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On the Cover Utah Transit Authority says its main focus now is on increasing frequency of service and better connections. Photo: UTA

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. 216, 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 and/or Digital 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. Single Copies: $36.00 per copy in the U.S., Canada, and Mexico/$128.00 foreign All subscriptions payable in advance. COPYRIGHT© 2015 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 2015 Railway Age 1

From the Editor William C. Vantuono

Editorial and Executive Offices Simmons-Boardman Publishing Corp. 55 Broad Street, 26th Fl. New York, NY 10004 212-620-7200; Fax: 212-633-1863 Website: www.railwayage.com

Conviction vs. ignorance

ollowing Amtrak’s tragic wreck of Northeast Regional train 188 (p. 10), the news media, as expected, sprung into action, filling the airwaves and cyberspace and newspapers with speculation, analysis, sensationalism—and even some accurate, straight reporting, which doesn’t occur too often where railroads are involved. The dumbest thing that aired was an “investigative report” conducted by CBS-2 New York in which the reporter, using a cell phone app, clocked the speeds of NJ Transit commuter trains and, without consulting an employee timetable, said they were going too fast. (See my blog, “Meg Baker and her trusty Speed-O-Meter to the rescue!” on the Railway Age website.) The most intelligent, insightful commentary I’ve come across is from Adam Gopnik, a staff writer at The New Yorker magazine since 1986. “The Plot Against Trains” (http://www.newyorker.com/news/dailycomment/the-plot-against-trains) uses the Amtrak accident as a starting point for an essay about why, as a nation, we are not devoting the resources to build and operate a world-class passenger rail system. Conventional wisdom in our industry tends to focus on ignorance on the part of politicians and passenger train opponents as the main reason why Amtrak is forced to exist on a starvation diet, or why trying to build a high-speed rail system is much like trying to build a nuclear waste dump. But it’s not ignorance, as Gopnik points out: “The reason we don’t have … efficient bullet trains is not that we have inadvertently stumbled upon stumbling blocks; it’s that there are considerable numbers of Americans for whom these things are simply symbols of a feared central government, and who would, when they travel, rather sweat in squalor than surrender the money to build a better [passenger rail system]. The ideological rigor of this idea … is part of the folly of American ‘centrism’ not to recognize that the failure to run [passenger] trains where we need them is made from conviction, not 2

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June 2015

RailwayAge

from ignorance. There is a popular notion at large, part of a sort of phantom ‘bi-partisan’ centrist conviction, that the degradation of American infrastructure, exemplified by the backwardness of our trains … is a failure of the American political system. We all should know that it is bad to have our trains crowded and wildly inefficient … but we lack the political means or will to cure the problem. In fact, this is a triumph of our political system, for what is politics but a way of enforcing ideological values over merely rational ones?” “What we have, uniquely in America,” Gopnik writes, “is a political class, and an entire political party, devoted to the idea that any money spent on public goods is money misplaced, not because the state goods might not be good but because they would distract us from the larger principle that no ultimate good can be found in the state. Ride a fast train to Washington today and you’ll start thinking about national health insurance tomorrow. “The ideology of individual autonomy is, for good or ill, so powerful that it demands cars where trains would save lives, just as it places assault weapons in private hands, despite the toll they take on human lives. Trains have to be resisted, even if it means more pollution and massive inefficiency and falling ever further behind in the amenities of life.” Take a wild guess as to which political party—or more accurately, extremist faction of that party—Gopnik is referring. “Prejudice against [passenger] trains is not a prejudice against an élite but against a commonality,” Gopnik concludes. “The late Tony Judt wrote, ‘Trains are a collective project for individual benefit. … If we lose the railways we shall not just have lost a valuable practical asset. We shall have acknowledged that we have forgotten how to live collectively.’” Sad, but true.

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Industry Indicators TRAFFIC ORIGINATED CARLOADS

SHORT LINE AND REGIONAL TRAFFIC INDEX FIVE WEEKS ENDING MAY 2, 2015

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. ’15 101,121 3,966 48,964 31,074 155,468 74,490 507,371 7,206 18,372 30,093 32,570 18,356 45,532 18,786 91,011 115,849 23,818 38,697 16,463 23,837

APR. ’14 105,031 4,009 47,840 31,775 156,080 75,293 570,677 7,226 18,729 29,359 22,732 19,349 54,788 21,954 90,278 118,063 26,649 41,638 16,502 23,784

% CHANGE -3.7% -1.1% 2.3% -2.2% -0.4% -1.1% -11.1% -0.3% -0.3% 2.5% 43.3% -5.1% -16.9% -14.4% 0.8% -1.9% -10.6% -7.1% -0.2% 0.2%

1,403,044

1,481,756

-5.3%

402,368

410,232

-1.9%

1,805,412

1,891,988

-4.6%

CARLOADS

ORIGINATED APR. ’14 44,322 22,816 27,229 11,166 23,674 6,404 10,059 3,244 15,464 8,094 2,866 2,099 18,627 11,661 45,479 9,384 87,766

BY Commodity 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

ORIGINATED APR. ’13 42,229 26,998 28,284 11,434 23,921 6,082 9,965 5,212 22,115 8,244 2,297 2,082 18,612 12,255 31,878 10,068 81,100

% CHANGE 5.0% -15.5% -3.7% -2.3% -1.0% 5.3% 0.9% -37.8% -30.1% -1.8% 24.8% 0.8% 0.1% -4.8% 42.7% -6.8% 8.2%

TOTAL CARLOADS, APRIL 2015 vs. 2014 APR. 2015 - 350,354 APR. 2014 - 342,776 300,000 310,000 320,000 330,000 340,000 350,000 360,000 370,000 380,000 390,000

CANADIAN RAILROADS

ALL Commodities

COMBINED U.S./CANADA RR INTERMODAL

FIVE WEEKS ENDING MAY 2, 2015

MAJOR U.S. RAILROADS by Commodity TRAILERS CONTAINERS TOTAL UNITS

APR. ’15 146,769 1,236,545 1,383,314

APR. ’14 148,600 1,167,561 1,316,161

% CHANGE -1.2% 5.9% 5.1%

7,014 304,958 311,972

9,003 289,238 298,241

-22.1% 5.4% 4.6%

153,783 1,541,503 1,695,286

157,603 1,456,799 1,614,402

-2.4% 5.8% 5.0%

Railroad employment, Class I linehaul carriers, april 2015 (% change from april 2014)

CANADIAN RAILROADS TRAILERS CONTAINERS TOTAL UNITS

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)

Transportation (train and engine) 73,725 +10.12%

Executives, Officials, and Staff Assistants 9,905 +0.98%

Professional and Administrative 14,240 +1.99%

Total employees: 174,122 % change from APRil 2014: 5.99% Transportation (other than train & engine) 6,718 (-0.10%)

Maintenance of Equipment and Stores 31,406 +5.14%

Maintenanceof-Way and Structures 38,128 +3.12%

Source: Surface Transportation Board

Increases in transportation (train and engine) continue Figures released by the Surface Transportation Board show Class I total railroad employment rose 5.99% in April 2015, measured against April 2014. Transportation (train and engine) once again powered the yearover-year gain, up 10.12%, followed by an increase in Maintenance of Equipment and Stores, which rose 5.14% since April 2014. Only Transportation (other than train & engine) fell from March 2015, down 0.10%.

Railway Age

June 2015

Industry Outlook

FRA C3RS implemented in Boston Keolis Commuter Services, the Federal Railroad Administration, the Massachusetts Bay Transportation Authority and union leaders from the American Train Dispatchers Association, Transportation Communications Union, Brotherhood of Locomotive Engineers and Trainmen and SMART Transportation Division on May 8, 2015 signed a memorandum of understanding to implement the FRA’s voluntary Confidential Close Call Reporting System (C3RS). C3RS allows railroad employees to report safety-related issues or concerns anonymously without fear of facing sanctions. To maintain confidentiality, calls will be reported to a third party, the National Aeronautics and Space Administration, which will remove information about the incidents that could lead to the identification of the employee. NASA will compile the data and then forward it for analysis to a team made up of labor representatives, Keolis management and FRA representatives. That group will then recommend corrective action. NASA also will monitor trends across railroads and share the results with the Boston teams. The C3RS program is the first of its kind in Massachusetts, and Keolis officials say it will enhance their efforts to further strengthen the commuter rail system’s safety culture. Keolis officials said the system will enable them to collect data about close calls that may not be reported, identify safety hazards and take corrective actions before an 6

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June 2015

accident or incident occurs. “We are pleased to be partnering with the FRA, MBTA and the unions representing our employees to deploy this innovative program,” said Keolis Commuter Services General Manager Gerald C. Francis. “Because the system is entirely anonymous, employees will feel empowered to flag even minor safety concerns, enabling as to identify trends and tackle issues before they become major problems.” “C3RS programs promote a positive safety culture by helping railroads gather new safety data and proactively establish new and innovative practices that continuously improve railroad safety,” said FRA Associate Administrator for Railroad Safety Robert Lauby. “FRA’s C3RS Pilot Program Midterm Report found there was a 69% decrease in human factor-caused accidents at rail yards that implemented C3RS. The report also concluded that C3RS improves labor/management relationships and employee engagement. The system was created to complement existing safety programs, serving as an early warning system that focuses on problems instead of people. The system also provides incentives to learn from errors rather than try to conceal them, and seeks to target the root cause of an issue, not the symptoms.” “This is one of many important safety initiatives Keolis will be rolling out this year,” said Keolis Chief Safety and Security Officer Justin Vonashek.

Union Pacific plans to invest $4.2 billion in its network this year, and CN has allocated C$2.7 billion, for infrastructure improvements, and new capacity, equipment and technology. Of CN’s C$2.7 billion, approximately C$1.4 billion will be spent on track infrastructure, including the replacement of rail, ties and other track materials, bridge improvements and various branch line upgrades. Such investments allow CN to improve the network and are a part of a multi-year program aimed at maintaining a high level of safety and efficiency while helping CN’s customers grow, the railroad said. Within its track infrastructure spending, CN is allocating C$100 million to upgrade its feeder network. This investment is part of the C$500 million program announced earlier this year to upgrade branch lines that are experiencing rising volumes of traffic. Safety investments this year will include additional fault detection systems such as wayside inspection system technology, hot wheel detectors, wheel impact load detectors, signaled sidings to detect broken rails, and new geometry testing and joint-bar inspection technology. CN will also spend approximately C$800 million in 2015 on growth and productivity initiatives such as yard improvements, intermodal terminals, transload and distribution centers, and information technology. Union Pacific’s $4.2 billion investment in its network this year follows investments totaling more than $31 billion from 2005-2014. These investments contributed to a 38% decrease in derailments over the past year, the railroad said. UP’s nvestments will include nearly $41 million to improve Colorado’s transportation infrastructure; $8 million in the rail line between Elburn and East Clinton in Illinois; $109 million in Iowa rail infrastructure; and $66 million to improve Missouri’s transportation infrastructure.

Joe Calisi

UP, CN set 2015 capex plans

Market

Parsons lands O’Hare airport people-mover contract The City of Chicago Department of Aviation (CDA) has awarded a $310 million design-build contract to Parsons to replace and expand O’Hare International Airport’s Automated Transit System (ATS). Parsons will manage construction of the project, which involves replacing the existing ATS between terminals, constructing a 2,000-foot extension to service the new consolidated rental car station, expanding the maintenance and storage facility, and replacing the existing 15-vehicle fleet with Bombardier’s INNOVIA APM 256 (similar to the INNOVIA APM 300, which is pictured above and used in Las Vegas, Nev.), an automated people-mover (APM) system with 36 vehicles. Bombardier Transportation’s share of the contract is valued at approximately $180 million.

Rail Connection Inc.: Has formed a joint venture with ITE Management L.P. with the purpose of acquiring, leasing and operating railcars. The joint venture, dubbed Rail Connection L.L.C., will initially own nearly 2,000 railcars and is actively acquiring railcars to grow the business and asset base. RailComm: Has been selected to replace a hardwired control system with its DOC® system at a Union Pacific intermodal facility in Long Beach, Calif. All Aboard Florida: Has selected Archer Western to improve rail infrastructure on the Florida East Coast Railway corridor that will host its new passenger rail service scheduled to open in early 2017. 8

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June 2015

The Port Authority of New York & New Jersey: Has committed $40 million to study construction of a new AirTrain Newark system with enhanced capacity, better service and increased reliability. The Delta Regional Authority: Has made a $100,000 investment for construction of a rail spur in Marmaduke, Ark.

Worldwide Elron (Estonia): Looking to place a €30 milion order for a new fleet of three five-car intercity trains for the 190km route linking the capital Tallinn with the country’s second city Tartu. Delivery is tentatively scheduled for 2018. Metro Trains Melbourne: Awarded Nomad Digital a contract to install

remote condition monitoring (RCM) on four Alstom X’Trapolis EMUs. Luxtram (Luxemburg): Has selected CAF as preferred bidder for a contract to supply 21 low-floor LRVs for the project in a deal worth €83 million. Westbahn (Austria): Will purchase 10 additional Kiss EMUs from Stadler in a €180 million deal. The Greenbrier Cos.: Completed its acquisition of a 19.5% stake in Brazilian freight car manufacturer Amsted-Maxion Hortolândia for $15 million. Ile-de-France Transport Authority and SNCF Mobility: Have placed a €127 million order for 19 additional class Z 50000 Francilien EMUs for suburban services in the Paris area.

Bombardier

North America

Watching Washington Frank n. wilner

Liability shouldn’t threaten survival

iolent clashes often occur at the intersection of liability, ability to pay and the law. They follow train accidents that send victims and railroads to court as adversaries. Absent a railroad possessing sufficient financial reserves and adequate liability insurance, every catastrophic accident portends financial destruction for the carrier and less than equitable settlements for innocent victims. Short line Montreal, Maine & Atlantic went bankrupt in 2013 following its fiery Lac-Mégantic runaway tank car disaster that killed 47, injured scores, leveled 40 buildings and contaminated a river with crude oil. Claims exceeded $200 million, but the railroad could afford just $25 million in liability insurance and had only $300,000 in cash reserves. Having shut down, it later was sold at auction for less than $16 million. A 2008 head-on collision in Chatsworth, Calif.(photo), caused by a commuter train operated by Veolia Transportation under contract to Los Angeles Metrolink, killed 25 and injured more than 130. Claims well exceeded payouts owing to a $200 million liability cap imposed by Congress in 1997 for benefit of stateowned passenger railroads and Amtrak. A 2005 Norfolk Southern accident that released deadly chlorine gas at Graniteville, S.C., killed nine, injured

more than 500, allegedly caused a textile mill to fail and resulted in tens of millions of dollars in claims settled out-of-court. While Class I railroads carry $1.5 billion in liability insurance—said to be the maximum available—their cash reserves are all that stand between an unthinkable calamity and insolvency as privately owned railroads have no liability cap. “Every time we pick up [hazardous materials], we’re placing a bet on the company,” NS CEO Wick Moorman said. Claims from the May 2015 Amtrak derailment likely will exceed it $200 million liability cap. A self-insurance reserve will pay the first $50 million; and if Amtrak’s $150 million insurance policy can be renewed, its annual premium likely will climb another $5 million to $25 million. Unless Congress increases Amtrak’s subsidy—a difficult sell in that the Republican controlled House voted to slash Amtrak’s current subsidy by some 20%—service reductions will occur or crucial Northeast Corridor infrastructure projects, already billions of dollars short of needed funds, may have to be delayed longer. As Amtrak was created as a for-profit corporation that can sue and be sued (although it has never earned a profit), it cannot invoke sovereign immunity —a legal concept that “a king can do no wrong”—to shield itself from lawsuits as can governments and their agencies.

