Railway Age May 2020

M AY 2 0 2 0

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

INFLUENTIAL

RAILROADERS Guiding, Shaping, Inspiring, Leading

Federal Railroad Administrator Ron Batory

RAILINC LOCOMOTIVE REPORT Better Utilization Yields Excess Supply

GRINDING, MILLING, WELDING railwayage.com

August 2017 // Railway Age 1 Extending Steel Rail’s Life

RGT Quick-Deploy Rail Grinder

NOBODY GRINDS MORE RAIL GLOBALLY.

L-Series

RG400

RGS

Learn more at Loram.com Rail Grinding | Ballast Maintenance | Friction Management | Material Handling | Track Inspecting Services

AILWAY GE

February May 20202020

20 FEATURES

11

Influential Railroaders Guiding, Shaping, Inspiring

20

Grinding, Milling, Welding

26

Making 5G a Rail Reality

30

Railinc Locomotive Report

Superheroes of Rail

Europe Under Way. North America?

Fleet Contraction Under PSR

DEPARTMENTS 4 6 8 36 36 37 38 38 39

Industry Indicators Industry Outlook Market People Events

NEWS/COLUMNS 2 9 40

From the Editor Watching Washington Financial Edge

Products Professional Directory Classified Advertising Index

ON THE COVER: Federal Railroad Administrator Ron Batory Photo: AREMA

Railway Age, USPS 449-130, is published monthly by the Simmons-Boardman Publishing Corporation, 88 Pine St., 23rd Fl., New York, NY 10005-1809. Tel. (212) 620-7200; FAX (212) 633-1863. Vol. 221, No. 5. 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© 2020 Simmons-Boardman Publishing Corporation. All rights reserved. Contents may not be reproduced without permission. For reprint information contact PARS International Corp., 102 W. 38th Street, 6th floor, New York, N.Y. 10018, Tel.: 212-221-9595; Fax: 212-221-9195. Periodicals postage paid at New York, NY, and additional mailing offices. Canada Post Cust.#7204564; Agreement #41094515. Bleuchip Int’l, PO Box 25542, London, ON N6C 6B2. Address all subscriptions, change of address forms and correspondence concerning subscriptions to Subscription Dept., Railway Age, PO Box 1407 Cedar Rapids, IA. 52406-1407, Or call toll free (US Only) 1-800-553-8878 (CANADA/INTL) 1-319-364-6167. Printed at Cummings Printing, Hooksett, N.H. ISSN 0033-8826 (print); 2161-511X (digital).

railwayage.com

May 2020 // Railway Age 1

FROM THE EDITOR WFH: We May Need a New Tacitus didn’t themselves for commuters who never “ omans have to go to come ... For the moment, office life is over.

R

a special place to work. Their tablets and styluses were every bit as portable as our own, a feature that elite Romans took full advantage of. Two thousand years ago, Pliny the Younger, an author and lawyer, wrote a letter to his friend Tacitus. He had found, he said, a splendid new method of working. Instead of going about his business at a desk, he had decided that day to combine it with a boar hunt. He sat next to his nets ‘not with boar spear or javelin, but pencil and tablet, by my side.’ After expanding on the pleasure of his method for some time, Pliny concluded that this was a remarkably productive way to work since ‘the mind is stirred and quickened into activity by brisk bodily exercise.’ He concluded by advising Tacitus, ‘Whenever you hunt, take your tablets along with you.’”

So writes Catherine Nixey in “Death of the Office,” in the June/July 2020 issue of The Economist (which, first published in 1843, predates Railway Age by 13 years).

“The coronavirus pandemic has sped up a revolution in home working, leaving offices around the world empty. But what was the point of them anyway?” she notes.

WFH (Work From Home, another new acronym!): This is a potential future that the public transportation industry needs to start thinking about. Nixey doesn’t talk much about getting to the office, but reading between the lines: “This spring, almost overnight, the world’s offices emptied. In New York and Paris, in Madrid and Milan, they ready

Even before coronavirus struck, the reign of the office had started to look a little shaky. A combination of rising rents, the digital revolution and increased demands for flexible working meant its population was slowly emigrating to different milieux.

More than half of the American workforce already worked remotely, at least some of the time. No one imagined that a dramatic spike would come so soon ... As with any sudden loss, many of us find our judgment blurred by conflicting emotions.

