Railway Age December 2024

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AILWAY G E

SERVING THE RAILWAY INDUSTRY SINCE 1856

BASIS FOR OPTIMISM? 2025 OUTLOOK

TECH FOCUS – MECHANICAL CPKC Puts Hydrogen to the Test

TTC OPERATED BY ENSCO The Rail Dynamics Laboratory

Don’t Saturate Your Almonds in Dark Matter

The Oxford Languages Dictionary defines “contemplative” as both an adjective and noun. The adjective form means “expressing or involving deep thought.” e noun form signi es “a person whose life is devoted primarily to prayer, especially in a monastery or convent.”

Well-known contemplative religious figure Father Richard Rohr recently wrote: “I recommend a serious fast from cable and internet news. The brain’s amygdala cannot process this much negativity, misinformation, opinion and paranoia. It gets hooked.”

He’s got a point. While I have no intention of retiring to a monastery (those places don’t permit spouses), I’ve made a conscious decision (“a choice made with awareness, intention and deliberation, considering all options and weighing the risks and benefits”) to limit my exposure to the “negativity, misinformation, opinion and paranoia” that pervades today’s general media. My “seasoned” amygdala—the tiny, almond-shaped structure deep in the brain’s temporal lobe that plays a key role in processing emotions, especially social stimuli—has soaked up way too much dark matter during, say, the past nine years. It’s saturated, and I won’t risk suffering from PESD (PostElection Stress Disorder,) not if I can help it.

Almonds, of course, are nuts, and there are too many cases of them running amok on the airwaves, in cyberspace and in print (remember that medium?). It’s hard enough discerning fact from fiction, data from delusional thinking, prescient predictions from politically driven proselytization, or accurate analysis from aggravated assault on our industry, for Railway Age. For that, we’ve got experienced

voices of reason like Contributing Editors Frank N. Wilner and Jason Seidl (“2025 Outlook,” pp. 10-18), and David Nahass (“Financial Edge,” p. 8). Three samples:

Wilner: “A railroad rampart against the absurd could be supply chain-knowledgeable Sen. John Thune (R-S.Dak.), elected the new Majority Leader by Republican peers—the filter against daft legislation and Looney Tunes Presidential nominations reaching the Senate floor for vote. His legacy depends on his protecting from Executive Branch aggrandizement the Senate’s Constitutional role as a co-equal branch of government. Railroads should wish him a hearty Godspeed.”

Seidl: “Historically, most post-Presidential election cycles come with increased visibility for companies that unleash more business across transports; this one will likely not be much different. What is different is where we came from, the very clear expectations of a new Administration that has a majority in both Houses, and a Federal Reserve that appears to be on track to continue rate reductions. Let’s explore this backdrop and how it will pertain to our outlook for the rail industry in 2025.”

Nahass: “ ere’s an old saying: When your taxi driver gives you stock tips, get out of the market. Here’s today’s reframe of that sentiment: When the Associated Press starts telling you there are going to be problems settling your labor contract nine months before its expiration, it might be time to cut and run.”

Indeed, we are living in interesting times; 2025 could be even more interesting—or not. In either case, Happy Holidays, and have a safe, healthy, prosperous and peaceful New Year!

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Industry Indicators

‘CONSUMERS DRIVE THE TRAIN; COOLING INFLATION BOOSTS RAIL DEMAND’

“Strong consumer demand is driving intermodal rail volumes as goods move through supply chains to meet seasonal needs,” the AAR reported last month. “The Freight Rail Index saw a 1.1% month-over-month decline in October but showed a 3.5% increase year-over-year. This relatively solid rail traffic performance signals active inventory replenishment by retailers ahead of the holiday season and highlights rail’s vital role in meeting consumer demand during this peak shopping period. Lower inflation is giving consumers more room to spend, and further stabilizes rail volumes, especially in intermodal, which is essential for moving highdemand seasonal goods. October saw an uptick in demand for durable goods, from vehicles to home improvement supplies, adding momentum to freight volumes. The surge in consumer spending is mirrored in intermodal rail traffic, which has seen a direct increase in response to heightened demand for consumer goods and imports, particularly through West Coast ports. But despite strong consumer-driven demand, the manufacturing sector continues to struggle. For rail, this manufacturing downturn has affected carload volumes, as reduced manufacturing activity lowers demand for raw materials and shipments of finished products.”

Industry Outlook

Caltrain Adopts First 10-Year Capital Improvement Plan

THE CALTRAIN BOARD OF DIRECTORS ON NOV. 26 VOTED TO ADOPT A CAPITAL IMPROVEMENT PLAN (CIP), THE AGENCY’S FIRST.

The 10-year, $3.5 billion CIP, which Caltrain said “represents a significant agency-wide initiative, developed with input from member agencies, cities and the general public in Caltrain’s three counties,” outlines capital investments through Fiscal Year 2035 designed to “provide a safe and secure railroad, maintain core services, enhance service and customer experience and deliver the agency’s adopted longrange service vision.”

According to the agency, the plan includes more than 110 capital projects led by Caltrain, alongside more than 30 projects developed in partnership with regional agencies and Caltrain’s local communities. Included are a range of projects, such as improving the safety of at-grade crossings; installing an improved security camera system throughout the corridor; completing replacement of the Guadalupe Bridges; replacing the 123-year-old San Francisquito Creek Bridge; upgrading Caltrain’s critical systems, such as its fiber-optic network, Predictive Arrival Departure Systems and the Rail Operations Control System; as well as initiating a Level Boarding Program. Caltrain said it is also “dedicated to continuing its right-of-way fencing and other SOGR (state of good repair) programs.”

The CIP also includes a prioritization framework to rank projects along the four pillars outlined in Caltrain’s mission statement: Safety, Reliability, Accessibility and

Sustainability. This, the agency said, will help Caltrain “efficiently prioritize the projects most vital to its service and the communities it serves.”

The CIP was developed in conjunction with other Caltrain plans, including the Business Plan, Transit Oriented Development Policy and Rail Corridor Use Policy, among others. Caltrain is now developing the Rolling Program, which focuses on a shorter, four-year planning horizon. This program, the agency said, “will ensure the proper alignment of funding with capital projects and programs.” Funding for these projects is expected to come from a combination of Measure RR funds, Caltrain’s member agency contributions, Regional Measure 3 funds, and the state and federal governments.

“Capital projects and programs vary in funding needs ownership of the right-ofway and sponsorship,” the agency noted. “All require Caltrain staff involvement to varying degrees. Early identification of capital projects and programs is critical to planning and allocating resources (staff and funding) accordingly.”

Defining Capital Projects and Programs: The CIP portfolio organizes the more-than 140 capital projects and programs into seven Strategic Initiatives.

1. Provide a Safe and Secure Railroad.

2. Maintain Core Services

3. Enhance Service and Customer Experience.

4. Deliver a Long-Range Service Vision.

5. Mandate, Compliance and Emergency Projects.

6. Partner with Local Communities.

7. Contribute to the Region’s Economic Vitality.

Projects and Programs with Systemwide Benefits: During the spring and summer of 2024, Caltrain met with member agencies “to define capital projects and programs that provide systemwide benefits. A systemwide capital project is defined as a project critical to deliver Caltrain’s main line service or that provides benefits to all customers, regardless of the project’s location.”

Projects that qualify as “systemwide” include:

Category 1: SOGR projects “that replace or rehabilitate an asset at the end of its useful life, have low redundancy or have reached technical obsolescence, and that are critical to running or maintaining Caltrain passenger service safely. If that asset fails, it impacts Caltrain’s ability to operate its main line service.”

Category 2: Recurring capital programs “that enable Caltrain to take proactive measures to run its passenger service safely and avoid asset failures that would disrupt Caltrain’s service.”

Category 3: Recurring planning programs “that enable Caltrain to deliver its service and develop a roadmap of capital investments.”

Category 4: Capital projects or programs “that have been identified in a planning study that covers the entire main line corridor and that provide benefits to Caltrain’s main line service in terms of safety and security, reliability, customer experience and performance.”

Category 5: Projects that are mandates required by a regional, state or federal regulatory agencies.

Caltrain said the 10-Year CIP “is not financially constrained. Caltrain will need to identify new capital funding strategies and sources to support the recurring SOGR program and to advance enhancement and expansion projects identified in the CIP. The funding needs to deliver these projects and programs vary over time and are among the Strategic Initiatives for Caltrain-initiated and sponsored capital projects and programs.”

Consultants to Caltrain in developing the plan were WSP USA, ARUP and CPCS.