Chatsworth, Calif. crash

So Congress provided Amtrak a $200 million liability cap, and extended it to state-owned passenger railroads in response to courts chipping away at the sovereign immunity defense. Following the Chatsworth accident, and now the Philadelphia Amtrak derailment, some in Congress, out of understandable concern for innocent victims, advocated increasing the liability cap from $200 million to $500 million. They don’t comprehend that the additional liability coverage could be cost prohibitive to subsidy-dependent public transit agencies and even Amtrak. Unknown is if substantially higher liability coverage for passenger operations can be found at any price. Innocent victims are entitled to adequate compensation. But when compensation threatens the financial survival of a passenger or freight railroad, there emerges an equally valid imperative that society not be deprived of rail service, or that innocent rail employees not lose jobs. Risk cannot be eliminated, but can be mitigated. One alternative in our increasingly litigious society is for Congress to create for public and privately owned railroads a liability cap, minimum insurance requirements attuned to size and budget, and mandated contributions to a captive insurance pool to pay excess claims on a no-fault basis, much as the PriceAnderson Act protects nuclear power facilities. Had the Graniteville disaster occurred in a more populated area, the $1.5 billion in liability insurance—said to be the most available from commercial insurers—would not have begun to cover the claims and NS would have faced liquidation. Already embedded in the Railway Labor Act is an awareness that railroads are too essential to cease service. Catastrophic accidents fit that awareness. June 2015 Railway Age 9

Update Supply Briefs

The wreck of Amtrak 188

Rail Connection forms JV with ITE Management Rail Connection Inc. (RCI), a subsidiary of Appalachian Railcar Services Inc. (ARS), has formed a joint venture with ITE Management L.P. with the purpose of acquiring, leasing and operating railcars, the company announced on May 8, 2015. The joint venture, dubbed Rail Connection L.L.C., will initially own nearly 2,000 railcars and is actively acquiring railcars to grow the business and asset base. Kurt Higginbotham will serve as President of the joint venture and continue as the Vice President of RCI, which will handle the day-to-day operations of the fleet. The joint venture will focus on building its fleet through acquisitions to provide the bestin-class service to its customer base and has the capacity to grow substantially to meet customer needs, RCI said.

Duos Technologies lands Raytheon contract Raytheon Intelligence, Information and Services (IIS) has awarded a contract toDuos Technologies, a wholly-owned subsidiary of Information Systems Associates Inc. (ISA), to provide a railcar undercarriage screening system in accordance with a Task Order established by the Transportation Security Administration for conducting a series of pilot programs to improve intermodal security at a variety of transportation focal points within the United States and its territories. The award will use Duos Technologies’ Vehicle Undercarriage Examiner (vue™) system in support of a Railway Undercarriage Screening demonstration deployment at a target test site identified within the Amtrak rail system. 10

Railway Age June 2015

The derailment occurred on Frankford Curve in North Philadelphia.

mtrak Northeast Regional Train 188, with 238 passengers and five crew on board, derailed at Frankford Junction in Philadelphia on the Northeast Corridor, shortly after 9:00 p.m. on Tuesday, May 12, 2015. Eight people died. More than 200 were injured, 8 critically. It was the first wreck of an Amtrak NEC train involving fatalities in 28 years. Train 188 was eastbound to Penn Station New York from Washington, D.C. Union Station. The entire train, consisting of ACS-64 electric locomotive 601 and seven Amfleet cars, derailed on Frankford Curve. The passenger cars separated from the locomotive. Several cars uncoupled, coming to rest on their sides. One car was severely damaged, its stainless steel carbody twisted and crushed, the result of hitting a catenary truss structure at high speed. Most of the fatalities occurred in that car. Train 188 was operating at more than 100 mph when it entered the curve, the civil speed of which is 50 mph. The NTSB has, through examination of the locomotive’s event recorder,

determined that the engineer, Brandon Bostian, made an emergency brake application moments before the derailment, prompting questions as to why Bostian was operating the train at nearly double the limit. On this particular curve, safe speed is enforced with a purposely designed manipulation of the cab signal system. Amtrak’s version of Positive Train Control, ACSES (Advanced Civil Speed Enforcement System), had not yet been installed in that location. NTSB, the FRA and Amtrak agreed that that if ACSES had been in place, it would have prevented the derailment. The FRA instructed Amtrak to immediately take several actions that were expected to be formalized via an Emergency Order to improve safety along the NEC: • Automatic Train Control to enforce speed restrictions is in place at Frankford Curve for westbound trains, which enter the 50-mph curve from a maximum authorized speed (MAS) of 110 mph. But ATC is not in place for eastbound trains, which enter from an MAS of 80 mph. “The rationale behind the decision not to install ATC (which

was made in the 1990s) is that the drop in speed (from 80 to 50) is considered within the risk envelope,” Amtrak said. “Going westbound, the decrease in speed is much greater going into the curve (110 to 50), so that’s why ATC was installed. Had 188 been operating at MAS heading into the curve, it would not have derailed.” Amtrak was ordered to install ATC for eastbound trains. • Amtrak was ordered to analyze all curves on the NEC to assess risk. In areas where approach speed is significantly higher than curve speed, the appropriate technology intended to prevent overspeed derailments must be implemented immediately. Amtrak must also take a new look at all curves along the NEC and determine if more can be done to improve safety in any of these areas. Amtrak will report back to the FRA with its findings. • Amtrak must increase its wayside signage alerting engineers and conductors of the MAS throughout the NEC. Increasing the amount and frequency of signage provides a redundant means to remind engineers and conductors of MAS, in addition to information they receive from the ATC system and other operations documents. “These are just initial steps, but we believe they will immediately improve safety for passengers on the Northeast Corridor,” said Acting FRA Administrator Sarah Feinberg. “While full implementation of PTC is the most important step that must be taken to improve safety, it is not the only action that we will require of Amtrak and other railroads. As we learn more from the ongoing investigation into this derailment, we will take additional steps and enforcement actions as necessary.” Amtrak President and CEO Joe Boardman reiterated that Amtrak is on schedule to complete ACSES installation on the entire NEC by the end of 2015. Additionally, the NTSB tapped the FBI to determine if the shattered windshield of Amtrak ACS-64 601 had been caused by a projectile hitting it before the train derailed. Engineer Bostian told NTSB

that the windshield had been struck by something; the windshield on a SEPTA train in the same vicinity was struck by something just minutes before 188 derailed. Prior to that, a westbound Amtrak Acela Express had been struck on the side by some kind of projectile, breaking a coach window. The FBI investigation ruled out the

possibility of a bullet. NTSB has not ruled out the possibility that another object may have struck the windshield. NTSB has completed its review of the data recorder and at this point has not found any indication of mechanical failure. NTSB says it is still early in the investigation, however, and nothing has been ruled out.

Engineer Brian Bostian recalls the windshield being struck by a projectile just prior to the wreck.

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5/26/2015 12:21:39 PM

Update Norfolk Southern is acquiring the D&H South Lines in New York and Pennsylvania.

THE RIGHT PEOPLE THE RIGHT EQUIPMENT

www.deltarr.com

Railway Age June 2015

STB starts on-time performance NPRM; approves NS acquisition The Surface Transportation Board announced on May 15, 2015 that it will begin a proceeding to define intercity passenger railroad on-time performance for purposes of Section 213 of the Passenger Rail Investment and Improvement Act of 2008 (PRIIA), 49 U.S.C. § 24308(f). It also approved Norfolk Southern’s acquisition of approximately 283 miles of rail line from the Delaware & Hudson Railway Company, Inc. (D&H). “The Board intends to issue in a subsequent decision a notice of proposed rulemaking (NPRM) in this matter, inviting public participation and comment,” said spokesman Dennis Watson. “This decision follows a series of events surrounding the constitutionality of Section 207 of PRIIA in the federal courts, as well as a petition filed by the Association of American Railroads requesting a rulemaking on this matter.” “The Board fully recognizes that when Congress enacted PRIIA, it placed importance on the efficient and timely adjudication of on-time performance,” said Watson. “Therefore, the Board will develop a definition of on-time performance with public participation through a formal rulemaking so that a process will be in place as Congress intended.” The Board issued its notice today in On-Time Performance Under Section 213 of the Passenger Rail Investment and Improvement Act of 2008, EP 726. That decision may be viewed and downloaded at the STB

website, www.stb.dot.gov. The STB also approved Norfolk Southern’s acquisition D&H’s South Lines, subject to certain conditions inlcuding that NS enter into two voluntary commercial agreements with D&H to preserve certain shippers’ access to two carriers, NS and D&H. The lines consist of approximately 267 miles of the main line between Sunbury/Kase, Pa., and Schenectady, N.Y., and approximately 15 miles of the running track between Voorheesville Junction and Delanson, N.Y. “In reaching its decision, the Board found that NS’s acquisition of the South Lines from D&H is not likely to cause a substantial lessening of competition or create a monopoly or restraint of trade,” said Watson. “The Board found this to be true, even when taking into account D&H’s planned discontinuance of trackage rights that connect to the D&H South Lines, which are the subject of a separate proceeding.” The Board concluded that any anticompetitive effects are unlikely and, even if they were to occur, would be far outweighed by the very strong public benefits of the transaction. Such benefits include allowing NS to provide more reliable, safe, and efficient service for shippers and allowing NSR and rail transportation generally to provide more effective competition with other modes of transportation, such as trucking and barge. The full decision, FD 35873, can be viewed and downloaded on www. stb.dot.gov.

CSX dedicates Quebec terminal CSX, along with partners from the government of the province of Quebec and the municipal administration of the City of Salaberry-de-Valleyfield, last month dedicated its new Quebec-based intermodal terminal. “The project required close coordination between Salaberry-de-Valleyfield, the Quebec Ministry of Transportation and CSX, and is a perfect example of public officials and private industry working together to create jobs, improve the region’s economy, reduce greenhouse gas emissions and establish more efficient trade corridors,” said CSX President and COO Oscar Munoz, “We are excited to continue developing the north-south trade corridor connecting Quebec to markets like Florida, Atlanta and the Ohio Valley.” The 89-acre terminal, which opened in December, includes three miles of track and uses three modern rubbertire gantry cranes to transfer containers between trains and trucks. Goods move to and from the facility in doublestack intermodal trains, “the most efficient and environmentally beneficial way of transporting freight,” CSX said. “A fully-loaded doublestack train can carry the equivalent load of 280 trucks, and thanks to ongoing investments, CSX generated record-high fuel efficiency in 2014.” CSX said the $100 million terminal “increases access for Montreal regional businesses to the 21,000-mile CSX network, which serves nearly two-thirds of American consumers, reaching south into the Mid-Atlantic and Southeast population centers. This enhanced connectivity helps Canadian companies take advantage of the increased trade between the two nations, supported by NAFTA.” “This state-of-the-art terminal is the result of a close working relationship between CSX and our local partners, and we believe it is a positive asset for Quebec and the Salaberry-deValleyfield community as we invest to grow together,” Munoz added.

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June 2015 Railway Age 13

Update KCS to invest $15.6 million in Missouri rail line

Work will occur on the Pittsburg Subdivision between Kansas City and Stotesbury, Mo.

Kansas City Southern’s (KCS) U.S. subsidiary, The Kansas City Southern Railway Company (KCSR) will invest approximately $15.6 million in 2015 on construction and improvement projects on the segment of the Pittsburg Subdivision line from Kansas City to Stotesbury, Mo., the company announced on May 12, 2015.

These projects will help grow capacity, as well as maintain and enhance safety on KCS’ cross-border network, the company said. Work, which will include the replacement of 1.75 miles of rail and 100,000 cross ties, as well as improvements to over 90 road crossings in the communities of Kansas City, Grandview, Cleveland, Drexel,

Amsterdam, Hume and Stotesbury, will begin on May 26, 2015 and continue through the end of June. “KCS, through its U.S. and Mexican subsidiaries, continue to invest in capital projects to expand network capacity, keep maintenance in a regular and healthy cycle, and enhance the safety of our operation,” said CEO David L. Starling. “These investments also help us to be an economic growth partner to our customers and the communities through which we operate.” In Missouri, KCSR owns and operates 396 miles of railroad. In addition, KCSR provides service to an intermodal facility in Kansas City; the river ports of St. Louis and Kansas City and six transload facilities in the state. The KCSR network in Missouri serves as an effective transportation and logistics solution for shippers moving goods throughout North America.

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James H. Evans, 1920-2015 James H. Evans, who served as Union Pacific Chairman of the Board from 1977 to 1985, died Monday, May 11, 2015. He was 94. UP did not report a cause of death. Evans joined UP’S management in 1969 as President and a Director. He served as President from 1969 to 1977, at which time he became Chairman and CEO. He was part of a leadership team that championed UP’s merger with Missouri Pacific Railroad and Western Pacific Railroad, which helped set the stage for the company’s freight rail performance continuing today. Evans joined UP from The Seamen’s Bank for Savings where he had served as President and then Chairman and President. Prior to that, he was Financial Vice President and Director of Dun &

better.

Bradstreet Inc., following the merger with Reuben H. Donnelley Corporation where he served as Secretary-Treasurer and General Counsel prior to being elected a Vice President. Born June 26, 1920, in Lansing, Mich., Evans’ first position following his service as a Navy Lieutenant in World War II was with Harris Trust & Savings Bank in Chicago as an attorney and loan officer. In addition, Evans was a former Director of American Telephone and Telegraph Company, The Anaconda Company, Bristol-Myers Company, Citicorp/Citibank, Dun & Bradstreet Inc., General Motors Corporation and Metropolitan Life Insurance Company. He was also a former Co-Chairman of The Business Roundtable and a former member of The Business Council. Evans was a life trustee of the Central Park Conservancy, where he

served as former Chairman. He also served on the governing boards of New York-Presbyterian Hospital, The University of Chicago, Centre College and the John F. Kennedy Center for the Performing Arts, where he was former Co-Chairman. He served as a member of the Board of Governors of the American National Red Cross, where he was former National Fund Chairman, and the President’s Committee on Environmental Quality. He was a trustee of the Rockefeller Brothers Fund and the founding Chairman and life trustee of the National Recreation and Park Association. Evans was also a member of the Racquet & Tennis Club and Knickerbocker Club, both of New York City; the Maidstone Club of East Hampton, New York; Alfalfa Club and the Metropolitan Club of Washington, D.C.

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DOT-117 defined By DAVID THOMAS, Contributing Editor

The wait for a new tank car specification is over. Now comes the “fun” part: Retrofits to older cars, and potentially onerous operating rules.

he final spec for the now-official DOT-117 (TC117 in Canada) non-pressurized tank car adopts the most demanding of the technical requirements first offered for comment in the notice of rulemaking: jacketed and thermally insulated shells of 9/16-inch steel, full-height half-inch-thick head shields, sturdier, re-closeable pressure relief valves, and rollover protection for top fittings. Of most concern to carbuilders and buyers is the tight timeline for the retrofitting or retirement of existing DOT-111s and the newer industry-sponsored CPC-1232 cars constructed since 2011, before the 2013 disaster at Lac-Mégantic forced regulators to finally heed years of warnings by accident investigators in the U.S. and Canada. Those “good faith” cars now need to be upgraded to meet DOT-117 standards by May 1, 2025. The phaseout/retrofit schedule will see unjacketed DOT-111s removed from the most-volatile Packing Group I crude oil service by January 2018, jacketed DOT-111s by March 2018, unjacketed CPC-1232s by April 2020. For Packing Group II, jacketed and non-jacketed DOT-111s may remain in service until May 2023, non-jacketed CPC-1232s until July 2023, and jacketed CPC-1232s until May 2025. To enforce the timeline, the regulations require stricter testing and classification of crude oil offered for transport. The regulatory package is to be enforced by the USDOT’s sibling regulators, the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA). Cost of fleet renewal is estimated by regulators to be about $1.7 billion. Total costs for the entire regulatory package,

including train routing and speed restrictions, is projected to be $2.5 billion. The regulations remove the burden of reporting every oil train movement to state emergency response agencies. Instead, railroads must promptly respond to requests for information initiated by local emergency responders. This should address railroad complaints that business and security concerns were being compromised by state freedom of information laws. The rule requires HHFTs (high-hazard flammable trains), defined as consisting of a continuous block of 20 or more tank cars or 35 or more cars dispersed through a train loaded with a flammable liquid, to have in place a two-way end-oftrain (EOT) device or a distributed power (DP) braking system. HHFTs are limited to 50 mph, with a conditional 40 mph maximum in densely populated urban areas. Trains meeting the definition of a “HHFUT” (high-hazard flammable unit train), defined as “a single train with 70 or more tank cars loaded with Class 3 flammable liquids,” with at least one tank car with Packing Group I materials, must be operated with an electronically controlled pneumatic (ECP) braking system by Jan. 1, 2021, or reduce maximum speed to 30 mph. All other HHFUTs must have ECP braking systems installed after 2023. The urban speed limit will be lifted for trains consisting entirely of new or retrofitted cars meeting the DOT-117 requirements. Even as he announced May 1 (jointly with Transport Canada Minister Lisa Raitt) that all unit oil trains must be equipped with ECP by 2023, Transportation Secretary Anthony Foxx anticipated legal challenges from railroads and fleet operators June 2015 Railway Age 17

dot-117 defined

who say the technology is unreliable and unnecessary. Indeed, railroaders and shippers were quick to declare their objections to ECP requirement. “This is an imprudent decision made without supporting data or analysis,” said Ed Hamberger, president of the Association of American Railroads. “The ECP brake requirement ordered today by the Department of Transportation is an ‘operational requirement’ and is not part of the PHMSA tank car standard rulemaking. The requirement for ECP brakes is aimed at tank cars, not locomotives. Railroads don’t own tank cars, they own locomotives. While the requirement for ECP brakes is aimed at tank cars, not locomotives, by default, locomotives will have to be ECP-equipped to be able to move cars with ECP brakes. The decision whether or not to equip tank cars moving crude oil belongs to freight rail customers or tank car owners, not the freight railroads. If tank car owners decide not to equip tank cars intended for crude oil service, railroads must decide whether or not to move trains carrying 69 or fewer crude oil tank cars or travel no faster than 30 mph. Either scenario will decrease rail capacity and have negative consequences on both freight and passenger traffic.” Railroads objected to compulsory ECP after it was proposed in the DOT’s NPRM last

August, saying braking distributed via mid-train locomotives and end-of-train devices would be just as effective. The American Petroleum Institute said the ECP requirement will further stress an already impossible timeline for total fleet renewal. It warned that oil shortages will result as existing tank cars are withdrawn before builders can replace them: “We support upgrades to the tank car fleet and want them completed as quickly as realistically possible. The railcar manufacturing industry’s own calculations show it does not have the shop capacity to meet the retrofit timeline announced today, which will lead to shortages that impact consumers and the broader economy.” Tank car manufacturers, however, greeted the timeline as “aggressive but appropriate.” Railway Supply Institute President Tom Simpson joined the chorus against ECP, saying “technical and logistical challenges” may not make ECP better than conventional distributed braking. This may be the first time regulators have distinguished between packing groups with respect to tank car choice. Currently, all three packing groups may be carried in identical cars, the only difference being in the hazmat placarding and documentation. The timeline for tank car retirement or retrofitting is also tied to the lading’s packing group.

