June 2014 Railway Age by Railway Age

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JUNE 2014

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ON THE COVER Amtrak’s Empire Builder in Lyons, Wash., at sunrise. Photo: Bruce Kelly

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. 6. 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. COPYRIGHT© 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 Int’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.

June 2014 RAILWAY AGE 1

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From the Editor WILLIAM C. VANTUONO

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Freight not the only game in town

his month’s issue of Railway Age, in my mind, is a good indication of just how healthy the railway industry is. On the freight side—from which suppliers derive most of their revenues—the numbers continue to be positive. The Greenbrier Companies, for example, recently announced orders for 7,000 new freight cars worth more than $700 million. Greenbrier’s good fortune is an affirmation of a revised industry estimate by Economic Planning Associates for freight car deliveries of 62,300 units this year (p. 8). Granted, industry analysts prefer to be accurate, but in Peter Toja’s case, I’m certain he doesn’t mind having to revise his numbers to larger figures. The biggest concern, now and for the foreseeable future, is whether carbuilders and component suppliers will be able to meet demand. For more on the freight car market, see also our annual Guide to Equipment Leasing, p. 15. As Railroad Financial Corporation’s David Nahass puts it: “The railcar market continues to follow a trend of outrageous demand in some car types mixed with tepid demand in others. . . . The continued availability of cheap capital for investors in rail assets is fueling investments in rail from all over the marketplace. There are new operating lessors funded by a variety of monetary sources, private equity firms, and bank leasing companies—all competing for the same transactions in the marketplace. All in all, the leasing marketplace for rail equipment is volatile, aggressive, and hungry.” The supplier community, however, needs to keep in mind that freight isn’t the only game in town. This year’s Passenger Rail Planner’s Guide (p. 26), compiled by Managing Editor Doug Bowen, indicates the strength of the passenger market. Fickle funding sources aside, there’s enough projects under way or in the planning stages, be they regional/commuter rail, light rail, streetcar, rapid transit,

RAILWAY AGE

June 2014

intercity, or even high speed (well, more likely higher speed). A few examples: • MTA New York City Transit continues Phase I construction of the Second Avenue subway between 96th Street and 63rd Street in Manhattan, with MTA predicting completion by 2016. Revenue service for the $2.1 billion, one-mile No. 7 Line West Side Extension is scheduled for the end of this year. • Phase I of WMATA’s $5 billion expansion of the Orange Line to Dulles International Airport is projected to open this year, with the remaining six-station portion set to debut in 2016. WMATA’s $886 million order for 428 7000-Series cars, awarded to Kawasaki Rail Car USA in 2010, will be used to replace older 1000Series cars in use since 1976. The agency’s finance committee in May approved $1.14 billion for capital improvements, on top of WMATA’s $1.7 billion operating budget for FY 2014-15. • Charlotte’s City Council authorized $249.8 million for the LYNX Blue Line Extension and Blue Line Capacity project. • Atlanta’s 2.7-mile, $94.4 million Atlanta streetcar line is set to open this year, sporting Siemens S70 units. • CTA’s FY 2014-2018 $2.9 billion Capital Improvement Program includes $497 million for continued purchase of new rolling stock, with $265 million reserved to complete the purchase of 714 new Bombardier 5000-Series railcars, and remaining funds dedicated to a future railcar order. • In Los Angeles, the full 23.6-mile Gold Line Foothills Extension is proceeding with a $458 million contract awarded for the first 11.4 miles. These are just the tip of a substantial passenger rail iceberg. Why iceberg? As Doug Bowen notes, progress on some projects is “glacial.” But at least it’s moving.

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Industry Indicators TRAFFIC ORIGINATED CARLOADS

SHORT LINE AND REGIONAL TRAFFIC INDEX FIVE WEEKS ENDING MAY 3, 2014

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

APR. ’14 104,946 4,009 47,840 31,776 156,038 75,260 570,722 7,225 18,718 29,353 22,732 19,250 54,827 21,952 90,259 118,051 26,649 41,623 16,497 23,859 1,481,586

APR. ’13 82,263 4,288 44,774 32,748 150,094 69,944 536,220 7,342 17,401 29,642 31,140 18,780 51,454 21,621 86,189 107,857 26,951 37,112 15,714 21,251 1,392,785

% CHANGE 27.6% -6.5% 6.8% -3.0% 4.0% 7.6% 6.4% -1.6% 7.6% -1.0% -27.0% 2.5% 6.6% 1.5% 4.7% 9.5% -1.1% 12.2% 5.0% 12.3% 6.4%

408,797

410,447

-0.4%

1,890,383

1,803,232

4.8%

CARLOADS

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

COMBINED U.S./CANADA RR

FIVE WEEKS ENDING MAY 3, 2014

INTERMODAL MAJOR U.S. RAILROADS BY COMMODITY TRAILERS CONTAINERS TOTAL UNITS

APR. ’14 151,231 1,164,945 1,316,176

APR. ’13 138,077 1,069,614 1,207,691

% CHANGE 9.5% 8.9% 9.0%

9,004 289,698 298,702

8,406 262,046 270,452

7.1% 10.6% 10.4%

160,235 1,454,643 1,614,878

146,483 1,331,660 1,478,143

9.4% 9.2% 9.3%

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

300,000 310,000 320,000 330,000 340,000

350,000 360,000 370,000 380,000 390,000

RAILROAD EMPLOYMENT, CLASS I LINEHAUL CARRIERS, APRIL 2014 (% CHANGE FROM APRIL 2013)

Transportation (train and engine) 66,948 1.72%

Executives, Officials, and Staff Assistants 9,809 0.67%

Professional and Administrative 13,962 (-0.99%)

TOTAL EMPLOYEES: 164,289 % CHANGE FROM APRIL 2013: 0.31% Transportation (other than train & engine) 6,725 (-0.91%)

Maintenance of Equipment and Stores 29,872 (-0.60%)

Maintenanceof-Way and Structures 36,973 (-0.82%)

Source: Surface Transportation Board

EMPLOYMENT UP FROM YEAR-AGO, PRIOR-MONTH PERIODS Figures released by the Surface Transportation Board show Class I railroad employment rose 0.31% in mid-April 2014, measured against mid-April 2013, and was up 0.81% from mid-March 2014. Transportation (train and engine) powered the year-over-year gain, overcoming declines in four employment categories; it also rose 1.06% over mid-March levels. Also aiding the overall monthly gain: Maintenance of way and structures, advancing 1.28%. 4

RAILWAY AGE

June 2014

-0.1% 15.2% 3.8% -2.9% 25.2% 0.6% 2.8% -25.0% 18.2% 23.6% 10.7% -2.8% 11.2% 9.3% 0.7% 6.3% -4.8%

APRIL 2014 - 387,318 APRIL 2013 - 373,535

CANADIAN RAILROADS TRAILERS CONTAINERS TOTAL UNITS

ORIGINATED APR ’13 47,183 23,686 29,407 12,810 20,338 7,005 11,376 8,242 21,691 9,055 2,339 2,396 18,393 12,250 45,944 10,845 90,575

TOTAL CARLOADS, APRIL 2014 VS. 2013

CANADIAN RAILROADS ALL COMMODITIES

ORIGINATED APR. ’14 47,125 27,290 30,511 12,439 25,463 7,044 11,694 6,182 25,634 11,188 2,589 2,329 20,445 13,386 46,254 11,523 86,222

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Industry Outlook LIRR seen likely to endure strike

Met Council: LRT drives development St. Paul, Minn.’s Green Line (Central Corridor LRT project), set to open this month, already is being credited with “at least $2.5 billion worth of new construction and redevelopment projects” by the Metropolitan Council, overseeing public transit in Minnesota’s Twin Cities. “The development we’ve seen so far only marks the beginning of new opportunities in the Central Corridor,” said Met Council Chair Sue Haigh. “For decades to come, the Green Line will be a catalyst for employment and economic growth along its 11-mile route.” Metropolitan Council is tracking 121 projects that have announced total-investment figures, or have filed building permits, to reach the $2.5 billion figure. Of those 121 projects, 43 haven’t yet announced or made public an investment figure, meaning that the $2.5 billion figure is expected to climb in coming months. The compilation by Met Council presumably was made to counter years of complaints from some area businesses and allied parties asserting that light rail transit construction was damaging or destroying business development, with no discernable payoff in the future.

For one short line, new name, owner

TRB solicits safety ideas The Transportation Research Board (TRB) is accepting proposals for its Safety IDEA Program, “which supports the development and testing of innovative concepts and methods for improving railroad safety or performance.” IDEA (Innovations Deserving Exploratory Analysis. ) proposals seeking funding are due Sept. 16, 2014. 6

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June 2014

Montreal, Maine & Atlantic Railway has a new identity—Central Maine and Quebec Railway—following its purchase by Railroad Acquisisition Holdings LLC, an arm of New Yorkbased Fortress Investment Group. The purchase and name change, made official last month, gives the short line new direction following the derailment and explosion July 6, 2013, in Lac-Megantic, Quebec, resulting in 47 deaths. Chapter 11 trustee Robert Keach said the parties closed on the US$15.85 million sale of bankrupt MM&A, formerly owned by Chicagobased Rail World, Inc. A separate, parallel Canadian proceeding had yet to be completed last month. Proceeds from the sale will help pay off creditors.

New York’s Metropolitan Transportation Authority (MTA) is signaling its willingness to endure a strike by Long Island Rail Road employees, following a non-binding Presidential Emergency Board (PEB) decision seemingly favoring union stances. The PEB last month recommended MTA accept proposals by the United Transporation Union (UTU) Local 645 for wage increases of 17% over a five-year period, along with retaining existing pension obligations. UTU (and other unions) are allowed to strike within 60 days of the ruling, issued May 20, 2014. MTA had countered with a package paralleling one accepted earlier this week by Transport Workers Union Local 100 for New York City Transit (NYCT). But the PEB did not view this as a comparable situation, and rejected MTA’s stance. In a statement, MTA said: “The MTA is disappointed that the Presidential Emergency Board did not accept as the most reasonable offer our proposal for 11% raises over six years for the Long Island Rail Road unions, consistent with the agreement overwhelmingly ratified by the Transport Workers Union. Our proposal is a fair and reasonable way to recognize our employees’ hard work and provide them with competitive wages, retroactive pay, quality healthcare, and secure pensions. “If adopted, the Board recommendation would significantly reduce funds available for the MTA Capital Plan. We still believe a fair, reasonable, and affordable agreement can be negotiated at the bargaining table, as it was with the TWU,” the MTA statement said. Long Island Rail Road in 2013 reassumed its position as the largest U.S. regional passenger railroad by passenger loading, edging out sister railroad Metro-North. A strike presumably would exacerbate existing road traffic woes on the railroad’s namesake territory.

Market

Caltrain Modernization electrification RFQ issued Caltrain last month released an RFQ (Request for Qualification) for the electrification portion of its Modernization Program, which includes operating electric service with new, high-performance rolling stock between San Francisco and San Jose by 2019. The RFQ is focused on the design and construction of the electric power infrastructure and is “an opportunity for design-build teams to go through a qualification process before the Request for Proposals (RFP) is issued,” Caltrain said. “The RFP for the electrification portion of the project is expected to be issued early next year, after the project has received environmental clearance. Only prequalified teams will be able to submit a proposal. The contract is expected to be the largest contract ever awarded by the Peninsula Corridor Joint Powers Board.”

North America MASSACHUSETTS DOT: Approved the purchase of 24 light rail vehicles from Construcciones y Auxiliar de Ferrocarriles (CAF) for Boston’s Green Line (the “T”). Delivery will start in late 2017 from CAF USA’s facility in Elmira, N.Y. LACMTA: Awarded a $927.2 million contract to Regional Connector Constructors, a joint venture of Skanska USA Civil West California District Inc., Traylor Brothers Inc., with Kiewit and Hatch Mott MacDonald, to design and build the Regional Connector Transit Project light rail line in downtown Los Angeles.

W. VIRGINIA UNIVERSITY: Awarded a contract to Thales to modernize the Personal Rapid Transit (PRT) system on university’s Morgantown, W. Va., campus. Thales “will supply a turnkey transport systems solution,” including installation of CBTC technology, automatic fare collection, a passenger information system, and other items.

KONYA, TURKEY: Placed a follow-on order with Škoda Transportation for 12 catenary-free type 28T Classic light rail vehicles.

Worldwide

SINGAPORE LAND TRANSPORT AUTHORITY: Selected GE Transportation to supply fully automated driverless train control and signaling systems for the Thomson (TSL) and Eastern Region (ERL) Lines based on its Tempo™ portfolio.

DE LIJN (BELGIUM): Awarded Bombardier a contract worth around $8.2 million to carry out heavy overhauls on 20 meter-gauge light rail vehicles used on the coastal tramway between Knokke and De Panne.

SWISS FEDERAL RAILWAYS: Awarded a $1.1 billion contract to Stadler Rail for 29 electric multipleunits (EMUs) for the railway’s Gotthard route. The first trains will enter service at the end of 2019. June 2014 RAILWAY AGE 7

Update SUPPLY BRIEFS For MTA PTC, Bombardier taps Lilee Systems

Greenbrier Cos. orders affirm revised EPA industry estimate

Bombardier Transportation has selected Lilee Systems to assist in the design and build of Positive Train Control (PTC) for New York’s Metropolitan Transportation Authority (MTA). The effort involves installation of wireless and wired ACSES II communications for both the Long Island Rail Road (LIRR) and Metro-North Railroad. Lilee Systems will be responsible for end-to-end ACSES II PTC communications performance, all 220 MHz RF (radio frequency) propagation analysis, measurement and implementation, RF interference mitigation, wireless and wired network planning, and backup cellular and Wi-Fi communications, including the Lilee Systems CMU-2100 family of TransAir Communications Managers for all onboard, wayside, and back office locations.

TransCanada Corp., whose Keystone XL pipeline project has been stalled by politically related delays, is in discussions with customers about shipping Canadian crude to the U.S. by rail as an alternative, “We are absolutely considering a rail option,” TransCanada CEO Russ Girling told Reuters, saying the company was exploring CBR shipments from Hardisty, Alberta, the main storage and pipeline hub, to Steele City, Neb., where it would flow into an existing pipeline to the Gulf refining hub. Jarrett Zielinski, CEO of TORQ Transloading, which is building Canada’s largest unit train terminal in Kerrobert, Sask., said TransCanada would need to load at least roughly nine unit trains per day to rival the takeaway capacity of Keystone XL, if the trains were to load raw bitumen. 8

RAILWAY AGE June 2014

he Greenbrier Companies, Inc. received new orders in April and May for 7,000 railcar units valued at more than $700 million, affirming an upward revised industry estimate by Economic Planning Associates, made early last month, for freight car deliveries of 62,300 units in 2014. This number, EPA said, “is based on first-quarter 2014’s strength in orders, assemblies, and end-of-March backlogs.” For 2015, EPA is predicting 61,300 cars. Beyond that, EPA said annual railcar assemblies will expand very moderately, at historically high levels, from 60,800 cars and intermodal platforms in 2016 to 62,500 in 2019. Lake Oswego, Ore.-based Greenbrier Cos.’ subsequent announcement last month comprise a broad range of railcar types, including a recent award for more than 1,700 intermodal

platforms. Other orders include nearly 2,500 small-cube covered hoppers and more than 2,300 tank cars primarily used in the energy sector. Continued strength in automotive markets resulted in orders for 400 automotiverelated products in North America and Europe, Lake Oswego, Ore.-based Greenbrier noted. These announced are in addition to the 3,100 units valued at approximately $265 million received in March 2014 and first reported April 3, 2014. Since the start of the company’s fiscal third quarter in March, Greenbrier has received orders for more than 10,000 railcars valued at nearly $1 billion. Since Sept. 1, 2013, the beginning of the company’s fiscal year, Greenbrier has received orders for more than 18,400 railcars in North America and Europe valued at almost $1.7 billion.

