate challenge on chlorine shipments between MacIntosh, Ala., and New Orleans, where the traffic is interchanged with UP. • Intermountain Power Authority vs. Union Pacific is a rate challenge on coal shipped from Provo, Utah, via Utah Railway and interchanged with UP at Lynndyl, Utah. • Total Petrochemicals vs. CSX is a rate challenge involving four commodities and 120 origin/destination points. The STB Jan. 2 denied a CSX petition to hold the case in abeyance pending a CSX appeal to a federal appeals court challenging a previous market dominance determination by the STB. Four major railroads—BNSF, CSX, NS, and UP—are defending themselves against charges they conspired to fix, raise, maintain, or stabilize fuel surcharges imposed on some 30,000 shippers, through bilateral contracts, between mid-2003 and 2008. The case is unlikely to be resolved in 2014 and currently is back with a U.S. district court, which must now determine if the class action includes shippers who should not be included, and whether the class can be modified to avoid including such shippers. Most Class I’s and their labor unions will exchange Section 6 notices on Nov. 1, two months ahead of the current five-year agreement coming open for amendment. There is speculation that the carriers might not bargain as a coalition, but will seek individual agreements. Healthcare cost sharing likely will be the thorniest of bargaining issues, but carriers continue to seek agreements for one-person crews, which a federal court previously ruled could not be sought in national bargaining. —Frank N.Wilner, Contributing Editor

Houston adds mileage to its LRT Red Line

The Federal Transit Administration (FTA) joined elected officials and representatives from Harris County Metropolitan Transit Authority (MTA) last month to mark the opening of Houston’s North Line light rail transit extension. The North Line is the first of three new LRT routes being advanced by MTA for MetroRail operations,

extending the existing initial Red Line by 5.3 miles and requiring the construction of eight new stations. Starting at the University of Houston-Downtown station, the line runs north on North Main to Boundary, crosses east to Fulton, then proceeds north to Northline Commons Mall and the Northline Transit Center.

The U.S. Department of Transportation is providing $900 million toward construction of two other LRT lines, the East End Line and the Southeast Line; both are scheduled to debut in 2014. Funding for both rail lines is provided through FTA’s Capital Investment (New Starts) Grant Program. Houston’s initial 7.5-mile starter LRT line began operations in January 2004. “The fourth largest city in the United States needs and deserves a world class transit system that meets the needs of residents today and will accommodate Houston’s growing population,” said FTA Administrator Peter Rogoff. “With more than one million people expected to move to the Houston region over the next decade, public transportation is key to building a successful, sustainable, and competitive environment to do business while creating thousands of jobs along the way.”

January 2014 Railway age 13

Update CP to sell DM&E right-of-way to GWI Canadian Pacific and Genesee & Wyoming, Inc., in a joint announcement Thursday, Jan. 2, 2014, said they had “executed an agreement pursuant to which CP will sell the west end of its Dakota, Minnesota & Eastern (DM&E) line to G&W for continued rail operations.” The two rail companies said the DM&E west end encompasses approximately 660 miles of CP’s current operations between Tracy, Minn., and Rapid City, S.D., north of Rapid City to Colony, Wyo, south of Rapid City to Dakota Jct., Neb., and connecting branch lines, as well as trackage from Dakota Junction to Crawford, Neb., currently leased to the Nebraska Northwestern Railroad (NNW). Under the terms of the definitive transaction agreements, the purchase price is approximately US$210 million, subject to certain adjustments including

the purchase of inventory, equipment, and vehicles. Customers on the line ship approximately 52,000 carloads annually of grain, bentonite clay, ethanol, fertilizer, and other products. The new rail operation will have the ability to interchange with CP, Union Pacific, BNSF, and the NNW, the two railroads said. The asset sale is expected to close by mid-2014, subject to approval of the U.S. Surface Transportation Board and satisfaction of other customary closing conditions. Upon closing, the new railroad will be named the Rapid City, Pierre & Eastern Railroad. Darien, Conn.-based Genesee & Wyoming expects to hire approximately 180 employees to staff the new company and anticipates these employees will come primarily from those currently working on the rail line. CP said the agreement concludes the

comprehensive strategic review process that Calgary, Alberta-based CP launched more than a year ago on Dec. 4, 2012. CP has operated the rail line in this area since it assumed operational control of the DM&E railroad in 2008, and will continue to own and operate approximately 1,900 miles of former DM&E track following the sale of the west end. For CP, it is anticipated the sale will result in a net after-tax write-down of approximately US$240 million, subject to closing adjustments, which will be recorded in CP’s fourth quarter 2013 financial statements. The transaction is cash positive for CP and the sale will not have a material effect on anticipated future earnings. For G&W, it is expected the transaction will generate annual revenue of approximately US$65 million and be immediately accretive to book and cash earnings per share in 2014.

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Harsco Rail, Protran Technology sign pact

Harsco Rail, a division of Harsco Corp., said Dec. 16 it signed an exclusive distribution agreement with Protran Technology. Harsco Rail will be the exclusive worldwide representative and

distribution agent for Newton, N.J.-based Protran’s safety products, including Collision Avoidance items. Protran also specializes in technology development, asset monitoring,

advance warning, and voltage awareness devices, Harsco Rail said. The pact was signed on Dec. 5, Harsco Rail said. Protran Technology Vice President Shannon Bailey said, “The partnership between Protran Technology and Harsco will expedite our mutual goals of promoting safety in the rail industry through real-time advanced warning technology. We are excited to be able to leverage Harsco’s global sales network to take our products to market.” Said Harsco Rail’s Senior Director of Technology and Inspection Jim Resio, “We are excited to work together with Protran, enhancing our respective product and service offerings to the market. Protran products are a great complement to Harsco’s technology offerings, and this partnership will ultimately improve the safety and productivity for our customers.”

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January 2014 Railway age 15

Update

The Federal Railroad Administration launched a 60-day comprehensive safety assessment of MTA Metro-North Railroad on Dec. 16, 2013, in response to the crash Dec. 1 that killed four and injured 63. Operation Deep Dive “will exhaustively review Metro-North’s compliance with federal regulations, its procedures

and practices, and its safety culture,” FRA said. On the same day, U.S. Department of Transportation technical and human factors experts began a comprehensive review and assessment of safety-critical procedures and processes at MetroNorth. The rail safety team began a review that included:

• Track, signal, and rolling stock maintenance, inspection, and repair practices. • Protection for employees working on rail infrastructure, locomotives, and railcars. • Communication between mechanical and transportation departments at maintenance facilities. • Operation control center procedures and rail traffic controller training. • Compliance with Federal Hours of Service regulations, including fatigue management programs. • Evaluating results of operational data to measure efficiency of employees’ execution and comprehension of all applicable federal regulations. • Locomotive engineer oversight. • Engineer and conductor certification. • Operating crew medical requirements.

W o r l d ’s L a r g e s t C r a n k s h a f t M a n u f a c t u r e r a n d R e - M a n u f a c t u r e r

H e r m i t a g e , PA U S A 1 6 1 4 8 Te l e p h o n e 1 - 7 2 4 - 3 4 7 - 0 2 5 0 w w w . E l l w o o d C r a n k s h a f t G r o u p . c o m 16

Railway age January 2014

Joseph M. Calisi

FRA diving deeper into MTA Metro-North

Canada cracks down on crude-by-rail shippers Canada’s government has ordered Transport Canada to crack down hard on crude oil shippers who they say continue to evade a directive that they test the contents of tank cars before classifying them as hazardous materials for crude by rail (CBR) transportation. Shippers are attempting to sidestep the testing requirement by simply classifying all crude as the most volatile “Packing Group I” instead of specifically grading the crude according to flash point, corrosiveness, and chemical composition, according to investigations by Canada’s Globe and Mail. Canadian Transport Minister Lisa Raitt also said existing hazmat classifications are inadequate for the highly volatile crude being extracted by fracking from the Bakken oil field that straddles North Dakota and Saskatchewan and also includes parts of Montana and Manitoba.

The presidents of Canadian Pacific and CN have publicly urged Transport Canada to tight the regulation of crude oil shipments. As common carriers, the railroads have no legal right to refuse any consignment that appears to meet regulations with respect to classification and container type. Railroads and crude oil shippers also will be required to permanently deploy emergency response teams and equipment along Canada’s oil train routes. Such “Emergency Response Assistance Plans” were implemented for trains carrying propane and chlorine after a 1979 tank car explosion west of Toronto. The new enforcement actions are meant to reduce the chances of another conflagration such as the July 6, 2013 explosion of a runaway Montreal, Maine & Atlantic train carrying highly volatile North Dakota crude in the Quebec resort community of

Lac-Mégantic. It also follows harsh criticism by Canada’s auditor-general accusing Transport Canada of stubborn laxity in regulating the country’s sprawling railroad system. In demanding an action plan, Transport Minister Raitt let slip an unprecedented rebuke of her own department. “Unfortunately, in the history of Transport Canada, we have seen conversations and consultations that seem to go on for 10 years, and 15 years,” Raitt said. “So we gave them the end of January as the deadline.” Raitt wants a fundamentally fresh regulatory regime for CBR in place by mid-2014. Such tough talk is uncharacteristic of Canada’s Conservative government, whose power base is the energy-rich province of Alberta. It would also be unusual for the Canadian government to initiate domestic rail regulation ahead of U.S. authorities.

Building Expectations

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www.railworks.com | 866.905.7245 January 2014 Railway age 17

Update Two Canadians join Railway Age as Contributing Editors Railway age has added David Thomas and John Thompson to its stable of Contributing editors. DAViD ThomAS is a reporter who has covered government and society since graduating from Ottawa’s Carleton University with degrees in political science and journalism. He has written for National geographic, Maclean’s, The globe and Mail, The gazette, and The Canadian Press news agency from postings in Ottawa, Montreal, Quebec City, Toronto, and london, england. “Railroading has been a personal fascination since a childhood timed fortunately enough to witness the golden years of steam on the late-to-dieselize Canadian National and Canadian Pacific,” he says.

Railway age January 2014

John ThompSon was born and grew up in Toronto, and studied journalism at the University of Toronto and, later, creative writing at Ryerson University. He joined the senior staff of the Toronto Transit Commission in 1977, subsequently becoming assistant editor of Coupler, the TTC’s employee magazine, as well as performing public relations and archival duties. John has been a freelance writer and editor for 20 years, for the Toronto Star newspaper and numerous trade magazines (including Railway age). He resides in Hamilton, Ontario.

Watching Washington FRank n. wilneR

Amtrak CEO holds to focus on the future

o economists and financial analysts whose obsession is return on investment, opinion leaders advocating smaller government, and corporate executives captivated by stock prices, Amtrak President Joe Boardman is surely a curiosity. Yes, Boardman maintains a focus on income statements and balance sheets, but he is not single-minded. He considers equally important a responsibility to provide affordable and reliable intercity rail mobility to rural families, college students, vacationers, an aging population, city dwellers without automobiles, and a growing number of citizens now signaling that they clearly prefer public transportation. While such concerns are lost on lawmakers awash in political campaign contributions from those demanding lower taxes and greater profits—“the feeding of Wall Street while dismantling Amtrak,” he calls it—Boardman is relentless in educating members of Congress on public opinion polls, validated by Amtrak ridership gains, that voters even in hard-core conservative districts are supportive of federal financial support for Amtrak. Boardman’s unswerving message to lawmakers is that the “most essential debt to be paid down is a moral obligation to the future”—a conviction he believes is lacking among many politicians, whom he says ignore a lesson of history that made America a shining city on a hill. Boardman advocates they recommit themselves to advance and fund public works projects that have been the foundation of America’s financial, cultural and global strength—transcontinental railroads, inland waterways, an interconnected air travel network, urban transit, the Interstate Highway System, and, of course, a world-class national intercity rail passenger network.

To understand Boardman requires knowing the principles and pragmatism making him pulse—the kid who left the dairy farm in upstate New York to enlist in the Air Force at the height of the Vietnam war; the matured veteran who returned home to earn undergraduate and master’s degrees in agricultural economics and management science; the entrepreneur who built small upstate New York motor coach operations into a 300-bus fleet; and the fully matured adult, the publicservice flame still burning fiercely, who left the more lucrative private sector to become a New York State transportation commissioner before being drafted as George W. Bush’s Federal Railroad Administrator, and, in 2008, Amtrak’s 10th president.

