MAR 2013 Railway Age Magazine by Railway Age

ailway ge R A

March 2013 | www.railwayage.com

Serving the railway industry since 1856

a railway age special reporT To congress

Keep railroads free To Keep america moving Powerful special interests want to clamp new price controls on the railroads. Over-regulation nearly wrecked the industry once. Itâ&#x20AC;&#x2122;s not a risk a recovering economy can afford to take.

passenger rail guide

RailwayAge

March 2013

visit us at www.railwayage.com Features Railway age Special Report to Congress

Passenger Rail guide

a refined grind

News/Columns From the editor

Update

Financial edge

Departments

Products

advertising index

Professional Directory

Classified

SCHAUMBURG Spaulding Rd

EOE

ELK GROVE VILLAGE

BARTLETT

Elmhurst Rd

290

North Ave

Devon Ave ROSEMONT

NCS Transfer (Mannheim Rd)

Meetings

DES PLAINES

294

HOFFMAN ESTATES

ELGIN

MOUNT PROSPECT

Golf Rd

53 ARLINGTON HEIGHTS ROLLING MEADOWS

Busse Rd

100 years ago

Prairie Stone

-N UP

SOUTH BARRINGTON

MD-N

People

Arlington Hts Rd

45 94

UP -N

Roselle Rd

Market

IKEA

Proposed Metra STAR Line Barrington Rd

industry Outlook

NCS

S NC

industry indicators

90 River Rd. (CTA Blue Line)

CHICAGO MD-W

12 64

WEST CHICAGO

UP-W

Washington St 290 355

BNS

WARRENVILLE

Butterfield Rd

56 HC

North Aurora Road

294

AURORA NAPERVILLE

S SW

95th St

Van Dyke Rd

4 Miles

6 RID

Ele

JOLIET

355

80 57

52 30

Railway Age, USPS 449-130, is published monthly by the Simmons-Boardman Publishing Corporation, 55 Broad Street, 26th Fl, New York, NY 10004. Tel. (212) 620-7200; FAX (212) 633-1863. Vol. 214, No. 3. Subscriptions: Railway Age is sent without obligation to professionals working in the railroad industry in the United States, Canada, and Mexico. However, the publisher reserves the right to limit the number copies. Subscriptions should be requested on company letterhead. Subscription pricing to others for Print or Digital only versions: $100.00 per year/$151.00 for two years in the U.S., Canada, and Mexico; $139.00 per year/$197.00 for two years, foreign. Foreign $239.00 (U.S. funds) per year/$397.00 for two years for Air mail delivery. When ordering Both Print and Digital: $150.00 per year/$227.00 for two years in the U.S., Canada, and Mexico; $208.00 per year/$296.00 for two years, foreign. Foreign $308.00 (U.S. funds) per year/$496.00 for two years for Air mail delivery. Single Copies: $36.00 per copy in the U.S., Canada, and Mexico/$128.00 foreign All subscriptions payable in advance. COPYRIGHT© 2013 Simmons-Boardman Publishing Corporation 2013. 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 10, Omaha, NE 68101-0010 or call toll free (800) 895-4389. In Nebraska call (402) 346-4740. Printed at Cummings Printing, Hooksett, N.H. ISSN 00338826

March 2013 Railway age 1

Congressional action, or inaction, can weigh heavily on the nation’s railroad future.

Renwick Rd

PLAINFIELD

On the COver

RailwayAge

From the Editor William C. Vantuono

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

CSX plays it safe with David Ragan

t’s time once again to go racing! For the second consecutive year, CSX Transportation is teaming up with a NASCAR Sprint Cup Series team to promote public safety around railroad tracks as part of its “Play It Safe” initiative. For the 2013 season, CSX is partnering with Front Row Motorsports and David Ragan, driver of the No. 34 Ford Fusion. This year’s Sprint Cup initiative follows a successful first venture into NASCAR in 2012 with Furniture Row Racing and no. 78 driver Regan Smith (who has since moved on to another team, having been replaced by Kurt Busch). Here’s the really exciting news, at least to this unabashed “gearhead”: In a first for a Class I, CSX will serve as the primary sponsor of Ragan’s No. 34 in the Toyota Owners 400 at Richmond International Raceway on April 27. The Play It Safe Ford Fusion will sport a CSX livery based on the railroad’s deep blue and gold colors, with white lettering. The graphics package is currently being finalized. In addition to the prime sponsorship at Richmond, CSX is sponsoring David Ragan and Front Row as a major associate in five additional races: The Daytona 500 (this past Feb. 24, where he unfortunately got caught

up in a late-race multi-car wreck), Michigan International Speedway (June 16), Watkins Glen International (Aug. 11), Chicagoland Speedway (Sept. 15), and Talladega (Oct. 20). As well, the “I BRAKE FOR TRAINS” logo will be featured on the 34 throughout the entire 2013 season—all 36 races. Ragan, age 27 (seen below sautographing an “I BRAKE FOR TRAINS” bumper sticker), has had quite a career thus far. He began racing in the Bandolero Series at age 12. Four years later, he began competing in the Goody’s Dash Series. After one year, he moved to the Legends Pro-Division to race for Mark Martin, finishing fourth in the point standings. At 18, Ragan began racing in NASCAR’S Camping World Truck Series, Nationwide Series, and ARCA Racing Series. In 2007, he moved to the Sprint Cup Series, driving for Roush Fenway Racing through 2011, then signing with Front Row Motorsports in 2012. Between 2007 and 2012, he recorded 31 top-tens and 13 topfives in the series. On July 2, 2011, Ragan won his first career NASCAR Sprint Cup series race, the Coke Zero 400 at Daytona International Speedway.

ARTHUR J. McGINNIS, Jr., President and Chairman JONATHAN CHALON, Publisher jchalon@sbpub.com WILLIAM C. VANTUONO, Editor-in-Chief wvantuono@sbpub.com DOUGLAS JOHN BOWEN, Managing Editor dbowen@sbpub.com LUTHER S. MILLER, Senior Consulting Editor lmiller@sbpub.com CONTRIBUTING EDITORS: Alex Binkley, Roy H. Blanchard, Lawrence H Kaufman, Bruce E. Kelly, Anthony D. Kruglinski, Ron Lindsey, Ryan McWilliams, Jason H. Seidl, Frank N. Wilner Creative Director: Wendy Williams Art Director: Sarah Vogwill Design Assistants: Emily Cocheo, Kirsten McGinnis Corporate Production Director: Mary Conyers Production Manager: Jessica Cajas Production Director: Eduardo Castaner Marketing Director: Erica Hayes Conference Director: Jane Poterala Circulation Director: Maureen Cooney WEstErn officEs 20 South Clark Street, Suite 1910, Chicago, IL 60603 312-683-0130; Fax: 312-683-0131 Engineering Editor: Mischa Wanek-Libman mischa@sbpub.com Assistant Editor: Jennifer Nunez jnunez@sbpub.com George Sokulski, Associate Publisher Emeritus gsokulski@sbpub.com intErnational officEs 46 Killigrew Street, Falmouth, Cornwall TR11 3PP, United Kingdom Telephone: 011-44-1326-313945 Fax: 011-44-1326-211576 International Editors: David Briginshaw, Keith Barrow, Kevin Smith customEr sErvicE: 800-895-4389 Reprints: PARS International Corp. 253 West 35th Street 7th Floor New York, NY 10001 212-221-9595; fax 212-221-9195 curt.ciesinski@parsintl.com Railway Age, descended from the American Rail-Road Journal (1832) and the Western Railroad Gazette (1856) and published under its present name since 1876, is indexed by the Business Periodicals Index and the Engineering Index Service. Name registered in U.S. Patent Office and Trade Mark Office in Canada. Now indexed in ABI/Inform. Change of address should reach us six weeks in advance of next issue date. Send both old and new addresses with address label to Subscription Department, Railway Age, P.O. Box 10, Omaha, NE 68101-0010, or call toll free 1-800-895-4389. Post Office will not forward copies unless you provide extra postage. Photocopy rights: Where necessary, permission is granted by the copyright owner for the libraries and others registered with the Copyright Clearance Center (CCC) to photocopy articles herein for the flat fee of $2.00 per copy of each article. Payment should be sent directly to CCC. Copying for other than personal or internal reference use without the express permission of SimmonsBoardman Publishing Corp. is prohibited. Address requests for permission on bulk orders to the Circulation Director. Railway Age welcomes the submission of unsolicited manuscripts and photographs. However, the publishers will not be responsible for safekeeping or return of such material. Member of:

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Industry Indicators TRAFFIC ORIGINATED

WEEK 5 enDIng feB. 2, 2013

carLoaDS

MAJOR U.S. RAILROADS

By COMMODITy grain farm Products ex.grain metallic ores coal crushed Stone / Sand / gravel nonmetallic minerals grain mill Products food & Kindred Products Primary forest Products Lumber & Wood Products Pulp, Paper & other chemicals Petroleum Products Stone, clay & glass coke metals & Products motor Vehicles & equipment Iron & Steel Scrap Waste & nonferrous Scrap all other carloads TOTAL CAR LOADED

CANADIAN RAILROADS ALL COMMODITy

MEXICAN RAILROADS ALL COMMODITy

2013 16,922 947 4,275 108,274 18,520 4,096 10,055 6,761 1,542 3,756 6,465 31,075 13,154 6,735 3,620 10,791 15,869 4,223 2,982 4,638 274,700

2012 20,072 798 5,509 119,896 16,103 4,660 9,332 6,723 1,601 2,970 6,579 31,736 8,639 6,834 3,407 11,090 16,190 4,709 2,964 4,646 284,458

75,178

77,200

-2.6%

15,434

13,280

16.2%

5 WEEKS 1,339,604 372,517 68,246 1,780,547

U.S TOTAL CANADIAN TOTAL MEXICAN TOTAL NORTH AMERICAN TOTAL

% CHANGE -15.7% 18.7% -22.4% -9.7% 15.0% -12.1% 7.7% 0.6% -3.7% 26.5% -1.7% -2.1% 52.3% -1.4% 6.3% -2.7% -2.0% -10.3% 0.6% -0.2% -3.4%

% CHANGE FROM 2012 -6.3% 1.8% 6.9% -4.3%

WEEK 5 enDIng feB. 2, 2013

InTermoDaL U.S. RAILROADS TraILerS conTaInerS TOTAL UNIT

CANADIAN RAILROADS TraILerS conTaInerS TOTAL UNIT

28,693 220,538 249,231

30,924 201,669 232,593

-7.2% 9.4% 7.2%

1,608 48,105 49,713

1,404 49,812 51,216

14.5% -3.4% -2.9%

5 9,837 9,842

0 9,737 9,737

— 1.0% 1.1%

MEXICAN RAILROADS TraILerS conTaInerS TOTAL UNIT

5 WEEKS 1,168,630 251,231 43,539 1,463,400

U.S TOTAL CANADIAN TOTAL MEXICAN TOTAL NORTH AMERICAN TOTAL

% CHANGE FROM 2012 5.3% 6.3% -3.6% 5.1%

ESTIMATED TON-MILES (BILLIONS), U.S. CLASS I RAILROADS 2013 32.2 156.4

WeeK 5 TOTAL WEEK 1-5

2012 33.3 166.4

% CHANGE -3.3% -6.0%

Source: Weekly railroad Traffic, association of american railrods

RAIL FREIGHT TRAFFIC TRENDS, U.S. CLASS I RAILROADS estimated billion ton-miles

2012

34 32 30 28

30 28 26

Railway age

4 8 week

12 16 20 24 28 32 36 40 44 48 52

March 2013

carLoaDS

ORIGINATED JAN. ’13 28,092 17,329 14,820 8,384 21,270 5,470 8,713 4,833 17,576 9,077 1,146 1,174 16,091 7,687 48,926 8,396 143,859

By COMMODITy chemicals coal crushed Stone / Sand / gravel food & Kindred Products grain grain mill Products Lumber & Wood Products metals ores metals & Products motor Vehicles & equipmet nonmetallic minerals Petroleum Products Pulp, Paper & allied Products Stone, clay & glass Products Trailers / containers Waste & nonferrous Scrap all other carloads

ORIGINATED JAN. ’12 44,702 15,621 21,106 14,107 23,775 7,501 7,805 5,353 23,834 9,648 1,536 2,223 19,967 11,317 36,144 10,994 83,719

% CHANGE -37.2% 10.9% -29.8% -40.6% -10.5% -27.1% 11.6% -9.7% -26.3% -5.9% -25.4% -47.2 % -19.4% -32.1% 35.4% -23.6% 71.8%

TOTAL CARLOADS, JANUARy 2013 vS. 2012 JANUARy 2013 - 362,383 JANUARy 2012 - 339,352 270,000 280,000 290,000 300,000 310,000

320,000 330,000 340,000 350,000 360,000

RAILROAD EMpLOyMENT, CLASS I LINEHAUL CARRIERS, JANUARy 2013 (% change from JanUarY 2012)

Transportation (train and engine) 65,042 (0.31%)

executives, officials, and Staff assistants 9,848 (3.52%)

Professional and administrative 14,142 (2.61%)

TOTAL EMpLOyEES: 162,043 % CHANGE FROM JAN. 2012: 1.20% Transportation (other than train & engine) 6,791 (-0.19%)

maintenance of equipment and Stores 30,174 (1.62%)

maintenanceof-Way and Structures 36,046 (1.55%)

Source: Surface Transportation Board

36 32

2013

SHORT LINE AND REGIONAL TRAFFIC INDEX

Week-ended number

EMpLOyMENT Up yEAR-OvER-yEAR, SLIpS FROM pAST MONTH figures released by the Surface Transportation Board show class I railroads employed 160,043 people in mid-January, up 1.2% from march 2011, but down 0.69%, or 609 employees, from December 2012. all categories gained year-over-year except Transportation (other than train & engine), down 0.19%. Transportation (train and engine) lost the most from December 2012, down 0.69%.

Industry Outlook Metro-North eyes Penn Station use

economic Planning associates, in a freight car building report, said it expects orders this year to dip to just above 50,000, down from 2012’s 58,900, then rebound in 2014 and experience steady growth through 2018. “in 2014, we look for railcar deliveries to rebound to 59,800 cars. after 2014, annual railcar assemblies will move up from 63,500 in 2015 to 66,500 units in 2018,” ePa said. “The most dynamic element in the long term railcar environment will be tank cars to transport ever-increasing volumes of oil and petroleum product,” with “an expansion in demand for a variety of covered hoppers, mill gondolas, and Class F flat cars in the fourth quarter of 2012. Still, tank cars remain the dominant force in overall equipment demand. in the second quarter of last year, tank cars accounted for 83.5% of total orders. “ ePa said tank car growth “is centered in the movement of crude oil, particularly from Bakken Shale Formation in the Dakotas.”

CN ends iron ore range line plan

Class I’s set new crude oil record Carloads of crude oil on U.S. Class i railroads set a record in 2012, up 256% from crude carloads in 2011, modestly helping to offset declines in other freight carload categories last year, according to results released by the association of american Railroads Thursday. Crude oil in 2012 represented 0.8% of all U.S. Class i rail carloads, up from 0.2% in 2011. aaR reports crude-only carloading data on a quarterly basis. 6

Railway age

March 2013

CN has suspended a feasibility study for construction of a proposed rail line and terminal handling facility to serve the Quebec/labrador iron ore range. CN, with la Caisse de dépôt et placement du Québec and six mining companies, began the study last august. CN said “market realities have resulted in anticipated delays with mine development projects in and around the labrador Trough. a joint review of the project together with the mining companies indicates that mine construction schedules and diverging needs for each specific individual project will make it difficult to obtain the critical volumes of iron ore necessary to support the building of new rail” and infrastructure. CN executive Vice President and CFO luc Jobin said that “in light of the circumstances, CN has concluded that it is not advisable to continue with the feasibility study at this time.”