Bruce E. Kelly

TransCanada eyes rail as oil pipeline option

Accelerating intermodal loadings and a record grain harvest are contributing factors. “As we anticipated earlier this year, increases in rail loadings across multiple car types, coupled with reductions in velocity, are driving demand for many of our car types, including intermodal platforms,” said Chairman and CEO William A. Furman. Reduced speeds for most trains carrying crude oil continue to affect velocity across the entire rail network, Greenbrier Cos. observed. As well, intermodal car loadings are up more than 5% compared with the same period in 2013 as intermodal shipments by rail have surpassed pre-recession levels and continue to increase. Greenbrier said it also continues to benefit from a strong automotive-related products market with its comprehensive product line, as the aging fleet of automotive rail carriers has led to an active railcar replacement cycle. Shipments of petroleum and petroleum products, including crude by rail, have grown year-to-date by 6.6% compared to the same period in 2013, continuing to drive demand for tank cars. Tank car sales for agricultural products, like vegetable oil, have also been a recent area of strength, with Greenbrier receiving orders for 200 units. Newly developed techniques for energy extraction by hydraulic fracking require more sand per well. As a result, carloadings for crushed stone, sand, and gravel are up by nearly 7% compared to similar 2013 loadings driven largely by the growth in frac sand. “The strength of the energy renaissance in North America continues unabated,” Furman said, noting Greenbrier received “orders more than for 2,100 tank cars for transporting crude oil, despite lingering regulatory uncertainty on the prescribed safety design features for these cars. The specification for these current tank car orders require that these cars will meet or exceed the highest safety standard currently approved for operation on the North America rail network—the CPC-1232 tank car design standard.” The EPA report largely concurs with

Furman’s assessment of wide-ranging demand, stating “[o]ur analyses of each car type indicate steady and/or stable growth out to 2019.” The report added, “While tank cars remain dominant in the freight car environment, we are enthused by the strong recent growth in demand for mid-sized and small-cube covered hoppers as well as the high level of backlogs for hi-cube equipment. The 11,565 small-cube hopper cars ordered in the opening quarter for frac sand and construction markets has boosted our outlook for this equipment. “By the same token, the rebound in grain haulings and the need for dry fertilizers have also boosted our outlook for mid-sized equipment. A rebound of sorts has begun in the area of intermodal equipment, which should continue longer term. We remain cautious on the pickup in demand for coal carrying equipment, but given what appears to be a somewhat more favorable environment, we will closely monitor coal demand this year and next.” EPA continued, “From this point on, we look for steady demand for boxcars, grain cars, small-cube covered hoppers, and mill gondolas, and continued strong tank car demand. Even with an anticipated rebound in coal haulings this year, we remain cautious on the outlook for coal cars, primarily because we have heard that customers prefer to rebuild rather than purchase new equipment in the currently dismal coal environment.” “The solid income base of the railroads” should support continued railcar demand, while railroads have committed to “strong capital spending plans for 2014 as they prepare for continued growth in oil, chemical, light vehicle, and intermodal movements,” EPA observed. But tank cars will be the driving factor for the foreseeable future, EPA said, and while economic expansion would aid all order categories, “the most dynamic element in the long-term railcar environment will be tank cars to transport ever increasing volumes of oil and petroleum products.” June 2014 RAILWAY AGE 9

Update BNSF, Ferromex set intermodal service BNSF Railway and Ferromex (FXE) last month announced a new intermodal service between Chicago and Silao, Guanajuato, Mexico. Scheduled service that began May 27 is designed to provide customers with a reliable and a fast transportation option to move goods across the U.S.-Mexican border. The two railroads hosted customers, intermodal carriers, and elected officials during an opening event May 20, one week prior to launch, to showcase the new service at the expanded FXE Silao Intermodal Facility inside the Inland Port of Guanajuato in Silao, Guanajuato. “Our partnership with Ferromex to launch this service from Chicago to Silao means that automakers and manufacturers in the U.S. and Mexico will now have direct access to the advantages of intermodal rail in the Bajio region,” said Steve Bobb, BNSF executive vice president

and chief marketing officer. “This service offers Mexico’s fast growing manufacturing sector in the Bajio region a simple way to reduce trucking costs and delays,” Bobb said. Trains carrying intermodal containers will interchange at El Paso, Tex., to and from FXE, Mexico’s largest railroad, which will operate the trains between the border crossing and Silao five days a week. Silao lies roughly halfway between Guadalajara and Mexico City, the nation’s capital and Ferromex’s headquarters city. “Mexico is the United States’ third largest trading partner with a yearly trade of just over $500 billion. This translates into 14,000 trucks crossing between our borders on a daily basis,” said FXE Chief Marketing Officer Fernando Lopez. “We created this intermodal train

to serve such a market, delivering not only a consistent and reliable alternative, but a solid competitive advantage for North America as a region,” Lopez pointed out. Both railroads assert that the new service “is better at the border when compared to trucking” because there is no cross-border trucking across congested highway bridges. Southbound shipments are moved in-bond (which means shipment documentation is handled at the final destination) to minimize Mexico Customs clearance delays. Once the shipments arrive in Silao, customers can clear their cargo with the customs broker of their choice through Mexico Customs. Northbound shipments are precleared by a customs broker of the customer’s choice with U.S. Customs, the companies said.

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 10

RAILWAY AGE June 2014

SunRail passenger service debuts in central Florida

RAILWAYAGE

SunRail regional rail operations began with celebratory free rides for customers on May 1, 2014, bringing serving to the Orlando, Fla., metropolitan area. State and local officials marked SunRail’s launch one day prior (photo, left). The 32-mile first phase portion of the route includes 12 stations. Ridership on May 19, the first day fares were collected, was 4,177, SunRail said, approaching Florida’s Department of Transportation’s initial ridership goal of 4,300 passengers per day. Last year FDOT tapped Bombardier Transportation to provide operations and maintenance services for SunRail, also dubbed the Central Florida Commuter Rail Transit project, worth about $195 million. SunRail’s passenger fleet includes 20 Bombardier BiLevel railcars. In November 2011, FDOT paid $150 million to purchase the full 61-mile SunRail right-of-way in central Florida V.pdf 1 03/03/14 from CSX Corp. 16:30

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June 2014 RAILWAY AGE 11

Update Railway Age honors top 2014 short line, regional railroads

ARG Vice President Transportation Services Tom Foster (center) accepts Railway Age’s 2014 Short Line of the Year honors for Coos Bay Rail Link at the ASLRRA Annual Meeting in San Diego, flanked by Railway Age Managing Editor Douglas John Bowen (left) and ASLRRA President Richard F. Timmons.

Arkansas & Missouri Railway Chairman Reilly McCarren (at podium) addresses ASLRRA members after accepting the Railway Age 2014 Regional Railroad of the Year Award, while Bowen (second from left), Timmons (fourth from left), and A&M executives look on.

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RAILWAY AGE June 2014

Short line Coos Bay Rail Link (CBRL), Railway Age’s 2014 Short Line of the Year, has been named a new member of the U.S. Environmental Protection Agency’s SmartWay® Transport Partnership program. EPA, in a letter to CBRL last month, noted and applauded CBRL’s commitment to improve fuel efficiency and reduce greenhouse gas emissions and air pollution. As the 19th rail carrier in the nation to become a SmartWay member, CBRL joins its sister railroad, San Pedro & Southwestern Railroad, based in Benson, Ariz. ARG Transportation Services, based in Eugene, Ore., operates both lines. “This helps show that ARG is committed to being good stewards of the environment and good neighbors,” said ARG President Scott Parkinson. Added Paul Thomas, vice president of rail operations for ARG, “This designation recognizes the effort that the Coos Bay Rail Link staff has put into operating in the most efficient manner.” Thomas thanked all CBRL employees, noting, “They save fuel, lower costs, and reduce adverse environmental impacts.” CBR Office Manager Treece Rempolos, cited for his role in the railroad’s designation, said, “EPA’s SmartWay program will track fuel usage and help us improve our efficiency from year to year.”

Kelvin MacKavanagh

Coos Bay Rail Link named to SmartWay program

Watching Washington FRANK N. WILNER

Data-phobic FRA’s ‘Book of Mormon’

ail labor’s sabots are showing. It’s not a pleasant sight. “Sabots” — French for wooden shoes and the etymological root of “sabotage”—were thrown into the gears of textile looms by 15th century workers in failed hopes of thwarting technology. Rail labor is engaged in a modern-day sabots-throwing exercise to preserve conductor jobs likely unnecessary for safe-train operation as collision-avoidance technology named Positive Train Control (PTC) is installed. Troublingly, rail labor has recruited the Federal Railroad Administration (FRA) as a compliant time traveler to decades past when redundant train crews of up to seven sent the industry tumbling into a financial abyss. Job security could have been—but wasn’t— softened by interest-based bargaining where each side works to meet the other’s concerns. Welcome to déjà vu. PTC is a more-than $12 billion investment to eliminate human factorcaused train accidents. Rail labor long has advocated its development and implementation. But as with previous technological advancements— semi-automatic couplers, air brakes, diesel-electric locomotives, end-oftrain devices, and remote-control belt packs—some jobs become redundant. Rather than acknowledge technology’s merit in improving safety, rail labor has recruited the FRA to assert, without data-determined scientific evidence, that safe train operation requires a minimum of two crew members. Well, not on all trains, and here is where arguments of the labor/FRA cabal become dodgy. A former president of the Brotherhood of Locomotive Engineers and Trainmen (BLET) predicted in 1985 that technology would permit engineeronly operations. On the Northeast Corridor, Amtrak’s high-speed Acela

trains operate with a lone engineer in the cab, as do Amtrak and commuter trains virtually everywhere else—and most under collectively bargained labor contracts. Some 80 smaller railroads operate engineer-only. The safety records are outstanding. In 2001, the BLET negotiated engineer-only on Indiana Rail Road (INRD), and more recently stated willingness for engineer-only on a division of Class I BNSF. INRD President Tom Hoback traveled to the U.K. and New Zealand where one-person unionized crews are

Labor has recruited the FRA to assert that safe trains require a minimum of two crew members. common. “Engineers said they had fewer distractions working alone,” Hoback says. “It has never been a contentious issue in INRD contract talks.” In 2009, the FRA said it had “no factual evidence to support [a] prohibition against one-person crew operations.” The California Public Utilities Commission concluded a two-person crew “could aggravate engineer distraction,” while the National Transportation Safety Board does not oppose phasing out two-person crews as other safety enhancements, such as PTC, are implemented. Yet in April, the FRA, at the urging

of labor, said it would promulgate a rule requiring two-person crews. Privately, some at FRA disparage the agency’s effort as “the Book of Mormon,” saying FRA lacks data, and its arguments are ubiquitous with the term, “we believe.” Despite carrier assurances they would not attempt to expand engineer-only operations prior to implementation of PTC—allowing time to examine post-PTC-implementation safety data—the FRA says r ecent crude oil by rail (CBR) accidents require prompt regulatory action to prohibit engineer-only. Seriously? Of 15 CBR accidents in the U.S., all resulted from rail flaws. And while the horrific July 2013 Lac-Megantic, Que., accident allegedly resulted from failure to apply sufficient hand brakes to hold a train following loss of air brakes— not then required under Canadian regulations—such a regulatory requirement has long been in force in the U.S. With U.S. CBR accidents traceable entirely to rail flaws, the data-phobic FRA’s motive in requiring two-person crews is highly suspect, and diverts scarce resources that should be focused elsewhere. Regulatory actions should be data-driven. Yet when a carrier official suggested a data-driven approach, an FRA official responded—according to FRA-prepared meeting minutes— “What would be the objective of this exercise?” That the FRA administrator is a former union officer legitimately adds to anxieties. Congressional oversight may soon probe what really is going on, and surely if the FRA proceeds, a federal court challenge, accompanied by extensive pre-trial discovery, will focus sunlight. Clearly not the FRA’s finest hour, this may well be its nadir. June 2014 RAILWAY AGE 13

GUIDE TO

EQUIPMENT LEASING

The leasing marketplace is volatile, aggressive, and hungry.

elcome to the 2014 Railway Age Guide to Equipment Leasing. This special section is devoted to the railcar market, specifically to the lease market for general-purpose and tank cars.

William C. Vantuono

MARKET OVERVIEW

The railcar market continues to follow a trend of outrageous demand in some car types mixed with tepid demand in others. With a current backlog (as of the end of 1Q2014) of almost 82,000 cars, demand is strong for covered hoppers and tank cars with light to no building of other car types. The regulatory environment for tank cars remains unsettled, and that is impacting railcar markets and lease rates. The continued availability of cheap capital for investors in rail assets is fueling investments in rail from all over the marketplace. There are new operating lessors funded by a variety of monetary sources, private equity firms, and bank leasing companiesâ&#x20AC;&#x201D;all competing for the same transactions in the marketplace. All in all, the leasing marketplace for rail equipment is volatile, aggressive, and hungry.

By DAVID NAHASS, Railroad Financial Corp.

COVERED HOPPER MARKET EXPLOSION

The recent run-up in demand for covered hoppers of all types has been both incredible and insatiable. While demand for cars used in hauling sand and cement was on the rise in the latter part of 2013, there has been a significant market shift and demand increase driving an order backlog and lease rate market that is extraordinary. There have been several residual effects from the run-up in orders of sand/cement hoppers. One, covered hopper cars of all types have seen an increase in demand. This includes covered hoppers for plastic pellets and grain. Two, the intensity of the demand has driven lease rates for all three primary types of covered hoppers higher. Three, there has been an increase in concern about the potential for overbuilding in these markets. In 1Q2014, more than 12,000 covered hopper cars were added to the manufacturing backlog. In spite of overbuilding concerns, the backlog for covered hopper cars of all types is strong. After a short-lived pullback in demand in 2013, in 1Q2014, more than 10,000 smallcube covered hopper cars (for hauling sand and cement) were added to the manufacturing backlog. That is an increase June 2014 RAILWAY AGE 15

EQUIPMENT LEASING GUIDE

For many investors, covered hoppers may represent a safe haven from the tumultuous tank car regulatory environment.

of 15% over the current small cube covered hopper railcar fleet. This increase has pushed the manufacturing backlog f or this car type out into 2015 and on the threshold of 2016. Anecdotal descriptions of multiple-thousand-plus car orders are rife within the market both from end users and the operating lessors. For plastic pellet hoppers, the identified target zone of late 2015 into 2016 is fast approaching. Large orders of plastic pellet hoppers placed for delivery beginning mid-2015 have already been awarded, and there are various large-scale projects and orders ready to be placed for delivery in 2016 and into 2017. Orders for this car type also include orders from operating lessors. On the grain side, 2013’s strong harvest and shrinking manufacturing capacity has companies scrambling to grab capacity wherever it is available. Market Intelligence is suggesting that some builders may have sold out manufacturing lines for covered hopper production through December 2015.

For many investors, covered hopper cars may represent a safe haven from the tumultuous regulatory environment of tank cars. In practical terms, any company hoping to build a covered hopper car of any capacity before Jan. 1, 2016, needs to be in process for placing those orders today. The market drivers for this level of demand are pretty straightforward, and many of them relate to circumstances the are direct or indirect results of the intense growth of hydraulic fracking and the low price of natural gas. Chemically treated sand is an integral component of the frac drilling process. More wells, or more drilling into existing wells, requires more sand. Natural gas, the off-take from the wells, is plentiful and has stayed at a price that is reasonable. Cheaper fuel prices are driving domestic industrial growth. Plastics production in North America will add capacity in large numbers from 2015 to 2017. For grain demand, an aging fleet of older assets, a few years of underbuilding during the economic downturn, some sharing of that older fleet (4,750-cubic-foot cars) with the market for sand cars

Car Type (cubic capacity, commodity, 000’s # gross rail load [GRL])

Lease Rate May 2013

Lease Rate May 2014

Year over year change

New car price (est.)

3,200 cf hopper (sand/cement – 286 GRL)

$550.00

$650.00

18%

$80,000

4,750 cf hopper (grain – 263 GRL)

$250.00

$350.00

40%

N/A

5,200 cf hopper (grain – 286 GRL)

$400.00

$450.00

12.5%

$90,000

6,200 cf hopper (plastic pellets – 286 GRL)

$575.00

$750.00

30%

$103,000

RAILWAY AGE

June 2014

EQUIPMENT LEASING GUIDE

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Call +1 (312) 756 3882 www.macquarierail.com

June 2014 RAILWAY AGE 17

EQUIPMENT LEASING GUIDE

covered hopper cars. I spoke with industry sources to obtain these rates. The rates listed below are per car per month for a five-year full service lease payable monthly in advance. These prices reflect the increase in demand for certain car types and the influx of capital and competition that continue to drive pricing in the marketplace. In a sense, it seems almost counter-intuitive. With demand so far ahead of supply, end users of equipment might expect a more robust surge in lease rates to account for the demand overhang. So far, the lease marketplace has not shown an instinct to stretch out and press rates to the types of historical levels typically representative of the supply and demand imbalance.

Some builders may have sold out manufacturing lines for covered hopper production through December 2015.