Relief at freedom from the daily commute ... is tinged with regret and nostalgia.”

Freedom from the daily commute. If that means not having to sit in a traffic jam as you crawl your way into the city, all the better. But what happens if rail ridership never fully recovers, because the world has changed and people can work just as well—or better—from home? Sure, existing rail infrastructure will need to be maintained to a state of good repair.

Rolling stock will need to be replaced. But multi-billion-dollar capital programs to increase capacity may not be needed.

In a perfect world, many who still need to get to the office and who used to take their cars will leave them at home and use public transportation (here’s where expensive congestion pricing will help). Those who used to commute by rail and can now WFH will free up space for new riders.

But that’s in a perfect world—which doesn’t exist, for now.

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.

Change of address should reach us six weeks in advance of next issue date. Send both old and new addresses with address label to Subscription Department, Railway Age, PO Box 1407, Cedar Rapids, IA. 52406-1407, or call toll free (US Only) 1-800-553-8878 (CANADA/ INTL) 1-319-364-6167. Post Office will not forward copies unless you provide extra postage.

Photocopy rights: Where necessary, permission is granted by the copyright owner for the libraries and others registered with the Copyright Clearance Center (CCC) to photocopy articles herein for the flat fee of $2.00 per copy of each article. Payment should be sent directly to CCC. Copying for other than personal or internal reference use without the express permission of Simmons-Boardman Publishing Corp. is prohibited. Address requests for permission on bulk orders to the Circulation Director.

Railway Age welcomes the submission of unsolicited manuscripts and photographs. However, the publishers will not be responsible for safekeeping or return of such material.

Member of:

SBP 2 Railway Age // May 2020

SIMMONS-BOARDMAN PUBLISHING CORPORATION

AILWAY GE SUBSCRIPTIONS: 800-895-4389 EDITORIAL AND EXECUTIVE OFFICES Simmons-Boardman Publishing Corp.

88 Pine Street, 23rd Fl. New York, NY 10005-1809 212-620-7200; Fax: 212-633-1863 Website: www.railwayage.com ARTHUR J. McGINNIS, Jr. President and Chairman JONATHAN CHALON Publisher jchalon@sbpub.com WILLIAM C. VANTUONO Editor-in-Chief wvantuono@sbpub.com ANDREW CORSELLI Managing Editor acorselli@sbpub.com BILL WILSON Engineering Editor/Railway Track & Structures Editor-in-Chief wwilson@sbpub.com DAVID C. LESTER Managing Editor, Railway Track & Structures dlester@sbpub.com Contributing Editors: David Peter Alan, Roy Blanchard, Jim Blaze, Peter Diekmeyer, Alfred E. Fazio, Bruce Kelly, Ron Lindsey, Ryan McWilliams, David Nahass, Jason H. Seidl, David Thomas, John Thompson, Frank N. Wilner Art Director: Nicole D’Antona Graphic Designer: Hillary Coleman Corporate Production Director: Mary Conyers Production Director: Eduardo Castaner Marketing Director: Erica Hayes Conference Director: Michelle Zolkos Circulation Director: Maureen Cooney 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 Kevin Smith ks@railjournal.co.uk David Burroughs dburroughs@railjournal.co.uk CUSTOMER SERVICE: 800-895-4389 Reprints: PARS International Corp.

253 West 35th Street 7th Floor New York, NY 10001 212-221-9595; fax 212-221-9195 curt.ciesinski@parsintl.com

railwayage.com

Industry Indicators Few Reliable Indicators—Rail Traffic Is an Exception—Are Available The figures in the charts below show traffic throughout March 28. As this issue went to press in late April, the numbers took a serious nosedive, with traffic off upwards of 25% for both carload and intermodal. As for March, a confluence of factors caused weekly average U.S. rail carloads in March 2020 to fall to their lowest level since sometime before January 1988, when AAR data begin. Total U.S. carloads in March 2020 were down 6.0% from March 2019 and down 3.0% from February 2020. Meanwhile, U.S. intermodal volume in March 2020 was down 12.2% from March 2019 (its biggest year-over-year percentage decline since September 2009) and down 6.3% from February 2020.

