Railway Age June 2018

June 2018

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

Transit Where The Action Is

Guide to equipment leasing

The Market Emerges From The Doldrums

Tech Focus: Big Data

It Works With Rolling Stock, Too railwayage.com

August 2017 // Railway Age 1

HIGH CAPACITY I PRECISION I RELIABILITY

Tamping Technology The Plasser heavy-duty, high speed, continuous action switch and production track tamping machine 09-2X DYNACAT is capable of tamping one or two ties at a time with an integrated dynamic track stabilizer. Tamping and lifting units are mounted on a separate satellite frame attached to the main frame. While the satellite indexes two ties during the actual work process (lifting, lining, cross-leveling, and tamping), the machine’s main frame with stabilizer system moves smoothly and continuously. Equipped with AGGS, ATLAS, PLC CAN bus control system, and it‘s unique design and construction allows the 09-2X DYNACAT to achieve production rates of up to 4,200 ft.

www.plasseramerican.com ”Plasser & Theurer“, ”Plasser“ and ”P&T“ are internationally registered trademarks

AILWAY GE

JUNE 2018

43

FEATURES

16

Passenger Rail Guide

27

Leasing Guide

38

M/W Focus: Rail

43

Where the action is

Equipment market overview

Grinding and milling

Tech Focus: Big Data It works for rolling stock, too

DEPARTMENTS 4 6 7 48 48 48 49 50 50 51

Industry Indicators Industry Outlook Market People 100 Years Ago Meetings

NEWS/COLUMNS 2 8 14 52

From the Editor Update Watching Washington Short Line Perspective

Products Professional Directory Classified Advertising Index

On the Cover: Charlotte Area Transit System LYNX Blue Line.

Photo: HNTB

Railway Age, USPS 449-130, is published monthly by the Simmons-Boardman Publishing Corporation, 55 Broad St., 26th Fl., New York, NY 10004. Tel. (212) 620-7200; FAX (212) 633-1863. Vol. 219, No. 6. Subscriptions: Railway Age is sent without obligation to professionals working in the railroad industry in the United States, Canada, and Mexico. However, the publisher reserves the right to limit the number of copies. Subscriptions should be requested on company letterhead. Subscription pricing to others for Print and/or Digital versions: $100.00 per year/$151.00 for two years in the U.S., Canada, and Mexico; $139.00 per year/$197.00 for two years, foreign. Single Copies: $36.00 per copy in the U.S., Canada, and Mexico/$128.00 foreign All subscriptions payable in advance. COPYRIGHT© 2016 Simmons-Boardman Publishing Corporation. All rights reserved. Contents may not be reproduced without permission. For reprint information contact PARS International Corp., 102 W. 38th Street, 6th floor, New York, N.Y. 10018, Tel.: 212-221-9595; Fax: 212-2219195. Periodicals postage paid at New York, NY, and additional mailing offices. Canada Post Cust.#7204564; Agreement #41094515. Bleuchip Int’l, PO Box 25542, London, ON N6C 6B2. Address all subscriptions, change of address forms and correspondence concerning subscriptions to Subscription Dept., Railway Age, P.O. Box 3135 Northbrook, IL. 600653135, Or call toll free (800) 895-4389, or (402) 346-4740. Printed at Cummings Printing, Hooksett, N.H. ISSN 0033-8826 (print); 2161-511X (digital).

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June 2018 // Railway Age 1

FROM THE EDITOR

AILWAY GE Subscriptions: 800-895-4389

Thank You, Julia Rose

B

elieve it or not, after almost 26 years at Railway Age, during which time I’ve logged probably tends of thousands of passenger rail miles, I finally rode a VIA Rail Canada train.

It wasn’t the vaunted transcontinental Canadian (which is on my bucket list). It was one of VIA’s numerous corridor trains that ply the relatively fast route linking Windsor, Toronto, Ottawa and Montreal.

My wife and I had planned a trip from Toronto to Ottawa, a city I’d never visited, for our anniversary. I was to fly to Toronto City Airport from Newark International the evening before on Porter Airlines to meet her, and we’d leave for Ottawa the next morning on VIA. Or so we thought.

As airlines go, Porter is pretty good.

EWR to YTZ is about one hour in the air, and you arrive in downtown Toronto, where you have easy access to GO regional trains, TTC subways and streetcars, rental cars, Uber, taxis—whatever you need.

Problem is, EWR has become one of the worst airports out of which to fly. Lately, it has been plagued with weather delays. (Yes folks, climate change is real.)

Long story short: A storm rolls in. High winds. All flights cancelled. I’m rebooked on the first flight out the next day. It’s OK, though. My wife will meet me at Toronto Union Station, with about an hour to spare before train time. I drive back home. Drive

back to EWR early the next morning.

Surprise! “Ground stop” at EWR. Flight delayed by at least an hour. We will most likely miss our VIA train. What to do?

Should we pay to change our tickets? It’s not cheap.

Something told me, no, maybe VIA will understand and rebook us as a courtesy. So my wife went to the VIA ticket counter at Toronto Union Station and explained our predicament to Julia Rose, who turned out to be a very caring and friendly VIA agent.

Julia told her, “No worries. If you miss your train, I’ll book you on the next one out, no charge.” Service with a smile—solving a problem that VIA had absolutely nothing to do with.

Nice! Thank you Julia Rose. You took a frustrating situation and made it go away.

Would Amtrak do this? Probably not, the way things have been going there lately (don’t get me started on food service and dining cars).

Our VIA train was clean and comfortable, the onboard staff friendly, attentive and professional. Even the European-style food cart that came to our seats was pretty good. We arrived in Ottawa pretty much on time, on a corridor shared with CN and Canadian Pacific freight trains.

So, thank you VIA Rail Canada and Julia Rose. Keep up the good work, eh?

WILLIAM C. VANTUONO Editor-in-Chief

Railway Age, descended from the American Rail-Road Journal (1832) and the Western Railroad Gazette (1856) and published under its present name since 1876, is indexed by the Business Periodicals Index and the Engineering Index Service. Name registered in U.S. Patent Office and Trade Mark Office in Canada. Now indexed in ABI/Inform.

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55 Broad Street, 26th Fl. New York, NY 10004 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 STUART CHIRLS Senior Editor schirls@sbpub.com Contributing Editors: Roy H. Blanchard, Jim Blaze, Alfred E. Fazio, Bruce E. Kelly, Ron Lindsey, Ryan McWilliams, David Nahass, Jason H. Seidl, David Thomas, John Thompson, Frank N. Wilner Art Director: Nicole Cassano Graphic Designer: Aleza Leinwand Corporate Production Director: Mary Conyers Digital Ad Operations Associate: Kevin Fuhrmann Production Director: Eduardo Castaner Marketing Director: Erica Hayes Conference Director: Michelle Zolkos Circulation Director: Maureen Cooney Western Offices 20 South Clark Street, Suite 1910, Chicago, IL 60603 312-683-0130; Fax: 312-683-0131 Engineering Editor: Mischa Wanek-Libman mischa@sbpub.com Assistant Editor: Kyra Senese ksenese@sbpub.com International Offices 46 Killigrew Street, Falmouth, Cornwall TR11 3PP, United Kingdom Telephone: 011-44-1326-313945 Fax: 011-44-1326-211576 International Editors: David Briginshaw, db@railjournal.co.uk Keith Barrow, kb@railjournal.co.uk Kevin Smith, ks@railjournal.co.uk Dan Templeton, dt@railjournal.co.uk Customer Service: 800-895-4389 Reprints: PARS International Corp.

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Industry Indicators Steady Carload Growth and “The New Normal” If we learned anything from Class I volume growth in April, it’s this: The biggest railroads are settling into a new order where former carload stalwarts crude and coal traffic are concerned, and are looking for better growth in commodities such as grain, motor vehicles and sand. While some observers question the railroads’ reticence to be more proactive about capturing intermodal volumes (remember BNSF’s Maersk locomotive?), maybe it’s because tight trucking capacity and soaring rates are doing it for them, as shippers bum-rush the rails in a bid to secure their supply chains and get goods to market.

Railroad employment, Class I linehaul carriers, APRIL 2018 (% change from APRIL 2017)

Total employees: 145,959 % change from APRIL 2017: -2.11%

Transportation (train and engine) 60,891 (2.02%)

TRAFFIC ORIGINATED CARLOADS

MAJOR U.S. RAILROADS

by Commodity

APRIL ’18

APRIL’17

% CHANGE

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

97,870 3,098 36,927 24,950 130,864 39,806 316,832 3,816 14,440 22,055 23,186 17,888 38,990 16,548 71,297 106,436 16,860 30,605 13,741 24,817

92,565 3,461 35,279 24,133 126,283 39,269 309,495 4,467 13,748 21,472 22,746 17,902 37,157 15,612 67,769 97,970 19,373 30,531 14,797 22,977

5.7% -10.5% 4.7% 3.4% 3.6% 1.4% 2.4% -14.6% 5.0% 2.7% 1.9% -0.1% 4.9% 6.0% 5.2% 8.6% -13.0% 0.2% -7.1% 8.0%

1,051,026

1,017,006

3.3%

332,132

327,117

1.5%

1,383,158

1,344,123

2.9%

Total U.S. CarLoadS

Executives, Officials, and Staff Assistants 8,298 (-6.05%)

CANADIAN RAILROADS

Professional and Administrative 11,913 (-5.98%)

COMBINED U.S./CANADA RR

Maintenance-of-Way and Structures 32,644 (4.60%) Maintenance of Equipment and Stores 26,647 (-4.32%) Transportation (other than train & engine) 5,566 (-4.84%) Source: Surface Transportation Board

Class I staffing levels improve As far as headcount is concerned, the Class I’s may have achieved their reduction goals. While April’s employment data looks grim compared with the previous year, the railroads in the past several months increasingly are adding staff across their organizations, albeit at the pace of an extra-tonnage drag up the ruling grade. The exception is CSX, where the collapse of the coal business has led to a plan to sell up to 8,000 miles of track, and thousands more job cuts in the coming years.

4 Railway Age // June 2018

FOUR WEEKS ENDING APRIL 28, 2018

total carloads

Intermodal

FIVE WEEKS ENDING APRIL 28, 2018

MAJOR U.S. RAILROADS

by Commodity

APRIL ’18

APRIL’17

% CHANGE

99,792 999,208 1,099,000

80,769 948,601 1,029,370

23.6% 5.3% 6.8%

3,606 265,597 269,203

3,831 253,298 257,129

-5.9% 4.9% 4.7%

Trailers Containers

103,398 1,264,805

84,600 1,201,899

22.2% 5.2%

TOTAL COMBINED UNITS

1,368,203

1,286,499

6.4%

Trailers Containers TOTAL UNITS

CANADIAN RAILROADS Trailers Containers TOTAL UNITS

COMBINED U.S./CANADA RR

Source: Monthly Railroad Traffic, Association of American Railroads

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TOTAL U.S./CANADIAN CARLOADS, APRIL 2018 VS. APRIL 2017

1,383,158 APRIL 2018

AILWAY GE

1,344,123 APRIL 2017

Short Line And Regional Traffic Index CARLOADS

by Commodity

ORIGINATED APRIL ’18

ORIGINATED APRIL ’17

% CHANGE

46,429 23,217 30,752 11,260 27,331 6,375 10,062 3,031 18,474 9,021 1,994 2,236 18,356 38,150 10,559 82,498

42,216 24,159 25,273 10,729 26,208 6,186 9,307 2,832 16,439 9,531 2,162 1,830 15,916 50,360 9,422 78,685

4.8% -3.9 21.7% 4.9% 4.3% 3.1% 8.1% 7.0% 12.4% -5.4% -7.8% 22.2% 15.3% -24.2% 12.1% 4.8%

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

Copyright © 2018 All rights reserved.

average weekly U.S. Rail Carloads: all commodities (not seasonally adjusted) 280,000 270,000

2018

260,000

ARE YOU A RAILROAD OR SUPPLIER SEARCHING FOR JOB CANDIDATES?

250,000 2017

240,000

2016

230,000 220,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Data are average weekly originations for each month, are not seasonally adjusted, do not include intermodal, and do not include the U.S. operations of CN and CP. Source: AAR

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Visit http://bit.ly/railjobs To place a job posting, contact: Jeanine Acquart 212-620-7211 jacquart@sbpub.com

June 2018 // Railway Age 5 RA_JobBoard_1/3Vertical.indd 1

8/17/17 10:59 AM

Industry Outlook

Wabtec + GE Transportation: $10 Billion Deal is Forged The boards of General Electric and Wabtec on May 21 approved the merger of GE Transportation with Wabtec in a deal worth $11.1 billion. The merger will make Wabtec a Fortune 500 company and a major player in the railway equipment and services market, with operations in more than 50 countries across the globe.

The transaction is valued at $10 billion, following a $1.1 billion net tax benefit accruing to the merged company. Synergies of around $250 million are also anticipated by 2022. The merged company will have revenues of $8 billion with more than 23,000 locomotives in its global installed base and components on virtually all North American locomotives and freight cars.

Under the terms of the transaction, GE will receive $2.9 billion in cash for a 9.9% stake in the new company, while its shareholders will receive a 40.2% stake. Wabtec shareholders will hold the remaining 49.9% stake. Wabtec says it has obtained full commitments for a $2.9 billion bridge facility and expects to put in place permanent debt financing prior to closing the deal.

Wabtec Chairman Albert Neupaver has been named Executive Chairman of the 6 Railway Age // June 2018

merged company, and Raymond Betler will be President and CEO, retaining his current Wabtec role.

Wabtec’s corporate headquarters will remain in Wilmerding, Pa. GE Transportation President Rafael Santana will become President and CEO of Wabtec’s freight division, headquartered in Chicago, and Stéphane Rambaud-Measson will become President and CEO of Wabtec’s Transit Division, based in Paris.

GE Transportation’s EBITDA is expected to grow from about $750 million this year to between $900 million and $1 billion in 2019.

The company’s order backlog of about $18 billion includes approximately 1,800 new locomotives and another 1,000 to be rebuilt and upgraded.

GE Transportation has received orders worth $3.6 billion in the past two quarters consisting of a mix of new locomotives and rebuilds/repowers of older GE motive power.

Wabtec says it achieved a strong first quarter and forecasts “robust growth for the year with record backlog.”

Final closure of the deal is expected in early 2019, subject to regulatory and closure conditions.

The price of improving rail access to U.S. ports is steep, but the price of not improving access may be steeper.

A recent survey by the American Association of Port Authorities (AAPA) found members identified a need in excess of $20 billion during the next decade for multimodal port and rail access, but cited “funding/financing options” as the biggest hurdle.

AAPA says its State of Freight III – Rail Access and Port Multimodal Funding Needs Report delves “into the issue of freight movement and port multimodal needs, with an emphasis on rail access, which requires greater focus. Our national multimodal supply chain begins with ports. As a hub for rail, barge, trucks and perhaps someday drones, our nation’s ports are the best illustration on how a multimodal freight network can and must work if we expect to address increasing freight volumes while delivering on the demands of a growing population.”