Timeline for the Retrofit of Affected Tank Cars for Use in North American HHFTs

The January 1, 2017 date would trigger a reporting requirement, and shippers would have to report to DOT the number of tank cars that they own or leave that have been retrofitted, and the number that have not been retrofitted. 18

Railway Age

June 2015

One intended effect is to allow older tank cars to transition from higher-risk crude to lower-risk ethanol service during fleet renewal. Gone from the final rules is the strategy to shift riskier cars to Alberta tar sands service, now that diluted or synthetic bitumen proved itself to be unexpectedly explosive in a pair of midwinter mishaps in northern Ontario. Without much explanation, the final rules excluded incentives to encourage voluntary degasification or stabilization of crude oil before loading. But Foxx hinted at more to come in subsequent rulemaking initiatives, saying the quest for safer transportation of crude oil will now become a multi-departmental effort, with a focus on the volatility of the cargo. Not surprisingly, The Greenbrier Companies was quick to point out that its “Tank Car of the Future” is, in effect, a DOT/TC-117, strongly suggesting that regulators simply adopted its design as the new spec. “Greenbrier announced its Tank Car of the Future in February 2014, a safer design . . . that the USDOT and TC introduced today as the new DOT-117/TC-117,” said Chairman and CEO Bill Furman. “We’re currently delivering cars to our customers that meet these new standards. Nearly 1,000 of these tank cars are already in Class 3 flammable liquids service across North America. With orders in place for more than 2,500 of these cars, safer tank cars are steadily joining the North American rail fleet. Greenbrier believes that by mandating the new DOT-117/TC-117 tank cars be built with features such as increased shell thickness, full-height, half-inchthick head shields, minimum 11-gauge jackets, a re-closeable pressure relief valve and thermal protection, the U.S. and Canada have taken steps to mitigate the consequences of train accidents and will ultimately enhance public safety. These tank car design improvements produce tangible and immediate safety benefits that far exceed any marginal benefit from US DOT-mandated ECP brakes, which Greenbrier has consistently questioned.” RA

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2015 GUIDE TO

EQUIPMENT LEASING

By David Nahass, Financial Editor

Believe it— there is more to the railcar market than tank cars.

here is more to life than tank cars. Though you may not believe it, other car markets do exist and continue to operate while tank cars dominate the headlines. Here’s what’s going on around the horn.

All photos: Bruce Kelly

Covered Hoppers (Grain): After

a big run-up in rates, we hear that there is a little softening in this market at both the high-cube (5,150-cubic-foot) and smaller-cube (4,750-cubic-foot) levels. This could be typical seasonal slowness in the case of the jumbo cars and demand might steady and strengthen as we approach the harvest. The current planting season lacks definition but does not point to a record crop year. Plus, significant grain remains in storage. On the smaller side, older 4,750-cubic-foot cars are finding their way back into grain after potentially spending years in sand service. That market could slow down in a hurry if every lessor repurposes the cars used in sand for grain. Jumbo rates are around $500 and smaller cars in the mid $300s (full-service per car per month).

Covered Hoppers (Sand): This

softening market has many investors on their heels. Anecdotally, there are stories of cars in storage in the thousands. Frac well productivity

continues in spite of the low price of oil, but as Kristine Kubacki of Avondale Partners has been pointing out, train velocities are increasing and car dwell times are decreasing. Efficiency is working against this and other markets. The result: more car availability and a retrenching of the fleet to remove suboptimal (rate, term and size) cars. While the backlog is not increasing, there are substantial numbers of new cars yet to be built. Lease rates? A general softening is occurring to levels in the high $400s, maybe low $500s (full-service per car per month). There’s tough sledding ahead near-term as cars ordered during the oil boom roll off production lines and potentially into storage while they look for homes. Sources say that this market will be prepped for a turn when the turn comes. Investors may need a strong stomach for this ride. Plastic Pellet Covered Hoppers: Strength

in this market continues as the producers work to manage the impact of the low price of natural gas and oil (though both are off their lows from earlier in the year). There is optimism about the next three to five years for this car type as production facilities come on line and car demand increases. Low priced oil has sidelined or called into question some planned ethane June 2015 Railway Age 21

EQUIPMENT LEASING GUIDE

The tank car market is all over the place considering the speculation, price of oil and the numbers of cars beng built.

crackers so keep your eyes on exactly where demand is going to be coming from. This market, its low mileage and few annual car turns per year is not as heavily impacted by velocity improvements. Lease rates are in the high $600s and low $700s (full-service per car per month). Coal Cars: Low

oil and natural gas combined with improving velocity take a bite out of coal car pricing. As decreasing levels of coal-fired power production competes with natural gas for market share, this market will be more commodityand price-focused. Lease rates: Gondolas are trading in the high $200s or low $300s and hoppers in the low $400s, fullservice. Those numbers are likely to decrease before they increase as the metrics for this market continue to weaken.

Mill Gons: Though

off its five year low, iron ore is still very low as is the current sub $300 per ton scrap steel. This market, which tightened in 2014, is now softening with demand. This fleet is in need of rehabilitation, but the market softness demonstrates why lease rates for these cars do not support investment in new cars. Lease rates on older cars are in the low $300s (full-service per car per month) while for newer cars, rates are in the low $600s (or at least thatâ&#x20AC;&#x2122;s the asking price). Opportunities for placing cars in new leases are few here. There is likely to be continued softness.

Boxcars: Difficult to tell if the demand for boxcars is due more to issues in velocity or overall demand for the products 22

Railway Age

June 2015

being loaded in them. New car orders are low in volume but the boxcar fleet is engaged in a long-term process of being overhauled to Plate F from Plate C. Good quality Plate C cars are still in demand at over $450 (full-service per car per month). Newer Plate F cars are running more than $600 (full-service per car per month). Improved rail system metrics could soften this market. Tank Cars (Crude): This

market is all over the place considering the speculation, price of oil and the numbers of cars being built. There are stories of thousands of tank cars moving to storage and spot leases available at a fraction of the peak-of-the-market $3,000 (full-service per car per month) from 18 months ago. Cars are leasing for below $1,000 (full-service per car per month) though we do hear of lessors trying to hold the line and keep rates high where possible. Until final resolution is achieved on the tank car regulations, these rates should follow the price of oil. Once the regulations are final and the appeal process has been completed, all bets are off and good luck for all.

The Gordian knot of tank car retrofitting

On May 1, 2015, the Department of Transportation (DOT) and Transport Canada (TC) made a joint announcement on the future of tank car design and use for tank cars hauling crude, ethanol and other flammable and combustible products. Beyond agreement on the fact that there was an announcement, the market of lessors, lessees, manufacturers

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EQUIPMENT LEASING GUIDE

Lease rates for plastic pellet covered hoppers are in the high $600s and low $700s.

Tank car retrofit cost estimates range from $45,000 to $74,000 (per car). Consensus estimates say $60,000. and railroads remains uncertain about the future of the design, the market for retrofitting, the demand for new tank cars going forward, the real or imaginary need for electronically controlled pneumatic (ECP) brakes, the timing, the ultimate safety of the retrofitted tank car vs. the newly built car, and how the railroads that will be moving the retrofitted and non retrofitted cars will be able to segregate and adjust pricing on those cars to fit each individual situation. An intractable problem indeed! (aka a Gordian knot). Tank car retrofit cost estimates range from $45,000 to $75,000 (per car) with a consensus settling somewhere in the $60,000 range. That’s the (very rough) potential cost for bringing a nonjacketed and noninsulated CPC 1232 design up to DOT 117R compliance. Want ECP brakes? Add another $6,000-$10,000 to that price. That invested cost into an asset that is anywhere from four to ten years old seems

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Railway Age

June 2015

fairly modest—one, compared to the cost of an entirely new replacement car (estimated at $160,000 per tank car) and two, when you consider that 10 years represents only 20% of the interchange life of a tank car. Who is going to pay for the retrofit? QUICK! Before you think about this question and before you read this paragraph, send your response (e.g., car owner, lessees, the DOT, etc.) to dnahass@railfin.com in the subject line of the email. The results will be posted in the July “Financial Edge” column in Railway Age. The quick answer is that there is no easy response (duh!). Ultimately, the owner of a car will in some way have to take responsibility for its provisioning for service. For companies that own their cars and move crude oil, for example, it is straightforward: The car owner is responsible for the retrofit. These companies are “in for a penny, in for a pound.” If, like most end-users, the tank cars you operate are leased, the picture is a bit cloudier. A lessee in a net lease (where the lessee is responsible for car maintenance during the lease term) is like being the car owner during the lease term. A lessee in a full-service lease (where the lessor is responsible for, among other things, car maintenance during the lease 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.

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EQUIPMENT LEASING GUIDE Car Type

Original LD Limit (lbs.)

Original LT Weight (lbs.)

Post Retrofit LD Limit (lbs.) (estimated)

Post Retrofit LT Weight (lbs.)

Change in LD Limit

DOT 111 (263 GRL)*

193,000

70,000

178,000**

85,000

15,000

1232 (non coiled non insulated)

210,000

76,000

195,000**

91,000

15,000

DOT 117 spec

192,000

94,000

N/A

(*Estimated cost of upgrading trucks from 263 GRL to 286 GRL is $30,000 per car) (**after retrofit, the 1232 and DOT 111 would be called the DOT 117R)

term) has a lease with a provision that obligates the lessor to comply with laws requiring modification and increase your rental rate to accommodate the cost of the modification. This is called a mandatory modification. Hereâ&#x20AC;&#x2122;s where it gets cloudy. For a CPC-1232 specification tank car in packing group I (Bakken crude) service, the DOT set a date of April 1, 2020 (April Fools Day?) for compliance with the new tank car design. If your lease expires prior to that date, does a lessee have any responsibility to the car owner/lessor? If a lessor moves to modify a car and that modification will survive for the life of the car, how much of that cost should be the responsibility of a short-term lessee? These important questions will need to be addressed on a case-by-case basis.

Railway Age

June 2015

Most lessors will not write a $60,000-$75,000 check for one car, never mind for 100 or 1,000 tank cars without a source of repayment. That is a huge risk. Lessors and car owners make investment-expecting repayment on that investment. When considering modification, this issue is key. Which tank cars will be retrofitted? There are two main considerations when the topic of retrofitting comes up: Gross Rail Load (GRL) and Load Limit (LD Limit) that the tank car can carry. (The difference between the GRL and LD Limit is called the Light Weight, LT Weight.) How will these factors influence the choice of which cars will and wonâ&#x20AC;&#x2122;t be retrofitted? A bit of railcar history. In 2005, the AAR defined a specification for railcar trucks (S-286) that established a standard for railcars that would carry 286,000 pounds GRL.

EQUIPMENT LEASING GUIDE

Prior to that date, cars could be stenciled for 286,000 pounds GRL (though many were still stenciled at 263,000 or 268,000 pounds GRL). General types of freight cars such as covered hoppers for grain and plastics, coal cars and mill gons operated at 286 GRL capacity. However, for the most part, tank cars were not stenciled to the larger capacity until the S-286 specification was put in place. What does this mean? First and foremost it means that cars built before the 286 GRL date may be at a disadvantage for retrofit. The loss of approximately seven to eight tons of commodity in a tank car is critical in evaluating crude by rail (CBR) economics. See chart on p. 26. Capacity loss will impact economics of scale, the cost of transportation (the railroad being required to haul more steel and less product and wanting to haul those cars that can be hauled at maximum rather than restricted speed), product salability and profit margins. Cars that are less than 286 GRL will be at a disadvantage when decisions about retrofitting will be made. Which tank car is safest (or the politics of tank car safety)? A tank car lessee confided that they did not want their company to be the operator of a retrofit car (DOT 117R) that derails and explodes. This suggests that the company, by not using a car perceived as the most modern DOT 117 tank car, did not adopt the safest possible approach to shipping its

commodity. On this issue there rests the finest of lines. A tank car is an expensive investment. Those that invested in tank cars prior to the DOT regulation should not be forced to throw those cars away at a loss to create an appearance of greater safety. Yet potential for that circumstance does exist. A tank is a welded item, not a cast item. Welds are welds. The parties involved in the railroad industry are safety minded and concerned about the public welfare. While this concern may be overblown and may be overstated, it is real.

A tank car is an expensive investment. Those that invested in them prior to the DOT regulation should not be forced to throw those cars away at a loss to create the appearance of safety. For each company, decisions on safety and economics will touch each branch of a broad decision tree: cost of retrofitting, impact on product sales, change in freight rates, adjustments to lease expense, availability of shop capacity for retrofit and production capacity for new builds, and perhaps most important, the appearance (or lack thereof) of concern for the safety of transportation. Very, very Gordian.

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RGCX offers comprehensive railcar leasing and remarketing programs. We also provide railcar maintenance management services utilizing our proprietary webbased ARMS速 software. Please visit our website for details: www.rgcx.com David M. Bertram VP Sales and Marketing Phone: (956) 686-2221 david.bertram@rgcx.com

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 venture of Infinity Management Partners, LLC and Perella Weinberg Partners

June 2015 Railway Age 27

EQUIPMENT LEASING GUIDE Appealing the DOT Regs

As some readers may be aware, several parties have raised concerns about the regulations regarding tank car design and service changes issued by the Department of Transportation (DOT) and Transport Canada on May 1, 2015. Several parties are appealing the DOT regulations to the United States Court of Appeals. In an attempt to understand the appeals process, its impact and timing, I spoke with Christopher J. McAuliffe who is Senior Counsel at Morgan Lewis & Bockius, LLP. Chris has a strong background in environmental work and has worked on appeals of governmental regulations similar to the recent DOT promulgation. I asked Chris some questions about the appeals process. RA: A number of parties have initiated court challenges to DOT’s new tank car regulations. What is that process and what are the potential results? McAuliffe: A party adversely affected or otherwise aggrieved by a final action of the Secretary of Transportation, such as the new tank car regulations, may file a petition with the United States Court of Appeals requesting that the court review the regulations within 60 days of when the action is final. Absent special circumstances, petitions to review final regulations are limited to issues raised by the party during the public comment period on the draft regulations. Parties

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Railway Age

June 2015

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, locomotives, 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 © 2014 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. WCS-1201452

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EQUIPMENT LEASING GUIDE

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Optimized rail solutions from CIT Rail, based on industry-leading leasing and equipment management expertise. CIT Rail has a long-standing commitment to providing leasing solutions to rail shippers and carriers. We leverage deep experience and one of the youngest, most diversified railcar and locomotive fleets in the industry. Our solutions free up capital for your growth priorities, increase efficiencies and reduce out-of-service time.