Boardman’s message to lawmakers: The “most essential debt to be paid down is a moral obligation to the future.” “There is today a political inability to avoid being distracted by issues of the moment rather than the issue of the century, which is not to rebuild other nations, but to rebuild and expand our domestic infrastructure that is literally crumbling,” Boardman says. He bristles at those who ignore the capital construction and reconstruction requirements of all modes of transportation and, instead, wallow in the

negativity of tearing down institutions such as Amtrak and public transit. His vision is absolute: A modern, world-class multimodal transportation system is as essential to Americans’ well-being as are the unclogged arteries of their bodies. Boardman advocates Congress create a multi-year, multimodal trust fund in a single bill rather than the current individual-mode funding exercise. “It’s people, not the horses of Wall Street, on which Congress should focus,” says Boardman, who spends disproportionate time trudging to Capitol Hill begging annual subsidies, always short of capital needs, and trailing inflation, amidst a stampede of negative reactions toward public works. Amtrak, he says, “has been living on investments made as far back as the Civil War.” Its tunnels beneath Baltimore and the Hudson River date to the 19th and early 20th centuries, and much of Amtrak’s Northeast Corridor electrification can be traced back to the 1930s. Congress and state legislatures “know our nation’s infrastructure is falling apart and they must find the courage to figure out a solution to 21st century needs,” Boardman says. Amtrak, he says, is a global leader in recovering the costs of transportation it provides, recovering 88% of its operating costs from revenue while running 300 trains daily, serving more than 500 communities. He adds, “Mobility means connecting Americans in rural and urban areas to the rest of the nation and globe.” While he agonizes whether today’s lawmakers have the conviction to begin paying down the moral obligation on the future, Boardman remains undeterred in educating, advocating, and coaxing them to refocus on funding America’s multimodal infrastructure. January 2014 Railway age 19

Railroader of the Year

All AboArd with Joe boArdmAn Amtrak’s second-longest-serving president and CEO presides over an operation whose services are growing in demand, requiring an increasing level of investment and support. ailway Age’s 51st Railroader of the Year, Amtrak President and Chief Executive Officer Joseph H. Boardman, is the first Amtrak chief executive since the legendary W. Graham Claytor Jr. in 1989 to be so honored. Boardman, who came to Amtrak after his tenure as Federal Railroad Administrator, has been chief executive for the past six years, far longer than any of his post-Graham Claytor predecessors. Under his watch, Amtrak has posted record ridership and revenue, ordered a new fleet of electric locomotives for the Northeast Corridor and new single-level long-distance cars,

20 Railway age January 2014

developed a long-term strategy for additional new rolling stock acquisitions, and is effectively administering major capital programs. Boardman has a sustainable vision for the future of U.S. intercity passenger rail, which includes higher-speed services. He will be honored on March 11, 2014, at Chicago’s Union League Club. On Dec. 16, 2013, Boardman and Railway Age Editor-inChief William C. Vantuono got together aboard Amtrak Amfleet business car 10001, the Beech Grove, for a “moving” interview between Washington, D.C. Union Station and Penn Station New York.

Photo courtesy of Amtrak

By william C. Vantuono, editor-in-Chief

RailRoadeR of the yeaR

You are the first Amtrak president since the legendary W. Graham Claytor Jr. was selected way back in 1989. Your thoughts? BOARDMAN: I never knew Graham Claytor, but he certainly is a memory here. There’s still a love for and an understanding and respect for Claytor. I’m humbled that I’d be selected for something like this. I’m not an awards type of guy naturally. I know a lot of people aren’t, but I appreciate the fact that it’s really about the railroad. The women and the men here really get the job done. We’re making improvements on a regular basis and that’s a good thing for Amtrak. RAILWAY AGE:

RA: You’ve

seen steady improvement—as you well know, record ridership numbers, record revenues, and demand for the service is growing and growing. BOARDMAN: People today, I think, are ahead of their politicians. I’m really kind of quoting our former chairman Don Carper when I say that he really saw in Illinois the demand, the change, that was happening in the mobile Midwest for delivering something really new for the people, a different mobility. We’re really happy about being part of that. RA: You

are from upstate New York, originally from a farming community? BOARDMAN: That’s right. A place called Tabor, N.Y., which is just outside of Rome, where I still have my home, my family, in that whole area. I grew up with five brothers and two sisters. We operated a commercial dairy farm, my dad and my mother and my grandparents and the whole line of family, so I really learned how to work early. You became productive in your single digits and then really began to do an adult’s work by the time you were 11 or 12 years old. RA: So

from that background tell us how you transitioned from there to transportation. You’ve spent most of your career in transportation. BOARDMAN: It’s my whole career other than the farming time and the military service. Let me tell you one story. My dad walked one day with me out of the barn and we looked at Route 69, which goes by our farm. A Greyhound bus went by. There weren’t many people on it, and I thought, that’s kind of a waste of money. My dad, who had grown up in the city of Rome, really said you need to understand that there are a lot of people that need to get around that don’t have a car, that don’t have a way to get around, and it got me thinking about that fact and the necessity for connections. In 1992, after I had been living all over the place and moved back to Rome, it really was because we had a canal, we had a railroad, we had a bus system, we had connectivity to the rest of the world. So that really had me interested right from the beginning in transportation. My wife says, anything with a motor and wheels and Joe’s interested. It can be trains or trucks, whatever. My college years saw me driving a bus after I got out of the military. That really started me in transportation.

RA: In what branch of the military did you serve? BOARDMAN: I was in the Air Force. I volunteered

when I was 17, in 1966. I think it was in large part because I didn’t want to do the haying that summer on the farm. RA: Your college background? BOARDMAN: I returned from Vietnam

in 1970 and applied to Cornell University. I decided if I didn’t get accepted there I would become a state trooper instead of being a collegeeducated kid. Darn, they accepted me—which was wonderful! My grandfather and uncles had all gone to Cornell. They were veterinarians so I went there to be a veterinarian. RA: You

went from veterinary medicine to transportation. How did that happen? BOARDMAN: Well, it took me a year to tell my family that I wasn’t going to become a veterinarian, since they were all proud of that. But I really enjoyed driving a truck and a bus part-time for the Cornell campus bus service while I was in college. I changed, after my first semester, to an economics degree, and my degree is in agricultural economics. It was that experience that led me to become the manager of the Rome Transit System when I was finished with college. RA: And

that eventually evolved into Commissioner of Transportation for New York State? BOARDMAN: Quite a few years in between, but yes. Transit—putting butts in seats—has occupied most of my career. Safety is the other piece. Eventually, I started my own company. I was my own first employee in 1988 in Duchess County, N.Y. We started a connection to the railroad in Duchess County, and by 1995, when George Pataki became governor, I was the Assistant Transportation Commissioner for Transit, and then moved up to Commissioner. I stayed there until I got a call from the Bush Administration to be the Federal Railroad Administrator, when we got involved with Amtrak rebuilding the Turboliners. So I came down to Washington to do something different with the FRA. RA: What

would you say were your most important accomplishments at the FRA? BOARDMAN: Any time you come into a job like that you need to understand where you are, where things are going, how you provide the leadership that’s necessary. I looked at a fantastic staff that really knew what they wanted to do, whether it was Grady Cothen or somebody else in the operation; Peggy Reid, who’s with me at Amtrak at this point in time; or DJ Stadtler. The folks that really produced for FRA had an agenda. That agenda was safety. What I found when I got there was a surprise—I wasn’t going to be the appointee to the Amtrak Board like I had thought. The Transportation Secretary at the time, Norman Mineta, had somebody else on the Amtrak Board. So I set myself in a different direction, and that was safety. I paid close attention to the safety agenda. One of the pieces of that agenda came true with Positive Train Control January 2014 Railway age 21

RailRoadeR of the yeaR

Amtrak’s Chicago hub is home base to many long-distance trains, as well as numerous statesupported intercity services.

“I’ve taken lot of jobs where there were major challenges, whether it was the Federal Railroad Administration or whether it was some of the transit systems I operated and managed over the years. Each one had a set of circumstances that really gave me a lot of learning opportunities and understanding.”

RA: Was

it your aspiration to some day run Amtrak? There seems to be a natural progression here. BOARDMAN: I’m a very private person generally and don’t tell people what my plans are, but I’ll be 65 on Monday (December 23). I didn’t expect it when it occurred. I thought that I was ending my career with New York State DOT, then I thought I was ending my career with the end of the Bush Administration with FRA, but here I am, still part of delivering something I think is important to America. RA: You’ve been at it for five years. BOARDMAN: Five years on the 26th

of November. I started in 2008 the day before Thanksgiving. I stayed on the ground at Amtrak during Thanksgiving Day. 22 Railway age January 2014

RA: I remember that. BOARDMAN: It was a

good thing. It was a positive thing. Amtrak has great people. It has been observed by many that the presidency of Amtrak is maybe the toughest job in railroading, because you have so many constituents. You have your passengers. You have your employees. You have Congress, which may or may not cooperate, and you have an Administration that may or may not be favorable to passenger rail. Would you agree with that assessment? BOARDMAN: It’s interesting. I’ve taken lot of jobs where there were major challenges, whether it was FRA or whether it was some of the transit systems I operated and managed over the years. Each one had a set of circumstances that really gave me a lot of learning opportunities and understanding. I’m really glad that I wasn’t at Amtrak as the CEO when I was a lot younger than I am now because now I have a certain element of freedom in what I need to do. I don’t RA:

William C. Vantuono

and the 2008 safety legislation. When Mary Peters, who I’ve known for years, became Transportation Secretary, she appointed me to the Amtrak Board as her representative.

RailRoadeR of the yeaR

Joe Boardman is Railway Age’s 51st Railroader of the Year. Modern Railroads magazine founded the award, one of the most prestigious in the railroad industry, in 1964 as the “Man of the Year.” Railway Age acquired Modern Railroads in 1991 and has presented the award annually since then. Railroader of the Year recipients under Modern Railroads:

Recipients under Railway Age:

1964: d. w. Brosnan, Southern Railway System

1992: william h. dempsey, association of american Railroads

1965: Stuart t. Saunders, Pennsylvania Railroad Co.

1993: Raymond C. Burton, Jr., ttX Co.

1966: Stuart t. Saunders, Pennsylvania Railroad Co.

1994: l. S. “Jake” Jacobson, Copper Basin Railway

1967: louis w. Menk, Northern Pacific Railway

1995: edwin Moyers, Southern Pacific transportation

1968: william B. Johnson, illinois Central Railroad

1996: Robert d. Krebs, at&Sf, and gerald grinstein, Burlington Northern

1969: John w. Barriger, Missouri-Kansas-texas Railroad 1970: John S. Reed, atchison, topeka & Santa fe Railway

1997: Paul M. tellier, Canadian National

1971: Jervis langdon, Jr., Penn Central transportation 1972: Charles luna, United transportation Union

1999: edward a. Burkhardt, wisconsin Central transportation Co.

1973: James B. germany, Southern Pacific transportation Co.

2000: the Railroad worker (award presented as “Railroader of the Century”)

1974: l. Stanley Crane, Southern Railway System

2001: Michael R. haverty, Kansas City Southern

1975: frank e. Barnett, Union Pacific Railroad

2002: e. hunter harrison, Canadian National/illinois Central

1976: dr. william J. harris, Jr., association of american Railroads

1998: david R. goode, Norfolk Southern Corp.

2003: Richard K. davidson, Union Pacific Railroad

1977: edward g. Jordan, Conrail

2004: Robert J. Ritchie, Canadian Pacific Railway

1978: Robert M. Brown, Union Pacific Railroad

2005: david R. goode, Norfolk Southern Corp.

1979: theodore C. lutz, washington Metropolitan area transit authority

2006: Richard f. timmons, american Short line & Regional Railroad association

1980: John g. german, Missouri Pacific Railroad Co.

2007: william e. wimmer, Union Pacific Railroad

1981: lawrence Cena, atchison, topeka & Santa fe Railway

2008: Stephen C. tobias, Norfolk Southern Corp.

1982: a. Paul funkhouser, family lines Rail System

2010: Matthew K. Rose, BNSf Railway

1983: l. Stanley Crane, Conrail 1984: hays t. watkins, CSX Corp.

2011: Charles w. “wick” Moorman, Norfolk Southern Corp.

1985: John l. Cann, Canadian National

2012: david l. Starling, Kansas City Southern

1986: Raymond C. Burton, Jr., trailer train Co.

2013: James R. young, Union Pacific Railroad

2009: Michael J. ward, CSX Corp.

1987: willis B. Kyle, Kyle Railways 1988: darius w. gaskins, Jr., Burlington Northern 1989: w. graham Claytor, Jr., amtrak

2014: Joseph H. Boardman, Amtrak

1990: arnold B. McKinnon, Norfolk Southern 1991: Mike walsh, Union Pacific Railroad January 2014 Railway age 23

RailRoadeR of the yeaR

think about where I might go in the future. That has helped me understand all the different pressures and directions, and the number of people that we have to satisfy or try to satisfy, number one being the Amtrak customer. Safety is the foundation of any transportation system, because if people don’t trust the safety of our operation, our company, customers aren’t going to flock to the trains. I also have a very important role in increasing revenues and reducing cost. Congress wants that; so does the public. They want to see a system that really produces efficiencies and provides a better service. Those are difficult things to do but they’re not insurmountable, and we’re seeing that today. We’re buying equipment, we’re increasing our revenues, we’re increasing our ridership, we’re changing our direction, we have a strategy. There was a necessity to have somebody here long enough. When you think about the fact that, at five years, I’m the second-longest-term CEO at a 43-year-old company, which indicates that there was way too much turnover in that period of time. Graham Claytor 24 Railway age January 2014

was here long enough to establish a direction and make improvements. That’s what Amtrak has really needed, with the work that the women and men have done, with the other senior leaders, and the Board. I have a great board, one committed to making changes. There are going to be some future opportunities because our debt is really to the future—not to the past. We often look at the age of our infrastructure, like the Baltimore & Potomac tunnels, built right after the Civil War. Or the Canton Viaduct, built around 1835. These are things that were invested in for the future of railroading, and we’re still using them. We need to make those investments here for the future. RA: When

you came to Amtrak five years ago—and of course you had exposure to Amtrak as FRA Administrator and in your previous positions in New York—what did you see as things you wanted to accomplish? What did you see that needed to be changed or improved? BOARDMAN: When you first come on board you have a

Photo courtesy of Amtrak

“Safety is the foundation of any transportation system, because if people don’t trust the safety of our operation, our company, customers aren’t going to flock to the trains. I also have a very important role in increasing revenues and reducing cost. Congress wants that; so does the public.”