Railroad employment, Class I linehaul carriers, MARCH 2020 (% change from march 2019)

TRAFFIC ORIGINATED CARLOADS

FOUR WEEKS ENDING MArch 28, 2020

MAJOR U.S. RAILROADS

BY COMMODITY

MAR. ’20

MAR. ’19

% CHANGE

51,801 (+1%)

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

83,982 3,788 36,972 23,509 133,608 49,260 231,277 4,620 13,857 20,413 15,019 14,176 34,391 15,512 58,563 76,983 14,686 30,803 13,842 24,412

82,338 2,872 35,829 23,527 127,727 47,572 274,888 4,545 13,549 21,323 15,312 14,348 38,589 15,890 69,616 87,465 15,633 29,788 13,706 22,304

2% 31.9% 3.2% -0.1% 4.6% 3.5% -15.9% 1.7% 2.3% -4.3% -1.9% -1.2% -10.9% -2.4% -15.9% -12% -6.1% 3.4% 1% 9.5%

Executives, Officials, and Staff Assistants

TOTAL U.S. CARLOADS

899,673

956,821

-6%

332,227

322,834

2.9%

1,231,900

1,279,655

-3.7%

TOTAL EMPLOYEES: 127,867 % CHANGE FROM MARCH 2019: +1%

Transportation (train and engine)

7,568 (–1%)

CANADIAN RAILROADS

Professional and Administrative

TOTAL CANADIAN CARLOADS

10,746 (-1%)

COMBINED U.S./CANADA RR

Maintenance-of-Way and Structures

30,384 (+1%)

Maintenance of Equipment and Stores

22,062 (-1%)

Transportation (other than train & engine)

5,306 (-1%)

Source: Surface Transportation Board

CLASS I EMPLOYMENT, THE “1% FACTOR” Figures released by the STB show Class I total railroad employment actually increased 1% in March 2020, measured against March 2019. Figures of plus or minus 1% have remained constant for more than one year. Four of six employment categories experienced virtually the same percentage drop, 1%, when rounding is taken into account.

This most certainly indicates headcount reductions attributable to PSR. Looking at the bigger picture, total Class I employment has dropped 12.2% over the past 14 months, from 145,592 in January 2018.

4 Railway Age // May 2020

Intermodal

FOUR WEEKS ENDING march 28, 2020

MAJOR U.S. RAILROADS

BY COMMODITY

MAR. ’19

% CHANGE

93,530

935,380

972,331 1,065,841

-26.7% -10.9% -12.2%

1 247,210 247,211

0 281,117 281,117

-12.1% -12.1%

Trailers Containers

68,585 1,114,006

93,530 1,253,428

-26.7% -11.1%

TOTAL COMBINED UNITS

1,182,591

1,346,958

-12.2%

Trailers Containers TOTAL UNITS

MAR. ’20 68,584 866,796

CANADIAN RAILROADS Trailers Containers TOTAL UNITS

COMBINED U.S./CANADA RR

Source: Rail Time Indicators, Association of American Railroads

railwayage.com

TOTAL U.S./Canadian CARLOADS, MAR. 2020 VS. MAR. 2019

1,231,900 march 2020

AILWAY GE

1,279,655 march 2019

Short Line And Regional Traffic Index CARLOADS

BY COMMODITY 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 Stone, Clay and Glass Products Trailers / Containers Waste and Scrap Materials All Other Carloads

ORIGINATED MARCH ’20

ORIGINATED MARCH ’19

% CHANGE

57,889 15,577 26,440 11,542 27,083 8,740 10,527 2,374 19,638 10,366 2,545 2,320 18,977 13,779 39,662 10,448 74,749

48,324 22,369 26,958 10,529 25,364 7,148 8,944 3,227 17,927 11,079 2,790 2,342 18,058 12,328 42,018 10,328 77,666

19.8% -30.4% -1.9% 9.6% 6.8% 22.3% 17.7% -26.4% 9.5% -6.4% -8.8% -0.9% 5.1% 11.8% -5.6% 1.2% -3.8%

Copyright © 2020 All rights reserved.

TOTAL U.S. Carloads AND INTERMODAL UNITS, 2011-2020 (year-to-date through MArch 2020, in millions)

ARE YOU A RAILROAD OR SUPPLIER SEARCHING FOR JOB CANDIDATES?

Visit http://bit.ly/railjobs To place a job posting, contact: Jennifer Izzo 203-604-1744 jizzo@mediapeople.com

railwayage.com

May 2020 // Railway Age 5 RA_JobBoard_1/3Vertical.indd 1

9/30/19 3:16 PM

Industry Outlook FTA Extends PTASP Regulation Deadline

FRA Offering $311.8MM in CRISI Grants THE FEDERAL RAILROAD ADMINISTRATION (FRA) last month issued a Notice of Funding Opportunity (NOFO) for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program.