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seeking court review typically assert that challenged provisions of the regulations (or the regulations in their entirety) are arbitrary, capricious, an abuse of discretion, contrary to law or otherwise outside of the regulatory agency’s authority. After the appeal petitions are filed, the challenging parties will file briefs to explain their position. The government will file briefs defending the regulation. The court, after hearing oral arguments from the parties, will issue its decision. Generally, the court can uphold the regulations and dismiss the challenges, or vacate and/or remand some or all of the regulations back to the regulatory agency for further consideration. The court will not rewrite the regulations, but it may provide the regulatory agency with guidance on rewriting the regulations if the regulations are remanded back to the agency for further rulemaking. RA: What impact do these challenges have on the effectiveness of the regulations and parties’ compliance obligations? McAuliffe: The new regulations become effective 60 days after their May 8 publication in the Federal Register, which is July 7. Challenges do not impact their effectiveness unless the court stays the regulations or the DOT withdraws or stays the regulations. So, absent such a stay or withdrawal, the regulations are law until a court says otherwise. Parties engaging in transactions should account for the new regulations in their negotiations. They should consider how the terms of their transactions should change if the regulations or some portion of the regulations are vacated or the DOT changes the regulations in response to a court’s decision. RA: When can we expect a resolution of these challenges? McAuliffe: It’s too soon to tell, but it is safe to say that there

will not be a final court decision on these new regulations for at least a year. A factor in how fast a case like this moves is the number of parties and issues involved. For these new regulations, large numbers of parties submitted comments on many provisions of the draft regulations so there potentially is a large pool of participants in this litigation who could raise a large number of issues for the court to consider.

RA: Any similar proceedings on this matter? McAuliffe: There have been many challenges

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June 2015

filed and decided by United States Court of Appeals over the past several years with respect to regulations issued by the Environmental Protection Agency. Many of these environmental regulations, similar to the DOT’s new tank car regulations, are complex and require large expenditures by the regulated parties over a series of years. Industry, private interest groups, the government and the courts have learned from those experiences how to conduct effectively the inevitable legal proceedings that arise out of such regulations, and businesses have adjusted to any uncertainty presented by such legal challenges. It is important for parties to keep informed on these matters and to maintain flexibility to make adjustments where necessary. RA

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september 17-18, 2015 Key bridge marriott arlington, Va Domestic crude oil Production & rail Traffic Trends Bakken crude: Boom or Bust? Tank cars: DoT-117s & legacy car retrofits New regulatory & Safety requirements effect of â&#x20AC;&#x153;Sloshingâ&#x20AC;? on Track/ Train Dynamics ecP Brake mandate controversy Tank car Financing & leasing

equipment leasing Guide

Leasing Resource Directory

CIT Rail is an industry leader in providing customized leasing and financing solutions for our customers throughout North America as well as in Europe through our subsidiary, Nacco, A CIT Company. We leverage a highly diversified fleet of efficient railcars and locomotives to supply railcar transportation solutions to shippers and carriers across a wide range of industries. Our solutions free up capital for your growth priorities, increase efficiencies and reduce out-ofservice time. CIT Rail owns over 120,000 railcars and 450 locomotives leased to approximately 670 customers. CIT Rail brings unparalleled asset management expertise and commitment to the transportation sector.

citrail.com

Rio Grande Chemical, Ltd. is a rapidly growing railcar lessor serving customers in North America. Rio Grande offers versatile operating lease arrangements, quality rail equipment, Internet based asset management and exceptional leadership focused on achieving customer goals and requirements. We invite you to contact our experienced team and learn how Rio Grande can assist in you with enhancing your rail based operations. Rio Grande specializes in rail transactions where Mexican railroads and shippers are involved- both in International movements as well as domestic movements. Our expertise extends to knowledge and experience with importation, exportation, railcar maintenance, logistics and compliance management. Rio Grande Chemical, Ltd David Bertram david.bertram@rgcx.com 956-686-2221 (P) 956-686-8290 (F)

www.rgcx.com

Railway Age

June 2015

First Union Rail, a Wells Fargo company, is one of the largest, most diverse railcar and locomotive leasing companies in North America. We have a fleet of over 100,000 railcars and over 350 switcher, 4 axle and 6 axle locomotives available for operating lease. First Union Rail offers a variety of customized finance and operating lease structures, as well as railcar marketing and transportation management services. Contact First Union Rail’s team of professionals to help find the right equipment to solve your transportation needs. One O’Hare Centre 6250 N. River Road, Suite 5000 Rosemont, IL 60018 Rich Seymour Vice President Sales and Marketing E-Mail: Richard.Seymour@wellsfargo.com Phone: (847) 318-7575

www.firstunionrail.com

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 rail-oriented 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 everchanging needs. In addition, we offer finance and operating leases, sales/leaseback programs, and short and long-term rentals. Progress Rail Equipment Leasing 15173 North Road, Fenton, MI 48430 (810) 714-4626 Voice • (810) 714-4680 Fax

www.progressrail.com/mowfinancing

The David J. Joseph Company

The Andersons Rail Group consists of approximately 22,000 cars and locomotives that we lease. 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 having extensive knowledge about taxation, government regulations and railroad requirements. As a valued customer of The Andersons Rail Group, you can expect reliable equipment, flexible lease options and superior customer service. SALES/LEASING Chuck Brown, VP, Sales 419-891-6386 Matt Keck, Sales Rep. 419-891-6693 REPAIR Sam Anderson

406-560-6920

www.andersonsrail.com

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 contact: info@djj.com

www.djj.com

equipment leasing Guide

The 2015 Guide to Equipment Leasing (pages 21 through 30) is supported by 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

With total assets in excess of $12 billion, Element Financial is one of North America’s leading equipment finance companies operating within four verticals of the equipment finance market – Rail Finance, Aviation Finance, Commercial & Vendor Finance, and Fleet Management. Our Rail Finance group has a longstanding track record of delivering tailored financing solutions for all types of rolling stock including tank and general freight railcars. As trusted advisors on complex transactions, we put our experience to work by adding value through our counsel as well as our capital.

elementcorp.com

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 (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

James D. Husband, President 1307 Jamestown Road, Suite 101 Williamsburg, VA 23185 757-903-4606 • Fax: 757-903-4705

www.infinityrail.com

Since 1966, V&H Inc. has excelled as a full service company. We serve local, regional and national customers. Our goal is to supply task-specific truck equipment, timely maintenance, and unparalleled customer service. V&H Leasing Service has one of the largest rental inventories in North America. aterial Handling/ •M Grapple Trucks • Welding Trucks • Section Trucks • Rotary Dump Trucks • Pick-ups

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.

• Hirail Pick-ups • Service Trucks • Mechanics Trucks • Stick Boom Trucks • Knuckle Boom Trucks

Leasing & Rental Contacts: Dean Olson, Rental Coordinator 866.287.8581 Jason Adamski, Rental Sales 866.287.8581 V&H Leasing Service Inc. 1505 S. Central Avenue Marshfield, WI 54449 800-826-2308

www.vhtrucks.com

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 2015 Railway Age 33

2015 PASSENGER RAIL GUIDE

By Carolina Worrell, Managing Editor & William C. Vantuono, Editor-in-Chief

The California High-Speed Rail Authority issued a request for qualifications for its upcoming Rail Delivery Partner (RDP) procurement. In January, CHSRA broke ground on the nation’s first high-speed rail system. Local and statewide small businesses are completing a majority of Construction Package 1, which includes 12 grade separations, two viaducts, a tunnel, and a bridge over the San Joaquin River. As of September 2014, 40 small businesses have active contracts valued at $296 million. A joint venture of Tutor Perini Zachry/Parsons is designing and building this first phase. Amtrak

In February, the House Transportation and Infrastructure Committee approved nearly $8 billion in funding for Amtrak. Dubbed the Passenger Rail Reform and Investment (PRRIA) Act, the bill provides about $982 million per year for Amtrak’s national network and another $470 million annually for its Northeast U.S. routes. The bill, which is set to expire in 2019, also provides another $300 million 34 Railway Age June 2015

per year for construction on Amtrak routes in the rest of the country. Amtrak last received an appropriations bill in 2008, which provided about $1.3 billion for a combination of operations, construction and debt service. Work on the Empire Corridor, a partnership of Amtrak, the New York State Department of Transportation and CSX Transportation, continues. The program will design and construct approximately $200 million of infrastructure improvements: Albany-to-Schenectady double track, 17 miles of second main track and upgraded signals; Albany-Rensselaer station, fourth track; Schenectady station, new platform; replacement of old signal pole lines with new underground cables between Poughkeepsie and Red Hook; and upgrading of three grade crossings. VIA Rail Canada

A May 2014 investment of C$10.2 million in the restoration of the Newcastle line, as well as additional departures on the company’s Ocean service during the holiday season, is intended to support targeted strategies for building traffic and

improving customer service. Travel time between Montreal and Halifax has been reduced by approximately one hour. Boston

The USDOT awarded the Massachusetts Bay Transportation Authority (MBTA) a $996 million FTA New Starts grant to extend its Green Line light rail service from East Cambridge to Somerville and Medford. DOT will contribute the $996 million over the course of the $2.3 billion project, which is being constructed in four overlapping phases from 2013 to 2020, with funds from the Commonwealth covering the remainder. The project will also include purchase of 24 new light rail vehicles; and relocation of some existing commuter rail track. As of March 2015, refurbished Green Line Type 7 LRVs have started to make their way back to Boston, following significant work at the Alstom plant in Hornell, N.Y. The $104.4 million project includes upgraded HVAC, auxiliary lighting, flooring, seating and insulation. MassDOT completed its $12.1 million purchase of 37 miles of

Joe Calisi

California HSR

PASSENGER RAIL GUIDE

Housatonic Railroad right-of-way stretching from Pittsfield, Mass. to Canaan, Conn., the railroad’s headquarters city sitting. Providence, R.I.

Rhode Island’s state capital is moving forward with an altered version of its proposed streetcar line. The city is seeking proposals for a $100.2 million, 1.6-mile streetcar line that would begin at the Providence Amtrak/MBTA station and end near the main entrance of Rhode Island Hospital. Connecticut

Completion of MTA Metro-North Railroad’s catenary replacement project on its New Haven Line is targeted for early 2017. Work is being funded through the Connecticut DOT. ConnDOT announced capital investment to the newly named Hartford Line linking the state capital with Springfield, Mass. to the north, and New Haven, Conn., to the south. Construction is under way at numerous locations along what was called the New Haven-Hartford-Springfield Rail Program. New York City

The New York MTA awarded a contract to GCT Constructors, JV, a joint venture of Schiavone Construction Co. and John P. Picone Inc., to build the 375,000-square-foot Long Island Rail Road concourse at Grand Central Terminal. The contract is worth a minimum of $404.8 million. NYMTA released its 2015-2019 Capital Program last September. The program includes $5.5 billion to expand the MTA network through major investments. This includes $1.5 billion to begin the next phase of the Second Avenue Subway from 96th Street to 125th Street in Manhattan. Currently, Phase I of the Second Avenue Subway, between 63rd Street and 96th Street, is under way and slated for completion by 2016. Of the $5.5 billion, $2.8 billion will be to complete funding for ESA, and $743 million to begin the Penn Access project to bring Metro-North New Haven Line service into Penn Station and build four new stations in the Bronx. On May 16, the MTA announced a series of efforts to flood-proof major

sections of the New York City subway system. Specific projects include repair work in the 53rd Street, Cranberry, Rutgers, Clark Street, Canarsie and Montague subway tubes under the East River and the Greenpoint Tube under Newtown Creek; pump room augmentation; plan and design work for flood mitigation at the Coney Island, 148th Street and 207th Street subway car yards and 12 ventilation plants in multiple low-lying areas of Manhattan, Brooklyn and the Bronx; flood mitigation at the St. George Terminal and Clifton Shop of the Staten Island Railway; design and development of flood prevention and mitigation equipment at the entrances to several low-lying Lower Manhattan subway stations. Final design reviews on PATH’s Signal System Replacement program have been completed and project completion is scheduled for 2015. PATH’s current power substation upgrades program includes replacements and upgrades of three substations and two switching stations. Work is anticipated to be completed by 2017. New Jersey

The USDOT awarded New Jersey Transit $147 million through the FTA Public Transportation Emergency Relief Program for repair, recovery and resiliency projects associated with Superstorm Sandy. The funding will be used to continue to advance work on the Morris & Essex and North Jersey Coast Lines’ signal and communications systems, repair traction power and distribution systems that support the Hudson-Bergen Light Rail system, and other long-term recovery efforts. NJT will receive $843,750 in federal funds to develop a validated forecast and warning system, in partnership with Stevens Institute of Technology in Hoboken, N.J. Philadelphia

Ground has officially broken on the $19.6 million 69th Street Transportation Center West Terminal Improvements Project, scheduled to be completed in November 2015. SEPTA’s proposed Operating Budget for Fiscal Year 2016, the 12-month period from July 1, 2015 through June

30, 2016, is $1.36 billion, an increase of 2.84% over Fiscal Year 2015. It maintains current SEPTA service levels, with no increase in fares, and includes resources for the permanent implementation of 24-hour weekend service on the Broad Street Line subway and Market-Frankford Line subway/elevated, which was launched as a pilot program last year. PITTSBURGH

A “Spine Line” extension to the city’s Oakland neighborhood, a major medical and educational center, remains on hold. 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. Baltimore

Construction on Maryland Transit Administration’s (MTA) $2.9 billion, 14.1-mile, east-west Red Line is scheduled to begin this year and go through 2022. Construction on MTA’s $2.5 billion, 16.2-mile, east-west Purple Lineis scheduled to begin this year and go through 2020. MTA is considering LRT for the MD 5/US 301 corridor. A Southern Maryland Rapid Transit Study is under way. Washington D.C.

WMATA debuted its first 7000-series train from Kawasaki Rail Car USA on the Blue Line. WMATA has ordered 528 of the new railcars, enough to replace all 1000- and 4000-series cars and expand the size of its fleet by 128 cars. Options to purchase an additional 220 cars can be exercised if funding is committed by midyear. WMATA returned the Red Line to automatic train operation (ATO) in April. Eight-car trains will run in ATO mode initially; six-car trains will continue to operate in manual mode. A future software upgrade will allow six-car trains to return to ATO mode. The five other rail lines (Orange, Silver, Blue,Yellow and Green) are currently undergoing track-circuit module replacement projects and a return to ATO on these lines is expected in late 2017. Norfolk/Virginia Beach

The state has sweetened its funding commitment to HRT in its pursuit of a June 2015 Railway Age 35

PASSENGER RAIL GUIDE

light rail extension from Norfolk. The state’s previous commitment of as much as $155 million in matching funds will be provided; as much as $30 million in low-interest loans will be made available through the Virginia Transportation Infrastructure Bank. Charlotte

The $37 million Phase 1 of Charlotte Area Transit System’s CityLYNX Gold Line 10-mile streetcar is scheduled to open this summer. The $126 million Phase 2 is set to open in 2019. Construction continues on CATS’ LYNX Blue Line Extension. Service will begin in 2017. Chattanooga

Chattanooga DOT entered into an agreement with Cambridge Systematics Inc. for the Commuter Rail Transit Study and Implementation Plan. In April, the City Council approved a resolution allowing the city to apply for a $400,000 TIGER grant to pay for most of the $690,000 study. Cambridge Systematics will study possible routes, passenger demand and fare structure for LRT as well as whether there is enough interest to justify the estimated $35 million project. Atlanta

The East-West Phase One route of the new Atlanta Streetcar, with 2.7 trackmiles and 12 stops, opened in December 2014 with Siemens S70 LRVs. Phase One offers connectivity to the city center for MARTA, the Atlanta BeltLine and other transit options. The proposed 22-mile Atlanta BeltLine will connect to MARTA at four locations. MARTA’s proposed Red Line expansion would continue north from North Springs station, terminating at Windward Parkway. The project is ready for finalizing the EIS and project evaluation. Orlando

SunRail has won a $93 million federal grant to expand the regional rail system 17 miles south into Osceola County. Expansions south into Osceola County and north to DeLand face potential delays of at least six months due to delays in securing $126 million in federal funding assistance. SunRail says it needs $91 million to extend service to Osceola and $35 million to reach DeLand. The 36 Railway Age June 2015

two extensions would nearly double the length of the system to 61 miles.