Intermodal continues to be a bright spot.

and a general increase in overall demand has driven a surge in demand for grain hoppers of all sizes. What has the demand dynamics done to lease rates for these cars? In what will be a recurring theme in the discussions on all car types in this issue, lease rates frequently follow the manufacturing demand curve. In other words, the more demand that exists for a car, the higher the lease rate is likely to be. The chart on page 16 shows the changes over the past twelve months in operating lease rates for a variety of

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RAILWAY AGE

June 2014

None of the lessors with whom I spoke had any explanation for this circumstance other than noting that the market lacked the backbone or “chops” to push through price increases and risk pushing end users to source their own cars rather than lease cars from operating lessors. If this is true, and there’s no reason to believe it is not true, this hesitation to drive price increases is not opportunistic. Rather, it demonstrates a belief in the long-term demand curve for these cars and the markets that they serve. In other words, this demand surge is driven by growth and not by any service-related slowdown creating short-term demand. Could the backlog for hopper cars reach 24 months? A full sellout of all hopper car manufacturing capacity for that period of time seems unlikely. Certain car types, such as plastic pellet covered hoppers, might become more difficult to find in that timeframe as orders get placed for new facilities coming on line in 2016 and 2017. As new car prices continue to advance, look for an additional surge in the pricing on used cars in these markets for cars that are of modern capacity (286 GRL). RailSolutions Offers: • Railroad Equipment Appraisal and Valuation Services • Portfolio Analysis and Lease Valuation Services • Equipment Remarketing • Railcar and Locomotive Inspections, and Technical Services • RailSolutions Publishes the Investors’ Guide to Railroad Freight Cars and Locomotives – A comprehensive reference manual covering market and valuation data on virtually all types of railcars and locomotives used in North American rail freight services.

RETHINK YOUR MAINTENANCE of WAY EQUIPMENT

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MOW Equipment Intermodal Lifting Equipment Motive Power Earthmoving Machinery

EQUIPMENT LEASING GUIDE IN THE EYE OF THE TANK

Tank cars continue to be ordered and built at a tremendous pace.

We make 20th century railcars work for the 21st century.

U.S. Operating Lessor of Railcars & Intermodal Equipment Infinity is a private lessor of a variety of railcar rolling stock. Infinity prides itself on exceptional customer service and flexibility with regard to leases and railcar modifications to find the transaction and equipment to best serve our customers. Lease packages are tailored to meet customer needs, including a variety of short-term operating leases and long-term leveraged leases, as well as other assignment and deployment arrangements. Larry Smith Vice President Equipment Sales Office: 678-904-6306 Cellular: 678-296-9709 Email: lsmith@infinityrail.com

Lee Martini Vice President Sales & Marketing Office: 678-904-6315 Cellular: 404-290-9233 Email: lmartini@infinityrail.com

Corporate Offices 1355 Peachtree Street NE Suite 750 - South Tower Atlanta, GA 30309 www.infinityrail.com facebook.com/infinityrail twitter.com/infinity_rail A joint venture of IAM Affiliates and Perella Weinberg Partners

RAILWAY AGE

June 2014

The regulatory environment for tank cars continues to generate industry buzz. Talk to three different insiders on three different days and you will find three different points of view on the where, when, and how of tank car regulation. The only thing that everyone agrees on is the why, so let’s start there. In case you have held out on reading any other industry information about the tank car market, here’s a 30,000 foot summary. As a result of derailments with unit trains, crude oil tank car design requires modification and upgrading to improve safety. The scope and timing of these improvements remains unknown at this time. In spite of all of the pending U.S. Department of Transportation changes, tank cars continue to be ordered and built at a tremendous pace. Based on the most recent ARCI data, there were roughly 4,700 tank cars ordered in 1Q2014 while there were roughly 8,900 built. Both of these data points are consistent with calendar quarter 4Q2013. Annualize these numbers and the data is astounding: Annual backlog added is roughly 19,000 cars and the annual build rate is roughly 35,000 cars. One tank car builder is rumored to have backlog orders out past mid-2016. Historically, the tank car annual build rate has been closer to 9,000 cars. All of this is occurring while the industry is contemplating broad sweeping design changes in its primary tank car designs. The difference in cars built and cars ordered may seem to indicate some reticence for new orders as the industry waits for the DOT. The lease marketplace for tank cars is exhibiting its own brand of concern in the face of current uncertainty. We have heard from multiple sources that many leasing companies (banks and operating lessors) are sitting on their hands in regard to the manufacturing, purchase, and leasing of DOT-111As until the modifications have been announced and confirmed. It’s a position that makes sense. With the cost of modifying a car potentially doubling (to as high as $30,000) once a car has been built, investors would want to build the car that has the DOT stamp of approval. Key components of the expected changes such as the timeline for implementation and the potential for grandfathering of some existing tank cars are also unknown. What is a lessor to do? Most tank cars leased by operating lessors (builders such as ARI, Trinity, or Union Tank Car, and finance companies such as CIT, First Union Rail, GATX, and GE Railcar Services) are leased in a full-service lease structure. A typical full-service lease covers mandatory changes to equipment using a mechanism to increase lease rates based on the cost of the modification. However, the potential cost impact of the current DOT changes may spark a number of potentially heated debates among lessees and lessors on exactly who should be responsible for the lion’s share of the modification costs presently contemplated. LEASE RATES

What has this done to lease rates generally on a five-year, full-service basis? Rates have retreated slightly from the highs

EQUIPMENT LEASING GUIDE

Railonomics

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Rail Car Repair - 19 locations AAR Certified, M1003 Approved • REPAIRS MOBILE UNITS • PAINTING • REDESIGN STEEL FABRICATION • CAR CONVERSIONS Rick Gieryng (419)891-6634 rick_gieryng@andersonsinc.com

RAIL GROUP – PO BOX 119 • MAUMEE, OHIO 43537 – FAX: (419)891-2749 – www.andersonsrail.com

June 2014 RAILWAY AGE 21

EQUIPMENT LEASING GUIDE

that were common in mid-2013 (rumored at around $2,500 per car per month). Current seven-year, fullservice lease rates for 31,000-gallon non-coiled, non-insulated tank cars (the standard Bakken crude car) are around $1,600 per car per month depending on the quantity, availability, and specification. For the coiled and insulated 25,500-gallon car, the seven-year, fullservice lease rate is around $1,750 per car per month, again dependant on the same variables. It is difficult to peg year-over-year comparable rates as the volatility in the market has seen high rates that may have been unsustainable. The tank car build is not limited to the DOT-111A cars and this supports the additional demand. THE REST OF THE STORY

Lest any reader think that the entire railcar world revolves around tank cars and covered hoppers, here’s a rundown on the rest of the car market and what

the rest of the lease marketplace for railcars looks like. COAL CARS: Coal has seen a surge in demand and of cars moving into service starting back toward the beginning of 2014. Cars that sat idle for one to three years have moved back into service and are earning revenue. The demand for coal equipment in the face of a consistent source of reasonably priced natural gas can be traced to two primary factors: coal’s scale in the overall market and train velocity. Even with all of the discussions on crude and natural gas, coal is still a rail king, accounting for 40% of all non-intermodal carloads year to date. Lease rates? Five-year, full-service rates are running in the high $300s for gondola cars and low $400s for rapiddischarge hopper cars. Is the run sustainable? Sources suggest that this market holds water until 2016. BOXCARS: The boxcar market has held mostly level during the past 12

The boxcar market has been steady.

months. Other than a few orders built by TTX, the leasing community has stayed away from building into this market. Steep pricing (think $130,000 or so for a new 50-foot Plate F box)

The right equipment. The right lease. The right people. Taking your product to market efficiently and reliably requires the right equipment. First Union Rail has just what you need: superior railcars and experienced professionals who can offer leasing terms and structures that make sense for your company. Let us help move your business forward with: Railcar operating/capital leases • High-quality, diverse fleet • Fleet management services Ready to learn more? Call today at 847-318-7575 • Firstunionrail.com © 2013 Wells Fargo & Company. All rights reserved. First Union Rail Corp. is associated with Wells Fargo & Company, a company that is not regulated as a financial institution, a bank holding company or an insurance holding company in Canada. MC-4332

RAILWAY AGE

June 2014

EQUIPMENT LEASING GUIDE

and few projections for growth keep investors from jumping in. The biggest boxcar news is the GATX purchase of the GE Railcar Services per diem fleet and the confidence that purchase shows in the long-term prospects for segments of this market. If there is a lease opportunity, lease rates run in the mid $600s five-years, full-service— not a market for the faint of heart.

buy-in cost is high. Think $285,000 for a five-unit articulated 40-foot doublestack car. In love with the 53-foot car? Be prepared to pay $195,000 for an articulated three-unit car. Overall, the general market shows a bit of a disconnect between car pricing and lease rentals. Other than the covered hopper market and the tank

market, lease rentals and new car prices are not moving in tandem. Savvy buyers should be looking for opportunities for lease and purchase with eyes open. Have your checkbook out. Opportunities are unlikely to last, so grab them when you see them. Have questions? Set them free at dnahass@railfin.com RA

MILL AND COVERED COIL GONDOLAS: Cars for steel hold

the same place as boxcars in the lease market today. After several turns as being the next car to go boom in the market, the market seems to have finally accepted that at today’s new car prices ($90,000-plus for a modern 286 GRL car), rental rates will not support investment in new equipment. There has been some spot building in the past few years (again a large portion by TTX, especially of the 66-foot western railroad scrap car), but nothing along the lines that would support a strong increase in the total fleet for this car type. Five-year, full-service lease rates on modern capacity cars are running in the mid $500s depending on age, condition, and size (52-foot vs. 66-foot). If the lease rates were to improve from current levels, there may be some opportunities for growth with today’s capital interest rate environment. What’s one of the challenges? Getting a manufacturer to build a small group of these cars in the current manufacturing environment. On the hunt for gons? Look to the secondary market for investment opportunities and diversification. INTERMODAL CARS: Intermodal continues to be a bright spot. There is building of new equipment for growth and fleet rejuvenation. 2014 intermodal loads will top five million soon and are right now running at a 5% improvement over 2013. The lease market for these cars is thin. The primary market here is TTX acquiring flat cars and autoracks from the manufacturers. However, if an operating lessor has the “right” asset type, that can lead to the type of long-term leasing relationship that lessors love. Be prepared: The

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June 2014 RAILWAY AGE 23

EQUIPMENT LEASING GUIDE

LEASING RESOURCE DIRECTORY

CIT Rail owns more than 100,000 railcars and 450 locomotives leased to approximately 500 customers, and provides financial solutions to the bulk freight transportation marketplace. It supports the North American transportation system by working with freight shippers, receivers and carriers to customize financial solutions for each customer’s individual needs. As a full service lessor and owner of one of the youngest, most diversified fleets of rail assets in North America, CIT Rail brings unparalleled asset management expertise and commitment to the transportation sector.

citrail.com

The Andersons Rail Group consists of approximately 23,000 cars and 150 locomotives. To better serve our customers, The Andersons Rail Group operates a large fleet of mobile units, over 19 facilities and a steel fabrication facility to produce custom rail components. We understand the importance of haivng extensive knowedge about taxation, government regulations and railroad requirements. As a valued customer of The Andersons Rail Group, you can expect reliable equipment, flexilble lease options and superior customer service. Please visit our website at:

www.andersonsrail.com SALES/LEASING Chuck Brown, VP, Sales Jerry Smith, Sales Rep. Matt Keck, Sales Rep. REPAIR Rick Gieryng Sam Anderson Rob Hassen

419-891-6386 419-891-6613 419-891-6693 419-891-6634 406-560-6920 419-891-2998

Macquarie Rail Inc. is a rapidly growing freight car lessor serving the North American marketplace. Through combining an experienced team of rail veterans with the strength and expertise of the Macquarie Group, we are building a diverse portfolio of equipment to serve the varied needs of railroads and rail shippers. Macquarie Rail Inc. 1 North Wacker Drive, 9th Floor Chicago, IL 60606 Telephone: 312-756-3880 Facsimile: 312-756-3847 railinfo@macquarie.com

www.macquarierail.com

The David J. Joseph Company The David J. Joseph Company’s (DJJ) Rail Equipment Group offers a wide variety of rail transportation services at any point in the life of a railcar. The company is active in equipment marketing with flexible sale and lease options, including short term, long term, net, modified and full service leases. As an operating lessor, as well as large user of railcars transporting company bulk commodities, DJJ is sensitive to the equipment needs of railroads and private industries. The David J. Joseph Company Rail Equipment Group 300 Pike Street • Cincinnati, OH 45202 (513) 419-6200 • f (513) 419-6221 www.djj.com • contact: info@djj.com

RAILWAY AGE

June 2014

With over 100 years experience in the rail and finance industries, Progress Rail Equipment Leasing. is a full-service professional leasing firm specializing in leasing railroad maintenance equipment. We finance and refinance MOW equipment, intermodal equipment, locomotives, railcars, and other railoriented equipment. Our experts’ dedication and uncompromising focus on quality sets us apart from the competition. Progress Rail Equipment Leasing develops leasing programs to cut equipment costs and provides leasing structures that are tailored to meet the rail industry’s specific and ever-changing needs. In addition, we offer finance and operating leases, sales/ leaseback programs, and short and longterm rentals. Progress Rail Equipment Leasing 15173 North Road, Fenton, MI 48430 (810) 714-4626 Voice • (810) 714-4680 Fax

www.progressrail.com/leasing

First Union Rail is one of the leading railcar leasing companies in North America. At First Union Rail we specialize in providing superior equipment, customized financing, operating lease structures, as well as marketing and transportation management services. First Union Rail is a relationship-driven, flexible organization, committed to continually exceeding our customers’ expectations by providing greater value, more quality, and the highest standards of service.

www.firstunionrail.com A Wells Fargo Company Richard Seymour First Union Rail 847-318-7575 (P) • 847-318-7588 (F)

EQUIPMENT LEASING GUIDE

The pages of the 2014 Guide to Equipment Leasing (pages 24 through 25) contain the profiles of companies that provide equipment leasing and financial services and products to the rail industry. All of these firms have advertisements elsewhere in this section or have used paid profile space to present their background and capabilities.

SMBC Rail Services LLC is committed to providing innovative rail car leasing products and services to North America’s vital rail industry. Let one of our experienced professionals show you how. Visit us at our website: www.SMBCrail.com, or call us at 1-866-4-RAILCARS. Gene Henneberry, President and CEO SMBC Rail Services LLC 300 S. Riverside Plaza, Suite 1925 Chicago, IL 60606

Infinity is a private lessor of a variety of railcar rolling stock. Infinity prides itself on exceptional customer service and flexibility with regard to leases and railcar modifications to find the transaction and equipment to best serve our customers. Lease packages are tailored to meet customer needs, including a variety of short-term operating leases and longterm leveraged leases, as well as other assignment and deployment arrangements. Larry Smith, Vice-President-Equipment Sales (678) 296-9709 • lsmith@infinityrail.com Lee Martini, Vice President of Sales & Marketing (678) 904-6315 • lmartini@infinityrail.com CORPORATE OFFICES 1355 Peachtree Street Suite 750 South Tower Atlanta, GA 30309

www.infinityrail.com

RailSolutions provides a broad variety of railroad equipment-related consulting, technical and advisory services to financial institutions, railroads, shippers and fleet operators with a primary focus on equipment valuation and appraisal services. Additional areas of expertise include railcar and locomotive inspections, equipment repair and overhaul cost analysis, and portfolio valuations. RailSolutions draws on over 40 years of railroad industry experience in developing multiple quantitative valuation models supported by both a sound base of market data and advanced analytical techniques. James D. Husband, President 1307 Jamestown Road, Suite 101 Williamsburg, VA 23185 757-903-4606 • Fax: 757-903-4705

www.railsolutionsinc.com

Trinity Industries Leasing Company (TILC), with a fleet of approximately 73,500 railcars, offers a variety of railcar leasing options, management and administrative services and railcar maintenance. TILC also provides access to the manufacturing businesses and other services provided by Trinity Industries, Inc. Sales and marketing activities for Trinity’s rail leasing and manufacturing operations are coordinated under the trade name TrinityRail®, providing a single point of contact for customers seeking rail products, financing and services. An overview of Trinity’s complete portfolio of rail products and services is available at www.trinityrail.com 2525 Stemmons Freeway, Dallas, TX 75207 800.631.4420; Fax: 214.589.8623

www.gotilc.com June 2014 RAILWAY AGE 25

PASSENGER RAIL GUIDE By DOUGLAS JOHN BOWEN, Managing Editor

• AMTRAK •

Along with Amtrak, in January the California’s High Speed Rail Authority (CHSRA) issued a Request for Proposals (RFP) for an initial order of 15 trainsets with a minimum of 450 seats that can meet its planned trip-time requirements for service from the San Francisco Bay Area to Los Angeles on what is planned as mostly new infrastructure. Last month CHSRA certified the Final Environmental Impact Report/Environmental Impact Statement (EIR/EIS) for the initial 114-mile Fresno-Bakersfield stretch of California’s proposed high speed rail system, also approving the right-of-way alignment. The report details the anticipated effects that HSR would have on homes, businesses, farmland, and wildlife habitat. FRA is expected to issue a Record of Decision this month. Gov. Jerry Brown remains steadfast in his support for the plan, despite continued opposition generated by numerous court challenges. The HSR system eventually seeks to link San Diego and Los Angeles, in the south, with twin termini in San Francisco and Sacramento, the state capital, at top speeds of 250 mph.

