Railway Age December 2021 by Railway Age

DECEMBER 2021

W W W. R A I LWAYA G E .C O M

AILWAY GE S E R V I N G T H E R A I LWAY I N D U S T R Y S I N C E 1 8 5 6

CLEAR TRACK AHEAD? Railroads Face an Uncertain Regulatory Regime and Problematic Economy

A SMOOTH ONE

The Road to Better Grade Crossing Ride Quality

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2022 Outlook

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Clear Track Ahead?

Grade Crossing Surfaces

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Industry Indicators Industry Outlook Market People Professional Directory Classified Advertising Index

COMMENTARY 2 8 32

From the Editor Financial Edge ASLRRA Perspective

COVER PHOTO Switch position indicator light at Montana Rail Link Helena Yard. Bruce Kelly photo.

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December 2021 // Railway Age 1

They’re looking for some friendship, a warm body to talk to. People don’t rush on a train, because that’s not what trains are for. How do you put a dollar value on that? What accounting line does that go on?” “It’s not getting from A to B. It’s not the beginning or the destination that counts. It’s the ride in between ... This train is alive with things that should be seen and heard. It’s a living, breathing something—you just have to want to learn its rhythm.” “Trains had a nostalgic magnetism that was undeniable, even for the many Americans who’d never even been on one.” “I’m not saying that riding the train will change your life, or that passenger rail will be a big moneymaker one day. But no matter how fast we feel we have to go, shouldn’t there be room for a train, where you can just sit back, take a breath, and be human for a little while? Just for a little while? Is that so bad?” I was thoroughly enchanted with my first Lionel train set in 1963. I believe it set the stage for a career in railroad journalism that began 29 years later at Railway Age, and still captivates me, at 62. As the gruff but kind-hearted conductor in the movie version of Chris Van Allsburg’s The Polar Express says to the main character, a little boy who’s no longer skeptical about Christmas, “One thing about trains: It doesn’t matter where they’re goin’. What matters is deciding to get on.” From all of us at Railway Age and the Simmons-Boardman Rail Group, Merry Christmas, and Happy, Healthy and Safe New Year. Thanks for deciding to get on.

EDITORIAL AND EXECUTIVE OFFICES Simmons-Boardman Publishing Corp. 88 Pine Street, 23rd Fl. New York, NY 10005-1809 212-620-7200; Fax: 212-633-1863 Website: www.railwayage.com ARTHUR J. McGINNIS, Jr. President and Chairman JONATHAN CHALON Publisher jchalon@sbpub.com WILLIAM C. VANTUONO Editor-in-Chief wvantuono@sbpub.com MARYBETH LUCZAK Executive Editor mluczak@sbpub.com BILL WILSON Engineering Editor/Railway Track & Structures Editor-in-Chief wwilson@sbpub.com DAVID C. LESTER Managing Editor, Railway Track & Structures dlester@sbpub.com HEATHER ERVIN Ports and Intermodal Editor/Marine Log Editor-in-Chief hervin@sbpub.com Contributing Editors David Peter Alan, Roy Blanchard, Jim Blaze, Nick Blenkey, Sonia Bot, Peter Diekmeyer, Alfred E. Fazio, Don Itzkoff, Bruce Kelly, Ron Lindsey, Ryan McWilliams, David Nahass, Jason H. Seidl, David Thomas, John Thompson, Frank N. Wilner, Tony Zenga Art Director: Nicole D’Antona

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like inclusion, but I disdain the stultifying requirement imposed by some sectors of our society to be politically correct, particularly with language. While “Happy Holidays” or “Season’s Greetings” is perfectly fine, I prefer a hearty “Merry Christmas!” So here, at this time of the year when folks like me who grew up and still reside in the Northeast look forward to some Christmas snow (though not too much), are a few passages about a tradition that still warms the hearts of many: that magical combination of Christmas and trains. These are from the pen of New York Times best-selling author David Balducci, from his novel The Christmas Train: “It’s my experience that most folks who ride trains couldn’t care less where they’re going. For them it’s the journey itself and the people they meet along the way. You see, at every stop this train makes, a little bit of America, a little bit of your country, gets on and says hello. That’s why trains are so popular at Christmas. People get on to meet their country over the holidays.

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Industry Indicators ‘SUPPLY CHAIN ISSUES AND AN ECONOMY THAT ISN’T YET WHAT IT COULD BE’ “U.S. rail volumes continue to be impacted by supply chain issues and an economy that isn’t yet what it could be,” the Association of American Railroads reported last month. “October was the eighth straight month in which total carloads were higher than the same month in 2020, but the 3.8% gain in October was the lowest gain in those eight months. Total carloads in October 2021 were down 3.1% from October 2019. Excluding coal, they were up 2.2% over 2020 and up 0.9% over 2019. Supply chain problems (especially shortages of dray trucks, drivers, and warehouse space) kept U.S. intermodal volume down in October—it fell 7.9% from October 2020, its third straight year-over-year decline.”

Railroad employment, Class I linehaul carriers, OCTOBER 2021 (% change from OCTOBER 2020)

TOTAL EMPLOYEES: 114,182 % CHANGE FROM OCTOBER 2020: -2.2%

Transportation (train and engine) 47,000 (+0.54%)

Executives, Officials and Staff Assistants 7,233 (-1.30%)

TRAFFIC ORIGINATED CARLOADS

FOUR WEEKS ENDING OCT. 30, 2021

MAJOR U.S. RAILROADS BY COMMODITY

OCT. ’21

OCT. ’20

% CHANGE

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

99,738 3,176 37,911 26,722 130,446 38,398 257,982 4,233 13,810 21,987 24,760 14,373 35,155 17,322 52,532 80,285 14,097 33,093 15,912 25,081

106,113 3,851 37,000 24,942 122,262 40,893 238,199 4,132 12,906 20,826 20,388 10,540 30,491 15,882 62,019 74,954 14,047 32,838 15,132 25,088

-6.0% -17.5% 2.5% 7.1% 6.7% -6.1% 8.3% 2.4% 7.0% 5.6% 21.4% 36.4% 15.3% 9.1% -15.3% 7.1% 0.4% 0.8% 5.2% 0.0%

TOTAL U.S. CARLOADS

947,013

912,503

3.8%

313,833

317,556

-1.2%

1,260,846

1,230,059

2.5%

CANADIAN RAILROADS TOTAL CANADIAN CARLOADS

COMBINED U.S./CANADA RR

Professional and Administrative 9,747 (-5.91%)

Maintenance-of-Way and Structures 28,253 (-1.84%)

Maintenance of Equipment and Stores

Intermodal

FOUR WEEKS ENDING OCT. 30, 2021

MAJOR U.S. RAILROADS BY COMMODITY

OCT. ’21

Trailers Containers TOTAL UNITS

82,014 995,501

17,275 (-7.53%)

CANADIAN RAILROADS

Transportation (other than train & engine)

Trailers Containers TOTAL UNITS

OCT. ’20

% CHANGE

92,217

1,077,515

1,077,698 1,169,915

-11.1% -7.6% -7.9%

0 280,886 280,886

0 318,026 318,026

— -11.7% -11.7%

92,217

4,674 (-4.65%)

COMBINED U.S./CANADA RR

Source: Surface Transportation Board

Trailers Containers

82,014 1,276,387

1,395,724

-11.1% -8.6%

TOTAL COMBINED UNITS

1,358,401

1,487,941

-8.7%

Source: Rail Time Indicators, Association of American Railroads

4 Railway Age // December 2021

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TOTAL U.S./Canadian CARLOADS, OCT. 2021 VS. OCT. 2020

1,260,846 OCTOBER 2021

AILWAY GE

1,230,059 OCTOBER 2020

Short Line And Regional Traffic Index CARLOADS

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

ORIGINATED OCT. ’21

ORIGINATED OCT. ’20

% CHANGE

54,908 14,354 24,146 12,170 31,925 7,907 9,827 2,809 18,158 8,412 2,605 2,060 18,613 16,292 51,596 12,954 73,494

49,066 14,522 19,773 11,057 34,794 7,513 9,321 2,790 16,000 10,395 1,594 2,094 16,931 15,391 44,183 10,791 73,448

11.9% -1.2% 22.1% 10.1% -8.2% 5.2% 5.4% 0.7% 13.5% -19.1% 63.4% -1.6% 9.9% 5.9% 16.8% 20.0% 0.1%

TOTAL U.S. Carloads and intermodal units, 2012-2021

(in millions, year-to-date through OCTOBER 2021, SIX-WEEK MOVING AVERAGE)