Steve Schmollinger

Tank cars, and oil, drive railcar orders

MTa Metro-North Railroad could make access to Manhattan’s Pennsylvania Station an official priority in its next five-year capital construction program to be released in 2014, despite decades of obstruction. at present, grand Central Terminal serves as the terminus for all Metro-North operations east of the Hudson River. The plan, currently labeled west Side access, would involve routings some Metro-North New Haven line trains over amtrak’s Hell gate Bridge and to Penn Station, on Manhattan’s west Side. a second phase would allow Metro-North’s Hudson line to also access Penn Station, via crossing the Spuyten Duyvil Bridge and traversing amtrak’s right-of-way along Manhattan’s west Side. The plan would in some ways be counterbalance to MTa’s current $8 billion east Side access construction project, which will give Metro-North’s sibling long island Rail Road direct access to grand Central as well as Penn Station. Proponents of west Side access, however, note the Metro-North plan, utilizing existing rights-of-way, would be far less expensive than east Side access, in the “hundreds of millions of dollars,” according to an MTa spokesman, as opposed to billions. For its New Haven line, which also doubles as part of amtrak’s Northeast Corridor, Metro-North initially would add stations in Morris Park, Parkchester, and Hunts Point in the Bronx, northeast of Manhattan, on the way to Penn Station. a Metro-North public presentation to Co-Op City residents in the Bronx last September suggests that travel time between the huge residential complex and Penn Station would be reduced from nearly an hour, using bus and subway combinations, to just 27 minutes. in Phase 2, involving the Hudson lline, Metro-North could add stops in Manhattan at 125th Street, and possibly near 59th Street on the way to Penn Station.

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condition full face of tread, work with sagging rigging

provide uniform braking force application

Market

Thales gets signal contract for Evergreen Line Thales has been awarded a contract by Partnerships B.C. to install its SelTrac® Communications-Based Train Control (CBTC) on the new SkyTrain evergreen light Rapid Transit line in Vancouver, British Columbia. Thales said it will upgrade the existing central control system and apply a two-stage implementation scheme to minimize any impact to existing SkyTrain service. Scheduled for service in 2016, the 11-kilometer (7-mile) evergreen lRT will connect Coquitlam to Vancouver via Port Moody and Burnaby, and serve seven stations.

North America COMPANIA DE FERROCARRILES CHIAPAS MAYAB: Selected RailComm to provide a computerized Track warrant Control System for the railroad, located in yucatan state.

MTA (NEW YORK): awarded a $258 million contract to Judlau Contracting, inc., to tackle mechanical, electrical, plumbing, and finishing work for the 72nd Street Station, one of three new stations being built as part of New 8

Railway age

March 2013

NEW ORLEANS PUBLIC BELT RAILROAD: Signed an agreement with ge Transportation to use ge’s software applications for railroad transportation management and railcar repair and maintenance. PORTLAND, ORE.: Received the first of five streetcars from local manufacturer United Streetcar, llC, for use on the Portland Streetcar.

Worldwide IWATE KAIHATSU RAILWAYS (JAPAN): installed Spokane, wash.based Hotstart’s HOTflow™ CSM engine Heater on one of its locomotives

to address environmental concerns To address environmental concerns, in iwate prefecture, located in northeast Honshu, Japan’s main island. YAKUTIA RAILWAYS (RUSSIA): Reached a Memorandum of Understanding with locorail and ge Transportation “to explore the possibility of forming a strategic relationship to modernize diesel electric locomotives.” PKP PLK (POLAND): Poland’s infrastructure manager awarded Bombardier Transportation a 35 million euro ($46 million) contract to install eRTMS level 2 on the 148-kilometer (92-mile) legnica-wroclaw-Opole line, part of the nation’s Corridor iii route linking germany with Ukraine,

Government of British Columbia

CSX: Signed multiyear, multimillion dollar contract with avtec, inc. to migrate all of CSX’s mainline dispatching centers to avtec’s Scout pure-iP radio console with enterprise Management capabilities.

york’s long-awaited Second avenue Subway project.

Washington Marriott Hotel February 4-5, 2013

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Update Supply BriefS

CBTC: Progress and problems

Alstom finalizes contract for Ottawa’s lrT alstom Transport has finalized a contract to provide 34 light rail vehicles and 30 years of maintenance services to the Rideau Transit group (RTg) consortium that was selected to design, build, finance, and maintain the first line of the C$2.1 billion Ottawa light Rapid Transit (OlRT) system. alstom’s portion of the contract is worth approximately US$534 million.

Bombardier’s TrackSafe wins innovation awards

Miller felpax announces expansion plan Miller Felpax Corp. plans to expand its facilities by 20% to include additional offices, warehousing, and training and innovation lab facilities, to handle future growth. 10

Railway age March 2013

Federal Railroad Administrator Joseph Szabo, addressing the Railway Age/Parsons Transportation Group International Conference on Communications-Based Train Control on Feb. 5, vowed FRA will “work directly with railroads; with manufacturers and suppliers; and with industry stakeholders to see PTC deployed in a safe, efficient, and cost-effective manner.”

rivate-sector interest, not congressional mandates, repeatedly surfaced as the prime motivation for speakers and attendees alike at the Railway Age/Parsons 10th International Conference on Communications-Based Train Control, held in Washington, D.C. Feb. 4-5. That motivation wasn’t measured by defiance, but instead by a belief that the rail industry’s future health and growth depended on CBTC (and Positive Train Control) development. CBTC is, in reality, “a specialized Intelligent Transportation System (ITS),” asserted Damien Convert, GE Transportation’s commercial director Intelligent Transportation Solutions. While ITS applications for road traffic and other modes is “patchy,” Convert said, the future will offer “comprehensive” ITS crossing modal boundaries. CBTC is a precursor to an “open network that connects machines, people, and data” to facilitate new

customer services, improve risk avoidance, and generate efficiency and cost savings,” he said. The promise of such an open network may lie ahead, but the effort to get to such promise involves moving “lots of mountains,” RailPros PTC Project Manager C.J. (Joe) Zerzan said, offering a project update for Southern California Regional Rail Authority’s

MTA New York City Transit President Thomas F. Prendergast, seen here addressing the conference, was honored with the Tom Sullivan Memorial Award.

Top, David Thurston/Parsons Transportation Group; Bottom, Douglas John Bowen

Bombardier Transportation has won two international innovation awards for its TrackSafe technology designed to improve safety and productivity for railway track workers. Bombardier received one of 15 innovation awards presented by the institution of engineering and Technology (ieT) to companies across a wide variety of engineering and technology disciplines. The competition attracted 430 entries from 25 countries. The ieT judging panel said: “TrackSafe has the potential to have a major social impact because on a global scale it would improve both trackside worker safety and urban transportation productivity. The project has demonstrated a high degree of collaboration between industry, local operators and academia in order to gain the full benefits of Radio Frequency identification (RFiD) and other technologies.”

David Thurston/Parsons Transportation Group

Railway Age Managing Editor Douglas John Bowen moderated the CBTC/PTC Supplier Roundtable, including representatives from Bombardier, Siemens, GE Transportation, Alstom, Thales, ARINC, and Invensys Rail.

commitment to PTC for its Metrolink regional rail system. Notwithstanding the federal mandate to install PTC by December 2015 – a mandate Metrolink, among few other U.S. rail operators, may actually meet in full – Zerzan noted that Electronic 2013 Rail-HalfPage-Future RailTrain Ad_Layout 1

Management System (ETMS) “is furthest along as an interoperable solution,” but Metrolink (and others) were scrambling to secure radio spectrum needs. Beyond that, “The ITC [Interoperable Train Control] standards for PTC11:57 are AM beingPage written as we build.” 1/22/13 1

By contrast, Thomas F. Prendergast, president, MTA New York City Transit, made it clear New York’s subway system would rely on CBTC, but not PTC, in its future operations, noting current use of CBTC on the system’s L Line, along with ongoing installation on its No. 7 Line. With 5.5 million riders per day—up from 3.5 million per day “when I left the first time” in 1994, before returning to MTA—“CBTC is the only way to increase throughput” in the system, Prendergast asserted. MTA NYCT hopes to complete systemwide CBTC installation by 2044, he said, at a projected cost of $33 billion. Parsons Transportation Group Vice President Rail Systems David Thurston presented Prendergast with the 2013 Tom Sullivan Memorial Award, honoring Prendergast’s contribution to the development and deployment of advanced-technology signaling and train control in North America.

Over the years, locomotives have advanced, shouldn’t your AEI System? A new Train Recording Unit (TRU) combined with the multi-protocol rail reader (MPRR) from TransCore will strengthen your AEI information network while greatly reducing your maintenance costs. Chances are, your legacy AEI system is not telling you everything you need to know. Let TransCore help. TransCore now offers a fully integrated TRU and MPRR that significantly enhances AEI performance while dramatically decreasing maintenance headaches and performance limitations of legacy systems. Isn’t it time you and your equipment really started talking?

www.transcore.com/rail 1-800-923-4824

March 2013 Railway age 11

2013 EASTERN REGION RAIL CROSSING CONFERENCE & EXPO The New England Railroad Club and the Massachusetts Department of Transportation invite you to join us at the Eastern Region Highway-Rail Crossing Safety Conference & Expo. The three-day event will allow you to interface and network with colleagues and industry experts as we discuss best practices, processes, and policies, while viewing new innovations in the industry. 17 Seminars and presentations exhibitor pavilion featuring over 50 industry suppliers, consulting companies, and engineering firms equipment Display showcasing equipment from around the region Demonstrations of innovative new products

KeynoTe SpeAKer & SpeciAl GueST Administrator Joseph C. Szabo Federal Railroad Administration

Affordable ticket options available! To learn more or to register online visit our website: www.nerailroadclub.com/expo

April 16-18, 2013 DCU Center • Worcester, Ma

Railway age March 2013

Report: U.S. HSR and HrSR spur supply industry

A report released Feb. 9 by the Environmental Law & Policy Center (ELPC) says U.S. high speed rail (HSR), higher-speed rail (HrSR), and intercity rail projects are spurring the U.S. rail supply industry, which is adding jobs and contributing to economic growth. The report, titled “Midwest High-Speed Rail Supply Chain: Good For Manufacturing Jobs, Good for Economic Growth and Good for Our Environment,” specifically focuses on 460 companies in the Midwest HSR rail supply chain, including 122 in Ohio, 99 in Indiana (a state judged by many to be less than hospitable to existing Amtrak operations, let alone HSR and/or HrSR), 84 in Illinois, and 73 in Wisconsin (also, lately, somewhat hostile to intercity assenger rail development). The report also pointedly notes that the reach of such growth includes supplier companies in states as far away as New York and California. HSR manufacturing, in particular, is spurring the U.S. rail supply industry, the report says, noting that a total of $782 million in federal investment is being awarded to Midwest states Illinois, Iowa, Michigan,and Missouri, along with California and Washington,to purchase 33 quickacceleration locomotives and 130 modern bilevel passenger rail cars.

ABB to supply TTC ABB has received a contract from Toronto-based electrical contractor Ozz Electric, Inc. to supply and commission rail traction power equipment for the Toronto Transit Commission (TTC). The contract includes the supply and commissioning of DC traction power equipment for the Leslie Barn, TTC’s new streetcar maintenance and storage facility. ABB’s scope of supply includes providing four 2MW/600Vdc Transformer & Traction Rectifier Units, DC switchgear and various DC distribution equipment. ABB will also provide technical support and commissioning services to Ozz Electric for this project.

William C. Vanuono

After attending our seminars, you’ll view grade crossing safety in a whole new light

Update

Caltrans unveils draft State Rail Plan On Feb. 11 the California Department of Transportation (Caltrans) released the draft California State Rail Plan (CSRP), subsequently holding open houses and a webinar to gather public input before a final plan is issued this summer. The open houses were held last month in Sacramento, Oakland, San Diego, Los Angeles, and Fresno. “The California State Rail Plan will establish a vision, set priorities, and present implementation strategies to enhance passenger and freight rail service in the public interest,” Caltrans wrote on the plan’s website. The plan includes integration of various rail services consistent with the California High-Speed Rail Authority’s (CHSRA) California High-Speed Rail Program Revised 2012 Business Plan. •The CSRP describes the planned passenger rail system in 2025 when initial HSR operations are anticipated to be in effect. • The CSRP describes plans for expansion of existing commuter rail services and new commuter and intercity rail services. Execution is contingent upon funding and agreement of the railroad that owns the right-of-way. • California is a major origin and destination for freight rail traffic, given its market size and position in international trade flows. The expansion of the Panama Canal and other Pacific Coast port expansions are unlikely to change Pacific Rim trade that moves on California freight railroads. Regional planning studies have identified a series of projects that can resolve freight chokepoints and bottlenecks. • The CSRP emphasizes the critical role Class I freight railroads play in international trade to California shippers and to the national rail network. • The CSRP stresses the importance of large annual expenditures by Class 1 railroads in maintenance, capacity expansion, locomotives, and rolling stock. The plan identifies currently planned projects among four types of freight improvements totaling $15 billion. • Many of the intercity and commuter rail services run on private Class 1 freight railroad right-of-way, which provides challenges and opportunities for both systems. • Conflicts in rail corridors will require careful coordination between multiple passenger and freight users. According to Caltrans, the final plan will fully integrate California’s future HSR rail system with existing and proposed conventional rail systems, and will serve as a basis for federal and state investments for HSR and intercity passenger rail in California. —Mischa Wanek-Libman

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www.irwincar.com/t3 March 2013 Railway age 13

SHOWING CONGRESS OUR PRIDE ON RAILROAD DAY ON THE HILL 2013 The privately owned freight rail industry supports a 160,000-mile network of American commerce every day and proudly invests billions into vital rail infrastructure every year.

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a railWay age speCial report to Congress

keep railroads free

to keep the economy moving

Alex Mayes

Congress, collectively, has “forgotten” the dark days of rail regulation and its own move to address it. By Frank n. Wilner, Contributing editor That’s a threat to rail’s long-term viability.

f June 21, 1970, lives in infamy as the day railroad operator Penn Central declared bankruptcy, the date similarly symbolizes when opinion leaders and decision makers commenced to understand how decades of stultifying railroad economic regulation created a stable of fractured iron horses. It would take another decade to begin restoring railroads to economic wellbeing and an ability to self-finance adequate

infrastructure investment to meet efficiently the nation’s existing and growing freight transportation demands. Yet some shippers most dependent on reliable railroad service are lobbying Congress, under the banner of Consumers United for Rail Equity (CURE), to roll back regulatory reforms that ended the industry’s stagnation — and solely for the short-term benefit of their own bottom lines. March 2013 railWay age 15

a railWay age speCial report to Congress

To protect against a dismantling of the genuine “cure” for railroad ills past — the Staggers Rail Act of 1980 — and prevent an unwarranted return to the noxious regulatory actions that produced the sclerosis of America’s principal artery of commerce, a history lesson is in order. As 19th century philosopher George Santayana counseled, “Those who cannot remember the past are condemned to repeat it.” Especially, the history lesson must be articulated on Capitol Hill, as of the 535 members of the House of Representatives and Senate, just five senators and 11 representatives held office when rail shippers, rail labor, rail management, investors, and a bipartisan majority in Congress came together in 1980 to support and craft the legislative remedy known simply as the Staggers Act — a law earning recognition as the most vital railroad legislation ever enacted.

When Penn Central went bust, federally insured certificates of deposit were paying 11% and competing truckers were reporting even higher returns, yet the railroad industry’s rate of return on investment was less than 3%, with many railroads posting perennial deficits. That some railroads remained financially sound was of minor consequence to a shipper on such lines whose freight was destined to a region served by a financially crippled railroad. Adding to the squeeze of excessive regulation were subsidies to competing modes. While railroads bear the full costs of constructing, maintaining, and operating their rights-of-way, and paying property taxes on those privately held assets, competing trucks and barges utilize public rights-of-way constructed and maintained by federal and state governments. Although user charges are assessed truck and barge operators, they represent but a fraction of those assets’ cost.