FRA Awards AtkinsRéalis STORM BPA Contract

The Federal Railroad Administration has awarded Montreal-based global engineering services and nuclear company AtkinsRéalis Group Inc. a five-year, $60 million STORM (Support Technical Oversight Review and Monitoring) services BPA (Blanket Purchase Agreement) contract. AtkinsRéalis will provide program support, technical assistance, oversight, compliance reviews and project monitoring on behalf of FRA. Projects within STORM “are in various stages of development including planning, environmental review, preliminary design, final design, construction and operation,” the company said, adding that as an FRA partner for more than 10 years, it has reviewed Positive Train Control Safety Plans for and is an operating partner of the Transportation Technology Center Operated by ENSCO. “FRA administers grants and loans through the STORM program to assist state and eligible entities in financing the planning, acquisition, design, construction and improvement of freight rail and intercity passenger rail infrastructure, facilities and equipment,” AtkinsRéalis noted. “Amtrak rail service operating support is also managed through STORM. We have more than 2,000 rail projects in our portfolio including Amtrak, commercial, passenger and freight rail work across the U.S. and 50 high-speed rail tasks globally, with 60-plus years of experience providing full lifecycle services to federal agencies,” the company said.

Rail components and services provider A. STUCKI COMPANY last month completed the sale of VELOCITY RAIL SOLUTIONS to private equity firm WIND POINT PARTNERS . Financial terms of the transaction were not disclosed. Headquartered in Draper, Utah, with 75 sites across the U.S., Velocity specializes in providing mobile fueling services to locomotives and other railroad equipment, as well as complementary locomotive services. It serves more than 300 rail yards, with 450 employees utilizing 250-plus specialized vehicles. “Under Stucki’s ownership, Velocity has expanded its offerings and grown significantly while delivering operational consistency, a reflection of Stucki’s core focus on serving its customers,” said Moon Township, Pa.based Stucki, which in 2022 became a portfolio company of STELLEX CAPITAL MANAGEMENT. Stucki noted that it has grown and diversified since its founding in 1911 to supply dynamic control products, brake system components, springs, bearings and track infrastructure and other products, as well as remanufacturing, repair and additional services. The company operates facilities throughout the U.S., Mexico, and Brazil. Its divisions include ALCO SPRING INDUSTRIES, AMERICAN INDUSTRIES,

AMERICAN TURBOCHARGER TECHNOLOGIES, BR&L (BIRMINGHAM RAIL & LOCOMOTIVE), DIMEC RAIL SERVICES, INDEPENDENT DRAFT GEAR, MAGNUS, SALCO PRODUCTS INC., SECO MACHINE, STUCKI ROLLER BEARING, and STUCKI LOCOMOTIVE SERVICES. “At Stucki, our goal has always been to drive innovation and deliver unmatched value to our customers,” said Ron Port, who in August succeeded John O’Bryan as CEO of the company. “The sale of Velocity is a pivotal step in our journey to integrate our business, focusing our resources and expertise on the strength of our consolidated portfolio to better serve our customers. Chicagobased Wind Point on Nov. 25 reported that it is partnering with Velocity management, led by President Jeff Chesler. “Together, Wind Point and Velocity leadership intend to invest in organic growth initiatives and pursue strategic acquisitions to expand the company’s existing offerings,” according to the private-equity firm, which describes itself as “an active investor in both the logistics services and maintenance services sectors,” with select prior investments including RAILWORKS (now owned by BERNHARD CAPITAL PARTNERS), STG LOGISTICS, QUANTIX, VALICOR, SMART CARE, and D&H

UNITED. “Velocity will also seek acquisitions into other complementary, missioncritical rail-related services for both Class I railroads and industrial shippers.” Wind Point said it evaluated Velocity alongside a group of advisors “with significant experience spanning Class I railroad and railcar services.” The Board includes Paul Titterton, who currently serves as Executive Vice President and President of North American Rail at GATX CORPORATION. Wind Point noted that it will continue exploring additions to Velocity’s Board and leadership team as the platform expands. “This exciting new partnership with Wind Point offers Velocity access to a comprehensive executive network and additional resources that will significantly enhance our ability to grow and better support our customers,” commented Jeff Chesler. “The critical nature of our existing services necessitates an unwavering focus on providing value, safety, and reliability to our customers, and we look forward to adding compatible services to our portfolio.” For Stucki, RBC CAPITAL MARKETS, LLC, served as financial advisor and GREENBERG TRAURIG served as legal advisor. For Windpoint, KIRKLAND AND ELLIS LLP served as legal counsel and KPMG LLP provided transaction advisory services.

Financial Edge

An Abundance of Impactful Events

It’s t he Holiday Season (cue your favorite version of the Andy Williams classic). It’s the season of giving, and true to the spirit of the season, the railroad industry has provided an abundance of impactful events

First up, the current labor picture: Elections do funny things to people. e railroads are ush with the idea that the incoming Administration will be a friend to big corporate. at immediately caused an equally concerned reaction from those unions that have not signed agreements with the railroads in advance of a contract end in July 2025. e question remains open. Is the President-elect a friend of the working class or will he follow the Republican stance favoring management over unions?

An Associated Press report notes that the railroad unions (including BLET) that have not agreed on new deals have had the opportunity to see the leverage exercised by the longshoreman union’s 62% six-year salary increase and the rejection of other labor deals not viewed favorably by unions at other companies like Boeing.

What tension! On one hand, a gleaming brass ring sits in front of the unions’ future, within reach. On the other, labor must worry about what kind of shake it might get from the Executive Branch if corporate policy is favored over labor rights.

Perhaps U.S. rail unions can take some con dence at the swi resolution in Canada when the Canadian government forced labor back to work, called o the strike and mandated mediation. Or perhaps not, as since October, negotiations seem as protracted as they did before mediation was ordered in August.

ere’s an old saying: When your taxi driver gives you stock tips, get out of the market. Here’s today’s reframe of that sentiment: When the Associated Press starts telling you there are going to be problems settling your labor contract nine months before its expiration, it might be time to cut and run. at is a 2025 story to watch.

Next up: e Transportation Security Administration (TSA) calls on the railroads to provide more data on how they are securing their technological systems

from cyberattack. Any industry veteran knows that “sharing information” are not two words associated with rail transportation and railroad relations. Apparently, TSA expects something di erent. In early November, the Wall Street Journal reported that a er the 2021 Cyberattack on the Colonial Pipeline, TSA instituted annual cyber directives aiming to prevent future cyberattacks on critical infrastructure—think bus operators, pipelines and, you guessed it, railroads (passengers and freight).

Since 2021, the TSA has continued to tighten the requirements on parties it oversees and to expand the scope of required reporting from the critical infrastructure group. e railroad critical infrastructure group is broad: 73 of the more than 500 freight railroads would fall within TSA’s new requirement. e agency will require reporting of all cyberattacks and also require an annual summary of the individual railroad’s security plan.

Why does this matter? Stop & Shop supermarkets (known as Giant in Eastern Pennsylvania) recently su ered a second cyberattack. Both attacks led to supply chain disruptions and empty shelves. Former Van Halen front man Sammy Hagar and TV cooking personality Guy Fieri (“Diners, Drive-ins and Dives” fame) recently had two trailers with $1 million (that’s 24,240 bottles for those keeping score at home) of Extra Anejo Single Barrel Tequila “redirected” from Laredo to a Los Angeles warehouse from its Pennsylvania destination.

While tequila or supermarket shelves might not be the real concern of the TSA, the agency is worried about loads of LNG or TIH commodities being hijacked by hackers or by locomotives bypassing technology safety measures and causing derailments and main line disruptions. It is difficult to imagine a train being rerouted like a trailer of tequila, but the reality is that businesses using technology (which is all businesses) are encountering more-sophisticated cyberattacks more frequently.

e cost estimate is more than $680 million over the next decade. Given the propensity of government agencies to

On one hand, a brass ring sits in front of the unions’ future, within reach. On the other, labor must worry about the shake it might get from the Executive Branch if corporate policy is favored over labor rights.”

underestimate the actual costs of “government projects,” it’s not a leap to assume that estimate is light. Factor in the ongoing need to ramp up as technology increases in sophistication, and that number could double or triple.

It will be interesting to see how far the railroads li the veil on their policies and practices or if they decide to ght the request in the courts. On some fronts— RailPluse for example—there is some willingness to embrace being more open about data. is matter is likely to promote a di erent response. Public comments on the new TSA policy are being accepted until February 2025. Have at it.

e best of the Holiday Season to readers and their families and best wishes for a peaceful and successful 2025.

Got questions? Set them free at dnahass@ rail n.com.

DAVID NAHASS President Railroad

AMID DISCORD, A BASIS FOR OPTIMISM?

If “regaining strength” best describes the state of the rail industry in 2024, “we’ll keep at it, however …” may well de ne 2025—indeed, the next four years. is past year, the railroads strived to maintain a steady speed, with clear signals, and their e orts have been paying o in improved service and recovering tra c levels. ere have been signs of top-line growth, and the prevailing mood has been optimistic, but measured. We approach this year’s Outlook report

as a series of questions. On balance, the answers at this point are leaning toward the positive side. Will the Surface Transportation Board’s (STB) disingenuous, pointless lecturing of Class I CEOs on their business plans and investment strategy subside as the current Chair is stripped of that title and removed from his bully pulpit, so the agency can return to doing what it’s supposed to, with collegiality and consensus building? It now appears likely—thank goodness. Will the Federal Railroad Administration

(FRA), free of its luddite, labor-lapdog leader, toss its politically driven agenda and return to fact-based decision-making based on science and data? We believe so. Will labor negotiations based on mutual trust and respect—despite navigating the uncertainty of collective bargaining outside of national handling—continue? We hope so.