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7/27/21 3:02 PM

Canadian Pacific-Kansas City Southern Transaction Reaches Two Milestones CANADIAN PACIFIC (CP) AND KANSAS CITY SOUTHERN (KCS) last month received the required Mexican regulatory pre-transaction control approvals for their proposed combination, Canadian Pacific Kansas City. CP and KCS reported the approvals by the Mexican Federal Economic Competition Commission (COFECE) and Mexican Federal Telecommunications Institute (IFT) on Nov. 26—a move that Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl anticipated in his Nov. 23 column on KCS. A few days before the COFECE/IFT approval, the Surface Transportation Board (STB) accepted for consideration the CP-KCS merger application, which was submitted on Oct. 29. It reported that the application is “complete as it contains all information required by the Board’s regulations.” STB also adopted a procedural schedule that sets deadlines for comments, responsive applications, final briefs and other filings—all of which come before it makes a final decision. The STB review is 6 Railway Age // December 2021

expected to be completed in fourth-quarter 2022, according to CP and KCS. Mexican regulatory approval “is an important milestone that marks the next step on our path to creating the first singleline rail network linking the U.S., Mexico and Canada,” CP President and CEO Keith Creel said. “This historic combination will add capacity to the U.S. rail network; create new competitive transportation options; support North American economic growth; and deliver important benefits to customers, employees and the environment.” “We are very excited to be working with CP to bring the benefits of this end-to-end combination to fruition,” KCS President and CEO Patrick J. Ottensmeyer said. “Together, we will unlock the full potential of our networks to provide new single-line offerings and industry-best service that will dramatically expand competitive transportation options across North America.” STB’s Nov. 23 acceptance of the merger application countered Union Pacific’s Nov. 19 petition to reject the application as incomplete. UP asserted that

the application “does not include all the information needed to satisfy the market analyses and operational data requirements under 49 C.F.R. §§ 1180.7 & 1180.8,” STB explained in its decision. “Specifically, UP argues that the rail-to-rail diversion analysis excludes 32% of potentially divertible traffic, which UP claims critically undermines the market analyses and operating plan, as well as environmental analysis under NEPA. … UP further contends that Applicants fail to support impacts on competition, passenger services and freight service on tracks used jointly with other railroads. … Lastly, UP asserts that Applicants should be required to submit a Service Assurance Plan, as required for cases filed under the Board’s current rules in light of representations made in filings to the Securities and Exchange Commission regarding possible service disruptions during the integration process. …” CP and KCS on Nov. 22 filed a reply, “arguing that UP’s petition was late-filed and that none of UP’s arguments warrant rejection of the Application,” according to the STB. Also on Nov. 22, CN filed a comment in support of UP’s petition. “The Board’s regulations provide the ‘greatest leeway to develop the best evidence on the impacts of each individual transaction.’ 49 C.F.R. § 1180.7,” STB noted. “Here, Applicants chose a particular traffic dataset to be used in their diversion analysis model and explained those choices in the Application. UP’s arguments, submitted near the end of the Board’s 30-day period to review the completeness of the Application, effectively express disagreement with Applicants’ modeling choices and question the adequacy of certain supporting evidence underlying Applicants’ analysis. But, given that Applicants have provided explanations and supporting data and workpapers regarding those choices, such concerns are more appropriately raised as a response to the merits of the Transaction. The Board finds that UP’s arguments regarding the diversion analysis model do not provide a basis for rejecting the Application as incomplete. Applicants have presented a prima facie case, disclosing facts that, if construed in their most favorable light, are sufficient to support a finding that the proposed transaction is consistent with the public interest.” railwayage.com

Canadian Pacific

Industry Outlook

Market Alstom Wins GO Transit Bilevel Overhaul Contract Metrolinx has awarded Alstom a $133.45 million (C$171 million) contract to conduct a mid-life overhaul/upgrade of 94 GO Transit Series VII bilevel regional/commuter railcars, which were built between 2003-08 by Bombardier Transportation (acquired by Alstom earlier this year). Alstom will perform the work over the next two years at its Thunder Bay, Ontario, facility. Interior work will include installing new outlets with USB ports; making cosmetic updates to paneling and flooring; replacing all rider seating; upgrading washrooms; and installing LED lighting.

NORTH AMERICA

ALSTOM has agreed to divest its Coradia Polyvalent platform, its Reichshoffen production site in France and its Talent 3 platform, currently developed in Hennigsdorf, Germany, to CAF. The divestment was set by the European Commission as a condition for the approval of Alstom’s acquisition of Bombardier Transportation in January. Alstom says completion of this transaction and transfer of ownership is not expected to cause any interruption to project delivery activities.

UNION PACIFIC is implementing OPTRAIL’S Advanced Movement Planner (AMP) technology as part of its new Computer-Aided Dispatching system (CADX). OptRail’s AMP will provide real-time train information across UP’s 23-state, 32,000-mile network, “identifying the plans for those trains to traverse the network including how they should meet or pass one another should that be necessary,” the companies reported on Nov. 18. Completion is expected in late 2021. AMP supports a broad set of operating rules, according to UP and OptRail. “The technology is based on a mathematical approach, which, unlike rule-based algorithms, allows flexibility when modeling the rail operator’s goals and any potential new requirements,” they said. “AMP is a great example of advanced technology driving safety, efficiency and productivity for Union Pacific,” UP Senior Vice President and Chief Information Officer Rahul Jalali said. “The partnership between OptRail and Union Pacific to build and deploy AMP is a great success story for both companies.” UP on Nov. 16 reported its cutover to a new CADX, which was developed in-house through a multi-year effort of several UP departments. The biggest safety

Alstom

WORLDWIDE

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feature CADX has over its predecessor is integration with track data, UP said. “This ensures protection is placed at the correct location without relying on external tools.” Noted Chaylea Cramer, Train Dispatcher-Special Projects at the UP Harriman Dispatching Center: “With track data and timetable information embedded in CADX, the system automatically places restrictions in the proper locations, enhancing safety for crews and the general public.” GENESEE & WYOMING, INC. has awarded RAILHEAD CORP. a contract to supply and install its high definition/4K onboard Locomotive Digital Video Recorder (LDVR4K) systems and Twin View and Wedge cameras fleet-wide in North America “to support safety initiatives.” The LDVR4K system consists of Railhead’s forward-facing Twin View (wide and narrow) camera, which features two cameras in one housing that “more accurately replicate the engineer’s point of view,” the company said. The heated exterior wedge camera will be installed on the rear of the locomotive. Video from all cameras is stored on a rugged digital video recorder built specifically for freight rail. December 2021 // Railway Age 7

Financial Edge World Energy: ‘Chaos’ Is Just About Right

ow that the drama around the CP-KCS merger has finally subsided, the rail market has to occupy itself with other more mundane issues, such as the forward trajectory of coal loadings. Representing 12% of railcar loadings (even in its diminished state), coal remains a critical industry issue. It was noteworthy, but underreported, that at the end of October, many utilities were obligated to provide state regulatory bodies sets of plans to address a 2020 EPA rule requiring a reduction of the pollutants in wastewater discharges from power plants. The 2020 rule was a Trump Administration rollback/softening of an Obama Administration rule. The rollback decreased the number of impacted power generating facilities from more than 100 to 75. This is out of a total of more than 900 coal-fired generating stations in the U.S. Included in the utilities most impacted are some large coal burners like Southern Company and NRG. The world’s energy markets are in some form of disarray. Panic might be too strong of a word, but chaos seems just about right. Soaring natural gas prices in Europe have led to increasing export coal demand. Higher oil prices have led President Biden to dip into strategic oil reserves. As much of the U.S. contemplates the impact of a La Niña winter, the weather picture continues to remain unsettled. The doom and gloom contingency expects another Texas-style (if not sized) power grid failure sometime in winter 2021-22. In the midst of these events, coal railcars have been having a moment (see the 2022 Railroad Financial Desk Book in the October issue). Indeed, the price of natural gas seems to have increased certain pockets of coal demand where none may have existed at this time last year. In spite of the recent uptick, let’s not be naïve and confuse demand for railcars with a demand for coal. Coal loadings continue to languish below 2019 levels (see illustration). The trend here is irreversible. The Trump rollback muted the number of plants impacted by the EPA rule. It did not eliminate it. The ongoing momentum against coal echoes the sentiment put forth in February 2021’s Financial Edge: No matter what kind

8 Railway Age // December 2021

of energy market chaos exists right now and to what kind of energy market chaos the country may be headed in the future, burning more coal is not on the national or political agenda. It is more likely that power generators will be decommissioning those facilities impacted by the EPA reg (or converting them to natural gas) before the 2028 deadline. Furthermore, don’t be surprised if those additional plants that escaped the EPA today find their way back onto the agenda as President Biden uses the remainder of his term to expand the scope of the EPA regulation. Ongoing anti-coal bias makes one wonder two things: One, as the U.S. government peacocks about other countries’ need to decrease global GHG emissions, will the U.S. decide to cap coal exports? Two, what environmentally friendly commodity will replace coal as Santa’s naughty commodity de siècle (compost perhaps)? What Santa won’t be bringing to consumers, owners and manufacturers of rail equipment is clarity about the 2022 rail economy. (Unlike many other successful entrepreneurs, Santa has stayed in his lane and refused to expand into economic forecasting—plus hot rolled steel just doesn’t fit under the tree.) With that in mind, it feels right to look forward into 2022. Rapid and extreme reactions to labeling COVID “Omnicron” as a variant of interest demonstrate the global economy’s fragility and the prominence of a pandemicbased reactionary mentality. Clearly,

pandemic-synonymous volatility remains present and fears of supply chain disruption are still just one variant away. 2022 is likely to be a mix of tentative behaviors as equipment consumers try to balance concerns about ongoing economic growth vs. the possibility of long-term inflationary pressure and the potential for rising interest rates. Evaluating the price dynamics for raw materials of steel and aluminum and its impact on railcar pricing is paramount for anyone who has been waiting for a window to purchase or lease new railcars. Pent-up demand is balanced against potential supply chain rationalization and a qualified “return to normalcy” that could lead to a reduction in lease rates as idle car supply increases. However, do not expect a shift by the railroads to pursue a growth strategy in pursuit of railcar loadings even as they stare face-to-face with a gravesite hacked into the ground by the Ghost of Christmas future as played by the STB. A safe and healthy holiday season and a successful 2022! Got questions? Set them free at dnahass@ railfin.com.