With funding provided in the Further Consolidated Appropriations Act, 2020, this NOFO will fund up to $311.8 million in freight and passenger rail projects that improve transportation safety, efficiency and reliability as authorized under the Fixing America’s Surface Transportation (FAST) Act. Eligible applications for competitive selection include projects that address congestion challenges, highway-rail grade crossings, upgrade short line or regional railroad infrastructure, relocate rail lines, improve intercity passenger rail capital assets, and deploy railroad safety technology.

The CRISI grant program also directs investment to rural America, with at least 25% of available funds reserved for projects in rural communities.

FRA will consider how projects support key objectives, including enhancing economic vitality; leveraging federal funding; adopting lifecycle accounting; using 6 Railway Age // May 2020

innovative approaches to improve safety and expedite project delivery; and holding grantees accountable for achieving specific, measurable outcomes. Preference will be given to projects where the proposed federal share of total costs does not exceed 50%.

FRA may also consider geographic diversity; diversity in the size of the systems receiving funding; the applicant’s receipt of other competitive awards; and projects located in, or that support transportation service in, qualified opportunity zones.

In addition, $45 million of the $311.8 million is available for projects eligible under 49 U.S.C. 22907(c)(2) that require the acquisition of rights-of-way, track, or track structure to support developing new intercity passenger rail service routes.

Applications for funding under this NOFO are due June 19. FRA is offering webbased training and technical assistance for eligible applicants. For more details about CRISI, visit FRA’s Competitive Discretionary Grant Program webpage, https://railroads.dot.gov/grants-loans/ competitive-discretionary-grant-programs.

IN RESPONSE TO COVID-19, THE FEDERAL TRANSIT ADMINISTRATION (FTA) will give transit agencies more time to meet the requirements of the Public Transportation Agency Safety Plan (PTASP) regulation.

The PTASP regulation requires transit agencies to incorporate Safety Management System (SMS) policies and procedures as they develop safety plans to manage safety risks. The regulation set July 20, 2020 as the deadline for transit agencies to certify that they have established a compliant agency safety plan.

However, with this announcement, FTA is alerting transit agencies that it will provide relief by refraining from taking any enforcement action until Dec. 31, 2020 against agencies that are unable to meet the July 20, 2020 original deadline.

More information about the PTASP requirement is available on FTA’s website, and further information about this announcement is available in the Notice of Enforcement Discretion.

“We understand that many transit agencies are experiencing disruptions to normal operating procedures during the COVID-19 public health emergency and, as a result, we are announcing this flexibility while they work to comply with the PTASP regulation,” said FTA Acting Administrator K. Jane Williams.

“To continue to support the transit industr y during this unprecedented public health emergency, we are offering this flexibility, recognizing the vital role that transit agencies play in the response to COVID-19,” Williams added. railwayage.com

Bogies exceed MILLION-MILE barrier Next-gen INNOVATION Advanced ENGINEERING processes PERFORMANCE-driven solutions HEAVY HAUL rail leaders worldwide

TR AIN FURTHER F R E I G H T | T R A N S I T | D I G I TA L

amstedrail.com

Market SacRT Orders 20 Siemens S700s Sacramento Regional Transit (SacRT) has awarded Siemens Mobility a $100 million contract for 20 new S700 LRVs, the first new order from Sacramento since the late 1980s. The lowfloor LRVs will have low-level boarding at every doorway, a spacious seating design and larger windows. They will feature improved accessibility with wider aisles, built-in storage space for luggage and areas for bicycles. In addition, the vehicles aim to have improved performance and optimized availability provided by condition monitoring, remote diagnostics and predictive maintenance.

WORLDWIDE

NORTH AMERICA

PROGRESS RAIL, a CATERPILLAR company, has signed a contract with PT KERETA INDONESIA (PT KAI) for 36 new EMD® GT38AC freight locomotives, expanding the public railway operator’s existing GT Series fleet. Progress Rail anticipates delivery of the locomotives in late 2021. The new EMD® locomotives will go into service for PT KAI’s South Sumatra coal haulage operations and join more than 50 other GT38AC locomotives that have been operating in this service for PT KAI since 2011.