Cleveland

Voters rejected a proposed sales tax to pay for a Tampa Bay regional LRT system and bus improvements dubbed “Greenlight Pinellas.” In December 2014, Hillsborough Area Rapid Transit, which operates the 2.7-mile TECO Line Streetcar, issued a study to explore an extension through downtown Tampa to the Marion Transit Center.

Greater Cleveland Regional Transportation Authority broke ground in April on a replacement $11.387 million station on the Cleveland-Brook Park border, near Cleveland Hopkins International Airport. GCRTA is planning to rebuild at the East 116th Street light-rail station at Shaker Blvd. The station is used by Blue and Green line trains. Construction on the $6.3 million project is expected to begin in 2016 with completion scheduled for 20 months after groundbreaking.

Fort Lauderdale

Cincinnati

In early 2014 the FTA recommended a $50 million Small Starts grant for construction of The Wave Streetcar. The grant adds to the $18 million TIGER grant received in June 2012 and will provide the remaining federal funding needed to design and construct the 2.7-mile streetcar project in downtown Fort Lauderdale. Final design will be completed in 2015. Technical specifications are being developed for the procurement of streetcars, with a delivery goal of 2017. Phase One of The Wave, costing $83 million, would run 1.4 miles and begin operation in 2016. A hybrid streetcar, using catenary and battery power, is envisioned. Fort Lauderdale’s Downtown Development Authority is weighing plans to add a second phase. Cost for both phases of The Wave is put at $142.6 million. All Aboard Florida has selected GE Transportation to supply signaling equipment for the 235-mile HrSR corridor connecting Miami and Orlando. AAF is scheduled to begin service from Miami to West Palm Beach in 2016.

Construction on the 3.6-mile first phase of the $147.81 million Cincinnati Streetcar is under way. CAF USA will provide up to five low-floor Urbos 3 streetcars. Delivery is expected by fourth-quarter 2015. The system should open in 2016.

Tampa Bay

Miami

South Florida Regional Transportation Authority/Tri-Rail’s new Miami International Airport Station opened in April as part of the Miami Intermodal Center. Buffalo

Niagara Frontier Transportation Authority is studying adding a Cobblestone District extension to its LRT. The potential of a new Bills football stadium in Cobblestone or further southeast along South Park Avenue makes the extension more of a possibility. NFTA is also studying options for extending LRT to Amherst.

Illinois

METRA is rebuilding bridges over 22 streets along the UP North Line and has substantially completed the $142 million Englewood Flyover on its Rock Island Line. METRA is now building a third bay to the bridge so it can add a third track to the Rock Island Line. METRA is taking delivery of 160 new Nippon Sharyo cars for its Metra Electric District at a cost of $585 million. METRA is also more than halfway through renovating 176 cars that were manufactured by Amerail and delivered to Metra in the 1990s. Total cost is $115 million. In February, METRA approved one of the first components of its plan to modernize rolling stock, authorizing a $91.1 million contract to rehabilitate 41 locomotives with Progress Rail Services Corp. The work covers 41 EMD Model F40PH-2 and F40PHM-2 locomotives. Last fall METRA announced a $2.4 billion modernization plan, which seeks to purchase 367 new cars and 52 new locomotives and rehabilitate 455 cars and 85 locomotives. The plan also will cover PTC; Metra awarded a $79.9 million contract to Parsons Transportation to serve as PTC system integrator. Chicago

The Chicago Transit Authority is moving forward with its Red and Purple Modernization (RPM) to completely rebuild and add passenger capacity to the

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northern section of the Red Line, as well as the Purple Line north of Belmont. In February, CTA secured a $120 million TIFIA loan for Blue Line improvements between the downtown Loop and Chicago O’Hare International Airport. In addition, the four-year, $408.7 million Blue Line renovation (“Your New Blue”) will be supported by $16 million in TIGER funds awarded in 2012, with the remainder coming from state, local and other sources. The project represents the largest upgrade of the Blue Line since it was extended to O’Hare in 1984. CTA began construction on three major infrastructure projects as part of the new Loop Link initiative that will redevelop and modernize transportation from Union Station to Millennium Park. The Loop Link is scheduled for substantial completion by the end of 2015. The $203 million Wilson project is modernizing the 91-year-old stationhouse and the station’s more than 100-year-old track structure. About 2,200 feet of elevated tracks, signals and supporting infrastructure will be relocated and reconstructed, eliminating slow zones. Amtrak committed $12 million to continue renovations of Chicago’s 90-year-old Union Station. The city is working with the federal government, the state of Illinois, Metra and Amtrak to facilitate an overhaul that will require a multi-year, $500 million investment. The FRA has awarded a $3 million grant to the Illinois DOT for use in its Chicago Union Station Terminal Planning Study. Detroit

Construction on the 3.4-mile M-1 streetcar along Woodward Avenue began in July 2014. M-1 RAIL, which expects to be operational in 2016, completed its first phase in November. Construction Manger/General Contractor Stacy and Witbeck, Inc., in partnership with the Michigan DOT and local suppliers, is performing the work. M-1 RAIL has entered into a $30 million contract with Inekon for six streetcars. Kenosha

Former Kenosha Mayor John D. Bilotti has joined with others to form a group Called “Common Sense Kenosha” aimed at stopping the planned $11 million expansion of Kenosha Area Transit’s 38 Railway Age June 2015

(KAT) 1.7-mile streetcar. The line links the city’s Metra rail station to a marina and two parks along Lake Michigan.

plan to create a regional, integrated transit system. Completion is slated for fall 2015. Opening is scheduled for 2016.

Milwaukee

St. Louis

The City of Milwaukee Common Council has approved the $124 million Milwaukee streetcar project. Final design is under way; the first construction contracts could be let this summer. The Department of Public Works issued an RFP in April for four new streetcars. The project will consist of an initial 2.5-mile route. Groundbreaking will occur by early 2016, with operation expected by 2018.

Rehabilitation of the historic Eads Bridge on the 46-mile MetroLink LRT is expected to be completed this fall. Construction on the 2.2-mile Loop Trolley project began in March. The $43 million project will link University City and Forest Park in St. Louis. The service will use two GOMACO vintage trolleys purchased in 2013 by the St. Louis Loop Trolley Transportation Development District from Portland, Ore.’s TriMet. Completion is scheduled for mid-2016. Downtown STL, Inc.seeks a streetcar connecting Downtown, Midtown, Central West End, and Skinker-DeBaliviere. Cost estimates range up to $270 million.

Minneapolis/St. Paul

The $957 million, 11-mile Central Corridor LRT, the Green Line, opened in June 2014, connecting Minneapolis and Saint Paul. A future extension of the Green Line, Southwest LRT, is a 15-mile route between Eden Prairie and downtown Minneapolis. It will be part of an integrated system of transitways, including connections to the METRO Blue Line, the Northstar Commuter Rail Line, bus routes and proposed future transitways. Total project cost was placed at $1.65 billion but ground test results and project delays have increased the cost to $1.99 billion. The line will not open until 2020. METRO is also planning a Blue Line extension that will operate northwest from downtown Minneapolis. The proposed alignment is primarily at-grade and will have up to 11 new stations in addition to Target Field Station and about 13 miles of double track. It will connect Minneapolis and the region’s northwestern communities with the Green Line, BRT, the Northstar system and buses. Omaha

The USDOT issued $15 million in federal grants to the Transit Authority of the City of Omaha for the eight-mile BRT portion of its Preferred Transit Alternative, which also includes a 3.22-mile streetcar line. Kansas City

Construction on the two-mile Downtown Kansas City Streetcar project is under way. The route will primarily run along Main Street connecting Kansas City’s River Market area to Crown Center and Union Station. The starter line is the first step in a longer-range

Nashville

The Regional Transportation Authority of Middle Tennessee has launched the Northwest Corridor Transit Study to evaluate options between Clarksville and Nashville. RTA and the Nashville MTA are currently undertaking a strategic planning process. In the 2035 Regional Transportation Plan, adopted by the Nashville Area MPO, long-range plans call for a new commuter rail line in the region’s northwest corridor to connect Clarksville and Nashville. Memphis

A proposed $404 million, 8.2-mile new line from Downtown Memphis to Memphis Airport remains under review and funding has not yet been secured. Little Rock

A 2.5-mile extension to Little Rock National Airport on Central Arkansas Transit Authority’s 3.4-mile River Rail streetcar system remains on hold. New Orleans

Construction on the North Rampart Street/St. Claude Avenue Streetcar Expansion project began in January. The project is part of the RTA’s French Quarter streetcar expansion. The first phase is a 1.6-mile line between Canal Street and Elysian Fields Avenue. The Cemeteries Transit Center project is the final phase of the Canal Streetcar Line.

PASSENGER RAIL GUIDE

In September, Baton Rouge was approved for a $1.8 million TIGER grant to aid in the city’s streetcar plan. The proposed 3.1-mile route would serve Louisiana State University. Design specifications are expected to cost $2.76 million.

Last July, San Antonio Mayor Ivy Taylor called for the $32 million that the city had pledged for VIA Metropolitan Transit’s streetcar to be redirected. VIA would still have had the funding to build part of the 5.9-mile, $190 million downtown system, but in September, VIA’s board of trustees agreed to shift $92 million from the streetcar project to other city-wide projects. The Transportation Policy Board of El Paso’s MPO approved $97 million in state funds for a 4.8-mile streetcar project that would run north from Stanton Street in Downtown to the University of Texas at El Paso. The proposed vehicles are PCCs.

Oklahoma City

Denver

In September 2013, the Oklahoma City Council approved a 4.5-mile streetcar as part of the city’s MAPS 3 project. Known as the “Zeta,” the route connects the Downtown Transit Center, Automobile Alley, a future intermodal hub, a future MAPS 3 Convention Center, Bricktown and Midtown and runs a block from the future MAPS 3 Downtown Public Park. The budget provides for construction of five to six miles of track.

Denver Regional Transportation District (RTD) continues to make progress on its FasTracks program, which is adding 122 miles of LRT and regional rail. The 22.8-mile East Rail Line, connecting Denver with Denver International Airport, is scheduled to open in 2016. The 10.5-mile I-225 Rail Line, connecting Aurora to the East and Southeast Rail Line; the 11.2-mile Gold Line, connecting Denver and Wheat Ridge; and the first 6.2-mile segment of the 41-mile Northwest Rail Line, connecting Denver and Westminster, are all scheduled to open in 2016. The North Metro Rail Line, connecting Denver, Commerce City, Thornton and Northglenn, is scheduled to open in 2018.

The project proposes to extend the streetcar to Canal Boulevard. The FTA, in conjunction with the RTA, has prepared an Environmental Assessment. It is anticipated that a Finding of No Significant Impact will be issued. Baton Rouge

Dallas/Fort Worth Metroplex

Dallas Area Rapid Transit’s third-phase Orange Line extension, which serves Dallas/Fort Worth International Airport opened Aug. 18, 2014. Extension of DART’s Blue Line to the University of North Texas, which will add three more miles, broke ground in October. Two stations, Camp Wisdom and UNT Dallas, will be added. Completion is scheduled by 2016. Dallas streetcar service resumed April 13, 2015, after a near-50-year absence, on a 1.6-mile route from Union Station to Oak Cliff Methodist Dallas Medical Center. This marks the first phase of Dallas’ modern streetcar system. Project development was kick-started by $26 million in TIGER grants. The second phase, which extends to Oak Cliff’s Bishop Arts District, is expected to be completed by early 2016. The third segment, currently in planning, will expand the line to the Kay Bailey Hutchison Convention Center and Omni Dallas Hotel. Denton County Transportation Authority’s A-train is a 21-mile regional rail system that uses Stadler DMU cars to connect Denton and Dallas counties. Passengers can transfer to DART LRT and Trinity Railway Express trains. TEX Rail, the 27-mile commuter rail project being developed by the Forth Worth Transportation Authority, will be the next passenger rail service coming to Tarrant County, with service projected to have more than 15,000 daily riders using 10 rail stations at full buildout. The line will begin in downtown Forth Worth at the existing TRE T&P Station, continuing across Northeast Tarrant County to Grapevine and into DFW International Airport. TEX Rail has received a Record of Decision from the FTA and FAA that could lead to construction in 2016. Houston

MetroRail has reached the testing phase for its 3.3-mile Green (East End) Line, 6.6-mile Purple (Southeast) Line and Downtown LRT. Opening day on the East End Line occurred in May. Austin

Voters rejected the $1.4 billion, 9.5-mile Highland-Riverside urban rail plan claiming it was “seriously flawed.”

Salt Lake City

For a full report on Utah Transit Authority programs, see p. 52.

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PASSENGER RAIL GUIDE Albuquerque

The Rio Metro Regional Transit District is developing a plan for transit’s future role in the region. Initial strategies are expected to be finalized in fall 2015. Currently, Rail Runner Express spans 100 miles. Herzog Transit Services handles operations and maintenance. Phoenix/Tempe

Valley Metro has begun planning, design and construction of 40 additional LRT miles, which will be completed by 2034. This includes the 3.1-mile Central Mesa Light Rail Extension, scheduled to be completed this year. Construction on the 1.9-mile Gilbert Road Extension is expected to start this year, with operations scheduled for 2018. The 3.2-mile first-phase Northwest Light Rail Extension is expected to open in early 2016. Northwest Phase II will eventually expand service west toward I-17 and is slated to open in 2026. In June 2014, the Tempe City Council supported a recommendation for a

three-mile Tempe Streetcar. Capital costs are estimated at $175-$200 million and will be funded using regional Proposition 400 funds, federal grant dollars, and other potential sources. Construction is expected to begin in spring 2016 with project completion slated for fall 2018. Tucson

The $196 million Sun Link streetcar line opened to the public in July 2014. The project is part of the $2.1 billion, 20-year Regional Transportation Authority plan. Streetcars were supplied by Oregon Iron Works/United Streetcar in Portland. Honolulu

Honolulu Area Rapid Transit has completed the first two miles of elevated guideway for the $5.16 billion Phase 1 of the 20-mile, 21-station metro scheduled to open in 2017. San Diego

San Diego MTS and neighboring Tijuana have revived plans for LRT service

spanning the U.S.-Mexico border. The Blue Line, MTS’s original LRT debuting in 1981, stops just short of the border at San Ysidro. In January, MTS introduced its new fleet of low-floor Siemens LRVs, part of a $600 million effort to modernize the entire system. Construction on the $1.2 billion, 11-mile Mid-Coast Trolley is anticipated to start in late 2015, with service beginning in 2019. The San Diego Association of Governments (SANDAG) is working with North County Transit District to construct approximately $1 billion in improvements along the 60-mile San Diego segment of the 351-mile Los AngelesSan Diego-San Luis Obispo (LOSSAN) corridor over the next 20 years. The enhancements are part of a package of improvements within the North Coast Corridor. In May, SANDAG opened 5.2 miles of new double-track at two locations along the LOSSAN corridor. SANDAG is working with NCTD and MTS to add a second, 1.1-mile main line to the north from the Sorrento Valley Station. This project began construction in February 2014 and is expected to be completed in 2015. SANDAG is also adding approximately three miles of second main track between the Sorrento Valley Station and Miramar Road in San Diego. The environmental process is expected to be completed in 2015. Los Angeles

Los Angeles County Metropolitam Transportation Authority’s 10-mile Crenshaw/ LAX Transit Corridor Light Rail Project will provide service to Inglewood and LA’s Crenshaw Boulevard neighborhood, linking the existing Green Line and the new Expo Line.The Foothill Gold Line from Pasadena to Azusa will be completed in September 2015. Completion of the Azusa to Montclair segment will cost $1 billion. No funding has been secured for this segment of the extension. The $1.37 billion, 1.9-mile Regional Connector Project will extend from Metro Rail’s Little Tokyo/Arts District Station to the 7th St/Metro Center in downtown LA, allowing access to the Gold, Blue, Expo, Red and Purple lines. Completion is expected by 2020. In November, Metro broke ground on its Purple Line Extension, which will extend westward for about nine miles 40 Railway Age June 2015

PASSENGER RAIL GUIDE

with seven new stations. The first section will add stations at Wilshire/La Brea, Wilshire/Fairfax, Wilshire/La Cienega and is scheduled for a 2023 completion. Anaheim