RailRoadeR of the yeaR

Amtrak’s Cascades Talgo services are well-patronized by travelers in the Pacific Northwest.

“The debt you owe to the future is the people you select now, the processes you put in place, the strategy you have now, the values you’ve developed, the culture change to provide for the future. It’s all part of trying to be responsive to those who are sometimes overly critical and looking for a knee-jerk response.”

26 Railway age January 2014

this company will meet the 2015 PTC deadline, because we made early decisions when I got here to make that happen. For ACSES (Advanced Civil Speed Enforcement System on the NEC), we are adding another 1,200 miles of track, and also making sure that it’s operable with ETMS, the GPS based-system for the freight railroads. RA: You

have to equip your locomotive fleet with ETMScompatible technology. How is that going? BOARDMAN: We’re moving along with it. We’ll make the deadline on our own services, and we need to make sure we’re doing it right with the freight railroads, to the extent that they get the radio spectrum, which is still in question at this point in time, and whether they can get all the equipment lined up logistically in a timely fashion and make those investments. RA: And your overall relationship with the freight railroads? BOARDMAN: We have an excellent relationship with the

Joseph M. Calisi

different impression than you have as you move along. I think that’s true in any role that one steps into. I certainly wanted to increase ridership. One of the things that I had been advocating for during the Bush years was to increase the investment and get all of the equipment that was on the sidelines back on the track. In 2007/2008 there was a crisis that we had to deal with as a nation, our financial crisis, but also a fuel cost crisis, and those kinds of things seem to keep recurring. Our service was in demand, but could we deliver it? So one of the first things I did when President Obama made some additional money available was to rebuild everything I could possibly rebuild, everything at Beech Grove, our longdistance shop, and at Bear and Wilmington (Del.) for our Northeast Corridor services, so that we could increase the capacity for our trains. We accomplished that goal under the deadline of the stimulus program, and we also met a deadline of rebuilding some of the bridges and other infrastructure along the Northeast Corridor. The other thing was my desire to get Positive Train Control done. My expectation is that

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RailRoadeR of the yeaR

A major piece of Amtrak’s NEC Gateway Project is quadruple-tracking the NewarkNew York right-of-way and constructing two new tunnels and a second Portal Bridge (pictured).

“Before we can get to 220 mph we’ve got a lot of building to do. We also have to begin to supplement and then replace the Acela Express trains. We’ve got bottlenecks going into New York. Everybody wants to be in New York, the world’s financial capital. If they’re going to stay there this has got to get fixed.”

RA: Would

you say that your biggest challenge with running on the freight rail system is dealing with their own problems in trying to add enough capacity? Because, like Amtrak, their services are in growing demand. Just look at all the oil trains on the BNSF northern corridor. That business has increased exponentially, and no one really expected it. BNSF goes from almost nothing to 650,000 barrels of oil a day. How do you deal with it? BOARDMAN: At your conference, Passenger Trains on Freight Railroads, I was listening to [BNSF DirectorPassenger Train Operations] Rich Wessler talk about the transit operation in Minneapolis, and whether they would agree to that today had they known they were going to have that kind of growth. One of the biggest challenges for freights is continuing to have the relationship they had with 28 Railway age January 2014

Amtrak in 1971 when we took over their passenger services, which helped the freight railroads at that point in time. The new leaders at the freights don’t really understand that they were not just a freight railroad back then, which is how they think of themselves today. There is still a national need to have connectivity with passenger railroads coast-to-coast and border-to-border. That relationship, that partnership, with the freight railroads is a continuing challenge. There are have good leaders coming up in the freight railroads, and we need to make sure that they understand that connection, that relationship, still needs to be strong. RA: Your

relationship with the states: Under PRIIA, there’s been a major change where the states are expected to pay most of the operating costs. It took a while to get there, and it’s a big change for Amtrak, but it seems as though it has worked out well. BOARDMAN: The states are going to pay about 85% of [operating] costs. There’s still going to be about a 15% subsidy, if you want to call it that, or “availability payment” from the feds into our state operations. With a difficult transition I think it’s important that we move with the states beyond that at this point in time and that we do our jobs well for the

Illustration courtesy of Amtrak

freights. They go far beyond for us in many cases. We fight with them about on-time performance and we want to be running first like we’re supposed to be and all those kinds of things, but we’ve got good solid people in these freight railroads that understand our needs, that look at what we need to get done, and what they need to get done, and work with us.

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RailRoadeR of the yeaR

Penn Station New York is at capacity, handling Amtrak, NJ Transit, and Long Island Rail Road trains on just 22 tracks fed by six tunnels.

“Penn Station New York is the biggest bottleneck on the Northeast Corridor. We only get 55 hours of downtime per week to maintain or replace anything in that station. That’s from Friday night to Monday morning. The next big thing other than undercutting the railroad is to advance what we call the Gateway Project.”

30 Railway age January 2014

don’t recognize that we need to stop that and join in common cause to move forward on the debt we owe to the future—our grandkids and beyond our grandkids. RA: You

had a great piece in today’s USA Today where you talked about that very subject within the context of PTC. A lot of us feel there’s too much negativity. Everybody talks about what is wrong but not what needs to be done. BOARDMAN: It’s not just PTC and improvement in rail. It’s a new air traffic control system. It’s the need to rebuild the bridges in this nation. We’ve got 200,000 bridges with 140,000 of them that need repair and replacement. Those are things that we need to get at and do together. We need to improve our ports. My understanding is that when the Panama Canal opens [to bigger cargo vessels], the equipment at East Coast ports to unload containers off ships is not going to be sufficiently long enough to reach out and grab them. So we’re talking about the necessity to think about a balanced transportation system—highways, railroads, aviation, ports. Our nation is not well-served by those who are lobbying and demanding for only one source, one piece of the infrastructure that needs to be rebuilt. You can add in the water systems, the sewer systems, the electric grid. We need to

Joseph M. Calisi

customer. Our partnership with the states had some strains. I had to be the bottom-line guy at the end, making sure this happened, and that required me to take some pretty strong positions at times. I had a great staff, with DJ Stadtler and Joe McHugh really working in trying to satisfy all the concerns. One of the main challenges for Amtrak is that everybody that we deal with is sovereign except Amtrak in terms of their demands upon us. Whether it’s a state or one of the Congressional committees, everybody has an expectation, and we can’t really deliver every expectation for everybody. We’re not doing too badly in delivering good service for the states and good service for Congress. What they don’t get is that, at 88%, we are probably number one in the world on covering our operating costs. That includes auxiliary revenues from real estate. With technology, there probably isn’t anybody else that has e-ticketing. We worked with Apple Computer to make that happen with their devices. Our board chairman, Tony Coscia, went to France and visited with SNCF. He was surprised that, at the time, they didn’t have e-ticketing, and they’re one of the global leaders in passenger rail. We in this nation have become so darn negative in tearing down institutions, whatever they are, and are expert at it. We

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RailRoadeR of the yeaR

build infrastructure to grow this nation and grow our economy and it’s not just railroads. RA: When people talk about Amtrak and operating or capital support they use the word subsidy, which has a negative connotation. I like to think of it as an investment. How do you bridge that gap and perception? That’s always been a struggle. BOARDMAN: I attended a couple of hearings in Congress. One was a T&I Committee hearing where we talked about the Northeast Corridor and the investment in high speed rail and the future of using public-private partnerships and private investment. The argument that kept going back and forth with Congress was that if there was an expectation for private investment, the private investor would need to make sure that it knew how much revenue was going to come in. If that revenue didn’t come in—let’s say it’s based on the total number of passengers or trains or whatever—then there would have to be an availability payment to make sure that the private investor didn’t lose any money. So, there would 32 Railway age January 2014

be an availability of service that wasn’t being used by the public but would still need to be paid for. That’s another way of saying subsidy. When we’re talking about the need we have for an operating subsidy, or operating availability payments, it’s for long-distance service, the connectivity across our nation. Those who support long-distance trains argue that the Northeast Corridor needs as much subsidy as the longdistance trains. That’s not the right argument. The Northeast Corridor needs [capital] investment in its infrastructure for the future. For the long-distance services, those investments in most cases are being made by the freight railroads. Those freight investments are in the billions. We need that investment since we operate on those railroads and we pay the private railroads for the use of their tracks, plus incentives for on-time performance. They argue that we ought to be paying more. I understand that. Yet, what Congress and the public need to get together on is the fact that Amtrak has about 525 stations across the country, and at more than 300,

William C. Vantuono

“I continue to tell employees the truth about where we are. I came from the Bush Administration, so the expectation was that I was going to be negative for labor, and that’s just not true. It never was true, but our employees needed to find that out through their own experience. When they did, there were changes.”

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RailRoadeR of the yeaR

“Whether it’s a state or one of the Congressional committees, everybody has an expectation, and we can’t really deliver every expectation for everybody. We’re not doing too badly in delivering good service for the states and for Congress.”

34 Railway age January 2014

Capital investment looking forward five years or so: Amtrak has a long-term plan for equipment and facilities. What can the rail supply industry look forward to? They know what to expect from the freight railroads. What can they expect from Amtrak in terms of investment beyond what you’ve already done with the electric locomotives and some of the improvements being made on the Northeast Corridor and elsewhere? BOARDMAN: Before we can get to 220 mph we’ve got a lot of building to do. We also have to begin to supplement and then replace the Acela Express trains, which are our high speed trains today, so you’ll see an RFP going out within the next few weeks for up to 28 new trainsets for the Northeast over the next five or six years. There’s a major investment we believe we can pay for, frankly, with money that comes from the Northeast Corridor, both on the investment that we can make in those trains and also in the ability to get future revenue that really is going to provide not just a payback for the investment, but also an additional RA:

Matt Donnelly

we’re the only [public transportation] service into those communities. The economy in those communities are dependent in many ways upon connectivity to rail. To lead, you have to have logic and compassion, and a clear direction of where you’re going. What isn’t always expressed is the fact that the middle of our country in a lot of ways today needs an ability for those in my generation—I’ll be 65—and those in front of me in age to be able to travel other than on Interstate highways, because the buses aren’t there and the ability to go see their kids on one of the coasts or their grandkids or their great grandchildren is brought to them by Amtrak. Their neighbors can take them 100 miles to an Amtrak station, but they can’t drive them the 600 or 800 or 1,000 miles to the coast. So there’s a great deal of value that we’re adding to this nation. It’s just like when we brought electrification to rural farms, understanding that it was never going to pay for itself in of itself but it brought a much better life to the rural communities across this country. Amtrak does much the same thing.

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dollars to make more capital investments in the Northeast Corridor. One of the things we’d like to do if we could sooner rather than later is to undercut the railroad between Washington and New York, which we believe is getting rougher than it should be. It hasn’t been done in a while. We’ll completely undercut the main lines, the high speed lines, for about $200 million dollars. It would take three to four years to get it done because when you rebuild these things you’ve got to run the railroad while you’re doing it. Penn Station New York is the biggest bottleneck on the Northeast Corridor. We only get 55 hours of downtime per week to maintain or replace anything in that station. That’s from Friday night to Monday morning. The next big thing other than undercutting the railroad is to advance what we call the Gateway Project. RA: The two additional tunnels and Portal Bridge. BOARDMAN: The entire right-of-way from Newark

York. After the recent problems that we’ve seen in 36 Railway age January 2014

to New

Connecticut, the state’s property run by Metro North, I’m hearing from the business community that we have to figure out the least expensive way to reduce the time travel between New York and Boston—fix 58 miles of railroad so that we can run at 110 miles per hour. We’ve got bottlenecks going into New York from the north and south. That’s got to get fixed. Everybody wants to be in New York, the financial capital of the world. If they’re going to stay there this has got to get fixed. New Jersey Transit is a big player. We had a lot of excess capacity back in 1976. We don’t have that today. The Long Island Rail Road’s dwell time in the station is pretty short in the morning because they go to Westside Yard and park their trains. New Jersey Transit doesn’t have a yard other than Sunnyside, which is Amtrak’s yard, and we share that space. We only have the two tunnels under the Hudson River, and we’ve got four going into Long Island and into Sunnyside yards [under the East River], so we really need to have those two new tunnels. We need high density signal systems in the

Joseph M. Calisi

“We have an excellent relationship with the freights. They go far beyond for us in many cases. We fight with them about on-time performance and we want to be running first like we’re supposed to be and all those kinds of things, but we’ve got good solid people in these freight railroads that understand our needs.”