The CALIFORNIA DEBT LIMIT ALLOCATION COMMITTEE unanimously approved the allocation of $600 million in tax-exempt bonds to go toward the VIRGIN TRAINS USA high-speed rail project between Las Vegas and Southern California.

The Committee approved the bonds to go toward what’s formally known as XpressWest, the $4.8 billion rail project that would run from Victorville, Calif., to Las Vegas.

Internal Revenue Service guidelines allow Virgin Trains USA to market up to four times the amount of the $600 million in bonding authority, for a total of $2.4 billion in tax-free, private equity bonds. This is the second bond approval Virgin has secured in the past few months. In March, the U.S. Department of Transportation approved $1 billion in tax-free private bonds for the project. Both bond approvals are reliant upon all Virgin Trains USA bonds being issued by Sept. 30. If they are not, California will put the $600 million it approved into the state’s new construction pool for affordable housing. In January, the Committee tabled a previous vote on the bond approval to await a Record of Decision from the Federal

8 Railway Age // May 2020

Railroad Administration (FRA) regarding an environmental impact statement. That decision now isn’t expected until later this year, but Committee members were comfortable moving ahead with the approval, since several key federal transportation agencies were involved in the USDOT’s bond approval. The final step to get the longtalked-about train project moving is for Nevada to approve $200 million in bonds from the state’s debt limit allocation, which would allow Virgin Trains USA to market $800 million in bonds. If approved, construction is on track to break ground later this year. Virgin Trains USA is projected to spend $3.25 billion on the project in California, including $2.03 billion on infrastructure work for the project, $650 million on trainsets and $175 million on the California station, set to be constructed on 80 of 225 acres the company plans to purchase near Interstate 15 in North Victorville. The highspeed, intercity rail service between the Victor Valley area and Las Vegas would consist of up to 32 trains daily, each with a 600-rider capacity, that will travel the 180mile corridor in approximately 90 minutes, according to the application submitted to the State of California. railwayage.com

Watching Washington

A Dark and Stormy Night for Labor Talks

I

nto the valley of the shadow of death seem to be marching rail management and labor this round of national wage, benefits and work rules negotiations. Knights of the Round Table—indeed, any table—they are not. So mired are they in the muck of distrust during this COVID-19 crisis, they couldn’t even agree on teleconference negotiations.

Good grief. It’s as if that loveable loser Charlie Brown and his nemesis, crabby Lucy Van Pelt, are negotiating absent the sage advice of wise-beyond-his-years philosopher Linus: “Maybe, it needs a little love.”

Start with the carriers. While management isn’t a popularity contest, it needn’t be an unpopularity contest. As the sides exchanged desires for contract amendments, railroads slapped a federal lawsuit on the unions, demanding crew size be negotiated on a national level rather than railroadby-railroad as historically bargained.

Then there were the optics of Union Pacific imposing harsh new attendance requirements that collided head-on with those workers risking their lives to deliver necessities to a hunkered-down population. And a federal court ruled that BNSF violated a federal whistleblower protection law, ordering it pay some $700,000 to a former employee for retaliation after he reported track safety defects—this on top of a separate court action that BNSF violates federal law by demanding personal information on employee medical conditions.

More broadly, train and engine crews cannot understand why, given advances in artificial intelligence, railroads still struggle to provide accurate information on train

UNION PACIFIC HAS SENT TO WALL STREET

$36B IN DIVIDENDS AND STOCK

BUYBACKS THE PAST 5 YEARS

railwayage.com

line-ups and reporting times, so basic to family-life quality.

Especially irritating is that while railroads seek wage givebacks and sharply increased healthcare cost sharing, the carriers have sent scores of billions of dollars to Wall Street—Union Pacific alone sending $36 billion in dividends and for stock buybacks the past five years. Yet management chief negotiator Brendan M. Branon told labor April 15 that the carriers would not waive cost-sharing for COVID-19 treatment, despite workers’ repeated exposure while performing their tasks.

Given how extensive is the railroad outdoor, coast-to-coast shop floor, supporting an operation rivaling the complexity of a symphony orchestra—and with participant training and expertise similarly rare—upsetting morale is exceptionally dicey right now, especially when seeking to amend multi-year labor agreements that must be employee-ratified.