Amtrak’s RFP (Request for Proposals) for 28 new Northeast Corridor and 15 California high speed trainsets requires bidding manufacturers to provide information about their plans to create U.S. jobs, locate manufacturing facilities in the U.S., recruit disadvantaged workers, and invest in workforce development. Active construction has begun on Amtrak’s Northeast Corridor (NEC) “New Jersey Raceway,” with plans to upgrade 24 miles of the NEC between Morrisville, Pa. and New Brunswick, N.J., allowing higher speeds and more capacity. Amtrak received its first of 70 Siemens ACS-64 “Amtrak Cities Sprinter” electric locomotives in February. Delivery will continue through 2015. Also due to begin arriving on the property this summer: the first significant numbers of 130 singlelevel cars from CAF USA, the first of which left the company’s Elmira, N.Y. plant last month. Their delivery also will continue through 2015. Amtrak has awarded engineering company Michael Baker Jr., Inc. a $4.2 million contract for construction

26 RAILWAY AGE June 2014

management and inspection services involving several projects on its Empire Corridor in New York State, including double-tracking the route between Albany and Schenectady. AmtrakConnect, the company’s WiFI service, now is available to customers traveling on seven routes linked to Amtrak’s Chicago hub. Amtrak says it is on target to meet the Dec. 31, 2015 federal deadline for PTC. • VIA RAIL CANADA •

VIA Rail long-distance services are struggling to survive. Last month VIA agreed to provide CN with C$10.2 million for rehabilitation work to ensure continued thrice-weekly operation of The Ocean long-distance service. Canadian rail advocates cite the development as indicative of VIA Rail’s nationwide woes in preserving its current long-distance services. • BOSTON •

Massachusetts Bay Commuter Railroad (MBCR), operating Boston’s regional rail service since July 2003, went to court in an attempt to block Massachusetts Bay Transportation

Bruce Kelly

• CALIFORNIA HSR •

Authority (MBTA) from awarding a new eight-year, $2.6 billion contract to a competitor. Keolis North America, which MBTA bestowed last January. MBTA last October began receiving the first of 40 new HSP-46 locomotives from Wabtec subsidiary MotivePower, Inc. for $114 million. At the time, they were slated to replace the 20 oldest units in the fleet. On top of seven units added in 2012, in June MBTA signed a contract with MotivePower for 13 additional units. Mechanical, engineering and software problems affecting MBTA’s 75 new Hyundai Rotem bilevel passenger cars prompted MBTA to ship much of the gear to a facility in Rhode Island for upgrades and repair. MBTA in 2012 criticized the supplier’s performance but declined to cancel the car order. Initial construction is under way for MBTA’s Green Line “T” light rail transit extension north of Lechmere Loop to Somerville and Medford, Mass. Related to the growth, Massachusetts DOT last month awarded CAF a contract to provide 24 light rail vehicles. MBTA has awarded Alstom two rail fleet modernization contracts worth $220 million; the first includes the full modernization of 86 articulated LRT vehicles operating on the Green Line. In the second project, Alstom is refitting 74 bi-level MBTA regional rail cars. MBTA’s FY2012-2016 $3.8 billion Capital Investment Program aims to maintain and expand the current 486-mile rail network of 13 regional rail routes, three heavy rail lines, four-route light rail system, and the MattapanAshmont High-Speed (trolley) Line. MBTA last month approved a contract with CAF USA to supply 24 “Type 9” LRVs for $118.1 million. • PROVIDENCE, R.I. •

Rhode Island’s state capital will once again apply for a Transportation Investment Generating Economic Recovery (TIGER) grant to provide a federal match of an estimated $114 million project linking Upper South Providence and College Hill. • CONNECTICUT •

The Nutmeg State’s 51-mile Shore Line East (SLE) service currently offers five

New London-New Haven roundtrip trains, with eight more originating or terminating in Old Saybrook, Conn.; most service connects with MetroNorth’s New Haven Line services in New Haven, but two SLE trains reach west to Bridgeport and Stamford on weekdays. A $40 million ARRA grant awarded in 2011 will add track capacity on Amtrak’s New Haven-HartfordSpringfield branch for regional rail service. SLE equipment will be used for this route, while M-8 EMUs will be used to seam together SLE and Metro-North service along the Connecticut coast. • NEW YORK •

MTA New York City Transit continues Phase I of the Second Avenue subway between 96th Street and 63rd Street in Manhattan, with MTA still insisting completion will be for 2016. Revenue service for the $2.1 billion, one-mile No. 7 Line West Side Extension (also in Manhattan) now may begin as 2014 ends; it had been originally slated to commence in December 2013. The $1.4 billion Fulton Street Transit Center will open this summer; underground connections began to open in segments during 2011. The recently upgraded South Ferry Station in lower Manhattan, ravaged by Hurricane Sandy now aims for reopening in 2016. Work on NYCT subway tunnels, also damaged by Sandy, was reported to be ahead of schedule. Long Island Rail Road work continues on the $8 billion East Side Access project to bring some LIRR trains to Grand Central Terminal, with finishing work now under way. But the project’s opening continues to slip from an original target of 2014. LIRR is slowly advancing DMU options for rail service on its easternmost branches. Metro-North, following a fatal accident in December 2013, joined sister railroad LIRR in accelerating PTC installation. The railroad also gained some political momentum as it seeks to establish service to Penn Station New York, using Amtrak’s Hell Gate Bridge Line (part of the NEC) to do so. PATH continues a $390 million for communications-based train control (CBTC), and has discontinued weekend World Trade Center service to expedite installation (and repair residual damage

from Superstorm Sandy). A PATH extension toward – but not all the way to – Newark Liberty International Airport has been floated. • NEW JERSEY •

Expansion efforts, largely sidelined by Superstorm Sandy, have slowly begun reviving, led by plans to expand HudsonBergen Light Rail Transit north into Bergen County, and also add a short spur in western Jersey City. The 7-mile extension of NJT’s Morris & Essex Lines to Andover, part of a plan to reactivate the famed Lackawanna Cut-Off, moved ahead glacially. In the state’s Philadelphia suburbs, a new transfer station opened in Pennsauken, straddling and uniting the RiverLINE (diesel light railway) and NJ Transit’s Atlantic City Line. Delaware River Port Authority officials continue to push for diesel multiple-unit (DMU) service south of Camden to Woodbury, N.J., though NIMBY resistance continues to slow momentum. • PHILADELPHIA •

SEPTA: Capital funding set, strike looms. Newly equipped with 120 Silverliner V electric multiple-unit (EMU) cars from Hyundai Rotem, SEPTA also got an annual $340 million per year capital funds boost in 2014 for its 13-route, five-county Regional Rail system, light rail lines, and bus operations. Ansaldo STS USA is installing Positive Train Control on the regional rail system, with hopes of meeting the federally mandated 2015 deadline. PATCO: Port Authority Transit Corp. continues the $100 million modernization of its 14.5-mile line from Philadelphia to Lindenwold, N.J., including rebuilding 121 Budd and Canadian Vickers cars in lieu of any new car orders. The first of those cars were unveiled in late December. PATCO moved to expand parking at two inner zone stations. In April PATCO rolled out a new website designed specifically for use with smartphones and other handheld digital devices. • PITTSBURGH •

A “Spine Line” extension to the city’s Oakland neighborhood, a major medical and educational center, remains in limbo. June 2014 RAILWAY AGE 27

PASSENGER RAIL GUIDE

Also still in discussion is a proposed $380 million, 22.5-mile regional rail service from Alle-Kiski Valley in Westmoreland County, Pa., northeast of Pittsburgh, to downtown, with plans to acquire right-of-way from owner Allegheny Valley Railroad. • BALTIMORE •

The 14.1-mile, east-west light rail transit line (Red Line) would operate between Woodlawn and the Johns Hopkins Bayview Medical Center; a construction startup in 2015 is planned. Last September Alston Transport Life Services, Alstom’s maintenance business in North America was awarded a $150 million contract by the Maryland Transit Administration (MTA) to overhaul and modernize Baltimore’s fleet of 53 light rail vehicles. • MONTGOMERY/PRINCE GEORGE’S COUNTIES, MD.•

In March the Federal Transit Administration issued a Record of Decision essentially approving the $2.37 billion, 16-mile Purple Line light rail transit project, linking two Maryland counties with each other and with Washington, D.C., MetroRail service, MARC, and Amtrak. The Purple Line will run from Bethesda, Md., in Montgomery County, with New Carrollton, Md. In Prince George’s County. Chevy Chase, Md., continues to resist the project’s implementation. • WASHINGTON •

WMATA: Phase I of Metrorail’s $5 billion expansion of the Orange Line to Dulles International Airport still is projected to open this year, with the remaining six-station portion set to debut in 2016. WMATA’s $886 million order for 428 7000-Series cars, awarded to Kawasaki Rail Car USA in 2010, will be used to replace Metro’s older 1000Series cars in use since MetroRail began service in 1976. Metro’s finance committee in May approved $1.14 billion for capital improvements, on top of WMATA’s $1.7 billion operating budget for the FY 2014-15 period starting July 1, 28 RAILWAY AGE June 2014

2014. WMATA plans to buy 64 additional Metro cars in FY2014-15. DDOT: Washington’s District Department of Transportation says the 2.4-mile H Street/Benning Road streetcar, originally expected to commence service in 2012, is scheduled to open sometime this year, employing a mix of three Inekon Trio and three United Streetcar vehicles, all of which expected on the property by this month. VRE: Sumitomo Corp. and partner Nippon Sharyo will begin delivery this year of eight double-deck gallery cars to replace VRE’s legacy fleet. The $21 million includes an option for 42 more cars. The two-route system averages 19,000 per weekday. The VRE System Plan estimates the system’s capacity of about 25,000 daily riders may soon be exceeded. Improvements desired include completing the triple tracking of the CSX main line between Alexandria and Spotsylvania. Arlington County, Va.: The county remains dedicated to advance a 5-mile streetcar project linking Baileys Crossroads and Skyline area in Fairfax and Pentagon City in Arlington, linking with WMATA MetroRail, despite critics repeated calling for Bus Rapid Transit (BRT) alternatives. • NORFOLK/VIRGINIA BEACH •

Hampton Roads Transit’s 7.4-mile, $338 million LRT starter line, The Tide, opened in August 2011, with nine Siemens S70s cars providing service. Last April Virginia Beach reached an accord with the state to pursue LRT (essentially an extension of The Tide) in lieu of a proposed maglev project Virginia Beach had declined to pursue LRT for at least 15 years, but local business leaders have pushed for LRT’s arrival. Amtrak passenger service to Norfolk, using Norfolk Southern right-of-way running south of the James River, returned in December 2012, generally to good reviews. • CHARLOTTE •

Charlotte’s City Council in April authorized $249.8 million for construction for Charolotte Area Transit System’s (CATS)

LYNX Blue Line Extension (BLE) and Blue Line Capacity project. The 9.3-mile extension will run from Uptown Charlotte to the University of North Carolina-Charlotte campus, with revenue service slated to commence in early 2017. Charlotte continues to build its Gold Line, 1.5-mile streetcar line in the central business district, including the use of Gomaco Trolley double-truck Birney replicas currently used for tourist rides. •WINSTON-SALEM•

Winston-Salem’s City Council in March approved a streetcar plan estimated to cost $179 million, running though Wake Forest Innovation Quarter and connecting with Winston-Salem State University east of U.S. 52. •CHATTANOOGA•

In late April the Chattanooga City Council voted to seek federal funding for either a streetcar or light rail transit starter line, linking the downtown Chattanooga Choo Choo site and Chattanooga Metropolitan Airport. • ATLANTA •

The 2.7-mile, $94.4 million Atlanta streetcar line, running east-west through downtown, is set to open this year, sporting Siemens S70 units. A second north-to-south route is planned. The city in May announced it will share operating responsibilities with MARTA. A proposed 22-mile BeltLine would provide streetcar operations along parts of the BeltLine trail, with numerous connections to MARTA stops. •ORLANDO•

SunRail service began May 1, 2014, as the $165 million Central Florida Commuter Rail project opened a 32-mile route which eventually will stretch 61.5 miles through the metropolitan area. Bombardier Transportation is providing operating and maintenance service for the line, including Bombardier BiLevel equipment. •TAMPA BAY•

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PASSENGER RAIL GUIDE

to pay for a Tampa Bay regional light rail transit (LRT) system, and bus improvements. If “Greenlight Pinellas” is approved, a one-cent sales tax increase would aid construction of a $1.5 billion, 24-mile LRT line linking Clearwater, Fla., and St. Petersburg. Voters across the bay in Tampa in 2010 rejected plans to establish a comparable measure to establish LRT. Within Tampa, the 2.7-mile TECO Line Streetcar, operated by Hillsborough Area Rapid Transit (HART), remains highly vulnerable to annual operating woes. •FORT LAUDERDALE•

City commissioners last July approved a special tax assessment zone downtown to fund a streetcar line, The Wave, affirming support from the business community and Broward County. Federal and local funding for the $142.6 million, 2.7-mile starter line would be aided by $20.6 million generated from local property owners over a 25-year period. Phase One of The Wave, costing $83 million, would run 1.4 miles and begin operation in 2016. Another 1.3 miles of route would be added later. A hybrid power streetcar, using overhead wires and battery power, is envisioned. • MIAMI •

FLORIDA EAST COAST: Florida East Coast Railway has begun right-of-way work, including additional track capacity, for higher-speed rail (HrSR) service linking South Florida and Orlando. All Aboard Florida would stretch about 240 miles, using 200 miles of existing FEC right-of-way from Miami and Cocoa, Fla., and 40 miles of new track to reach Orlando. Intermediate points would include Fort Lauderdale and West Palm Beach. Future expansions would take the service to Tampa, on the west coast, and Jacksonville, near the Georgia border. The project would cost at least $1 billion. Last October Florida East Coast Industries and Orlando International Airport reached agreement on access to and from the airport. FEC also reportedly was in talks with state officials who hoped FEC might assume management and 30 RAILWAY AGE June 2014

operations of South Florida Tri-Rail regional rail operations. TRI-RAIL: Tri-Rail ridership currently averages about 16,000 riders per day. rebounding from levels depressed by the Great Recession. Veolia Transportation operates the 70.9-mile, 18 station line for South Florida Regional Transportation Authority (SFRTD), with service spanning three counties. Weekend service was significantly expanded in 2013. A proposed 16-mile Tri-Rail Coastal Link on Florida East Coast’s right-ofway north to Jupiter, Fla., is gaining support. Involving FEC, Tri-Rail, Amtrak, and numerous governmental agencies, the extension is part of a larger discussion of rerouting at least one of Amtrak’s Silver Service trains along the coast between Miami and Jacksonville. An operational debut in 2020 is sought. MIAMI-DADE TRANSIT: In 2012 Miami-Dade County Commission last November awarded a $325 million contract for 136 transit cars to AnsaldoBreda. Two route extensions of about 24 miles are set to final design and construction. Also in 2012, Metrorail integrated its rapid transit system with Miami International Airport through a 2.4-mile, $523 million spur. • BUFFALO •

Niagara Frontier Transportation Agency began operating its 6.4-mile Metro LRT in 1985, but expansion plans have been deferred or rejected in the three decades since. Service cutbacks enacted in late 2011 drew protests from outlying communities claiming “reverse-commuters” were disproportionately affected. Rehabilitation of 26 Tokyu LRT cars on Niagara Frontier Transportation Authority’s (NFTA) 6.2-mile Metro Rail LRT line remains stalled. • CLEVELAND •