Most in Congress today are not conversant with the dismal pre-Staggers era in which bureaucrats peered over the desks of railroad decision makers, numbing entrepreneurial energy and blunting managerial flexibility to respond quickly to changing market conditions. In the pre-Staggers era, railroads were required to petition government for permission to raise, as well as lower, freight rates; trim under-utilized assets; customize service to meet individual customer needs; and were prohibited from entering into confidential contracts with shippers. It was an era when a single complaint to federal regulators would trigger an investigation so lengthy that by the time a ruling was rendered, the market changes generating the action had changed again. Nor were most current members of Congress present during the pre-Staggers era to witness more than 20% of the nation’s rail route mileage tumbling into bankruptcy; a quadrupling of train accidents caused by track defects; 25% of rail route-miles restricted to speeds as slow as 10 mph over deteriorating track; an accumulation of $16 billion (in 2012 dollars) in deferred maintenance for track, yards, bridges, tunnels, and equipment; weeks-late arrivals at factories and stores of raw materials and consumer goods; and a flight from the rail industry of investment capital. 16

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Having not witnessed the railroads’ Dunkirk, today’s lawmakers are susceptible to the self-serving pleas of a handful of self-described captive rail shippers — many larger and more profitable than railroads on whose quality service they depend. This small minority advocates a return to the era when railroads were required to make more distant producers competitive with local producers in given markets and to provide rate-preference to certain ports or regions. They want railroads to open their privately owned track for use by competing railroads, allowing others to benefit from the owning railroad’s investments. Open access would drive rail rates below market levels, causing railroads to lose substantial revenue that would reduce capital investment, encourage deferred maintenance that slows trains, and reverse improvements in customer service. Those promoting the attack on the Staggers Act themselves disregard the history of a rapidly declining rail industry of the 1970s that beckoned nationalization. They ignore the lessons learned from Penn Central’s bankruptcy — a failure so massive it eclipsed every previous American business bankruptcy. It was as stark a shock in 1970 as the 2008 Lehman Brothers failure precipitating the more recent economic downturn, requiring a massive bailout of the financial services industry.

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It was estimated by the Federal Railroad Administration that nationalizing railroads in 1970 would have cost the federal government almost $600 billion in 2012 dollars — not counting the hundreds of billions more likely to be required by retaining the status quo under federal ownership. Initially, Congress applied bandages to stanch the railroads’ financial hemorrhaging. Federally owned Amtrak was created, relieving railroads from operating money-losing intercity passenger service that was draining from them hundreds of millions of dollars annually. The Regional Rail Reorganization (3-R) Act created federally owned and subsidized Conrail out of the ashes of Penn Central and four other Northeast bankrupt railroads. Congress authorized hundreds of millions of dollars in loans and loan guarantees to permit other failed and failing railroads to continue operating.

cents of every revenue dollar must be invested back into plant and equipment — were to survive as privately owned entities, their high fixed costs had to be recovered from growing the business; and profitability had to improve to attract new capital investment to fund productivity, technological advancements, and improved service quality. As the railroad situation worsened, and bankruptcies multiplied, the words from President Kennedy’s 1962 transportation message gained renewed attention: Railroads were subject to “excessive, cumbersome, and time consuming regulatory supervision that shackles and distorts managerial initiative.” By 1976, with no meaningful railroad recovery in sight, Congress passed the Railroad Revitalization and Regulatory Reform (4-R) Act, which offered an initial dose of economic deregulation. Dispatched to the dust bin of history was rate regulation serving “little or no useful public purpose.” The 4-R Act also ordered regulators to consider revenue needs of

Railroad income statements and balance sheets continued to deteriorate. “The whole system of capitalism was careening,” wrote then-Railway Age Editor Luther Miller. Substandard earnings were sending investors fleeing, and deteriorating railroad service was adversely affecting manufacturing, assembly lines, and U.S. international trade. As many shippers abandoned railroads in favor of faster and more dependable pavement-pounding and less environmentally friendly trucks traveling federally constructed and subsidized highways, rail-dependent coal, chemical, and grain shippers faced the prospect of paying soaring freight rates to finance an even less-utilized track network starved of capital investment. This is because when rail traffic drops, fixed costs such as those for signals, routine maintenance, structures, rents, debt repayment, taxes, and other overhead do not decline as shipments fall. In the quarter century leading up to 1970, truck tonnage had soared by 200%, while rail tonnage grew by just 16%. As the railroad share of intercity freight ton-miles declined from 69% to 36%, the truck share climbed from under 1% to 24%. If capital-intensive railroads — where some 45 18

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railroads, liberalize constraints on abandoning light-density track, and speed the process for mergers promising greater efficiencies. It also prohibited states and local governments from imposing discriminatory taxes on railroad property. It still was not enough. With many railroads continuing to lose money, a fog of despair continued to envelope the industry. Certainty had set in that throwing federal money at the problem and providing limited doses of economic deregulation were insufficient to save the patient. Despondent rail-dependent shippers joined the collaborative effort to replace the still lingering command-and-control regulatory template with a more free-market based model. The Edison Electric Institute, which represents many shippers now seeking a rollback of Staggers Act freedoms, told Congress that “regulators must balance their efforts to keep down immediate consumer costs against the even more important responsibility to assure adequate service.” So was born the Staggers Rail Act of 1980, named after one of the law’s strongest proponents — the longtime chairman of the House Commerce Committee, Rep. Harley O. Staggers (D-W.Va.), who was retiring from Congress.

Norfolk Southern

As the railroad situation worsened the words from President Kennedy’s 1962 transportation message gained attention: Railroads were subject to “excessive, cumbersome, and time consuming regulatory supervision that shackles and distorts managerial initiative.”

a railWay age speCial report to Congress

The fundamental purpose of the Staggers Act was to recognize a Jeffersonian ideal that “the merchants [in this case, railroads] will manage commerce the better the more they are left free to manage for themselves.” Congress, having determined that arcane, antiquated, and rigid economic regulation was a malefactor intended the Staggers Act to establish market forces as the primary arbiter of freight rates, track abandonments, and marketing initiatives. The law also was recognition that the significant market power held by railroads in the late 19th and early 20th centuries had been eroded by alternative forms of federally subsidized transportation facing less burdensome regulation.

1980 Staggers Act, railroads, which during the 1970s had lost to trucks all trailer loads of fresh fruits and vegetables, regained tens of thousands of those shipments. Since 1980, railroads have almost quadrupled their volume of intermodal traffic to near 12 million units annually. Utilizing another Staggers Act freedom, railroads negotiated confidential transportation contracts with shippers that guarantee rate and performance levels. Initially, railroads entered into lengthy — sometimes 20-year — contracts with coal shippers at rates reflecting a need to generate more traffic.

In passing the Staggers Act in 1980, Congress decreed that railroads were to be given an opportunity to earn adequate revenue and attract the necessary new investments to renew facilities, compete with alternative forms of transportation, and improve service levels within the framework of a competitive marketplace. The Staggers Act did not fully deregulate railroads. If a railroad rate exceeds a statutory threshold, regulators can prescribe a maximum rate retroactively. Of 45 complaints filed with the Surface Transportation Board since 1996, shippers prevailed 11 times and railroads eight, while the remaining 26 complaints were settled voluntarily. In passing the Staggers Act, Congress decreed that competition and the demand for service should determine rail freight rates “to the maximum extent possible.” Railroads were to be given an opportunity to earn adequate revenue and attract the necessary new investments to renew facilities, compete with alternative forms of transportation, and improve service levels within the framework of a competitive marketplace. The Staggers Act specifically excluded from further regulation freight interchangeable between railroads and trucks, such as railroad boxcar traffic and freight moving in highway trailers and marine containers riding atop flat cars (intermodal). Railroads responded with innovative price and performance packages that, despite a 1981 recession, resulted in rail intermodal shipments increasing by 3% while motor carrier tonnage declined by more than 15%. This contrasts with pre-Staggers 1975 (another recession year) when intermodal traffic declined by 19%. In the years following the 20

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Many of those contracts were negotiated at prices reflecting substantial excess track capacity — existing because regulators had repeatedly denied efforts to abandon underutilized track. More than a third of rail route-miles had carried just 1% of the freight and there was pressing need to increase volume. As those lengthy-term contracts expired, railroads sought higher rates to reflect the elimination of excess capacity and their increased costs for fuel, labor, and technologically improved locomotives and safety appliances. Cries from some rail-dependent shippers for contract prices of a bygone era ignore economic reality. Another economic freedom permitted by the Staggers Act — one typical in other industries — is to permit differential pricing, meaning different rates for different customers shipping the same commodities or receiving the same service. Electric utilities attacking differential pricing themselves charge different rates for identical kilowatt hours delivered to residential and industrial customers. An assertion by some shippers that railroads are exempt from antitrust laws is not accurate. Railroads are subject to

Our rails cover 20,000 miles. Our people go the extra mile. At Norfolk Southern, we’re constantly looking for ways to increase efficiencies for the ports and shippers we serve. Take our Heartland Corridor public-private partnership project, for example. By raising 28 tunnel clearances to allow double-stack trains between Hampton Roads and Chicago, we were able to cut nearly 250 miles and a full day of transit time to the Midwest. Some would call that going the extra mile. We call it business as usual.

a Railway age special RepoRt to congRess

antitrust laws barring collusion in rate making, market allocation, and unreasonable restraint of trade. Limited exemptions are for activities subject to oversight by the Surface Transportation Board. Were the limited exemptions repealed, railroads would face dual jurisdiction — a twomaster conundrum of potentially conflicting STB and federal courts oversight that doesn’t exist for any other transportation mode. Results matter, so let’s look more closely at the three decades since passage of the Staggers Act, during which a railroad renaissance has emerged and no major railroad has filed for bankruptcy. Inflation-adjusted rail rates, on average, have declined almost 50% since 1981, saving shippers and consumers billions annually in lower shipping costs. Inflation-adjusted coal, chemical, and grain rates have declined, on average, between 26% and 49% since 1981. Truck, barge, product, and geographic competition hold

switching yards; more effective electronic braking systems; and advanced computer technology to forecast, plan, and dispatch on-time train arrivals. Installation before 2016 of Positive Train Control — a safety overlay controlled by computers and satellites — has a $10 billion price tag. For 2013, BNSF, CSX, Kansas City Southern, Norfolk Southern, and Union Pacific announced they will invest some $13 billion in plant and equipment renewal and upgrades, including new facilities to handle growing freight transportation demands. These and future investments are at risk should Congress rollback the regulatory freedoms contributing to the renewed financial health of the industry. Encouraging these capital investments has been a necessary improvement in the railroads’ return on investment (ROI), which has increased from under 3% in the 1970s to between 9.9% and 11.3% in all but one year since 2006 — about on par with American industry generally. When ROI is equiva-

most rail rates in check, with the STB the arbiter if rail rates exceed a statutory threshold. Product competition means substituting one product for another, such as natural gas for coal in electric power generation. Geographic competition means obtaining the same product —such as coal and grain — from different places served by another railroad. Shippers also generate competition through threatened or actual plant relocation. Accumulated deferred maintenance no longer exists, and a revitalized rail infrastructure is meeting shippers’ just-intime inventory demands. Since 1980, railroad have invested more than $500 billion in plant and equipment, including visual, temperature sensitive, and acoustical wayside detectors to identify defects in passing railcars; more fuel efficient, higher-horsepower and computer-laden locomotives; ground penetrating radar to identify track stability problems; remote control operation in 22

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lent to the cost of obtaining investment capital, railroads are judged by the STB to be revenue adequate. The industry is approaching revenue adequacy, and several railroads have posted revenue adequate ROI in one or more years since 2004. A rollback of Staggers Act freedoms threatens revenue adequacy and the willingness of investors to provide additional capital. As sure as Monday follows Sunday, rail-dependent shippers stand to suffer most if Staggers Act freedoms are dismantled, capital investment is curtailed, and deferred maintenance returns. As Teddy Roosevelt — no slouch when it came to harnessing market power — counseled, “We must insist that when anyone engaged in big business honestly endeavors to do right, he himself shall be given a square deal.” The Staggers Act is that square deal. RA

William C. Vanruono

For 2013, BNSF, CSX, Kansas City Southern, Norfolk Southern, and Union Pacific announced they will invest some $13 billion in plant and equipment renewal and upgrades. These and future investments are at risk should Congress rollback the regulatory freedoms contributing to the renewed financial health of the industry.

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railWay age

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Grain shippers are among those watching STB plans to adjust railroad costing.

multi-car break point compared to the unit costs on the other side of the break point. the stB wants to revise UrCs to calculate switching and clerical costs on a per-shipment basis rather than a per-car basis, as rail cars being switched generally are connected into a contiguous block of cars prior to loading and handled similarly from origin to destination. the stB also observes that where UrCs now assumes switching every 200 miles, railroad consolidations have increased that distance to more than 300 miles. rail-dependent shippers, who are frequent critics of UrCs, are taking a wait-and-see approach. “the concept of improved accuracy is laudable, but the notion of trust-but-verify applies here,” says shipper attorney Michael McBride. “the reason is that the stB has not produced data to show how particular commodities and types of movements would be affected. other recent stB proposals were not the improvements the stB claimed, so it will be necessary to have that data in order to respond to the proposal.” the notice of proposed rulemaking is docketed as ep 431 (sub-no. 4), review of the general purpose Costing system, with comments due March 21 and replies due april 22. —Frank n. Wilner

Photo by Bruce Kelly

if you say it’s not rocket science, you haven’t pored over the millions of computer-code lines and underlying time-and-motion studies comprising one of the most intricate tools the surface transportation Board, railroads and rail-dependent shippers contend with in measuring the variable costs of a given rail shipment. the Uniform railroad Costing system, or UrCs — created in 1989 and not significantly revised since — calculates for each Class i railroad its variable costs for specific movements (costs varying with traffic levels, such as fuel, crew wages and switching), and to assist in adjudicating excessive rail-rate and unreasonable practices complaints and line abandonments applications. UrCs was developed before major industry operational and structural changes, such as consolidations, an increase in unit trains, and introduction of remote control yard operations. UrCs now lacks flexibility to reflect cost changes as they occur for a given commodity or specific route. Many of UrCs’ underlying time-and-motion studies date to the 1930s, and switching speeds are based on pre-1963 averages. there is need for a costing tool more reflective of modern railroading. Cost estimates for a comprehensive overhaul of UrCs reach $10 million, while Congress appropriated $300,000 in 2012 to review and update UrCs. given the stickiness of federal budgets, more money is unlikely to be appropriated, meaning a comprehensive revision is not attainable. so the stB announced in February it will embark on a “modest adjustment” of UrCs. the objective is to reflect more accurately the variable costs of modern rail movements. the effort is being directed by board member Frank Mulvey, a ph.D. economist, and seven staff specialists with doctoral degrees in relevant areas. More specifically, the stB intends to revise UrCs to “reflect economies of scale relative to shipment size increases” and identify “efficiency savings a carrier obtains in its higher volume shipments and thus render more accurate unit costs.” the stB acknowledges in its decision to revise UrCs that there are differences in the variable costs associated with multicar and trainload shipments that the current UrCs computer model does not recognize, and that there can be relatively large differences between the unit costs of a movement on one side of a

LET’S NOT GO DOWN THIS ROAD AGAIN.