On the negative side, will new transnational U.S.-Mexico-Canada services that show much promise be squelched by proposed massive tari s on goods brought

Bill Steck

Daybreak on Union Pacific’s Mojave Subdivision: Signal aspects indicating limited speed, and scattered clouds.

in from USMCA trading partners? Probably not, because such tari s would violate the terms of the USMCA—which the Presidentelect himself signed in 2020. Will intermodal su er from increases in existing tari s on Chinese imports imposed by the outgoing Administration? We hope not. Keep in mind that in a trade war, everyone loses.

Following are two perspectives on what 2025 could bring. Keep the throttle in Notch 8, but be prepared for some rough track and Approach Medium signal aspects.

PURSUING NORMALCY AMIDST DISCORD

New Administrations are Forrest Gump’s box of chocolates: “You never know what you’re gonna get.”

• Democrat Jimmy Carter penciled atop DOT Secretary Neil Goldschmidt’s priority list, “railroad deregulation.”

• Republican Ronald Reagan’s Economic Recovery Tax Act tossed railroads a $2.5 billion accelerated-depreciation windfall.

• Republican George H.W. Bush broke his “Read my lips: No new taxes” pledge.

• Republican George W. Bush retained Democrat Linda J. Morgan as STB Chairperson.

• Democrat Barack Obama declared war on coal.

• Democrat Joe Biden, “the most prounion President in American history,” shoved rail labor under the bus to avoid an economy-jolting work stoppage.

Once the Federal Railroad Administration’s advanced-technology- stifling leader is gone, its highly qualified RD&T staff can return to collaborating with railroads on safety enhancing, AI-based technology, like this track inspection drone at CSX’s Rice Yard, Waycross, Ga. Currently, this system, equipped with hi-resolution cameras, supplements FRA-mandated manual yard track inspections with frequent runs, detecting faults and helping prevent derailments.

Comes now President-elect Chaos, sowing discord while demanding congressional and judicial docility to facilitate a radical reformation of public policy.

A railroad rampart against the absurd could be supply chain-knowledgeable Sen. John une (R-S.Dak.), elected the new Majority Leader by Republican peers—the lter against da legislation and Looney Tunes Presidential nominations reaching the Senate oor for vote. His legacy depends on his protecting from Executive Branch aggrandizement the Senate’s Constitutional role as a co-equal branch of government. Railroads should wish him a hearty Godspeed.

une was South Dakota’s rail regulator; consulted for regional Dakota, Minnesota & Eastern; served on the House Transportation & Infrastructure (T&I) Committee; mediated a BNSF-shipper rate dispute before his Senate election; and as Commerce Committee Chair, shepherded passage of the STB Reauthorization Act. He steered passage of the Fixing America’s Surface Transportation (FAST) Act, enabling the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program that funds grade crossing improvements, short line

track upgrades and intermodal connectivity. une’s reputation for critical thinking, respect for contrary viewpoints and datarst demands should serve railroads well.

Also in the Senate, expect Ted Cruz (R-Tex.), an advocate for market-driven results, to chair the Commerce Committee. Todd Young (R-Ind.) likely will chair the Surface Transportation Subcommittee.

House T&I Chairperson Sam Graves (R-Mo.) will return to that post for a fourth two-year term a er being granted by House Republicans a waiver from that party’s term limitations for committee chairpersons of three two-year terms. T&I Committee member Rick Crawford (R-Ark.) had sought elevation. Such waivers are rare—this one punctuating the respect Republican House members have for Graves. Since Republicans instituted committee chairperson term limits in 1992, no Republican has served as T&I Committee chairperson more than six years. Graves had been under consideration as the President-elect’s choice for Transportation Secretary.

e future is unclear for House Rail Subcommittee Chair Troy Nehls (R-Tex.), mired in an ethics investigation and embarrassingly weak on rail economics. Nehls

also su ers a lack of independent thinking, saying if instructed by President-elect Chaos to “jump three feet high and scratch your head,” he would.

A Surface Transportation reauthorization bill could include rail economic reregulation, new rail safety mandates, and authority for longer and heavier trucks already underpaying bridge and pavement damage responsibility. Anticipated corporate tax reductions and eased environmental regulations will bene t railroads, but depending on the magnitude of new and increased tari s—and retaliation against American exports—freight volumes could su er. e President-elect says he will impose 25% tari s on all imports from Canada and Mexico and an additional 10% on Chinese imports.

Amtrak federal funding and grant and tax rebate programs for short lines face particular scrutiny. Notable is the President-elect’s assigning his First Buddy, the Tesla, SpaceX and X guy, to head a fanciful Department of Government E ciency—presumably headquartered in Winnie-the-Pooh’s Hundred Acre Wood—to trim $2 trillion in federal spending. He will learn that menacing such funding transforms local, state and federal

William C. Vantuono

2025 FREIGHT RAIL OUTLOOK

Republican power brokers into disturbed hornets’ nests. e President-elect was bbing when he said of Elon Musk, “I can’t get rid of him.”

Anxiety attends President-elect Chaos’ pledge to weaken Civil Service protections and cashier politically disloyal decisionin uencing federal workers. e Vice President-elect said, “Fire every single mid-level bureaucrat [and] replace them with our people.”

FRA: For those understanding the transformative role of technology in reducing costs, increasing e ciency and improving safety, President Biden’s FRA chief Amit Bose is a regret, having shelved fact-based decision-making predicated on science and data in favor of a luddite agenda. He violated statutory instructions that rulemakings score positive bene t/cost ratios; sent dispatcher and signal employee certication rules deep into negative territory; impeded deployment of advanced train,

air brake and track inspection technology; issued an evidence-lacking mandate for minimum two-person train crews; and failed to rule on requests for waivers to test new safety technology. All are before courts as “arbitrary and capricious,” in violation of federal law.

A new Administrator will report to DOT Secretary-nominee Sean Du y. Although having no relevant transportation experience, Du y, when in Congress, was a perennial co-sponsor of bills to extend a short line rehabilitation tax credit.

Congress can derail future Bose-like luddites by substituting performance-based safety standards in place of prescriptive regulation. Rather than prescribe speci c actions, FRA would specify safety outcomes, allowing each railroad to devise its own cost-e ective means of achieving the target. Performance standards had the support of former FRA Administrator Jolene Molitoris and former National Transportation Safety

Board Chairperson Deborah Hersman— both Democrats.

On the short line wish list is FRA standardization and streamlining of the grantmaking process.

STB: At the STB, independent of the Executive Branch but where the President names a Chairperson from among ve Senate-con rmed members, Democratic Chairperson Robert E. Primus, whose second (and nal by statute) term expires Dec. 31, 2027, will be demoted.

Primus, elevated to Chairperson by Biden, proved another statute-straying disappointment. Despite lacking a business, rail, economics or nance background, he targeted for criticism rail CEOs for their e ciency-driven operating strategies and deployment of productivityenhancing technology—complaining they reduced headcounts. His preoccupation with lecturing CEOs on business plans and investment strategy contributed to STB workload delay.

Joining Primus and predecessor Martin J. Oberman in promoting labor’s agenda has been fellow Democrat Karen J. Hedlund, whose rst term expires Dec. 31, 2025. A less doctrinaire Hedlund is said to be more open to collegiality and consensus building.

e new STB Republican Chairperson likely will be Patrick J. Fuchs, whose second term expires Jan. 14, 2029, or Michelle A. Schultz, whose rst term expires Jan. 11, 2026. Both have avoided partisan posturing, focusing on fact-based pragmatic outcomes. Fuchs, who earned rail, shipper and labor support for his second term, may have the edge. His résumé includes draing the 2015 STB Reauthorization Act when reporting to Sen. une. e President-elect also could name as STB Chair a new Republican member lling the vacant h seat.

Shippers seek reconsideration of a discarded competition-based standard that would allow second-railroad access to sole-served facilities (reciprocal switching). ey bewail the STB’s exempting contract tra c and presuming a second railroad willing to compete. Railroads allege an alternative service-based standard exceeds STB authority.

Additionally, shippers complain the STB is ine ective in “responding to rate and service consequences of operating-ratiofocused Precision Scheduled Railroading.”

A railroad rampart against the absurd could be supply chain-knowledgeable Sen. John Thune (R-S.Dak.), elected the new Majority Leader by Republican peers—the filter against daft legislation and Looney Tunes Presidential nominations reaching the Senate floor for vote.

We’re always improving our network to deliver more: productivity, and greater fuel e ciency than ever

As we look to the future, we will continue to push operational excellence even further. Because we’re dedicated to delivering be er service for you — so you can do the same for your customers.

2025 FREIGHT RAIL OUTLOOK

ey also wonder the fate of a decade-old challenge to charges for moving empty tank cars, and an eight-year-delayed decision on whether to reregulate certain classes of service.