The Greater Cleveland Regional Transit Authority is building a new $25 million Intermodal Transit Center off Chagrin Boulevard and Warrensville Center Road before 2020. After that, GCRTA says, extensions to the four-route, 38-mile heavy rail (Red Line) and light

rail (Blue, Green and Waterfront) lines will be considered. • CINCINNATI •

Pro-rail advocates convinced a hostile City Council to allow streetcar construction to resume after a hiatus spanning most of December, overriding the wishes of newly elected Mayor John Cranley to scuttle the project. Delays nonetheless added almost $1 million to the cost of the 3.6-mile, $133 million project, still scheduled to begin revenue service in September 2016. The route will connect the city’s largest employment centers, Downtown and Uptown, and the Over-the-Rhine neighborhood. CAF USA will supply five streetcars, with an option for up to 25 more. • ILLINOIS •

llinois has identified $60 million for re-establishing Amtrak service linking Chicago and Rockford, Ill., as early as late 2014. Amtrak’s Black Hawk last connected the two cities in 1981. That project is one of several eyed by the state, which for fiscal year 2015 also includes funds to build a new station in South Elgin for the Chicago-RockfordDubuque Corridor in Cook, DuPage, and Kane counties. Also included: $222 million to provide new intercity passenger rail service between Chicago and Moline for the Chicago-Quad Cities-Iowa City Corridor in Cook and DuPage counties; and $132.6 million for the Englewood Flyover, a key part of the CREATE Program that will reduce Amtrak, Metra, and freight rail congestion. Last fall lllinois Gov. Pat Quinn said a task force would evaluate the process to convert Chicagoland transit by streamlining RTA, CTA, Metra, and Pace operations. • CHICAGO •

CTA: Chicago Transportation Authority (CTA)’s FY 2014-2018 $2.9 billion Capital Improvement Program includes $497 million for continued purchase of new rolling stock, “with $265 million reserved to complete the purchase of a total of 714 new Bombardier 5000Series rail cars and remaining funds are

PASSENGER RAIL GUIDE

dedicated to the next (future) railcar order.” At least 300 5000-Series cars are in revenue service on the Pink, Green, and Red Lines. But last month CTA rejected the two bids submitted to manufacture 846 new rail cars, and plans to restart the procurement process seeking more bids and lower the potential cost estimates. Ongoing rehabilitation of stations and right-of-way continues on numerous lines, with Red, Orange, and Yellow line extensions still planned; public hearings this year will explore extending CTA’s Red Line to 130th Street. Rehabilitation and expansion work begins this year on the 95th Street Terminal and on Wilson Station. METRA: Nippon Sharyo, in conjunction with Sumitomo Corp. of America, continues to deliver a fleet of 160 “Highliner” double-deck electric multiple-unit (EMU) cars for the 31-mile Metra Electric Line. Metra seeks to complete the Chicago Region Environmental and Transportation Efficiency (CREATE) Program P1 project, known as the Englewood Flyover, by year’s end, to reduce conflicts with freight rail traffic. Approximately 42% of the 70 projects associated with CREATE are complete or under construction. Glacial progress continues on Metra’s $1.5 billion Suburban Transit Access Route (STAR), a 55-mile outer belt DMU service plying a circumferential route in “suburb-to-suburb” fashion (see map). Also still being weighed is a $500 million, 32-mile SouthEast DMU on Metra’s Rock Island and UP/CSX lines, running from Chicago’s LaSalle Street Station to Crete, Ill. NICTD: An 84-page study conducted by TranSystems, issued last year by NICTD and Michigan City, Ind., recommended one of three reroute options for rail service through Michigan City, the Central (10th/ 11th Street) Corridor, in order to end street running. Federal funds are sought for the project. • DETROIT •

Groundbreaking for the 3.4-mile M-1 (or M1) streetcar traversing Woodward

Avenue is scheduled for this summer, as Detroit’s private sector weighs an equipment supplier. Private interests committing $125 million have driven the effort, with the federal government contributing $25 million to the plan, currently projected to cost $176 million. Last October Parsons Brinckerhoff was awarded a contract to oversee design, review, and construction quality.

Field Station, the multimodal site serving LRT, Northstar trains, and buses, opened on May 17, 2014. • OMAHA •

The Central Omaha Transit Alternatives Analysis study has led city officials and Metro Transit to seek a combination of a Bus Rapid Transit (BRT) and a streetcar urban circulator for central Omaha.

• KENOSHA, WIS. •

• KANSAS CITY, MO. •

Kenosha Transit’s 1.7-mile streetcar route is well known for its use of rehabilitated President’s Conference Committee (PCC) cars, in operation since June 2000. The line links the city’s the Metra rail station to a marina and two parks along Lake Michigan. Efforts to expand the line through downtown Kenosha have run into resistance, primarily over specific route options.

Kansas City Streetcar Authority Inc. awarded a $22 million contract to CAF USA for five Urbos 3 streetcars to provide service over its 2.2-mile downtown streetcar starter line, piggybacking on Cincinnati’s earlier order. Groundbreaking for the line occurred May 22, 2014. HDR Inc. has overseen project development. The line will serve Kansas City Union Station. Neighboring North Kansas City, Mo., is conducting a feasibility study weighing a streetcar extension into its territory, though cost concerns weigh on the proposal. The city has overcome legal objections to plans to expand its special tax district, and thus its ability to expand streetcar operations, subject to an upcoming vote this November.

• MILWAUKEE •

Armed with $3.2 million in federal funds awarded in late April, added to $41.9 million of previous federal funding, the city of Milwaukee continues to press ahead for a streetcar line, despite continued efforts by Milwaukee County and state anti-rail forces determined to kill the $64.6 million project. A court ruling found the city liable for costs related to utility relocation underneath city roadways, including water pipes and electrical conduits. • MINNEAPOLIS/ST. PAUL •

The $957 million, 11-mile Central Corridor light rail transit project, now dubbed the Green Line, opens on June 14, 2014, linking a restored Union Depot in St. Paul (with Amtrak service moving in) with downtown Minneapolis and the existing Hiawatha Line LRT. A third LRT line, the Southwest Corridor running to Eden Prairie, Minn., remains controversial due to issues including rerouted freight rail and a desire for tunneling along portions of the right-ofway. A fourth LRT route, running north from Target Field Station in Minneapolis to Brooklyn Park, Minn., is in the planning stages and is also facing some resistance over specific routing. Target

• ST. LOUIS •

St. Louis’ 46-mile, bistate MetroLink LRT system marked its 20th anniversary in 2013, and remains the only “interstate” light rail transit system in the U.S., and current capital plans include a threeyear rehabilitation of the historic Eads Bridge spanning the Mississippi River to maintain that link. The proposed 2.2-mile Delmar Loop Trolley at press time had survived several legal challenges questioning its local funding mechanism, and secured roughly $25 million in federal funding. The service will use two GOMACO vintage trolleys purchased late last year by the St. Louis Loop Trolley Transportation Development District from Portland, Ore.’s TriMet. A second proposal by the Partnership for Downtown St. Louis seeks a streetcar” connecting the areas of Downtown, Midtown, Central West End, and June 2014 RAILWAY AGE 31

PASSENGER RAIL GUIDE

Skinker-DeBaliviere.” Capital cost estimates range up to $270 million. • NASHVILLE •

Plans by the Nashville Regional Transportation Authority for a five-line rail system remain quiescent. Its sole line, The Music City Star rail service, overseen by Nashville Metropolitan Transit Authority, links the eastern suburbs to Nashville’s Riverfront station. • MEMPHIS •

Memphis Area Transit Authority has approved a first-phase Southeast Corridor line connecting with the city’s airport as a “top priority.” MATA chose LRT as the preferred mode. But the proposal shows little sign of progress. Meanwhile, the Main Street Trolley uses vintage streetcars on three routes, to be incorporated into any future streetcar and/or LRT network. • LITTLE ROCK •

The Central Arkansas Transit Authority’s 3.4-mile River Rail streetcar system spans the Arkansas River to connect downtown Little Rock with North Little Rock over Main Street Bridge. A 2.5-mile extension to Little Rock National Airport remains an elusive next step. Five Gomaco Trolley Co. streetcars operate on the route. • NEW ORLEANS •

The New Orleans Regional Transit Authority (RTA) last April submitted a bid for federal TIGER funding to advance streetcar service into the French Quarter, running 2.48 miles from Canal Street to Press Street and linking with the existing Riverfront Streetcar line. RTA also expects to start construction this fall on Phase II of the Rampart/St. Claude streetcar project, with a revenue service target date of January 2016. Last month RTA approved a study evaluating a streetcar line to the city’s Algiers section (15th Ward), across the Mississippi River from current operations; no specific route has been floated. • BATON ROUGE •

Louisiana’s state capital seeks federal TIGER funds to help advance plans for 32 RAILWAY AGE June 2014

a $100 million, 3.0-mile streetcar line linking downtown Baton Rouge and Louisiana State University (LSU). • OKLAHOMA CITY •

Last September the Oklahoma City Council approved advancing a 4.6-mile, $130 million plan as part of the city’s MAPS 3 project. Bids for low-floor, wireless streetcars will be sought this year. The current planned route resembles the letter “Z.” Current estimates call for the line to begin revenue service in 2017. The line, part of a “MAPS 3” redevelopment plan approved by the city’s voters, would include a stop at the city’s Santa Fe station. • DALLAS METROPLEX •

DART/TRE: Dallas Area Rapid Transit on Aug. 18, 2014 will open its thirdphase Orange Line extension serving Dallas/Fort Worth International Airport. DART’s Orange Line to Irvine debuted in July 2012, with a second extension to Beltline road opening in December 2012. DART seeks to expand its Blue Line from Ledbetter Station to the University of North Texas. A second line through downtown, either LRT or streetcar, is gaining momentum. With a DART assist, Dallas’s Oak Cliff streetcar line construction is under way, with four streetcars from Brookville Equipment Corp. expected to protect service, targeted to begin in 2015. Ridership declined for the fourth straight year on the 34-mile Dallas-Fort Worth Trinity Railway Express (TRE) line, prompting efforts to reverse the trend. DCTA: Denton County Transportation Authority’s “A” Train utilizes Stadler diesel multiple-unit (DMU) cars from its 21-mile, fivestation service, which opened in June 2011, linking Denton and Dallas counties (and connecting with DART Green Line light rail service at Carrollton). TEX RAIL: Planned rail service linking southwest Tarrant County, downtown Fort Worth, and northeast suburbs continues, which includes a link at Dallas/Fort Worth International Airport, serving up to 30% of anticipated riders.

TEX Rail will serve two downtown Fort Worth stations already served by TRE. Among potential lures: discounted family-pass tickets to beef up Saturday business, and consideration of adding Sunday service. • HOUSTON •

Last December MetroRail added 5.3 miles and eight stations to its existing initial Red Line. 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. Two other LRT lines construction of two other LRT lines, the East End Line and the Southeast Line; are scheduled to open this year. Delivery of 19 Siemens S70 “H2” LRVs neared completion. • AUSTIN •

Special event service helped spur ridership on Capital Metro’s MetroRail, 33% in fiscal year 2013. Plans include $27 million over the next few years to improve capacity. Project Connect planners envision a second rail route serving downtown Austin. • SAN ANTONIO •

VIA Metropolitan Transit, Bexar County, and the city of San Antonio agreed in 2011 to build a $190 million downtown streetcar system, part of a $239 public transit package funded by all three entities. Bexar County and VIA will each contribute $92 million to the projects. In 2013 VIA received approval from the Texas Department of Transportation to tap $92 million in TexDOT funding for the proposal. Officials hope to commence construction in 2015, with service to begin in 2017. • EL PASO, TEX. •

Last summer the El Paso City Council approved funds for streetcar design through a $68 million bond package, contingent on the lack of funding originally hoped for from the Texas Department of Transportation. Restored Presidents’ Conference

PASSENGER RAIL GUIDE

Committee (PCC) streetcars are being explored as the preferred rolling stock. • DENVER •

Denver Regional Transportation District (RTD) has begun opening rehabilitated Denver Union Station in stages, with the station itself set to debut on July 12, 2014, completing another facet of its FasTracks capital program, which is adding 122 miles of LRT and regional rail. The 12.1-mile, $710 million West Corridor (“Golden”) LRT line from downtown Denver to Golden was opened in April 2013. The 10.5-mile I-225 LRT extension to Aurora, Colo., now aims for a 2016 opening date. Construction is under way on the 8-mile North Metro Rail Line, a regional operation linking Denver and North Adams County, Colo. The 22-mile East Rail Line will tie downtown Denver to Denver International Airport in 2016. • SALT LAKE CITY •

The Utah Transit Authority (UTA) says it has essentially completed its ambitious $2.4 billion FrontLines 2015 program, “more than two years ahead of schedule and $300 million under budget.” In 2013, UTA wrapped up work on a 6-mile LRT extension to Salt Lake City International Airport; it also completed a 3.5-mile LRT addition to Draper, Utah. (See map.) Also in 2013, UTA, Salt Lake City, and South Salt Lake launched the $55 million, 2.74-mile Sugar House streetcar project designed to link the namesake neighborhood in Salt Lake City with South Lake. The project received $26 million in TIGER funding in 2010. Initial ridership has been light. UTA FrontRunner regional rail service, part of the FrontLines program, began Dec. 10, 2012 over 45 miles linking Salt Lake City and Provo, Utah. • ALBUQUERQUE •

RailRunner Express currently spans 100 miles and serves 13 stations (not all of them with equal frequency) seven days a week. Herzog Transit Services handles all operations and maintenance.

• PHOENIX/TEMPE •

Service on Tucson’s 3.9-mile, $177.5 million streetcar line, linking the University Medical Center with the west side of the Santa Cruz River via downtown, will begin July 25. All eight streetcars ordered from Oregon Iron Works, Inc. subsidiary United Streetcar LLC has arrived on the property as May ended. Some already are crediting the line with generating about $1 billion in public and private investment, even before its opening.

U2 units still protected MTS’s original Blue Line in mid-2014, but station work to adjust platform heights for low-floor operation was ongoing along the line. MTS also rehabilitated and began operating the first of six President’s Conference Committee (PCC) cars, navigating the downtown loop. The 11-mile, Mid-Coast Line from Old Town to the University of California San Diego in La Jolla, now estimated to cost $1.2 billion, is progressing, with the line expected to open in 2016. San Diego, Calif., and neighboring Tijuana, Baja Norte, have revived plans for LRT service spanning the U.S.-Mexico border. The Blue Line, MTS’s original LRT service debuting in 1981, stops just short of the border at SanYsidro. NORTH COUNTY TRANSIT DISTRICT: NCTD’s 22-mile Sprinter service uses 12 Siemens Desiro DMUs from Escondido to the Oceanside Transit Center; it debuted in March 2008. Service was disrupted at times during 2013 for maintenance issues. NCTD Coaster regional rail service links Oceanside and San Diego; ongoing construction during 2013 on the Santa Margarita Bridge was due for completion by June. A study is evaluating a potential new Coaster stop adjacent to Camp Pendleton.

• HONOLULU •

• LOS ANGELES •

The Honolulu Authority for Transportation’s (HART) last month approved five change orders totaling $56.8 million for Honolulu’s $5.16 billion elevated rapid transit project, now under construction. Most result from project delays that preceded HART’s formation, and HART set aside $76 million in known contingency funds for, in part because contractor Kiewit Infrastructure West Co., did not have the necessary approvals to access the work sites. Phase 1 of the 20-mile, 21-station project is scheduled to open in 2017.