All AAPA stateside U.S. corporate members responded, identifying more than $20 billion in projected multimodal port and rail access needs in the next decade. One-third of ports identified pressing rail project needs of more than $50 million. The report says that within the next 10 years, 77% of ports are planning on-dock, near-dock or rail access projects.

The report also found: • 67% of ports said funding and financing options are the biggest initial obstacles in getting projects started.

• 37% said that problematic at-grade crossings or height restricted overpasses and tunnels within or near ports currently constrain capacity.

• 36% said land acquisition is also a big problem in developing and planning port rail access projects.

Regarding additional throughput capacity that could be added with improved rail access, 43% said they would see an increase of more than 25%, while 32% said a 15% to 20% increase would be realized. railwayage.com

William C. Vantuono

$20B Needed for Port Access

Market First LIRR M-9 Cars Arrive from TTCI Testing MTA Long Island Rail Road has taken delivery of the first set of M-9 EMU (electric multiple-unit) married-pair commuter railcars from Kawasaki Rail Car USA, following testing at TTCI. Further testing is now under way at LIRR’s Hillside facility. Among numerous stress tests to be performed are repeated door opening/closing trials.

No timetable has been announced for road testing and certification. The exterior scheme is similar to the “New York State” scheme on some MTA New York City Transit B Division cars, utilizing blue and yellow striping on the control cab ends of the trainset’s married pairs.

WORLDWIDE

NORTH AMERICA

Mitsui Rail Capital Europe (MRCE) has awarded Siemens a contract to supply 25 additional Vectron locomotives, taking its Vectron fleet to 136 units. Siemens will deliver 10 6.4MW multisystem locomotives by the end of this year. A further 10 6.4MW multisystem locomotives for the Rhine-Alpine corridor and five 5.2MW 3kV dc units for use in Italy will be delivered during 2019.

CANADA: The federal government has committed C$1.53 billion ($1.19 billion) in funding for Calgary’s Green Line Light Rail Project, the largest-ever infrastructure investment by Ottawa in the province of Alberta.

The project will be 28.58 miles long and include 28 stations at full build-out. Stage 1 calls for the construction of 12.4 miles of track, 14 stations, a vehicle maintenance and storage facility, eight bridges, four tunnels, 70 low-floor light-rail vehicles and three parkand-ride facilities. Construction is expected to begin in spring 2020 and be completed by late 2026, at a cost of C$4.65 billion from federal, provincial and municipal funding sources.

LOS ANGELES: The California Transportation Commission approved $703.6 million in SB-1 tax revenue funding for the Los Angeles County Metropolitan Transportation Authority (Metro) as part of its statewide transportation funding allocations.

The California Transportation Agency (CalSTA) also recently announced its SB-1 award for funding Transit and Intercity Rail Capital Improvements, with more than $1 billion designated for Metro. The awards

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represent the largest allocation of SB-1 funds in California to date.

Massachusetts Bay Transportation Authority awarded a near-$7 million contract to Hardesty & Hanover, LLC to design a replacement for the century-old Boston & Maine drawbridge over the Saugus River.

Mosaic Transit Group has signed a contract worth C$2.5 billion ($1.9 billion) to design, build, finance and maintain the Finch West Light Rail Transit project in Toronto.

The 11-kilometer (6.8-mile) LRT will run in a semi-exclusive lane along Finch Avenue.

Mississippi Department of Environmental Quality has been awarded a $574,000 federal RESTORE grant to fund planning, surveying and permitting for a 4,300-foot rail connection serving the Port of Pascagoula in Jackson County.

California High-Speed Rail Authority: The Bakersfield, Calif., City Council approved the “Making Downtown Bakersfield” Station Area Vision Plan and Environmental Impact Report.

June 2018 // Railway Age 7

Update

Ed Hamberger

Looks to a Successor

A

ssociation of American Railroads President and Chief Executive Officer Edward R. Hamberger last month announced that he will be retiring in early 2019, following a transition period.

Hamberger, 68, is the longest-tenured head of the 84-year-old organization, with more than 20 years of service. He “has spent more than 40 years focusing on the policies that shape America’s transportation sector, improving infrastructure and enhancing the nation’s rail network,” AAR said. “He has led the industry through a dynamic political and technological period.”

Executive search firm Korn Ferry has been retained to lead the search for Hamberger’s successor.

“It has been a privilege to help one of America’s vital industries—freight rail— navigate through a period when the fundamentals of Washington, the economy and our industry have evolved,” Hamberger said. “From protecting the economic framework that revitalized America’s railroads to clearing the path to developing and deploying new safety technologies, I am extremely proud of the work we have done together over the past two decades, none of which would have 8 Railway Age // June 2018

been possible without the leadership of our members and the hard work of AAR’s dedicated staff. Railroads will continue to deliver America’s future, and I am confident that my successor will position this essential industry to meet the challenges of tomorrow. With safety and investments at all-time highs, AAR’s new leader will play a significant role in advancing a flourishing, transformational industry that drives the nation’s economy.”

AAR Board of Directors Chair and Norfolk Southern Chairman, President and CEO of Jim Squires added, “Ed Hamberger has been a forceful advocate for freight railroads and will leave behind a powerful legacy in Washington and in the industry. Ed helped expand and strengthen our industry’s voice on transportation, infrastructure and technology in Washington, and I look forward to the AAR continuing to be a powerful voice.”

Described as “one of the most effective transportation policy advocates in the United States,” Hamberger was called to testify before Congress more than 85 times as the head of the AAR. He has “successfully worked to maintain a balanced regulatory environment that enables continued record private investment in

Railway Age Editor-in-Chief William C. Vantuono (right), with Ed Hamberger, at AAR headquarters, May 9.

rail infrastructure.”

Prior to joining AAR, Hamberger worked for more than 20 years in executive and legislative capacities, including as the Assistant Secretary of Governmental Affairs at the U.S. Department of Transportation and as the General Counsel at the National Transportation Policy Study Commission.

“As the chief of the AAR, Ed has been the face of the freight rail industry in Washington, D.C. for more than 20 years,” said House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.). “Throughout his tenure, I

hamberger’s success stems from his inclusivity and mastery of facts.” railwayage.com

Update have collaborated closely with Ed, first as a Member, then as Chairman of the House T&I Committee’s Subcommittee on Railroads, Pipelines, and Hazardous Materials, and now as Chairman of the T&I Committee. Ed and I have worked across the years on a breadth of freight and passenger rail-related issues. And while we have not agreed on every policy matter, Ed has always interacted with Congress as a fair partner and a forceful advocate.

“Whether appearing before my Committee as an expert witness or meeting with lawmakers one on one, Ed has regularly demonstrated an unmatched command of the issues that impact the rail industry and, by extension, the myriad industries that rely on a vital and viable freight rail industry. Because of his knowledge, coupled with his personable style, he is that rare commodity in Washington: an expert that has earned the respect of members from both major political parties.”

“During Ed’s tenure, the industry and many of its suppliers have had significant growth and success,” said Chris Aadnesen, who recently retired as Executive Chairman of Georgetown Rail Equipment Co. “It’s no coincidence that Ed was at the helm of the industry’s main trade group during this period. The industry has succeeded in part because Ed has done such a superb job as the industry’s chief spokesperson and interlocutor with regulators and Congress. When issues have emerged that have threatened the viability and health of the industry, one certainty is that Ed would make the rounds in Washington and educate the leaders in government about the issues and their

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potential impact.

“Railroad suppliers have known for as long as Ed has been leading the AAR that their interests were being promoted by one of the most effective communicators in the nation’s capital. Just one example is Ed’s success in educating government leaders about the breadth of the high-tech nature of freight rail industry and its extensive innovation in the area of safety.

“Ed’s success stems from his inclusivity and mastery of the facts. He works tirelessly to build coalitions while mustering

the strongest data and most persuasive arguments to make the industry’s case.

Data and coalition building only partially explain his effectiveness. Whether on camera in a TV interview or testifying before a congressional committee, Ed’s personable and collegial style shines through. The industry relies on him for advice and counsel, as do lawmakers. That is a rarity and a measure of his abilities.

The July 2018 issue of Railway Age will feature a cover story on Ed Hamberger and his 20-year tenure at the AAR.

Ed Hamberger (right) with Federal Railroad Administrator Ron Batory and former FRA Administrator Jolene Molitoris at Batory’s Feb. 28 swearing-in ceremony.

June 2018 // Railway Age 9

Update

Railway Age 10 Under 40 Fast Tracker Kyle Mulligan showed his patented acoustic sensor at the AAR Rail Tech event in Washington.

10 Railway Age // June 2018

Technology class was in session for Congress last month, courtesy of Class I railroads.

The Association of American Railroads organized Rail Tech, an up close and personal demonstration designed to showcase the development and investment in innovation that maximizes safety and efficiency throughout the North American network.

Six of the seven Class I’s took part in the event in the historic foyer of the Rayburn Building, which houses offices of the House of Representatives. Throughout the day, elected officials and their staff viewed exhibits, engaged in hands-on demonstrations and chatted with technology experts from BNSF, Canadian Pacific, CN , CSX, Norfolk Southern and Union Pacific about the role of railroad technology in everything from track, bridge and car inspections to machine vision, predictive analysis, a hazmat app for first responders and a PTC-enabled locomotive simulator.

The AAR kicked off the day with a virtual reality introduction to freight railroading. Visitors donned VR goggles to get a drone’s-eye inspection of rail infrastructure, and a midair roll-by of a main line freight train.

Norfolk Southern showed how it uses Big Data and predictive analysis to measure track wear, employing ultrasound equipment to help detect shells and other types of hidden internal damage before they disrupt service. Collected data has enabled NS to create 150,000 models against which to measure rail conditions, and those statistical baselines help make maintenance more accurate and efficient, at a lower planned cost and without stopping trains, improving customer service. In fact, the eastern carrier currently is testing main line rail segments installed side-by-side from a half-dozen suppliers in Japan, Europe and the U.S. It tests for effects on curves characteristic of so-called “Eastern” rail, which wears differently from the long stretches of tangent track on western lines.

Those western regions also provide climatic challenges, and BNSF showed a drone that provides information during extreme weather.

The Fort Worth-based railroad also exhibited technology to uncover flaws in the track unseen by human inspectors.

The efficacy of high-tech inspections accounts for its popularity among the largest railroads, where capital costs to replace damaged track on existing lines run as high as $1 million per mile. Similarly, labor expense for a track inspection team runs into the tens of millions of dollars at Union Pacific, the largest Class I. For railcar inspection, the Omaha-based carrier displayed its machine vision system of thermal imaging and flash LIDAR cameras (LIDAR is a detection system that works on the principle of radar, but uses light from a laser). The system, currently in place at North Platte, Neb., Loveland, Iowa and Pine Bluff, Ark., uses a dozen cameras and 10 lasers all set at numerous angles to shoot a staggering 40,000 images per second as trains pass in real time. Algorithms parse the images, particularly around the trucks and wheels, where most damage and wear occurs. The system helps eliminate waste by making more accurate inspections of the entire car than humanly possible, while at the same time promoting safety.

Canadian Pacific showed off an acoustic sensor patented by railwayage.com

Stuart Chirls (two photos)

AAR Gives Congress a Technology Lesson

Update Railway Age 2018 Fast Tracker Kyle Mulligan to “listen to the bearings” of trucks. Using data collected by the sensor, Mulligan said CP is able to accurately forecast a 90-day time frame for potential bearing failure, a major breakthrough where a car’s active service has to be balanced with maintenance downtime.

Mulligan, who also is qualified as a locomotive engineer and other crew positions (a requirement he credits to the late Hunter Harrison), observed that while CP’s executive suite has a vision for technology implementation, “there must be a bridge between the Information Technology department and the data subject matter experts. There must be a targeted, hybrid approach.”

CN brought a scale model of a steel truss bridge to demonstrate how it uses strain gauges to measure how century-old bridges hold up under the weight of a train on its U.S. lines. The carrier also showed track geometry equipment mounted on hi-rail trucks, as well as technology that conducts automated inspections of joint bars.

BNSF also is using technology to find rail damage before it becomes an operational issue.

CSX hosted a display of AskRail, a mobile app to aid first-responders at derailments and other situations involving hazmat cars. Once logged in and verified by a Class I, emergency personnel can search an individual car or an entire train to determine the contents of a car, and access the technical Safety Data Sheets (SDS) issued by manufacturers communicating information on these hazards.

CSX also showed a locomotive cab simulator based on the General

Electric AC4400. The unit’s digital track routes are accurate depictions of actual lines, enabled with Positive Train Control. Attendees quickly found that PTC would shut down the locomotive if it detected an overspeed condition.

A cab simulator operated by CSX featured integral PTC control.

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June 2018 // Railway Age 11

Update Gold Line train leaving downtown Los Angeles.

LACMTA Awarded $1.8 Billion in State Grants Los Angeles-area transit and rail freight transportation projects last month got a generous public funding boost.

The California Transportation Commission (CTC) last month

approved $703.6 million in SB-1 funding for the Los Angeles County Metropolitan Transportation Authority (LACMTA) as part of its statewide transportation funding allocations. Additionally, the California Transportation Agency (CalSTA) announced its SB-1 award for funding Transit and Intercity Rail Capital Improvements, with more than $1 billion designated for LACMTA. With the award of $703.6 million from the CTC and the award of $1.088 billion from CalSTA, the state has made a commitment to fund more than $1.8 billion in projects for LACMTA. The SB-1 legislation is the state’s “gas tax” and vehicle fee transportation funding program approved by the Legislature in 2017 and signed into law by Gov. Jerry Brown.

The awards represent the largest allocation of SB-1 funds in California to date. LACMTA received approximately 26% of total funding available statewide, the Commission said, “underscoring the magnitude of needed transportation improvements for the congested L.A. region.”

The funding will go to LACMTA’s program of projects that include highway, transit and freight elements. The county’s annual transit ridership is four times that of any other county in the state, and LACMTA also has the highest annual passenger miles of any operator in California. L.A. County has seven of the state’s 10 most congested highway corridors, and its ports handle 86% of all containers coming in to California.

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12 Railway Age // June 2018

Celebrating

Years

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Update our investments in infrastructure today,” said Los Angeles Mayor and LACMTA Board Chair Eric Garcetti. “SB-1 is putting billions of dollars to work fixing our roads and creating more sustainable transportation options, giving Californians healthier air to breathe, less congestion and good-paying jobs that will stimulate economic growth across our state.”

LACMTA will combine SB-1 gas tax funds with its own locally generated transportation sales tax contributions to continue transforming L.A. County’s transportation system and delivering Measure M and R projects.

Measure R, approved by voters in 2008, proposed a half-cent sale tax increase in Los Angeles County for 30 years to pay for transportation projects and improvements.