Deregulation of the rail industry in 1980 unlocked our company’s ability to invest more than $150 million in renovating and revitalizing a railroad that was once on the verge of abandonment. Our story is just one chapter of a remarkable transformation that has made the US freight rail industry the most productive in the world and the engine of our participation in the global marketplace. Let’s keep it moving forward. ©2013, The Indiana Rail Road Company

Railway Age 2012 Regional Railroad of the Year INRD.com

March 2013 railWay age 25

Intermodal Age the new

Presented By

MARINELOG +

conference & expo

interModaL is the fastest-growing form of surface freight transportation.

april 2–3, 2013 Hyatt regency BaLtiMore on tHe inner HarBor

Join Marine Log and raiLway age in Baltimore for a special conference exploring the multi-modal approach to moving cargo efficiently—by rail, by ship, by truck. ConferenCe topiCs • • • •

Securing and tracking cargo Improving efficiency through technology Managing the national equipment pool Labor’s critical role

• • • •

Successful public-private partnerships Panama Canal expansion Government policies that need to change Improving infrastructure: federal grants

exhibit and sponsorship opportunities Contact Jane Poterala, Conference Director, at tel. 212-620-7209 or jpoterala@sbpub.com

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Tuesday, april 2

Wednesday, april 3

Continental breakfast | Sponsorship available | Expo open

◆ Keynote address

◆ MAP-21 and implementation of a national freight policy Randolph Resor, Policy Advisor, Office of the Undersecretary for Transportation Policy, U.S. DOT

◆ Managing the national equipment pool

Coffee break | Sponsorship available | Expo open ◆ What are the current trends in intermodal? Lawrence Gross, Senior Consultant, FTR Associates

◆ Environmental benefits of intermodal transport Debra A. Colbert, Senior VP, Waterways Council, Inc. Coffee break | Sponsorship available | Expo open

◆ Panel presentations: Successful public-private partnerships Mark Montgomery, President & CEO, Ports America Chesapeake, LLC

◆ Why we need more federal and state investment in intermodal connections James C. Greller, Transportation Planner, Hudson County Improvement Authority Leif Dormsjo, Acting Deputy Secretary, Maryland Department of Transportation

Luncheon | Sponsorship available | Expo open

◆ What critical role can labor play in the new intermodal age? ◆ How is technology improving intermodal efficiency? Mark Yonge, Chairman, Marine Highways Committee, Ship Operators Cooperative Program (SOCP)

◆ Panel presentations: What’s the impact of the Panama Canal expansion? Richard Powers, Director of Sales & Marketing, Maryland Port Administration Speaker from the U.S. Maritime Administration

Energy break | Sponsorship available | Expo open

◆ Building the New Intermodal Age: What’s ahead?

◆ Panel presentations: Securing the supply chain Moderator: Mark A. Carolla, LCDR, U.S. Navy Reserve (Ret.) John Walsh, Director Infrastructure Protection, CSX Stephen L. Caldwell, Director, Homeland Security & Justice Issues, U.S. Government Accountability Office Cocktail reception | Sponsorship available | Expo open

Program subject to change

Sponsorships & exhibits available. Jane Poterala, Conference Director T: (212) 620-7209 | E: jpoterala@sbpub.com

REGISTRATION Please register me for The New Intermodal Age on April 2 & 3, 2013 in Baltimore, MD. Registration fee is $925 per participant. [ ] Check enclosed (Payable in advance to Simmons-Boardman) [ ] Bill my company [ ] Charge my [ ] MasterCard [ ] Visa [ ] Amex

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CONFERENCE FEE: The registration fee for this event includes admission to all conference sessions and social functions, as well as conference documentation containing all available presentations (sent via email post-event). Registration confirmation and invoice will be emailed. CANCELLATION POLICY: Confirmed registrants canceling less than a week prior to the start of the event are subject to a $250 service charge. Registrants who fail to attend are liable for the entire fee unless they notify Simmons-Boardman in writing via email or fax prior to the event. HOTEL: The Hyatt Regency Baltimore on the Inner Harbor is located at 300 Light St., Baltimore, MD, 21202. The Hyatt has set aside a block of rooms at $179.00 single/double for our attendees. These will be held until 30 days prior to the conference. Please contact the hotel directly at (410) 528-1234 for room reservations, group code “MMIS.” Reservations will be confirmed by the hotel. I’d like a complimentary subscription. (Publisher reserves right to limit numbers.) Marine Log Magazine Marine Log Daily News

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RA PASSENGER RAIL GUIDE Passenger’s presence expands

• CALIFORNIA HSR •

In July 2012 California’s High Speed Rail Authority (CHSRA) surmounted criticism and legal wrangling over the proposed 700-mile statewide system, as supporters of “shared use” right-of-way helped reshape the plan and reduce cost estimates from nearly $100 billion to about $65 billion. Objections continued over the launch point within the Central Valley, but in November a judge rejected plans by farming interests to disrupt the plan. Gov. Jerry Brown remained steadfast in his support for the plan, which eventually seeks to link San Diego and Los Angeles, in the south, with twin termini in San Francisco and Sacramento, the state capital, at top speeds of 250 mph. Early this year CHSRA and Amtrak reached agreement on a joint purchasing plan for HSR equipment. • AMTRAK •

Abandoning earlier plans to reinforce its Acela Express fleet, Amtrak early this year joined with CHSRA to jointly pursue lighter-weight HSR equipment for use on the Northeast Corridor and the Golden State. Amtrak this year will continue upgrading 24 miles of the NEC between Morrisville, Pa. and New Brunswick, N.J. to 165 mph speeds. Amtrak expects to receive the first of 130 single-level cars from CAF USA, now under construction, early next year. Lease agreements in New York (with CSX) and in Michigan (Michigan DOT and Norfolk Southern) will allow eventual passenger rail speed increases. In 2012 Amtrak extended its Downeaster service in Maine and added Norfolk, Va., to its service map. • VIA RAIL CANADA •

VIA Rail’s C$923 million, five-year federal government funding to rebuild 54 F40 locomotives and 98 tilt-body LRC cars proceeded, but slowly. Last October a New Brunswick provincial judge approved an adjusted arrangement for four rail diesel cars (RDCs) and 10 LRC (Light, Rapid, Comfortable) passenger cars to be refurbished in Moncton, New Brunswick, with Lashine, Quebec-based CAD Railway 28

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March 2013

By Douglas John Bowen, Managing editor

Industries Inc. acting as the project manager. VIA continued to improve right-of-way, announcing upgrades throughout the year to CN, CP, and VIA-owned infrastructure. Last December VIA Rail reached agreement with Amtrak to continue operating Amtrak’s Maple Leaf on the upper level of the Whirlpool Bridge, linking Niagara Falls, N.Y., with Niagara Falls in Ontario. • BOSTON •

On Dec. 21 Massachusetts Bay Transportation Authority delivered a letter to Hyundai Rotem expressing concern over continued delivery delays, as well as the construction quality of the 75 cars on order. Meanwhile, Motive Power, Inc. was expected to complete delivery of 20 new diesel-electric locomotives this year. MBTA awarded contracts for preliminary design to extend its Green Line T (light rail) service west of Boston’s Lechmere Loop to Somerville and Medford, Mass. MBTA also awarded Alstom two rail fleet modernization contracts worth $220 million; the first includes the full modernization of 86 articulated LRT vehicles operating on the Green Line. In the second project, Alstom will refit 74 bi-level MBTA regional rail cars. MBTA’s FY2012-2016 $3.8 billion Capital Investment Program aims to maintain and expand the current 486-mile rail network of 13 regional rail routes, three heavy rail lines, four-route light rail system, and the Mattapan-Ashmont High-Speed (trolley) Line. The state in 2012 acquired from CSX Corp. 45 route miles between Worcester and Boston, roughly bisecting the state on an east-west axis, 37 miles between Taunton, Fall River, and New Bedford, in the state’s southeastern portion, and eight miles north of Boston. Massachusetts paid CSX $100 million and was to assume operating and maintenance costs. Rejecting options to assume operations directly, MBTA instead was expected to renew its contract with Massachusetts Bay Commuter Railroad this year, despite objections from some groups protesting poor service.

Amtrak seeks new Northeast Corridor HSR equipment, depicted here serving Wilmington, Del.’s historic station.

• CONNECTICUT •

The Nutmeg State’s 51-mile Shore Line East (SLE) service currently offers five New London-New Haven roundtrip trains, with eight more originating or terminating in Old Saybrook, Conn.; most service connect with Metro-North’s New Haven Line services in New Haven, but two SLE trains reach west to Bridgeport and Stamford on weekdays. A $40 million ARRA grant awarded in 2011 will add track capacity on Amtrak’s New Haven-Hartford-Springfield branch for regional rail service, and plans are advancing slowly.

Amtrak

• NEW YORK •

MTA New York CiTY TrANsiT continues Phase I of the Second Avenue subway between 96th Street and 63rd Street in Manhattan, with MTA insisting completion will be for 2016. Revenue service for the $2.1 billion, one-mile No. 7 Line West Side Extension (also in Manhattan) is likely in early 2014. The $1.4 billion Fulton Street Transit Center took shape downtown, while underground connections began to open in segments during 2011. But the recently upgraded South Ferry Station in lower Manhattan was ravaged by Hurricane Sandy; rehabilitation of the station, a critical link between subways and the Staten Island Ferry, remains in doubt. Other city subway services recovered after the storm much more quickly than many expected. LoNg isLANd rAiL roAd work continues on the $8 billion East Side Access project to bring some LIRR trains to Grand Central Terminal, with tunneling now essentially complete. But the project’s opening has slipped back to 2019 from an original target of 2014. LIRR is exploring DMU options for rail service on its easternmost branches. MeTro-NorTh continued deploying new M-8 EMUs on the New Haven Line in 2012. Hit hard by Hurricane

Irene flood damage in 2011, Metro-North infrastructure and service largely survived the wrath of Hurricane Sandy in 2012, though its Hudson Line was subject to flooding from the namesake river, and its west-of-Hudson services were impacted by New Jersey Transit’s struggles to reactivate portions of those routes within the Garden State. PATh struggled for three months to restore full system service following Hurricane Sandy’s impact Oct. 29, 2012, though most of its fleet 340 new Kawasaki PA5 a.c. cars escaped damage. PATH has ordered 10 more PA5s. PATH also continues a $390 million for communications-based train control (CBTC). Storm damage will rearrange its priorities as it commits $659 million to modernize all 13 stations and $549 million for other projects. • NEW JERSEY •

Hammered in October by Hurricane Sandy, New Jersey Transit suffered infrastructure and equipment damage totaling at least $450 million, more than any other railroad in the Northeast. Full pre-hurricane service levels aren’t anticipated until late this year. Effort to restore existing service will slow any expansion of Hudson-Bergen Light Rail Transit (HBLRT and the 7-mile extension of NJT’s Morris & Essex Lines to Andover, part of a plan to reactivate the famed Lackawanna Cut-Off. In the state’s Philadelphia suburbs, however, double-track work continues on the southern end of the 34-mile RiverLINE, to accommodate a new transfer station under construction straddling the RiverLINE (diesel light railway) and NJ Transit’s Atlantic City Line. Delaware River Port Authority officials last month reaffirmed plans for diesel multiple-unit (DMU) service south of Camden to Woodbury, N.J., proceeding slowly with an environmental study. March 2013 Railway age 29

PassengeR Rail guiDe • PHILADELPHIA •

sePTA: As 2013 began, Hyundai Rotem had nearly completed delivery of 120 Silverliner V electric multipleunit (EMU) cars for the 13-route Regional Rail system. Open house meetings began on the proposed 4.9-mile, $277 million Norristown High Speed Line extension to King of Prussia and Valley Forge, using equipment in keeping with existing “interurban” operations; various route alignments are being studied. SEPTA awarded a contract to Ansaldo STS USA, worth roughly $100 million, for installation of Positive Train Control on SEPTA’s regional rail system, serving five counties. SEPTA hopes the installation will be completed by the end of 2015. PATCo: Port Authority Transit Corp. continues the $100 million modernization of its 14.5-mile line from Philadelphia to Lindenwold, N.J., including rebuilding 121 Budd and Canadian Vickers cars in lieu of any new car orders. • PITTSBURGH •

The 1.2-mile, $523.4 million North Shore Connector, tunneled under the Allegheny River from a relocated Gateway Center subway station, opened in March 2012, and was heavily patronized, but criticized for its slow operating speeds. Still in discussion is a proposed $380 million, 22.5-mile regional rail service from Alle-Kiski Valley in Westmoreland County, Pa., northeast of Pittsburgh, to downtown, with plans to acquire right-of-way from owner Allegheny Valley Railroad. • BALTIMORE •

Budget concerns is destabilizing Maryland’s commitment to a 12-mile, east-west light rail transit line (Red Line), to operate between Woodlawn and the Johns Hopkins Bayview Medical Center, and the 16-mile Purple Line, a circumferential LRT route between Bethesda and New Carrollton, linking with Metrorail at four locations. Even Bus Rapid Transit (BRT) alternatives, first floated as costsaving options, are being scaled back in recent proposals. • WASHINGTON •

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Vre: In 2012 Sumitomo Corp. and partner Nippon Sharyo were awarded a $21 million contract for eight double-deck gallery cars, with an option for 42 more, to replace VRE’s “legacy fleet.” Delivery is expected next year. Arlington County, Va.: The county remains dedicated to advance a 5-mile streetcar project linking Baileys Crossroads and Skyline area in Fairfax and Pentagon City in Arlington, linking with WMATA MetroRail, despite critics calling for Bus Rapid Transit (BRT) alternatives. WMATA is offering technical assistance. • NORFOLK •

Hampton Roads Transit’s 7.4-mile, $338 million LRT starter line, The Tide, opened in August 2011. HRT reported an average of 5,040 weekday boardings, compared with initial estimates of 2,900. Nine Siemens S70s cars provide service, receiving generally warm reviews from users. Political churn has resumed over extending the line into neighboring Virginia Beach, where opponents are still vocal but where business leaders have begun advocating for LRT access. Aided by expedited trackwork from owner Norfolk Southern, Amtrak passenger service returned to Norfolk last December, one year ahead of earlier projections. • CHARLOTTE •

Charlotte Area Transit System (CATS) was the first in 2011 to host Kinkisharyo’s AmeriTRAM hybrid light rail vehicle demonstration. Charlotte has steadfastly proceeded with plans to build a 1.5-mile streetcar line in the central business district, including the use of Gomaco Trolley double-truck Birney replicas currently used for tourist rides. CATS’s $463 million, 15-station LYNX Blue line still is in line to add its Northeast Corridor extension to University of North Carolina at Charlotte. CATS currently operates 16 Siemens S70s.

WMATA

wMATA: Phase I of Metrorail’s $5 billion expansion of the Orange Line to Dulles International Airport still is projected to open this year, with the remaining six-station portion set to debut in 2016. WMATA’s $886 million order for 428 7000-Series cars, awarded to Kawasaki Rail Car USA in 2010, will be used to replace Metro’s older 1000-Series cars in use since MetroRail began service in 1976. In the district itself, the H Street/Benning Road streetcar segment has determined its interface with Union Station. United Streetcar, LLC, won the city’s do-over bid for two streetcars, with D.C. adding a third car to the order.

WMATA has ordered 428 7000-Series cars to replace equipment serving the nation’s capital since MetroRail opened in 1976.