RailRoadeR of the yeaR

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“I plan on being here for as long as I can contribute. I want to help provide for mentoring and succession for those behind me. I’ve got a great team, people who are really delivering.”

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RailRoadeR of the yeaR

cApitAl plAn tARgets infRAstRuctuRe, Rolling stock investMents Amtrak’s five-year capital program proposals through 2017 total just over $10 billion. the majority of this program is dedicated to infrastructure improvements, acquisition of rolling stock including exercising buyout options on leased equipment, overhauling existing rolling stock, and technology investments. the capital plan calls for 79% of available funding to come from federal appropriations, with the balance being funded by a variety of special federal grants, financing under the RRif (Railroad Rehabilitation and improvement financing) program, and from state and local entities. a significant part of the capital plan is dedicated to the first phase of amtrak’s master plan for high speed rail in the Northeast Corridor. this involves acquiring new high speed train sets to permit additional frequency on the NeC for acela express services, and improving and enlarging high speed maintenance and layover facilities to support expansion of the high speed fleet. taking this out beyond 2017, amtrak intends to complete infrastructure improvements to provide additional NeC capacity and enable doubling of acela express frequencies between washington d.C. and New york. among the projects is redevelopment of the landmark farley Post office Building into the new, $270 million Moynihan Station (below), though the Port authority of New york & New Jersey is providing much of the funding.

funding sources for this ambitious investment plan are expected to come from federal general Capital ($7.9 billion), Superstorm Sandy capital relief appropriations ($220 million), New york-New Jersey high speed rail grants ($416 million), RRif loans ($359 million), dot early buyout grants ($110 million), internal amtrak funds ($63 million), department of homeland Security grants ($51 million), and state, local, and other funds ($899 million). the main potential stumbling block to all of this investment is the fact that amtrak does not have a stable and reliable source of annual capital funding. every year, Joe Boardman—as his predecessors have done over the years—and his staff will have to ask Congress and whatever Presidential administration is in power at the time to support these investments. out of all of amtrak’s many constituencies, the United States Congress has traditionally been the most difficult to deal with. that’s what makes the presidency of amtrak one of the toughest jobs in railroading.

Illustration courtesy of Amtrak

the fiscal year 2013 capital plan totaled $1.3 billion, $628 million of which was dedicated to track and other infrastructure, $314 million to rolling stock acquisitions, and $235 million to rolling stock overhauls and engineering. the $2.5 billion fy2014 capital program calls for $1.4 billion in track and other infrastructure, $608 million in rolling stock acquisitions, and $332 million in rolling stock overhauls and engineering.

fy2015 projects $2.3 billion in total capital investment, with $1.4 billion for track and other infrastructure, $266 million for rolling stock acquisitions, and $375 million for rolling stock overhauls and engineering. amtrak plans to invest $1.8 billion in fy2016, with $1.1 billion for track and other infrastructure, $326 million for rolling stock acquisitions, and $290 million for rolling stock overhauls and engineering. the final year of the five-year capital program, fy2017, totals $2.2 billion. track and other infrastructure will get $1.3 billion; rolling stock acquisitions, $468 million; and rolling stock overhauls and engineering, $232 million. other investments during this five-year period involve technology programs, customer experience programs, security programs, and environmental remediation.

38 Railway age January 2014

RailRoadeR of the yeaR

East River tunnels. We’ve got a good partnership with the MTA, with [Chairman] Tom Prendergast. He was at our last board meeting. We’re talking about how we can work together. The railroads have not always worked well together, and that’s absolutely critical for the future, especially on the passenger side, and for passenger with freight. It’s a necessity for our nation to begin to find ways to work together, to advance what we know is going to be needed for the future. RA: We’re about to go into the second tunnel in Baltimore. BOARDMAN: These are the tunnels that were built just after

the Civil War. We can make major improvements here, but those are major dollars well into the billions. We’re in the planning stages, working with Maryland and Baltimore to make those changes in the tunnels, in the station, in the connections. All throughout the Northeast Corridor there’s an interest in improving rail.

RA: A lot of people talk about maximum speed, but my

perception—and this goes back to pre-Acela days when Amtrak was looking at high speed trainsets for the Northeast Corridor. The mantra was, it’s not about speed, it’s about trip time. The passenger really doesn’t care how you’re fast you’re going. Most people are concerned about the convenience, the comfort, the safety, and the amenities on board, but also just that trip time. BOARDMAN: It’s trip time and reliability. The worry I have continually is about safety and reliability. We can knock off a few minutes from time to time, but making connections is where we get the biggest frustration from folks. I get direct email from customers that are held up on our trains. Many times I’m the first one that hears that the train is stopped. If somebody has my email and they’re on that train they let me know right away, and then I go looking to see if we can make some improvements. People do want to make sure that they get to places at the time that we say we’re going. We know that for the future we can reduce the time traveled on a

“The worry I have continually is about safety and reliability. We can knock off a few minutes from time to time, but making connections is where we get the biggest frustration from folks. I get direct email from customers that are held up on our trains. Many times I’m the first one that hears that the train is stopped.”

January 2014 Railway age 39

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RailRoadeR of the yeaR

continuing basis as we improve the railroad. We know that in order to get to 220 mph there needs to be a major change in the U.S. government policy of making investments in railroads whether it’s here or whether it’s in California or wherever. But we can’t stop improving the existing railroad. The most important thing, bar none, is safety, and you’ll keep hearing that from me. Something that culturally needed to be changed when I came here was how we addressed the unions, the engagement of the workforce, to bring something different in for safety. Our behavioral safety program, which we call Safe to Safer, is really critical because it also helps develops leaders, those who begin to notice things that could be changed and make a different commitment for the future.

Alex Mayes

RA: Your

personal style: I perceive you as being as being very strong, very resolute, but at the same time a little bit low key. Would you agree with that? BOARDMAN: Well, I guess you can say it that way. Over the years I’ve learned that you have to forgive. I know that if I don’t forgive I won’t be forgiven, and I’ll make lots of mistakes. As you grow up you do make mistakes, and one of the difficulties with the culture that we’re in today is that we don’t generate a lot of forgiveness. One of the values that we developed as a part of our strategy was forgiveness. Now, forgiveness is not the same as not being held accountable.

“I would hear worries about the idea of subcontracting or selling the Northeast Corridor and what would happen to jobs. I said, who do you think is going to run the trains?”

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“We make mistakes and we’ll continue to make them because we’re human. We’ll try to fix them as best we can and change our culture into one that provides better customer service.”

You are held accountable for the mistakes you make. There’s no question about it, but if you’re not forgiven for them how are you going to improve for the future? How are you going to give the opportunity for the future? Trust has to come back into relationships. With forgiveness you have that, so part of my style is to understand others and try to forgive others and go through my roster of what do I need to forgive. I can be liberated from the necessity of having an argument with somebody about something I’ve already forgiven them for, and I look for the same from others. We have strong values on integrity and transparency. A lot of people misunderstand that what I’m talking about is humility. When I’m tough in a business deal somebody would say, well, I don’t see the humility, and I understand that. The humility I’m talking about has three parts. First is collaboration. I found very difficult union relationships when I walked into Amtrak—the worst I had ever seen anywhere during more than 30 years of leadership responsibility in small to large systems. People weren’t listened to. It was a culture of blame, so the necessity was to really listen. There’s a big difference between somebody having a say and having a vote, so we really took the opportunity to listen to people and let them have their say and still make decisions. We’ve allowed people to contribute in a way that others hadn’t. You have to trust others as you grow in life.

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RailRoadeR of the yeaR

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RailRoadeR of the yeaR

When it comes to an engineering decision, I don’t make them. I look for my chief engineer and his staff to do that, and you’re not going to find a more collegial group of people, generally speaking, than engineers. They all have their opinion on how things should be done, and so the second piece of humility is really about being collegial, finding ways to use others’ expertise to get to a decision that’s the right one, that’s logical, that can move forward. The final piece of humility is the debt you owe to the future. It’s those that are going to follow you and stand on your shoulders, that are going to improve passenger rail in the future by having benefited from what you’ve done now. The debt you owe to the future is the people you select now, the processes you put in place, the strategy you have now, the values you’ve developed, the culture change you’re looking for to provide for the future. It’s all part of trying to be responsive to those who are sometimes overly critical and looking for a knee-jerk response so they can be justified in what they’ve decided to do. They’re wrong, but they’re looking for the emotional reaction they need to be justified. We all slip from time to time, but we have to be mature about it. Union-management disagreements are sort of traditional to railroads, but from what I’ve observed in the past few years I think things are better. Would you agree with that? I find just

RA:

“The most important thing, bar none, is safety. Something that needed to be changed when I started was how we addressed the unions, to bring something different in for safety.”

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44 Railway age January 2014

“The railroads have not always worked well together, and that’s absolutely critical for the future, especially on the passenger side, and for passenger with freight.” talking to various people around the railroad that you as a chief executive are highly respected and well-liked. BOARDMAN: I continue to tell employees the truth about where we are, what we’re doing, what we want to do for the future. We put offers on the table in the same way. I came from the Bush Administration, so the expectation was that I was going to be negative for labor, and that’s just not true. It never was true, but our employees needed to find that out through their own experience. When they did, there were changes. One of those changes—let me go back to something I said already—I forgave everything they said. There were some negative feelings. I understand those. I believe that people have to have a right to express themselves. I ask them to do it courteously but that doesn’t always happen. We have union leaders here that are truly leaders. They understand they’re not perfect. They also understand they have an obligation to defend things they wish they didn’t have to defend at times. We all do, but if you’re willing to collaborate, to sit down with them and listen to their point of view—even if you don’t agree with it—at least you show them the respect that they deserve because they are leaders, the people who operate our trains. A few years ago, I would hear worries about the idea of subcontracting or selling the Northeast Corridor and what would happen to jobs. I said, who do you think is going to run the trains? You think that there is going to be somebody else that comes in and steps into your job? Stop worrying about that. You’re going to have a job. They could call us peanut butter if they wanted to, or Amtrak, but we’re going to run this railroad, and it’s the people that run it now that

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RailRoadeR of the yeaR

will run it in the future. We knew when we put this high speed rail plan together the idea was that we would have all sorts of foreign railroads from Japan, France, etc., coming over here and looking at [the Northeast Corridor]. Nobody coming here would want to operate the railroad without the people that are already operating it. Maybe without the CEO, that’s OK, but not without the people that know what they’re doing. RA: There’s

something to be said for customer loyalty and obviously we’re seeing that. BOARDMAN: Yes. We see in our ridership. We see it in Amtrak Guest Rewards. We see it in a number of people that are sincerely interested in presenting their issues or what they see could be better. I see it in the emails I get sometimes. I got a pretty rough one the other night from a young woman who was upset about not catching the last Acela Express out of Washington going to New York. She had some pretty negative things to tell me about me and management. I understood her point of view and I responded to her right away. I understood her anger and talked to staff afterwards about the issue. We have to take a special care of somebody if we’re trying to build a service for a new, last later Acela getting out of Washington. This customer got closed out at the gate with two minutes left; she thought she could get on the train and the gate agent wouldn’t let her. I explained to her it was because of safety. But at the same time, we need to make sure that our customers are given that extra special effort to make sure they get on that last Acela going out of town, to meet the profile of riders that we’re trying to attract. So we’re thinking about customers, we’re talking about that. We still make mistakes and we’ll continue to make them because we’re human, but we’ll try to fix them as best we can and change our culture into one that provides better customer service. RA: What’s

about that?

next for Joe Boardman? Are you thinking

BOARDMAN: When you get an award like this, and people know you’re 65, they say, well, he’s on his way out. That’s not my plan. I made a commitment to the board, to my family, and to myself. I’m staying and will sign up for at least a couple more years if they’d like that. I made a commitment to my health. I made some changes in lifestyle that allowed me to lose weight. I’ve got two grandchildren now. One is in North Carolina and one is in New York. I can get to both places on the railroad. I plan on being here for as long as I can contribute. I want to help provide for mentoring and succession for those behind me. I’ve got a great team, people who are really delivering at a senior level, changing our culture, getting into something very different for the future that will deliver a better railroad and a better experience for our customers, maintain our safety, and improve our bottom line. rA

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January 2014 Railway age 45

CREATING BETTER WAYS TO MOVE THE WORLD

First introduced in 1978, the BOMBARDIER BiLevel car is the most popular double-deck commuter rail car in North America. Today, nearly 1,200 BiLevel cars are in operation at, or on order with, transit authorities in 14 cities across the United States and Canada. One of the keys to the success of the BiLevel car has been its ability to adapt to meet changing needs and requirements. The next step in that evolution is a BiLevel cab car equipped with a Crash Energy Management system, designed with an aerodynamic full-width cab that offers improved positioning and ergonomics for the engineer, and ready for the installation of PTC equipment. Upgrades to door and air-conditioning systems, increases in energy efficiency, and enhancements to passenger comfort are among other advancements making the BiLevel car better than ever.

www.bombardier.com BOMBARDIER and BiLevel are trademarks of Bombardier Inc. or its subsidiaries.