In 2016 voters approved an additional permanent half-cent sales tax increase, known as Measure M, to bolster funding. A large majority of Los Angeles County voters approved Measure M to fund a major expansion of public transit. Measure M required two-thirds of voters to approve it, and handily achieved this goal, with almost 70% voting in favor.

By adding a countywide half-cent increase to the sales tax, which will increase to one cent when the existing Measure R tax expires in 2039, Measure M will bring in a projected $860 million annually for several decades. “This money will fund transportation projects that will dramatically transform the region, including a rail line to LAX, a subway under the Sepulveda Pass, and a Purple Line extension to Westwood,” noted a local media outlet. “Additionally, Measure M will pay for much-needed sidewalk improvements, pothole repairs, cycling infrastructure, bike share expansion, and a network of greenways. To envision how much of a change that Angelenos will see on their streets, up to 8% of Measure M’s funds will go toward walking and biking investments, compared to the 1% allocated to walking and biking in LA’s current transportation spending.”

“LACMTA is now leading a transportation revolution in Los Angeles County thanks to our locally funded Measure M and R programs,” said LACMTA CEO Phillip A. Washington. “Our programs depend on significant funding participation from both the state and federal governments. These SB-1 funds will help us leverage our local funding commitments to fully and quickly implement our region’s critically needed transportation improvements.”

LACMTA transportation projects announced for SB-1 funding in several program categories include: • Airport Metro Connector 96th Street Transit Station Project: $150 million.

• America’s Global Freight Gateway (Trade Corridor Enhancement Program), Southern California Rail Project: $128.6 million The CalSTA’s Transit and Intercity Rail Capital Improvements Program seeks to modernize transportation infrastructure, improve safety and grow rail ridership. The Transit Capital projects that were awarded multi-year funding includes the Transit and Intercity Rail Capital Program of $1.088 billion: • Gold Line Foothill Light Rail Extension to Montclair.

• East San Fernando Valley Transit Corridor.

• West Santa Ana Branch Light Rail Transit Corridor.

• Green Line Light Rail Extension to Torrance.

• Orange/Red Line to Gold Line BRT Transit Corridor.

• Vermont Transit Corridor. railwayage.com

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Contact Mary Jo Balve Global Trade Show Services, Inc. 33 Prince Place, Little Silver, NJ 07739 T +1 732 933 1118 mjbalve@globaltradeshow.com June 2018 // Railway Age 13

Watching Washington

Amtrak the Bully

I

n the sandbox of passenger railroading, Amtrak does not play well and can be a mean-spirited bully.

Amidst extravagant accusations of inhospitable dispatching by host freight railroads of its long-distance passenger trains, taxpayer subsidized Amtrak is aggressively manipulating its privileged position in contravention of a congressional intent to expand private-sector operation of passenger trains. Amtrak’s strong-arm tactics also serve to squeeze monopoly rents from state and regional transit authorities, whose commuter trains share Amtrakowned facilities.

Currently occurring in Chicago is Amtrak’s second stealth attempt since 2015 to control physical and economic access to Amtrak-owned passenger stations, allegedly to force higher rents on non-Amtrak commuter operators and choke off nascent private-sector competition for longdistance train operation.

As Amtrak has statutory immunity from economic regulation by the Surface Transportation Board (STB), it seeks to extinguish remaining regulatory oversight of subsidiary passenger train stations—acquired from common carrier freight railroads following Amtrak’s creation—by merging the stations and their tracks into Amtrak.

This forecloses the ability of current and future users of those essential facilities— publicly and privately owned; commuter and long-distance—from seeking regulatory review should contract disputes arise over access fees and use terms.

In 2015, a slyly buried provision in a

2015 FAST ACT amtrak’s action may

sabotage the intent of the

14 Railway Age // June 2018

1,030-page highway bill moving through Congress would have redefined Amtrak’s Northeast Corridor (NEC) to include track owned by Washington Terminal Co. and used by Virginia Railway Express (VRE) to reach Washington Union Station (WUS). The provision was removed after being revealed by this “Watching Washington” column.

Had the provision become law, VRE— whose trains are operated by Amtrak competitor Keolis—would have lost the option to protest before the STB all Amtrak demands for higher user fees at WUS. This is because the common carrier status of Washington Terminal Co. would have been eradicated by redefinition of the NEC. In Chicago, Amtrak allegedly is seeking again to stifle competition—this time by merging its Chicago Union Station (CUS) subsidiary into itself, which purges the common carrier status of CUS. This would place commuter operator Chicago Metra, the primary user of CUS, at Amtrak’s mercy in negotiations over fees and terms for track access and station use. If it works, Amtrak could use the same merger tactic with Washington Terminal Co. to achieve its earlier thwarted objectives at WUS. Amtrak’s action may also sabotage the intent of the 2015 Fixing America’s Surface Transportation (FAST) Act, which invited private-sector operation of up to three Amtrak long-distance routes. As many Amtrak long-distance trains operate to and from CUS, potential private-sector operators would be discouraged by Amtrak’s ability to abuse monopoly control of CUS. In a defensive first step, Chicago Metra petitioned the STB for a declaration that it retains jurisdiction over CUS; that the STB can mediate any disputes should Amtrak and Chicago Metra reach an impasse; and that the STB can prescribe terms for Chicago Metra’s access to, and use of, CUS should mediation fail. Such a declaration would similarly assuage concerns of potential private-sector competitors of Amtrak that may seek CUS access.

Other defensive action could occur.

Federal and Illinois antitrust laws prohibit monopoly power abuse that affects price and output—and, by extension,

Amtrak is not a U.S. government department or agency, by statute.” limits access to services, stifles innovation or hinders competition. As Amtrak, by statute, “is not a department, agency, or instrumentality of the United States Government,” it may face antitrust exposure. Additionally, Amtrak’s immunity from STB oversight means its CUS merger lacks antitrust immunity that accompanies STB-approved transactions.

Then, there is a legislative alternative.

The STB has statutory authority over terminal access, reciprocal switching and track connections. Substantiated allegations that Amtrak is abusing its market power and thwarting congressional intent for greater private-sector involvement in passenger railroading could invite swift and strong support for a statutory amendment.

The legislation could provide simply that disputes involving access to Amtrakowned passenger train stations be resolved by the STB. This could include subjecting Amtrak to the same STB access and switching remedies as attend STB-regulated freight railroads.

Frank N. Wilner is author of “Amtrak: Past, Present, Future,” available from Simmons-Boardman Books, 1-800-2289670; www.transalert.com.

FRANK N. WILNER Contributing Editor railwayage.com

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2018 Passenger Rail Guide

CALIFORNIA HSR The board of the California High-Speed Rail Authority in May approved a new business plan as required every two years, and the first under new chief executive Brian Kelly. Slight downward revisions of projected ridership and revenues come amid harsher expectations of how to pay for the line projected to open between San Francisco and Los Angeles by 2033, now estimated to cost $77 billion. There isn’t enough money in the bank to pay for the initial electrified segment linking San Francisco and the Central Valley. Under a financing plan promoted by Kelly, the state legislature would allow the authority to borrow against revenue from California’s cap-and-trade emissions program.

16 Railway Age // June 2018

High-speed rail currently receives 25% of cap-and-trade revenue, but not enough up-front funding to complete the project.

The anti-pollution program expires in 2030, and Kelly is asking lawmakers to extend it to 2050. If the financing plan is not approved by 2021, it could jeopardize the project’s construction timeline. Gov. Jerry Brown, whose term ends in 2019, sees high-speed rail as his legacy.

AMTRAK The good news: A reluctant President Trump in March signed the $1.3 trillion omnibus spending bill that included $1.9 billion for Amtrak. That funding allocates $650 million for Northeast Corridor grants and $1.9 billion to support the national

intercity network. As much as $541 million is available for the Gateway Project, for replacement of the Portal lift bridge outside Manhattan and a new tunnel connecting New Jersey and New York under the Hudson River, which Trump opposes. Also in New York, Amtrak and the city are partnering on a feasibility study to develop Sunnyside Yard in Queens as a mixed-use project that could eventually accommodate 80,000 residents, much like the Hudson Yards project over LIRR tracks on Manhattan’s West Side.

The not-so-good news: Former Delta Air Lines chief Richard Anderson was brought in to run Amtrak and, depending on who’s observing, seeking to operate the company as a going concern, or funneling money to NEC and California Capital Corridor railwayage.com

HNTB

Transit on the Move

2018 Passenger Rail Guide services as a way to dismantle the national intercity network piece by piece. The controversy boiled over, so to speak, when Amtrak this spring swapped hot meals for cold boxed food after dropping dining cars from the sleeper-equipped D.C.-Chicago Capitol Limited and New York-Chicago Lake Shore Limited.

VIA RAIL CANADA Canada’s federal government will help fund replacement of VIA Rail locomotives and rolling stock on the Quebec City-Windsor Corridor, which accounts for 94% of the operator’s ridership, with 32 new, bi-directional trains. Ottawa’s 2018 budget also proposes $8 million for Transport Canada to undertake foundational work to advance VIA Rail’s proposal for high frequency rail in the Quebec City-Toronto Corridor. The work would support further economic analysis of key issues, such as revenue and ridership projections, as well as estimates for capital and operating costs. This funding will also go towards exploring opportunities to leverage private investment.

BOSTON CRRC (China Rail Rolling Stock Co.) rolled out a pilot transit car for testing on Boston’s Massachusetts Bay Transportation Authority (MBTA), the first Chinese railcar builder to enter the U.S. rail car manufacturing market. The company is designing and manufacturing 404 subway vehicles for the MBTA, including 152 for the Orange Line and 252 for the Red Line. CRRC is constructing a $95-million, 204,000-square foot railcar manufacturing facility; a 2,240foot dynamic test track, and a staging/ storing area in Springfield, Mass., where assembly of the cars will take place.

RHODE ISLAND Amtrak and the Massachusetts Bay Transportation Authority ended their battle over operation, maintenance and use of the 37.9mile Attleboro Line between Boston and the Rhode Island state line on the Northeast Corridor. The two parties have struck a new Attleboro Line Agreement under which Amtrak will provide maintenance-of-way and dispatching services through 2021.

CONNECTICUT The State of Connecticut in June was railwayage.com

scheduled to begin operations on a longdelayed interstate commuter line connecting Hartford to New Haven and Springfield, Mass. Planning for the 62-mile, $700 million high-speed line began in 2004 as an alternative to congested Interstate 91.

The Hartford Line will initially operate 16 trains leased from Massachusetts, at a cost of $4.45 million. The Hartford Line will triple existing service from six daily round trips under Amtrak to 17 daily round trips from New Haven to Hartford, and 12 trains from Hartford to Springfield.

NEW YORK New MTA New York City Transit president Andy Byford in May rolled out “Fast Forward: The Plan to Modernize NYCT,” an estimated $19 billion program described as “a comprehensive plan to completely modernize every major aspect of the organization and its services, from subways to buses to accessibility to corporate culture.”

The centerpiece is state-of-the-art signal and track infrastructure for optimum reliability, performance and safety. Within five years, the latest computerized signal and track infrastructure will be installed on five additional lines to facilitate Communications Based Train Control (CBTC). Also in five years, the system will acquire more than 650 new subway cars, and refurbish another 1,200 cars.

NEW JERSEY Newly-elected Governor Phil Murphy is proposing hundreds of millions of dollars in additional funding for New Jersey Transit’s operations. The $37.4 billion state budget would allocate another $242 million to the bus and rail commuter operator, in addition to $141 million allocated in the fiscal 2018 budget, for a total of $383 million for NJ Transit operations in fiscal year 2019.

The agency also chose a route for a 10-mile two-track extension of the Hudson-Bergen Light Rail for the first time into Bergen County, from its current terminus in Jersey City. Plans for the $800-900 million project include construction of seven stations and parking for more than 2,700 vehicles. Separately, the Port Authority of New York and New Jersey will move forward with a plan to construct a new power station for its Port Authority Trans-Hudson (PATH) rapid transit system.

PHILADELPHIA SEPTA has begun operations with the first of a $118 million order for 13 Siemens ACS-64 electric locomotives, to replace older AEM-7s and ALP-44s. The ACS-64s will operate with SEPTA Regional Rail’s existing fleet of 36 Bombardier coaches as well as 45 new coaches on order with CRRC re due to be delivered in 2019.

BALTIMORE-WASHINGTON Rebuilt LRVs for the MTA from Alstom have been arriving on the property. Purple Line construction began in August; testing is expected to commence in 2020 with new CAF LRVs. The Maryland DOT-Maryland Transit Administration (MTA) in July awarded a joint venture of Hitachi Rail Italy and Ansaldo STS USA, Hitachi Ansaldo Baltimore Rail Partners, a contract worth $400.5 million to provide a new fleet of metro railcars and a CBTC system for the Baltimore Metro Subway Link. Separately, after a month-long emergency shutdown of Baltimore’s subway earlier this year, the Maryland House of Delegates passed legislation to increase funding for the MTA while requiring the agency to put together a long-term plan for the region. Maryland DOT-MTA awarded Amtrak a five-year contract to continue operating MARC commuter rail services.

NEW HAMPSHIRE Nashua has hired engineering consultant Aecom to help bring commuter rail service back to the city located near the Massachusetts border. The contract includes study and design of needed rail infrastructure upgrades and advice on achieving state and federal funding to pay for it. In 2017 the city entered into a memorandum of understanding with the Boston Surface Railroad Company to create a plan for privately-funded passenger rail. Based in Rhode Island, BSRC is in the early stages of establishing rail service from Bedford to Worcester, Mass., with stops in Nashua and Lowell, Mass.

NORFOLK/VIRGINIA BEACH Too much water and too little money will keep The Tide light rail from expanding to Norfolk’s west side. Hampton Roads Transit would not recommend a proposal to extend the LRT right-of-way along Hampton June 2018 // Railway Age 17

2018 Passenger Rail Guide Keith Parker (no relation) that has focused on residential and commercial development on MARTA-owned properties. MARTA and the city also proposed construction of 21 miles of light rail lines funded by a halfpenny sales tax approved by city voters in 2016. The slimmed-down “More MARTA” plan for the original Atlanta Beltline leaves out several other light rail routes as well as a commuter rail extension along I-20 West.

CHARLOTTE The Charlotte Area Transit System (CATS) in March opened the light rail LYNX Blue Line Extension, with double-track roadbed; 11 stations, including seven walk-up stations and four stations with park-andride facilities; three parking garages; new traction power substations; state-of-the-art communications systems, and a new central control facility. Total project cost was $1.2 billion, with 50% federal, 25% state and 25% local funding. LYNX connects 20 miles of the city from Uptown Charlotte to the University of North Carolina at Charlotte.

The Blue Line Extension is already contributing to economic development along the corridor, with more than 5,000 new apartments being built, planned or already completed along the path of the new light rail. There are major commercial developments planned or under construction near most of the stations on the new alignment.