PaSSeNgeR Rail gUiDe • ATLANTA •

Construction began last February on the 2.7-mile, $94.4 million Atlanta streetcar line, running east-west through downtown, with $47.6 million in federal funding. Revenue service, targeted to begin in 2013, has now slipped to 2014. A second north-to-south route is planned. Voters rejected plans by Metropolitan Atlanta Rapid Transit Authority (MARTA) to add 12 miles of extensions to its subway network. Atlanta voters also spurned a 1-cent sales tax to finance the proposed 22-mile BeltLine, which would provide streetcar operations along parts of the BeltLine trail, with numerous connections to MARTA stops. ORLANDO

Construction of the $165 million Central Florida Commuter Rail project, or SunRail, began last May. Service will link DeLand and Poinciana on 61.5 miles of right-of-way the state has purchased from CSX. Bombardier Transportation initially will supply 14 BiLevel cars; an option for 46 more cars is included. Car deliveries are planned between May and August. Service on the initial phase may begin next May. TAMPA BAY

Voters in 2010 rejected plans to establish a one-cent sales tax increase to establish light rail transit service in the region, leaving the 2.7-mile TECO Line Streetcar, operated by Hillsborough Area Rapid Transit (HART), vulnerable to annual operating woes. But voters in nearby Pinellas County, Fla., likely will vote in November 2014 on a proposed sales tax to pay for a Tampa Bay regional light rail transit (LRT) system, and bus improvements. If approved, a sales tax increase, probably of one cent, would be targeted to commence construction of a $1.5 billion, 24-mile LRT line linking Clearwater, Fla., and St. Petersburg. Clearwater’s city council passed a resolution last year calling LRT “ crucial to the sustainable growth and development of the Tampa Bay Region.” • MIAMI •

FLORIDA EAST COAST: Florida East Coast Railway in 2012 unveiled plans to develop and operate passenger rail service between South Florida and Orlando. All Aboard Florida would stretch about 240 miles, using 200 miles of existing FEC right-of-way from Miami and Cocoa, Fla., and 40 miles of new track to reach Orlando. Intermediate points would include Fort Lauderdale and West Palm Beach. Future expansions would take the service to Tampa, on the west coast, and Jacksonville, near the Georgia border. The project would cost at least $1 billion. FEC also reportedly was in talks with state officials who hoped FEC might assume management and operations of South Florida Tri-Rail regional rail operations. TRI-RAIL: Tri-Rail ridership totaled 4 million riders in 2012, rebounding from levels depressed by the Great

Recession. Veolia Transportation operates the 70.9-mile, 18 station line for South Florida Regional Transportation Authority (SFRTD). Beginning March 2, Tri-Rail weekend service expanded from 16 to 30 trains, to improve frequency to hourly service on weekends and holidays, and including service later into the evening. A 16-mile Tri-Rail Jupiter extension on Florida East Coast’s right-of-way is being studied and is gaining support. Involving FEC, Tri-Rail, and Amtrak, the extension is part of a larger discussion of rerouting at least one of Amtrak’s Silver Service trains along the coast between Miami and Jacksonville. MIAMI-DADE TRANSIT: Miami-Dade County Commission last November awarded a $313 million contract for 136 transit cars to AnsaldoBreda. Last July Metrorail integrated its rapid transit system with Miami International Airport through a 2.4-mile, $523 million spur. • BUFFALO •

Buffalo tapped AECOM to evaluate transportation expansion alternatives on behalf of Greater Buffalo Niagara Regional Transportation Council, with LRT, streetcars, and Bus Rapid Transit (BRT) on the table. Niagara Frontier Transportation Agency began operating its 6.4-mile Metro LRT in 1985, but expansion plans have been deferred or rejected in the 28 years since. The expansion plans came even as service cutbacks enacted in late 2011 drew protests from outlying communities claiming “reverse-commuters” were disproportionately affected. Rehabilitation of 26 Tokyu LRT cars on Niagara Frontier Transportation Authority’s (NFTA) 6.2-mile Metro Rail LRT line remains painfully slow, even as repair costs rise. Problems with subcontractors have significantly delayed the program. • CLEVELAND •

The Greater Cleveland Regional Transit Authority is building a new $25 million Intermodal Transit Center off Chagrin Boulevard and Warrensville Center Road before 2020. After that, GCRTA says, extensions to the four-route, 38-mile heavy rail (Red Line) and light rail (Blue, Green and Waterfront) lines will be considered. Total GCRTA ridership, including rail and bus, rose 4.3% in 2012. • CINCINNATI •

The city reached agreement on Feb. 1 with Duke Energy Corp. on procedure to resolve the dispute involving utility relocation for the 4.9-mile initial streetcar line. Phase 1’s opening date also has been advanced to 2015 to handle crowds expected for Major League Baseball’s annual All Star Game. The route will connect the city’s largest employment centers, Downtown and Uptown, and the Over-the-Rhine neighborhood. Last April Cincinnati selected CAF USA, a subsidiary of Spain’s Construcciones y Auxiliar de Ferrocarriles S.A., to supply five streetcars, with an option for up to 25 more. March 2013 Railway age 31

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adjacent or underlying utilities, including water pipes and electrical conduits, in preparation for streetcar construction in early 2014. The city is at odds with its namesake county and state anti-rail partisans intent on scuttling the $64.6 million project. The line would run from the city’s lower east side to the downtown Amtrak/Greyhound station, also serving the state capitol and nearby neighborhoods.

MeTrA: The first four of 160 “Highliner” double-deck electric multiple-unit (EMU) cars being built by Nippon Sharyo, in conjunction with Sumitomo Corp. of America, arrived in November. Last July Metra approved a $93 million contract to construct the Chicago Region Environmental and Transportation Efficiency (CREATE) Program P1 project, know as the Englewood Flyover, designed to eliminate conflicts with freight rail traffic. Glacial progress continues on Metra’s $1.5 billion Suburban Transit Access Route (STAR), a 55-mile outer belt DMU service plying a circumferential route in “suburb-to-suburb” fashion (see map). Also still being weighed is a $500 million, 32-mile SouthEast DMU on Metra’s Rock Island and UP/CSX lines, running from Chicago’s LaSalle Street Station to Crete, Ill.

S NC

Proposed Metra STAR Line Roselle Rd

BARTLETT

North Ave

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PLAINFIELD

• MINNEAPOLIS/ST. PAUL •

Construction advanced rapidly on the $957 million, 11-mile Central Corridor light rail transit project in 2012, with the Metropolitan Council holding to an opening day in 2014. The LRT line will link a restored Union Depot in St. Paul (with Amtrak service to be added) with downtown Minneapolis and the existing Hiawatha Line LRT. A third LRT line, the Southwest Corridor, would link Minneapolis with Eden Prairie, and has slowly gained support, as has the intermodal transit hub in downtown Minneapolis, dubbed “The Interchange,” designed for LRT lines and Northstar trains. A fourth LRT route, linking Brooklyn Park and Minneapolis, in the planning stages and is facing some resistance; a preferred alignment is expected to be submitted to federal authorities this summer. Ridership on the Hiawatha LRT line, serving Minneapolis, edged up 0.2% in 2012 for an annual record of 10.5 million

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53 ARLINGTON HEIGHTS ROLLING MEADOWS

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Armed with $51.9 million in federal funding awarded on Dec. 31, Milwaukee city officials have filed plans with the state Public Service Commission for related work on Railway age

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• MILWAUKEE •

SOUTH BARRINGTON

Kenosha Transit’s 1.7-mile streetcar route is well known for its use of rehabilitated President’s Commission Cars (PCCs), in operation since June 2000. The line at present links the city’s the Metra rail station to a marina and two parks along Lake Michigan. Last November the City Council approved a 2013 budget including funding for a proposed extension through downtown Kenosha, with a track going south on Eighth Avenue and north on Sixth Avenue from 50th Street to Library Park.

41 94

• DETROIT •

• KENOSHA, WIS. •

UP -N W

NiCTd: The Northern Indiana Commuter Transportation District activated its new connection at Kensington Interlocking . Work continues to upgrade catenary, signals, and CTC covering 75.5 miles of the 90-mile electrified line. Detroit’s private sector is eyeing Cincinnati’s purchase of five CAF USA streetcars, with the idea of an add-on order for the Motor City’s current M-1 streetcar plan, repeatedly revised. The current plan calls for an initial streetcar line of roughly 3.4 miles along Woodward Avenue. Private interests have pledged $125 million; the federal government last January recommitted $25 million to the plan, projected to cost at least $137 million.

IKEA

CTA: Chicago Transportation Authority (CTA) ridership in 2012 grew to its highest annual total in the past 22 years, rising 2.4% to 545.6 million rides for the year. CTA received 130 of its Bombardier 5000 Series rapid transit cars. Ongoing rehabilitation of stations and right-of-way continues on numerous lines, with Red, Orange, and Yellow line extensions still planned.

Barrington Rd

• CHICAGO •

PaSSeNgeR Rail gUiDe

riders, or about 13% of the Met Council’s total transit ridership, and exceeding the pre-construction estimate for the year 2020. Last month Metro Transit began operating the first two Siemens S70 light rail vehicles in revenue service, with 57 more on order. • OMAHA •

Omaha’s transit authority is conducting a 10-month, $1.3 million transit upgrade study that will include an examination of streetcars and Bus Rapid Transit (BRT) options. • KANSAS CITY, MO •.

Kansas City Streetcar Authority Inc. at press time was ready to choose an operator and a vehicle manufacturer for its initial 2.2-mile downtown streetcar route, the development of which is being overseen by HDR Inc. The authority reportedly was seen favoring a European manufacturer rather than a U.S.-based firm. • ST. LOUIS •

St. Louis’ 46-mile, bistate MetroLink LRT system remains the only “interstate” light rail transit system in the U.S., and current capital plans include a three-year rehabilitation of the historic Eads Bridge spanning the Mississippi River to maintain that link. Armed with roughly $25 million in federal funds, the Delmar Loop Trolley would stretch 2.2 miles between Forest Park and University City, using heritage equipment. A second proposal by the Partnership for Downtown St. Louis seeks a streetcar” connecting the areas of Downtown, Midtown, Central West End, and Skinker-DeBaliviere.” • NASHVILLE •

Nashville Regional Transportation Authority plans to develop a five-line system remain, at best, quiescent. Its sole line, Music City Star, offers six round trips per weekday, connecting eastern suburbs to Nashville’s Riverfront station. • MEMPHIS •

Memphis Area Transit Authority has approved a first-phase Southeast Corridor line connecting with the city’s airport as a “top priority.” MATA chose LRT as the preferred mode. But the proposal, now nearly six years old, shows little sign of progress. • LITTLE ROCK •

The Central Arkansas Transit Authority’s 2.5-mile River Rail streetcar system spans the Arkansas River to connect downtown Little Rock with North Little Rock. A 2.5-mile extension to Little Rock National Airport remains an elusive next step. Five Gomaco Trolley Co. streetcars operate on the route. The three-line, 4.9-mile MATA Trolley, a heritage streetcar system, opened in 1993.

• NEW ORLEANS •

The New Orleans Regional Transit Authority on Jan. 28 opened the 1.5-mile Union Passenger Terminal/Loyola Loop streetcar line, adding it to its three-line streetcar system. Next likely prospect is extending streetcar service into the French Quarter, running 2.48 miles from Canal Street to Press Street and linking with the existing Riverfront Streetcar line. • OKLAHOMA CITY •

Oklahoma City plans to construct an urban circulator streetcar line, to cost $120 million, under the “MAPS 3” redevelopment plan approved by the city’s voters. The line would include a stop at the city’s Santa Fe station. • DALLAS METROPLEX •

DART/TRE: Dallas Area Rapid Transit in December secured a nearly $120 million loan that will enable DART to advance construction on the third phase of its Orange Line extension project to connect Irving, Tex., with Dallas/Fort Worth International Airport, part of DART’s long-term effort to obtain airport access. DART’s Orange Line to Irvine debuted last July, with a second extension to Beltline road opening last December. DART’s fiscal year 2013 budget of $1.07 billion also targets continued expansion of its Blue Line from Ledbetter Station to the University of North Texas. A second line through downtown, either LRT or streetcar, continues to be discussed and debated. With a DART assist, Dallas’s Oak Cliff streetcar line was set to receive nearly $31 million for more right-of- Ridership on the 34-mile Dallas-Ft. Worth Trinity Railway Express (TRE) service slipped to 7,600 weekday boardings in the third quarter of 2011, down from the 9,800 weekday boardings average in 2010. way work and two additional streetcars from Brookville Equipment Corp. , which already is building two streetcars for the line, set to open in October 2014. DCTA: Denton County Transportation Authority received 8 more diesel multiple-8nj9t cars from Stadler for its 21-mile, five-station line, which opened in June 2011, linking Denton and Dallas counties (and DART Green Line light rail service at Carrollton). TEX RAIL: Planned rail service linking southwest Tarrant County, downtown Fort Worth, and northeast suburbs continues, though at least one suburban participant expressed doubts about the plan, which includes a link at Dallas/Fort Worth International Airport, serving up to 30% of anticipated riders. Tex Rail will serve two downtown Fort Worth stations already served by TRE. • HOUSTON •

Siemens delivered its first of 70 S70 “H2” light rail cars in October to Houston MetroRail. Metrorail in August March 2013 Railway age 33

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2015. The 12.1-mile, $710 million West Corridor (“Golden”) LRT line from downtown Denver to Golden was set to open April 26, the latest addition to RTD’s FasTracks, a multibilliondollar program to build 122 miles of regional rail and LRT by 2017. • SALT LAKE CITY •

California has paved the way for its HSR effort by supporting and growing Amtrak intercity service ridership.

received $188 million in funding from the Federal Transit Administration, as part of a Full Funding Grant Agreement bolstering construction of two LRT lines. But in November LRT advocates mourned passage of a referendum allowing Metropolitan Transit Authority of Harris County (Metro) to divert 25% of its transit sales tax collection to roads, bridges, sidewalks, and other non-rail infrastructure. Metro itself supported the measure. • AUSTIN •

Capital Metro says its MetroRail ridership in 2012 rose 50% over 2011 totals, due in part to extended evening service on Fridays and Saturdays. Average weekend ridership on the now averages 2,200 trips. Midday service on the Red Line DMU was added in both directions in 2011. • SAN ANTONIO •

VIA Metropolitan Transit, Bexar County, and the city of San Antonio agreed in 2011 to build a $190 million downtown streetcar system, part of a 34

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$239 public transit package funded by all three entities. Bexar County and VIA will each contribute $92 million to the projects. Last January VIA received approval from the Texas Department of Transportation to tap $92 million in TexDOT funding for the proposal. • EL PASO •

Restored Presidents’ Conference Committee (PCC) streetcars, once a staple in El Paso, are being explored by the City Council. A preliminary study is prelude to an expected application for $90 million in state money to build the project. • DENVER •

In October Denver Regional Transportation District (RTD) tapped AECOM Technology to assist in the first two segments of RTD’s 18-mile North Metro Rail Line, a regional operation linking Denver and North Adams County, Colo. RTD in July approved a design-build contract with Kiewit Infrastructure Co. to extend the I-225 Light Rail Line 10.5 miles to Aurora, Colo.; the extension by late

The Utah Transit Authority (UTA) continues with its $2.4 billion FrontLines 2015 program, with its 6-mile extension to Salt Lake City International Airport and a 3.5-mile addition to Draper slated for completion in 2014. UTA, Salt Lake City, and South Salt Lake continue with a $55 million, 2.74-mile Sugar House streetcar project designed to link the namesake neighborhood in Salt Lake City with South Lake. The project received $26 million in TIGER funding in 2010. FrontRunner regional rail service began Dec. 10, 2012 over 45 miles linking Salt Lake City and Provo, Utah. • ALBUQUERQUE •

In January the Rio Metro Transit District Board invited “qualified individuals and firms to submit proposals for the operation and maintenance of commuter rail services between Belen, New Mexico and Santa Fe, N.M.” RailRunner Express currently spans 100 miles and serves 13 stations (not all of them with equal frequency) seven days a week. • PHOENIX/TEMPE •

Valley METRO’s 19.6-mile, $1.4 billion LRT starter line, served by 50 Kinkisharyo cars, continues to draw ridership and influence economic development. The region’s 20-year transportation plan calls for 57 miles of high capacity transit by 2030. Groundbreaking for the 3.1-mile, fourstation extension into downtown Mesa will occur this spring. Plans are moving ahead for a $129 million, 2.6-mile streetcar line to link the cities of Tempe and Mesa in the East Valley region east of Phoenix, as well as connecting connect with Valley METRO LRT.