Testing and certification of Washington, D.c.’s first modern streetcar line has begun, with the first vehicle, supplied by clackamas, ore.-based united Streetcar, llc, operating under its own power.

SupplierS courT a bigger cuSTomer baSe as the passenger rail customer list grows, suppliers aggressively expand their product lines and service offerings.

Ken Briers

he customer pool for North American passenger car suppliers keeps growing. Not that suppliers are unaware of that fact. Suppliers intent on tapping that pool made their desires clear in 2011 during the American Public Transportation Association (APTA) Annual Meeting in New Orleans. It was reinforced by the players bidding in 2012 to build new gear. In 2013, many of those players saw their bids rewarded. Last year Railway Age noted that “the supplier numbers multiply, as stalwarts such as Siemens Mobility, already a U.S. powerhouse for light rail transit, face growing competition from relative upstarts who have landed equipment orders, such as United Streetcar, LLC, Pacifica Marine, and Brookville Equipment Corp. Still other suppliers seek to

By Douglas John Bowen, Managing editor

score their first North American streetcar order, KinkiSharyo International and CAF America among them. The potential client list may offer plenty of opportunities in 2013 and beyond, as cities across the U.S. opt for streetcar startups.” That trend, in fact, did prevail, and shows few signs of a letup as 2014 begins, judging from results compiled for our 2014 Passenger Car Outlook. Look LocaL, suppLiers

The forecast made in early 2013 for suppliers concerning streetcars proved potent and accurate as well, when we wrote: “By the numbers, most streetcar orders are relatively small. But the number of streetcar orders suggests big market changes ahead for the supplier industry.” What’s January 2014 Railway age 47

2014 PassengeR Rail ouTlooK

2014 Passenger Car Market at a glanCe

Figures compiled by Douglas John Bowen, Managing editor

These new and rebuilt cars were delivered in 2013 Purchaser

# of cars

TyPe

Builder

Bilevel Commuter

Hyundai Rotem

Boston (MBTA) Buffalo (NFTA)

Rebuilt Light Rail

Ansaldo/Breda

Calif. (ACE)

Bilvevel Commuter

Bombardier

Caltrans (California DOT)

Rebuilt Intercity

Amtrak

Chicago (CTA)

202

Rapid Transit

Bombardier

Chicago (Metra)

103

Bilevel Commuter

Sumitomo/Nippon Sharyo

Edmonton (ETS)

Rebuilt Light Rail

Bombardier

Light Rail

Siemens

Light Rail

Siemens

Light Rail

CAF USA

Los Angeles (Metro)

Light Rail

Siemens

Minneapolis/St. Paul (Metro Transit)

Light Rail

Siemens

Newark (NJ Transit)

Rebuilt Multilevel Commuter++

Bombardier

Multilevel Commuter

Bombardier

New York/New Jersey (PATH)

Rebuilt Rapid Transit++

Kawasaki

New York (Metro-North)

138

EMU Commuter

Kawasaki

New York (NYC Transit)

R 188 Rapid Transit

Kawasaki

Oregon

Intercity

Talgo America Bombardier

Orlando (SunRail)

Bilevel Commuter

Ottawa

DMU Commuter

Alstom

Philadelphia (PATCO)

Rebuilt Rapid Transit

Alstom

Philadelphia (SEPTA)

EMU Commuter

Hyundai Rotem

Portland (TriMet, City of Portland)

Streetcar

United Streetcar

Salt Lake City (UTA)

Light Rail/Streetcar

Siemens

San Diego

Light Rail

Siemens

South Florida RTA

Bilevel Commuter

Hyundai Rotem

Southern Cal. RRA (Metrolink)

Multilevel Commuter

Hyundai Rotem

Toronto (GO Transit)

Bilevel Commuter

Bombardier

Toronto (TTC)

108

Rapid Transit

Bombardier

Streetcar

Bombardier

Streetcar

United Streetcar In House

Tucson Vancouver (TransLink)

Rebuilt Skytrain

VIA Rail Canada

DMU Intercity

In House

Washington D.C. (WMATA)

7000 Series Rapid Transit

Kawasaki

2010

January 2014

2011

2012 2013

2007

2008

2010

2011

2,904

3,140

689

3,372

4,967

(as of Dec. 31)

4,502

2009

1,175

1,555 890

2008

Railway age

New and rebuild backlog

4,485

2007

1,109

1,004

1,818

New and rebuild deliveries

5,167

Houston (MTA)

2009

2012

2013

Orders likely to develop in 2014

Work progresses on this undelivered backlog (as of Jan. 1) Purchaser Amtrak Atlanta Boston (MBTA)

# of cars 130 4 19 72 Baltimore 53 Buffalo (NFTA) 24 Calgary (Calgary Transit) 60 192 Calif. (ACE) 2 Calif. (Caltrans) 5 Calif./Illinois et al 130 Charlotte (CATS) 22 Chicago (CTA) 330 Chicago (Metra) 57 Cincinnati 5 Conn. (Shoreline East/N.Y. MTA) 24 Dallas (w/DART) 4 Denver 56 Honolulu (HART) 80 Kansas City 5 Los Angeles (Metro) 24 Miami-Dade 136 Maryland (MARC) 54 Mexico City (STEDF) 8 Minneapolis/St. Paul (Metro Transit) 24 Montreal (AMT) 46 MontrĂŠal (Societe de Transport) 468 Newark (NJ Transit) 22 3 New York (LIRR) 92 New York (Metro-North) 86 New York (NYC Transit) 300 440 New York/New Jersey (PATH) 10 Orlando (SunRail) 10 Ottawa 34 Philadelphia/NJ (PATCO) 118 Portland (TriMet) 18 San Diego 34 San Francisco (BART) 410 4 San Francisco (MUNI) 16 Seattle (Sound Transit) 7 9 Sonoma-Marin (SMART) 14 Toronto (TTC) 138 201 Toronto (TTC/Metrolinx) 196 Toronto (Metrolinx/GO Transit) 18 111 Tucson 5 Vancouver 28 115 VIA Rail Canada 93 Virginia Railway Express 50 Washington, D.C. (DDOT) 3 Washington, D.C. (WMATA) 524

TyPe Intercity Streetcar Bilevel Commuter Rebuilt Commuter Rebuilt Light Rail Rebuilt Light Rail Light Rail Rebuilt Light Rail Bilevel Commuter Rebuilt Commuter HrSR Intercity Light Rail Rapid Transit Bilevel EMU Commuter Streetcar EMU M-8 Commuter Streetcar EMU Commuter Rapid Transit Streetcar Light Rail Rapid Transit Multilevel Commuter Light Rail Light Rail Multilevel Commuter Rapid Transit* Rebuilt Commuter++ Multilevel Commuter EMU M-9 Commuter EMU M-8 Commuter R 179 Rapid Transit R 188 Rapid Transit Rapid Transit Bilevel Commuter Light Rail Rebuilt Rapid Transit Light Rail Light Rail Rapid Transit Automated People Mover Rebuilt PCC streetcar Streetcar Bilevel Commuter DMU Commuter Rapid Transit Streetcar Light Rail DMU Commuter Bilevel Commuter Streetcar Skytrain Rebuilt Skytrain Intercity Bilevel Commuter Streetcar 7000 Series Rapid Transit

Builder CAF USA Siemens Hyundai Rotem Alstom Alstom Ansaldo/Breda Siemens Sherwood Electromotion Bombardier Amtrak Sumitomo Siemens Bombardier Sumitomo/Nippon Sharyo CAF USA Kawasaki Brookvile Equipment Hyundai Rotem AnsaldoBreda CAF USA Siemens AnsaldoBreda Bombardier Bombardier Siemens Bombardier Alstom/Bombardier Bombardier Bombardier Kawasaki Kawasaki Bombardier Kawasaki Kawasaki Bombardier Alstom Alstom Siemens Siemens Bombardier United Stretcar/DCC Brookville Equip./In House Pacifica Marine Bombardier Sumitomo/Nippon Sharyo Bombardier Bombardier Bombardier Sumitomo/Nippon Sharyo Bombardier United Streetcar Bombardier In House In House Sumitomo/Nippon Sharyo United Streetcar Kawasaki

New-car deliveries by mode year regional/inTerciTy 2004 596 2005 486 2006 358 2007 139 2008 227 2009 187 2010 199 2011 235 2012 343 2013 531 Total 3,301 2013% of Total 16.1%

raPid TransiT 103 302 250 402 272 752 782 113 243 337 3,556 9.5%

lrT/sTreeTcar/aPM 127 132 130 121 97 202 148 149 59 166 1,331 12.5%

ToTal 826 920 738 662 596 1,141 1,129 497 645 1,034 8,188 12.6%

Purchaser Amtrak Boston (MBTA) Calgary California (CHSRA) Chicago (CTA) Detroit Kenosha Area Transit New York (NYC Transit)

Phoenix (Valley Metro) San Francisco (MUNI) San Francisco (BART) Seattle (Sound Transit) Sonoma-Marin Calif.) So. Calif. RRA (Metrolink) Toronto (Metrolinx/GO Transit) Washington, D.C. (DDOT)

# of cars 160 32 24 TBD 846 6 1-2 290 350 123 11 260 365 4 2 45-55 50 3

TyPe HSR Intercity Rebuilt Commuter Light Rail HSR Intercity Rapid Transit Streetcar Historic streetcar R179 Rapid Transit Converted R188 Rapid Transit New R188 Rapid Transit Light Rail Light Rail Rapid Transit Bilevel Commuter DMU Commuter Commuter/Rebuilt Commuter Bilvevel Commuter Streetcar

The five-year (2015-2019) outlook Purchaser Austin (Capital Metro) Boston (MBTA) Calgary California (ACE) California (Caltrans) Charlotte (CATS) Chicago (CTA) Chicago (Metra) Dallas (w/DART) Edmonton (ETS) Florida East Coast Industries Fort Worth (TEX Rail) Honolulu (HART) Los Angeles

# of cars TBD 33 12-36 6-12 36-60 TBD 0-600 196 2 20-48 TBD 20 6 35-40 TBD Milwaukee TBD Minneapolis/St. Paul (Metro Transit) 35-40 TBD Mississauga TBD Montreal (AMT) 24 Montreal (Societe de Transport) 386 New York/New Jersey (PATH) 109 New York (LIRR) 304 New York (Metro-North) 280 New York/New Jersey (PATH) 10-75 Norfolk, Va. (Hampton Roads Transit) 3-5 North Little Rock, Ark. 2-6 Oceanside, Calif. (NCTD) 6-12 Oklahoma City TBD Orlando (SunRail) 0-46 Phoenix (Valley Metro) 22 6 Portland TBD San Antonio 9 San Bernadino (SANBAG) TBD San Diego (MTS) 22 San Francisco (MUNI) 85 South Florida RTA 5 Stockton, Calif. (ACE) 14-20 Toronto (TTC) 126 60 Vancouver (TransLink) 5-10 Virginia Railway Express 42 Waterloo, Ont. 14 *Rubber-tired vehicles ++ Equipment damaged by Superstorm Sandy

TyPe Diesel Light Railway Commuter Light Rail Bilevel Commuter Bilevel Intercity Streetcar Rapid Transit, inc. rebuilds Rebuilt Bilevel Commuter Streetcar Light Rail HrSR Intercity DMU Commuter Rapid Transit Light Rail Streetcar Streetcar Light Rail/Streetcar Streetcar Light Rail Multilevel Commuter Rapid Transit Rapid Transit EMU M-9 Commuter EMU M-9 Commuter) Rapid Transit Light Rail Vintage Trolley Bilevel Commuter Streetcar Bilevel Commuter Light Rail Streetcar Streetcar Streetcar Light Rail Light Rail Light Rail Streetcar Bilevel Commuter Rapid Transit Streetcar Commuter Bilevel Commuter Light Rail

January 2014 Railway age 49

2014 PassengeR Rail ouTlooK

emerged more clearly, however, is the customer venue, which has taken a distinctly local flavor as municipalities, and even individual neighborhoods of a city, begin to drive the process toward a streetcar purchase. Suppliers, in short, should take note that, in this case, often it’s not the regional transit agency driving the process (though, per TriMet and DART, assistance is forthcoming). That can be good news, since for suppliers large and small it means an expanded potential customer base. The emphasis on local activity (and resultant local benefits) is backed by survey results released last June by Mineta Transportation Institute (MTI). The survey, titled America’s Support for Public Transportation, indicates growing support for expanding public transportation, with nearly 74% of respondents amenable to the use of their tax dollars to create, expand, and improve public transportation in their community. The number of respondents increased from an already solid 69% of Americans in support in 2012 to nearly 74% in favor during 2013. “We are experiencing this surge in support because citizens can see, touch, and feel the economic impact of investing in public transportation,” said American Public Transportation Association (APTA) Chairwoman Flora Castillo. “This survey emphasizes that public transit plays a great role in society because it directly touches people’s lives.”

stiLL waiting for Hsr orders

Comparatively stagnant, by contrast, is the looming orders expected for high speed rail (HSR) equipment to be placed by both Amtrak and the state of California. Early in 2013, the two entities announced their intent to place a joint equipment order to benefit from economies of manufacturing scale, with Amtrak acquiring 32 trainsets and California purchasing 27. Skeptics pointed out that while such economies were possible, California’s potential order for equipment was aiming for top speeds of 220 mph, while Amtrak’s plans to replace Acela Express gear would only necessitate equipment capable of 160 mph, presumably on the 24-mile “New Jersey Raceway” portion of its Northeast Corridor now being upgraded. By contrast, Sumitomo Corp. of America and partners Nippon Sharyo in 2013 commenced production of 130 intercity rail cars for use in several Midwest states (led by Illinois), as well as California, part of a multistate effort to generate higher-speed rail (HrSR) service. As noted in 2013, California’s participation in the $352 million contract is noteworthy, since the Sumitomo equipment will be designed for operation at speeds up to 125 mph, making it an interim equipment move for the Golden State. California can use the equipment already. Last November Caltrans announced record ridership for both Amtrak’s Pacific Surfliner route, linking San Diego and Los Angeles, and San

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Railway age

January 2014

10.12.2013 09:19:59

American-made Solutions An Answer for Lasting Growth Siemensâ&#x20AC;&#x2122; answers for mobility help people and business reconnect with their city and one another.