NASHVILLE Voters in a May referendum sent a message to planners, rejecting by a 2-to-1 margin 18 Railway Age // June 2018

Let’s Move Nashville, a five-route light rail proposal funded by tax increases that would have cost $6.6 billion. The plan also included increased service frequencies for the Music City Star commuter line., where total ridership in 2018 is pacing ahead of the past fiscal year through the June 2017 total of 283,000 riders.

CHATTANOOGA A plan for high-speed rail between Chattanooga and Atlanta is still on the table. A preferred route along Interstate 75 connecting the two cities came out of a decade-long federal study completed in 2017, which also estimated the cost of construction at $8.76 billion. U.S. Transportation Secretary Elaine Chao in a statement at the time said the bullet train “was a long time coming,” and would mean more efficient, needed transportation along the corridor.

Supporters say the project would transform the Chattanooga economy overnight, and attract more than 5 million passengers a year to its airport.

ATLANTA In March, MARTA installed HNTB VicePresident Jeffrey Parker as its new General Manager and CEO. Parker had previously worked at the Atlanta agency and at transit authorities in Connecticut and Boston. He plans to continue growing transit-oriented development begun under predecessor

TAMPA BAY A $1.7 million study by engineering consultant HDR proposes two routes for expansion of Tampa’s 2.7-mile TECO Line Streetcar system, to reach more of the downtown district as well as north to Tampa Heights.

While both routes run an added 1.3 miles from East Whiting Street north to East Palm Avenue, one proposal runs out and back on North Franklin Street while the other loops along Florida Avenue and Tampa Street. Planners envision the streetcar would run every 10-15 minutes with a stop every third of a mile. The Service from Ybor City to the Channel District now runs every 20 minutes.

FORT LAUDERDALE Fourteen years in the making, The Wave streetcar came to a crashing halt in April when the city pulled out of the project after construction bids came in too high.

More than $33 million in federal, state and local tax dollars was spent planning the 2.8-mile downtown rail line, separate from funds spent by the city and its Downtown railwayage.com

All Aboard Florida

Boulevard through Old Dominion University or along Granby Street, since the area is vulnerable to flooding and considered too expensive. Planners will now focus on the city’s east side, with a route along Military Highway connecting to the airport at Naval Station Norfolk.

ORLANDO SunRail recently opened its Poinciana station in Osceola County, and is building three other stations as part of its Phase 2 southern expansion. Volusia County is scheduled to take over maintenance on 12 miles of SunRail commuter track from DeBary to end of track at DeLand, but county officials are voicing concerns over whether SunRail will follow through on plans to build a DeLand station and expand further into the county. Officials also are worried about estimated costs that have risen to nearly five times what the county agreed to pay. Despite a lack of federal contributions, the Florida Department of Transportation has forbidden Volusia from lobbying Washington on its own behalf.

2018 Passenger Rail Guide Development Authority. The low bid of $195.3 million was significantly higher than the project’s original estimate of $142 million.

MIAMI The splashiest news in U.S. passenger service has been the inauguration of Brightline, the higher-speed private operator based in South Florida. Operated by All Aboard Florida, a unit of Florida East Coast Industries, the carrier runs on Florida East Coast Railway right-of-way at speeds up to 79 mph. Brightline began service with Siemens-built diesel trainsets between newly-built stations in Fort Lauderdale and West Palm Beach in January, and opened its Miami terminal in May. The long-range plan envisions high-speed trains connecting South Florida to Orlando, but the plan is facing stiff opposition from some political and community interests.

William C. Vantuono

BUFFALO Fresh off the installation of its first-ever concession stand at one of its free-standing Metro stations, the Niagara Frontier Transportation Authority wants to expand the concept to all stations north of the Buffalo Niagara Medical Campus. The NFTA is the latest in a line of transit operators looking to increase ridership while transforming under-utilized real estate into high-traffic centers for residential and business use.

The agency had demolished the old Allen Street station and constructed the renamed Allen-Medical Campus station within the Jacobs School of Medicine and Biomedical Sciences, which is linked by tunnels and walkways to neighboring hospitals and research facilities, boosting ridership and revenues. The agency has identified 10 stations for upgrades, including the soonto-be-redeveloped Delaware Lackwanna & Western Terminal.

by local and state elected officials. The city also offered Amazon the Terminal Tower, built for Cleveland Union Terminal in 1930 and at 52 stories for many years the tallest building in North America outside of New York City.

CINCINNATI The city’s streetcar operation was launched in September 2016 and almost immediately became bogged down in the same situation suffered by buses and cars: Cincinnati’s intractable downtown traffic. The streetcar doesn’t run on dedicated lanes, and it was nearly impossible to stay on schedule. The city is studying whether traffic lights can be adjusted to help improve service. Worse, the vehicles built by CAF-USA have so many ongoing mechanical problems that the city stopped paying for repairs. And, private operator Transdev found that its contract bid of $3.3 million is less than what it costs to run the system.

CHICAGO Two companies will bid on a new express line from Chicago’s downtown Loop to O’Hare International Airport including The Boring Company, led by Tesla founder Elon Musk, who is proposing a new tunnel carrying his proprietary ultrafast but untested Hyperloop technology. Metra currently operates from Union Station to O’Hare, where a new people mover will soon whisk

passengers from the train directly to terminals. Chicago Transit Authority’s Blue Line also serves O’Hare, and renovations will trim ride time to 35 minutes. Elsewhere, Metra plans to purchase as many as 21 locomotives at a cost of $1.3 million each that were most recently used by Amtrak in California and other West Coast lines. The units will supplement power in for overhauls or installation of PTC equipment.

The CTA this year kicked off FastTracks, a $179 million program to repair five of the city’s eight rapid transit lines and eliminate speed restrictions due to infrastructure issues. The city in April broke ground on the Lake Street reconstruction project, which includes the CTA’s new $60 millon elevated Green Line Damen station. To help pay for capital projects and with the agency facing a $33-million budget shortfall for 2018, late last year the city council approved a 15-cent increase to the 52-cent surcharge on ridehailing services such as Uber and Lyft–an increasingly popular strategy among cities.

DETROIT A 20-year, $6.7 billion transit plan for southeast Michigan may or may not be put before voters. Connect Southeast Michigan includes commuter rail between Ann Arbor and Detroit as well as a number of other corridors, to be financed mostly by a tax increase amounting to $118 per year across households in four counties and

CLEVELAND In a half-hearted bid for Amazon’s second headquarters, the Greater Cleveland Regional Transportation Authority proposed increasing its commuter rail network from 37 miles to 111 miles by 2029, and fare discounts for the e-retailer’s employees totaling $120 million over 15 years. The agency’s longtime fervor for expansion, however, hasn’t been matched railwayage.com

June 2018 // Railway Age 19

2018 Passenger Rail Guide of $500,000 to save the nonprofit trolley operator before one of its restored vintage cars turned a wheel in service. The 2.2-mile line connects the Delmar Loop in University City to the Missouri History Museum in Forest Park.

NEW ORLEANS A 20-year plan released by the New Orleans Regional Transit Authority identified a number of “high-capacity transit corridors” ripe for further study of new services, such as light rail, and questioned whether current expansion of the streetcar system is improving capacity and transit times in those corridors. Officials have already voiced concerns over a contract with consultant HDR to study half-mile extensions in both directions for the Rampart-St. Claude streetcar line.

MILWAUKEE Amtrak has proposed plans to increase its Chicago-Milwaukee Hiawatha Line service from seven round trips a day to 10, or from 14 one-way trips to 20. The Wisconsin Department of Transportation, along with the Illinois DOT and Federal Railroad Administration, proposed a $195 million plan to add sidings for freight trains along the tracks shared with Metra and Canadian Pacific where passenger service has priority.

There’s been local pushback. The village of Glenview (Ill.), for one, appropriated $400,000 for public relations, environmental surveys, and possible litigation to oppose the plan for Amtrak’s busiest passenger route in the Midwest.

Milwaukee took delivery of its second streetcar in May from Brookville Equipment Corp., following a multi-state journey by truck from Pennsylvania. The vehicle was scheduled to begin trial runs on The Hop system in June. Three remaining streetcars are due for delivery between June and August, with initial free service slated to start in November.

20 Railway Age // June 2018

MINNEAPOLIS/ST. PAUL Local supporters are optimistic construction on the Southwest light-rail line can begin this summer, even as the price tag increased by $145 million, to more than $2 billion, on higher costs for steel, fuel and labor. After bids were termed too expensive, the Metropolitan Council elected to rebid the project, resulting in new bids higher even than the initial ones. Washington has committed $979 million to the 14.5-mile line from downtown Minneapolis to Eden Prairie, although that funding has yet to be delivered. Service is expected to commence in 2023 on what will be Minnesota’s biggest public works project.

KANSAS CITY Mail-in ballots were due June 12 on the question of a proposed 1% sales tax as well as assessments on businesses and residences in a special transportation district, to help pay for a southern extension of the KC Streetcar. The planned 3.7-mile route from Union Station to the University of Missouri–Kansas City includes eight stops, and would cost more than $220 million.

ST. LOUIS Testing of the oft-delayed The Loop Trolley is ongoing, and developers expect service to begin in late spring. The $51 million project was imperiled late in 2017 before local developer Clayco came up with an infusion

BATON ROUGE Engineering consultant HNTB is under contract to conceptually design two city stations for the proposed New OrleansBaton Rouge passenger rail line. After a gas tax was defeated in 2016, HNTB will also study other funding sources for the project.

The twice-daily train would serve passengers heading from Ascension Parish to the Baton Rouge Health District, with a terminal in the downtown east-Mid City area.

OKLAHOMA CITY Six months of streetcar testing began downtown in May, with service on the $131.8 million system scheduled to begin in December. The 2.3-mile loop connects Bricktown with Chesapeake Energy Arena, the new convention center, and Myriad Gardens. Construction of the Bricktown loop was completed on time by contractors Herzog/Stacey & Witbeck, and the downtown loop is slated for completion in October. The fleet is powered by Brookville’s Liberty Modern Streetcar.

DALLAS/FORT WORTH A new plan proposes $3 billion in new light rail lines for North Texas. Mobility 2045 by the North Central Texas Council of Governments shares a vision for regional transit for the next 20 years, including a corridors section of rail extensions and new lines. For $1.8 billion, the McKinney Line would extend the Dallas Area Rapid railwayage.com

William C. Vantuono

metropolitan Detroit. The matter is politically sensitive: While any of the counties could veto the measure, the Regional Tranist Authority of Southeast Michigan can send it out for public comment. A previous plan failed by 16,000 out of 1.8 million total votes in 2016.

2018 Passenger Rail Guide Transit Red Line through the end of line at Plano through Allen and up to McKinney and Fairview. The Frisco Line would start at the South Irving Transit Center and run north to five cities including Frisco, at a cost of $1.2 billion. The study also recommends the creation of four other rail corridors radiating from the cities of Fort Worth, Midlothian and Dallas.

HOUSTON Bechtel has agreed to work on project management with Texas Central, the $10-billion high-speed train between North Texas and Houston. The investorled project earlier contracted with Fluor Enterprises, Lane Construction and WSP for pre-construction planning. The Federal Railroad Administration released a Draft Environmental Impact Statement that outlined a preferred route and station locations. Amtrak has an agreement with Texas Central for through-ticketing between Dallas and Houston.

The Metropolitan Transit Authority is looking to purchase an additional 14 LRVs for $70 million, ahead of an expected increase in ridership. The purchase may be routed through Minneapolis, in a transfer of purchase rights from an earlier order.

Stuart Chirls

AUSTIN Like everything in Texas, the Capital Metropolitan Transportation Authority is going big with Project Connect, its transformative transit mega-plan featuring 11 light rail, commuter rail and bus rapid transit lines estimated to cost as much as $10.5 billion.

But the project has been given pause after Nashville voters this year soundly rejected a tax increase to pay for a similar $6.6-billion light rail proposal. A major difference is that Nashville was starting from scratch while Austin already has an established system.

Cap Metro in January hired former Boston transit executive Randy Clarke as its new President and CEO, and he has said Project Connect’s focus will be truly regional, in order to gain broader support before it puts the plan before voters in 2020.

which had been costing the Regional Transportation District and the private operator Denver Transit Partners tens of millions of dollars. The Colorado Public Utilities Commission also voted to move ahead with the G-Line from Union Station to the suburbs, which uses the same wireless technology. It will require a conditional waiver from the Federal Railroad Administration, which granted similar waivers for operations on the A and B Lines in 2017.

SALT LAKE CITY The Utah Transportation Authority in May appointed agency veteran Steve Meyer interim executive director. Planners are proposing new TRAX light rail lines as part of development of the former site of a state prison, rebranded as Point of the Mountain.

The plan also includes a north-south highcapacity, high-frequency rail link from Bangerter to connect with commuter rail FrontRunner, which recently celebrated its 10th anniversary.

ALBUQUERQUE Now in its 12th year, the Rail Runner commuter service between Belen and Santa Fe will receive upgrades to its Bombardier Rail bilevel car interiors this summer, and the Rio Metro Regional Transit District is planning midlife overhauls for its fleet of nine MotivePower Inc. MP36PH-3C diesel-electric locomotives, at a cost of

about $300,000 each. The state is looking to refinance about $230 million in Rail Runner debt to get a lower interest rate, and tamp down a potential sizeable spike in bond payments.

PHOENIX/TEMPE Rails were delivered in January to support construction of the three-mile Valley Metro Tempe Streetcar loop around the University of Arizona. The project, with 14 stations and costing $175-$190 million, is scheduled to begin operations in 2021. In May the Phoenix City Council approved a payment of $25 million to Valley Metro for final design and pre-construction services on a 1.6-mile extension of light rail from 19th Avenue to the Metrocenter mall. Service is to commence in 2023.

TUCSON Sun Tran as of January 1 raised transit fees for the 3.9-mile Sun Link streetcar and its other transit services, the second phase of a two-part fare change that began on Jan. 1, 2017 to add improvements such as Frequent Transit Network and enhancements to bus stops and shelters.

HONOLULU Facing a total price tag of $8 billion to complete its elevated fixed-guideway rail system, HART (Honolulu Authority for Rapid Transportation) is looking to private

DENVER After two years state regulators in March approved automated crossing protection technology and the gradual removal of flaggers on the University of Colorado A-Line, railwayage.com

June 2018 // Railway Age 21

2018 Passenger Rail Guide investment as part of a P3 public-private partnership. HART is considering a 20-year contract for operations and maintenance of the system, which it expects to generate almost $250 million in development revenue and other income. Groundbreaking for the final 4.1-mile, eight-station segment is planned for 2019, with the system to be fully operational by December 2025.

SAN DIEGO Among grants from the California State Transportation Agency is $40.4 million to fund projects in San Diego County that will improve Pacific Surfliner and Coaster rail service by investing in signal improvements, creating a more robust capital maintenance program, and installing new fencing along the railroad right-of-way.

Crews in January broke ground on the next phase of construction for the MidCoast Trolley, an elevated viaduct down the middle of Genesee Avenue in La Jolla.