DAVID NAHASS President Railroad Financial Corp. railwayage.com

2022 OUTLOOK

CLEAR TRACK AHEAD?

The year ahead looks a bit bumpy as railroads negotiate a challenging regulatory environment and economic twists and turns.

o paraphrase legendary New York Yankees star Yogi Berra, when you come to a turnout, take it. The railroads, emerging from the effects of a global pandemic that has changed everything for everyone, and staring a potentially new regulatory reality in the face, have come to that turnout. Even though it’s equipped with “moveable points” (depending upon whose finger is pointing), this turnout cannot be taken at faster than NORAC Rule 281c (Limited Clear). And if a signal appears to be NORAC Rule 281(Clear, green), whoever is displaying it could be color-blind. The best approach seems to be assuming that every signal—economic, political, regulatory, social—is one of three aspects: NORAC Rule 290 (Restricting), Rule 291 (Stop and

10 Railway Age // December 2021

Proceed), or Rule 292 (Stop). The Year 2022 looks like it will be defined by the first paragraph of the Charles Dickens novel A Tale of Two Cities: “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way— in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.”

In the age of wisdom, the STB will approve the Canadian Pacific-Kansas City Southern merger application by year-end. In the age of foolishness, the railroads will be slapped with reciprocal switching (“forced access”) and a politically driven two-person crew mandate from a Federal Railroad Administration suffering the ill effects of no longer having an experienced railroader in the engineer’s seat. In the epoch of belief, the economy will continue to recover, bring traffic back to the rails, supported by a surge in equipment building. In the epoch of incredulity, the railroads will fail to take the necessary steps to grow market share and add to the top line of the balance sheet, losing ground to a new generation of electric, semi-autonomous trucks. In the season of light, the industry will move ahead with new technologies made railwayage.com

Bruce Kelly

BY WILLIAM C. VANTUONO, EDITOR-IN-CHIEF

2022 OUTLOOK

possible by artificial intelligence and analytics. In the season of darkness, the industry will stick to the old-school “not invented here” syndrome. Here’s a snapshot of what could be either a spring of hope or a winter of despair, with everything or nothing before us (or maybe something in between), as defined by one of the industry’s best and brightest minds, Frank N. Wilner, Railway Age Capitol Hill Contributing Editor: “Years ago, as general counsel to the Illinois Racing Commission, STB Chairperson Martin J. Oberman chased the “gow”— jockey-speak for opium used illegally to improve race horse performance. These days, the 76-year-old Oberman is himself infused with a legal form of gow: an unabated resolve to use his regulatory cudgel to splinter railwayage.com

railroad market power. “Shippers, long frustrated that the STB and its Interstate Commerce Commission (ICC) predecessor acted as a wholly owned subsidiary of railroads, are optimistic a leadership baton has been passed to a chairman predisposed to interpret rail regulatory statutes more in their favor. Railroads, by contrast, regard Oberman’s activism as an assault on private property rights. “He’s freaking out investors,” an analyst with a major Wall Street firm told this columnist. “Not to pour Oberman’s whiskey down the well, but his perceived shipper-friendly agenda faces speed bumps—maybe barricades—from a conservative federal judiciary, his needing two other votes on the five-member STB to prevail, and an STB workforce perhaps spread too thin to handle the likely workload. “Consider the federal judiciary, which historically has accorded deference to expert regulatory agency decision-making. Such may be coming to an end. Supreme Court Justice Clarence Thomas has raised ‘serious questions about the constitutionality of our broader practice to deferring to agency interpretations of federal statutes,’ while Justice Neil M. Gorsuch, when a federal appellate judge, termed such deference ‘maimed and enfeebled.’ “As for the STB’s workforce, it will be tested in coming months. The first major railroad merger application in two decades—CP and KCS—will invite workload-challenging requests for pro-competitive conditions. A second merger application—of Class I CSX and Class II Pan Am Railways—is proving more complicated than anticipated, owing to emerging New England rail competition concerns. Notably, merger cases have statutory time lines that must be met. “As for Oberman’s competition enhancing rulemakings favored by shippers, their progress could be further slowed were the merger applications to invite defensive mergers, or were a new rail rate challenge filed. Then there is a festering problem with the STB’s antiquated Uniform Rail Costing System (URCS), which allocates costs in regulatory proceedings. Its elements, some dating to 1907, are in urgent need of time-consuming and costly revision. An outside consultancy already is at work making suggestions. “Although the STB is chock-full of attorneys (39, plus six paralegals), its 15 financial

and transportation analysts, eight economists, two professional engineers and two accountants could prove inadequate for Oberman’s activist agenda—especially in the midst of an again-surging pandemic. “What are the shipper-friendly rulemakings Oberman seeks to advance? “Reciprocal Switching (Ex Parte No. 711): This is the practice by which a railroad with physical access to a shipper facility switches cars to or from that facility on behalf of a second railroad lacking physical access—termed ‘competitive access’ by shippers who seek to inject two-railroad competition, but viewed as ‘forced access’ by railroads. STB precedent, dating to a 1985 case known as Midtec, holds that such a remedy not be imposed absent a showing of market-power abuse. “First-Mile/Last-Mile service issues (Ex Parte No. 767): This is a supply chain issue, with remedies sought by shippers when railroads delay freightcar switching from a local serving yard to the shipper or receiver facility. “Rules Governing Private Rail Car Use by Railroads (Ex Parte No. 768): Some 70% of the total railcar fleet is non-railroad-owned, with shippers complaining of railroad delays in returning empty cars for reloading. Sought by shippers is authority to assess a ‘private railcar delay charge.’ “Final Offer Rate Review (Ex Parte No. 755): This is an alternative to an expensive Stand-Alone Cost (SAC) test, where recoveries in rate disputes are relatively small. Considered is a process where each party makes a final offer and the STB chooses one, without revision. Railroads seek an exemption in favor of voluntary arbitration (Establishing a Voluntary Arbitration Program, Ex Parte No. 765). But shippers say it would give railroads an advantage. Following the first arbitration, railroads would gain knowledge of strategy, expert witness testimony and arbitrator predilections not available to each new shipper entering the process, as arbitration awards are to be confidential. “Another problematic Oberman initiative is his scrutinizing of the railroads’ commoncarrier obligation. Never defined by statute, it is broadly interpreted as a duty to provide transportation or service on reasonable request. Railroads say it does not apply to traffic exempt from economic regulation— some 80% of total rail traffic. If so, the STB December 2021 // Railway Age 11