The labor side, meanwhile, is pursuing demands ignorant of the collapse of the industry’s bedrock coal business, doubledigit declines in traffic generally, the fact that their wages and benefits already have them in the top 5% of the American workforce, and as if the ever-forward march of technology can, or should, be stopped.

Labor is demanding of the Federal Railroad Administration, as if it were an employment agency, that railroads put furloughed workers back on the payroll.

And despite scientific evidence that oneperson crews can be as safe as two in the locomotive cab where Positive Train Control is fully implemented, labor leadership continues to impede attempts to institute fact-developing pilot projects in exchange for career-long income protection for adversely affected workers.

There are points of light. Norfolk Southern, long criticized for housing track maintenance employees in cramped camp cars, is putting them in single-occupant hotel rooms during the COVID-19 crisis.

During a CNBC interview, Kansas City Southern CEO Pat Ottensmeyer emphasized appreciation of employees working during this health crisis. And BNSF publicly commended the commitment of its

labor is pursuing demands as if technology can be stopped.” “essential” work force.

Among conductors and engineers there is growing interest in career-long income protection in exchange for crew-size reduction where shown to be safe. When BNSF conductors rejected that offer in 2014, there was concern—now largely resolved—as to fledgling PTC reliability and safety.

Savvy union members fret their leadership’s opposition to crew size change is self-interest in dues revenue to prop up a union structure—the number of senior officers, general committees and legislative offices—little changed from when hundreds of thousands more paid fees. Another burden is that instead of merging among themselves to create the Eugene V. Debs vision of a single rail union to avoid craft-autonomy squabbles, and leverage political and bargaining strength, most chose to become a weaker tail of larger, nonrail labor organizations like SMART (International Association of Sheet Metal, Air, Rail and Transportation Workers) and Teamsters.

Yes, Snoopy, it appears to be a dark and stormy night.

(Wilner is author of “Understanding the Railway Labor Act,” available from Simmons-Boardman Books, 1-800-228-9670, www.transalert.com.)

FRANK N. WILNER Contributing Editor May 2020 // Railway Age 9

POWERED TO PERFORM

CONGRATULATIONS TO JAMIE BOYCHUK CSX Executive Vice President of Operations and Honored Industry Leader

Jamie Boychuk’s hands-on leadership and extensive operations knowledge are helping CSX set a new standard for rail transportation efficiency in the eastern U.S. By driving the implementation of precise trip plan schedules for carload and intermodal shipments, championing operational enhancements that helped reduce car handlings and balance train flows, and successfully guiding the operating team as they continually deliver record-setting results, Jamie is helping take CSX service to a new level and further positioning the company as the best-run railroad in North America.

2020 Influencers Ronald L. Batory, Federal Railroad Administrator

AREMA

2020

They’re at their best guiding, shaping, inspiring, leading and mentoring, especially where younger peers are concerned. railwayage.com

R

ailway Age is pleased to present the results of its first annual Readers’ Most Inf luential Leaders poll. We asked subscribers, through an online poll, to nominate active (non-retired) people from all areas of the North American railway industry they believe are the most inf luential. Here are the top 10.

READERS’ MOST INFLUENTIAL LEADERS Ronald L. Batory, Federal Railroad Administrator Ron Batory, the 14th FRA Administrator, is widely respected and highly regarded in the railroad industry, Batory began his railroad career in 1971 working as a traveling Freight Car Accounting Auditor for the Detroit, Toledo and Ironton (DT&I) Railroad. He subsequently served in a series of positions with progressively May 2020 // Railway Age 11

2020 Influencers

Jamie Boychuk, Executive Vice President Operations, CSX

John Byrne, Vice Chairman, Committee on Tank Cars, Railway Supply Institute

Wes Edens, Chairman and Founder, Fortress Investment Group

12 Railway Age // May 2020

greater responsibility before joining the Grand Trunk Western Railroad (GTW) in 1981 when it acquired the DT&I. In 1987, Batory became Vice President and General Manager of the Chicago, Missouri & Western Railway, and then in 1989 went to work for the Southern Pacific Transportation Company.

In 1994, Batory was named President of the Belt Railway Company of Chicago (BRC), the largest switching terminal in the U.S. and a vitally important linchpin in the nation’s rail hub, jointly owned at the time by nine Class I’s. His success in serving the needs of multiple competing railroads at the BRC prompted CSX and Norfolk Southern to recruit him in 1998 to manage the partitioning of Consolidated Rail Corporation (Conrail) as part of a merger approved by the U.S. Surface Tr a n s p or t at ion Board. In 2004, Batory became President & Chief Operating Officer of Conrail, the eighth largest freight railroad in America, until his retirement in April 2017.