The trolley is an 11-mile extension of the San Diego Trolley Blue Line from Santa Fe Depot in downtown San Diego to University City. Construction on the $1.8 billion project began in 2016; service is scheduled to begin in 2021.

LOS ANGELES Los Angeles County Metropolitan Transportation Authority (Metro) received $330.2 million from the California State Transportation Agency for new light rail

and bus rapid transit extensions, and better integration with Metrolink and Amtrak.

The Los Angeles-San Diego-San Luis Obispo (LOSSAN) Rail Corridor Agency received a $188.3 million grant including $147.9 million to address current and future constraints on the northern section in Ventura, Santa Barbara and San Luis Obispo counties by constructing additional double track and siding extensions, improving stations and train layover facilities, upgrading signals and switches, and providing incentives to host railroads for improved Pacific Surfliner on-time performance.

Metro in May opened the Metrolink Antelope Valley Line station, the second serving the Hollywood Burbank Airport in the San Fernando Valley. The commuter line runs between Los Angeles Union Station, the Northeast San Fernando Valley, Santa Clarita, Palmdale and Lancaster.

Metrolink’s Ventura County Line provides a station stop on the other side of the airport.

The agency is considering options to construct a subway line under Vermont Avenue, the second-busiest transit corridor in Los Angeles County. A Bus Rapid Transit corridor is planned by 2028 but Metro says a subway could carry more than the 75,000 daily boardings estimated for the BRT. Three other projects are under way: the East San Fernando Valley Transit Corridor connecting the Van Nuys Orange Line station and the Sylmar/San Fernando Metrolink station; the planned $9.5 billion

Sepulveda Pass line, and the West Santa Ana Branch Transit Corridor from downtown LA to the Orange County border.

Some phases are supposed to be ready for the 2028 Olympics.

SANTA ANA The Orange County Transportation Authority board of directors in March approved the $51.5-million purchase of eight S70 vehicles from Siemens for the OC Streetcar linking Santa Ana and Garden Grove. Projected to cost $299 million, construction on the 4.1-mile line is expected to get underway this year.

SAN BERNARDINO The Downtown San Bernardino Passenger Rail Project was completed in December 2017, extending Metrolink’s San Bernardino and Inland Empire/Orange County lines one mile from the Santa Fe Depot to the newly finished San Bernardino Transit Center. The SBTC will also host Arrow, the light rail service between San Bernardino and Redlands, to launch in 2021.

SAN JOSE Bay Area Rapid Transit (BART) is turning to extreme construction methods to get its $4.8 billion Silicon Valley extension under the city: a bilevel tunnel carrying five miles of east- and westward tracks, platforms and other infrastructure within a single tunnel.

It’s been employed successfully by the

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2018 Passenger Rail Guide Barcelona subway, but never before in the U.S. Planners say a single bore deep under city streets will minimize surface disruption, and cut 10 months off the five-year project. BART continues to test 80-mph trains on the 10-mile route from Fremont to Berryessa due to open in 2019. In the East Bay, BART was scheduled to open its first diesel line, to Antioch, in late May. SAN FRANCISCO/BAY AREA Excavation was completed in April under Chinatown for the Central Subway, the 1.6-billion, 1.7-mile extension of Muni’s T-Third Line. Service is expected to get under way in 2019, although contractor Tutor Perini has said it could be delayed until 2021.

STOCKTON The state approved a $750,000 planning grant for an Altamont Corridor Express (ACE)-BART connection. The San Joaquin Regional Rail Commission has awarded Siemens a $30 million contract to build

four Charger locomotives with an option for four more. The locomotives will service ACE with future planned extensions to Ceres, Modesto and Sacramento. Delivery will begin in December 2019.

SACRAMENTO The Sacramento Regional Transit rewarded new chief executive Henry Li with a 33% increase in total compensation, a thankyou after Li and his management team in just one year balanced the budget, restored reserves to $8 million (mostly through staff cuts), and cleaned up trains and stations. A grant of $64 million from the State of California’s Transit and Intercity Rail Capital Improvement Program will fund the purchase of 20 new low-floor light rail vehicles, part of the agency’s rail modernization program. A second grant of $20.3 million underwrites double-tracking on the Gold Line, for more frequent service to Folsom.

PORTLAND TriMet’s 17-year-old Portland Streetcar set

a record in April, averaging 16,650 weekday riders on its two lines, even as the agency’s MAX light rail saw ridership decline by 1.7%. Two new cars built by Brookville Equipment Corp. are scheduled to enter service in 2020.

SEATTLE-TACOMA Sound Transit’s Hilltop Tacoma Link lightrail extension received $75 million from the FTA through its Small Starts grant program. Construction will start this fall, and service in 2022. The 2.4-mile extension will continue Link north along Commerce Street and run along Stadium Way to the Hilltop District, providing additional access to Tacoma’s downtown corridor. The agency also contracted with Brookville Equipment Corp. on a $26.5 million contract for five Liberty LRVs and an option for 10 more.

VANCOUVER Microsoft has pledged an additional $300,000 to an ongoing studying of highspeed rail service between Seattle and

Connecting You To More Siemens Rail Automation is providing a clear vision for Freight Railroads to make the most out of their assets. Siemens uses connectivity, asset monitoring, and data analytics to help bridge the gap between the railroad’s current operation and a more transparently efficient future. By investing in products and technology, Siemens has the end-to-end solutions to connect the railroad’s vision into more. usa.siemens.com/rail-automation

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June 2018 // Railway Age 23

2018 Passenger Rail Guide TRANSPORTATION & INFRASTRUCTURE

Vancouver, Canada. Washington State has kicked in $750,000 and British Columbia, $300,000. The Cascadia Innovation Corridor service would connect the cities in under an hour. Also, a TransLink public survey found increased SkyTrain service and building the Broadway subway among the three most important elements of the 10-year, $7.3 billion Metro Vancouver regional transportation plan.

BUILDINGS & FACILITIES CONSTRUCTION MANAGEMENT ENERGY SERVICES

EDMONTON Transed Partners, the consortium building the first phase of Edmonton’s light rail Valley Line Southeast, released images of the first Bombardier Flexity Freedom LRV. Bombardier is building 20 for the 8.6-mile route at its plant in Kingston, Ontario.

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CALGARY Ottawa will invest up to C$1.53 billion in the Green Line LRT, the federal government’s largest-ever contribution to Alberta infrastructure. The first stage includes 12.4 miles of track, 14 stations, 70 low-floor vehicles, a maintenance facility, eight bridges, four tunnels, and three park-and-ride lots. Construction is scheduled to begin in spring 2020 and completed by late 2026.

ONTARIO Ontario and Metrolinx issued a Request for Qualifications for the Lakeshore West GO Transit corridor, part of the larger GO Regional Express Rail Program, which will transform the GO network into a regional rapid transit system. The province has committed C$21.3 billion ($16.6 billion) to the GO RER program. Mosaic Transit Group signed a DBFM contract worth C$2.5 billion ($1.9 billion) for the Finch West Light Rail Transit project, to open in 2023. In heavy rail, Ontario has committed an initial investment of more than C$11 billion ($8.6 billion) to make higher-speed rail service between Toronto and Windsor a reality as early as 2025.

MONTREAL Montreal’s futuristic, for-profit passenger railway system, Réseau express métropolitain (REM), moved from concept to concrete in February with the award of $C6.3 billion ($4.8 billion) of construction contracts by owner-operator Caisse de dépot et placement. Construction began this spring.

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2018 Guide to Equipment Leasing

Consistent Strength?

Not yet

William Beecher (all photos)

W

elcome to Railway Age’s Annual Guide to Equipment Leasing!

The railcar market remains as vibrant, confusing and challenging today as it has been for the past 12 months. Some soft railcar markets have stabilized and expanded; some markets that were left for dead are resurging; still other markets remain on life support.

Through all the worries of car owners and operators, railcar loadings continue on a slight upward trajectory, led by increases in intermodal loadings (partially due to capacity issues in the trucking market).

To date, railcar loadings generally have increased 5.9% YOY since 2017, with intermodal loadings up 3.5% YOY. This growth and loadings increase comes amid a basket of unsettled factors: • Rising interest rates, with the ten-year treasury bond hovering around (above) 3% while the Federal Reserve looks to railwayage.com

BY DAVID NAHASS, FINANCIAL EDITOR

continue to raise interest rates. Rising rates are increasing fears of an inverted yield curve (a harbinger of recession).

• No infrastructure bill out of Washington (and unlikely headed into the campaigning season for 2018 midterm elections), in spite of incredibly high expectations on the deliverability of that pre-Presidentialelection promise.

• No resolution on the restructuring or renegotiation of NAFTA. • Heavy steel tariffs, the effects of which remain in development.

• Massive changes in depreciation and corporate taxes, whose vicissitudes are still being worked through and clarified.

• A border wall with Mexico that is just barely under construction and still seems to lack a clear path forward.

Under all that weight, many lessors felt that 2018 would be a pivotal year, during which markets would stabilize and turn positive, with hope being placed on 2019 for a “real” recovery. That plan, which may

have sounded impossible in late 2016 and early 2017, has a chance to be accurate. Is the market headed back to 2014, with peak demand and lease rates? Absolutely not. Are some markets that are reaching equilibrium giving lessors the sense that all hope is not lost? “Maybe” is probably the right answer to that question, and probably enough for rail investors right now.

Here are the trends that are impacting the railcar market and the leasing of railcars right now: New Car Demand and Pricing: We have been hearing that new car order inquiries were on the rise. That seems to still be the case. Large order bid requests or order placements in plastics (> 5,000 cars), sand hoppers (>2,000 cars), mill gondola railcars (yes, really!) (>1,000 cars), and intermodal equipment seem to indicate that new deliveries might have the potential to break through the 50,000 car mark in 2018.

There has also been an increase in demand for capacity for retrofitting tank railcars June 2018 // Railway Age 27

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2018 Guide to Equipment Leasing

There has been an increase in demand for retrofitting older tank cars to the DOT 117R spec.

that eventually need to be moved to the DOT 117R standard. If investors ignore the original prices paid for tank railcars creeping back into service, recent demand and retrofit requests make segments of the tank railcar market seem almost healthy.

Pat Mazzanti, President of Railroad Appraisal Associates and perennial Rail Equipment Finance (REF) speaker, says that the market for new cars is on the rise, with 13,000 cars delivered in Q12018. “I see that delivery pace as being too high if it continues throughout the year,� Mazzanti said. He sees new car prices stable as manufacturers compete for incremental increases in deliveries in 2018. Prices are staying lower than you would expect, given recent increases in steel pricing. Competition for orders remains intense as manufacturers work to

keep their manufacturing facilities open.

Mazzanti feels that delivering 50,000 units in 2018 is more cars than the industry needs right now, considering the inventory of available railcars and the number of cars in storage, and that lease rates remain at levels that are too low to justify new car investment. Based on conversations with manufacturers, Mazzanti says the OEMs believe prices are lower than what the market should be right now and are unsustainable, long-term.

One executive at a railcar manufacturer confirmed much of what Mazzanti said and added a little more color. This executive indicated that steel pricing has been on the rise for the past five months and that there were expectations for one or two more increases before prices stabilize. There was

an indication that there was uncertainty about the future of the market, even with such concrete intelligence. As a result of these increases, new car manufacturing costs are up 5% from recent lows. This is causing stress on the price of new cars.

However, reduced car prices are being used to grab orders, especially if the order size is on the big side. There has been an increase in inquiries on new cars, but the percentage of inquiries being converted into orders has not increased substantially. Expectations for 50,000 deliveries are reasonable, but direction for 2019 still remains unclear.

Used Car Demand, Pricing and Retrofits: On used equipment, Mazzanti says that the pace of used car sales has slowed from 2017 to 2018, and that the prices on equipment sold between lessors in the

General Railroad Industry Consulting

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June 2018 // Railway Age 29

2018 Guide to Equipment Leasing secondary market have slightly softened from last year. What types of cars are being most heavily traded right now? Mazzanti says that grain hoppers, sand hoppers and non-crude tank railcars (up to 23.5 Mg capacity) are most frequently offered for sale. When asked if he sees prices as stable or poised for further increases, Mazzanti says he expects prices to increase later in 2018 as the full impact of steel tariffs is understood and felt in the market and as the overall economy strengthens. He cautions that higher prices exacerbate gaps between current rental markets and investors’ ability to recover their investment from rents over the railcar’s remaining life. As interest rates rise, Mazzanti worries that investors who cannot increase lease rates at lease renewal may struggle in the market.

In the retrofit market, Mazzanti sees an increase in retrofit activity but feels the level is lower than required. The increase stands to reason. The DOT requirement for moving crude (and other refined commodities) in more stoutly built cars (non-legacy DOT 111A cars) is coming up soon. Large companies (e.g. integrated energy companies) are either selling off their “1232” designed DOT 111A tank railcars or moving to retrofit them at the retail price of $50,000 to $60,000 per car.

What’s the problem? Mazzanti says lessors are struggling to determine the fleet requirement for crude, ethanol and other refined fuels for the long-term slowing the retrofit process. So many unknowns impact the retrofit decision—grain subsidies for ethanol, pipeline capacity, the price of crude, etc.—that car owners are making judicious decisions regarding retrofits. Mazzanti is concerned that a heavy backlog of cars requiring retrofit is on the horizon.

Resurgent Markets Lead the Way One has to return to late 2014 (during a six-month period when the price of crude moved from more than $100/barrel to $45/ barrel) to recall when the price of oil was squarely above $70/barrel.

During that time, rail was the leader moving crude out of the North Dakota and Texas regions. Tank railcars were being delivered at a rapid pace and demand seemed limitless. Then 2016 happened. Rig counts went from a 2014 peak of 1,900 down to 400 in mid-2016.

Today, rig counts are above 1,000 and tank railcars are on the move.

What’s the cause behind the improved market dynamics? Offtake in the Permian Basin in Texas is outstripping pipeline capacity.

Two sources have highlighted this issue: Taylor Robson (President of PLG Consulting, an REF participant), who has written a whitepaper about the Permian bottleneck (https://plgconsulting.com/ News/whitepaper-a-problem-in-the-permian/), and Bob Tita in The Wall Street Journal. This is driving an expansion of frac drilling in other regions—Wyoming, North Dakota (non Bakken) and Colorado—where pipeline capacity may not exist and crude by rail is the only game in town.

This demand increase stabilizes the short-term CBR market while many feel Class I railroads in Canada are pricing CBR out of the market. Many crude shippers have identified outsized contractual and economic demands from Class I’s for moving Canadian crude. Other drivers include increased demand for tank railcars hauling refined fuels into Mexico. This is driving demand for both the 1232 design and the DOT 117 design tank railcar.

Growth in the chemicals business is creating additional market 30 Railway Age // June 2018

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2018 Guide to Equipment Leasing pressure. For mid-sized general-purpose capacity tanks, (23.5 Mg and 25.5 Mg capacity), the inventory of DOT 117s has almost been completely consumed.