The proposed 3.2-mile streetcar that would serve Disneyland has come under criticism for its nearly $30 million price tag. The FTA claims the project is a poor candidate for its New Starts program, which local officials are aiming to tap to help pay for half the costs. As well, resentment has arisen over the route’s perceived “catering to Disneyland.” Santa Ana

The $250 million OC Streetcar project serving Santa Ana and Garden Grove has progressed with both city councils approving plans. The project received environmental clearances from the FTA. Expected to be partly funded by the county’s half-cent tax for transportation improvements, the project was recently accepted into the development phase of the FTA’s New Starts program, making it a candidate for funding. The Orange County Transportation Authority will design, build and operate OC Streetcar. Up to seven streetcars are planned to run along the route, stopping at 12 stations. Service is scheduled to open in 2019. San Bernardino

In February, the San Bernardino Associated Governments (SANBAG) received the Notice of Determination (NOD) of its nine-mile, $242 million Redlands Passenger Rail Project Final EIS/EIR, allowing the project to be cleared for final design and construction, which is expected to begin in late 2015. Operation is slated for 2018. San Jose

The $2.3 billion, 10-mile first phase of the Santa Clara Valley Transportation Authority’s BART extension through Milpitas into the Berryessa district of north San Jose is expected to open in 2018. The BART Silicon Valley extension will be in service by 2017 or sooner. San Francisco Bay Area

Construction progresses on the San Francisco Municipal Transportation Agency’s (Muni) $1.3 billion Central Subway

project to extend LRT underground 1.7 miles north to Stockton and Clay streets. The line is scheduled to open in 2019. Muni will more than double its fleet of LRVs in 2016 with addition of 175 new S200 SF LRV cars from Siemens under a $648 million contract. Options are in place for an additional 85 cars, bringing the total to 260. Construction of BART’s $890 million, 5.4-mile extension from Fremont to Warm Springs is targeted for a fall 2015 completion. Bombardier will build BART’s Fleet of the Future; the first new cars will enter service in fall 2016. A rigorous state audit reaffirmed that BART is facing $9.6 billion in capital needs, potentially affecting the reliability of rail service if additional revenue isn’t secured. The audit reports BART has taken recent steps to improve its process for planning capital improvements and has already begun work to secure funding and identify potential future funds. BART faces cash flow problems for each of its Big Three capital projects: 775

new railcars, a new train control system and an expanded maintenance facility. In addition, BART has identified more than $5.6 billion in capital projects needed to repair or replace infrastructure to maintain a state of good repair and to expand the system. The Caltrain Board of Directors authorized the release of the Peninsula Corridor Electrification Project Design Build RFP, the next step in the $1.5 billion project to electrify the Caltrain system. Electrification is expected to be operational in late 2020. Progress continues on the first phase of Sonoma-Marin Area Rail Transit’s Rail & Pathway Project. Phase 1 SMART passenger service from Airport Boulevard in Santa Rosa to downtown San Rafael begins in late 2016, with pursuit of funding for the Larkspur Extension in the works. Initial on-track vehicle testing will take place at TTCI prior to extensive testing on the new SMART tracks during 2015. Testing will include full implementation of PTC.

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PASSENGER RAIL GUIDE Stockton

Altamont Corridor Express is looking at approximately $950 million in improvements, which includes adding capacity to the existing Union Pacific right-ofway to expand and increase ACE diesel train service. The San Joaquin Joint Powers Authority (SJJPA) took over responsibility of managing the San Joaquin intercity passenger rail service (operated by Amtrak) on July 1, 2015. Sacramento

California’s Sacramento Regional Transit District has activated catenary along the Blue Line to Cosumnes River College light-rail extension, currently under construction. The 4.3-mile, $270 project, which will extend LRTl south from the Meadowview Station to the new Cosumnes River College Station, is expected to open in September 2015. Portland

TriMet’s $1.49 billion, 7.3-mile LRT MAX Orange Line, which will connect

Portland State University and inner Southeast Portland to Milwaukie and Oak Grove in north Clackamas County, is scheduled to open in September 2015. LRT is being considered to improve transit in the corridor that runs northsouth from Downtown Portland to Sherwood and east-west from Lake Oswego to Beaverton. In 2015, TriMet will be making upgrades to stations and pedestrian crossings along the MAX Blue Line. Portland Streetcar’s “Complete the Loop” project, connecting streetcars to the TriMet Portland to Milwaukie Light Rail Bridge on both sides of the river, is slated to open this September in conjunction with the opening of the Orange Line. Seattle-Tacoma

Sound Transit’s $2.8 billion, 14-mile East Link LRT extension to downtown Seattle, Sea-Tac Airport and the University of Washington is in the final design stage. Start of service is targeted for 2023.

The Federal Way Link Extension project will extend LRT from the future Angle Lake Station at South 200th in SeaTac, now under construction, to Kent/Des Moines by 2023. The project also develops a plan for extending LRT to the Federal Way Transit Center when additional funding is secured. The corridor is about 7.6 miles long and parallels SR 99 and Interstate 5. ST is preparing to extend light rail from Northgate to Lynnwood by 8.5 miles. The project is targeted for 2023. Construction continues on ST’s 4.3-mile Northgate Line extension, connecting the Northgate, Roosevelt and U District neighborhoods to downtown Seattle and the airport. The $2.1 billion project is expected to open in 2021. Construction continues on ST’s 1.6-mile South 200th Link extension, connecting the current Sea-Tac Airport Station to South 200th Street in the City of SeaTac. The $383 million project is expected to be completed by 2016. ST continues construction of a

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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 through the most densely populated residential and employment area in the Central Puget Sound region. Service is expected to begin in 2016. Voters approved Sound Transit 2 in 2008, which included funding to explore expanding Tacoma Link. The project, included in the FTA’s proposed 2016 budget for a $74.99 million Small Starts grant, is in environmental review. Vancouver

Translink’s 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 $1.4 billion project is targeted for completion in the fall of 2016. Edmonton

Edmonton Transit System is overseeing a public-private partnership (3P) effort to

advance the first C$1.8 million stage of the Valley Line LRT project, running from Mill Woods to Lewis Farm, serving the city’s southeast quadrant. Edmonton has also completed its 2.8-mile North extension, running from Churchill Station to the Northern Alberta Institute of Technology. The line commenced service late last year. Calgary

Calgary Transit in late 2013 placed a C$192 million order for 60 new S200 LRVs from Siemens, an increase of 10 from previous plans to acquire 50. The new cars are now arriving. ONTARIO, CANADA

Ontario’s Greater Toronto and Hamilton Area (GHTA) has entered into a major growth phase. Metrolinx has launched “The Big Move: Transforming Transportation in the GTHA.” Encompassing new projects that amount to about $50 billion over the next 25 years, Metrolinx plans to build more than 700 miles of rail tran-

sit, more than triple what exists now. Metrolinx in 2014 issued an RFI spanning a range of propulsion options for future GO Transit equipment, including EMUs, and electric and dualpower locomotives. The RFI sought responses by March 2015. The agency has been criticized for not committing to electrification of the GO Transit system, including a decision to initiate DMU Union Pearson Express service linking Toronto Union Station and Lester B. Pearson International Airport, instead of electrifying the new line, set to open this year with DMUs. Any commitment to electrifying GO Transit lines, a 10-year endeavor, is estimated to cost at least C$1.8 billion. Dual-power locomotives could be used if GO Transit electrifies portions of its rail network. Metrolinx says its goal is to electrify GO lines to provide all-day, two-way service across the network, with 15-minute frequencies in core areas, a component of the C$13 billion Regional Express Rail (RER) project. At the heart

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of RER is the SmartTrack proposal, which involves using GO Transit’s Kitchener and Stoufville lines to create a 33-mile, 22-station east-west electrified route providing express service across the GTHA. The project could be completed within seven years using $C2.5 billion in funding from the city of Toronto. The Province of Ontario has announced that construction will proceed on the 6.83-mile Finch West LRT. Work would begin in 2017, with completion scheduled for 2021; estimated cost is C$1.2 billion. Finch West will link the Toronto Transit Commission Finch West subway station, on the Spadina Subway northern extension (due to open in 2017) with Humber College. The alignment will be surface, except for a short tunnel section at the subway station. Bombardier Flexity LRVs, ordered as part of a procurement for the under-construction Eglinton Crosstown LRT, will protect the service. These vehicles are similar to the TTC’s 204 new low-floor Flexity streetcars for Toronto, the first of which entered into service in early 2015. The 12-mile Eglinton Crosstown is scheduled for a 2020 opening. The Toronto City Council recently approved an extension to the Bloor-Danforth Subway, running northeasterly about five miles from Kennedy Terminal to Agincourt. This is expected to open by about 2025. It will replace the automated Scarborough Rapid Transit, and is the only heavy rail project currently on the drawing board in Toronto. Ontario Province will be covering the entire cost of a 14.2mile, $1.6 billion LRT connecting the Port Credit (Mississauga) and Brampton GO Transit rail stations, Transportation Minister Steven Del Duca confirmed in April. When its first stage opens in 2017, the Region of Waterloo’s Kitchener-Waterloo ION LRT system will be among the first to open in Ontario since the 1970s. The C$818 million twostage project will bring light rail to the Waterloo Region, which includes the cities of Cambridge, Waterloo, and Kitchener. Stage 1 is a 22.4-mile corridor that features 11.8 miles of LRT linking the growing urban cores of Kitchener and Waterloo, plus 10.6 miles of “adapted bus rapid transit” (aBRT) connecting the southern terminus of the LRT system in Kitchener to Cambridge. In Stage 2, aBRT service will be converted to LRT. The B-Line is a planned 8.3-mile, 17-station LRT running along Main Street and King Street in downtown Hamilton, and connecting McMaster University and Eastgate Square. A Metrolinx-funded study is currently under way; Ontario Province has announced that it will fully fund the project’s $1.3 billion cost. Montreal

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Exclusive of rolling stock, C$1 billion will be invested in the Société de Transport de Montréal (STM) Métro during the next decade. In 2013 a consortium of Bombardier and Alstom 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. Agence Métropolitaine de Transport now owns the 21-mile Deux-Montagnes Subdivision. Its five-line system will grow once work on the C$400 million, 36-mile Train de l’Est line, which will link Central Station with 11 new stations in northeast Montréal, is completed. AMT is using Bombardier dual-power locomotives and Multilevel cars. The C$386 million, 160-car Multilevel order has boosted system capacity 70%. RA

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Ballast betterment

Suppliers continue their R&D efforts to provide improved ballast By MISCHA WANEK-LIBMAN, Engineering Editor maintenance solutions.

ptimizing a ballast maintenance program requires equipment with improved reliability, expanded versatility and enhanced productivity. Suppliers are ramping up their efforts to deliver equipment that ensures ballast maintenance requires less time, but delivers maximum benefit. Brandt Brandt

Road Rail Corp. developed the RTB-130 hi-railed backhoe to meet the needs of small maintenance projects with “a stable, versatile, reliable and productive platform.” The RTB-130 is mounted on a John Deere 710 base chassis and powered by a 130-hp engine and highcapacity hydraulics to ensure maximum power is delivered to its varied attachments. The company says reliability has also been improved on the Brandt Rail Tool with a newly engineered wheel axle, in addition to other upgrades to ensure a longer working life. Brandt says it is aiming to help railroads accomplish more tasks with less equipment, less labor, and less track time.

BTE No matter the situation or type of ballast, Ballast Tools Equipment (BTE) says it “has a machine and attachments to handle any situation,” but points to its BTE-312 Hi-Rail Excavator as being one of the most versatile products on the market. Matt Weyand, BTE engineer, explains the BTE-312 series’ ability to travel while undercutting helps improve productivity and safety: “A spot problem can be cleaned up and rebuilt by a single machine, including undercutting, refilling, grading and tamping, all while working on or off rail. The 312 has ample

power to effectively undercut a spot problem in the ballast, and rebuild the site, fast, allowing more repairs and resulting in better overall track condition and safer conditions for both a crew and the railroad. And we didn’t stop there; BTE built a whole system of machines, designed around our attachments, including undercutters, tampers, cribbing buckets, tie heads and tie handlers, all designed to be the best in quality, versatility and value.” GREX Georgetown

Rail Equipment Company (GREX) says dealing with projects where traditional ballast delivery methods are insufficient requires improved maintenance solutions, such as its DumpTrain® and DumpTrain for Curves™. “Whether the project calls for stockpiling ballast, repairing a washout or laying base material for adjacent track construction, the DumpTrain is the best tool for the job,” explained Greg Grissom, vice president engineering. The first-generation DumpTrain utilizes a single belt that runs the length of the train, carrying material from each car as it is unloaded to the main stacker for delivery. According to GREX, the original DumpTrain’s only limiting factor is the inability to unload in significant curvature, which is where the second-generation DumpTrain comes into play. Not only can the second-generation DumpTrain unload in curves, but delivers material car to car allowing the user flexibility in the creation of custom sized trains. GREX also reports developments in ballast inspection with its BallastSaver®, which can be integrated with the Aurora® tie inspection technology allowing for simultaneous tie and ballast assessment at speeds greater than 25 mph. June 2015 Railway Age 47

ballast betterment Harsco Rail Steve Bolte, director of North American sales for Harsco Rail, says railroads turn to the company’s Spreader Ditcher to reduce the time it takes to clear a nd re-profile ballasted tracks. He notes that the machine produces a correct track roadbed section by cutting fouled ballast from the ends of ties and carrying, distributing and plowing clean ballast on the track. The Spreader Ditcher was first introduced in the 1960s and underwent a redesign two years ago. Recently, the Spreader Ditcher “has been instrumental in digging out from the major winter storms across the northern states,” notes Bolte. “The Spreader Ditcher will be sure to catch your attention if you see it on the track. It’s a sizably distinct machine that assists railroads with their ditching, draining and plowing maintenance requirements.” HRSI The G.P.S. Ballast Train Fleet offered by Herzog Railroad Services, Inc. (HRSI) is under constant development because the company says it “is not satisfied with the status quo.” Circuit board and unloading software is developed using the company’s GPS train simulator. HRSI notes that every board and wire is tested and retested in its Ballast Train Simulator before it is installed into its train fleet. At the end of 2014, HRSI finished replacing its ballast fleet’s GPS antennas with its SMART/P.L.U.S. Inertial System and completed tunnel dump testing. HRSI says utilizing the SMART/P.L.U.S. Inertial System “virtually eliminated skips during dumps, has cut down instances of GPS loss to almost nothing and allows the ballast fleet to dump in tunnels.” Progress Rail The

Kershaw Division of Progress Rail Services Corp. recently introduced the Kershaw Model 4600 Ballast Regulator, “which utilizes strategic component location and a cab-forward design offering enhanced visibility and improved operator ergonomics,” the company says. Kershaw’s newest entrant is the Model 66 One Pass Ballast Regulator. The machine was designed to provide full one pass ballast regulating behind high-speed production tampers. While the Model 66 One Pass Regulator was designed for high speed, it can operate as a conventional ballast regulator when required. The machine can also be equipped with a ballast hopper feature that allows the operator to transfer ballast to areas that require additional ballast. Ballast cleaning and ballast reclamation is another area where Kershaw has been actively working with customers. Kershaw recently delivered a new KSC2000 High Speed Shoulder Cleaner that is capable of cleaning the shoulder ballast, screening and spoiling the waste and returning the cleaned ballast back onto the shoulder. The company’s equipment leasing subsidiary, Progress Rail Equipment Leasing, has a full fleet of ballast maintenance equipment that is available for customized short-term rental or long-term leases.