2022 OUTLOOK could be asked—over strenuous railroad objections—to revoke non-statutory exemptions (such as for intermodal), with Congress prodded to end the statutory exemption for traffic moving under contract. “Stiffening Oberman’s resolve is a burgeoning bipartisan congressional interest in market concentration affecting products essential to commerce. A bipartisan-supported American Innovation and Choice Online Act would specifically limit the market power of Amazon and Google— and be easily extended to railroads. Not so long ago, railroads only narrowly blocked a congressional attempt to bring them more completely under the antitrust laws from which they are largely exempt in favor of STB economic regulation. “For sure, shippers are bullish on Oberman, viewing his exertions as reminiscent of shipper advocate and former Sen. Jay Rockefeller (D-W.Va.). In January 2000, after then-Commerce Committee Chairman John McCain (R-Ariz.)—a recipient of substantial railroad campaign

contributions—announced he ‘was not inclined to bring up any legislation affecting railroad transportation that will be reregulatory,’ Rockefeller responded, ‘We are owed a hearing.’ Shippers now look to Oberman as they once looked to Rockefeller—who, notably, was less than successful. “So, does Oberman, whose first term expires in December 2023, have the votes? “The STB currently has a 3-2 Republican majority, but Republican Ann D. Begeman, serving a statutory one-year maximum holdover following expiration of her termlimited second term, must depart by Dec. 31. Her presumptive successor is 73-yearold attorney Karen J. Hedlund, a Democrat awaiting Senate confirmation. “Hedlund has a reputation of a deep and independent thinker with a transportation consultancy background, and may possess the most practical understanding of railroad economics, operations and service since former STB member Debra L. Miller (20142018), who long-led the Kansas Department of Transportation. If confirmed, Hedlund’s

first term will expire in December 2025. “The third Democrat is Robert Primus, age 50, whose first term expires in December 2022. Although he has a limited transportation background, he has proven a fast study and shown an independent streak in sharply worded dissents to Oberman-drafted decisions. “The STB’s two Republicans post-Begeman will be Patrick J. Fuchs, age 31, whose first term expires in January 2024, and Michelle A. Schultz, age 49, whose first term expires in January 2026. Fuchs arrived from the Senate Commerce Committee, where he was instrumental in drafting the 2015 Surface Transportation Reauthorization Act, which surprised railroads with shipper-friendly provisions. Schultz, an attorney with a commuter rail background, has limited experience in freight rail issues.” Observes Railway Age Financial Editor David Nahass in this issue’s Financial Edge (p. 8): “2022 is likely to be a mix of tentative behaviors as equipment consumers try to balance concerns about ongoing economic growth vs. the possibility of long-term

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2022 OUTLOOK inflationary pressure and the potential for rising interest rates. Evaluating the price dynamics for raw materials of steel and aluminum and its impact on railcar pricing is paramount for anyone who has been waiting for a window to purchase or lease new railcars. “Pent-up demand is balanced against potential supply chain rationalization and a qualified ‘return to normalcy’ that could lead to a reduction in lease rates as idle car supply increases. However, do not expect a shift by the railroads to pursue a growth strategy in pursuit of railcar loadings even as they stare face-to-face with a gravesite hacked into the ground by the Ghost of Christmas future as played by the STB.” On a very positive financial note, particularly for Class II and III railroads, there is the IIJA (Infrastructure Investment and Jobs Act), “the biggest federal infrastructure spending bill since, well, since ever,” according to American Short Line and Regional Railroad Association President Chuck Baker (p. 32). “Compared to the 2015 FAST Act surface transportation bill, it’s a huge

expansion in total funds, $1.2 trillion vs. $305 billion, and a huge increase in the breadth and scope of the bill. For short lines, it dramatically increases grant funding opportunities for the most expensive rehabilitation projects, expands short line eligibility in infrastructure programs, provides set-asides for small and rural area projects that help protect short line participation, and creates new highway grade crossing elimination funding.” Another IIJA provision benefitting railroads is funding for long-sought studies “exploring rightsizing highway costs for commercial vehicles,” says GoRail President Russ McGurk. “Fuel taxes are falling further behind as vehicles become more efficient and EVs become more prevalent. Two studies approved by the IIJA will explore this area. One is the first Highway Cost Allocation Study since 1997, which will help Congress make sure different highway users cover their share of infrastructure damage. The other study is a pilot program for demonstrating a national vehicle per-mile traveled (VMT) user fee, including for commercial motor

vehicles, to restore and maintain long-term solvency of the Highway Trust Fund. Such a formula would not only ‘lead to more equitable and efficient use of roadways,’ according to the Government Accountability Office, it could also right-size the underpayment of large trucks, which currently cover only 80% of the damage they cause. When trucks effectively receive a subsidy to use highways, it makes it harder for self-funded railroads to compete, ultimately diverting freight away from railroads.” Passenger railroads also stand to gain measurably from the IIJA. “Intercity passenger rail will get more money than ever before,” notes McGurk. “The IIJA delivers big for passenger rail, providing $66 billion to Amtrak to improve and expand service. This is the largest investment ever for the nation’s intercity passenger railroad, which previously had an annual budget of $2 billion. This funding will help Amtrak tackle projects along the Northeast Corridor, as well as its 15-year vision for extending service to 160 additional communities.”

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A SMOOTH ONE High-tech solutions improve the rail/road interface.

henever I approach a highway/rail grade crossing, aside from making absolutely sure it’s safe to traverse (never, ever stop on it, and don’t proceed unless there’s enough space on the other side to totally clear my car), I look closely at the crossing surface. Can I coast over it without risking damage to my 2009 Pontiac G8 GT’s 19X8-inch alloy wheels and 245/45-19 low-profile tires? Will my middle-age bones get rattled from my ride’s stiff suspension—aftermarket sway bars, bushings, trailing arms, toe links, strut tower and driveshaft tunnel braces, and other performance goodies—absorbing jolts from a rough surface? Not if the grade crossing surface is equipped with heavy-duty concrete, composite, solid rubber or timber panels from American Concrete Products, HiRail Corp., Koppers, L.B. Foster, LT Resources, Oldcastle Infrastucture StarTrack Railroad Products, Omega Industries, OMNI Products Inc. or Stella-Jones 16 Railway Age // December 2021

Corp. State-of-the-art surfaces from these suppliers enhance motor vehicle safety; provide a smooth, jolt-free ride; and offer the ability to withstand long-term pounding from heavy-axle-load freight trains and fast passenger trains. Some $1.2 billion in continued and guaranteed funding for the Section 130 grade crossing program provided by the Infrastructure Investment and Jobs Act (IIJA) will help keep these companies busy supplying products to state and local transportation agencies and railroads for improvements. American Concrete Products manufactures precast crossing panels and signal foundations suitable for a wide variety of rail weights, tie materials and widths, curved rail, and turnouts. The company has been developing ADA-compliant flangeways, because rail transit projects now require them. On the R&D side, the company continues to explore higherstrength, more-durable concrete to improve the crossing panel lifetime. One of American Concrete Products’ recent specialty projects is a custom-shaped

crossing on OmniTRAX’s Great Western Railway of Colorado LLC in Fort Collins, where precast panels were custom-manufactured. “On occasion, crossings are situated in a turnout positioned in the roadway,” the company notes. “We performed the measurements at the site and designed the crossing panels to ensure they are an exact fit. These panels are special shapes that also must be manufactured to match the rail curvature.” Manufactured from recycled rubber, HiRAIL Corp. crossing surfaces, available for main line freight and passenger rail and rail transit customers, are designed to move water away and improve grip, and can be removed and reinstalled for track and trackbed maintenance. They are also designed to work with new fastening systems, crossties, tie plates and other track components frequently entering the market. After several years of development, the company in 2020 introduced a single, thicker tongue and groove interlocking system, which it says “is an improvement over the traditional double tongue and groove product, railwayage.com

OMNI Products Inc.

BY WILLIAM C. VANTUONO, EDITOR-IN-CHIEF

TECH FOCUS – M/W

American Concrete Products’ custom-shaped crossing on OmniTRAX’s Great Western Railway of Colorado LLC, Fort Collins.

38% reduction in trespassing incidents over a 60-day period. Several large transit agencies have been installing them. The L.B. Foster Transit Products rail boot system “allows for dynamic movement of the rail when embedded in concrete, asphalt or other material to protect the surrounding

materials. It also provides electrical isolation and noise and vibration mitigation, and is designed to install easier than any other available rail boot system. The complete system includes splice cuffs, adhesive, filler, tape, plates, clips and leveling beams, which are used for mounting and holding the rail

American Concrete Products

and is durable and robust for railroad crews to install. L.B. Foster’s Anti-Trespass Panels, introduced in 2017, “deter trespassers and animals from accessing track and protect the safety of pedestrian trespass at rail crossings, platforms and yard entrances,” the company says. “Made from environmentally friendly material and quick and simple to install, they are designed and engineered by Rosehill Rail. The panels, made from 100% recycled rubber, are available in three styles, providing greater flexibility to site-specific requirements. All panels are delivered complete with plastic ‘planks’ and fixing screws to enable immediate installation. Extra fixing kits are available, in addition to those automatically supplied with each panel. Each kit comprises two ‘planks’ made from recycled plastic together with eight fixing screws and washers.” The Federal Railroad Administration published a study in 2019 evaluating the effectiveness of the anti-trespass panels on pedestrian behavior, indicating there was a

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December 2021 // Railway Age 17

TECH FOCUS – M/W

in position for track embedment and offered in steel or composite material. Configurations are available for a variety of rail sections.” LT Resources offers “sustainable track materials manufactured from engineered plastics.” The company’s ENDURANCE®-XL and ENDURANCE®-XL PLUS Highway-Rail Grade Crossings utilize a proprietary recycled polymer materials formulation and a patented manufacturing technology, “resulting in superior performance and extended service life in severe environments,” the company says. The 8-foot, 1.5-inch panels are manufactured in 6-inch, 7.5-inch and 8.25-inch heights for use with most rail sizes and fastening systems. They are lagged down to 8-foot, 6-inch or 10-foot timber or composite crossties on 19.5-inch centers. The ENDURANCE®-XL PLUS “was developed with direct input from Class I railroads to address performance issues with traditional crossing surface materials. Using the proven ENDURANCE®-XL formulation and incorporating several design improvements to address the Class I operating environment, the ENDURANCE®-XL PLUS design was implemented after two years of successful in-track prototype testing with various Class I railroads.” LT’s “complete” grade crossing system uses TIETEK® composite ties under ENDURANCE-XL composite panels, “extending the life of the crossing and addressing our customers’ corporate sustainability goals and their desire to utilize durable ‘green’ products with improved performance features.” Panels and ties can both be recycled. Oldcastle Infrastructure’s StarTrack® grade crossing modules “are designed for fast installation with four hook lift anchors embedded in each piece,” the company notes. “Designed to meet AREMA standards and Cooper E-80 Loading plus 60% impact factor, they are available in custom ‘pie-shaped’ pieces to meet track curvature. Our StarTrack® HD Modules are the proven and preferred crossing of America’s largest ports and Class I intermodal terminals. With highly competitive installed and life-cycle costs, they’re manufactured to the rigid standards of the Oldcastle 18 Railway Age // December 2021

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L.B. Foster

L.B. Foster Anti-Trespass Panels are made from 100% recycled rubber and are easy to install and maintain.