Clearly, there is potential for the tank railcar build to exceed the 12,000 or so anticipated 2018 deliveries.

The sand rush continues unabated, as increased frac drilling (from the increased rig count) leads to an increase in tons of sand needed to force more crude and more natural gas from shale rock. Concerns about overbuilding remain prominent in the minds of lessors; most are happy to enjoy the increase in demand for as long as they can. One shipper has told me that his company had been offered newer, more efficient equipment in exchange for releasing small-cube hoppers that could move into sand service in the short term.

When asked about sustainability in this market, one lessor shrugged and told me that whether demand continues to increase or the market overbuilds, as a car owner there is a necessity to place cars in the best

32 Railway Age // June 2018

position possible, long-term. That’s about all a company can do.

Politics, Weather, the Economy and Rail Great gestures of populism followed President Trump into office. Promises related to the passing of a massive infrastructure bill to overhaul decaying highways and bridges were a focal point. Washington promised $1.5 brillion in spending. The Washington Post reports a whopping 1% has been actually spent. (That’s Huge! It’s Awesome!)

Ditto for the wall along the U.S./Mexico border, which, since Mexico has not yet agreed to pay for it, has not been included in any recent government budgets. (In fact, all budget dollars allocated to homeland security exclude funding for the border wall.)

Steel tariffs? While those tariffs are in place today, carve-outs for favored nations and bilateral negotiations with China under negotiation have kept the impact more muted than expected. As noted above, steel prices are rising, but the problem

remains that no one can pinpoint where the market is headed and what the collateral impacts will be for those industries (such as soybeans) that could be the recipients of retaliatory tariffs.

Grain car owners are already under stress (see “Around the Market,” p. 34) as utilization rates have been high even as grain and grain products loadings have increased for the past 24 months. A drought-ridden winter wheat harvest in the Southern Plains may also be setting up for a difficult summer season. Combined with the potential for weakness in the export market, this news will likely stress car owners even further.

An operating lessor indicated that they felt that operating lease rents and total returns were “just too low.” As a result, this investor is shifting capital into other investments.

They have some hope that higher interest rates might cause other companies to make a similar shift. Companies who overpaid for assets will see their interest and O&M costs rise without seeing rents increase.

Whenever they realize they cannot hit their

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2018 Guide to Equipment Leasing

The coal car market is still weak as lessors look for a bump-up in scrap rates to retire older units.

target returns, they might consider selling.

Overconcentration can cause problems as well. For this lessor, diversity matters. This lessor felt that a well-balanced rail portfolio (rather than being overexposed to a single

commodity) has been a good hedge for the market’s volatility.

In total, these factors point to a mostly rudderless market. Political elements that may influence the market might come down

to subtleties and nuances that may not be felt for a year or more.

Car owners and operators are all hoping for something more substantial and positive than that.

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June 2018 // Railway Age 33

2018 Guide to Equipment Leasing AROUND THE MARKET A directionless, competitive and hungry market makes for interesting perspectives on lease rates. Here’s a summary of what is happening in markets around the industry: Coal Cars: The coal market continues to be the weakest of the bunch as some lessors pray for a bump in scrap rates to provide enough incentive to shed old cars whose best earning days are behind them. The impression of better parity in the bottom-discharge market gives a little more strength to that segment, but improvements are minimal.

Lease rates are in the mid-$100s for gons and $200 or less for bottom-discharge cars, both full-service, but for every deal completed there are always exceptions. If a lessee will pay inbound freight, most lessors will lease a car for virtually nothing to avoid storage costs. The sentiment is that the market might tighten in a couple of years. I wouldn’t bet much on that.

Plastic Pellet Hoppers: New plants continue to pop up and more get announced, but the operating lease market for these

cars continues to remain soft. Rates in the mid-$500s for full-service identify the hard truth: Lessors placing bets in this market haven’t seen the rates materialize in the manner expected. There is hope here, but wave two of plant production doesn’t start until 2022.

Grain Covered Hoppers: This market continues to hope for revitalization and renewal as older cars scrap out and yield to larger and newer cars. Feels like déjà vu.

Lease rates languish in the low-$300s fullservice for jumbo cars potentially dipping below that threshold. Smaller cars, e.g.

4,750cf, are low- to mid-$200s, full-service.

Mill Gondolas: Improvement in the scrap market (Chicago Heavy Melt #1 is in the mid-$300s per ton) along with railroad service disruptions have moved rates and demand on 52-foot mill gons up into the mid- to high-$400s, full-service. 66-foot cars continue to hang in the high $400s.

Sand Hoppers: One of the lone bright spots in the rental market. Lease rates are hanging between $550 and $600, full-service, with

1_2pgHorzWrkStTraining2016.qxp_Layout 1 8/17/16 3:25 PM Page 1

some upside depending on circumstance.

Lessors should be cautious of newly built cars looking to grab market share at the expense of rate.

Tank (Non-Crude, Non-Ethanol): Underbuilding has led to a slight uptick in demand and lease rates for these cars. Among the most common types, 23.5 Mg (DOT 117 spec) are $575-$600, full-service, ditto for 25.5 Mg tank railcars. Pressure cars remain tepid, with rates on used cars in the high$400s, possibly touching $500. These cars continue to remain in surplus.

Tank (Crude and Ethanol): DOT 117 tanks are trading between $650 and $700 full-service, short term. New cars lead the higher end of that range, but like everything else, rates in this segment are circumstantial, so rates of $500 or $800 shouldn’t be surprising. One factor to watch? UP and BNSF seem to be indicating that they want to move crude in only DOT 117 and 117R cars and move away from using 1232 DOT 111As in that service.

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equipment leasing guide

Leasing Resource Directory The 2018 Guide to Equipment Leasing (pages 27 through 34) is supported by companies that provide equipment leasing and financial services and products to the rail industry. All of these firms have advertisements elsewhere in this section or have used paid profile space to present their background and capabilities.

Trinity Industries Leasing Company (TILC), with an owned and managed fleet of approximately 119,000 railcars, provides comprehensive railcar leasing options, fleet management, administrative services, as well as railcar maintenance and on-site field service support.

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Sales and marketing activities for Trinity’s leasing and manufacturing businesses are coordinated under the trade name TrinityRail®, providing a single point of contact for our customers.

Additional information on TrinityRail’s products and services may be found at www. trinityrail.com.

Brian Madison, President, Trinity Industries Leasing Company Mark VanCleave, Executive V.P., Industrial Sales & Leasing 2525 Stemmons Freeway, Dallas, TX 75207 Phone: 800.631.4420; Fax: 214.589.8623.

www.trinityrail.com

36 Railway Age // June 2018

RailSolutions provides a broad variety of railroad equipment-related consulting, technical and advisory services to financial institutions, railroads, shippers and fleet operators with a primary focus on equipment valuation and appraisal services. Additional areas of expertise include railcar and locomotive inspections, equipment repair and overhaul cost analysis, and portfolio valuations.

RailSolutions draws on over 40 years of railroad industry experience in developing multiple quantitative valuation models supported by both a sound base of market data and advanced analytical techniques.

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

www.railsolutionsinc.com

CIT Rail is an industry leader in providing customized leasing and financing solutions for our customers throughout North America. We leverage a highly diversified fleet of efficient railcars and locomotives to supply railcar transportation solutions to shippers and carriers across a wide range of industries.

Our solutions free up capital for your growth priorities, increase efficiencies and reduce out-of-service time. CIT Rail owns over 117,000 railcars and 400 locomotives leased to approximately 500 customers. CIT Rail brings unparalleled asset management expertise and commitment to the transportation sector.

Visit citrail.com, call 312-906-5701 or @CITgroup follow

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railwayage.com

equipment leasing guide

With more than 30 years of experience in the rail and finance industries, Progress Rail serves as a full-service professional leasing firm, specializing in leasing railroad maintenance equipment. We finance and refinance Maintenance-of-Way equipment, intermodal equipment, locomotives, railcars, and other rail-oriented equipment. Our experts’ dedication and uncompromising focus on quality sets us apart from the competition. Progress Rail develops leasing programs to cut equipment costs and provides leasing structures that are tailored to meet the rail industry’s specific and everchanging needs. In addition, we offer finance and operating leases, sales/leaseback programs, and short and long-term rentals.

Progress Rail, A Caterpillar Company Equipment Leasing Division 15173 North Road, Fenton, MI 48430 (810) 714-4626 Voice • (810) 714-4680 Fax

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VTG Rail and VTG North America are the US subsidiaries of VTG AG, one of Europe’s leading rail car leasing and rail freight logistics companies with a fleet consisting of more than 82,000 railcars.

VTG Rail offers a full range of railcar leasing and fleet management services, providing a broad range of tank and general freight cars under a variety of lease structures. In addition to those services, VTG AG also provides intermodal cars and sliding wall wagons.

Complementing the leasing of rail cars, the Group offers comprehensive multimodal logistics services, mainly around rail transport and global tank container transports. With the combination of its three interlinked divisions Railcar, Rail Logistics and Tank Container Logistics, VTG offers its customers a high-performance platform for international transport of their freight.

Call (618)343-0600, email sales.northamerica@vtg.com

www.vtg.com

The David J. Joseph Company The David J. Joseph Company’s Rail Group provides a broad range of transportation services throughout North America: single investor, leverage leases, freight cars, portfolio evaluation, remarketing fleet management, purchases and sales of portfolios, and private fleet management.

Other services include freight car inspections and engineering services from design of new cars to complete ISL extended life, modifications and analysis; in addition to railcar dismantling for scrapping and parts reclamation.

The David J. Joseph Company Rail Equipment Group 300 Pike Street • Cincinnati, OH 45202 Tel.: 513-419-6200 • Fax: 513-419-6221 Contact: info@djj.com

SMBC Rail Services LLC is committed to providing innovative rail car leasing products and services to North America’s vital rail industry.

Let one of our experienced professionals show you how.

Visit us at our website: www.SMBCrail.com, or call us at 1-866-4-RAILCARS.

When evaluating your railcar needs, you need a partner with industry experience, deep asset knowledge, and the strength to offer competitive and flexible terms.

From flat cars to covered hoppers and beyond, the Rail Finance team at PNC Equipment Finance offers the inventory of assets to meet your needs combined with the industry-leading financial expertise to maximize ROI. Whether you need Full Service Lease options, including maintenance or a simple net lease, short term or long term, we bring comprehensive railcar solutions for the miles ahead.

PNC Equipment Finance – Rail Finance Team Ken Roseberry, SVP 513 455 9617, ken.roseberry@pnc.com Christopher Bell, Sales & Marketing 513-455-9620, christopher.bell@pnc.com Robert Hogan, Sales & Marketing 513-455-9056, robert.hogan@pnc.com

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Gene Henneberry, President and CEO SMBC Rail Services LLC 300 S. Riverside Plaza, Suite 1925 Chicago, IL 60606

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railwayage.com

June 2018 // Railway Age 37

M/W: RAIL

T

here is more than one way to remove metal from rail.

Whether it’s by grinding or milling, service providers and equipment manufacturers are focused on maximizing productivity within tight work windows and precision when it comes to rail profiles.

38 Railway Age // June 2018

Grinding and milling service providers are tapping into new innovations to maximize ROI while improving rail life cycles.

By Mischa Wanek-Libman, Engineering Editor

and production grinders,” says Ken Range, Manager of Product Development.

Loram describes rail grinding as one of its core competencies and says it’s “committed to delivering superior value through lower cost per unit by providing more efficient rail grinders that lead the industry in metal removal.”

“Efficient rail grinders with superior

metal removal reduce the amount of passes required and operate at higher speeds to produce the required profile and minimize overall cost. Loram’s rail grinding product offerings include a full equipment and services that serve heavy haul, international, specialty and transit railroads,” says the company.

Loram explains that any preventive railwayage.com

Loram

Rail grinding Harsco Rail says that with maintenance work windows being reduced, proper maintenance cycles can be performed with efficient planning and monitoring.

“Understanding the proper rail/wheel interface gives the railroad information that allows for predicting rail wear,” says the company. “The re-profiling of rail isn’t all about maximum metal removal anymore; it’s more about the proper amount of profiling in order to be more precise as it relates to the contact band of the trains running on the rails.”

Harsco Rail has developed software to simulate the trains’ contact band on the rail for planning and monitoring the rail/ wheel interface.

“This allows for precise rail templates to be ground on a variety of different track sections, which better fits the desired contact,” explains Harsco Rail. “We have been involved with a number of projects where we take various rail measurements and compare to vehicle wheel measurements, then run the measurements through our software in order to make decisions about the most efficient rail/wheel interface for specific customers’ needs.”

Providing equipment that melds versatility with productivity is an attractive combination to a variety of rail customers. Loram Maintenance of Way, Inc. introduced its RGT truckable rail grinder to enhance its maintenance-of-way line equipment. The RGT consists of a trailer-mounted, eightstone, full-flex grind buggy that is both Department of Transportation and railroad compliant. The company notes the RGT’s combination of productivity and robustness within a truckable platform makes it an attractive option for customers.

“As the RGT is able to travel over road or on track, its transportability allows it to be a quick-deploy solution to rapidly remove rail defects while also retaining many of the same features of our specialty

M/W: rail Loram’s RGT consists of a trailer-mounted, eight-stone, full-flex grind buggy.

Honing in on

rail profiles or corrective grinding program can be planned and accomplished effectively and economically through proper inspection, scheduling, machine selection, grind stone selection and performance monitoring, thus, maximizing the railroad’s return on investment.

The company explains that its team “delivers on the railroad’s service railwayage.com

expectation through pre-planning, effective communication and a dedication to hard work.”

“Through the utilization of data gathered by a Rail Inspection Vehicle (RIV), Loram rail grinding customers work in concert with the Loram Asset Management team to gather, analyze and plan grinding activities according to the diverse requirements

and trends of individual customers and track situations. The resulting grind plan provides the remediation requirement for that track section allowing the selection and deployment of the most efficient rail grinding program,” says the company.

“Loram continues to invest in both research and development in the design and manufacturing of highly productive June 2018 // Railway Age 39

M/W: RAIL

A modified version of the Linsinger SF02T-FS milling machine will arrive in North America by the end of 2019.

equipment that can operate at the highest level of reliability,” says Scott Diercks, Director of Marketing and Business Development.

Maximizing work time while minimizing the impact on revenue operations is also a goal grinding service providers aim toward.

Orgo-Thermit, Inc., is now into its sixth year performing rail grinding with its VM8000 on/off-track two-way rail grinding vehicle. GeorgeAnne Tutunjian, Director of Business Development, explains that this maintenance service considerably increases the life cycle of rails, as well as lowering noise emissions from train operations, which equates to rider comfort. Recognizing this need

along with expanded sales, Orgo-Thermit, Inc., will be receiving a second VM8000 vehicle in third-quarter 2018.