Although Final Offer Rate Review (FORR) for determining maximum reasonable rates was court-vacated, a Congressional mandate to find simplified alternatives to a complex and expensive Stand-Alone Cost (SAC) test remains unsatisfied. Complicating the effort is the court’s ruling that rate reasonableness cases be formal, on-the-record proceedings. The STB says that contravenes Congress’ simplification instructions.

A court challenge to a California Air Resources Board (CARB) edict to banish from state operation less environmentally friendly locomotives is on pause awaiting an Environmental Protection Agency determination if the order is permitted under the Clean Air Act. A favorable Supreme Court ruling on the Uinta Basin Railway Project could relieve the STB of burdensome evaluations, such as the end-use of commodities, when deciding petitions for new construction authority.

STB’s new Chairperson can help re-establish, through constructive dialogue, mutual trust with rail CEOs; encourage private-sector innovation; improve decision-making transparency; recruit analysts with expertise in rail economics, finance and operations; hire computer scientists to upgrade data processing tools; explore use of artificial intelligence; partner with Wall Street for

revenue adequacy determinations; and engage in data sharing with FRA.

National Mediation Board: Barring a retirement, the three-member independent National Mediation Board, whose Chairperson rotates annually, will remain with two Democrats until at least July 1, when the three-year term of Deirdre Hamilton expires. Republican Loren Sweatt’s term expires July 1, 2026; Democrat Linda Puchala’s on July 1, 2027.

A new STB Chair can help re-establish mutual trust with railroads through constructive dialogue.

With a pattern already established in this round of multi-employer collective bargaining, unions not settling can expect to be parked in mediation inde nitely. If released, expect Congress quickly to head o a work stoppage by imposing the pattern.

With John une at the Senate helm, normalcy returning to the FRA and STB and contemplated labor peace, there is basis for optimism in 2025, no matter discord elsewhere.

(Wilner’s latest book, Railroads & Economic

Regulation, is available from SimmonsBoardman Books at https://www.railwayeducationalbureau.com/, 800-228-9670.)

OFF TO THE RACES OR STILL SOMEWHAT CHALLENGED? BY JASON SEIDL

Historically, most post-Presidential election cycles come with increased visibility for companies that unleash more business across transports; this one will likely not be much di erent. What is di erent is where we came from, the very clear expectations of a new Administration that has a majority in both Houses, and a Federal Reserve that appears to be on track to continue rate reductions. Let’s explore this backdrop and how it will pertain to our outlook for the rail industry in 2025.

2024 gave us a continuation of recessionary truckload pricing, a Canadian rail strike, an East Coast/Gulf Coast port strike, Canadian port strikes, Red Sea shipping disruptions and a few hurricanes to boot. Several of these events drove freight to the West Coast from the East Coast. While a good portion of the Canadian rail strike freight that shi ed to the East Coast is more of 2024 phenomenon, the East Coast/Gulf Coast strike by the International Longshoremen’s Association (ILA) continues to have rami cations in the North American supply chain. Although the ILA returned to work, a permanent contract was not signed. A framework was agreed upon with the expectations that both sides would continue to negotiate until Jan. 15. As I write this, the ILA has walked away from the negotiation table over partial automation and shippers are already taking steps to divert more freight to the West Coast to protect their supply chains from yet another potential port

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2025 FREIGHT RAIL OUTLOOK

strike. is continued shi to the West Coast will likely bene t not only the western carriers but also the eastern ones. Indeed, with truckload rates so low, some of the freight that came into the East Coast was not being transported via rail. Additionally, the length of haul on transcontinental moves tends to be longer for the eastern carriers.

e President-elect campaigned on placing tari s on imported goods from all over the world (60% from China and 10% from all other locations). While there is some debate on the downstream economic impacts, there can be little doubt that shippers have reacted to the threat of such a policy. Indeed, we have seen several instances of shippers admitting to pulling freight forward. While hard to quantify at this time, we do believe that the impacts of freight being pulled forward will show up in fourth-quarter 2024 and rst-quarter 2025.

Most expect the incoming Administration to help keep the corporate tax rate steady and work to further reduce governmental regulations. Reducing regulations would be welcomed for the rail industry as it is likely

to help carriers obtain investments in their networks more rapidly, as well as to potentially help bring more manufacturing back to the U.S. (although that would likely have more of an impact beyond next year). e railroad industry will also keep a watchful eye on the STB, where we have two Republicans, two Democrats (including the Chairman) and a vacant seat. We fully expect the President-elect to replace Chairman Robert Primus and name one of the Republican Board members as Chairman. However, we do not believe the STB will be at the top of the list in terms of appointments (recall that during his rst term the President-elect took more than a year to appoint someone to the STB). Although the STB is a non-partisan organization, under a Republican majority we would envision the appetite to impose further regulations on the rail industry to wane signi cantly.

So where does this leave us for industry expectations next year for U.S.-based railroads? We see low single-digit volume growth that bene ts from interest rate cuts,

the eventual recovery in industrial manufacturing, and modal shi s from the highway to the railroads. On the rail pricing front, our outlook is for roughly 3%-3.5% growth in 2025. Pricing should be somewhat constrained by the ongoing weakness in the truckload marketplace. While we expect truckload pricing to begin to recover, there has historically been a lag for intermodal pricing. Hence, the intermodal pricing recovery story is likely more of a 2026 event.

Given these assumptions, we expect to see a range of 5%-7% for the U.S. industry’s revenue outlook. Our forecast is for the railroads to improve their operating margins as the rate of rail cost in ation slows somewhat and carriers make operational gains. is should enable operating pro ts for the industry to reach double-digit growth in 2025. Given that we do not expect much of a jump in capital expenditures, the railroads should generate more cash, all other things being equal next year. is cash is likely to be used to modestly grow dividends and continue to buy back stock.

AILWAY GE

CSX Moving Toward ‘ONE Intermodal’

The ONE CSX initiative is about culture change, not just at CSX, but across the entire industry, every facet of the railroad— safety, human resources, operations, service design, C&S and mechanical, to name a few.

ONE CSX is also about growth. Intermodal is a key part of it. Improving operations and customer service at CSX’s 31 intermodal terminals and 14 port operations, which encompass the entire Eastern seaboard and much of the Midwest, falls under the purview of Carrie Ann Crozier, Vice President of Intermodal Operations.

Carrie Ann came to CSX in January 2024. From a railroading family, she’s got 25 years of experience. “I came to CSX mostly because I was attracted to the journey the company is on,” she says. “We’re undergoing a big cultural transformation. And we play an important role in international trade, especially on the East Coast, a heavily populated area.”

Intermodal is process-driven, and Carrie Ann’s experience in operations and network

planning strategies, from both a commercial and supply chain perspective, gives her a broad understanding of the business. “I work with a strong group of people who are willing to try new things, open to feedback and doing things differently. We’ve been able to affect some positive change.”

For example, CSX’s Fairburn, Georgia, Intermodal Terminal had been plagued with a history of underperforming. “If you look at the intermodal standard on CSX, Fairburn was always an outlier,” Carrie Ann points out. “I visited Fairburn as soon as I was on the property at CSX. It’s a great facility. There had been a lot of investment. It’s technologically advanced, with remotely operated cranes. But some things weren’t going very well. Using what our operating plan was enabling, there were some quick wins we were able to implement. Sometimes it’s leveraging experience from elsewhere, knowing about ‘what does good look like?’ We quickly adjusted the operating plan. We brought in people from across the network on the operating and commercial sides. We identified and began tackling 36 areas of opportunity, one by one. We made some upgrades that gave our employees a safe and comfortable place to come to work.”

Working through the process changes, Carrie Ann’s team leveraged data and analytics in a strategic manner to measure performance,

staring with a baseline. “That gave us opportunities to look at,” she notes. “The operating changes we made weren’t revolutionary, but they were needed, along with process and personnel changes. Those changes helped us get to where we are. A key metric of intermodal terminal success is truck turn times. Ours were lagging behind the industry when we started, but now they’re best in class. The experience for trucks serving Fairburn is much improved. This beautiful terminal was once believed to be at capacity. We’ve now added capacity by realizing prior unused capacity. That has helped us weather disruptions during times when resilience would normally be tested. More important, it has allowed Fairburn to grow.”

CSX employed best practices developed at Fairburn at its Central Florida ILC in Winter Haven and is continuing with intermodal and port facilities in the Northeast—New Jersey, Baltimore, Philadelphia, as examples. “We looked at equipment we use across all our terminals, and we started to map out and benchmark a roadmap of what success would look like, how we should operate the equipment, and the expectations for it,” Carrie Ann says. “We’ve substantially reduced our equipment footprint. That gives us resiliency and continuity and provides access to quality maintenance and repair.”

In terms of growth, “we’ve got excellent footprints and opportunities,” Carrie Ann says. “Going back to what drew me to CSX, I didn’t really know how great our network was before I came, but now that I’m here, it’s exciting. It’s a complex network. I was used to a linear network, so my experience was completely different. When I started to look at CSX, I thought we could simplify it. But that’s not what our business needs. We operate in a condensed, competitive landscape for converting truck to rail as well as getting goods into dense urban centers. And while our facilities may not be long distances apart, that’s what’s required on our network. That’s the opportunity we have.”