Intercity passenger rail ridership is at an all-time high, bringing new challenges to cities and transit organizations. Amtrak has seen the highest annual ridership totals since 1971, increasing the demand to move people and attract business in an environmentallyconscious way. That is why more than 800 Americans are focused on designing and building energy-efficient Amtrak Cities Sprinter electric locomotives for the Northeast and Keystone Corridors.

Siemens electric locomotives will increase mobility and improve performance with reliable vehicles. Siemens new locomotives will better connect our cities, making travel easy, reliable and affordable. Somewhere in America our team of more than 60,000 employees spends every day creating answers that will last for years to come. Siemens congratulates Joe Boardman for all his achievements.

usa.siemens.com/railsystems

2014 PaSSeNgeR Rail OUTlOOK

Joaquin service, running from Bakersfield to the Bay Area and Sacramento, the state capital, during Amtrak’s fiscal year 2013, ending Sept. 30. Caltrans officials said the Pacific Surfliner had more than 2.7 million riders, while the San Joaquins carried more than 1.2 million passengers. Tried and True

Rounding out supplier activity, regional (commuter) railcar manufacture was a mainstay during 2013, with SEPTA receiving the final cars of its 120-car Silverliner V electric multiple-unit (EMU) order from Hyundai-Rotem. Kawasaki Rail Corp. continued delivery M-8 EMUs to MTA MetroNorth Railroad, even as the supplier landed a huge $1.8 billion joint order from Metro-North and sister Long Island Rail Road for an anticipated 584 M-9 cars. Bombardier Transportation, meanwhile, wrapped up an NJ Transit MultiLevel car order by delivering the last 56 cars of a 100-car add-on order placed in 2010. Bombardier simultaneously assisted NJ Transit in repairing MultiLevel equipment damaged by Superstorm Sandy in October 2012. Regional rail equipment deliveries should remain strong during 2014 as several agencies, including established players such as Chicago’s Metra and relative newcomers, such as Somona Marin Area Rail Transit (SMART), receive their respective orders.

Siemens recently landed Hewing more closely to tradia major order for HrSr tion, the big transit agencies, such diesel locomotives (p. 8). as MTA New York City Transit, Chicago Transit Authority, San Francisco’s BART, Toronto Transit Commission (TTC), and Washington’s WMATA, were in the midst of big-number deliveries for their respective rapid transit systems. Those elder statesmen were joined by relative newcomers in rapid transit, such as Miami-Dade Transit and Honolulu’s HART, also anticipating equipment arrival during 2014. RA

TRANSPORTATION & INFRASTRUCTURE

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Railway age

January 2014

Rail BRief: The Weekly RT&S E-mail Newsletter

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People

Meetings

HigH Profile Canadian Pacific appointed Bart Demosky executive Vice President and Chief Financial Officer, effective Dec. 28, 2013, succeeding CFO Brian grassby, who retired. Demosky joins CP from Suncor energy, where he had been Chief Financial Officer since 2009. His career at Suncor began in 2006 when he was appointed Vice President and Treasurer. in 2008, Demosky was appointed Senior Vice President Business Services. Demosky brings to CP more than 25 years of senior financial, strategic, Demosky operations, and risk management experience. Said CP CeO e. CP Hunter Harrison, “Bart is arguably one of the top CFOs in Canadian business and we are thrilled that he will be joining our team.” Demosky will be part of the senior management team helping plan CP’s long-term strategic direction. Other responsibilities will include financial planning, reporting and accounting systems, pension, treasury, and tax. Demosky holds a bachelor’s degree in economics from the University of Calgary and is an honors graduate from the University of Calgary’s Management Development Program.

January 23-24

SUPPLIERS

March 2-5

GATX Corp.—Terrence G. Heidkamp named Vice President-government and industry affairs. Holland LP—Chris Smitka named Regional Sales Manager, based in Kansas City. Koppers Inc.—Jamie Skipper appointed Sales Mansager for the company’s Southeastern Region, based in Jacksonville, Fla. Parsons Brinckerhoff Halsall— PB’s Canadian operating company named John Howe Vice President, Strategic Consulting. Salco Products, Inc.—Jan Marino joins the company as account Manager, Technical Services. David Clugg joins as Director of Business Development. Transportation Products Sales Co.— Scott McKelvie named Vice President of Sales. TUV Rheinland North America, Inc.— Raj Sapru joins as associate Director of Sustainability advisory Services, based in San Francisco.

OTHER Canadian Association of Railway Suppliers—Bill Thompson of Timken Canada named CaRS President. 54

Railway age

January 2014

Named to the CaRS Board of Directors are Laurent de Français, Vice President, Transportation Systems, SNC-lavalin infrastructure & Construction, Transport, infrastructure & Buildings Division; Tom DeJoseph, V.P. Marketing, loram Maintenance of way inc.; Jason Tillmanns, Director, Specialty Components and Fabricated Parts, Supply Management, National Steel Car; and Lisa Tuningley, President, T-Rail Products.

100 YEARS AGO in

(JANUARY 1913) TRAFFIC NEWS The Pennsylvania Railroad Company reports that the total number of passengers carried on its trains in the year 1913 was 111,000,000; and not one was killed in a train accident. On the lines of the company east of Pittsburgh the number of passengers carried during the past six years has been nearly 600,000,000, of whom 16 were killed in train accidents. *** Because of the competition of the electric roads the Southern Pacific has discontinued all passenger train service on its line between Los Angeles, Calif., and Long Beach, 21 miles, and between Riverside and San Bernadino, 12 miles.

10th Annual Southwestern Rail Conference Holiday inn Dallas Central-Park Cities, Dallas, Tex. Bernie Rodriguez, Tel.: 469-569-0136; email: bernie@texasrailadvocates.org; website: texasrailadvocates.org/ conference/?confiD=6

February 26-27 Southwest Association of Rail Shippers Annual Meeting Hyatt Regency San antonio Riverwalk, San antonio, Tex. website: www.swrailshippers.com

Rail Equipment Finance 2014 la Quinta Resort & Club, la Quinta, Calif. email: msilverman@railfin.com; website: www. railequipmentfinance/com

April 1-2 19th Annual AAR Research Review Cheyenne Mountain Resort, Colorado Springs, Colo. Tel.: 719-584-0544; email: annual review@aar.com; website: www.regonline.com/19thannual

April 8-10 New Jersey TransAction Conference 2014 atlantic City, N.J. email: Njtransaction@aol.com; website: www.njtransaction.com

June 15-18 APTA Rail Conference Montreal, Quebec Tel: 800-999-2782; website: www.apta.org

September 14-16 American Association of Railroad Superintendents 118th Annual Meeting Chicago, ill. Tel.; 331-643-3369; email: aars@supt.org

Do you have the most up-to-date FRA Regulations?

Reb Says...

Use this handy index to verify that you have the most up-to-date version of the FRA regulations. The left-hand column lists the FRA Part number and the right-hand column list the latest revision date. Items highlighted in red denotes recent changes. (IFR = Interim Final Rule) FRA Part #

Last Update Effective:

FRA Part #

Last Update Effective:

40 . . . . . . . . .10-3-12 209 . . . . . . . .2-12-13 210 . . . . . . . .8-14-89 211 . . . . . . . .7-20-09 213 A-F . . . . .7-11-13 213 G . . . . . .7-11-13 214 . . . . . . . .6-25-12 215 . . . . . . . .6-25-12 216 . . . . . . . .6-25-12 217 . . . . . . . .6-25-12 218 . . . . . . . .6-25-12

219 220 221 222 223 224 225 228 229 230 231

. . . . . . . . .5-6-13 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . . .1-1-13 . . . . . . . .6-25-12 . . . . . . .12-19-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12

FRA Part #

232 233 234 235 236 237 238 239 240 242

Last Update Effective:

. . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .5-14-13 . . . . . . . .6-25-12 . . . . . . . .7-13-12 . . . . . . . .6-25-12 . . . . . . . .1-28-14 . . . . . . . .1-28-14 . . . . . . . .6-25-12 . . . . . . . .6-25-12

Mechanical Department Regulations

The following is a list of booklets reprinted from the Department of Transportation Code of Federal Regulations 49 CFR Parts 200 to 399 that apply to the rail industry. They are printed in a convenient format and are kept current with updates from the Federal Register which may be supplied in supplement form. Item FRA 50 or Code Part # more Each

209 211 BKTSSAF 213 BKTSSG 213 BKWRK 214 BKFSS 215 BKROR 217 218 BKRRC 220 BKEND 221 BKSEP

BKHORN 222 BKRFRS 224 BKHS 228 BKLSS 229 BKSLI 230 BKSAS 231 BKBRIDGE 237 BKLER 240 BKCONDC 242 BKBSS

Railroad Safety Enforcement Procedures & Rules of Practice Track Safety Standards (Subpart A-F) Track Safety Standards (Subpart G) Railroad Workplace Safety Railroad Freight Car Safety Standards Railroad Operating Rules and Practices Railroad Communications Rear End Marking Device, Passenger, Commuter & Freight Trains Use of Locomotive Horns Reflectorization of Rail Freight Rolling Stock Hours of Service Locomotive Safety Standards Steam Locomotive Inspection Railroad Safety Appliance Standards Bridge Safety Standards Qualification and Certification of Locomotive Conductor Certification

232 Brake System Safety Standards

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Part 240–Qualification and Certification of Locomotive Engineers

This book affects locomotive engineers, trainers and supervisors. The rule is largely based on recommendations made by an advisory committee comprised of rail industry and labor representatives. This final rule will clarify the decertification process; clarify when certified locomotive engineers are required to operate service vehicles; and address the concern that some designated supervisors of locomotive engineers are insufficiently qualified to properly supervise, train, or test locomotive engineers. 162 pages. Spiral bound.

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Part 238 and 239 - Passenger Train Emergency Systems II: This final rule is intended to further the safety of passenger train occupants through both enhancements and additions to FRA's existing requirements for emergency systems on passenger trains. In this final rule, FRA is adding requirements for emergency passage through vestibule and other interior passageway doors and enhancing emergency egress and rescue access signage requirements. FRA is also establishing requirements for low-location emergency exit path markings to assist occupants in reaching and operating emergency exits, particularly under conditions of limited visibility. Further, FRA is adding standards to ensure that emergency lighting systems are provided in all passenger cars, and FRA is enhancing requirements for the survivability of emergency lighting systems in new passenger cars. Finally, FRA is clarifying requirements for participation in debriefing and critique sessions following emergency situations and full-scale simulations. This final rule is effective January 28, 2014.

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Perspective BARNEY A. ALISON

Refining RRIF to include commuter rail

amed French writer Victor Hugo said, “There is one thing stronger than all the armies in the world, and that is an idea whose time has come.” Repurposing the Railroad Rehabilitation Improvement Financing program (RRIF) is an idea whose time has come. It’s working for freight rail. Launched in 1998, RRIF authorizes the Federal Railroad Administration (FRA) to lend up to $35 billion for railroad infrastructure improvements, equipment, and facilities development. A successful model, RRIF has helped primarily short-haul rail companies improve, expand, refinance, and acquire freight rail facilities and equipment. Open to railroads, state and local governments, government-sponsored authorities, and corporations, the program provides direct federal loans and loan guarantees for up to 100% of a project’s cost. Repayment periods are up to 35 years, and interest rates equal the U.S. Treasury rate for comparable-term securities. Though entities must pay a credit risk premium (CRP), the CRP can be reduced with collateral. And those terms have proven attractive. To date, 33 loans have been executed in 26 states for more than $1.7 billion, with 72% of those loans executed with Class II and III railroads. And through RRIF, Amtrak will receive 70 new U.S.-built electric locomotives and upgrade maintenance facilities for Northeast Corridor services. It is now time to transform RRIF into a source of financing for large commuter rail projects. According to the American Public Transportation Association’s 2012 Fact Book, “The 10.4 billion boardings on public transportation in 2011 represent ridership levels that have grown back to levels that existed at the start of the Interstate highway era.”