Aggressively growing light rail transit, Los Angeles County Metropolitan Transportation Authority (Metro) officials say Expo Line light rail transit is likely to reach its coastal terminus later this year, ahead of schedule. Phase 1 of the Expo line opened in April 2012, using 34 of 50 AnsaldoBreda cars for the line. The 10-mile Crenshaw/LAX Transit Corridor Light Rail Project will provide service to Inglewood, Calif., and to LA’s Crenshaw Boulevard neighborhood, on a northsouth route linking the existing Green Line and the brand new Expo Line. The full 23.6-mile Gold Line Foothills Extension to Montclair is proceeding with a $458 million contract awarded for the first 11.4 miles to Azusa. Also proceeding are the Purple Line “Subway to the Sea” Phase 2 extension, a downtown Blue-to-Gold

Construction began last month on a 3.1-mile, $200 million Valley Metro extension through downtown Mesa, Ariz., scheduled to open in 2015 and adding to Valley Metro’s 19.6-mile, $1.4 billion LRT starter line, covered by 50 Kinkisharyo cars, continues to influence economic development. Another Phoenix suburb, Glendale, Ariz., is weighing a five-mile extension of Valley Metro, though BRT and streetcar options are also being reviewed. The region’s 20-year transportation plan calls for 57 miles of high capacity transit by 2030. Planning continues for a $129 million, 2.6-mile streetcar line to link the cities of Tempe and Mesa in the East Valley region east of Phoenix, as well as with LRT. • TUCSON •

• SAN DIEGO •

MTS: Changes in 2012 on the Blue and Orange lines allowed use of 57 Siemens S70 low-floor light rail transit equipment nearly systemwide. Older Siemens

June 2014 RAILWAY AGE 33

PASSENGER RAIL GUIDE

LRT connection, and plans for an Eastside Gold Line Whittier extension. Two Los Angeles councilmen propose an LRT route link Wilmington and San Pedro, possibly extending southward from the end of the Green Line. Ridership on Southern California Regional Rail Authority’s seven-route, 512-mile Metrolink rail network fluctuated during 2013, though the authority says growth on its three major routes has been solid. Metrolink has received most of its 137 Rotem bilevel cab cars and trailers. The existing 136 Bombardier BiLevels are being retrofitted. Metrolink has declared it has PTC in place on its entire network, well ahead of the federally mandated deadline. Rehabilitation work continues on Los Angeles Union Station, which marked its 75th anniversary. • ANEHEIM, CA•

The Anaheim City Council has advanced a 3.2-mile streetcar plan that would serve, among other points, the original Disneyland. Anaheim already has $24.6 million in transportation funds for the $319 million project, and expects to tap some federal “New Starts” funding, and funding from Measure M2, a half-cent sales tax for transportation projects in Orange County. But the plans are meeting resistance from the Orange County Transportation Authority, even though OCTA has set aside $13 million for engineering and planning purposes. As well, resentment has arisen over the route’s catering to Disneyland. • SANTA ANA, CA•

A proposed $238 million streetcar line would link the Santa Ana’s train station, served by Amtrak and Metrolink trains, with downtown Santa Ana, the county seat, and the Orange County Civic Center, before reaching its western terminus at Garden Grove. The Orange Country Transportation Authority remains somewhat hostile, offering “enhanced bus” options. • SAN BERNADINO, CA •

A 9-mile rail route would link downtown San Bernardino and the University 34 RAILWAY AGE June 2014

of Redlands, to be funded by federal Congestion, Mitigation, and Air Quality (CMAQ) funding and state sources. The San Bernadino Association of Governments (SANBAG) in early 2014 stated “construction is planned to begin in late 2015 with operation in 2018.” • SAN JOSE •

Daily ridership on Santa Clara Valley Transportation Authority’s (VTA) threeline, 42.2-mile LRT system averaged 34,242 in fiscal year 2013, the highest since FY2009. Construction on the 16-mile, $5.9 billion BART Silicon Valley extension from Fremont to San Jose continues, projected to connect with VTA bus and LRT, with a target opening date of 2016. • SAN FRANCISCO BAY •

MUNI: Construction progresses on the San Francisco Municipal Transportation Agency’s $1.3 billion Central Subway project, designed to extend light rail transit underground 1.7 miles north to Stockton and Clay Streets under 4th Street. MUNI also is considering establishing an “E” Line, using existing right-of-way to serve points along the San Francisco waterfront, preferably with additional heritage streetcar equipment. MUNI is preparing to solicit bids for a new fleet of modern light rail vehicles to replace its fleet of Breda LRVs, with interest expected from Kawasaki and Siemens, among others. BART: Construction of an $890 million, 5.4-mile extension from Fremont south to Warm Springs continues, with completion targeted for fall 2015. An additional 10-mile extension beyond Warm Springs into Santa Clara County is also under way. Cubic Transportation Systems in April received a $7.5 million add-on order to expand the Clipper® Card fare payment system BART uses to more than a dozen suburban transit agencies in the San Francisco Bay Area. Construction neared completion on the $484 million, 3.2-mile automatic people mover (APV) project linking Oakland International Airport with BART’s Coliseum/Oakland Airport Station, and while on budget, the project

now targets an autumn 2014 debut. In 2012 BART began considering operation of both express services and split/merge operations. BART’s $1.3 billion Earthquake Safety Program will be completed in 2017. CALTRAIN: The regional rail service linking San Francisco, San Jose, and Gilroy seeks to acquire more rolling stock following two years of ridership growth, with revenue covering 59% of the operating budget. Caltrain continues work on its electrification project, including construction work and rightof-way upgrades, in preparation for electrification of service, with a target date of 2019. SMART: Work is ongoing for Sonoma-Marin Area Rail Transit’s (SMART) $103 million initial operating segment of 38.5 miles between Santa Rosa and San Raphael, scheduled to open in late 2016. Last December $16.7 million was approved to extend passenger rail service to the site of SMART’s Operations & Maintenance Facility (OMF) near Sonoma County Airport. SMART ultimately seeks a 70-mile line linking Cloverdale, in Sonoma County, and Larkspur in Marin County, with ferry connections connecting Larkspur with San Francisco, a goal endorsed by the Metropolitan Transportation Commission (MTC), the metropolitan planning organization. The northern extension to Cloverdale remains unfunded. SMART has ordered 18 diesel multiple-unit (DMU) cars from Sumitomo Corp. of America and partner Nippon Sharyo, to be equipped with Cummins Inc.’s Tier 4 Final-compliant QSK19-R diesel engines. • STOCKTON, CA •

The San Joaquin Regional Rail Commission’s 86-mile, Stockton-San Jose Altamont Commuter Express (ACE) marked its 15th year of operation in March, unveiling a new permanent maintenance facility in Stockton. ACE and CHSRA continue to advance “blended” rail upgrading to allow ACE rail service and state high speed rail trains to comingle, in order to save costs through shared

PASSENGER RAIL GUIDE

(or adjacent) rights-of-way. Roughly $950 million in improvements, including electrification of ACE service, are planned as an incremental step toward high speed rail operations. • SACRAMENTO, CA •

The Regional Transit District’s 13-mile Green Line addition to Natomas and Sacramento International Airport is under construction. RTD’s 4.2-mile, $270 million South Line Phase II expansion (Blue Line) project is now scheduled to open in 2015. Sacramento and neighboring West Sacramento continue, slowly but in tandem, to advance a $70 million, 2.2-mile streetcar line to link with its larger neighboring city and the RTD. Voters approved the streetcar line in 2008. • HONOLULU •

The $184.7 million elevated rapid rail line, under construction, will initially run from East Kapolei to Pearl

Highlands. The entire 20-mile rail line will extend from East Kapolei to Ala Moana Center, and will cost an estimated $5.27 billion. Most of that funding will come from a half-percent excise tax surcharge levies on Oahu residents and visitors. Opposition has weakened as court decisions affirm the project’s advance. • PORTLAND •

TRIMET: TriMet is nearing 2014 completion of a $1.49 billion, 7.3-mile line southeast from downtown to Milwaukie and North Clackamas County, despite challenges from county anti-rail forces. To the north, TriMet, Portland, and Oregon are exploring options to expand the Yellow Line to Vancouver, Wash., in the wake of the death of the proposed multimodal Columbia River Crossing. TriMet’s WES regional rail service remains a rush-hour, weekdays-only operation. Ridership declined slightly

during the summer of 2013, but overall rose nearly 16% during the final six months of 2013 compared with the comparable 2013 period. WES remains the rail operation most vulnerable to attack from area anti-rail partisans. PORTLAND STREETCAR: Boasting a 35% rise in weekday ridership from 2013, Portland Streetcar now averaging 15,986 riders per day. Construction continues on the “Complete the Loop” project, connecting streetcar operations to the TriMet Portland to Milwaukie Light Rail Bridge on both sides of the river, with a target completion date of fall 2015, to coincide with the Milwaukie LRT addition. • SEATTLE-TACOMA •

Sound Transit (ST) continues construction of a 3.1-mile University Link LRT extension from downtown to the University of Washington. The $1.7 billion line will run north from the Central Link’s Westlake terminus

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PASSENGER RAIL GUIDE

through the most densely populated residential and employment area in the Central Puget Sound region. Long-range plans call for the route to reach Redmond. Preliminary engineering is under way for a 1.6-mile LRT extension on an elevated guideway primarily along 28th Avenue S. from Sea-Tac Airport to S. 200th Street, adding two stations. Work also continues on a four-line, $685 million streetcar network, building on the existing 1.3-mile South Lake Union line. One route, the 2.5-mile First Hill Streetcar line, is scheduled to open for service early this fall. ST’s Sounder regional rail service averaged 11,072 weekday riders during the last quarter of 2013. Select weekend service is offered for baseball, football, and soccer events accessible from Seattle’s King Street Station. Sound Transit also partners with Amtrak to allow Sounder riders to use Amtrak Cascades service to points north,

including Bellingham, Wash., and Vancouver, British Columbia. • VANCOUVER •

Translink’s three-route, 42.7-mile SkyTrain system will grow with the addition of the 6.9-mile Evergreen Line, connecting Port Moody and Coquitlam with SkyTrain; the line is now targeted for completion in the summer of 2016. Skytrain’s 114 Mark I cars are being refurbished under a C$37.9 million overhaul program. Bombardier Transportation last December signed a contract to provide train operations for TransLink’s West Coast Express regional rail system in the Lower Mainland region of British Columbia. • EDMONTON •

Edmonton Transit System (ETS) will oversee a public-private partnership (3P) effort to advance the first C$1.8 million stage of Valley Line LRT

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• CALGARY •

Calgary Transit last September placed a C$192 million order for 60 new S200 light rail vehicles from Siemens Mobility, an increase of 10 from previous plans to acquire 50 new LRVs. North America’s second “modern” LRT operation began with, and still operates, Siemens U2 cars in its CTrain LRT fleet. The new cars will begin arriving on the property in mid-2015. The city is considering spending $8 million for the pre-design of the Southeast Transitway project. The city’s senior transit planner has said he would evaluate an urban transit loop that would interface with Calgary’s existing LRT system using streetcars. CTrain’s electricity has been entirely wind generated since 2001. • TORONTO •

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project, running from Mill Woods to Lewis Farm, serving the city’s southeast quadrant. Edmonton, is nearing completion of its 2.8-mile “North” extension, running from Churchill Station to the Northern Alberta Institute of Technology. The line, once set to open this spring, is targeted to commence service late this year.

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TTC: The first new Bombardier FLEXITY streetcars are scheduled to debut in regular service within Toronto city limits on Aug. 31, 2014, with additional cars to arrive until 2019. Bombardier won a C$851 million order for 204 low-floor cars, but the exact number for this order, along with a companion order from Bombardier for LRT vehicles for TTC’s outer branches, remains somewhat in flux, pending funding from city, Ontario provincial, and federal sources, themselves prey to political posturing. At press time, the contentious Scarborough Line was designated as a future subway line. Construction does proceed on the Sheppard LRT as LRT, the first of seven lines envisioned as LRT under Transit City. Work also continues on the C$2.6 billion extension of the YongeUniversity-Spadina subway from

PASSENGER RAIL GUIDE

Downsview to Vaughan. Scheduled for completion in 2015, the 3.8-mile, route will carry more than 80,000 riders daily. Delivery of a 234-car, C$473 million “Toronto Rocket” subway car order from Bombardier also continues. GO TRANSIT: Metrolinx, the regional transit agency, in January chose Bombardier Transportation to supply 65 more double-deck coaches for GO Transit rail services, with options for a further 75 vehicles. Metrolinx this year also will begin receiving six diesel multiple-unit (DMU) cars from Sumitomo Corp. of America, in conjunction with partner Nippon Sharyo, to be used for Union Person Express, connecting Union Station with Lester B. Pearson International Airport. The 18 DMUs get Cummins Tier 4-compliant power, and will cover service when it opens in 2015, in time for the Pan Am Games. Train service linking Toronto and Peterborough, northeast of Toronto, were targeting a July 2014 debut, but now is unlikely to occur before 2016. A C$281 million signal modernization effort by Siemens Canada continues in and around Toronto’s Union Station, with completion scheduled this year.

funding is identified, similar to the package triad put in place for Toronto. • OTTAWA •

Construction continues on roughly 7.8-mile Confederation Light Rail Transit Line. The C$2.1 billion, 13 station line includes 1.5 miles of downtown LRV subway, and will link Blair in the east with Tunney’s Pasture in the west, using Alstom Citadis Spirit cars. Rideau Transit Group oversees the project under a design-build-finance-maintain contract. At Bayview, the Confedereation Line will connect with the 4.5-mile O-Train, launched in 2001 as a diesel light railway transit (DLRT) operation. Ottawa is pondering an O-Train extension to Ottawa International Airport. • MONTREAL •

STM: Exclusive of rolling stock, C$1 billion will be invested in the Société de Transport de Montréal (STM) Métro during the next decade. Last November

a consortium composed of Bombardier Transportation and Alstom Transport, together with the STM, unveiled the first nine-car rubber-tire train set; STM has ordered 468 of the new-generation cars, with deliveries expected to continue through 2018. AMT: Last February Agence Métropolitaine de Transport (AMT) completed the purchase from CN of the 21-mile Deux-Montagnes Subdivision for C$97 million. AMT also had hoped to increase frequency on its VaudreuilHudson regional rail line this year, but has postponed the move. AMT’s five-line regional system will grow once work on the C$400 million, 36-mile Train de l’Est line is completed, which will link Central Station with 11 new stations in northeast Montréal. AMT seeks to use Bombardier dual-power (diesel/a.c. catenary) locomotives and Multilevel cars. The C$386 million, 160-car Multilevel order is aimed at boosting system capacity 70% by 2015. RA

• WATERLOO REGION, ONTARIO •

The Waterloo-Kitchener-Cambridge metropolitan area, southwest of Toronto, is advancing a C$818 million rail plan for light rail transit in Waterloo and Kitchener, with Bus Rapid Transit (BRT) running into Cambridge. LRT would be extended to Cambridge in the future. The region has ordered 14 LRT cars from Bombardier Transportation as an add-on to the large order placed by Toronto. • MISSISSAUGA, ONTARIO •

Greater Toronto and Hamilton Area transport agency Metrolinx in 2012 approved plans for a 14.2-mile, C$1.6 billion light rail line in Mississauga and Brampton, west of Toronto. Preliminary design and environmental assessment work is completed for the HurontarioMain Light Rail Transit Project. Construction could begin within five years if local, provincial, and/or federal June 2014 RAILWAY AGE 37

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LB Foster’s new Grease Guide and TOR Foam Bar are examples of more efficient application.

Interflon’s Fin Lube is a combination rail cleaner and coating that can be applied in most weather conditions.

WHAT’S THE RUB?

An optimal friction management program can go a long way toward reducing the stress state of the railroad.

olling contact fatigue, spalling, excess noise, and a host of other less-than-ideal effects can afflict rail, but all may be dealt with by developing a friction management program. Today’s service providers are looking at total cost of ownership concerning their equipment and services, increasing unit uptime, and developing a friction modifier that spreads easier and can be refilled quickly to help customers reach new levels of efficiencies. L.B. FOSTER CO. says it has taken a unique approach in working with its customers to evaluate Friction Management (FM) solutions using a Total Cost of Ownership (TCO) model and continues to partner with each customer after installation is complete using its Field Services team. The company begins the TCO process by understanding the goals each potential customer is trying to achieve and its specific operating conditions and then tailors product and equipment solutions to optimize results. Factors such as gradient, traffic levels, and rail profile management are among operating conditions taken into account by L.B. Foster’s product solution experts. “The key to the connection between customer goals and product solutions is our deep understanding of wheel/rail interaction dynamics and economic modeling,” says Brian Vidler, senior manager product solutions. “We recently developed KELTRACK® ER, which is a true TOR friction modifier that carries twice as far as our standard KELTRACK product. We also have a new TOR oil product that carries up to eight miles on level grade. This is twice the distance of materials currently available. These advances in TOR 40 RAILWAY AGE June 2014

By MISCHA WANEK-LIBMAN, Engineering Editor

consumables have several important economic benefits for customers. For example, there is a reduction in overall spending for consumables. There are also ancillary benefits from a reduction in the number of application systems required—saving the customer capital—as well as savings from shipping and reduced refilling.” From the application equipment standpoint, L.B. Foster says the key factor that leads to lower TCO is uptime and points out two complimentary routes to achieve longer uptime: Reliable, efficient equipment and establishing a service and maintenance plan. Says Vidler, “We continue to develop new equipment designs that build on our reputation for dependability. We have also improved access for ease of maintenance to bring equipment back on line faster. In addition, we have invested heavily to develop new, more-efficient applicator bars. This results in less product waste and a corresponding lower TCO. Our new Grease Guide and TOR Foam Bar are two examples.” As far as establishing a service and maintenance plan, L.B. Foster says the company leverages its Field Service group in designing and providing maintenance and filling services. Using the company’s Remote Performance Monitoring (RPM) technology, equipment operating conditions are evaluated in order to schedule predictive, rather than reactive, maintenance. Coupled with Field Services, the company has been able to demonstrate more than 90% unit uptime. General Manager Jim Tanner reports, “We continue to add headcount and increase our investment in fixed assets to expand our Field Service capabilities to bring additional

MPL’s TopStick applicators are truck-mounted on both sides of the lead car, applying a friction modifier to the tread of the lead wheels.