TECH FOCUS – M/W Infrastructure quality control programs at our facilities nationwide. Professional engineering staff and industry leading computer design software provide technical support and stamped drawings when required. In service with Class I’s and successfully tested on the Heavy Axle Load (HAL) Loop at the Transportation Technology Center in Pueblo, more than 150,000 track-feet have been installed without a single structural failure.” Omega Industries, which describes itself as “the largest concrete crossing supplier in the U.S.,” offers no fewer than seven types of crossing panels: Main Line Common Standard, Curved Panels, Light Rail and Transit, ADA Pedestrian Crossings, Heavy Duty/ Steel Skin, Direct-Fixation Track Panels and Narrow Gauge Track. The company’s internal engineering department customdesigns and fabricates panels for compound curves and tangent track. OMNI Products Inc., which describes itself as “the only grade crossing manufacturer with a full product line,” offers

Oldcastle Infrastructure’s StarTrack® grade crossing modules on the Minneapolis Southwest LRT

concrete, rubber and concrete/rubber combo panels. Its Embedded ConcreteRubber (ECR) grade crossing system “is the latest generation of our patented singlecomponent, concrete-rubber design. ECR is designed with the rubber flange seal molded into the face of the steel clad, steel

reinforced concrete panels. It is the fastest and easiest concrete crossing system to install because of its unique integrated concrete-rubber design.” OMNI’s Improved-Concrete (IC) system incorporates OMNI rubber RailGuard panels with precast concrete panels. “The

Oldcastle Infrastructure

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December 2021 // Railway Age 19

TECH FOCUS – M/W steel-framed, steel-reinforced concrete panels are designed to handle heavy highway traffic, as well as heavy truck traffic,” the company notes. “The virgin rubber RailGuard panels cushion load, control surface water and provide electrical insulation. The broom-finished surface provides high friction for excellent traction.” OMNI’s TraCast™ is “a system of precast concrete modules with a minimum compressive strength of 6,000 PSI. Elastic fasteners are used to secure the rail to the base of the rail troughs. The module design eliminates the use of ties and ballast, and a continuous protective rubber rail boot insulates the rail from electrical interference. RailGuard™ rubber panels are installed on the gauge side of the rails to provide a positive flangeway and rail cushioning. They can be easily removed with a lining bar, eliminating the need of heavy equipment, for rail inspection and repair.” OMNI’s Full Depth Heavy Duty rubber grade crossing system “is the most durable full-depth rubber crossing available.

Made of 100% virgin rubber, it’s designed to withstand repeated punishment of high-speed, heavy traffic loadings. This product’s durability, long life and low maintenance requirements make it ideal for most applications. Heavy Duty panels can be reused when a crossing is reconfigured or closed, and can be used with most rail fasteners.” OMNI’s Steel Reinforced (SR) system includes a virgin rubber panel reinforced with a ¼-inch corrugated steel plate, installed on longitudinal, pressuretreated, hardwood shims. The virgin rubber “absorbs the impact of concentrated loads such as lift trucks, while the steel plate provides the strength to carry heavy loads. The SR system is ideal for low-MGT, heavy truck use, such as intermodal yards and private industry. With the purchase of the Goodyear™ product line, OMNI is the only supplier of this type of product.” OMNI’s Virgin Rubber RailGuard™ (VRA), made from durable 100% virgin rubber, “protects the track structure by absorbing traffic impact loads, provides

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a positive flangeway that controls surface water runoff, and prevents breakup of the asphalt at the rail interface. The VRA design has several benefits over other rail seal products. The panels are easy to handle and install. VRA’s greater surface area provides better cushioning to the rail and is self-supporting. Its durability makes it ideal for any traffic situation. Either asphalt or concrete can be used in conjunction with VRA. It’s designed to accommodate heavy traffic when a rail seal has been specified, rather than a full-width rubber crossing.” Stella-Jones Corp., a major supplier of pressure-treated wood products in a variety of select wood species, produces crossing panels with “timbers that are dowellaminated side-by-side to make a panel set that will lay adjacent to steel rails on top of ties. The timber depth is manufactured to closely match the rail height, allowing for vehicles to cross railroad tracks at a relatively smooth transition without damage to the railroad.”

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We’re current, are you? FRA Regulations Mechanical Department Regulations

Now Include Part 22 s 4

A combined reprint of the Federal Regulations that apply specifically to the Mechanical Department. Spiral bound. Part Title 210 Railroad Noise Emission Compliance Regulations Updated 4-15-19. 215 Freight Car Safety Standards Updated 5-3-21. 216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment Updated 5-3-21. 217 Railroad Operating Rules Updated 5-3-21. 218 Railroad Operating Practices - Blue Flag Rule Updated 5-3-21. 221 Rear End Marking Device-passenger, commuter/freight trains Updated 5-3-21. 223 Safety Glazing Standards Updated 5-3-21. 224 Reflectorization of Rail Freight Rolling Stock Updated 5-3-21. 225 Railroad Accidents/Incidents Updated 5-3-21. 229 Locomotive Safety Standards Updated 5-3-21. 231 Safety Appliance Standards Updated 5-3-21. 232 Brake System Safety Standards Updated 5-3-21.

There are no new proposals or final rules to report for this issue. Be sure to check back next month to see if there are any changes to FRA regulations.

Part 213: Track Safety Standards 49 Part 213, Subparts A-F. Classes of Track 1 through 5: Applies to track required to support passenger and freight equipment at lower speed ranges. Includes Defect Codes and Appendices A, B, and C to Part 213. Softcover. Spiral bound. Updated 5-3-21.

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TECH FOCUS — M/W C&S/Mechanical

BY THE WAYSIDE Wayside inspection equipment is helping railroads ensure that rolling stock operates safely and efficiently.

achine vision and artificial intelligence (AI) are among the tools enabling railroads and transit agencies to automatically and proactively monitor rolling stock condition—identifying mechanical problems before they become serious failures. Transportation Technology Center, Inc.; Duos Technologies; Trimble® Beena Vision® Solutions; and Cogniac shared with Railway Age how it’s done. Machine vision camera technology captures pictures of moving railcars from a variety of angles. With a Duos Technologies inspection system, for instance, the images are processed through trackside AI servers that look for railroad-defined issues such as engaged brake pistons. “The camera images that contain the brake piston are processed through the algorithm,” Duos Chief Commercial Officer Scott Carns explains. “The results are pushed from our system to the end user. This all happens for each railcar in milliseconds as each passes through the system at track speeds.” All Class I railroads have machine vision systems on their networks, ranging from brake shoe and wheel inspection systems to 22 Railway Age // December 2021

complete inspection portals “that image the entire train in 360 degrees,” TTCI Scientist Matt Witte says. Among the benefits: “superior and more consistent performance of repetitive inspection tasks compared with the inherent human limitations. We want to utilize our skilled workforce where they can provide the most benefit in repairing rather than inspecting railcars.” The inspection systems also provide greater throughput and have the potential to boost average train velocity by reducing yard dwell time for manual inspections. “The completeness of the data stream from machine vision inspection introduces the ability to trend component condition,” Witte adds. “The end result is a way to predict the point in time where preventative maintenance can be performed on a railcar just before the end of its useful life is reached.” Other advantages include reducing safety risks to personnel, providing statistics for compliance, and maintaining fleet-wide visibility of component condition, Trimble Beena Vision Director of Sales Americas Timothy Francis points out. Of course, there are technology challenges as well. “Development of algorithms to

automate defect detection are not always easy in the railroad environment,” TTCI’s Witte explains. “Variations on the designs of cars and components make observation, detection and evaluation of baseline acceptable condition a much greater challenge than detecting product defects in a manufacturing environment where machine vision inspection is common. And reliable inspection requires a clear view of the components to be inspected. Common variations in railcar hardware, such as placement of hand brake components, can block the optical pathway between the target and the camera. When coupled with adverse environmental conditions such as rain or snow, this obscured line of sight can affect the performance of the machine vision system.” DUOS TECHNOLOGIES Railroads are using wayside inspection technology like Duos’—which incorporates a canopy to help mitigate environmental factors—to increase safety and improve velocity, but application ultimately boils down to their specific pain points, Scott Carns says. And system positioning tends to fall well outside of rail yards and instead on main line track, he adds. “Our metrics have shown that railwayage.com