Carrie Ann Crozier, among the newest members of the ONE CSX team, is looking forward to what CSX will look like in the nottoo-distant future. “From my experience, CSX is differentiating itself,” she says. “We’re going to be the bar that’s set for the rail industry.”

NE T GEN

FREIGHT RAIL

CREATING GROWTH IN FREIGHT RAIL

A unique opportunity to discuss the freight rail industry’s future with thought leaders.

ATTEND TO LEARN ABOUT:

• New Paradigms for North American Freight Rail

•Building and Expanding CPKC’s Transnational Service Network

•Long-Train Safety Research Initiatives

•Engineering Excellence at G&W

•Hydrogen Power for Main Line Heavy-Haul Freight

Luncheon Honoring Railway Age’s 2025

25 Under 40 “Fast Trackers”

KEITH CREEL President & CEO CPKC

JOE HINRICHS President & CEO CSX

CHRISTOPHER P.L. BARKAN, PH.D. Executive Dir., RailTEC & The National Univ. Rail Center of Excellence Univ. of Illinois at Urbana-Champaign

SAFE, SMOOTH, JOLT-FREE

Users rely on tough yet resilient surfaces to perform under heavy rail and road traffic.

Concrete. Rubber. Composite. Timber. ese are the numerous ways to surface a highway/ rail grade crossing to withstand the long-term pounding of heavy trains while providing a safe, smooth and jolt-free ride for motor vehicles.

Railway Age reached out to ENSCO Rail, Inc.; L.B. Foster; HiRAIL Corporation; TieTek Global LLC; American Concrete Products; Omega Industries Inc.; Omni Products Inc.; Oldcastle Infrastructure; Koppers; and Stella-Jones Corp. to inquire about their technologies, what their customers are looking for and the state of the market. Following is a roundup of o erings from those who chose to participate.

OMEGA INDUSTRIES INC.

“Business has been very steady this year, and we expect more of the same for 2025,” said National Sales Manager Mark Mottola.

Omega has been testing a new state-ofthe-art concrete mix design to help improve tensile strength and durability of its concrete, Mottola tells Railway Age. “ e goal is to extend the current lifespan of our product by several years.” Additionally, the company is on the verge of signing a multi-year crossing contract with a Class I, said Mottola, who adds that customers are looking for “prompt service, fair pricing, quick turnaround times, and a quality product.”

OMNI PRODUCTS INC.

In 2024, Omni “stands at the forefront of fabricating custom concrete grade crossing panels for numerous high-pro le projects across the U.S. and Canada,” the company tells Railway Age. “Leveraging decades of experience and engineering expertise, Omni con dently undertakes virtually any custom concrete grade crossing project. Our capabilities extend to handling severe

30-plus-degree curves with e ciency and precision. Our commitment to providing top-quality manufactured grade crossings, whether in concrete, full-depth virgin rubber, or a variety of virgin rubber rail guard concrete tub modules, fuels Omni’s ongoing success.”

Omni adds it “proudly o ers products made in America, including a robust sixyear factory warranty against rips and tears on all of our rubber products—a guarantee unmatched in the grade crossing industry.” e company’s portfolio consists of several “exclusive” grade crossing products, including its steel-reinforced rubber, which is designed for extreme applications, such as fork truck tra c. Omni’s original VRA (Virgin Rubber Railguard) and the innovative VRAZ Railguard, both manufactured in-house, “provide clients with the toughest solid virgin rubber rail seal available,” the company notes. ese

Omega has been testing a new concrete mix design.

products come with a six-year factory warranty, “ensuring unparalleled protection and performance.”

Omni’s ECR products and Improved Concrete (IC) designs offer additional alternatives tailored to specific applications, showcasing the company’s ability to “customize solutions for any project.” The company’s proprietary concrete tub designs, TraCast, are available in two versions, including custom wide, heavy-duty modules “engineered for extreme applications.”

“Current business is brisk and steady moving into 2025,” Omni tells Railway Age . “Keeping our focus on production schedules along with quality products delivered on time, backed by expert and timely customer service, are what Omni strives for to exceed our customers’ expectations. Look for spill pans beginning in 2025. We are currently working on a specific design of drip pans to fill the requirements related to secondary containment.”

The goal of Omega’s new concrete mix design is to extend the lifespan of its current product by several years.

HIRAIL CORPORATION

“ e market for grade crossings is currently strong with the Class I’s, short lines and transit agencies,” according to Director of Sales and Marketing Jim Overfelt.

HiRAIL is continuing its work developing new full-depth rubber crossing pro les to t new concrete tie designs and new fastening systems. “ e majority of concrete ties produced domestically are not at or rectangular shaped like a timber tie,” Overfelt explains. “Most concrete ties have an area that slopes down from the rail seat toward the middle of the tie that meets a at section in the middle. Over the course of many years, the concrete tie manufacturers have made these areas di erent lengths. As these dimensions change, we change to make our product t the contour of the concrete tie. Our design capabilities allow the client to use the same concrete tie pro le throughout their entire system and not have to transition to at concrete ties or timber ties for their crossings.

“On top of the changes in shape, there have also been new fastening systems introduced that require us to add more clearance. Consequently, we end up changing our design to t these requirements. It seems as though every year there is a new fastening system and concrete tie design, and we are fortunate to have the ability to design a crossing product that will accommodate it. We also seem to be getting more inquires for direct- xation track crossings, which require a lot of the same design capabilities that we use for concrete or steel tie crossings.”

“Our customers are looking for a product that is low-maintenance, reliable and competitively priced,” Overfelt adds. “Customers are also looking for a product that can be recycled at the end of its life and that is manufactured in the U.S. HiRAIL offers all of these benefits, which I believe is the reason for much of our success.”

HiRAIL is continuing its work developing new full-depth rubber crossing profiles.

CPKC

PUTS HYDROGEN TO THE TEST

After successfully deploying a prototype in Alberta, CPKC is testing its newest hydrogen-powered locomotive on heavy line haul coal trains in the mountains of British Columbia.

For more than a century, the mountains of British Columbia have been the Canadian Paci c Railway’s testing ground. During the rst half of the 20th century, it wasn’t unusual for the railroad to send its largest and most powerful steam locomotives west to the Rocky and Selkirk mountains to see what these machines could do. e practice continued into the diesel era, particularly

on coal trains that originated out of the mountains that surround Sparwood, B.C., beginning with Montreal Locomotive Works M-630s, then GMD (Diesel Division of General Motors of Canada, Ltd.) SD40-2s, and nally General Electric AC4400CWs is year, that tradition continues as Canadian Paci c successor Canadian Paci c Kansas City (CPKC) tests an entirely new type of main line locomotive—powered by hydrogen. It’s

a technology that railroad o cials believe could change the entire industry, dramatically reducing emissions and moving it away from burning fossil fuels.

CPKC President and CEO Keith Creel has called the technology “transformational” and has said that if a hydrogen locomotive can work in heavy-haul service in the rugged mountains of western Canada, “it will work anywhere.” e person behind CPKC’s groundbreaking Kevin Dunk

hydrogen locomotive program is Assistant Vice President Operations Technology Kyle Mulligan. A few years ago, Mulligan’s nowretired boss, Senior Vice President Operations Scott MacDonald, was challenged by investors about what the railroad was doing to move away from burning diesel fuel. MacDonald didn’t have a quick answer and brought the question to his team. Mulligan, who has worked in operations in the past and understood the challenges of running trains in rugged territory in the dead of winter, knew that a battery-powered locomotive wouldn’t work for CPKC, even though some in the industry are exploring that as an option.

“In cold weather, battery-powered locomotives would have signi cant challenges,” Mulligan said. “And from the perspective of Precision

TECH FOCUS – MECHANICAL

Scheduled Railroading, having batterypowered locomotives that need to charge for 14-plus hours and having to duplicate or even triplicate the number of locomotives we need does not t our model of optimizing assets.”

A er giving it some thought, Mulligan said he believed a hydrogen-powered locomotive was the answer. While hydrogen is powering some transit vehicles and small switching locomotives (BNSF had commissioned a hydrogenpowered switcher a decade ago), no one had ever applied the technology to a main line locomotive. Mulligan brought the idea to the railroad’s top executives, and Creel said they could try to build one.

Starting with a 35-year-old SD40-2F, Mulligan and his team removed the diesel engine, alternator, cooling system and just about anything else on the frame from the rear of the cab back. Fuel cells were then installed where the diesel engine was once located. e area that was the fuel tank was replaced with batteries used to capture energy from regenerative braking when going downhill, especially in mountainous territory. Mulligan said the batteries also help balance the amount of power that is going to the traction motors; sometimes the traction motors are being powered entirely by the fuel cells, sometimes by the batteries and sometimes it’s a blend of the two. at mix is determined by an onboard power manager. From the perspective of the locomotive operator though, there’s little di erence between the hydrogen locomotive and the diesel-electric.