Railway Age

June 2015

Knox Kershaw Knox Kershaw Inc. (KKI) released the KBR 860 ballast regulator last summer to replace the older KBR 850 and KBR 875 models. KKI notes the 860 “features better visibility, a new wing structure with thicker grader blades to provide extended wear and a clean roof design, which is not only safer from a maintenance standpoint, but also lowers the machine height to facilitate shipping.” The company also upgraded the engines of the KBR 860 and KBR 925 to a 260 hp engine and offers LED lights standard, as well as providing side-mounted A/C for safe and easy access. Loram Loram Maintenance of Way, Inc., is investing in research and development to enhance the productivity of its High Performance Shoulder Ballast Cleaners, Railvacs, Track Lifters, Track Undercutters and Badger Ditchers. Loram says it sees an increase in utilizing ballast equipment as a part of system work gangs in major maintenance and rehab projects. The company notes that coordinating this equipment with work gangs and other track rehabilitation equipment is optimizing productivity of the equipment, work gangs and outcome of rehabilitation projects. “Loram is investing in technology, equipment and services to get more work completed in less time. Addressing ballast maintenance on a more frequent, preventive cycle allows our customers to keep more of their system maintained and less time spent on trouble spots,” says John Simmons, marketing specialist. Miner

Miner Enterprises, Inc., says it recently improved the performance/life cycle, of the linear actuators and electrical systems used in its Miner Electric AggreGate®, which allows independent operation of the car from anywhere within a ballast train. Miner AggreGate is available in pry bar manual, push button or remote control operations using pneumatic or electric power to operate the gates. “Miner has been working on ways to simplify the application of the Aggregate Systems,” says Chris Gaydos, manager mechanical engineering. “We are making these changes to help carbuilders and car shops streamline the applications and reduce labor costs.” NMC Railway Systems NMC

Railway Systems will introduce the Cat® Hi-Rail 420 and 430 Backhoes to meet the need for an all-in-one ballast maintenance machine. NMC says the machines “are equipped to handle the demands of spot work and offer flexibility with a variety of attachments that include a six-foot undercutter bar with bi-directional chain, two-motor ballast tamper and a tie inserter with dual wood/concrete pads.” NMC continues to expand its in-field support for all Cat m/w machinery repair, citing the increased demand for on-site repair, and notes the high demand for hi-rail machines that can access remote track, but can also work off-track due to shorter track windows.

HOCHLEISTUNG I PRÄZISION I ZUVERLÄSSIGKEIT

HIGH-CAPACITY I PRECISION I RELIABILITY

Leading the Way

www.plasseramerican.com

Decades of research, development and technological innovations, working in partnership with North American railroads, has resulted in highly productive and reliable track maintenance machinery. Maximum track quality, minimum track occupancy and increased return on investment are a reflection of Plasser´s commitment to providing the latest technology and solutions for today´s m/w challenges. Plasser American – Your partner for life.

ballast betterment Nordco Nordco

Inc.’s recently redesigned HST Tamper, is now within the legal width for non-permit trailering on most highways. Nordco also continues to grow its ballast fleet with the development of the XL5-T and XL5-R, a road-ready tamper and regulator that can be hauled instead of trailered. Both the XL5-T and XL5-R can be hooked to any standard tractor for hauling between sites, and the machines load directly from road to rail at any crossing. The company also notes that the XL5-T also features Nordco’s new Absolute Displacement Vibrator that has been developed and tested for increased reliability.

Plasser American Plasser American

says its machines “are designed to work and travel at higher speeds while combining multiple work processes to help railroads reconcile tight work windows and greater maintenance requirements due to increased traffic.” Plasser’s 09-3X CW Dynamic Tamping Express has a new tamping unit design that allows for seamless changeover between concrete and wood ties. The machine also offers continuous action leveling, lifting, lining and tamping with an integrated dynamic track stabilizer. Integrating Plasser’s new tamping unit with its Automated Tie Locating Analyzing System and Automated Tamping Tool Adjustment allows the 09-3X CW Dynamic to detect tie

spacing and adjust the tamping units and tools to tamp three ties or one tie automatically. Plasser first introduced the RM-802 high-speed ballast undercutter-cleaner in 1995 utilizing the pre-dumped ballast concept “resulting in much higher production rates.” The company says the next generation of this machine includes an FRM-802 shoulder cleaner to pick up and clean the shoulder ballast, which is then mixed with the new pre-dumped ballast that has been picked up by the Ballast Pick-Up Unit and returned to the RM-802 Undercutter, where it is deposited back into the track behind the cutter bar while the track is still suspended in the air. RCE Rail Construction Equipment Company (RCE) says it

can now supply the 135G, 245G, 250G and 350G excavators with undercutter bars.“By increasing these options, our customer base can perform undercutting with all our models of hi-rail or standard excavators,” explains Dennis Hanke, sales manager. RCE, which is continuing to offer all of its track maintenance equipment either for sale, lease or rental, says that its Railavator is “a highly versatile option that can be used in many maintenance applications including undercutting, pulling rail, cutting brush, craning, tamping ties, or just digging and trenching.” RA

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 50

Railway Age

June 2015

Only the ballast you need. Right where you need it. When you need it.

Ballast programs can be an inexact science. GREX developed the answer. With BallastSaver®, our comprehensive ballast assessment and delivery solution starts by scanning your ballast profile using cutting edge lidar technology. We analyze the results to determine deficiencies you can target for new ballast. That data feeds directly into our GateSync® system for precision ballast delivery using automated gates on your ballast cars. Together BallastSaver and GateSync minimize the materials and manpower required to get the job done. That’s efficiency that really adds up.

GREX Solutions

Translating Track Maintenance Into Savings and Safety

Contact GREX to discover what our technology can do for your railroad.

512.869.1542 www.georgetownrail.com

Frequent service and good connections have contributed to ridership growth more than double the national average.

Salt Lake City success

ow that its FrontLines 2015 program, a group of five Utah Transit Authority rail projects that added 70 miles to the existing 64-mile rail network, has been completed $300 million under budget and two years ahead of schedule, UTA’s main focus is on increasing frequency of service and better connections. And it’s well on its way. UTA says its ridership growth more than doubled compared to the national average in 2014—2.17% vs. 0.95% the previous year. Ridership on its FrontRunner regional rail service increased by 15%. Overall, UTA saw a record ridership with more than 45 million boardings in 2014. UTA attributes this success, in part, to last year being the first full year of operation for new rail lines opened under FrontLines 2015, as well as its S-Line streetcar in the Sugarhouse neighborhood, which opened in December 2013. Projects under FrontLines 2015 included the Mid-Jordan TRAX Line (light rail), running through Murray, Midvale, West Jordan and South Jordan; West Valley City TRAX Line, running from South Salt Lake and West Valley City; Draper TRAX Line, extending current light rail service through 52

Railway Age

June 2015

Sandy and Draper; Airport TRAX Line, running from downtown Salt Lake City to Salt Lake City International Airport; and the FrontRunner Provo to Salt Lake City Line, offering regional/commuter rail service between downtown Salt Lake City and Provo. UTA’s record year of ridership led to the agency receiving one of the biggest awards in the public transportation industry in 2014 for its service and effectiveness. The American Public Transportation Association (APTA) named UTA the Outstanding Transportation System of 2014. “This is a great honor that would not have been possible without the dedication of UTA employees and the continued support of our riders,” said UTA General Manager Michael Allegra. “We’re pleased to be recognized for our accomplishments and confident that we’ll continue to grow, improve and provide efficient, innovative public transit for residents of the Watsatch Front.” The Outstanding Transportation System award is given to organizations in the United States and Canada that have demonstrated efficiency and effectiveness and have made exceptional contributions to the public transportation

Utah Transit Authority

Efficiency and effectiveness are the hallmark of award-winning By carolina Worrell, Managing Editor Utah Transit Authority.

Utah transit authority

industry. Three awards are given each year based on transit system size. UTA won the award in the largest category, for systems providing 20 million or more annual passenger trips. Performance, growth and safety

In addition to increased ridership, UTA set a record in 2014 for on-time performance in both of its rail-oriented modes of transportation—94.57% in TRAX light rail and 92% in FrontRunner commuter rail. UTA is moving ahead on three transit-oriented developments (TOD). In 2014, the agency broke ground on the first two phases of the Sandy TOD; Jordan Valley TOD received approval from the board and West Jordan City for the site and development plan, as well as developer financing; and the Clearfield TOD received approval from the board and the city of site master plan. Design is under way. “The building of transit oriented development is just one way the Wasatch Front can prepare for future growth,” said Allegra. “The combination of residential, retail and commercial properties with transit helps air quality, population growth and generally makes life better for those that live here. This is a new trend for our community and a catalyst for change.” Last year, UTA says, it restructured its public safety department for increased outreach and better efficiency, leading to the agency’s best safety record to date, with zero fatalities on the system in 2014. All modes were below their accident goals, including major accidents on TRAX, which were down 30%. UTA will introduce a number of service improvements that will take effect August 16, 2015. These changes include extended hours on TRAX and the S-Line and increased service on select bus routes. “UTA has a long tradition of coming in under budget due to our capable staff operating in a lean and efficient manner,” Allegra said. “This year, we achieved enough savings that we are able to invest in service beyond what we had already planned for our upcoming change day.” Integrated fare structure

In addition to service enhancements, UTA will once again offer FAREPAY discounts of up to 20% on TRAX and FrontRunner, and will add a new 40% FAREPAY discount for bus riders. UTA will also offer its popular $10 Group Pass, which allows up to four people to make a round trip on buses, TRAX and FrontRunner between 8:30 a.m. and midnight on the day of purchase. Both the FAREPAY promotion and the Group Pass special pricing will begin July 1 and run through Dec. 31. These fare promotions, UTA said, are designed to thank riders for 45 years of support and encourage them to take advantage of UTA’s new summer holiday schedule, as the agency now offers service on many holidays including Independence Day, Pioneer Day and Labor Day. “This year, as we celebrate more than four decades of service, we wanted a way to say thank you to our riders,” Allegra said. “We hope FAREPAY promotion and our new

Group Pass pricing make it more convenient for families and groups to ride UTA to events and celebrations taking place this summer.” UTA implements service changes three times per year. The Aug. 16 change will extend TRAX Sunday hours of operation to match Saturday hours and extend S-Line hours of operation to match TRAX, seven days a week. “As with its service changes, UTA staff continues to look for opportunities to introduce strategic fare products and promotions in response to emerging market opportunities and to introduce our services to new riders,” the agency said. Good hosts

UTA has been chosen to host several major transportation conferences this year, including the APTA Rail Conference and International Rail Rodeo. The APTA event is expected to bring nearly 2,000 global transit representatives to Salt Lake City, showcasing the recently completed FrontLines 2015 rail expansion program and generating millions of dollars for the local economy, the agency said. In addition to the APTA Rail Conference, UTA also hosted the Smart Card Alliance Payments Summit in February and the National Transit Institute Transit Academy in April, and will also be hosting the APTA Risk Management Seminar in June.

The American Public Transportation Association named Utah Transit Authority the Outstanding Transportation System of 2014. Allegra credits UTA’s outreach efforts for helping draw these visitors to the state. Over the past two years, UTA has invested $800,000 in travel to pursue numerous competitive funding opportunities, to learn best industry practices used by other transit agencies, and to take part in groundbreaking transit think tanks and seminars. Utah residents “see a return on that investment many times over,” Allegra said, in the form of money generated by conferences, federal transportation grants and cost-saving improvements to the UTA system. UTA’s proactive outreach efforts have already helped secure discretionary federal funding used to expand the system and bring state-of-the art technology to the region. Over the past decade, UTA has received more than $1.7 billion in discretionary and formula federal grants. The agency was able to obtain $29 million in federal Transportation Investment Generating Economic Recovery (TIGER) II funding to open the S-Line streetcar and help revitalize neighborhoods in South Salt Lake and Salt Lake City. In addition, two of UTA’s FrontLines 2015 projects, the Mid-Jordan TRAX Line and Draper TRAX Line, were built using more than $544 million in federal funds. RA June 2015 Railway Age 53

People

Meetings

High Profile: Norfolk Southern has named Alan H. Shaw Executive Vice President and Chief Marketing Officer, effective May 16, 2015. He succeeds Donald W. Seale, who retired after 39 years in management positions in NS’s marketing division. Shaw, who will report to NS President James A. Squires, joined the railroad in 1994 and has held positions in the finance and marketing departments. He served as Group Vice President for Coal Marketing and for Shaw Chemicals before being named Vice President Intermodal Norfolk Southern Operations, his current position, in 2013. Reporting to Shaw will be NS’s merchandise, intermodal and coal marketing organizations; the groups that manage shipping options such as short line connections and the transload network; real estate services; and the corporation’s industrial development services for companies that want to locate and expand railserved businesses. “I have the highest confidence in Alan and the entire Marketing Division to continue finding effective ways for customers to take advantage of the best that rail has to offer,” said Squires.

July 12-15

Industry-Railway Suppliers, Inc.—Scott Commo promoted from Vice President to President, succeeding Ron Hobbs, who has retired. The changes were effective May 1, 2015. Parsons Brinckerhoff— Christopher Papazoglou named Senior Supervising Engineer in the firm’s New York City office, with technical and managerial responsibilities on rail design projects in the New York region. He is currently working in support of the East Side Access project. Marsha Kaiser named area manager of the Washington, D.C. office, with responsibility for leading all aspects of that operation, including business development and marketing, client relationship management and project performance. Element Financial Corp.— Harry Zander, railroad equipment finance veteran, appointed Senior Vice President Sales in Rail Finance division. He reports to President, Element Rail & Aviation David McKerroll. Canadian Pacific—Mark Erceg appointed Executive Vice President and Chief Financial Officer, effective May 18, 2015. He will replace outgoing CFO Bart Demosky, who departed from the company on May 31. 54

Railway Age

June 2015

State of Pennsylvania—Dr. Allan M. Zarembski hired to a three-month contract to assess the state freight rail network, which hosts 60-70 crude oil trains per week. AECOM—Christopher O. Ward appointed as Senior Vice President and Chief Executive, Metro New York, leading strategic growth and profitability of the Design and Consulting Services group in the New York City Metro area.

100 YEARS AGO in

( June 1915) Locomotive Stokers Another year’s experience with the locomotive stoker strengthens the conviction that it is not only accomplishing its purpose but withstands the test of continuous service with remarkable durability. Designs are being studied with the view of fixing the point of failure where repairs can be conveniently made, preferably without a road delay, and when it so happens that repairs can not be made on the road, the emergency can be met by resorting to hand firing until a terminal is reached. The theory that the parts of the stoker be amply strong and in excess of the strength of the engine has its advantages.

American Railway Development Association (ARDA) 2015 Annual Meeting Westin Denver Downtown, Denver, Colo. Email: amraildev@gmail.com; Website: www.amraildev. com/2015annualmeeting

July 13-14 Midwest Association of Rail Shippers (MARS) Summer Meeting Lake Geneva Resort Lake Geneva, Wisc. Website: www.mwrailshippers.com

Aug. 4-6 Federal Railroad Administration (FRA) 2015 Right-of-Way Fatality & Trespass Prevention Workshop Sheraton Charlotte Hotel Charlotte, N.C. Website: www.fra.dot/gov/ conference/row/register.aspx

Sept. 17-18 Railway Age Crude by Rail Conference Key Bridge Marriott, Arlington, Va., Email: conferences@sbpub. com; Website: www.railwayage. com/conferences

Oct. 4-7 Railway Interchange 2015 Minneapolis Convention Center, Minneapolis, Minn. Combines exhibits hosted by RSI, REMSA and RSSI. Technical and educational sessions presented by AREMA and the Coordinated Mechanical Associations (CAM). Website: www.railway interchange.org

Oct. 28-29 Railway Age Passenger Trains on Freight Railroads Conference Grand Hyatt, Washington, D.C. Email: conferences@sbpub.com; Website: www.railwayage. com/conferences

Products Oil Eater Tuff Rug The absorbent Oil Eater Tuff Rug is a durable flooring material that provides long-wearing durability needed to keep floors dry and safe in high-traffic areas in maintenance facilities and other areas. The product, which is available in 36-inch by 150-ft rolls, is made of 100% recycled materials with an underside that is fused via a heat and pressure process to insure a high level of absorbency while also retaining the tear resistance required. For information visit www.oileater.com or call 800-528-0334.

American Railroad Tribute Rifle

The American Railroad Tribute Rifle, made in the U.S. by Henry Repeating Arms, was created to honor those railroaders who built, connected and keep our nation running. The right side of the receiver features imagery to commemorate the 1869 driving of the Golden Spike at Promontory Summit, Utah, to complete the Transcontinental Railroad. The rifle includes a 24-karat gold-plated Jupiter locomotive behind a gold-bannered “THE LAST RAIL IS LAID” with a forward panel carrying a gold rendition of the Golden Spike next to another banner inscribed “THE LAST SPIKE IS DRIVEN.” On the left side a 24-karat gold-plated No. 119 locomotive thunders down the

line, bracketed by three gold banners proclaiming “A CONTINENT HAS BEEN SPANNED WITH TWO THIN LINES OF STEEL.” The walnut stock bears the celebrated Promontory ceremonial image, laser-etched and hand-filled, above a “PROMONTORY, UTAH, MAY 10, 1869” banner. Below, are Morse Code letters that read “DONE.” The original art was cut by hand engraver Heidi Roos and the scenes and tribute text were impressed directly through a mechanical transfer, retaining the engraved elements of the original. This heirloom rifle is outfitted with a 20-inch octagonal barrel topped with classic buckhorn sights and offered in caliber .22 S/L/LR. Visit henryrifles.com/rail to see more. To order a free catalog and decal call 800-658-0264.