value to our customers. Among the many services that we provide are initial surveys to decide where to locate our equipment and to determine appropriate FM application rates. And we continue to work with our customers through the entire order process, as well as equipment installation. Our customers are also engaging us to provide ongoing service and equipment maintenance in addition to supplying our consumables via bulk filling to maximize FM benefits. Further, we have partnered with other L.B. Foster teams in our Salient Systems and Car Repair businesses to bring an expanding package of service offerings.” LORAM MAINTENANCE OF WAY, INC. General ManagerFriction Management Jon Behrens believes that friction management “is a key cost effective solution that provides increased rail life and reduced fuel consumption. Product development remains a primary focus, and we continue to explore customized solutions while growing our footprint in the friction management marketplace. Development of application and delivery systems as well as modifier advancements will continue to occur at a rapid pace to ensure the reliability and effectiveness of our friction management solutions and the complete customers satisfaction.” Loram has installed more than 1,000 TOR delivery systems on Class I’s in the past two years and expects its installed equipment base to increase significantly in 2014. “Proper friction management practices allow railroads to improve the stress state of their infrastructure by controlling track forces and friction,” says Behrens. “Loram’s patented systems utilize customizable controllers and dual positive displacement pumps to ensure that the precise amount of friction modifier is applied to each rail. Our system is flexible enough so customers can adapt one system to changing friction modification needs based on specific site demands.” Loram introduced a remote monitoring and analytics

service program in 2013. The service includes hardware and software that is integrated with the wayside controller. According to Loram, this technology has the ability to report system operating diagnostics such as pump revolutions, modifier level, battery voltage, and many other items. The data is analyzed by Loram, which then communicates when and where maintenance is needed to its customers. In order to increase friction modifier unit up-time and realize the predicted return on investment, Loram says the remote monitoring system also allows remote functionality such as updating software, turning the system on and off, and adjusting settings and modifier disbursement. MPL TECHNOLOGY, INC., says the wheel/rail interface is an area that can further benefit from additional friction management. The company has worked with its customers to expand the benefits of its solid polymer lubricants from the wheel flange to the tread and TOR. “MPL’s current TopStick flange lubrication line provides several benefits in friction management, including reduction in wheel and rail wear, noise, and fuel expense,” says Product Manager Ryan Mitrovich. “By applying the MPL TopStick system from an on-board dispenser, the entire right-of-way will benefit, not just curves from wayside TOR systems.” TopStick applicators are truck-mounted on both sides of the lead car, applying a friction modifier to the tread of the lead wheels. As the sticks are consumed, the friction modifier is distributed back along the top of the rail to the rest of the train. MPL says new applicators can be installed in less than 30 minutes, refilled in less than five minutes, and are capable of applying enough friction modifier material to cover 1,000 to 1,500 miles. The applicators are powered with pneumatic cyclers using an auxiliary air line from the locomotive. “Our solid polymer friction modifier helps to overcome difficulties encountered with previous onboard spray systems June 2014 RAILWAY AGE 41

FRICTION MANAGEMENT

including clogging, build-up, or freezing, and with a fully consumable stick there is no mess involved,” says Mitrovich. MPL says the TopStick system has been successfully tested at TTCI. “Testing was conducted using a combination of mechanical and electrical measurements on two locomotives with 30 loaded hopper cars while operating on the Wheel Rail Mechanism Loop. Coefficient of friction on the top of rail was monitored throughout the testing and consistently reached the AAR standard for TOR lubrication. Testing to-date has been conducted on coal cars, and prototype systems for intermodal well cars have been developed for testing and evaluation purposes. The system can be modified to accommodate most any type of car,” says Mitrovich. INTERFLON USA produces Fin Lube, described as “a longlasting, ultra-low friction technology that includes re-engineered Teflon® material for application on slide plates, track joints, and rail curves. Fin Lube is a combination rail cleaner and coating that can be applied in most weather conditions and is dry to the touch.” Fin Lube includes micronized Teflon, called MicPol, which can penetrate the pores in steel and adhere to the metal, creating a protective coating. “Current concerns of our rail clients are much different from previous years due to worldwide environmental legislation impacts, increased rail demand and traffic, train performance/punctuality, less time

to maintain, and less money and manpower being available due to budget constraints,” says Managing Director Otto Oosterwijk. “Railways are now starting to look at smarter life cycle cost decisions that are having a true impact on performance and punctuality.” Interflon says its products have been tested and are in use on British railways, resulting in safety and operating improvements. For example, before Fin Lube is applied to a switch plate, the plate undergoes a deep clean that can reveal defects. Fin Lube is transparent and clean, allowing maintenance workers to visually check switch condition. It does not have an adverse effect on rail pads and will not change viscosity with temperature fluctuations. While reduced noise levels and track wear are benefits, Interflon says its products can be applied to bi-directional switches initially designed for single-direction traffic to protect entry and exit points from wheel flange fatigue. The company also works with Simalube applicators, which are cartridges with a time setting that can be installed on grease nipples to supply grease for a period of up to one year. Oosterwijk recognizes that adopting new technology can be met with concern over higher initial cost, but he points to savings realized through reduced frequencies of application and reduced quantities of product needed as two reasons railroads should consider when considering new technology. RA

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42 RAILWAY AGE June 2014

Total Friction Management™ can increase rail life up to 50% and save enough fuel to more than cover the operating costs. Total Friction Management can deliver results! The systematic implementation of friction control, combined with the technology required to monitor and effectively manage friction to minimize costs and maximize benefits is a reality. We have the knowledge, expertise and resources to deliver the tangible financial results from increased rail life, enhanced track structure integrity and significant fuel savings.

Let us tell you why railroads have entrusted us with the implementation and management of their friction control program.

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CANADA GOES THE DISTANCE(S)

AMT, GO Transit, West Coast Express, and VIA Rail Canada anchor the nation’s passenger rail network. Each faces fiscal challenges.

hree regional rail systems, along with VIA Rail intercity service, form Canada’s primary rail passenger network. Each faces its own physical and fiscal challenges, relying on a fluctuating mix of city, provincial, and federal funding support.

Ian MacDonald

AMT MANAGES MONTREAL

Montreal, Quebec, Canada’s second-largest city, enjoys the country’s only electrified regional service, along with an extensive diesel-powered train service and express buses provided by Agence Metropolitaine de Transport (AMT). AMT covers the Greater Montreal Region, embracing 63 municipalities and one First Nations reserve, 13 regional county municipalities, and 21 transit authorities. AMT links the downtown core with communities as far west as Hudson, east to Mont-Saint-Hilaire, and Saint-Jerome to the north. Trains run to and from VIA’s Central Station, and Lucien L’Allier terminal on tracks owned by CN, CP, and the Quebec Gatineau Railway. AMT owns trackage between Saint-Therese and Saint-Jerome, and all of the Deux-Montagnes line, including the Mount Royal Tunnel. The latter is electrified, using electric multiple-unit (EMU)

By JOHN D. THOMPSON, Contributing Editor

cars built some 20 years ago, and recently introduced Bombardier ALP-45DP dual-power locomotives and 160 Multi-Level coaches (pictured, above) ordered in conjunction with NJ Transit. AMT serves 51 stations and 73,900 daily riders with a range of Bombardier equipment, including 58 Bombardier MR-90 single-level EMUs; the MultiLevels, built 2008-2011; 22 BiLevel coaches built in 2004; and 24 single-level coaches built in 1989. AMT has decided to standardize on the MultiLevels for future equipment acquisitions. Future plans include improved service to Montreal’s West Island suburbs. Daily departures would be tripled, operating on two new tracks dedicated to AMT trains. Maintenance facilities are planned for Lachine and Point-Sainte-Charles, serving trains routed over CP and CN lines, respectively. A capacity increase is planned for Mount Royal Tunnel. On the Deux-Montagnes line, an underpass beneath CN’s Saint-Laurent freight line for AMT trains is planned, estimated to cost C$60 million. Extending double-track four miles from Bois-Franc station to Roxboro-Pierrefond station would cost C$51 million. On the Candiac Line, an extension to Saint-Jean-sur-Richelieu is being discussed. June 2014 RAILWAY AGE 45

CANADIAN PASSENGER RAIL GO TRANSIT SETS THE PACE

Government of Ontario Transit (GO Transit) is Canada’s oldest and largest regional rail agency, and perhaps the best known outside of Canada. GO Transit was regarded as avoiding the need to widen the Queen Elizabeth Way, a limited-access highway, between Toronto and Hamilton. Originally conceived as a three-year experiment, it proved extremely popular. Expansion moved forward in the 1970s and 1980s, reaching Georgetown in 1974, Richmond Hill in 1978, Milton and Bradford in 1981, and Stouffville in 1982. In recent years the Georgetown service has been extended westward to Kitchener, and the Bradford line northward to Barrie. Lakeshore service goes eastward to Oshawa and westward to Aldershot. seasonal weekend trains operate to Niagara Falls, Ontario. Train service is chiefly weekday peak period, although all-day, seven days per week service prevails on the Lakeshore line. Daily ridership in 2012 averaged 187,000 passengers. The Lakeshore line is by far the busiest, recording almost half of the total ridership. GO Transit today operates 574 Bombardier BiLevel cars, with 115 more on order; eight EMD F59PH locomotives, and 67 MotivePower Industries MP40PH-3Cs, with 10 more ordered for 2016 delivery. Heavy maintenance is performed at the Willowbrook Shops, in the former western suburb of New Toronto, adjacent to the Lakeshore West line. Toronto Union Station is undergoing a major rebuilding, which includes facilities for Union Pearson Express, the new airport rail service linking Pearson International Airport with Union Station, slated to commence in 2015. The former Toronto, Hamilton & Buffalo station in Hamilton was extensively rebuilt in the mid-1990s to serve the four weekday trains to that city, as well as GO, local, and other intercity buses. A new station is being built in Hamilton’s north downtown, on the CN Lakeshore line, to serve four additional GO trains, commencing in 2015. WEST COAST EXPRESS: SMALL BUT RELEVANT

Located on the Pacific coast, West Coast Express (WCE) is Canada’s newest regional train service, having commenced operations November 1, 1995. It is a single-line operation, extending eastward about 43 miles from the former CP downtown terminal to Mission, over CP’s transcontinental main line. Trains operate weekdays, excluding holidays, with five daily trains running into Vancouver during the morning peak periods, returning in the evening. A one-way trip requires 75 minutes. There are eight stations. WCE is operated by Translink, the transportation authority of the Metro Vancouver Region. Daily ridership is approximately 11,000 passengers. Each WCE train comprises a General Motors F59PH1 locomotive and five to 10 Bombardier BiLevel coaches, operating in push-pull mode. A single MotivePower Industries MP36PH-3C locomotive is available for backup. The fleet numbers 44 coaches. WCE makes connections with the better-known Skytrain, 46

RAILWAY AGE

June 2014

Vancouver’s mostly-elevated rapid transit system. The locomotives and coaches were originally maintained by VIA Rail. Bombardier Transportation began a five-year contract to service and operate the trains, commencing May 5, 2014. VIA VIES FOR RELEVANCE

Tying the three regional passenger rail systems together is VIA Rail Canada, offering a basic (some would say skeletal) coast-to-coast rail passenger system, extending from Halifax on the Atlantic coast to Vancouver on the Pacific, serving this vast but sparsely populated nation of roughly 35 million. VIA Rail operates over a 7,800-mile network as a tenant of CN and CP. Established on April 1, 1978 as a Crown Corporation, VIA Rail initially took possession of CN and CP’s passenger cars and locomotives. Passenger services operated by other railways, such as the Ontario Northland and Algoma Central Railways, were not assumed. Political support for VIA has run the gamut from enthusiastic to lukewarm to hostile—an easy target for federal budget slashing. But the railroad’s flagship long-distance train, the Canadian, has benefitted from a major overhaul of existing stainless steel equipment, along with conversion to head-end power, to extend equipment lifespan significantly. VIA patronage increased from 3.8 million in 2005 to 4.1 million in 2006. In 2007, VIA received funding of C$691.9 million over a five-year period, including C$519 for capital needs. This money was used, among other projects, for rebuilding 54 F40PH-2 locomotives to meet current emission standards and prolong their lives for 15-20 years; refurbishing LRC coach interiors; reducing track capacity bottlenecks and speed restrictions on the Quebec City-Windsor Corridor by rebuilding significant sections of track; rebuilding a number of stations, including Toronto Union; and buying and rebuilding some second-hand British rolling stock. The government appropriated a further C$407 million in 2009 for capital work. At present, eight ex-CPR Chateauseries sleepers and four Park-class observation sleepers are being rebuilt with deluxe bedrooms. Recently, VIA announced an expenditure of C$10.2 million for rebuilding about 45 miles of CN track in northern New Brunswick used by the Ocean. Unlike Amtrak in the U.S., VIA has lacked formal Canadian rail legislation, as the railway was created by an Order in Council. Such legislation would allow VIA to seek funding on the open market, rather than be at the whim of the government. And, there is nothing comparable to the U.S. 403 (B) legislation that would allow individual Canadian provinces to fund certain VIA services. Many studies have been conducted over the years on high speed rail service, but the political will to implement such operations has been and remains lacking. VIA’s Corridor and Transcontinental services will likely continue in their reduced form for the mid-term, but the time of decision will come when its equipment requires replacement. RA

People

Meetings

HIGH PROFILE Patrick A. Nowakowski, 60, last month was named President of MTA Long Island Rail Road by MTA Chairman Thomas F. Prendergast. Nowakowski previously was Executive Director of the Dulles Corridor Metrorail Project in Washington, D.C. Nowakowski’s first task at the LIRR as the railroad’s 39th president will be to oversee labor negotiations described as “intense.” MTA and union leaders are working to avert a strike on the LIRR, possibly occurring as early as this summer. Prendergast told local media he sought someone with Nowakowski a railroad operating background. Nowakowski served more LIRR than 27 years with SEPTA (Southeastern Pennsylvania Transportation Authority), “and that experience will benefit the LIRR,” Prendergast said. Prendergast added that the lack of an operationally experienced president could lead to major problems like the ones Metro-North encountered in 2013. “It’s really the issue of being able to separate the wheat from the chaff pretty quickly,” said Prendergast, who last year ousted MTA Metro-North President Howard Permut and also appointed his own successor at MTA New York City Transit.

June 30-July 2

KANSAS CITY SOUTHERN—Wayne Godlewski appointed Vice President Information Technology. Suzanne M. Grafton promoted to Vice President Accounting. T. Scot Stottlemyre promoted to Vice President International Tax. Both report to Senior Vice President Mary K. Stadler. METRA—Joseph M. Perez named chief of the Metra Police Department. NORTH COUNTY TRANSIT DISTRICT—Donald Filippi named Chief of Safety. TNW Corp.—appointed Paul Treagen CEO overseeing corporate subsidiaries, including Texas Gonzales & Northern Railway Co., Texas North Western Railway Co., and Texas Rock Crusher Railway Co.

SUPPLIERS FreightCar America named Dana Koenig Vice President Sales, Eastern U.S. Region, based in Jacksonville, Fla. Keolis Commuter Services named David Plumb Chief Mechanical Officer for the company’s Massachusetts Bay Transportation Authority (MBTA) rail contract. Parsons Brinckerhoff named Marc Beningson Communications, Security, and Control Systems Manager;

Shekhar Tarafder a Supervising Engineer; and Osama Abdelfatah a Supervising Scheduler, New York City. SYSTRA North America appointed William Crosbie Senior Vice President, managing the company’s new North American Region with an expansion into the Canadian market. Crosbie retains his title of President and CEO of SYSTRA USA.

100 YEARS AGO in

(JUNE 1914) PENNSY ELECTRIFICATION AT PHILADELPHIA In order to relieve the congestion in the Broad Street station, Philadelphia, Pa., and in the yards and running tracks approaching the station, the Pennsylvania announced more than a year ago, as mentioned in the Railway Age Gazette of March 20, 1913, that it would undertake the electrification of certain lines on which a heavy suburban business is handled. Since that time ... it has been decided to begin work on the Philadelphia-Paoli suburban line, with the probability of following this with a similar development on the Chestnut Hill branch at an early date. The general details of this first step are practically settled and work is already under way.

AAR Damage Prevention & Freight Claim Conference Orlando, Fla. Tel.: 919-651-5027; Email: gary_held@aar.com; Website: www.regonline.com/ DPFC2014.

July 27-August 2 5th Annual Summer Youth Program in Rail and Intermodal Transportation Full Scholarship Program for youth grades 9-11 Michigan Technological University Houghton, Mich. Email: dannelso@mtu.edu; Website: www.rail.mtu.edu/ summer_youth.html

August 3-8 2014 International Global Level Crossing and Trespasser Prevention Symposium (GLXS 2014) University of Illinois at UrbanaChampaign Rail Transportation and Engineering Center Urbana, Ill. Email: cbarkan@illinois.edu; Website: http://ict.illinois. edu/railroad/

September 14-16 ASLRRA Eastern Region Meeting Hershey Lodge, Hershey, Pa. Tel.: 202-628-4500; Email: jbourque@aslrra.org; Website: www.aslrra.org

September 14-16 AARS 118th Annual Meeting Union League Club, Chicago, Ill. Tel.: 331-643-3369; Email: aars@supt.org; Website: www.supt.org.