RAILwAY AgE

January 2014

Demand for public transportation is real and growing, but oddly, commuter rail demand lags other modes. “Commuter rail—which connects city centers with suburbs—had the smallest growth of any transit system in the U.S. at 0.5%,” explains Tyler Falk in his article “U.S. cities are building commuter rail, so where are the riders?” (Smart Planet, 6/18/13). What’s the key? “More service,” Falk says. Greater frequency and interconnectivity will increase ridership, meeting an untapped demand of currently underserved riders.

RRIF could become a powerful tool and make a real difference. Falk is right. And that’s why RRIF could become a powerful tool for commuter rail. But Congress must act. Recently, I attended an invitation-only roundtable organized by FRA Deputy Administrator Karen Hedlund, where she sought ideas for expanding RRIF. Taking a page from the Transportation Infrastructure Finance and Innovation Act (TIFIA) for highways, Hedlund rightly sees the opportunity to transform RRIF into a source of low-cost debt capital for commuter rail, with some mode-appropriate changes. For example, RRIF needs to recognize more than just hard assets as collateral, considering, for example, dedicated, creditworthy revenue streams such as sales taxes. In addition, Congress should consider seeding RRIF with funds to

pay the CRP, similar to what it did for the TIFIA program. Also, with the next round of TIGER (Transportation Investment Generating Economic Recovery program) federal funding, entities should be allowed to use TIGER grants to pay the credit risk program a la TIGER TIFIA. In addition, RRIF should create separate loan approval processes for passenger rail projects vs. short line railroads. Other possible improvements could include: • Development of credit criteria for greater predictability; • Use of credit ratings; • Technical assistance by the FRA and state agencies; • Use of TIFIA-type letters of interest; • Use of TIFIA and RRIF in combination (which was done for Regional Tranportation District’s Denver Union Station project); • Master credit agreements; • Subordination of other government liens to RRIF; and • Scheduling of critical path activities. Finally, RRIF would need additional funds for staff—bringing on financial and legal consultants—to expedite credit application processing. But no matter how it is refined, RRIF can make a very real difference in commuter rail. Soon the House Transportation and Infrastructure Committee will begin marking up a new rail bill. We should convince them that repurposing the Railroad Rehabilitation Improvement Financing program for commuter rail is an idea whose time has come. Barney Allison, a partner at Nossaman LLP, is a public finance expert recognized for his specialized experience in forming and financing public-private partnerships and other transactions involving private financing to develop infrastructure projects.

Products Mega Snake offers fiber optic module

Range of wrenches and more from Norbar Torque Tools Norbar Torque Tools, inc. offers a line of torque wrenches and multipliers, and torque control & calibration tools, for railway maintenance and repair. applications include: gearcase Bolting; U-Tube Bolting; Barring-Over Tools; Flywheel Bolting; Disassembly; Controlled Torque Systems; Torque

Snake Tray’s Mega Snake, a high capacity pre-configured cable tray system, has a new cable turnout module specifically designed to safely manage fiber optic cables. The module maintains the proper bend radius as the cable exits the cable tray and protects the cable as it drops down. a single or double turn out module is available. Mega Snake is pre-configured to significantly decrease install time and labor costs. its patented nesting feature significantly saves on shipping and handling costs. Made in the USa. Contact Snake Tray®, Tel.: 800-3086788; email: info@snaketray.com; website: www.snaketray.com.

Verification and Calibration. Pneutorque® torque multipliers range from 118 - 220,000 lb/ft (160 - 300,000 Nm); available with transducer, controller, data logger and accuracy to plus or minus 2%. Contact Norbar, email: inquiry@norbar.us; website: www.norbar-usa.com.

Leica B-Probe laser tracker from Hexagon Metrology

North Kingstown, R.i.-based Hexagon Metrology has unveiled its handheld leica B-Probe, designed for the inspection, alignment, and assembly of large railway coaches produced and maintained by manufacturers and professionals serving the railway industries. This entry-level, wireless probing device extends the capability of the leica absolute Tracker aT402, a portable measurement system used to accurately measure and inspect in a

radial volume up to 1,050 feet. The leica B-Probe can save thousands of dollars for manufacturers in custom targeting and tooling with its ability to inspect large parts, assemblies and unusual measurement configurations. working in tandem with the aT402, the B-Probe solution will make railway coach inspection faster and cheaper, while delivering more accurate, consistent results. The wireless probe’s small footprint and wireless functionality make it ideal for railway metrology applications. The leica B-Probe works within a 32.8 feet (10 meters) radial distance from the aT402, offering greater capabilities and flexibility over similar systems that have fixed-base stations. The lightweight 6.7 oz. B-Probe features iP50 certification for ingress protection against dust and is aaa battery-powered, an ideal complement to the ultra compact, intuitive design of

the aT402 laser tracker. The working range of this system can easily be multiplied with almost no loss in probing accuracy by utilizing the move station method. For larger parts or measurements that require higher accuracies, a standard retroreflector can be used in combination with the B-Probe to take full advantage of the aT402’s accuracy and 525 feet radial measuring range. adding the B-Probe accessory is as simple as adding a reflector to a laser tracker, and any aT402 laser tracker already in use can be upgraded with a B-Probe by the user. The leica B-Probe is available immediately and is distributed through Hexagon Metrology’s worldwide sales network and by resellers located on five continents. Contact Hegagon Metrology, Tel.: (401) 886-2000; website: www. hexagonmetrology.us. January 2014 Railway age 57

RAWrkSiteTrn1_2pg2013_Layout 1 6/18/13 4:43 PM Page 1

Products My Employees don’t have time for training.

Flexible Scheduling. Anytime. Anywhere.

oday’s railroads need cost-effective and flexible training choices. That’s exactly what The Railway Educational Bureau provides through Work Site Training. Work site training allows you to: • Maximize your training investment • Reduce employee time away from the job • Reduce travel costs by having the instructor come to your location • Increase the skill level of your employees • Improve productivity • Achieve your training objectives • Utilize your in-house expertise, equipment, and facilities

Some examples of training subjects include: Freight Car Inspection and Repair • AAR Field Manual Familiarization Rules 1 thru 83 • Introduction to FRA Safety Appliances (Part 231) • FRA Freight Car Safety Standards (Part 215) • Draft system defects and repairs • Inspecting draft system and center sills (Hands-on) • Truck and Wheel defects. Roller Bearing and adapter defects • Hands-on Gauging/Measuring wheel and truck defects Single Car Air Brake Test FRA Part 232 Brake System Safety Standards for freight and other non-passenger trains Train Yard Safety CORRESPONDENCE TRAINING • WORK SITE TRAINING • CONSULTING

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

Railway age

January 2014

Honeywell offers Emergency Alarm (EA) Transmitter Honeywell’s recently enhanced gamewell-FCi emergency alarm (ea) Transmitter is designed for used on surface rail, light rail transit, and subway systems utilizing a third rail for power. The exterior enclosure is constructed of heavy gauge stainless steel with mounting flanges on each side for easy wall mounting, and painted with a durable red powder coating for long service life. The unit top is constructed so that items cannot be placed on top of it, and the door utilizes a heavy duty spring loaded hinge that automatically closes after each use. inside, the internal clockwork mechanism is the patented gamewell-FCi Three Fold Self-winding Movement with a positive non-interfering action that prevents multiple eas Transmitters from interfering with each other when operated simultaneously. Once the ea’s handle is activated, the self-winding movement transmits four rounds of telegraph code to the Central Rail Office it is connected to. Because it utilizes proven telegraph technology, the ea Transmitter it is unaffected by the adverse conditions and electromechanical disturbances often found within subway tunnels that could prevent other technologies from operating correctly and subsequently fail to shut down the power to the 3rd rail during an emergency. Contact John Stofa, Tel.: 203=843-7904; email: john.stofa@honeywell.com.

Shure Manufacturing offers versatile shelving systems Shure Manufacturing Corp.’s ShureHold Shelving Systems offer high quality an versatility, and feature: unlimited configurations; versatile shelving solutions; 5 widths, 3 depths, and 2 heights available in pre-configured packages; a Build-your-Own system option; starter and add-on units in 36-inch and 48-inch width increments; standard sizes available in open, closed, and back-to-back styles; snap-bracket shelf support for quick shelf changes—no tools required; reinforces shelves with box design for greater weight capacities; and sliding or fixed dividers for sub-dividing shelves. Contact Shure Manufacturing, Tel.: 800-227-4873; email; sales @shureusa.com; website: www.shureusa.com/contact/.

I’m looking for some insight on Positive Train Control.

I’m a communications consultant and want to work with railroads. Can you help me get started?

I’m seeking information about companies that manufacture track machines.

I’d like to inquire about general rail industry traffic trends.

ON-DEMAND ACCESS TO TOP RAIL EXPERTS

I need information on the market for freight rail wayside and onboard fault detection systems.

I’m seeking information about companies that manufacture locomotives.

I’m looking for some guidance on the tank car market and safety regulations.

I’m interested in becoming a supplier for liquefied natural gas components and require some guidance.

Railway Age has assembled a world-class collection of experts on a wide range of subjects in the world of rail, to get the answers that are important to Railway Age readers. This new paid service, The Railway Age Expert Network, offers you access to 27 experts on a broad range of rail topics.

Ask your rail questions at bit.ly/raexperts

Railroad Resources Simmons Boardman Books and the Railway Educational Bureau Best Practices for Transportation Agency Use of Social Media Edited by Susan Bregman; Kari Edison Watkins The book provides an overview of the various social media platforms and tools, with examples of how transportation organizations use each platform. Contains interviews that illustrate what creative agencies are doing to improve service, provide realtime updates, garner valuable information from their customers, and better serve their communities. It reveals powerful lessons learned from various transportation agencies, including a regional airport, departments of transportation, and municipal transit agencies. Hard bound, 331 pages.

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FRA Regulations

Track Safety Standards, Subparts A-F (Updated) • BKTSSAF • $9.95

Rules & Regulations Governing Railroad Signal and Train Control Systems • BKSTC • $19.50 Mechanical Department Regulations • (Parts 210, 215, 216, 217, 218, 221, 223, 225, 229, 231, & 232) • BKMFR • $27.95 General

Introduction to North American Railway Signaling • BKINARS • $52.95 Safety on the Rails - The Union Switch & Signal Story • by Joanne L. Harris • BKSOTR • $39.99 All About Railroading - Second Edition • by William C. Vantuono • BKAARR • $33.95

Train Wreck: The Forensics of Rail Disasters • by George Bibel • BKTW • $29.95 Emergency Responder’s Guide to Railroad Incidents • BKERGRAIL • $33.00

Dispatching

Elements of Train Dispatching, Vol. I • by Thomas White • BKETD1 • $44.95

Elements of Train Dispatching, Vol. II • by Thomas White • BKETD2 • $41.95

Railway Operation and Control • BKROC • $39.95

Contact Lines for Electrical Railways: Planning, Design, Implementation, Maintenance, 2nd Ed.

The Railroad What it is, What it does The fifth edition of The Railroad: What It Is, What it Does is even more valuable than before. Inside you’ll find a comprehensive look at how today’s railroads function—from equipment to procedures and marketing to maintenance. The fifth edition is an indispensable resource for anyone wanting to learn about modern day railroads. The book delves into many facets of the railroad industry including such top ics as freight cars, locomotives, track, signal and communication technology, intermodal traffic, operations, labor relations, and design engineering. Softcover, 440 pages.

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What it is What it does

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by Friedrich Kiessling, Rainer Puschmann, Axel Schmieder, Egid Schneider Electric traction is the most favorable type of power supply for electric railways from both ecological and economic perspectives. Its reliability largely depends on contact lines, which must operate reliably in all climatic conditions with as little maintenance as possible. Extreme demands arise when overhead contact lines are required to provide reliable and safe power transmission to electric traction vehicles travelling at speeds in excess of 300 km/h.Hard cover, 994 pages.