PaSSeNgeR Rail gUiDe • TUCSON •

Construction is ongoing for Tucson’s 3.9-mile, $177.5 million streetcar project linking the University Medical Center with the west side of the Santa Cruz River via downtown. Seven streetcars have been ordered from Oregon Iron Works, Inc. subsidiary United Streetcar LLC. • SAN DIEGO •

Metropolitan Transit System: On Sept. 2, 2012, MTS altered its operations pattern for the San Diego Trolley, aiming to eliminate some transfers and improve travel times. The Green Line was rerouted from Santee through downtown San Diego, terminating 12th and Imperial station, near the convention center and Petco Park. Changes on the Blue and Orange lines allowed utilization of 57 Siemens S70 low-floor light rail transit equipment systemwide; delivery of the S70s should be completed this year. The 11-mile, Mid-Coast Line from Old Town to the University of California San Diego in La Jolla, now estimated to cost $1.2 billion, is progressing, with the line expected to open in 2016. North County Transit District: NCTD’s 22-mile Sprinter service uses 12 Siemens Desiro DMUs from Escondido to the Oceanside Transit Center; it debuted in March 2008. NCTD’s Coaster service linking Oceanside and San Diego offers 11 weekday round trips, and four trains each way on weekends. A study will evaluate a potential new Coaster stop adjacent to Camp Pendleton. • LOS ANGELES •

On April 28, 2012, the Los Angeles County Metropolitan Transportation Authority (Metro) opened its Exposition (“Expo”) Line between its terminus at 7th/Metro Center and the La Cienega/Jefferson Station. The 8.6-mile line runs west from the Blue Line at Staples Center to Washington and National Boulevards. Metro has 34 of 50 AnsaldoBreda cars for the line. Aided by a $20 million TIGER II grant, the 10-mile Crenshaw/LAX Transit

Corridor Light Rail Project will provide service to Inglewood, Calif., and to LA’s Crenshaw Boulevard neighborhood, on a north-south route linking the existing Green Line and the brand new Expo Line. The full 23.6mile Gold Line Foothills Extension to Montclair is in planning with a $458 million contract awarded for the first 11.4 miles to Azusa. Also in play are the Purple Line “Subway to the Sea” extension, a downtown Blue-to-Gold LRT connection, and an Eastside Gold Line Whittier extension. Ridership on Southern California Regional Rail Authority’s seven-route, 512-mile Metrolink rail network was up 4% for the first four months of fiscal year 2013, which began July 2012. Metrolink continues to receive 137 Rotem bilevel cab cars and trailers. The existing 136 Bombardier BiLevels are being retrofitted. • ANEHEIM, CA•

The Anaheim City Council has advanced a 3.2-mile streetcar plan that would serve, among other points, the original Disneyland. Anaheim already has $24.6 million in transportation funds for the $319 million project, and expects to tap some federal “New Starts” funding, and funding from Measure M2, a half-cent sales tax for transportation projects in Orange County. • SAN BERNADINO, CA •

A 9-mile rail route would link downtown San Bernardino and the University of Redlands, to be funded by federal Congestion, Mitigation, and Air Quality (CMAQ) funding and state sources. Phase 1 could begin construction in 2014, with initial use of regional (commuter) passenger rail equipment, though several sources say Phase 2 would convert operations into a light rail transit line. • SAN JOSE •

Santa Clara Valley Transportation Authority’s (VTA) three-line, 42.2-mile LRT system was savaged even by pro-rail advocates in 2012 as ridership continued to languish. Construction on

the 16-mile, $5.9 billion BART Silicon Valley extension from Fremont to San Jose continues, projected to connect with VTA bus and LRT, with a target opening date of 2016. • SAN FRANCISCO BAY •

MUNI: Construction continues on the San Francisco Municipal Transportation Agency’s controversial $1.3 billion Central Subway project, designed to extend light rail transit underground 1.7 miles north to Stockton and Clay Streets under 4th Street. The project last October was reinforced with $942.2 million in Federal Transit Administration funds. BART: Construction of an $890 million, 5.4-mile extension from Fremont south to Warm Springs is now under way, with completion targeted for 2014. Cubic Transportation Systems will activate the fare collection system on the extension and integrate it into the regionally interoperable Clipper® Card payment system. An additional 10-mile extension beyond Warm Springs into Santa Clara County is also ongoing. Construction continues on a $484 million, 3.2-mile automatic people mover (APV) project linking Oakland International Airport with BART’s Coliseum/Oakland Airport Station, to open in spring. In 2012 BART began considering operation of both express services and split/merge operations, where a train is divided or joined en route to or from two different terminal points. BART’s $1.3 billion Earthquake Safety Program will be completed in 2017. CALTRAIN: The regional rail service linking San Francisco, San Jose, and Gilroy this year will conduct an environmental review of the electrification project with a series of public meetings to seek input on the scope of the review. Caltrain continues construction work, including right-ofway upgrades, in preparation for electrification of service, with the target date now slipping to 2019. March 2013 Railway age 35

PassengeR Rail guiDe • SONOMA/MARIN COUNTIES • New Kawasaki-built M-8 electric multiple-unit (EMU) equipment is now a common sight on Metro-North’s busy New Haven Line.

Preliminary work began last year on the $103 million initial operating segment of 38.5 miles between Santa Rosa and San Raphael, scheduled to open in late 2016. Alameda, Calif.based Stacey and Witbeck Inc. and St. Joseph, Mo.-based Herzog Contracting Corp. oversee the project. Service on Phase I is scheduled to begin in late 2014 or early 2015. SMART has ordered 18 diesel multiple-unit (DMU) cars from Sumitomo Corp. of America and partner Nippon Sharyo. • STOCKTON •

The San Joaquin Regional Rail Commission’s 86-mile, Stockton-San Jose Altamont Commuter Express (ACE) and the California High Speed Rail Authority will employ “blended” rail upgrading to allow ACE rail service and state high speed rail trains to comingle, in order to save costs through shared (or adjacent) rights-of-way. Roughly $950 million in improvements, including electrification of ACE service, are planned as an incremental step toward high speed rail operations. • SACRAMENTO •

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March 2013

The $184.7 million elevated rapid rail line will initially run from East Kapolei

William C. Vantuono

LTK has contributed to planning, design and development of passenger rail systems across North America, bringing expertise in rolling stock, operations planning and simulation, traction power, OCS, signaling, communications, fare collection and revenue systems management, maintenance facilities and positive train control.

The Regional Transit District’s 1.1-mile, two-station first phase of its Green Line extension, running from an existing station at H and 13th streets to Richards Boulevard, opened last June, one year behind schedule. The complete 13-mile Green Line addition to Natomas and Sacramento International Airport remains under construction. RTD’s 4.2-mile, $270 million South Line Phase II expansion (Blue Line) project is now scheduled to open in 2015; the project received $135 million in federal funding last January. Neighboring West Sacramento continues, albeit slowly, to advance a $70 million, 2.2-mile streetcar line to link with its larger neighboring city and the RTD. Voters approved the streetcar line in 2008.

PaSSeNgeR Rail gUiDe

to Pearl Highlands. The entire 20-mile rail line will extend from East Kapolei to Ala Moana Center, and will cost an estimated $5.27 billion. Most of that funding will come from a half-percent excise tax surcharge levies on Oahu residents and visitors. Opponents are still trying to stop the project. • PORTLAND •

TriMet continues to build a $1.49 billion, 7.3-mile line southeast from downtown to Milwaukie and North Clackamas County by 2015, but antirail forces in that county are challenging the agency’s right to proceed. To the north, TriMet, Portland, and Oregon are flexing political muscle to extend the Yellow Line to Vancouver, Wash., in exchange for agreeing to the multimodal Columbia River Crossing, with scattered anti-rail forces in Washington state demanding a road-only bridge. In its fourth year of operation,

annual ridership on TriMet’s WES regional rail service, operating weekdays only, again rose to total 326,910, up from 289,980 in fiscal year 2011. WES initially struggled with lowerthan-expected ridership. • SEATTLE-TACOMA •

Sound Transit (ST) continues construction of a 3.1-mile University Link LRT extension from downtown to the University of Washington. The $1.7 billion line will run north from the Central Link’s Westlake terminus through the most densely populated residential and employment area in the Central Puget Sound region. Long-range plans call for the route to reach Redmond. Preliminary engineering has begun for a 1.6-mile LRT extension on an elevated guideway primarily along 28th Avenue S. from Sea-Tac Airport to S. 200th Street, adding two stations. Work also continues on a four-line,

$685 million streetcar network, building on the existing 1.3-mile South Lake Union line. ST’s Sounder regional rail service on Oct. 8, 2012, was extended 8.5 miles to Lakewood, Wash. The extension required a $32 million purchase of 18 miles of BNSF track south of Tacoma. • VANCOUVER •

Now with three routes, mostly elevated, 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 line is now targeted for completion in the summer of 2016. • EDMONTON •

Edmonton Transit System (ETS), which launched North America’s first modern light rail operation in 1978, continues work on a 2.8-mile “North” extension, running from Churchill

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PassengeR Rail guiDe

Transit’s West Line, running to 69th Street Station; a March 2013 opening had been anticipated. The C-Train 202 line last August added stations at Saddletowne and Martindale. The C Train’s electricity has been entirely wind generated since 2001. The city expects to C$133 million for the purchase of at least 50 new LRT cars and $8 million for the pre-design of the Southeast Transitway project. The city’s senior transit planner last month said he would evaluate an urban transit loop that would interface with Calgary’s existing LRT system using streetcars. • TORONTO • Tri-Rail is doubling its weekend and holiday service, and adding evening trains, as ridership rebounds.

Tri-Rail

Station to the Northern Alberta Institute of Technology, set to open in April 2014. Another line would run west from Churchill Station to Lewis Estates. A third line, again starting at Churchill Station, would serve the city’s southeastern quadrant, terminating at Mill Woods. Construction could begin in 2014. • CALGARY •

North America’s second “modern” LRT operation continued 1:03 PM Page 1 toFulmer expandRlwyAge12Wbtc with the opening6/21/12 Dec. 10, 2012 of Calgary

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The Toronto City Council in 2012 dramatically defied Mayor Rob and reinstated an updated version of an earlier 76-mile “Transit City” plan for expanding light rail/streetcar service; Ford had sought only expanded subway routes and perceived a “war on cars” in Canada’s largest city. Work does continue on the C$2.6 billion extension of the YongeUniversity-Spadina subway from Downsview to Vaughan. When completed in 2015, the 3.8-mile, route will carry more than 80,000 riders daily. Delivery of a 234-car, C$473 million “Toronto Rocket” subway car order from Bombardier also continues. Construction also continues on the Sheppard LRT, the first of seven lines under Transit City, which will include roughly 400 low-floor cars. Bombardier won a C$851 million order for 204 low-floor cars to re-equip the existing 49-mile streetcar system. The exact number for both orders remains somewhat in flux, pending funding from city, Ontario provincial, and federal sources. Work continues on multiyear improvement projects on the seven-line, 240-mile GO Transit rail network, including a C$281 million signal modernization by Siemens Canada that involves Toronto’s Union Station. Last December GO Transit exercised options for 10 years of fleet operations and maintenance services by Bombardier Transportation. Metrolinx, the regional transit agency overseeing the Greater Toronto Area, awaits six diesel multiple-unit (DMU) cars from Sumitomo Corp. of America, in conjunction with partner Nippon Sharyo, to be used for Air Rail Link (ARL), connecting Union Station with Lester B. Pearson International Airport. ARL will be covered by 18 DMUs when it opens in 2015, in time for the Pan Am Games. Plans for train service linking Toronto and Peterborough, northeast of Toronto, are on track for a July 2014 debut. • WATERLOO REGION, ONTARIO •

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

PassengeR Rail guiDe • MISSISSAUGA, ONTARIO •

Greater Toronto and Hamilton Area transport agency Metrolinx last November approved plans for a 14.2mile, C$1.6 billion light rail line in Mississauga, west of Toronto. Construction could begin within five years if local, provincial, and/or federal funding is identified, similar to the package triad put in place for Toronto.

Metropolitan Council

• OTTAWA •

Construction begins this year on roughly 7.8 miles of light rail transit, costing C$2.1 billion, which includes 13 stations and 1.5 miles of downtown LRV subway. will link Blair in the east with Tunney’s Pasture in the west. At Bayview, it will connect with the 4.5-mile O-Train, launched in 2001 as a diesel light railway transit (DLRT) operation. Last December the city selected Rideau Transit Group, a consortium including ACS Infrastructure Canada and SNC Lavalin, for the design-build-finance-maintain contract. The exact LRT route west of downtown remains unresolved.

The first Siemens S70 light rail cars have arrived for use in the growing LRT network serving Minneapolis/St. Paul.

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An employee-owned firm Offices nationwide Toll-free: 877-395-5459 info@stvinc.com www.stvinc.com

Exclusive of rolling stock, C$1 billion will be invested in the Société de Transport de Montréal (STM) Métro during the next decade. Soon to be awarded is a 765-car order to replace the entire Métro fleet. Agence Métropolitaine de Transport (AMT) had hoped to increase frequency on its VaudreuilHudson regional rail line this year, but has postponed the move until 2014. AMT’s five-line regional system will grow in size once work on the C$400 million, 36-mile Train de l’Est line opens, which will link Central Station with 11 new stations in northeast Montréal. AMT seeks to use Bombardier dual-power (diesel/ a.c. catenary) locomotives and Multilevel cars, but CN has balked at allowing the dual-mode locomotives over its right-of-way. The C$386 million, 160-car Multilevel order is aimed at boosting system capacity 70% by 2015. RA

Company profiles

Established in 1983. Railquip specializes in supplying track, car, and locomotive shop maintenance equipment to the railroad and rail transit industries on a turnkey basis, such as: • Underground and aboveground car hoists and body stands, including spin posts. • Truck hoists. • Turntables. • Truck frame turning and lifting devices. • Transfer tables. • Roof access platforms. • Mobile and stationary waste removal systems. • Truck assembly and test stands. • Portable railcar movers. • Portable hydraulic rerailing equipment. • Locked axle dollies. • Intermodal car lift. • Rail grinders. • Hi-rail equipped trailer. • Plastic cable channels. • Rail bound cranes. Railquip, inc. 3731 Northcrest Road, Suite 6, Atlanta, GA 30340 (770) 458-4157 • Fax: (770) 458-5365 E-mail: sales@railquip.com • Web site: www.railquip.com Helmut Schroeder, President

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Recognized as a leader in the transportation industry, STV is marking its 100th anniversary in 2012. A multidiscipline engineering, planning, architectural, and construction management firm, our full spectrum of services range from feasibility and environmental studies, infrastructure and systems engineering, and vehicle procurement to design-build-operate-maintain projects. Our expertise covers all aspects of railroad systems, including commuter rail, light rail, mass transit, and high speed rail as well as freight. An employee-owned firm, STV maintains 35 offices. STV 225 Park Ave. South, New York NY 10003 Tel.: 212/777-4400 • Fax 212/529-5237 www.stvinc.com • info@stvinc.com See Seeour ourad adon onpage pageG5 36

LTK Engineering Services has been serving the transportation industry for the past 60 years. Headquartered in Ambler, PA, the firm has offices in Atlanta, Boston, Chicago, Dallas, Denver, Lebanon (NH), Los Angeles, Minneapolis, New York, Newark (NJ), Pittsburgh, Portland, Santa Rosa (CA), Seattle, Washington D.C., Toronto, Canada with a staff of over 230 professionals. LTK has participated in the planning, design and development of nearly every rail transit system in North America, providing unmatched technical expertise and program management capabilities in rail vehicle and systems engineering and operations planning/simulations. LTK’s systems services include design of Traction Electrification, Corrosion Control, Signaling and Train Control, Communications, Revenue Management and Fare Collection Systems, and Operations and Maintenance Facilities. See our ad on page 35

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

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

Last Update Effective:

FRA Part #

Last Update Effective:

40 . . . . . . . . .10-3-12 209 . . . . . . . .2-12-13 210 . . . . . . . .8-14-89 211 . . . . . . . .7-20-09 213 A-F . . . . .6-25-12 213 G . . . . . .9-13-10 214 . . . . . . . .6-25-12 215 . . . . . . . .6-25-12 216 . . . . . . . .6-25-12 217 . . . . . . . .6-25-12 218 . . . . . . . .6-25-12

219 220 221 222 223 224 225 228 229 230 231

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

FRA Part #

232 233 234 235 236 237 238 239 240 242

Last Update Effective:

. . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .7-13-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12 . . . . . . . .6-25-12

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

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

Railroad Safety Enforcement Procedures & Rules of Practice Track Safety Standards (Subpart A-F) Track Safety Standards (Subpart G) Railroad Workplace Safety Railroad Freight Car Safety Standards Railroad Operating Rules and Practices Railroad Communications Rear End Marking Device, Passenger, Commuter & Freight Trains BKHORN 222 Use of Locomotive Horns BKRFRS 224 Reflectorization of Rail Freight Rolling Stock BKHS 228 Hours of Service BKLSS 229 Locomotive Safety Standards BKSLI 230 Steam Locomotive Inspection BKSAS 231 Railroad Safety Appliance Standards BKBRIDGE 237 Bridge Safety Standards BKLER 240 Qualification and Certification of Locomotive BKCONDC 242 Conductor Certification BKBSS

232

Brake System Safety Standards

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8.95 8.55 8.55 6.25 8.55

8.25 7.85 7.85 5.85 7.35

4.15 3.50

3.80 2.75

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

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Drug and Alcohol Regulations in the Workplace Part 40 & 219

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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 229 Locomotive Safety Standards 231 Safety Appliance Standards 232 Brake System Safety Standards

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The Railway Educational Bureau

49 CFR Part 209 Railroad Safety and Enforcement Procedures and Rules of Practice: FRA is revising its regulations to reflect amendments to certain statutory civil monetary penalty provisions effected by the Moving Ahead for Progress in the 21st Century Act (MAP-21), which was enacted on July 6, 2012. These statutory amendments became effective on October 1, 2012. Pursuant to the Act, FRA is eliminating the minimum penalty for other than a training violation and adjusting both the ordinary maximum penalty and the aggravated maximum penalty that applies when assessing a civil monetary penalty for a violation of the Federal hazardous materials transportation laws or a regulation, special permit, or approval issued under those laws. FRA is also revising references to these minimums and maximums in its civil penalty assessment guidelines to conform to these statutory changes. Effective Date: This rule went into effect February 12, 2013.