Duos Technologies

BY MARYBETH LUCZAK, EXECUTIVE EDITOR

TECH FOCUS — C&S/Mechanical

Trimble Beena Vision Solutions

a good rule of thumb is approximately one system per 1,000 route-miles.” How are railroads capturing data? “With the volume of data generated from our systems, we currently deploy trackside data centers,” he says. “All of the data is captured, processed and stored at the edge. From there, we have developed Application Programming Interfaces (APIs) that integrate directly into existing railroad systems for maintenance reporting and bad order tagging. Currently, because this type of technology is very cutting edge, the general philosophy is to leverage the systems as a new data source into existing processes throughout their organization.” Duos’ latest technology is ObliqueVUE, a crosstie-mounted system that captures bi-directional images from eight cameras and “sees” at least 25 new inspection points, Carns notes. “We’ve also started implementing the latest in 8K line scan and 5MP area scan cameras that allows us to image at speeds above 125 mph.” What’s in the pipeline? For one customer, Duos is currently expanding the number of imaging perspectives from nine to 34, allowing it to “see” more than 100 inspection points on each railcar. “Another very exciting opportunity is the creation and near-term implementation of a ‘fast lane’ for railroad border crossings,” Carns says. “The intent here is to provide all of the inspection data for various federal agencies in partnership with the railroads to allow them to change the current process on how trains transition across our land border crossings in the United States. Ultimately, it will substantially improve velocity, allow higher throughput and assist the various law enforcement agencies responsible for this effort.” TRIMBLE BEENA VISION SOLUTIONS Trimble’s non-contact wayside measurement and inspection technologies assess rolling stock condition from component level to full train inspection. Rail operators use the generated data to prioritize train maintenance and derailment prevention, Timothy Francis says. “Furthermore, the correlation between data generated by different detectors provides additional opportunities to analyze and understand the condition of any individual rolling stock or the whole fleet.” Uptake of condition monitoring continues to grow, Francis says, noting that the company has installed numerous systems at all of the railwayage.com

Trimble Beena Vision Solutions’ Trimble® TreadView®

Class I’s and at multiple worldwide operators, such as Aurizon, BHP, Rio Tinto, and FMG in Australia; SNCF in France; VR in Finland; Vale, VLI and MRS in Brazil; and Etihad in United Arab Emirates. Trimble’s latest offering is Trimble® TreadView®, an automatic non-contact optical inspection system that images and inspects the wheel surface—wheel tread, flange and plate surface areas—at main line operating speeds and in all ambient light and weather conditions. “The high-resolution images and high-density 3D data of the wheel surface are used to determine any external surface abnormalities of the wheel tread,” explains Francis. “Processed data and images from the Trimble TreadView system are integrated into the Trimble CMMS™ (Condition Monitoring Management System) software to provide web-based access for data visualization, alarm management and data analytics.” Deriving actionable insight from the wayside data is the key to improving railroad efficiency and reliability. “Via faster enhanced data preparation and contextualization, and the application of intelligent analytics, data can be modeled to show trends and patterns that would otherwise remain hidden,” Francis says. “Trimble is working within the rail industry to create meaningful predictive analytics that reduce risk and boost efficiency.” COGNIAC “Cogniac’s solution allows railway companies to evaluate, in near real time, train wheels and tracks at speeds of up to 60 mph,” says the company, which deploys its AI machine vision platform “to enable railroads to process the images they capture on location and within a minute, providing near-instant evaluation of

critical assets on the move.” Cogniac is currently working with a Class I, and, on a monthly basis, monitors 22 million wheels and 32,500 miles of track. The company “processes hundreds of thousands of images taken by cameras on the front of more than 450 moving trains each month. The images are sent by Cogniac’s EdgeFlow and evaluated for splits, cracks or missing bolts. A human subject matter expert is alerted if any images are flagged as defective. The human supervisor can then make a decision on how to proceed with the defect identified.” Cogniac has also worked with this railroad to install trackside gantries, taking high-resolution wheel images. The images are processed, and those showing cracks or other issues are sent to a human inspector for secondary review. “Since January 2020, Cogniac’s vision system has stopped more than 100 trains where there was a potentially devastating issue that could lead to a derailment, saving the railway up to $350 million in damages,” Cogniac says. WHAT’S NEXT? “The next big hurdle for the industry is regulatory modernization,” TTCI’s Witte tells Railway Age. “Historically developed regulations are not necessarily structured to take full advantage of the safety, repeatability and efficiency benefits offered by automated inspection. Through the AAR committees, the railroads are working to demonstrate and quantify the safety benefits of automated inspections. TTCI supports this effort by objectively evaluating the performance of inspection systems in a controlled environment where known defects can be included safely in the population of test subject railcars.” December 2021 // Railway Age 23

ANALYTICS

NEW FROM RAILINC: ADVANCED ETA Application of AI and machine learning results in continuous, accurate reporting on railcar locations to improve shipping efficiency and reliability. BY WARD PROCTOR, DIRECTOR OF BUSINESS SOLUTIONS, TRANSMETRIQ 24 Railway Age // December 2021

railwayage.com

has traditionally been more challenging. The scale of the challenge multiplies with the number of different carriers involved, as well as for shipments that begin and/or end with transport by water or highway. This is why Railinc has devoted considerable resources to the development of a new Advanced ETA to meet this critical industry need. One of the reasons the railroad industry created Railinc was to serve as a neutral information provider of equipment condition and location throughout the North American rail network. Since its inception in 1999, Railinc has grown to become the industry’s largest and most accurate source for interline rail data. Recently, it launched its TransmetriQ unit, where transportation experts, UX designers, data scientists, and critical thinkers collaborate to tackle some of the industry’s most complex needs. The development of Advanced ETA has been one of TransmetriQ’s first major projects. The TransmetriQ team was tasked with improving ETAs that relied primarily on historical data to predict the performance of traffic moving across the rail network. When operations are relatively stable, this system works reasonably well. However, when changes occur in routing, interchange schedules, and other variables, the process has been less reliable. The solution was not simple to design and implement, which is why TransmetriQ devoted an experienced and diverse team to work on it. That effort is proving to be effective. Initial results have already shown a marked improvement in arrival time

Kevin Ebi

ail offers many significant advantages for freight shippers as compared with trucking. For many shippers, the benefits of switching from highway to rail are significant: • Safety: U.S. freight railroads have lower employee injury rates than most other major industries. • Sustainability: On average, one ton of rail freight moves 480 miles on one gallon of fuel, and shippers who convert from truck to rail lower greenhouse gas emissions by 75%, according to Association of American Railroads statistics. • Cost: The greater fuel and labor efficiency of rail often translates into lower transportation costs. Historically, one challenge for rail shippers has been that continuous visibility and real-time shipment status information have not been as readily available as similar information provided by truckers. The so-called “Amazon effect” has resulted in customers’ general expectation that the location of shipments should be available in real time, which is something truckers are able to provide by employing widely available and low-cost GPS tracking systems. It’s not that simple for rail freight. While each Class I and many regional and short line railroads have very good systems for tracking and reporting shipments moving on their own tracks, providing high-quality visibility and estimated time of arrival for interline shipments that move on multiple railroads

ANALYTICS

railwayage.com

December 2021 // Railway Age 25

ANALYTICS

26 Railway Age // December 2021

then-current ETA capabilities, Dever says “a goal was set to use machine learning to identify some of the errors that were inherent when historical data was the primary source of information.” In cooperation with a consulting group, Dever and his team built a complex system that provided an ETA estimate from a model over a fixed route. This initial effort relied on projecting a train’s movement over the most probable route, based on historical data, to see how shipments would progress over that route at points along the way. “Though it was pretty good within the limitations,” he says, “if you got the route wrong anywhere along the way, there was a high likelihood that predictions would not be accurate.” Despite this, the team was gaining experience with machine learning, leading to the next and current development phase, which employed sequence modeling. These models can use data from various inputs including time-series data, text streams, emails, etc. “Sequence modeling has greatly improved during the past two years,” Dever says. “It is now able to help us understand some of most complex real-world railroad operating scenarios.” The models take information that has traditionally been manually analyzed and learn from it much faster. The more advanced technologies let the machine learn the most important elements in a sequence. If a shipment moves on a route that was planned via Houston, for example, the model can pick up and analyze data that may indicate that it will actually travel via Austin and automatically