“With our VM8000, we can enter and exit track within one minute as traffic is inbound. Additionally, the ability of our fourwheel steering allows us to set on at any crossing in the vicinity of the work to be done. It’s not necessary to travel from the yard prior to commencing work, offering an increased amount of rail grinding time. We are excited to be adding a second vehicle and offer our services to more customers,” says Tutunjian.

Orgo-Thermit, Inc. has also introduced its RailShape Eco for re-profiling and deburring rails, including difficult areas such as switches. The RailShape Eco is a mobile grinding unit that corrects gauge narrowing, removing defects on the running edge of the rail.

It is designed to be easily operated by a single user.

With the VM8000 grinding vehicle and the addition of the RailShape Eco, Orgo-Thermit, Inc. “is able to provide more versatile grinding services in support of customer requirements,” notes Tutunjian. “Having an organized and detailed inventory ensures Orgo-Thermit’s grinding technicians are best equipped to handle issues that may arise unexpectedly.”

Rail milling LINSINGER and its sister company LINMAG will be entering the North American rail market with the addition of a dedicated transit milling machine. The machine, which is being built at LINSINGER’s

WE SIFT THROUGH THE NEWS SO YOU DON’T HAVE TO RAIL GROUP NEWS brings you a daily round-up of news stories from Railway Age, RT&S, and IRJ. This email newsletter offers North American and global news and analysis of the freight and passenger markets. From developments in rail technology, operations, and strategic planning to legislative issues and engineering news, we’ve got you covered.

RAIL GROUP From RAILWAY AGE, Railway Age,RT&S RT&S and and IRJ IRJ NEWS www.railwayage.com/rgn 40 RA_RailGroupNews_Half_Sift.indd Railway Age // June 2018 1

Linsinger

ROUND-UP of NEWS STORIES FROM:

railwayage.com 7/18/17 10:35 AM

RA_June_MOW.pdf

Austrian factory, will be equipped with the “latest innovations and technology” to aid in the resetting of rail life. LINMAG, with its partner Rhomberg Sersa, a multi-disciplinary railway infrastructure contractor in Europe, Australia and North America, will bring the rail-bound SF02T-FS rail milling machine to North America by the end of 2019.

Richard Stock, Milling Technology Manager for LINMAG and LINSINGER, explains that the SF02T-FS is specifically designed to fit in most of the clearance envelopes of North American transit systems while having flexible processing capabilities to cover short as well as long maintenance windows.

“Especially in urban environments, railway noise can cause major problems. The SF02T-FS will be able to remove all typical track related sources of railway noise like corrugation, wheel burns, dipped joints/welds, etc., by restoring the rail profile and creating a low-noise surface finish in as little as one milling pass. The machine will also be available to do demonstrations and spot milling activities (switches, crossings, bridges, high damage curves) at Class I railroads,” says Stock.

Stock notes that LINSINGER offers a variety of high performance milling machines for various railroad environments, all capable of treating main line track, as well as switches, crossings and level crossings. Additionally, the milling chips are stored onboard the machine and can later be sold as high-quality scrap, which Stock says adds value and a positive environmental impact to the process.

“LINSINGER high-performance rail milling technology is a truly complementary rail maintenance approach to conventional rail grinding. The technology has strengths in areas of complete damage removal, full profile restoration, as well as producing highquality longitudinal and transversal profiles,” says Stock. “With this technology, it’s possible to reset rail life, preventing premature rail exchange and extending the rail life, thereby contributing to substantial cost savings. The milling machines are equipped with state-of-the-art measurement technology to provide seamless electronic documentation with respect to longitudinal and transversal rail profile, as well as surface crack condition. With a completely dust- and spark-free process, it can be used in sensitive areas like tunnels and stations or on timber bridges, as well as in general fire restriction areas without any special precaution.”

Another company with European offerings is Vossloh Rail Services, which provides its customers with mobile rail milling services. Vossloh explains that milling is a maintenance practice capable of correcting advanced rail defects through a spark-free cutting process that removes up to 3 mm of steel from the railhead in one pass. Vossloh explains that its milling trains are integrated with measuring equipment that works behind the milling cutter, analyzing the machined rail to ensure there are no remaining defects. The result, says Vossloh, is a precise, dimensionally accurate restoration of the rail’s transverse and longitudinal profiles.

“Vossloh Mobile Rail Milling machines operate at speeds of up to 2 mph. While this is a lower speed than production grinding trains, rail milling is also much more efficient, capable of completely re-profiling the railhead in as little as a single pass,” says the company. “Rail milling is a maintenance technique used to recondition rail sections with advanced rail defects, which helps our customers avoid costly, time-consuming rail replacement.”

1

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TECHNOLOGY FOCUS – MECHANICAL How Data Science can be applied to rolling stock maintenance management.

ROLLING with

BIG DATA

BY ALLAN M. ZAREMBSKI, PH.D., P.E. FASME; HON. MBR. AREMA; PROFESSOR OF PRACTICE AND DIRECTOR, RAILROAD ENGINEERING AND SAFETY PROGRAM, DEPARTMENT OF CIVIL AND ENVIRONMENTAL ENGINEERING, UNIVERSITY OF DELAWARE

T

he emerging role of Data Science, commonly known as “Big Data” in railroad maintenance, was discussed in last month’s Railway Age (“Better Railroading Through Big Data.” As noted, railroads are developing and implementing new generations of sophisticated inspection and monitoring systems, and as a result are finding themselves collecting large volumes of data.

This large volume of data, often referred to as Big Data, generally refers to data sets that are so voluminous and complex that traditional data-processing application software is inadequate to deal with them, resulting in the need to use advanced data analytic tools. This is illustrated in Figure 1 (p. 44), which compares the traditional data analysis approach to data handling with the railwayage.com

Big Data approach.

This use of Big Data in the railroad industry, to include freight and passenger rail, cuts across traditional departmental lines, with applications in Engineering (Track and Structures), Equipment (Rolling Stock) and Transportation (Operations). These applications have been highlighted at the University of Delaware’s annual “Big Data in Railroad Maintenance Planning” conference, where railroad users, data science professionals, consultants, suppliers and academia come together to examine new and emerging uses of data science analytics in the railroad industry. The 2017 conference looked at Engineering (Track) and Rolling Stock applications on passenger and freight railroads, in the U.S. and worldwide.

To illustrate the scope of this data, Figure 2 (right) shows the daily transactional

volume reported by Railinc at the 2017 Big Data conference. Railinc currently houses nearly 100 Terabytes of data and accommodates 2,500 business customers and 65,000 users. A significant portion of this

Figure 2: Daily Transactional Volume reported by Railinc.

June 2018 // Railway Age 43

TECHNOLOGY FOCUS – MECHANICAL

Figure 1: Traditional Data Analysis and Big Data.

Figure 5: Application of Data Analytics to Improve productivity in Locomotive Maintenance Facility.

Figure 6: Big Data Derived “Actions” at multiple management levels.

44 Railway Age // June 2018

data is railcar (rolling stock) data. When dealing with this large volume of data, it is necessary first to provide access to the data on multiple levels, to include the ability to “drill down” to an individual railcar.

However, access to data, no matter how complex and sophisticated, is not enough; railway managers want “information,” particularly “business information,” which allows railways to make intelligent decisions based on not just the data, but the information derived from this data. Figure 3 (p. 47) illustrates the process of defining the problem and the available data, developing the necessary tools (models), and then deploying these models through interactive data integration and “learning.” This is the “decision support/intelligent software” portion of data analytics illustrated in Figure 1.

Figure 4 (p. 46) presents the process in a slightly different perspective, moving from data acquisition and management to machine learning and analytics, to obtaining real business outcomes that improve operations and provide real value. This increased value can encompass improved identification of “bad actor” railcars, improved equipment failure analysis and associated improved preventive maintenance. Another Big Data conference presentation illustrated this business benefit, specifically the business benefits of improved locomotive shop productivity associated with the application railwayage.com

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TECHNOLOGY FOCUS – MECHANICAL

Figure 4: Road Map Advanced Analytics.

of data analytics in the locomotive shop environment as shown in Figure 5 (p. 44).

In the area of passenger equipment monitoring and maintenance, integrated planning and management systems are

46 Railway Age // June 2018

emerging that monitor condition and operational data from an entire fleet of equipment and provides specific actionable information to managers and maintenance personnel at multiple levels, as illustrated

in Figure 6 (p. 44). This Figure illustrates how analysis of large volumes of data (Big Data Analysis or data analytics) generates useable information and specific actions at four different manager levels. Thus, the

railwayage.com

TECHNOLOGY FOCUS – MECHANICAL Maintenance Planner/Help Desk (second level in Figure 6) analyzes data from train events, rolling stock faults, mileage, inspection data and other individual car and train data and generates preventive maintenance information. An example of this is identification of a car that needs (or will soon need) maintenance This in turn can lead to a specific action such as generation of a work order for this car.

Again, as was noted in the May article, the use of Big Data or Data Analytics has only scratched the surface of the data now available. As railways learn how to more effectively “mine” their data, the data can be converted into information, actionable insights, and specific “actions” to help optimize maintenance management for not only rolling stock but also infrastructure across the entire spectrum of railway operations. The University of Delaware expects even more insightful information to be available in its 2018 Big Data in Railroad Maintenance Planning conference, December 13-14, 2018 at the University of

Delaware’s Newark, Delaware campus. For more information, contact Professor Allan M Zarembski @dramz@udel.edu.

SOURCES • Zarembski, A. M., “Better Railroading Through Big Data,” Railway Age, May 2018.

• Zarembski, A. M. and Attoh-Okine, N., “Big Data in Railroad Engineering: The Challenge of Vast Amounts of Data,” Railway Track & Structures, November 2017 pp. 28-30.

• Kune et al., “The Anatomy of Big Data Computing,” Software Practice and Experience, Vol. 46(1) 79-105.

• Attoh-Okine, N., “Big Data and Differential Privacy: Analysis Strategies for Railway Track,” Wiley, May 2017.

• Herb, Cathy and Veerappan, Ramesh, “From Big Data Platform to Intelligent Data Platform – Hadoop Modernization,” Railinc Corp., 2017 Big Data in Railroad Maintenance Planning Conference.

• Eric Holzer, “Update Rail Case Study,” Leader of Rail Solutions, Uptake,

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1/9/18 12:20 PM

People / 100 years / Events JuLY 9-11, 2018

SALLY LIBRERA NYC Transit

High profile: Sally Librera has been appointed Senior Vice

President-Subways, reporting directly to MTA New York City Transit President Andy Byford. The first woman to run New York City’s 114-year-old subway system, Librera will oversee all aspects of the Department of Subways, including developing and delivering a long-term strategy for modernization and success. In 14 years at NYCT, she has worked in various roles, each with increasing responsibility. Librera most recently served as Vice President and Chief Officer for Subways Operations Support and Vice President and Chief Officer for Staten Island Railway—also the first woman in that position, where she led SIR in delivering safe and reliable daily service, as well as system performance and capital improvements. Also appointed at NYCT was Frank Jezycki as Executive Vice President and Chief Operating Officer-Subways, reporting to Librera.

T

he Senate Banking, Housing and Urban Affairs Committee voted to approve the nomination of Thelma Drake as Federal Transit Administrator. The nomination now goes to the full Senate for a vote.

WSP USA has promoted Maxine Hill to New York City Area Manager for Transportation and Infrastructure. Hill oversees client relations, project performance and overall management of the consultancy’s transportation operations in New York City. She most recently was WSP USA’s project manager for the under-construction Moynihan Train Hall at New York’s Penn Station.

Vincent Gallagher joined HNTB Corp. as Senior Program Manager and Senior Vice President in the firm’s national program management and construction management practice for transit and rail.

John R. Harrison has transitioned to a different role at Willamette Valley

Company after serving for three decades as the company’s CEO and President. Harrison will remain CEO and continue serving as a board member. John Murray, a 38-year WVCO employee, has been selected as the company’s new President. Bob Halligan has been tapped as the company’s new Chief Operating Officer. Rob Loomis will serve as Business Manager of the Performance Products and Railroad divisions.

Kansas City Southern has appointed Michael A. Walczak as Vice President of Mechanical, Maquiling B. Parkerson as Vice President of Labor Relations, and Adam J. Godderz as Associate General Counsel and Corporate Secretary.

Railinc has promoted Joan Smemoe to Chief Information Officer and Vice President of Information Technology. She will be responsible for Railinc’s data, product development and information systems platforms.

AAR DAMAGE PREVENTION AND FREIGHT CLAIM CONFERENCE Gaylord Opryland Hotel Nashville, Tenn. https://www.regonline.com/builder/ site/Default.aspx?EventID=2262635

JuLY 16-17, 2018

Midwest Association of Rail Shippers Summer Meeting Grand Geneva Resort Lake Geneva, Wisc. https://www.mwrailshippers.com/

JuLY 22-24, 2018

American Association of Railroad Superintendents 122nd Annual Meeting Chicago, Ill. https://supt.org/event-2621698 wrailshippers.com/

AUGUST 7-9, 2018

Michigan Rail Conference Saginaw Valley State University Conference Center Saginaw, Mich. http://www.rail.mtu.edu/mrc2018

SEPTEMBER 16-19, 2018 Intermodal EXPO 2018

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SEPTEMBER 18-21, 2018

100 years ago in railway age gazette JUNE 1918

Time is the Important Consideration The shortage of labor for track maintenance is universal. The southwest roads have recruited track laborers almost entirely from Mexicans for a number of years, and have found them satisfactory. This avenue was closed on May 1, 1917, by the alien immigration law, which imposed a head tax and literacy test on all immigrants. [I]t would seem advisable … to lift the restrictions, at least for the duration of the war, in order that the railways may secure the men so essential to their proper operation.

48 Railway Age // June 2018

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Next-Generation Train Control Conference 2018 Le Méridien Philadelphia Philadelphia, Penn. https://www.railwayage.com/ nextgen/

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Products Lightweight, Compact EOT from Siemens New from Siemens Rail Automation is a lightweight, compact and rugged End-ofTrain Device (EOT) designed for high reliability and serviceability.

This EOT features a clear, high-strength, UV-stable polycarbonate dome, allowing for visual access to the High Visibility Marker (HVM) as well as to front and rear displays.

The dome, the manufacturer says, is easy to remove for access to maintenance items, including RF connectors, antennas, memory card, and modem SIM card.

The EOT contains a new manifold with simplified air paths to reduce the risk of clogging and/or icing. It provides a higher exhaust flow rate for faster braking, supports dual-pipe applications, and can be easily reconfigured for continuous generator operation, or zero-leak (no generator).

With the coupler mounting point closer to the center of gravity, new enclosure geometry, and shock-mounted electronics, the EOT provides increased strength and better handling of shock and vibration.

The EOT is easy to maintain, featuring a single electronic-tray design with highreliability connectors. Expanded event logging, a powerful Web-based user interface and continuous self-testing make for an easy-to-use, serviceable device. It also can provide advanced status information through Siemens EOT Phone Home Service.