46.00

17.50

35.00

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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.

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A rEfinED grinD

Examining various elements of the grinding process push technology and equipment forward. By Mischa wanek-liBMan, engineering editor

lbow grease was the main driver of track maintenance a century ago; today, it’s technology. When it comes to the grinding process, everything from close cooperation with railroads to continued study of rail deterioration and grinding stone movement is analyzed in order to push the process toward continued advancement.

Sustainable strategy

Vossloh Rail Services is developing a High Performance Rail Milling Technology that will be operational by the end of 2014 and will be releasing a transit application of its HSG, High Speed Grinding, technology in 2013. According to Ron Martin, vice president and general manager, the HSG-city is specifically developed for the demands of transit systems focusing on preventative grinding, noise reduction, and corrugation removal. Powerful vacuums encapsulate the HSG-city’s grinding unit to capture all dust and sparks, which eliminates the requirement of cleaning the tunnels. The 24 passively driven grinding stones operate “virtually noiseless” at speeds between 15–38 mph and approximately 13 miles of rail can be ground nonstop. “Similar to use on high speed and mixed transport lines with the larger system, rail grinding in local transport with HSG technology is possible without train schedule

disruption,” said Martin. “Due to changing environmental conditions, such as leaves or dirt getting on the rail, a lowfriction coating can threaten operational safety. This may cause numerous problems to the rail and signal systems. Grinding cleans the rail, and thus, restores optimal wheel-rail contact, as well as the conduction of reverse current.” Vossloh Rail Services’ utilizes passively driven grinding stones on its High Speed Grinder, which adapt automatically to the rail’s profile. In the new HSG-2 generation, the grinding units can be individually adjusted to dedicated areas of the rail head to actively influence the rail profile. The company ensures a documented result by taking measurements of the longitudinal and the cross profile, as well the rail surface before and after grinding. Martin says that for future works, an on-board eddy current measuring device is planned to adapt the grinding strategy just in time to the demand of the rails. The company believes a combination of track inspection and rail maintenance is essential to developing a sustainable strategy for long-term optimization of the track conditions, which is why Vossloh Rail Services works closely with properties using its systems. Preventative and acoustical grinding

Plasser American employs two main elements on its machines to accomplish grinding: Grinding units with March 2013 Railway age 43

Rail gRinding

oscillating movement and continuous work speeds. The company says the vertical force acting on the grinding units is hydraulically adjustable for precision results. The grinding stones, which can be water lubricated, adapt to the rail profile, resulting in rail irregularities being smoothed independently without creating grinding sparks. The grinding results of the rail surface are recorded for documentation and quality control purpose. While Plasser points out its oscillating grinding technique is well proven, the company is working to optimize it in order to provide additional economical advantages to its customers. When it comes to determining the most valuable grinding strategy, Plasser says preventative grinding of new rail and acoustical grinding are two important areas of application. Plasser points to various tests on different railway systems that show preventative grinding can delay surface flaws by more than 60 mgt and remove roughness from new rail, a result of the rail manufacturing process, which can slow down the appearance of surface ripples. The company says its grinding process, the previously mentioned combination of oscillating grinding units and continuous machine speed, creates an optimum rail surface, which contributes to noise reduction and can be referred to as acoustical grinding. “Many years of experience have shown that an oscillating

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Railway age

March 2013

grinding machine of the GWM series can produce a lower acoustical level, which is especially advantageous for tracks running through populated areas,” said Plasser. “The use of a GWM-550 between Sustern and Echt in Germany in June 2007 showed that by the use of oscillating grinding and reduction of surface roughness, the noise emission was lowered by 12 dBA. At Taegu Subway, Korea, an immediate noise reduction of 5 dBA was achieved using a GWM-250.” Studying the process

Loram Maintenance of Way says an intense focus on the latest technology improves equipment speed, performance, and reliability, an understanding of the correlation between grind quality and the pre-inspection process, and continued research of rail deterioration helps advance the company’s grinding process. Darwin Isdahl, vice president, Asset Management Services, says grind quality begins with a well-defined pre-inspection process. Loram uses a rail inspection vehicle to measure rail profiles, which are then compared to a pre-determined optimal template and combined with an assessment of the rail surface condition to determine the depth of cut. “These two elements are essential to develop an accurate grind plan. The grind plan includes speeds, grind motor locations and number of passes required. This plan is then fed

automatically into the grinder’s computerized control system. The horsepower of the grind motors is then adjusted as the machine speed varies to gain maximum production capabilities based on operating conditions, while maintaining consistent metal removal,” said Isdahl. “Our production grinders all feature an onboard profile measurement system to check compliance to the optimal profile, along with an encoder/ DGPS location system that automatically selects the proper template for the track location. The grinding parameters and profile data is analyzed, stored, and available for future reference. Continuous improvement is made by analyzing the results of metal removal tests, evaluating results after grinding and soliciting feedback from the inspection personnel.” In addition to studying the grinding process, Loram works closely with the railroads in determining required parameters and how quality will be monitored. Loram recently entered into an agreement with a Class 1 railway to develop grind schedules, provide training, and work on continuous improvement activities to increase the benefits of grinding. Consistent maintenance regime

Rail structure, says Harsco Rail, can be varied with its differing contours and impurities and in an application where accuracy is a must, technological assessments are instrumentally valuable when determining how to achieve a rail’s

desired wheel/rail contact. Harsco works closely with railroads and emphasizes the use of various technological grinding applications during the inspection, execution, and evaluation phases of the process. Along with designing and manufacturing grinding equipment, Harsco employs rail consulting services that work directly with rail customers for their strategic and tactical issues about track construction, management, and maintenance. According to Harsco, this group collects valuable insight in dialogue with customers and delivers solutions beyond the use of equipment. The rail consulting department uses its SmartGrind system, a laser-based rail profile measurement system, to measure the rail profile before and after grinding and align the target profile to the measured profile. “The target profile can be specified by any user for the desired rail profile and can vary by degree of curvature and high/low rail elevation,” says Joseph Palese, Harsco Rail’s senior director of engineering and technology for its consulting services. “The result is the conformity of the currently measured rail profile to the desired profile, in the form of a Grinding Quality Index (GQI). “This conformity is also expressed as a difference curve or the amount of metal to be removed (by location across the rail head) in order to achieve conformity,” he says. rA

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Betsworth Union Pacific

Meetings HigH Profile Union Pacific Railroad has named Kate Betsworth Vice President-intermodal Operations. Betsworth will direct UP’s intermodal facilities and network operations, responsible for meeting customer service requirements for the business segment. Betsworth has more than 18 years of experience with UP, most recently as assistant Vice President and genergal Manager. She earned her degree in business administration from iowa State University. Betsworth replaces Barry Michaels, who left the company to pursue other interests.

CANADIAN NATIONAL—Jim Vena appointed executive Vice-President and COO, based in the company’s Montreal office. Jeff Liepelt replaces Vena as Senior VicePresident, Southern Region, based in CN’s Homewood, ill., office. NORFOLK SOUTHERN—Jason T. Reiner has been named assistant Vice President industrial Development suceeding Newell M. Baker, who is retiring. UNION PACIFIC—Donna Kush named Vice president, Public affairs-Northern Region, effective april 1, succeeding Joe Bateman, who will serve as Vice Presidentgovernment Relations, operating in an advisory capacity until his retirement Oct. 1. Brenda Mainwaring was named Vice President Public affairs- Southern Region effective april 15, succeeding Joe Adams, who will retire May 31. Tom Lange will be promoted to assistant Vice President-Corporate Communications, succeeding Donna Kush. David Giandinoto was named assistant Vice President and general Manager-Union Pacific Distribution Services (UPDS). Neil Scott was named general Superintendent Transportation Services-Chicago Service Unit. John Turner named general Superintendent Transportation Services-Utah Service Unit.

SUPPLIERS Georgetown Rail Equipment Co. has hired Gregory Bilhartz to serve in the newly created position of Director, Business Development. 46

Railway age

March 2013

L.B. Foster named James F. Tanner general Manager, Rail Technologies. RJ Corman announced Craig King has been appointed president of R.J. Corman Railroad group, llC. TranSystems named Bruce Anderson, P.E., an assistant Vice President in the firm. David Maas has been promoted to Senior Vice President. Paul Hentschke has been promoted to assistant Vice President. Unitrac Railroad Materials, Inc. appointed Kelly Kelly to marketing coordinator, based in Chicago.

100 YEARS AGO in

(MARCH 1913) TRAFFIC NEWS “Salmon Day,” March 14, was celebrated this year for the first time. Throughout the northwestern states, and to some extent in other parts of the country, it is declared by its promoters to have been a great success; they proposed to do the same thing again next year. About 40 railroads are represented in Seattle, and all of these lines have joined in the movement, and had salmon served on their dining cars. The northern transcontinental lines served portions of the fish to diners free on that day. J.M. Norton, general agent of the Missouri Pacific, at Seattle, was chairman of the committee; the Seattle Transportation Club, of which he is a member, gave a dinner to the salmon packers, at which 300 guests assembled.

April 2-3 Railway Age and Marine Log The New Intermodal Age Conference & Expo Hyatt Regency Baltimore on the inner Harbor, Baltimore, Md. Jane Poterala, Tel.: 212-620-7209; email: jpoterala@sbpub.com; website: www.railwayage. April 17-19 New Jersey TransAction Conference 2013 Tropicana Hotel, Casino & Conference Center, atlantic City, N.J. email: njtransaction@aol.com. April 27-30 ASLRRA 2013 Annual Conference (100th Annual) atlanta Marriott Marquis, atlanta, ga. Tel.: 202-6284500; email: aslrra@aslrra.org; website: www.aslrra.org. June 2-5 APTA Rail Conference Philadelphia Marriott Downtown, Philadelphia, Pa. lynne Morsen, Tel.: 202-496-4853; email: lmorsen@apta.com; website: www. apta.com.

September 29-October 2 Railway Interchange 2013 indianapolis, ind. Carol Steckbeck, Tel.: 919-303-5140; email:csteckbeck50@gmail.com; website: www. railwayinterchange.org/ registration.html.

October 15-16 Railway Age Passenger Trains on Freight Railroads

washington Marriott, washington, D.C.

Jane Poterala, Tel.: 212-620-7209; email: jpoterala@sbpub.com; website: www.railwayage.com.

Products Harsco Rail delivers updated spreader-ditcher machine Harsco Rail, a division of Harsco Corp., has released its updated Harsco Spreader-Ditcher, a versatile machine used to plow heavy snow, spread ballast, and cut trackside ditches. at 150,000 pounds and 50 feet long, it is equipped with an operator control cab, front plow, side wings, two non-powered bogies, aaR couplers, and an aPU for electrical/hydraulic power. it can be pushed by one or multiple locomotives to achieve high traction and speed for maximum plowing effectiveness. Originally designed in the 1960s, the Harsco Spreader-Ditcher has been updated to meet todayâ&#x20AC;&#x2122;s requirements, and includes features and options such as in-cab locomotive controls, hydraulic locks, insulated walkways, heated windows, train line air brake controls, and egress safety windows. Operators can not only fend off snow and ice, but also achieve the benefits in ballast spreading and ditching efforts. Recently, two railroads recognized a need for an updated machine to assist with their winter maintenance and summer roadbed reprofiling programs. The railroads ordered Harsco

Spreader-Ditchers in order to prepare for snow and ice that would potentially cover tracks, slow operations, and interfere with maintenance. The first machine was delivered last December; the second was set to arrive a month later.

March 2013 Railway age 47

Products Photovoltaic H4 connector from Amphenol Global

amphenol industrial global Operationsâ&#x20AC;&#x2122; photovoltaic (PV) H4 connector is TUV-certified to 1,500 V and meets the requirements of ieC eN 50521, Certificate #: R-72123201. PV module manufacturers can now offer customers a single field-installable connector that meets f both Ul (Underwriters laboratories) and ieC (international electrotechnical Commission) standards). H4 connectors feature RaDSOK technology, offering the highest current ratings and lowest contact resistance resulting in lower power losses and improved reliability. Compatible with industry-standard connectors. Meets NeC 2011 requirements without the need for extra locking collars or locking sleeves. RoHS-compliant. available in four different gauges: 14 awg rated at 32 a, 12 awg rated at 40 a, 10 awg rated at 44 a and 8 awg rated at 65 a. Contact amphenol, email: mfarrelly@amphenol-aio.com; website: www.amphenol-industrial.com.

Lat-Lon launches an app for mapping and monitoring lat-lon llC has unveiled a fleet management app available for Droid and apple devices, compatible with iPhone, iPod, iPad, and most android 2.2 and newer operating systems. it can be used by existing lat-lon product owners and website users that have hardware to track industrial assets, including railcars, locomotives, trailers, containers, and heavy equipment. Frequently monitoring critical information about equipment or shipped goods, the units are able to report location, temperature, pressure, humidity, run status, and more. all of the data reported from hardware can be customized in the administrative Online Tool to generate tailored messages for view in the app. One can retrieve information remotely with the added feature of proximity and direction from the internal gPS of the mobile device in use. Four features enable users to view messages, determine which units are nearby, view alerts, and navigate to a specific unit. Contact lat-lon llC, Tel.: 877-300-6566; website:www.lat-lon.com. 48

Railway age

March 2013

Ad Index Company

Phone #

Fax

Email address

Page #

aaR

202-639-2342

202-639-2558

preilly@aar.org

BNSF Railway

817-867-6418

817-352-7925

patrick.hiatte@bnsf.com

Dixie Precast

770-944-1930

770-944-9136

fbrown142@aol.com

ellwood Crankshaft & Machine

724-347-0250

724-347-0254

ecgsales@elwd.com

electro-Motive

800-255-5355

708-387-6626

genuineparts@emdiesels.com

Fulmer Company

724-325-7140

724-327-7459

jroberts@fulmer.com

Helm Financial Corp.

415-398-4510 ext 1610

415-398-4816

bwind@hlmx.com

Herzog Transit Services

214-596-2030

972-554-9415

rjsmith@htsi.com

indiana Rail Road Company The

317-822-7716

317 844-5558

bob.babcock@inrd.com

irwin

724-864-8900

724-864-0803

bspringer@irwincar.com

Kansas City Southern

816-983-1372

816-983-1590

doniele.c.kane@kcsr.com

lORaM

763-478-6014

763-478-2221

sales@loram.com

lTK engineering Services

215-641-8826

215-542-7676

tfurmaniak@ltk.com

New england Railroad Club

617-437-7810

617-437-0722

jbudzyna@aol.com

New york air Brake

607-257-7000

607-257-2389

paula@onlinesms.com

Norfolk Southern Corp

757-629-2706

757-629-2822

rsbroom@nscorp.com

NRC

202-715-2920

202-318-0867

info@nrcma.org

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

Soft Rail

888-872-4612

STV, inc.