“We want to make the experience for the locomotive engineer to be as seamless as possible because we don’t want to have to retrain people on these locomotives,” Mulligan said.

In late 2021, the rst hydrogen unit, locomotive 1001, moved under its own power for the rst time. Less than a year later, it entered revenue service in the Calgary area. Since then, two additional hydrogen locomotives have been built: a four-axle switcher built from a GP38-2 and a six-axle AC high-horsepower unit built from an AC4400CW.

Most hydrogen comes from natural gas production (usually called gray hydrogen), but it can also come from clean sources (green hydrogen), including electrolyzers that separate hydrogen from water by using electricity. Early during the hydrogen locomotive program, CPKC partnered with ATCO EnPower, a division of Canadian Utilities Ltd., for construction of two hydrogen production and refueling facilities, one each in Calgary

and Edmonton. ATCO EnPower provided engineering, procurement and construction services and has signed an agreement to operate these facilities. Each includes a 1-megawatt (MW) electrolyzer, compression, storage and dispensing systems for locomotive refueling. While the electrolyzer in Edmonton uses o -the-grid power (and therefore isn’t “clean”), the one in Calgary is powered by a 5-MW solar farm on the CPKC campus, meaning freight operations there are being supported by green energy. Mulligan said they hope to eventually have all the hydrogen locomotives supported with green energy, but until the railroad proves there is a demand it will continue to use hydrogen from a mix of sources.

“Oil and gas producers who can produce low-carbon hydrogen are only going to do it at a rate that supports demand,” Mulligan said. “It’s a lot like the movie Field of Dreams: If you don’t build the baseball eld, the players are not going to come. At CPKC, we were cognizant of that, so we knew we had to show that the locomotive could work, and that it was rugged and reliable. So, it doesn’t matter for now if we’re using gray, green or blue hydrogen. We’re just showing that it is possible.”

Besides hydrogen fueling facilities in Edmonton and Calgary, the railroad is also building ones in Lethbridge, Alta., and Golden, B.C. e railroad has worked with a vendor to develop a mobile refueler with liquid hydrogen that can evaporite, compress and dispense hydrogen gas into the locomotives. at allows the hydrogen locomotives to essentially be fueled like any other locomotive in the CPKC eet. e railroad is also establishing on-site storage.

e new fueling facility at Golden will help support the railroad’s rst main line deployment of the new locomotives. In 2023, CPKC and Teck Coal (now Glencore’s Elk Valley Resources) announced a collaboration to use the hydrogen locomotives on metallurgical coal trains from mines near Sparwood, B.C., to ports on the West Coast. In September 2024, CPKC used hydrogen locomotive 1200 in concert with traditional diesel-electric locomotives to lead a coal train from Sparwood to Golden, before returning with empties. e 1200 is the railroad’s largest and most powerful hydrogen locomotive, featuring 12 fuel cells and a liquid-cooled AC traction system (vs. the normal air-cooled systems on other locomotives) developed by CPKC and its contractors. e hydrogen fueling system,

TECH FOCUS – MECHANICAL

housed in a tender developed by HGmotive™, allows for additional space on the locomotive for fuel cells, power electronics and cooling system components.

Mulligan said the original plan for the initial test between Sparwood and Golden was to have locomotive 1200 be used as supplemental power on the run. But an issue with one of the diesel locomotives on the consist (coal trains out of Sparwood usually operate with Distributed Power—one head end locomotive, one in the middle and a third on the rear) meant that 1200 was running the entire time. A follow-up test a few weeks later was equally successful, and so far the locomotive has not su ered any in-service failures.

e 1200, matched with its fuel tender, can make one round trip from the mines to Golden and back (about 450 miles) without refueling.

Beginning in January, CPKC plans to make 32 test runs on coal trains out of Sparwood, initially to Golden but eventually all the way to the West Coast. Mulligan said the railroad has decided to conduct the tests in stages for

understand how the hydrogen locomotives will operate in the tunnels west of Golden, most notably the 9.1-mile-long Mount Macdonald Tunnel on Rogers Pass. e railroad will also have to coordinate with CN in the ompson and Fraser River canyons where the two Class I’s directionally operate (“co-production”) on each other’s tracks. Mulligan said the hope is to eventually have a coal train powered entirely with hydrogen locomotives by the end of 2027.

e next high-horsepower unit is anticipated to be completed sometime in 2025.

e railroad is also looking at deploying additional hydrogen units in Edmonton, Calgary and Lethbridge. Presently, locomotives 1001 and 1002 operate twice a week out of CPKC’s Ogden Yard to serve local industries. Mulligan said the limited service is primarily due to a lack of trained manpower to maintain them (presently the locomotives are cared for by the railroad’s technology team). However, the railroad hopes to hand o maintenance of the locomotives to the mechanical department sometime in 2025. Before that can happen, mechanical

the locomotives and how to work safely around them, or more speci cally, how to work safely around hydrogen and batteries.

High concentrations of hydrogen can ignite. Because of that, the locomotives are heavily ventilated to allow for hydrogen to escape. ey’re also out tted with gas detectors and infrared cameras to detect leaks. If a leak is detected, pressure valves will close, and the ow of hydrogen will be cut o .

While a hydrogen ignition would be quick, a battery re (caused by something called thermal runaway) could act much more like a traditional diesel re and spread throughout a locomotive. To prevent that, the locomotive’s batteries are sitting in half-inch reinforced steel battery packs meant to contain any re. e battery packs (located where the fuel tank would be located on a traditional locomotive) have also been reinforced to handle sideswipes and vehicle collisions.

Once mechanical crews are more familiar with the hydrogen locomotives, the hope is to put more in regular service. One of the rst places will be Lethbridge, which predominantly

uses GMD SD40-2s in local service. Mulligan said CPKC plans to assign two six-axle DC road switchers to Lethbridge sometime in 2025 (the railroad plans on building at least seven new hydrogen units next year).

By the end of next year, CPKC also hopes to have four fueling stations fully operating and able to support 80 locomotives. Eventually, the hope is to have the hydrogen locomotives operate outside of western Canada, including in the U.S. A key part of that expansion will be a partnership with CSX, which has committed to building 20 hydrogen locomotives (10 for CPKC and 10 for CSX) by 2026 at its Huntington, W.Va., locomotive shops. Presently, a fouraxle hydrogen unit (built from a GP38) is being used as a shop switcher.

“ is technology is still new, and we’re still testing it, as is our partner CPKC, to determine how reliable it is and how it compares to our current diesel locomotives,” said CSX spokesperson Austin Staton. “A lot will be determined by how the hydrogen hubs get developed (in) the U.S. as availability of the fuel is crucial for us.”

Mulligan said as testing continues in the mountains of British Columbia, CPKC is proving that hydrogen could be the fuel of the future within the railroad industry. “We’re not in the rendering phase,” he noted. “ ese are

locomotives that people can look at, see, touch, feel and ride in. ey have switched freight, they have been on the main line, and they are in revenue service. We want to demonstrate to the industry that this is possible.”

HGmotive™ designed and built the tender that houses hydrogen fuel.

A FRESH LOOK AT FULL-SCALE RAIL TESTING

RAIL DYNAMICS LABORATORY

he Rail Dynamics Laboratory (RDL) at the Transportation Technology Center (TTC) has recently undergone signi cant transformation. As a full-scale testing laboratory for rail vehicles and other heavy equipment, the RDL plays a unique role in rail research and safety. Originally built in 1972, it was one of the rst labs at the TTC. Today, the RDL’s modernization has made it cleaner, more e cient, and ready to support the latest demands in rail technology.

REVAMPING THE RDL:

A MODERN APPROACH

Transforming the RDL involved extensive efforts to elevate its functionality and organization. Previously, the

lab bore the marks of decades of rigorous testing, with oil-stained floors and grime. Recently, the TTC team took on the project of modernizing the space to create a clean, well-organized environment, enhancing both usability and accessibility. Additional RDL modernization efforts included refreshing power and control electronics. The revitalized RDL now matches the high standards of TTC’s testing capabilities, showcasing an upgraded space ready to meet the rigorous demands of modern rail testing.

UNPACKING THE TESTING SYSTEMS

The RDL houses several specialized testing rigs, each offering crucial functions in vehicle safety and component durability testing: the Squeeze Test

Fixture (STF) , Simuloader (SMU), Vibration Test Unit (VTU) and MiniShaker Unit (MSU).

e Squeeze Test Fixture (STF) supports compression testing with an impressive load capacity of up to 2,000 kips (8.9 MN). Designed for whole-vehicle testing, it evaluates crush compliance, structural stress, and impact resilience. Equipped with four longitudinal actuators, the xture allows for both displacement and force control, providing the exibility needed for precise testing. e STF used to be operated in a semi-automated fashion that required manual intervention. is previous mode of operation worked well for simple test, that does not require complex force-displacement scenarios. e new STF renovation involves a new hydraulics and controller

TTC Operated by ENSCO

renovation e orts include new latest generation pumps and an upgrade to its state-ofthe-art main controller. Additionally, a full set of new mechanical parts will be installed in gradual form to make sure that the machine will perform at the highest level for many years to come.

e Vibration Test Unit (VTU) provides critical data for ride quality and vibration testing ability to complete rail vehicles including their suspensions. It supports maximum loads of 50 kips (222 kN) longitudinally and 400 kips (1.8 MN) vertically, operating within a frequency range of 2 to 30 Hz. Essential for identifying exible vibration modes, the VTU allows the TTC team to assess how rail vehicles respond to real-world vibrations, ensuring a comfortable and secure passenger experience, and the integrity of the commodities being transported in the case of freight service.

a unique opportunity to experience the TTC’s expansive testing capabilities through grouped tour stops across the facility. Among these tour stops was the Rail Dynamics Laboratory (RDL), where guests explored the RDL’s sophisticated equipment and observed real-world applications of rail safety and performance testing.

that allows for the programming of complex loading scenarios without additional need for human intervention, adding reliability and safety to any test program.