RELIABLE POWER YOU CAN COUNT ON! The Turbo Blast 500’s powerful airflow is ideal for clearing large quantities of snow, ice and hard-packed snow from tracks, third rails and switches. Features: • 500 H.P • 500 MPH Air Speed

• High Efficiency Fan • Longer Work Life

Visit us at www.wausau-everest.com Made in America Mark Kreutzfeldt • Product Manager mkreutzfeldt@wausau-everest.com • 1-605-270-2602 1905 South Moorland Road • New Berlin, WI 53151

June 2015 Railway Age 55

Products Ridgetop Group rail safety improvement products detect anomalies To address growing concerns about Motion™ RailSafe™ Integrity Analysis railroad track condition, boxcars and System is tailored to the needs of the locomotive safety, Ridgetop Group has railway industry, and is composed of announced two new products to serve any number of RotoSense™ sensors, ™ a data acquisition and conditioning the railroad industry—the RotoSense Rotational Vibration Sensor and infrastructure, and advanced signal the Sentinel Motion™ RailSafe™ processing tools—including Ridgetop’s Integrity Analysis System. After patented Adaptive Remaining completing rigorous field testing of Useful Life Estimator (ARULE™)—to ™ determine the severity and location its RotoSense product at the Federal Railroad Administration (FRA)-owned of the anomalies that are detected. Transportation Technology Center The results are presented in easily (TTC) in Pueblo, Colo., Ridgetop has understood formats. The RailSafe™ confirmed the ability of RotoSense™ to system distills the sensor data into detect anomalies, including degraded actionable maintenance instructions track, cracked wheels and axles of through continuous monitoring of rolling stock. The detected signals from state-of-health (SoH) and remaining RotoSense™ are transmitted wirelessly useful life (RUL). RailSafe™ includes one to a gateway collection hub where RotoSense™ development kit along with Ridgetop’s proprietary integrity analysis further processing and analysis can be software contained in Sentinel Motion. undertaken, either on the train itself or at an operations center. Sentinel Railway Age Ad 5.7.15 HalfThe Page.qxp_Layout 1 Information: 5/15/15 10:34www.ridgetopgroup.com. AM Page 1

Pneumat Systems RailSpreader The Pneumat Systems’ hydraulicallypowered RailSpreader helps load railcars to the fullest capacity by distributing bulk materials such as DDGs, pellets, corn gluten meal and soybean meal to the outer edges of the railcar, inverting the angle of repose and spreading the bulk material evenly, allowing for maximum load-out and maximum profitability. For more information visit www.pneumat.com or call 800-458-9446.

Product Line Growth Through Innovative Design

Air Brake Hoses & Components

Castings & Fabrication

Engineering & Field Resources

Machining Services

Engineered Solutions for Over 45 Years www.stratoinc.com 1.800.792.0500

Railway Age

June 2015

the need

Yesterday Today Tomorrow...

Ad Index Company

Phone #

Fax URL/Email address

Andersons Inc The

419-891-6386

chuck_brown@andersoninc.com

APTA

410-978-9174

lriggs@ntpshow.com

Brookville Equipment Corp

814-849-2000 ext.226

814-849-2010

e_mckillip@brookvilleequipment.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

Delta Railroad Construction Inc.

440-994-2997

440-992-1311

info@deltarr.com

Element Financial Corporation

416-386-1067 x2222

lcarroll@elementcorp.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

Georgetown Rail Equipment Co.

512-869-1542 ext. 5292 512-863-0405

bachman@georgetownrail.com

Greenbrier Companies The

800-343-7188

503-684-7553

gbrx.info@gbrx.com

HARTING, Inc. of North America

847-204-4970

847-741-8257

bob.Laskowski@harting.com

Henry Repeating Arms

866-200-2354

www.henryrifles.com

Herzog Railroad Services, Inc.

816-233-9002

816-233-7757

tfrancis@hrsi.com

Infinity Rail

678-904-6300

678-904-6310

info@infinityrail.com

LORAM

763-478-6014

763-478-2221 sales@loram.com

LTK Engineering Services

215-641-8826

215-542-7676

tfurmaniak@ltk.com

Lucchini RS

+39 035 963468

+39 035 963315

f.forcella@LucchiniRS.it

National Steel Car

905-544-3317 Alan.wilson@steelcar.com

Plasser American Corp.

757-543-3526

757-494-7186

plasseramerican@plausa.com

Progress Rail Services

256-505-6402

256-505-6051

info@progressrail.com

Progress Rail Services LRS

256-505-6402

256-505-6051

info@progressrail.com

419-891-2749

Page #

7 13 27 14-15 40 3

R&W Machine Division

708-458-4200

708-458-3299

jwarner@rwmachine.com

Rail Solutions

703-922-3800

703-9228--8229

railsol@aol.com

Railquip Inc

770-458-4157

770-458-5365

sales@railquip.com

Railway Educational Bureau, The

402-346-4300

402-346-1783

bbrundige@sb-reb.com

5 24 43 29, 44, C3

Rio Grande Chemical, Ltd.

956-686-2221

956-686-8290

david.bertram@rgcx.com

RJ Corman Railroad Group

800-611-7245

859-885-7804

www.rjcorman

Siemens

800-SIEMENS

www.usa.siemens.com/transportation 37

SMBC Rail Services LLC

312-559-4800

888-4RAILCAR

sales@smbcrail.com

Strato

732-317-5406

732-981-1222 korozco@stratoinc.com

STV Inc

212-777-4400

212-529-5237

TrinityRail

800-631-4420

214-589-8623 info@trinityrail.com

V&H Truck

715-486-8800

714-387-0657

a.thoreson@vhtruck.com

Wausau-Everest, LP

800-788-6066

262-784-6720

sales@wausau-everest.com

info@stvinc.com

56 41

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 Jerry Marullo 55 Broad St., 26th Floor New York, NY 10004 (212) 620-7260 Fax: (212) 633-1863 jmarullo@sbpub.com

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

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

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

June 2015 Railway Age 57

equipment Sale/Leasing

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◆ Covered Hopper Cars – 4,650 & 4,750 cu. ft. cars with trough hatches & gravity gates. 268K Gross Rail Load. ◆ Covered Hopper Cars – 3,000 cu. ft. cars with circular hatches & gravity gates. For additional information and pricing, please contact John Goodwin phone (605) 582-8318 e-mail jgoodwin@mwrail.com www.carmathinc.com

RECRUITMENT

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

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EMPLOYMENT

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (Metro) Metro will receive proposals for RFP No. A650-2015 for Heavy Rail Vehicle Overhaul and Critical Component Replacement per specifications on file at the Office of Vendor/Contract Management, One Gateway Plaza, Los Angeles, CA 90012 (9th Floor). All proposals must be submitted to Metro, and be filed at the reception desk of the Office of Vendor/Contract Management on or before Monday, July 13, 2015, 2:00 P.M., Pacific Time. Proposals received after the above date and time may be rejected and returned unopened. Each proposal must be sealed and marked RFP No. A650-2015. A Pre-Proposal Conference will be held on Tuesday, June 2, 2015, 10:00 A.M. PST in the Training Conference Room on the 2nd Floor of the LACMTA Division 20 rail facility located at 320 S. Santa Fe Ave., Los Angeles, CA 90013. Immediately following the Pre-Proposal Conference, all attendees will be allowed to visually inspect a representative HRV. You may obtain Request for Proposals, or further information, by emailing Wayne Okubo, Director of Contract Administration at okubow@metro.net or via phone at (213) 922-7466. 5/9/15 CNS-2749922# RAILWAY AGE

Washington Utilities and Transportation Commission RAIL SAFETY SPECIALISTS POSITIONS SEE FULL JOB POSTING AT RAILWAYAGE.COM JOB BOARD

Assistant Trainmaster Grand Canyon Railway (Based in Williams, Arizona) SEE FULL JOB POSTING AT RAILWAYAGE.COM JOB BOARD

Assistant Locomotive Foreman Grand Canyon Railway (Based in Williams, Arizona) SEE FULL JOB POSTING AT RAILWAYAGE.COM JOB BOARD

June 2015 Railway Age 59

Perspective: Short Line & Regional Linda Darr

ASLRRA Safety Institute gets rolling

he American Short Line & Regional Railroad Association has embarked on an exciting and innovative safety initiative directed at continuously improving the safety culture on small railroads across the United States. Funded by the Federal Railroad Administration with the support of the 113th Congress, the Short Line Safety Institute is currently being piloted, with a projected rollout in January 2016. The Short Line Safety Institute will provide the leadership to enhance the safety culture and safety conformance of short line and regional railroads through voluntary, non-punitive partnerships between the railroads and the Institute. Training provided by the Institute will support ASLRRA member organizations— and the men and women who are on the front lines of the industry—in continually elevating the industry’s safety record. In a political climate that has increasingly seemed to turn to regulatory and legislative methods to ensuring safety, the Institute is an example of an industry taking the initiative to seek continued cultural improvement within its own ranks, and sharing that learning broadly so that all members can benefit. Since the inception of the short line industry as we know it today, safety has been at the forefront of our operations. We’ve invested more than 30% of annual revenues in infrastructure and technology to ensure safe transport of goods. The Institute is one of the most important programs we have undertaken to date. Safety has always been the number one concern of our members and this new program is designed to take that concern to a whole new level. The assessment and feedback program will heighten the intensity of the safety focus, involving short line and regional railroad staff and their management. An assessment of the stated safety culture and processes, and the actual practices 60

Railway Age

June 2015

observed will lead to recommended improvements based on industry best practices. Ongoing safety training, education, and research will be made available to all short line and regional railroad participants. ASLRRA Chairman Ed McKechnie shares this vision: “We’ve identified safety culture as a top priority for our industry and have defined it as the shared values, actions and behaviors that demonstrate

This program will put the short line industry at the cutting edge of best-in-class safety approaches. a commitment to safety over competing goals and demands. The new program is designed to ensure all small railroads share that commitment.” Recognizing the value of this new approach to improving safety, the FRA provided a $250,000 grant to ASLRRA to plan the project, to develop methods to measure the safety culture on small railroads and to evaluate the pilot project’s success. In bi-partisan legislation brought to the floor by Senator Susan Collins (R-Me.) and Senator Patty Murray (D-Wash.), the 113th Congress added its support of the Institute concept by authorizing the Secretary of Transportation to make grants available for the purpose of enabling the research, development and evaluation process to begin. Subsequently, the first session of the 114th Congress appropriated $2 million to the project. This has allowed our team the opportunity to use the funds to continue the pilot project beyond the current grant, and to plan the Institute itself.

The FRA’s Research and Development Office, the Volpe Institute and the University of Connecticut will provide support and assistance during the pilot phase, which will last through the end of 2015 and will assess the safety culture of six to twelve small railroads that carry crude oil. In January 2014, ASLRRA’s Safety and Training Committee began development of the project, and by January 2016, the Safety Institute will begin long-term programming. Over the next several months, ASLRRA and FRA will assess the effectiveness of the pilot project and make adjustments as needed to set up the Institute’s procedures and protocols. As a fully operational entity, the Institute will become an educational and training source for short line and regional railroads concerning safety culture. It will also develop a data analysis and research capability moving forward to support the industry’s evolving needs. Although it is quite early in our process, the Pilot Program team has confirmed that the evaluations have the ability to provide insightful, productive feedback to the companies that have been assessed. We are adjusting the questions and steps we’d like our assessors to implement as we move forward. We are also pleased to confirm that our members are setting their companies up for success—not only in remaining compliant, but infusing a culture of safety despite the pressures of operational challenges throughout their organizations. ASLRRA is stepping up and stepping out to inform, educate and train to industry best practices with regard to safety, without the requirement of government regulations. This program will put the short line industry at the cutting edge of best-in-class safety approaches, and we look forward to sharing the results. Linda Darr is President of ASLRRA.

Weâ&#x20AC;&#x2122;re current, are you? FRA Regulations FRA News:

Mechanical Department Regulations A combined reprint of the Federal Regulations that apply specifically to the Mechanical Department. Spiral bound. Part Title 210 Railroad Noise Emission Compliance Regulations 215 Freight Car Safety Standards 216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment 217 Railroad Operating Rules 218 Railroad Operating Practices - Blue Flag Rule 221 Rear End Marking Device-passenger, commuter/freight trains 223 Safety Glazing Standards 225 Railroad Accidents/Incidents Update 1-1-15 229 Locomotive Safety Standards 231 Safety Appliance Standards 232 Brake System Safety Standards Update 1-6-15

BKMFR

$27.95

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

Dates: This regulation was effective April 27, 2015.

Current FRA Regulations Item Code

FRA Part #

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

Update effective

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

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

228 229 230 231 237 240

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

BKCONDC 242 6-25-12

BKBSS

232 1-6-15

Each

50 or more

RR Safety Enforcement Procedures & Rules of Practice Track Safety Standards (Subpart A-F) Track Safety Standards (Subpart G) RR Workplace Safety RR Freight Car Safety Standards RR Operating Rules and Practices

27.50 9.95 8.55 9.50 7.25 9.50

8.95 7.85 8.55 6.55 8.55

RR 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 RR Safety Appliance Standards Bridge Safety Standards Qualification and Certification of Locomotive Conductor Certification

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

25 or more

14.75

13.50

Brake System Safety Standards

9.90

BKCAD

40 219

10-3-12 Drug and Alcohol Regulations in 5-6-13 the Workplace

Each

25 or more

36.00

BKSTC

233 234 235 236 238 239

9-2-14 Signal and Train Control Systems 3-9-15 10-21-14 10-21-14 1-28-14 Passenger Safety Standards 7-29-14

19.50

17.55

22.80

20.50

BKPSS

Update effective

Compliance Manuals BKINFRA BKTM

Track and Rail and Infrastructure Integrity Compliance Manual - Volume II, Track Safety Standards - Part 213 Technical Manual for Signal and Train Control Rules. - Includes Part 233, 234, 235, 236

Part 224: Reflectorization of Rail Freight Rolling Stock

49 Part 224. The FRA released this rule in effort to reduce the number of highway-rail grade crossing accidents and deaths. Softcover. Spiral bound. 45 pages.

BKRFRS

33.00 46.00

Updates from the Federal Register may be supplied in supplement form.

30.00 39.10

Reflect/Rolling Stock Order 50 or more and pay only $5.60 each

$6.25

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

$7.25

Order 50 or more and pay only $6.55 each

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

Combined FRA Regulations FRA Part #

Emergency Order Establishing a Maximum Operating Speed of 40 mph in High-Threat Urban Areas for Certain Trains Transporting Large Quantities of Class 3 Flammable Liquidsâ&#x20AC;&#x201D; FRA is issuing this Emergency Order (E.O. or Order) to require that trains transporting large amounts of Class 3 flammable liquid through certain highly populated areas adhere to a maximum authorized operating speed limit. FRA has determined that public safety compels issuance of this Order. This Order is necessary due to the recent occurrence of railroad accidents involving trains transporting petroleum crude oil and ethanol and the increasing reliance on railroads to transport voluminous amounts of those hazardous materials in recent years. Under the E.O., an affected train is one that contains: (1) 20 or more loaded tank cars in a continuous block, or 35 or more loaded tank cars, of Class 3 flammable liquid; and, (2) at least one DOT Specification 111 (DOT-111) tank car (including those built in accordance with Association of American Railroads (AAR) Casualty Prevention Circular 1232 (CPC-1232)) loaded with a Class 3 flammable liquid. Affected trains must not exceed 40 miles per hour (mph) in high-threat urban areas (HTUAs) as defined in 49 CFR 1580.3.

Railroad Safety Appliance Order 50 or more and pay only $8.50 each

$9.35

800-228-9670 www.transalert.com

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

Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN Orders over UP TO $10.00 $4.10 $8.55 25.01 - 50.00 9.80 15.70 $75, call for shipping 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 accordance with laws published by the FRA.6/15

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