212-777-4400

Transcore

C3,42,48

sales@signalcc.com

212-529-5237

info@stvinc.com

214-461-6443

800-923-4824

www.transcore.com

Vossloh group

00 49 239 252 273

00 49 239 252 274

info@vossloh-north-america.com

watco Companies

620-231-2230

620-231-0812

tvan@watcocompanies.com

Zurich

212-553-5698

212-225-7047

lisa.mollura@zurich.com

3 19 5

The advertisers index is an editorial feature maintained for the convenience of readers. it is not part of the advertiser contract and Railway age assumes no responsibility for the correctness.

Advertising Sales MAIN OFFICE Jonathan Chalon, Publisher 55 Broad St., 26th Floor New york, Ny 10004 (212) 620-7224 Fax: (212) 633-1863 jchalon@sbpub.com AL, AR, IN, KY, LA, MI, MS, OH, OK, TN, TX emily guill 20 South Clark Street, Suite 1910 Chicago, il 60603 (312) 683-5021 eguill@sbpub.com CT, DE, DC, FL, GA, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA, WV, CANADA – QuEbEC AND EAST, ONTARIO Mark Connolly 55 Broad St., 26th Floor New york, Ny 10004 (212) 620-7260 Fax: (212) 633-1863 mconnolly@sbpub.com

AK, AZ, CA, CO, IA, ID, IL, KS, MN, MO, MT, NE, NM, ND, NV, OR, SD, uT, WA, WI, WY, CANADA – Ab, bC, Mb, SK Heather Disabato 20 South Clark Street, Suite 1910 Chicago, il 60603 (312) 683-5026 Fax: (312) 683-0131 hdisabato@sbpub.com bELGIuM, PORTuGAL, SWITZERLAND, GERMANY, EASTERN EuROPE, bALTIC STATES, MIDDLE EAST, SOuTH AMERICA, AFRICA (EXCEPT SOuTH AFRICA), FAR EAST (EXCEPT KOREA, CHINA, HONG KONG, INDIA), ALL OTHERS, TENDERS louise Cooper international area Sales Manager The Priory, Syresham gardens Haywards Heath, RH16 3lB United Kingdom +44-1444-416917 Fax: +44-(0)-1444-458185 lc@railjournal.co.uk

SCANDINAVIA, THE NETHERLANDS, SPAIN, GERMANY, AuSTRIA, KOREA, HONG KONG, CHINA, AuSTRALIA, NEW ZEALAND, SOuTH AFRICA, RuSSIA, RECRuITMENT ADVERTISING Steve Barnes international area Sales Manager The Priory, Syresham gardens Haywards Heath, RH16 3lB United Kingdom +44-1444-416375 Fax: +44-(0)-1444-458185 sb@railjournal.co.uk ITALY, ITALIAN-SPEAKING SWITZERLAND Dr. Fabio Potesta Media Point & Communications SRl Corte lambruschini Corso Buenos aires 8 V Piano, genoa, italy 16129 +39-10-570-4948 Fax: +39-10-553-0088 info@mediapointsrl.it

JAPAN Katsuhiro ishii ace Media Service, inc. 12-6 4-Chome, Nishiiko, adachi-Ku Tokyo 121-0824 Japan +81-3-5691-3335 Fax: +81-3-5691-3336 amkatsu@dream.com CLASSIFIED, PROFESSIONAL & EMPLOYMENT Craig wilson 55 Broad St., 26th Floor New york, Ny 10004 (212) 620-7211 Fax: (212) 633-1325 cwilson@sbpub.com

March 2013 Railway age 49

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

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

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

proFessionAl directory strAteGic PLANNiNG: • Commuter rail tranSitionS • fra ComplianCe programS • operationS auditing

Kansas City Office (913) 661-2424 oPerAtioNs trAiNiNG & coNsULtiNG: www.tcsrailservices.com • engineer training & CertifiCation other services: • exCellent HiStory witH fra, ntSB • Staffing • interim management • meCHaniCal & part 238(Qmp)

recruitment

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

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

trAininG

Part 243 Training & Certification Part 242 Conductor Training Part 240 Engineer Training and re-certification -------------------------------------------------------Modoc Railroad Academy 916-965-5515 info@modocrail.com 50 Railway age

March 2013

TO ADVERTISE CONTACT Craig Wilson PH 212.620.7211 • FAX 212.633.1325 E-MAIL cwilson@sbpub.com

employment Head of Asian International Sales Florida East Coast Railway (FEC) is searching for a Sales and Marketing professional to lead its Asia Market International Sales. Given a large amount of travel is involved, it is not necessary for the position to domicile in Jacksonville, FL, home of FEC. This position will travel throughout the Asia Pacific territory on a regular basis to work with potential customers and key accounts. Knowledge of Asian languages is preferred. Our ideal candidate will have: • Minimum of 5 years of transportation/logistics experience with significant experience in transportation sales strategy develop ment in Asia and the Asia-Pacific region • Critical to the role is the ability and experience in conducting market and sales with BCO’s, jointly developing sales plans, and making sales calls to close opportunities (Previous overseas experience preferred, particularly in SE Asia) • Self motivator who takes ownership and have excellent organizational/reporting skills with the ability to meet project deadlines • Excellent writing, verbal communication, and strong present ing skills with in depth familiarization of MS Applications • Undergraduate degree in Transportation, Logistics or related field is required; graduate degree is preferred. www.fecrwy.com Please submit resume to: Employment@fecrwy.com

equipment sAle/leAsinG

Available For Lease

◆ 5,150 cu. ft. Pressure Differential (PD) Covered Hopper Cars. Food grade interior linings but don’t necessarily have to stay in food grade service. ◆ Mill Gondolas - 65’ 6” interior length with 5’ sides and 52’6 interior length with 4’6” to 5’ sides ◆ 4,240 cu. ft. Gondolas - Interior bracing still in place. OK for C&D, coke, scrap, aggregates, etc. ◆ 3,600 cu. ft. Open Top Hoppers. 45 degree slopes for aggregate, coke, coal, etc. ◆ Covered Hoppers - 5,250 & 5,750 cu. ft., trough hatch/gravty gates. For additional information and pricing, please contact John Goodwin phone (605) 582-8318 fax (605) 582-8304 www.carmathinc.com e-mail jgoodwin@mwrail.com

RAILCARS FOR LEASE

EXCEL

Railcar Corporation www.excelrailcar.com

12 Covered Hoppers 4,650 Cubic Foot Capacity AAR Rule 88 Extended Life, 263,000 GWR 6 PD Covered Hoppers 2,785 Cubic Foot Capacity 263,000 GWR, 1982 Built Call 630-657-1100

STEEL BODY ROTARY DUMP HI-SIDE COAL GONDOLAS

Western Farmers Electric Cooperative offers for sale 145 railcars previously used to deliver low sulfur Wyoming coal. For information & bid package call Ben Wetherill at 580-873-2201 x140 or email b_wetherill@wfec.com. Principals only. Proposals due 4/30/13.

employment

Working for The City of Calgary Would it ‘work’ for you? Rail Systems Co-ordinator Calgary Transit Closing date: March 28, 2013 Basic Job Information Business Unit: Calgary Transit Location: Calgary, Alberta, Canada Salary: $92,384 – 159,885 (CAD) per annum Responsibilities The Rail Systems Co-ordinator develops the vision, policy, standards and long-term strategy for Calgary Transit’s growing rail systems. This encompasses system upgrades, maintenance, evaluation and introduction of new technology, establishing best practices to ensure system functionality, and reliability in signals, traction power and communications.

For more information, or to apply for this position, please visit calgary.ca/careers. NOTE: Reimbursement of relocation expenses will be considered if the successful candidate lives outside the greater Calgary area.

2013-0613

Qualifications The successful applicant must possess an engineering degree and must be registered with The Association of Professional Engineers and Geoscientists of Alberta (APEGA) on the first day of work. A minimum of ten years experience is required. Direct related experience working with railway and transit systems and operations is required. Experience in areas of IT and purchasing would be considered assets.

calgary.ca | contact 311

Onward/ The City’s competitive offering and employee experience will enable the attraction and hire of qualified candidates from all segments of the community.

2013-0613 HR Recruitment Newspaper Ad_Feb.FINAL.indd 1

2013-0613 HR Recruitment Ad_Frb Publication: Railway Age Insert Date: March Issue

Size: 2col x 5col (7" x 5") Prints: Black

CSA: E. Reinhardt Writer: G. Veinotte P/A: M. Zielinski

13-02-27age 3:09 PM March 2013 Railway 51

Financial edge anthony KRuglinsKi

Issues and opportunities in subleasing cars

his month, Railroad Financial Corporation’s David Nahass discusses a phenomena taking place in the sometimes superheated railcar leasing marketplace in which he works: Today, discussions with operating lessors and lessees of tank cars often produce the same complaint: The market for tank cars is tight and rents are high. Tank cars, especially those hauling crude in Texas and North Dakota, are in short supply and high demand. Prices have been rising since 2011 on tank cars and the backlog for new builds is out until the second half of 2014 with the exit ramp for 2015 coming up fast. One consequence of the dramatic increase in demand for tank cars is that many lessees have opportunities to sublease cars at a profit! These can be cars leased as far back as 2008 when a car leasing today for more than $2000 per month was leasing for $200 per month. This market imbalance creates a subleasing opportunity for the lessees and a problem for the lessors that own the cars. Lessees, seeing the marketability of their leased assets, may look to take advantage of the current price run-up and sublease those cars for a tidy profit. Lessors, on the other hand, likely are not keen on a customer competing with them in the marketplace or, worse, changing commodities, lessee credit, and annual mileage on cars leased for a specific purpose. Same issue, two different points of view. From the Lessor’s point of view: • The lessor is the owner of the assets and is focused on their residual value. No matter what the commodity or the rental rate, a lessor views its asset as a long lived asset that it hopes to use for its entire useful life. As anyone that has ever been a lessee would tell you,

Railway age

March 2013

lessors are protective of their assets. • The lessor has assumed certain facts about its lease for the equipment that are not likely to be factored into the sublease. These include possible additional insurance, the commodity being loaded into the cars, and the annual mileage that cars may travel. A change in the commodity may cause corrosion; a certain commodity may not work well with a valve or a specific unloading package. The damage to a car’s interior may be severe.

Some guidelines exist to reach resolutions that are effective and productive. • The lessor assumes a liability profile for its lessee. A change in those terms may require added documentation, a revision to the underwriting of the credit, and a different maintenance reserve. • Many lessors are concerned that a breach under a sublease will become their problem and not be solved before the lease with its lessee ends. From the Lessee’s point of view: • The lessee took the risk in leasing the railcars in the first place. If the market for the cars is overheated, why shouldn’t the lessee take advantage of its business savvy and sublease the gear? • Storage and rent are expensive. If a Lessee can find ways to offset those expenses and make some profit, then who is a lessor to stop them? • The concerns of a lessor are

overblown. The commodities most in demand right now are not corrosive. Excess mileage, if any, is covered in the lease agreement. • The lessee is getting insurance from its sublessee. All parties view these issues differently. Some guidelines exist to reach resolutions that are effective and productive, not controversial and divisive. If you are the Lessee, try these options before you take matters into your own hands and potentially cause a default under your lease. 1. Communicate: Reach out to your lessor and find out what is necessary to make a switch for the service of your cars. 2. Honor your commitments:Your lessor is standing behind their commitment to you, so stand behind the commitments you made when you signed the lease. 3. Be prepared to share the upside: Any counterparty may be more willing to grant a sublease right if they are being paid to do so. 4. Don’t blindside your lessor: Call before you have made a commitment to sublease rather than after you have already done so. If you are the Lessor, give your lessee clear guidelines on your expectations. Even in a tight market, a standalone “no” is not good customer service. 1. Remember the long game: The fact is that at some point this market will turn. As the inventory of off-lease cars grows, lessees will remember who worked with them and who didn’t. 2. Offer advice and assistance: Lessors have seasoned professionals handling their contract negotiations. Share those resources to benefit your customers and protect yourself. 3. Honor your commitments: Every proposal letter says something akin to “we are happy to be working with you.” Stand behind your commitment to customer service.

NEW ! Train Wreck The Forensics of Rail Disasters

Emergency Responder’s Guide to Railroad Incidents

by George Bibel Trains are massive – some weigh 15,00 tons or more. When these metal monsters collide or go off the rails, their destructive power becomes clear. In this book George Bibel presents riveting tales of trains gone wrong, the detective work of finding out why, and this safety improvements that were born of tragedy. The book details 17 crashes in which more than 200 people were killed. Readers follow investigators as they sift through the rubble and work with computerized event recorders to figure out what happened. 368 pages. Hard cover.

by Greg A. Rhoads HazMat training is growing increasingly important in today’s world—it seems everyone is concerned about dangerous movements through their community. Emergency Responder’s Guide to Railroad Incidents is the first training manual on the entire scope of railroad emergencies addressing hazards, safe operating procedures, and resources responders can apply to incidents involving rail operation. The book is packaged with a companion CD containing an electronic book and hotlinks to case studies and important Web sites. (2007) softcover, 226 pages.

BKTW

BKERGRAIL

Train Wreck

$29.95

Emerg. Responder’s Guide

$30.00

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

BKATAS

Pro. Railroad Atlas of No. Am.

$77.95

Freight Car

Dictionaries

Conductor Certification • BKCONDC • $10.00

Guide to Freight Car Air Brakes • BKFCAB • $68.75

Mechanical Department Regulations • (Parts 210, 215, 216, 217, 218, 221, 223, 225, 229, 231, & 232) • BKMFR • $26.95

Guide to Freight Car Trucks • BKFCT • $82.50

Railway Age’s Comprehensive Railroad Dictionary • BKRD • $29.95

Transit

General

Locomotive

Urban Transit: Systems & Technology • BKUTST • $145.00

FRA Regulations

Track Safety Standards, Subparts A-F • BKTSSAF • $8.95

2012 Emergency Response Guidebook • BKERG • $8.95 Safety on the Rails - The Union Switch & Signal Story • by Joanne L. Harris • BKSOTR • $39.99 Understanding the Railway Labor Act • by Frank N. Wilner • BKURLA • $39.95

1997 Car and Locomotive Cyclopedia • BKCLC97 • $99.00 Dispatching

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

Coal Trains: The History of Railroading and Coal in the United States • BKCOAL • $37.00

Guide to Couplers and Draft Systems • BKCDG • $59.75

Guide to Locomotive Mechanical Maintenance - SD & GP Locomotives • BKGLMM • $31.25

The Modern Locomotive Handbook • by J. C. Kissinger • BKMLH07 • $19.75 Maps & Atlases

Railroads of Canada Wall Map (laminated) • MPRRCAN • $99.00 Canadian Rail Atlas • BKCANAT • $76.95

Railroads of the Continental United States Wall Map (laminated) • MPWML07 • $39.95 Training Videos (DVD)

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

Daily Locomotive Inspection (DVD format) • DVLOCO • $225.00

Managing Railroad Transportation • BKMRT • $39.95

Railroad Hearing Conservation Training (DVD format) • DVHEAR • $149.00

Introduction to North American Railway Signaling • BKINARS • $50.00

Blue Signal Protection (DVD format) • DVBLUE • $195.00

Dictionary of Railway Track Terms • by Chris Schulte • BKRTT • $29.50

Amtrak: Past, Present, Future • BKAMTRAK • $34.95

Urban Transit: Operations, Planning & Technology • BKUTOPE • $150.00

Public Transportation: On the Move • by Marc Wortman, PhD • BKPTRANS • $60.00

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