With the capability to simulate decades of load environment within just a few months, the Simuloader (SMU) uses 11 hydraulic actuators to apply maximum loads of 750 kips (3.34 MN) longitudinally and 440 kips (1.96 MN) vertically. e SMU provides structural stress and de ection testing to railcar car bodies to evaluate long-term vehicle structural durability, helping assess service worthiness of new and reconditioned rolling stock. e SMU can simulate 50 years of operational stress, providing valuable insights into fatigue life and structural integrity within a condensed testing timeframe of 1-2 months. e SMU

e Mini-Shaker Unit (MSU) is tailored for truck (bogie) components and truck assembly performance assessment, providing detailed testing for vehicle stability. With a maximum applied load of 150 kips (667 kN), it assesses suspension sti ness and damping across multiple axes, ensuring that truck components perform optimally under diverse conditions. Another important use of the SMU is in conducting modal tests to determine both rigid and exible vibration modes of a car structure. Recent upgrades to the MSU include two 22.5-kip actuators to improve the accuracy of frequency determination during modal testing, along with a new set of pumps and a chiller. is addition (pumps and chiller) enables the MSU to operate as a fully independent machine; previously, the MSU and VTU shared hydraulic resources, making independent tests impossible. In addition to the MSU, the RDL also has air tables for determining friction coe cients between the car body and the trucks and/or span bolsters, as well as the turning moments at the same interfaces. Each air table is capable of handling 175,000 lbs.

2024 TTC CONFERENCE & TOUR HIGHLIGHTS

On Oct.22-23, TTC held its 2nd Annual TTC Conference & Tour, drawing industry professionals from around the country to Pueblo, Colo.. Day two of the event, held at the TTC, offered attendees

Inside the RDL, attendees were provided with hands-on insights into the lab’s core systems—the VTU, SMU and MSU—with dedicated monitors and posters detailing each machine’s function and purpose. ough a vehicle was installed in the SMU to showcase full-carbody testing, the highlight of the RDL tour was a live demonstration at the MSU led by TTC Director of Engineering Juan Carlos Valdes-Salazar. Using a hammer strike setup on a at car, ValdesSalazar engaged attendees in an interactive session where each strike generated a live strip chart, allowing participants to see the immediate impact of vibrations in realtime. is immersive experience brought the lab’s technology to life and demonstrated the TTC’s dedication to innovation, enabling attendees to engage directly with the RDL’s testing systems and to witness the rigorous evaluations that support rail safety advancements.

FUTURE OF THE RDL

As the TTC continues to evolve, the Rail Dynamics Laboratory remains a foundation of rail safety and innovation. By enhancing its facilities and capabilities, the TTC reaffirms its commitment to supporting the railway community with cutting-edge testing, evaluation, and research. Continued hands-on tour events are planned for the 2025 TTC Conference and Tour scheduled for Fall 2025. For more information and updates, visit ttc-conference.com.

Overview of the refreshed Simuloader (SMU) being showcased to a breakout tour group during the 2024 TTC Conference & Tour.

People

PATTY LONG

Railway Supply Institute

HIGH PROFILE: After a long career in the association management profession, Railway Supply Institute (RSI) President Patty Long will retire, effective March 31, 2025.

Long joined RSI as President in 2021 shortly after the association entered into a new management model as a client of Smithbucklin, based in Washington, D.C. Since then, Long and the Smithbucklin team have supported RSI in “expanding its staff resources, enhancing its focus on advocacy, and more effectively supporting a wide range of technical committees to deliver on its mission to proactively advance safety, innovation, technology and sustainability within the rail industry,” the association noted. “Under Long’s leadership, the RSI initiated a new Passenger Rail Working group creating a much-needed forum to address the unique challenges for rail suppliers in the transit and passenger space. As a testament to that leadership, she was appointed in 2023 as a member of the Surface Transportation Board’s (STB) newly formed Passenger Rail Advisory Committee (PRAC).”

“By all measures, RSI has thrived during Patty’s tenure as president,” said RSI Board of Directors Chair Jeff Lytle, President of CIT Rail. “RSI is positioned for great potential as a result of Patty’s leadership. While we are sorry to see her leave, we are enormously happy for her. We appreciate Patty’s dedication, leadership and commitment to RSI and look forward to working with her throughout the remainder of her time with us.”

Long’s career of service in association management spans more than 25 years. Before joining RSI, Long served as Interim CEO and Chief Operating Officer for the Plastics Industry Association (PLASTICS). Earlier in her career, Long worked as the Director of Communications with the National Asphalt Pavement Association (NAPA) and spent 18 years at the National Association of Manufacturers (NAM), rising to Vice President, Policy Research and Member Communications. She also taught ethics for more than a decade as an adjunct professor at Georgetown University’s School of Continuing Studies.

The RSI Board of Directors and Smithbucklin have launched a search for a permanent replacement upon Long’s retirement. During the upcoming transition, the association said it is “committed to sustaining RSI’s current momentum.”

WSPlast month appointed Angela Schwarz, Senior Vice President, to Transit and Rail Market Leader; and Inez Evans Benson, Senior Vice President, to Deputy Transit and Rail Market Leader. In her new role, Schwarz “is growing WSP’s presence in transit and rail markets ensuring client success with state and local transit agencies; building relationships with consultants, industry associations, railroads and contractors; and overseeing planning, design, program management and construction management assignments on major projects such as PTC for NJ Transit and CBTC for New York City Transit.” Schwarz joined WSP in 2021 as National Transit and Rail Systems Practice Leader and brings 30 years of experience as a certified project management professional. She earned recognition as a Railway Track & Structures 2024 Women in Railroad Engineering and Railway Age 2024 Women in Rail honoree. Benson joined WSP in January 2024. Along with her new role, she continues to serve as National Bus Practice Leader. She is a well-known industry advocate, serving as Treasurer for WTS (Women’s Transportation Seminar), as an American Public Transportation Foundation board member, and as Vice Chair of the American Public Transportation Association (APTA) Leadership program.

A. Stucki Company last month appointed Michelle Baker as Chief Transformation Officer, reporting directly to CEO Ron Port. She will be responsible for strategy development and execution and will oversee Stucki’s program management office. Baker joins Stucki with more than 30 years of leadership experience, including 25 years “spearheading comprehensive corporate transformations,” the company said. She was most recently Vice President of Transformation for Aventiv Technologies, a Dallas-based provider of technology service and products to the correctional facilities industry. Prior to that, she was Vice President of Transformation at SVP Worldwide, based in Nashville, the world’s largest consumer sewing machine company and owner of the Singer and Viking brands. Aventiv and SVP Worldwide are owned by Platinum Equity, a private investment firm based in Beverly Hills, Calif.

The Railway Educational Bureau BOOKS

Resources -

Railroads & Economic Regulation (An Insiders Account)

Railroads & Economic Regulation

traces the development, failures and successes of railroad economic regulation by an insider who was a White House appointed chief of staff at the Surface Transportation Board and a senior officer at the Association of American Railroads.

"Frank Wilner has written an exhaustive history of our nation's railroads and the complicated, intriguing and often confusing federal regulation and lawmaking." Nick Rahall

Member of Congress (West Virginia, 1977-2015)

Hard cover, 414 pages.

BKRER $69.00

General

Railroader: The Unfiltered Genius and Controversy of Four-Time CEO Hunter Harrison • BKHUNTER • $27.99*

Diesel-Electric Locmotives • by Walter Simpson • BKDIESEL • $50.00

Amtrak, America's Railroad: Transportation's Orphan and Its Struggle for Survival • BKAMARR • $40.00*

Train Wreck: The Forensics of Rail Disasters • Soft Cover • BKTW • $24.95*

American Steam Locomotives, Design and Development, 1880-1960 • BKASL • $40.00*

All About Railroading - Second Edition • BKAARR • $35.95

Riding the Rails - Inside the Business of America's Railroads • BKRAILS • $45.00

Amtrak: Past, Present, Future • by Frank N. Wilner • BKAMTRAK • 39.95 *

Operations

Managing Railroad Transportation • BKMRT • 39.95*

Railway Operations and Control - Third Edition • BKROC • $39.95*

Railroad Operations and Railway Signaling • BKRORS • $28.00

Rules & Regulations Governing Railroad Signal and Train Control Systems • BKSTC

• $22.95

How Diesel & Electric Locomotives Work

Managing Major Railway Projects explains the analytical principles of Project Management as applied to executing large programs and major projects on active railways and rail transit systems. Topics include program set-up, Work Breakdown Structures (by Systems), Phasing and its relationship to maintenance of rail operations (and maintenance), Project Status including Earned Value Analysis and forecasting, risk management, System Safety (including FRA and FTA approaches), and Systems Integration/Systems Assurance.