Railhead Offers Longer Life LED for Locomotives Railhead has introduced the RH-UG6W-75DC, a smaller-profile, universal locomotive LED bulb. The latest-generation universal globe bulb

railwayage.com

Stucki releases updated product guide

A

. Stucki Company announced the release of its newest pocket product guide, a resource for identification, inspection and maintenance of Stucki’s wide range of rail products.

The new 108-page guide covers A. Stucki’s wide variety of wheel bearings, friction wedges, springs, brake beams, yokes, couplers, draft gears, grating products and more.

This is the eighth revision of the guide and replaces the 100-page seventh edition.

Also available are updated versions of three Stucki posters often used by customers for reference —the Stucki Inspection and Maintenance chart, the Draft Systems poster and the Low-Profile Side Bearing Setup Height Measurement chart.

A. Stucki Company, established in 1911, is a leading manufacturer and supplier of railroad industry components, including constant-contact side bearings, resilient friction shoes, hydraulic stabilizers, draft gears and brake beams.

Through its subsidiaries, Stucki also serves the rail and other industries with freight and locomotive component repair and reconditioning services, hot-wound coiled springs, high-quality iron castings, precision CNC turning and milling services and custom-molded urethane products.

More information is available at www.stucki.com.

can be used in place of both traditional step and number board bulbs; thus the supply inventory for both can be combined into one SKU. Operating at 75 volts DC, the RH-UG6W-75DC has a life span of 50,000 hours. Operating temperature ranges from -40 to +70 Celsius, rated at 570 lumens and six watts. Constructed with an aluminum/PVC base, the bulb offers cool white light with 360-degree axial lighting angle.

For more nformation: https://www. railheadcorp.com/.

June 2018 // Railway Age 49

equipment Sale/Leasing

Employment

EMPLOYMENT OPPORTUNITY ANNOUNCEMENT Chief Real Estate & Development Officer NICTD intends to hire a pro-active, team-focused, and enthusiastic Chief Real Estate & Development Officer who will lead and supervise all aspects of the South Shore Line’s real estate and development functions primarily, but not limited to, NICTD’s Double Track NWI and West Lake Corridor Projects. Working in tandem with project managers, project staff, consultants, and other project stakeholders, this person will ensure that all facets of real estate acquisition and management for the Double Track NWI and West Lake Corridor Projects occur on schedule and within budget. Qualifications, job details, and application instructions are at: http://www.mysouthshoreline.com/about/job-opportunities.

WE START IT ALL

Salary and Benefits: Salary is projected between $80,000 to $110,000 based on education, skills, and work history. The benefit package includes full health benefits for the employee and family, vacation, compensatory time, supplemental pension, and other fringe benefits.

The position is eligible for relocation benefits.

3324RR STARTS ENGINES UP TO 3500HP

Deadline to Apply: 5 p.m., June 29, 2018. Apply early; NICTD reserves the option to close this opportunity before the stated deadline.

214RR HEAVY USAGE STARTING RECRUITMENT

3370RR STARTS ENGINES UP TO 6000HP

EDNA A. RICE, EXECUTIVE RECRUITER, INC

FOR MORE INFORMATION VISIT

EDNA A. RICE, President

M

E

R

IC

A

www.STARTPAC.com M

A

D

E

IN

A

OR CALL TOLL FREE 844.901.9987

RAILWAY AGE (8.25x10.75in).indd 1

12/04/2018 09:03

Available for Lease 3000 cu ft Covered Hopper Cars 4650 cu ft Covered Hopper Cars 3600 cu ft Open Top Hopper Cars 4300 cu ft Aluminum Rotary Open Top Gons 65 ft, 100-ton log spine cars equipped with six (6) log bunks 60 ft, 100 ton Plate F box cars, cushioned underframe and 10 ft plug doors 50 ft, 100 ton Plate C box cars, cushioned underframe and 10 ft plug doors

(713) 667-0406 FAX (713) 667-1651 Web address: www.ednarice. com Email: resume@ednarice.com

6750 West Loop South Suite 735 Bellaire, Texas 77401-4111

RailwayAge.com

The News Destination for the Rail Industry

Contact: Tom Monroe: 415-616-3472 Email: tmonroe@atel.com

MARKETPLACE SALES PROFESSIONAL DIRECTORY

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

Kansas City Office (913) 661-2424 oPerAtioNs trAiNiNG & coNsULtiNG: www.tcsrailservices.com • engineer training & CertifiCation other services: • exCellent HiStory witH fra, ntSB • Staffing • interim management • meCHaniCal & part 238(Qmp) 50 Railway Age // June 2018

Contact: Jeanine Acquart Ph: 212/620-7211 Fax: 212/633-1165 Email: jacquart@sbpub.com

ALL MAJOR CREDIT CARDS ACCEPTED

railwayage.com

Ad Index Company

Phone #

Fax #

URL/Email Address

Page #

cit group

212-461-5781

212-461-5632

James.Spencer@cit.com

32

danella rental systems

610-828-6200

610-828-2260

pbarents@danella.com

11

David j joseph company

513-419-6200

513-419-6221

txs@djj.com

26

dixie precast

770-944-1930

770-944-9136

fbrown142@aol.com

10

harsco rail

803 822-9160

803 822-8107

railinfo@harsco.com

3

holland lp

708-672-2300

708-672-0119

rgehl@hollandco.com

41

loram

763-478-6014

763-478-2221

sales@loram.com

15

ltk engineering

215-641-8826

215-542-7676

tfurmaniak@ltk.com

22

messe berlin gmbh

49303038152

49303032778

just@messe-berlin.de

13

ngtc

212-620-7208

conferences@sbpub.com

25

plasser American

757-543-3526

plasseramerican@plausa.com

C2

pnc financial services inc

513-455-9056

robert.hogan@pnc.com

28

Progress Rail A Caterpiller Co

256-505-6402

256-505-6051

info@progressrail.com

31

railquip inc

770-458-4157

770-458-5365

sales@railquip.com

46

rail solutions inc

757-903-4606

757-903-4705

jhusband@railsolutionsinc.com

29

railway educational bureau

402-346-4300

402-346-1783

bbrundige@sb-reb.com

34,45,C3

railway equipment co

763-972-2200

763-972-2900

sales@rwy.com

42

SIEMENS-RAIL AUTOMATION

412-944-6533

AMANDA.WEIR@SIEMENS.COM

23

smbc

312-559-4800

888-RAILCAR

sales@smbcrail.com

33

strato inc

732-317-5406

732-981-1222

KOROZCO@STRATOINC.COM

12

stv group

212-777-4400

212-529-5237

info@stvinc.com

24

town & country crossing

636-227-8226

636-686-9194

jnewman@tccortho.com

9

trainyard tech llc

724-443-8881

724-443-8881

CRA2@ZOONINTERNET.NET

C4

trinityrail

800-631-4420

214-589-8623

trinityrail.com

27

VTG rail

618-343-0600

sales.northamerica@vtg.com

30

757-494-7186

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.

railwayage.com

June 2018 // Railway Age 51

Perspective: Short Line & Regional

New Approach, Same Old Truck Rhetoric

T

he truck size and weight issue is like a bad penny. Every year the big truck lobby is beaten back and every year it returns.

And it’s a classic case of “if at first you don’t succeed” then try a different approach.

For years, supporters of larger truck size and weight said it was all about productivity. Then they tried to sell the notion that bigger trucks were safer and would actually reduce truck traffic. Now under the auspices of their new organization, “Americans for Modern Transportation,” they are wrapping themselves in the cloak of advanced transportation technologies, piggybacking on the allure of autonomous vehicles and advanced fuel technology.

The not-so-subtle implication is that the exploration of smart and adaptive vehicle technologies are somehow intertwined with the need to make trucks bigger. The truth is that the relationship is nonexistent, but the new rhetoric appeals to the notion of progress. Bigger trucks have little or nothing to do with progress.

However Americans for Modern Transportation dresses up its rhetoric, the facts are still the same. Bigger trucks mean more expensive damage to our highways and bridges, more highway congestion, more danger for the motoring public and increasing inequity between what rail pays for its infrastructure vs. the federal subsidy for truck infrastructure.

Our nation’s roads and bridges continue to deteriorate, having received a grade of “D” from the American Society of Civil Engineers (ASCE). The 2017 ASCE report found

58% higher double-trailer trucks have

out-of-service violation rates

52 Railway Age // June 2018

that one of every five miles of highway pavement is in poor condition, and that one in 11 of the nation’s 615,000 bridges are structurally deficient. In Washington D.C., there is significant bipartisan agreement that Congress needs to pass an infrastructure package. The problem is, as always, how to pay for it. Allowing longer, heavier trucks significantly increases highway damage and thus the cost. It’s a classic case of robbing Peter to pay Paul.

A 2016 U.S. Department of Transportation study found that twin 33-foot trailers take 22 additional feet to stop compared to twin-trailer trucks on the road today.

The study also found that double-trailer trucks have 58% higher out-of-service violation rates than single-trailer trucks—a key finding, considering that a 2016 study by the Insurance Institute for Highway Safety found that a truck with any out-ofservice violation was 362% more likely to be involved in a crash. As longer and longer trucks begin to look like trains, it’s time to say that trains belong on the railroad, not on the highway.

A 2010 study conducted by Massachusetts Institute of Technology’s Carl Martland concluded that an increase in truck weight from the current 80,000-pound limit to the 97,000 pounds previously advocated by supporters of bigger trucks would reduce overall rail traffic by 19%. The study found that diversion would result in 8 million more trucks on our roads and bridges—a 56% increase.

While preserving rail traffic is clearly in our self-interest, we are joined by many of the premier national truckload freight companies. In a 2015 letter to Congress, 16 of these trucking companies stated, “Twin 33-foot trailers would have a negative impact on highway safety, accelerate wear and tear on the nation’s highway system, and make it very difficult for small trucking companies, which are the heart of our industry, to compete.”

As it turns out, the subject of bigger trucks is one where both Washington D.C. and the public at large are in agreement.

According to independent public opinion polling, 77% of our nation’s public opposes bigger trucks.

bigger trucks have little or nothing to do with progress.”

The current battleground is the Fiscal Year 2019 Transportation Appropriations bill, where the big truck lobby is piling on in the form of targeted waivers and increases.

The pile currently includes increasing truck weight limits for electric vehicles by 2,000 pounds to accommodate advanced battery weights, and targeted truck length waivers for trucks hauling sugar beets in part of Oregon.

These targeted waivers are particularly insidious, as they are hard to fight individually and ultimately result in a patchwork of exemptions that will cry out for connecting the dots.

Big truck advocates use the appropriations process because every time the transportation authorizing committees who have the appropriate jurisdiction or the full Congress vote on increasing truck size and weights, they vote no.

So, the Congress has spoken, the U.S. DOT has spoken, and the public has spoken.

All in all, isn’t it time to retire this penny for good? You can rest assured that doing so will have no impact whatsoever on advances in self-driving technology or fuel efficiency, and Americans will continue to enjoy the benefits of modern transportation.

LINDA DARR President ASLRRA

railwayage.com

We’re current, are you? FRA Regulations FRA News:

Mechanical Department Regulations A combined reprint of the Federal Regulations that apply specifically to the Mechanical Department. Spiral bound.

Part Title 210 Railroad Noise Emission Compliance Regulations 215 Freight Car Safety Standards Updated 4-3-17.

216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment Updated 4-3-17.

217 Railroad Operating Rules Updated 4-3-17.

218 Railroad Operating Practices - Blue Flag Rule Updated 4-3-17.

221 Rear End Marking Device-passenger, commuter/freight trains

Updated 4-3-17.

Safety Glazing Standards Updated 4-3-17.

Railroad Accidents/Incidents Updated 3-5-18.

Locomotive Safety Standards Updated 4-3-17.

Safety Appliance Standards Updated 4-3-17.

Brake System Safety Standards Updated 4-3-17.

223 225 229 231 232

Mech. Dept. Regs.

BKMFR

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

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4-3-17 7-20-09 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17

BKHORN 222 4-3-17 BKRFRS 224 4-3-17 BKHS BKLSS BKSLI BKSAS BKBRIDGE BKLER

228 229 230 231 237 240

4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17

BKCONDC 242 4-3-17

232 4-3-17

BKBSS

BKCAD

FRA Part #

BKSTC

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40 219 233 234 235 236 238 239

Each

RR Safety Enforcement Procedures & Rules of Practice Track Safety Standards (Subpart A-F) Track Safety Standards (Subpart G) RR Workplace Safety RR Freight Car Safety Standards RR Operating Rules and Practices RR Communications Rear End Marking Device, Passenger, Commuter & Freight Trains Use of Locomotive Horns Reflectorization of Rail Freight Rolling Stock Hours of Service Locomotive Safety Standards Steam Locomotive Inspection RR Safety Appliance Standards Bridge Safety Standards Qualification and Certification of Locomotive Conductor Certification

Brake System Safety Standards

50 or more

30.50

27.45

10.95 10.00 10.50 8.50 10.50

9.86 9.00 9.45 7.65 9.45

6.75 6.25

6.10 5.60

14.75

13.25

7.95 12.50 12.50 25.95 10.50 7.95 14.25

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25 or more

1-1-18 Drug and Alcohol Regulations in 6-12-17 the Workplace

38.95

35.00

4-3-17 4-3-17 4-3-17 4-3-17 4-3-17 4-3-17

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21.50

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25.50

22.95

Update effective

BKTM

Part 213: Track Safety Standards, Subparts A-F 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. 120 pages. Updated 4-3-17.

BKTSSAF

Track Safety Standards, Subparts A-F Order 50 or more and pay only $9.86 each

$10.95

Part 213: Track Safety Standards, Subpart G 49 Part 213, Subparts G. Classes of Track 6 and higher. Softcover.

Spiral bound. 88 pages.Updated 4-3-17.

BKTSSG

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$10.00

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.

74 pages. Updated 4-3-17.

BKWRK

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Bridge Safety Standards FRA Part 237 establishes FRA safety requirements for railroad bridges.

This rule requires track owners to implement bridge management programs, which include annual inspections of railroad bridges, and to audit the programs. Softcover. Spiral bound. Updated 4-3-17.

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Bridge Safety Standards Order 50 or more and pay only $7.15 each

800-228-9670 www.transalert.com

Compliance Manuals BKINFRA18

49 CFR Part 243: Training, Qualification, and Oversight for Safety-Related Railroad Employees Summary: In response to a petition for reconsideration of a final rule, FRA is amending its regulations on Training, Qualification, and Oversight for Safety-Related Railroad Employees by delaying the regulations’ implementation dates an additional year. FRA previously delayed the regulations' implementation dates for one year in a final rule published May 3, 2017 (May 2017 Final Rule).

Dates: This final rule is effective June 26, 2018.

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

38.00 49.95

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

34.00 44.95

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

Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN UP TO $10.00 $4.50 $8.75 25.01 - 50.00 10.78 16.80 10.01 - 25.00 7.92 12.65 50.01 - 75.00 11.99 21.20

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