About Railinc: Railinc is the railroad industry’s innovative and reliable resource for rail data, IT, and information services. The company deploys data that helps railroads, rail equipment owners, and other WARD PROCTOR industry participants manage their businesses more effectively and efficiently. Railinc is the largest single source of real-time, accurate interline rail data for the North American railroad system. Located in Cary, N.C., Railinc is a wholly owned subsidiary of the Association of American Railroads. For more information, visit www.railinc.com. About TransmetriQ: TransmetriQ is a group of Railinc transportation experts, product managers, UX designers, software developers, data scientists, and critical thinkers developing insights and solutions, which help customers build businesses that compete and win. Our teams work to improve our current products and develop the next generation of business-oriented transportation solutions. Visit us at www. transmetriq.com. railwayage.com

Bill Fahrenwald

predictions compared with the traditional ETA methods. The Advanced ETA employs Artificial Intelligence (AI) and machine learning to create dynamic models based on thousands of origin-destination pairs. With Advanced ETA, available historical data is just a starting point. Utilizing sequence modeling, the system itself learns with the passage of time how to identify the most important sequence elements and other realworld factors that will impact a shipment’s arrival time. This gives Advanced ETA the ability to predict and update expected arrival times in real time as shipments move over the rail network. For example, if a train being tracked moves quickly through a certain location, this could be a signal that the train is on a high-priority schedule, and the system will take that into account in calculating how the train will perform for the balance of its trip. This way, Advanced ETA can instantaneously update the arrival predictions as often as necessary to keep receivers apprised of the status of their inbound flow of commodities and products. The first application of Advanced ETA has focused on high-volume intermodal lanes, which have generated vast data histories of operations that are less complex than for carload shipments. A look behind the scenes at the development team members who have worked on the project since 2018 reveals how far they have come, and the promise Advanced ETA holds for the future. A key member of the team has been Product Manager Danny Dever. Following a review of

update the ETA on that basis. “Because we have direct access to all North American rail freight movements, we are able to evaluate current conditions on a given route,” Dever says. “This is another source of information that makes machine learning more effective.” The initial marked improvement Advanced ETA has already achieved over previous ETA systems demonstrates the value of this approach. With continued experience, collection of more data, and ongoing learning, the system’s accuracy is expected to continue to improve. Initial development has focused on the more stable and higher volume intermodal rail routes. “Carload shipments pose additional challenges,” says Dever. “They are our next target.” Advanced ETAs—coupled with other visibility and operating improvements that have been implemented—have North America’s railroads and their shippers poised to realize major benefits in supply chain efficiency and reliability.

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People PATRICIA LONG

Railway Supply Institute HIGH PROFILE: The Railway Supply Institute (RSI) has appointed Patricia Long as its new President. She assumed her role on Nov. 29. Long and her family reside in the greater Washington, D.C., area; she will operate out of RSI headquarters there.

Long, described as “an experienced and skilled association leader,” has more than 25 years of executive experience in trade associations, most recently serving the Plastics Industry Association (PLASTICS) as interim CEO and Chief Operating Officer with oversight of industry relations, member engagement, human resources, government and regulatory affairs, and sustainability. Earlier in her career, Long spent 18 years at the National Association of Manufacturers (NAM), rising to Vice President, Policy Research and Member Communications. She previously served as Director of Communications for the National Asphalt Pavement Association (NAPA). “This is an exciting time for RSI and our member companies,” said Jack Isselmann, RSI Board Chair and Senior Vice President External Affairs and Communications for The Greenbrier Companies. “Patty’s expertise, energy and experience, combined with the recent enactment of the Infrastructure Investment and Jobs Act, brings renewed vitality to RSI’s mission to serve the rail supply industry. In the months to come, expect RSI to develop new programs, enhance member value, and organize a successful in-person RSI Expo and Education Conference next fall, as it capitalizes on the many other opportunities before us in 2022.”

TOM PRENDERGAST AECOM

HIGH PROFILE: AECOM has given Tom Prendergast a new role: New York Metro Executive, Design & Consulting Services business. Prendergast will be responsible for delivering projects across business lines and leading more than 3,000 staff within the states of New York and New Jersey.

Prendergast, Railway Age’s 2017 Railroader of the Year, joined AECOM in March 2020 as a national transit lead in the Americas, following 25 years with the New York Metropolitan Transportation Authority and three years with STV as Executive Vice President and Chief Strategic Officer. He retired from the MTA in 2017 as Chairman and CEO, after having led completion of Phase 1 of the Second Avenue Subway. Prendergast began his career more than 40 years ago at the Chicago Transit Authority. He joined the New York City Transit Authority in 1982 as Assistant Director of System Safety, and became Senior Vice President for Subways in 1991. He later became President of MTA Long Island Rail Road, then left the agency to run BC Transit, Vancouver, British Columbia. He returned to the MTA as President of NYC Transit in 2009, and oversaw the restoration of the subway system that was severely damaged in 2012 by Superstorm Sandy. Prendergast’s new role “will focus on delivering seamless solutions for AECOM’s clients that leverage its integrated delivery platform of architecture, building engineering, transportation, water and wastewater, and program and project management,” AECOM said. “He will continue to develop client relationships across the New York and New Jersey markets and focus on strategic growth areas.” 28 Railway Age // December 2021

enneth Feldman has been hired to lead WSP USA Advisory’s Federal Transit Administration (FTA) Grant Practice for major transit projects, following 19 years of FTA service. Feldman joins WSP from FTA, where he served most recently as Deputy Regional Administrator for the Region 10 office in Seattle, Wash., leading 20 transportation professionals managing a $20 billion transit project portfolio. (Region 10 covers Washington, Oregon, Idaho and Alaska.) During his tenure at FTA, Feldman provided technical assistance to transit agencies, which led to the award of Capital Improvement Grants for Sound Transit’s Link light rail system in Seattle; TriMet’s Max Orange and Green lines in Portland, Ore.; and several bus rapid transit systems in Oregon and Washington. Before joining FTA, Feldman managed design and construction grants for the U.S. Economic Development Administration’s Seattle regional office and served as an officer in the U.S. Navy Civil Engineer Corps. OmniTRAX, an affiliate of The Broe Group, has tapped Stacey Posey to serve as President of Winchester & Western (W&W). Posey will not only lead W&W, which covers 100 miles of track in Virginia and New Jersey and is one of 22 OmniTRAX small roads, but also serve as Regional Engineer for OmniTRAX’s Central Region, overseeing track maintenance and capital work. A Tennessee native, Posey has 19 years of railroad experience. Most recently, he was Chief Operating Officer for Superior Traffic Services, and he has held leadership positions at Montana Rail Link and CSX. “We are excited to have Stacey join our OmniTRAX family,” OmniTRAX President and COO Sergio Sabatini said. “His leadership, experience and skill set will complement a strong W&W team as we continue to expand our service throughout the region.” Amy Anderson, who started her rail transit career on Trinity Metro’s TEXRail system as a conductor, is now the agency’s first woman engineer, operating Stadler FLIRT diesel-electric multiple units. Anderson “had been wanting to work in the railroad industry for a number of years, and her opportunity came along in July railwayage.com

People

2019, when she was hired as a conductor for TEXRail,” the agency said. As part of her training to transition to engineer, she completed 40 hours of classroom and 180 hours of field training. She became a fully licensed and certified engineer in November. “While working at TEXRail, I realized there were no female engineers, and I made it my goal to become the first,” Anderson said. “As I gained more experience as a conductor, my list of reasons for wanting this position became longer. Every train has two crew members: the conductor and the engineer. The two work as a checks-and-balances system. As an engineer, you are typically the more seasoned of the crew members. You take on a role of leadership, teaching, and you are required to use your best judgment and skill to safely get passengers to their destinations. I was ready for the responsibility that comes with the position, and I am thankful to be given this opportunity.” Said Jon-Erik “AJ” Arjanen, Vice President and Chief Operating Officer-Rail at Trinity Metro: “The vast majority of railroad engineers are men, and we are so proud of Amy for taking the initiative to pursue her dream of becoming our first woman engineer. She’s a trendsetter for our industry. Amy’s promotion to engineer perfectly aligns with our vision of an inclusive workplace.” Doug Bourne, General Manager with TEXRail contract operator Herzog Transit Services, Inc., added: “Amy has shown what can be achieved with determination and a strong work ethic. She serves as an example to others, and I believe her new role could generate more interest among women wanting to become railroad engineers.” Maryland Gov. Larry Hogan has elevated Holly Arnold to Administrator of the Maryland Department of Transportation Maryland Transit Administration (MDOT MTA), following five months of service as acting agency leader. Arnold is overseeing the 13th largest transit system in America, with an annual railwayage.com