The book is written and recommended for railway operating officials, as well as for Engineering Officers, and PM/CM professionals. Full color text pages.

BKMMRP $89.95 hard cover

BKMMRPP $79.95 paperback

Freight Car

The Double Stack Container Car Manual • BKDOUBLE • $21.95

Guide to Freight Car Air Brakes • BKFCAB • $74.50

Doorway to Safety With Boxcar Doors • BKBD • $28.95

Freight Cars: Lettering and Marking • BKK2CBK • $28.95

Guide to Freight Car Trucks • BKFCT • $98.95

Locomotive

Guide to Locomotive Mechanical Maintenance - SD & GP Locomotives • BKGLMM • $41.95

Guide Locomotive Electrical Maintenances • BKGLEM • $51.95

Fuel Saving Techniques for Railroads - The Railroader's Guide to Fuel Conservation • BKFUEL2 • $34.95

Guide to North American Diesel Locomotives • BKGNADL • $27.99*

The Only Game In Town: The LOCOTROL Story • BKGAME • $69.99*

Reference and Dictionaries

Dictionary of Railway Track Terms • BKRTT • $38.00

The Carman’s Dictionary • BKCD • $17.50

Track

Basic Principles of Track Maintenance • BKTMB • $150.00

Fundamentals of Railway Track Engineering

• BKFRTE • $150.00

The Track Data Handbook • BKTDH • $53.50*

Transit

Development and Operation of New York's IRT and BMT • by Al Fazio • BKNYIRT • $65.95

Urban Transit: Operations, Planning, & Economics • by Vukan R. Vuchic • BKUTOPE • $155.00*

Add the following shipping and handling if your merchandise subtotal is:

RAIL GROUP NEWS

45G: A Success Story Needing a New Chapter

The election is over, and the results are in. I went to bed in the early morning hours of Nov. 6 and enjoyed a remarkable dream. In his victory speech, the President-elect promoted his tax cut proposals and called out the short line tax credit as a poster child for the kind of tax policy that is good for small business and good for America. Every House and Senate co-sponsor of the 2020 BRACE Act that made 45G permanent was reelected, and scores of those Members had highlighted their support for the credit in their campaign literature. And in an apparently overlooked footnote in the Project 2025 document, short line freight railroads were listed as one of the most important drivers of U.S. economic growth, and incoming White House Chief of Staff Susie Wiles said the next Secretary of Transportation should take that message to heart Alas, I woke up to discover none of that was true. The truth is that short lines have their work cut out for them, particularly regarding the 45G Short Line Rehabilitation Tax Credit.

First enacted in 2004, 45G provides a credit of 40 cents for every dollar a short line invests in track and bridge improvement, up to a credit cap of $3,500 per mile. The credit worked exactly as intended by allowing an industry that operates nearly 30% of the national freight network to bring back to life previously under-maintained low density branch lines otherwise headed for abandonment.

Modernized track has allowed for carload growth on short lines and growth for the freight rail industry, as one in five cars begins or ends its journey on a short line railroad, interchanging with Class I railroads to access U.S. and overseas markets. Infrastructure investment also mitigates the primary reason for derailments on short lines—worn out track—thus improving safety.

A success story to be sure, but a story that needs a new chapter. Short lines are one of the most capital-intensive industries in the county and there remains

a backlog of more than $12 billion of needed improvements. The tax credit is a powerful tool in addressing that backlog, but inflation and restrictions on eligible track are eroding its potency. The costs to maintain and upgrade railroad track are significantly higher today than 20 years ago and $3,500 doesn’t buy what it used to. Additionally, short line track created since 2015 is ineligible for the credit.

The solution is straightforward and is embodied in legislation that will be introduced in the next Congress by Representatives Mike Kelly (R-Pa.) and Mike Thompson (D-Calif.) in the House, and Senators Mike Crapo (R-Idaho) and Ron Wyden (D-Ore.) in the Senate. The legislation would increase the credit cap to $6,100 per mile, index the cap to inflation, and allow eligibility for all short line track in existence as of Jan. 1, 2024.

After its 2004 enactment, 45G was extended six times and finally made permanent in 2020. Each time the legislation secured a huge bipartisan majority of House and Senate co-sponsors, which was a necessity in giving this legislation the visibility and momentum needed to break through the complex and often arbitrary politics of legislative sausage making. Co-sponsors were earned one at time by an aggressive and time-consuming short line effort to educate Members of Congress on the importance of short line railroads for shippers, jobs, and economic growth, particularly in rural and small-town America.

In 2020, the legislation to make 45G permanent garnered 364 House and Senate co-sponsors. We believe something similar is necessary to get the job done again. But only 175 of those co-sponsors will still be in office when the new Congress convenes in January. That means we will need to educate and recruit nearly 200 Members of Congress who have limited, if any, knowledge about short lines and who will know nothing about the working of the credit and its benefit. Complicating that task even further, time

is not on our side. Enacting the new Administration’s tax proposals will be the priority of the new Republican Congress, which will endeavor to complete by mid-year through a budget reconciliation bill. That legislation will be the only vehicle available for tax provisions, and we will be competing with hundreds of other provisions seeking inclusion in that vehicle.

Our lead Congressional sponsors have already begun setting the stage for this effort with the introduction of legislation this fall as the 118th Congress was coming to an end. The legislation will have to be reintroduced when the 119th Congress begins in January, but the current bill gives us the opportunity to begin organizing and executing our co-sponsor campaign now so we can hit the ground running in January.

Short line owners and executives can help by introducing themselves now to new elected officials, and touch base with those returning about signing on to the legislation. The time to build a bridge is before the water begins rising.

As in the past, our best opportunity to recruit co-sponsors is through in-person connections, in home districts or in D.C. We need these to happen early and often. We will provide a key opportunity at our 2025 Railroad Day on the Hill event, scheduled for May 7, but don’t wait until then to act!

When that date comes though, given the challenges we face on this legislation as well as on the important issues of CRISI funding, truck size and weights, and rail safety, we need every short line in the country to send a representative so that my electionnight dream does not turn into a postelection nightmare.

Mechanical Department Regulations

215 Freight Car Safety Standards Updated 12-28-23.

216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment Updated 12-28-23.

217 Railroad Operating Rules Updated 12-28-23.

218 Railroad Operating Practices - Blue Flag Rule Updated 6-10-24.

223 Safety Glazing Standards Updated 12-28-23.

224 Reflectorization of RailFreight Rolling Stock Updated 12-28-23.

225 Railroad Accidents/Incidents Updated 10-31-24

229 Locomotive Safety Standards Updated 12-28-23.

231 Safety Appliance Standards Updated 12-28-23.

232 Brake System Safety Standards Updated 12-11-20.

BKMFR Mech. Dept. Regs. $37.50 Order 25 or more and pay only $33.75 each Now Includes Part 224

221 Rear End Marking Device-passenger, commuter/freight trains Updated 12-28-23.

FRA News:

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 12-28-23.

BKTSSAF Track Safety Standards $12.95

Order 50 or more and pay only $11.65 each

Part 214: Railroad Workplace Safety

The FRA’s Railroad Workplace Safety standards address roadway workers and their work environments. Subparts A-General, B-Bridge Worker Safety Standards, C-Roadway Worker Protection, D-On-Track Roadway Maintenance, and Defect Codes for Part 214. Spiral bound. Updated 12-28-23

BKWRK Railroad Workplace Safety $12.95

Order 50 or more and pay only $11.65 each

Bridge Safety Standards

FRA Part 237 establishes Federal safety requirements for railroad bridges. This rule requires track owners to implement bridge management programs, which include annual inspections of railroad bridges if the weather or other conditions warrant such inspections, and to audit the programs. Part 237 also requires track owners to know the safe load capacity of bridges. Updated 12-28-23

BKBRIDGE Bridge Safety Standards $10.95

Order 50 or more and pay only $9.85 each

Part 242: Conductor Certification

The Conductor Certification rule (49 CFR 242) outlines details for implementing a Conductor Certification Program. The FRA implemented this rule in an effort to ensure that only those persons who meet minimum Federal safety standards serve as conductors. Softcover. Spiral bound. Updated 12-28-23

BKCONDC Conductor Certification $15.00

Order 50 or more and pay only $13.50 each

WE KEEP YOU ROLLING

Railcar repair can stop you in your tracks. Progress Rail keeps you rolling by providing services ranging from inspection and routine maintenance to complete rebuilding and repair.

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