September 21-23 RSI/CMA 2014 Palais des congrès de Montréal (Montreal Convention Center), Montreal, Quebec. Tel; 202-347-4664; Email: patrick@rsiweb.org June 2014 RAILWAY AGE 47

Products Protran Technology touts collision avoidance system

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1809 Capitol Ave., Omaha, NE 68102 Fax: (402) 346-1783 E-mail: orders@transalert.com

Shipping Rates: UP TO $10.00 10.01 - 25.00 25.01 - 50.00 50.01 - 75.00 75.01 -100.00

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U.S.A. CAN 100.01 - 150.00 14.80 34.20 150.01 - 200.00 17.30 45.90 200.01 - 300.00 21.00 57.20 300.01 -- & up (Appropriate charges applied)

Company invoicing available, shipping will be added. We ship to the contiguous 48 states, Alaska, Hawaii, Guam, Puerto Rico, Virgin Islands and APO, FPO. Call for shipping rates if products exceed $300.00(US). For deliveries outside the 48 contiguous states, please contact us for shipping costs. Fax: 402-346-1783. US funds only. Allow 15 working days for delivery in US.

RAILWAY AGE

June 2014

Protran Technology announces the release of its new affordable Collision Avoidance System, designed to prevent collisions between MOW equipment and Hi-Rail vehicles. The system offers significant potential savings in equipment damage and injuries to operators. Key features include accuracy within inches, an event data recorder, and audible/visual alarms, along with an LCD display that shows vehicles ahead and behind with high precision. The non-GPS system works perfectly in tunnels, on curves, and in rough environments. For more information, contact Protran Technology, Tel.: 973-250-4176; Website: www. protrantechnology.com.

Adjustable LED fixture from Larson Electronics Larson Electronics has released a 150-watt LED explosionproof pole top slip-fitter light. The EPL-PT-150LED-RT provides operators with a powerful and energy-efficient alternative to traditional hazardous location luminaries. The pole top light fixture from provides 12,000 lumens of high quality light while drawing only 150 watts. The copperfree aluminum alloy body is powder coated for added durability and an attractive aesthetic appearance. A special heat dissipating design in conjunction with LED technology helps this fixture to achieve an excellent 60,000-hour rated lifespan with 80% lumen retention. Lightweight with a low profile, it requires less hardware to install. An adjustable swivel bracket allows more than 180° of adjustment and is attached to a slip-fit yoke for easy installation. The slip-fit yoke is built to customer specifications, enabling operators to easily mount the device. Call 800-369-6671; Website: www.larsonelectronics.com.

Ad Index Company

Phone #

Fax

Email address

Page #

American Railcar Industries

636-940-6020

636-940-6100

comments@americanrailcar.com

Andersons Inc The

419-891-6386

419-891-2749

chuck_brown@andersoninc.com

CAF Power & Automation

+34 9433 13 363

Antonia@suscreativos.com

CIT

212-461-5713

212-461-5694

abby.cohn@cit.com

David J Joseph Company The

513-419-6200

513-419-6221

txs@djj.com

Ellwood Crankshaft & Machine

724-347-0250

724-347-0254

ecgsales@elwd.com

First Union Leasing Corp

847-384-5392

847-318-7588

richard.seymour@wachovia.com

FreightCar America

312-928-0850

312-928-0890

ewhalen@freightcar.net

Herzog Railroad Services, Inc.

816-233-9002

816-233-7757

tfrancis@hrsi.com

HKX Inc

800-493-5487

800-353-5736

nnye@hkx.com

Infinity Rail

678-904-6300

678-904-6310

info@infinityrail.com

L B Foster Company

412-928-3506

412-928-3512

glippard@lbfoster.com

LORAM

763-478-6014

763-478-2221

sales@loram.com

LTK Engineering Services

215-641-8826

215-542-7676

tfurmaniak@ltk.com

Macquarie Rail

312-756-3880

312-756-3847

riailinfo@macquarie.com

Progress Rail Services

256-505-6402

256-505-6051

info@progressrail.com

5 9

19,42

R&W Machine Division

708-458-4200

708-458-3299

jwarner@rwmachine.com

Railquip Inc

770-458-4157

770-458-5365

sales@railquip.com

Rail Solutions

703-922-3800

703-9228--8229

railsol@aol.com

Railway Educational Bureau, The 402-346-4300

402-346-1783

bbrundige@sb-reb.com

S & C Distribution Co

708-396-1755

708-396-1754

info@sandcco.com

Siemens

800-SIEMENS

SMBC Rail Services LLC

312-559-4800

888-4RAILCAR

sales@smbcrrail.com

STV Inc

212-777-4400

212-529-5237

info@stvinc.com

TrinityRail

800-631-4420

214-589-8623

info@trinityrail.com

Wi-Tronix LLC

630-679-9927 x307

630-679-9954

fcozzi@wi-tronix.com

48,C3 11

www.usa.siemens.com/transportation 29

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

June 2014 RAILWAY AGE 49

PRODUCTS & SERVICES

EMPLOYMENT

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

MARKETING & SALES MECHANICAL OPERATIONS VERMONT RAIL SYSTEM SEE THE FULL JOB POSTING AT RAILWAYAGE.COM JOB BOARD NJ Transit – Deputy General Manager, Safety & Training Deputy General Manager, Safety & Training NJ TRANSIT Rail Operations Newark, NJ

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

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

NJ TRANSIT is New Jersey’s public transportation corporation. Its mission is to provide safe, reliable, convenient and cost-effective transit service with a skilled team of employees, dedicated to our customers’ needs and committed to excellence. Covering a service area of 5,325 square miles, NJ TRANSIT is the nation’s third largest provider of bus, rail and light rail transit, linking major points in New Jersey, New York and Philadelphia. We are seeking a Deputy General Manager, Safety & Training who will develop and implement the Rail Operations System Safety Program as well as Federal Railroad Administration (FRA) and Public Employee Occupational Safety & Health Administration (PEOSHA) regulations and recommendations. The position is responsible for leading safety investigations and making recommendations on corrective actions to improve safety. The position also directs rail technical and operational training programs for rail employees, contractors, and emergency responders. Requirements include a Bachelor’s Degree in safety or related field, or equivalent, and ten (10) or more years of progressive managerial experience in technical/operational training and system safety. Candidates must have experience with railroad operations, FRA and PEOSHA safety regulations and requirements, as well as safety training concepts and methods. Designation as a Certified Safety Professional is highly desirable. Relocation assistance in accordance with company policy is available.

RECRUITMENT

EDNA A. RICE, EXECUTIVE RECRUITER, INC (713) 667-0406 FAX (713) 667-1651 Web address: www.ednarice.com Email: resume@ednarice.com

EDNA A. RICE, President 6750 West Loop South Suite 735 Bellaire, Texas 77401-4111

PROFESSIONAL DIRECTORY

STRATEGIC PLANNING: • Commuter rail tranSitionS • fra ComplianCe programS • operationS auditing

Kansas City Office (913) 661-2424 OPERATIONS TRAINING & CONSULTING: www.tcsrailservices.com • engineer training & CertifiCation OTHER SERVICES: • eXCellent HiStory witH fra, ntSB • Staffing • meCHaniCal & part 238(Qmp) • interim management

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 50

RAILWAY AGE

June 2014

The State of New Jersey has a Residency Law Equal Opportunity Employer Please mail your resume to: NJ TRANSIT SSLEF 180 Boyden Avenue Maplewood, NJ 07040 Or fax to (973) 863-4569

National Transportation Safety Board (NTSB) Senior Executive Vacancy The NTSB is currently recruiting for a highly skilled senior executive to serve as Deputy Director, Office of Railroad, Pipeline and Hazardous Materials Investigations. This is a Federal government position located in Washington, D.C. The incumbent will serve as full deputy and key advisor to the Director in leading to reduce the number of railroad, pipeline, and hazardous materials accidents. For details, see: https://www.usajobs.gov/JobSearch/Search/ GetResults?keyword=ntsb or call 202-314-6230.

Find your rail industry job opportunities at www.railwayage.com

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. ◆ 3,600 cu. ft. Open Top Hoppers. 45 degree slopes for aggregate, coke, coal, etc. ◆ 4,240 cu. ft. tub bottom rotary gondolas. Interior bracing has been removed. ◆ Box Cars – 286K Gross Rail Load, 60’ 9” inside length, 12’

Railcars for Lease:

Plug doors. For additional information and pricing, please contact John Goodwin PHONE (605) 582-8318 FAX (605) 582-8304 www.carmathinc.com

• 52’-2500 Cu.Ft. Mill gondolas —263 GRL • 5125 Cu.Ft. Pressure Differential Covered Hoppers —263 and 286 GRL • 23,500 Gallon Tank Cars —Coiled and Insulated Contact: Elliot Lewis (479) 802-5207 or el@everestrailcar.com www.everestrailcar.com

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TURNING OPPORTUNITIES INTO NEW BUSINESS

June 2014 RAILWAY AGE 51

Perspective: Short Line & Regional JERRY VEST

Federal role key to three industry issues

hort line and regional railroaders are a pretty resilient bunch. Their success is largely based on doing more with less, responding quickly to changing customer needs, and leveraging small opportunities into long-term wins. The success of these railroaders, and the overall rejuvenation of the Class II and III freight railroad industry since partial deregulation due to the Staggers Act in 1980, is an important chapter in U.S. rail freight history. The owners and operators of short line railroads today continue to demonstrate a high level of resourcefulness and flexibility. However, there is one challenge that can still be perplexing: The future course of the federal government as it relates to the rail freight industry. Much is at stake, and outcomes are not always certain. Here is a brief recap of three significant rail-related issues in Washington D.C.: Rail Safety: As railroaders, safety is always our number one priority. Our industry has made tremendous progress in becoming a very safe means of freight transportation for the communities and customers we serve and for our employees. We reached a level that led Federal Railroad Administrator Joseph C. Szabo to state that “…2012, by virtually all measures, was the safest year in industry history.” During the past year, however, this success has been challenged by the July 2013 tragedy at Lac-Mégantic, Quebec, and subsequent derailments, without casualties, of crude oil unit trains across the country. Overall, freight railroading continues to be an extremely safe mode of transportation, and as an industry we aggressively pursue continuous improvements in rail safety. In the current political environment, we must be aware of the concerns in Washington, D.C. regarding rail safety 52

RAILWAY AGE

June 2014

and ensure that the debate is fact-based and recognizes that everyone wants a safer industry. We must avoid knee-jerk reactions that could lead to unintended and harmful results. Short Line Tax Credit: Commonly called “45G” after its section in the tax code, this credit has facilitated the upgrading of thousands of miles of short line and regional railroad tracks. Augmenting Class II and III railroad investments in their track infrastructure, the tax credit is structured to fund additional improvements, enabling everyone to win.

Truck size and weight is the public policy issue that just never seems to go away. Customers are happier with improved service, and communities throughout our country remain connected to the national rail network. Extending the tax credit is a continuing effort. Typically extended for only a couple of years at a time, it is no sooner extended than the campaign begins for the next round. We are now in a period between the expiration of the latest credit, on Dec. 31, 2013, and its hopeful reinstatement. There are currently 246 members of the House of Representatives supporting extension of the 45G tax credit. Along with the 51 members of the United States Senate supporting this extension, we have more than one-half of both chambers of Congress backing 45G. Our tax credit has tremendous

bi-partisan support on Capitol Hill; now we just need to find the right piece of legislation to get the extension in place and working for us once again. Truck Size and Weight: This is the public policy issue that just never seems to go away. There are three specific efforts in the current federal transportation appropriations bill to grant waivers for operating longer, heavier trucks in Idaho, Mississippi, and Wisconsin. We hope that issue of allowing bigger trucks on our already-overburdoned national roadways receives more thorough consideration than simply an amendment slipped into a massive federal appropriations bill. Meanwhile, at the U.S. Department of Transportation, the MAP-21 mandated two-year truck size and weight study continues. There is some significant concern regarding the approach being taken by USDOT to understand the full impact of bigger trucks on short line freight railroads. We have seen first-hand examples of freight diversion from short line railroads to highways when and where state increases in truck size and weight limits have occurred. Under-representing this potential in the USDOT study could become a major issue for our industry. This will be watched very carefully. All these topics and more will keep the short line and regional railroad industry very busy in Washington, D.C. during the next several years. The American Short Line and Regional Railroad Association, along with partners such as the Association of American Railroads, are hard at work making sure our voices are heard. Jerry Vest is Chairman, Legislative Policy Committee, American Short Line and Regional Railroad Association. He also is Senior Vice President, Government and Industry Affairs, for Genesee & Wyoming Railroad Services, Inc.

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 . . . . .3-25-14 213 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 . . . . . . . . .1-1-14 . . . . . . . .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

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 # Each more

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

232

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 Brake System Safety Standards

9.95 8.55 9.50 7.25 9.50

8.95 7.85 8.55 6.55 8.55

5.50 5.00

4.95 4.50

13.25

11.95

6.25 10.50 11.00 22.95 9.35 6.25 12.75

5.60

8.50 5.60 11.50

11.00

9.90

Each

14.75

9.90

BKMFR

Mech. Dept. Regs. Order 25 or more and pay only $24.50 each

$27.95

Part 215: Freight Car Safety Standards

49 CFR 215. Prescribes the minimum safety standards for freight cars allowed by the FRA. Includes safety standards for freight car components, car bodies, draft system, restricted equipment and stenciling. Softcover, spiral.

BKFSS

Freight Car Safety Standards Order 50 or more and pay only $6.55 each

$7.25

Part 231: Railroad Safety Appliance Standards

49 CFR 231. General requirements for safety appliances including: handbrakes, brake step, running boards, sill steps, ladders, end ladder clearance, roof handholds, side handholds, horizontal end handholds, vertical end handholds, and uncoupling levers. 106 pages. Softcover.

BKSAS

Railroad Safety Appliance

$9.35

13.50 Each

BKPSS

Passenger Safety Standards 22.80 Part 238, 239 - Order 25 or more and pay only $20.50 each

BKSTC

Signal and Trainâ&#x20AC;&#x2C6;Control Systems Includes Part 233, 234, 235, 236 Order 25 or more and pay only $17.55 each

19.50

BKCAD

Drug and Alcohol Regulations in the Workplace Part 40 & 219

36.00

BKINFRA

Track and Rail and Infrastructure Integrity Compliance 33.00 Manual - Volume II, Track Safety Standards Update 1-1-14 Order 25 or more and pay only $30.00 each

Ph: (402)346-4300 â&#x20AC;˘ Fax: (402)346-1783 Email: orders@transalert.com

A combined reprint of the Federal Regulations that apply specifically to the Mechanical Department. Spiral bound. Part Title 210 Railroad Noise Emission Compliance Regulations 215 Freight Car Safety Standards 216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment 217 Railroad Operating Rules 218 Railroad Operating Practices - Blue Flag Rule 221 Rear End Marking Device-passenger, commuter/freight trains 223 Safety Glazing Standards 225 Railroad Accidents/Incidents Eff: 1-1-14 229 Locomotive Safety Standards 231 Safety Appliance Standards 232 Brake System Safety Standards

25 or more

Technical Manual for Signal and Train Control Rules. Includes Part 233, 234, 235, 236 - Spiral Bound Order 25 or more and pay only $39.10 each

1809 Capitol Ave, Omaha, NE 68102

Mechanical Department Regulations

27.50

BKTM

The Railway Educational Bureau

Railroad Workplace Safety Standards Part 214 is scheduled to be updated on July 1, 2014.

46.00

Part 232: Brake System Safety Standards

49 CFR 232. Regulations and general requirements for all train brake systems, inspection and testing, periodic maintenance and training requirements, and end-of-train devices for Class I, II, and III railroads. Plus the introduction of new brake system technology. Softcover. 155 pages. Softcover.

BKBSS

Brake System Safety Standards Order 25 or more and pay only $13.50 each

Order Now!

$14.75

800-228-9670 8 a.m. to 5 p.m. C.S.T., Monday/Friday

www.transalert.com

Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN UP TO $10.00 $4.10 $8.55 25.01 - 50.00 9.80 15.70 10.01 - 25.00 7.20 11.80 50.01 - 75.00 10.90 19.80 *Prices subject to change. Revision dates subject to change in with laws published by the FRA. 6/14

Orders over $75, call for shipping accordance

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