operating budget of $900 million and a six-year capital budget of more than $3 billion. She also leads construction of the Purple Line, a 16-mile light rail project and the largest transit public-private partnership (P3) in the nation. Arnold served previously as Deputy Administrator/Chief Planning, Programming, and Engineering Officer for MDOT MTA. Among her agency accomplishments: leading the development of the Central Maryland Regional Transit Plan; successfully applying for more than $80 million in federal grants; spearheading the asset management program; and overseeing the creation of Transit Oriented Development guidelines and station area concepts. “For the past few months and for years before that, Holly has demonstrated the power of strong leadership and a commitment to innovation that is already helping to put MDOT MTA at the forefront of transit agencies nationwide,” Transportation Secretary Greg Slater said. “Her strong skills are the perfect complement for her position as Administrator.” Shawn Vecellio has joined Transportation Technology Center Inc. (TTCI) as Senior Assistant Vice President Operations & Safety. “His 26 years of experience in the rail industry provides a strong foundation to lead TTCI’s Operations and Safety teams,” TTCI said. Prior to joining TTCI, Vecellio was Assistant Vice President, Engineering for Kansas City Southern (KCS) overseeing track maintenance, capital programs, geometry testing, rail testing, signaling, union relations, facilities and track material standards for KCS’ U.S., Mexico and Panama Canal territories. Vecellio began his railroad career with BNSF and progressed through roles at OmniTRAX and CSX Transportation as Superintendent, Roadmaster, Foreman, Engineering Technical Trainer and Manager of Program Construction. Vecellio has been involved with various technical advisory groups, as well as AREMA Committees 4 and 5, and Operation Lifesaver. He has served as Chairman for the AAR Engineering Policy Committee and the North American Chief Engineers. He earned a Bachelor of Business Management degree from Baker University and is a Certified Trainer, Technical Instructor, and a Six Sigma Yellow Belt.

MARK K. WALLACE, 52 CSX Executive Vice President Mark K. Wallace died Nov. 28 following a battle with cancer. Wallace, 52, was a 25-year railroad veteran. He was responsible for special projects and initiatives supporting CSX President and CEO James M. Foote, a role he took on in June 2021. Wallace joined the Class I railroad in 2017 as EVP of Corporate Affairs and Chief of Staff, and was named EVP of Sales and Marketing in 2018. “The entire CSX organization is mourning Mark’s loss, and we extend our deepest sympathies to his family,” Foote said in a statement on Nov. 29. “Throughout his illness, Mark maintained his characteristic passion for life, good humor and concern for the loved ones he leaves behind.” Wallace began his railroad career at CN in January 1995 as an analyst in the taxation and treasury function to assist on CN’s initial public offering. He then worked in Investor Relations for five years before becoming Chief of Staff to President and CEO Hunter Harrison, and then held other senior management roles until leaving the company in March 2010. Wallace joined Canadian Pacific (CP) in July 2012 as Vice President Corporate Affairs and Chief of Staff for Harrison, who had come out of retirement to head CP. Wallace left CP in January 2017 and joined CSX in March 2017, when Harrison took over CSX. Railway Age readers named Wallace one of 10 Influential Leaders in 2021. December 2021 // Railway Age 29

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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 88 Pine St., 23rd Floor New York, NY 10005 (212) 620-7224 Fax: (212) 633-1863 jchalon@sbpub.com AL, KY, Jon Chalon 88 Pine St., 23rd Floor New York, NY 10005 (212) 620-7224 Fax: (212) 633-1863 jchalon@sbpub.com CT, DE, DC, FL, GA, ME, MD, MA, NH, NJ, NY, NC, OH, PA, RI, SC, VT, VA, WV, CANADA – QUEBEC AND EAST, ONTARIO Jerome Marullo 88 Pine St., 23rd Floor New York, NY 10005 (212) 620-7260 Fax: (212) 633-1863 jmarullo@sbpub.com

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AR, AK, AZ, CA, CO, IA, ID, IL, IN, KS, LA, MI, MN, MO, MS, MT, NE, NM, ND, NV, OK, OR, SD, TN, TX, UT, WA, WI, WY, CANADA – AB, BC, MB, SK Heather Disabato 20 South Clark Street, Suite 1910 Chicago, IL 60603 (312) 683-5026 Fax: (312) 683-0131 hdisabato@sbpub.com

THE NETHERLANDS, BRITAIN, FRANCE, BELGIUM, PORTUGAL, SWITZERLAND, NORTH GERMANY, MIDDLE EAST, SOUTH AMERICA, AFRICA (NOT SOUTH), FAR EAST (EXCLUDING KOREA /CHINA/INDIA), ALL OTHERS, TENDERS Jerome Marullo 88 Pine St., 23rd Floor New York, NY 10005 (212) 620-7260 Fax: (212) 633-1863 jmarullo@sbpub.com

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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 Frank Rose 917-856-1808 frose@sbpub. com

AILWAY GE

December 2021 // Railway Age 31

Perspective: ASLRRA

Ebenezer Scrooge Was Nowhere In Sight

hristmas came early this year and the short line stocking was filled to the brim. The Infrastructure Investment and Jobs Act (IIJA) is the biggest federal infrastructure spending bill since, well, since ever. Compared to the 2015 FAST Act surface transportation bill, it’s a huge expansion in total funds, $1.2 trillion vs. $305 billion, and a huge increase in the breadth and scope of the bill. For short lines, it dramatically increases grant funding opportunities for the most expensive rehabilitation projects, expands short line eligibility in infrastructure programs, provides set-asides for small and rural area projects that help protect short line participation, and creates new highway grade crossing elimination funding. Just as important as what is in the legislation is what is not. The early iterations of the infrastructure bill included a railroad crew size mandate, an unworkable and unreasonable blocked crossing provision, and other onerous operational and regulatory provisions. None of this bad public policy made it into the final bill. And finally, there was no increase in truck size and weights, a perennial effort that every infrastructure bill attracts like pesky moths to a f lame. The best stocking gift in the bill is the dramatic increase in funding for the CRISI grant program— $1 billion a year over five years, minimum. That compares to the current 2021 funding level of $375 million. Most remarkable of all, the legislation pre-appropriates this funding. Historically, bills such as the IIJA authorize program funding levels, but the corresponding Appropriations bills set the actual spending levels, which is almost always less than the authorized amount. The infrastructure bill guarantees the full $1 billion in annual CRISI funding will be available, and then authorizes additional money on top of that for potential additional annual appropriations in the future. CRISI is especially important for 32 Railway Age // December 2021

short lines because it is the only federal program where short lines are directly eligible applicants, and our track record is pretty good. Since CRISI grants were first approved in 2017, 84 short lines have received more than $520 million. In addition to CRISI, the five-year bill includes: • $8 billion in guaranteed funding for the INFRA program, with a tripling of multi-modal f lexibility (up from 10% to 30%) and an increased small project set-aside (up from 10% to 15%). • $7.5 billion in guaranteed funding for the RAISE program (successor to BUILD and TIGER). • $3 billion for a new grade separation program. • $1.2 billion in continued funding for Section 130. • $2.2 billion for a port infrastructure program in which land-side rail projects are eligible. • $5 billion for a new multi-modal mega projects program. • $7.15 billion for the state freight formula program, with more multimodal f lexibility than before. It’s a lot, and taken together will allow many short lines to tackle some of their more expensive and otherwise financially out-of-reach railroad projects like bridge replacements, major steel rail replacements, new spurs and sidings, and reviving out-of-service track. It is a huge opportunity for short lines, but with big opportunity comes big competition. Days after the bill’s passage, a Wall Street Journal headline read, “How Cities Could Spend $1 trillion on Infrastructure.” The article quoted governors, mayors and state transportation directors cataloguing the huge and hugely expensive infrastructure projects they will pursue with these newfound funds. Job number one for short lines is to firmly insert themselves into this conversation. Starting now, they need to start identifying their most needed projects and preparing detailed costs and benefits and compelling narratives that they can take to their local,

state and federal officials. They need to start building support for their projects among local economic development officials, their local Chamber of Commerce, and their elected representatives in Washington who can support their applications with the USDOT decision-makers. They need to start identifying public entity partners, as all of these programs except CRISI require a public entity to be the applicant, and even with CRISI the most successful applications still involve meaningful public-partner relationships. Few if any short line projects will have the headline-grabbing allure of the mega projects like highway bridges and passenger rail expansions already being discussed by governors and mayors, so short lines need to do what they always do: work from the ground up to build support and visibility for smaller, targeted, effective freight rail infrastructure projects that would otherwise be lost in the shuff le. Job number one for the ASLRRA is to do everything we can to help short lines understand what is available, how to apply and adequately meet the requirements of the application process, and how to effectively communicate their project benefits to the Washington decision-makers. We began that task at ASLRRA’s November Annual Meeting, and we will stay on task as the Biden Administration rolls out the schedule and requirements for these programs. Christmas did come early this year, and Ebenezer Scrooge was nowhere in sight as the packages were wrapped. It should make for a great Christmas Future.

CHUCK BAKER President ASLRRA

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