BKCLER Contact Lines for Electrical Railways $145.00

Freight Car

Dictionaries

Doorway to Safety With Boxcar Doors • BKBD • $20.95

The Carman's Dictionary • BKCD • $15.25

The Double Stack Container Car Manual • BKDOUBLE • $17.50

Guide to Freight Car Trucks • BKFCT • $84.50

Guide to Couplers and Draft Gear Systems • BKCDG • $62.75 Locomotive

Guide to Locomotive Electrical Maintenance • BKGLEM • $43.50 Diesel Theory - Principles Explained • BKDT • $24.95 Maps & Atlases

Canadian Rail Atlas • MPCANAT • $76.95

Railroads of Mexico Wall Map (laminated) • MPRRMEX • $99.00 Railroads of the Continental United States Wall Map (laminated) • MPWML07 • $39.95

Training Videos (DVD)

Daily Locomotive Inspection (DVD format) • DVLOCO • $249.00 Blue Signal Protection (DVD format) • DVBLUE • $210.00 Railroad Hearing Conservation Training (DVD format) • DVHEAR • $149.00

Dictionary of Railway Track Terms • by Chris Schulte • BKRTT • $32.50 Transit

Urban Transit: Systems & Technology • BKUTST • $145.00 Urban Transit: Operations, Planning & Economics • BKUTOPE • $150.00

Amtrak: Past, Present, Future • by Chris Schulte • BKAMTRAK • $34.95

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Simmons-Boardman Books, Inc. The Railway Educational Bureau 1809 Capitol Ave. Omaha, NE 68102 Ph: (402)346-4300 • Fax: (402)346-1783 email: orders@transalert.com

Ad Index Company

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aldon Company amsted Rail group Boatright enterprises, inc. Bombardier Transportation

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e-rail@aldonco.com 14 kskibinski@amstedrail.com 3 info@boatrightcompanies.com 33 Maryanne.roberts@ 46 us.transport.bombardier.com pbarents@danella.com 13 fbrown142@aol.com 18 genuineparts@emdiesels.com 25 ecgsales@elwd.com 16 ewhalen@freightcar.net C2 gprendergast.com 50 bwind@hlmx.com 18 tfrancis@hrsi.com 37 gpodgorski@hollandco.com 7 mfloyd@kimhotstart.com 15 jpipp@koni-na.com C3 09klw.com/contactus 5 glippard@lbfosterco.com 27 sales@loram.com 29 tfurmaniak@ltk.com 12 bryan.mangum@tognum.com 5 usa@multi-contact.com 45 glenn@orxrail.com C4 plasseramerican@plausa.com 31 jwarner@rwmachine.com 9 sales@railquip.com 41 jrhansen@railworks.com 17 dennishanke@rcequip.com 44 bbrundige@sb-reb.com 55, 58, 60 11 www.rjcorman 39 bob.coffman@invensys.com 35 www.usa.siemens.com.transportation 51 chrisjacobs@star1889.com 42 info@stvinc.com 52

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Page #

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 emily guill 20 South Clark Street, Suite 1910 Chicago, il 60603 (312) 683-5021 eguill@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 Mark Connolly 55 Broad St., 26th Floor New york, Ny 10004 (212) 620-7260 Fax: (212) 633-1863 mconnolly@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 bELGIuM, PORTuGAL, SWITZERLAND, GERMANY, EASTERN EuROPE, bALTIC STATES, MIDDLE EAST, SOuTH AMERICA, AFRICA (EXCEPT SOuTH AFRICA), FAR EAST (EXCEPT KOREA, CHINA, HONG KONG, INDIA), ALL OTHERS, TENDERS louise Cooper international area Sales Manager The Priory, Syresham gardens Haywards Heath, RH16 3lB United Kingdom +44-1444-416917 Fax: +44-(0)-1444-458185 lc@railjournal.co.uk

SCANDINAVIA, THE NETHERLANDS, SPAIN, GERMANY, AuSTRIA, KOREA, HONG KONG, CHINA, AuSTRALIA, NEW ZEALAND, SOuTH AFRICA, RuSSIA, RECRuITMENT ADVERTISING Steve Barnes international area Sales Manager The Priory, Syresham gardens Haywards Heath, RH16 3lB United Kingdom +44-1444-416375 Fax: +44-(0)-1444-458185 sb@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

January 2014 Railway age 61

pRoFessIoNAL dIRecToRY

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We offer: - Certified Locomotive Engineers - Certified Conductors - Train Dispatchers - Yardmasters - Brakemen/Switchmen - Mechanical For Your Temporary Needs!

pRoducTs & seRvIces Reidler Decal Corporation St. Clair, PA 17970 Fax: 570-429-1528 marketing@reidlerdecal.com The Federal Railroad Administration's proposed new delineator configuration

Locomotive repair shop with a pit available for sale in Monroe, GA (1 hr. east of Atlanta). 7,200 sq. ft. bldg. on over 17 acres of land with 727 feet of rail frontage. Contact Kyle Chong at kyle@railtrusts.com or (904) 241-4176. equIpmeNT sALe/LeAsING

Available For Lease

◆ Mill Gondolas - 65’ 6” interior length with 5’ sides and 52’6 interior length with 4’6” to 5’ sides. ◆ 4600, 4650 & 4750 cu. ft. covered hoppers – Trough hatches & gravity outlet gates. ◆ 3,600 cu. ft. Open Top Hoppers. 45 degree slopes for aggregate, coke, coal, etc.

Reidler can help you comply with the FRA ruling by offering prismatic reflective yellow delineators that meet their specifications. • 4" x 150 fl Rolls (kiss-cut available) • 400 candlepower retroreflection • Application instructions provided

◆ 4,240 cu. ft. tub bottom rotary gondolas Interior bracing still in place. For additional information and pricing, please contact John Goodwin phone (605) 582-8318 fax (605) 582-8304 www.carmathinc.com e-mail jgoodwin@mwrail.com

Give us a call at 800-628-7770 for more information The Leader in Railroad Markings since 1926

TRAINING

Part 243 Training & Certification Part 242 Conductor Training Part 240 Engineer Training and re-certification -------------------------------------------------------Modoc Railroad Academy 916-965-5515 info@modocrail.com

TRAINING

Trainers and Training Developers The Railway Educational Bureau is in the process of creating a training and development database to be used as a resource for the railroad industry. If you have experience training in an instructor-led environment and/or developing training materials for the rail industry, and are interested in becoming a part of our group, please send your resume to:

Brian Brundige The Railway Educational Bureau 1809 Capitol Avenue Omaha, NE 68102

Railway age

January 2014

equiPment SAle/leASing

ReCRuitment

RFP

EDNA A. RICE, EXECUTIVE RECRUITER, INC

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO)

EDNA A. RICE, President

(713) 667-0406 FAX (713) 667-1651 Web address: www.ednarice.com Email: resume@ednarice.com

6750 West Loop South Suite 735 Bellaire, Texas 77401-4111

Railway Age Classified Section Jeanine Acquart â&#x20AC;˘ 212-620-7211 jacquart@sbpub.com s r

Maps1_2horz_Layout 1 1/9/14 4:16 PM Page 1

Professional Railroad Atlas of North America From Alaska and the Yukon to the Yucatan in southern Mexico, its all here. The atlas includes a listing of approximately 650 railroad companies and reporting marks in North America. This atlas has been designed for the railroad professional and transportation consultant. Nine major lines are color coded for enhanced readability. A great reference tool. Great care has been taken to provide the most accurate and current information available. Over 40 insets displaying highly detailed maps of metropolitan areas. Softcover. 112 pages.

BKATLAS

$77.95

Metro will receive Proposals for PS56103234, Hyperion Software Implementation per specifications on file at the Office of Procurement, One Gateway Plaza, Los Angeles, CA 90012 (9th Floor). All Bids must be submitted to Metro, and be filed at the reception desk of the Office of Procurement on or before 4:00PM, Friday, January 31, 2014 Pacific Time, at which time bids will be opened and publicly read. Proposals received after the above date and time may be rejected and returned unopened. Each Proposal must be sealed and marked Proposal No. PS56103234. A Pre-Proposal Conference will be held on Monday, December 23, 2013, at 10:00 AM, in the Union Station Conference Room on the 3rdFloor of the METRO Gateway Plaza Building. (Note that the METRO does not pay for parking or validate tickets.) You may obtain Proposal specifications, or further information, by emailing Mark Lu at lum@metro.net or via phone at (213) 922-4689. 1/1/14 CNS-2568457# RAILWAY AGE

Find Your Way Railroads of Mexico Wall Map

Canadian Rail Atlas This 5th edition of the Canadian Railway Atlas illustrates Canada's world class rail network. Produced in association with the 50 goods, tourist, commuter and intercity Rail businesses represented by the Railway Association of Canada, as well as nonmember railways. It features 68 pages of detailed information, 16 large-format regional maps, connections to the North American rail network and an index of the more than 5,000 railway stations across Canada. Softcover.

The 36'' x 44'' full-color Railroads of Mexico map includes recent acquisitions and privatization of the rail in Mexico. Rail is color-coded to reflect ownership. Detail includes state boundaries, thousands of indexed cities, ports served by rail and intermodal hubs. The color map also displays connections in the U.S. and South America. This map will be extremely beneficial to any company doing business with Mexico or transporting through the country. 2007.

MPCANAT

MPRRMEX

Simmons-Boardman Books, Inc. 1809 Capitol Avenue Omaha, Nebraska, USA 68102 Email: orders@transalert.com

Call to order: 1-800-228-9670 or www.transalert.com

$76.95

$99.00

Add Shipping & Handling if your merchandise subtotal is: Shipping Rates: UP TO $10.00 10.01 - 25.00 25.01 - 50.00 50.01 - 75.00

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Orders over $300, call for shipping

Company invoicing is welcome, shipping will be added for ground delivery, in US/Canada. Nebraska residents add 5.5% sales tax.

January 2014 Railway age 63

Financial edge anthony KRuglinsKi

Tank cars: What’s a lessor to do?

e are at the beginning of a new year and I am sure that tank car owners and owner/lessors currently find themselves looking down a long dark tunnel wondering how postLac-Mégantic tank car safety rules will play out during 2014 and beyond. So let’s discuss some of the proposed changes from a 50,000-foot level. (My research includes an in-depth conversation with a senior executive officer at one of the major tank car leasing companies. I took the data he gave me and tried while trying to factor out some of the likely prejudices that any executive at an owner/lessor would have.) We should divide the “players” and their game-pieces into separate piles. One pile would be North America’s railroads. This group is making money from shipping crude by rail (CBR) and is very happy to do so, given declines in coal revenues. The second group would be the railcar owners and owner/ lessors who will have to finance making their cars more substantial in derailments and other accidents. The third group would be the shippers, a varied cast of characters including oil producers, traders, and others who are also making money from various aspects of the fracking industry and who have found CBR to be a very flexible alternative to pipelines, where they exist, and to the absence of pipelines elsewhere. (Let me say here for the record, referencing the Lac-Mégantic incident, that no railcar can be built to withstand a downhill trip behind a consist of sixaxle locomotives at 70 miles per hour to a full stop.) Let’s start with the fundamental underpinning of the railroad point of view. The railroad proposal would require a new spec for cars carrying hazardous commodities (a North

Railway age

January 2014

American fleet of approximately 92,000 cars.) Building on safety improvements put into effect by the industry in 2011 (and to which approximately 14,000 cars have been built), the railroad proposals would require that “normalized” steel, which is specially heat treated to make the metal less brittle and more crashworthy, be used for the entire tank on the car itself. Industry sources in the builder and owner/lessor fraternities suggest that this requirement alone would most probably make retrofitting any of the remaining 78,000 cars in the fleet “possibly undoable.”

The railroad proposals target a suggested phase-in period of seven to eight years. Possibly to protect their current, increasingly valuable CBR traffic, the railroad proposals target a suggested phase-in period of seven to eight years. Not surprisingly, the owner and owner/lessor reaction to all this, while stressing commitment to safety, has been more muted. A variety of safetyrelated retrofits to DOT 111 cars have been suggested by this group. They include addition of head shields, new pressure relief valves, removable bottom outlet handles, and thermal insulation jackets. Per-car cost estimates are around $15,000. Those who have been following development of the CBR industry observe that the shipper point of view

on safety often devolves to just what cars they can buy or rent and how soon they get their cars. Generally speaking, they don’t seem to be particularly price-sensitive when going after equipment (new or used). Much of this has to do with the profit spread between North Sea oil and what they can move from the current fields of oil derived from hydraulic fracturing in North America. When they have the opportunity to buy new, they do so, either buying positions in existing carbuilder production schedules or buying the cars and waiting in line to receive their cars, possibly renting cars in the meantime. What happens if the railroadpreferred changes come into being? It will be a good time to be a railcar builder as the entire North American DOT 111 fleet will need to be rebuilt over whatever multi-year phase-in period is allowed by regulators. What will happen to older out-ofcompliance DOT 111 cars too young to scrap? CBR cars will either be sold by their owners to shippers carrying non-hazardous commodities or released to serve non-hazardous traffic streams. Put another way, should this occur, it will be good time to be a corn oil producer seeking to rent cars for that particular service! Passing the torch: Regular readers of this column will have noticed that my partner at Railroad Financial Corporation, David Nahass, has been writing recent columns. At my instruction, he has been referring to my being “on hiatus.” The truth of the matter is that I am suffering from pancreatic cancer. I am doing well with chemotherapy and my symptoms have (for the moment at least) disappeared. So for the near time, at least, David and I will be sharing the load with this column. Wish me luck!

He’ll tell you that he simply saved the best for last.

Lee Barrington’s past thirteen years with ORX may pale in comparison to a lifetime of professional excellence and personal growth. But he’d say different.

There’s over a half-century of metallurgical experience driving this car – thirty years of which have been spent as a Quality Assurance expert seeing to it the exacting specifications of customers meet and exceed industry certification standards. For every one of those years and more, she’s been by his side – since 1957, in fact. That’s five states, two professional degrees, four children, twelve grandchildren and ten great grandchildren, if you’re keeping score.

ORXpertise

Lee Barrington Quality Assurance Director