“Inf luential and effective leaders maintain humility and approachability, recognize their vulnerability, share their institutional knowledge and experience, contribute to others’ needs—in essence be a servant of their organization—and engage themselves in the environment,” Batory says.

Vice President Operations in 2019.

One of Boychuk’s most-impactful contributions has been the implementation of precise trip plan schedules—part of CSX’s Precision Scheduled Railroading implementation—for every carload and intermodal shipment on CSX, supporting the identification of efficiency improvement opportunities that drive network fluidity.

He further championed the development of the Trip Plan Performance tool that is providing CSX customers with up-to-theminute information on rail shipments and supporting their supply chain management decisions. Upon his arrival at CSX, Boychuk had an immediate impact on changes that fundamentally transformed CSX operations—identifying efficiency opportunities that resulted in the closure of multiple hump yards, reduction of intermediate car handlings, balanced train flows, redesign of the service network and field-focused organizational restructuring.

Boychuk’s vision is building on the CSX operating model and helping take it to a new level for serving customers.

John Byrne is an expert on freight railcar design and regulatory compliance.

Jamie Boychuk, Executive Vice President Operations, CSX In 23 years as a railroader, Jamie Boychuk has risen from a conductor in Western Canada to a key leader of CSX’s operational transformation that is setting a new standard for rail transportation efficiency in the eastern U.S. Boychuk joined CSX in 2017 as an experienced executive of the transformation team and quickly demonstrated a combination of extensive operations knowledge and hands-on leadership that led to his appointment as Executive

John Byrne, Vice Chairman, Committee on Tank Cars, Railway Supply Institute An expert on railcar design and regulatory compliance, John Byrne is helping lead the way for safer and more efficient tank car manufacturing. He’s successfully led and represented RSI members to deal with key issues that would have had a significant negative impact on the railway supplier community. He’s a veteran of the rail industry, having started his career in Chicago with North American Car Company, the former railcar leasing firm.

Byrne recently retired from GE Capital after nearly 38 years, most recently as Manager, Regulatory Compliance and Quality. In previous positions with GE, he managed repair facilities, quality management systems, audit programs and f leet product safety. Byrne guided GE Capital’s railwayage.com

Wabtec congratulates

Albert Neupaver Executive Chairman of Wabtec’s Board of Directors

on being honored by Railway Age as one of the rail industry’s most influential leaders.

RailwayAge_Influential Railroader Ad_4.15.2020.indd 1

4/22/2020 4:01:48 PM

2020 Influencers

Warren Erdman, Executive Vice President Administration and Corporate Affairs, Kansas City Southern

John Fenton, President, Patriot Rail

KellyAnne Gallagher, Founding Executive Director, Commuter Rail Coalition

regulatory compliance program for many years, and has represented GE Capital on the Association of American Railroads Tank Car Committee and its various task forces. His experience includes participation in the RSICTC process, serving on Transport Canada’s Tank Car Standard Committee and participating on committees of the Chlorine Institute.

“Being a member of the RSI-QAC has given me the opportunity to interact with John on several occasions,” says Mark Michel, Amsted Rail Greenville Director of Engineering and Quality Manager. “He is extremely knowledgeable of our industry and can navigate the political channels to impact our industry as an agent for change.”

Wes Edens, Chairman and Founder, Fortress Investment Group Wes Edens is the brainchild and catalyst for Brightline, the first new major private passenger intercity railroad in the U.S. in more than a century. Brightline is currently in operations in South Florida, under construction to Orlando, and expanding operations to serve Las Vegas and Southern California. Each system includes multi-billion-dollar rail infrastructure as well as transit-oriented mix-use developments, transforming the way people live and move in the U.S.— offering travel that is faster, more reliable, more productive and more eco-friendly.

In addition, Edens is the cofounder of Fortress Investment Group and founder of New Fortress Energy, and also the co-owner of the NBA’s Milwaukee Bucks, sole owner of eSports team FlyQuest, and majority shareholder of Premier League club Aston Villa.

Warren Erdman brought years of government experience to Kansas City Southern.

Warren Erdman, Executive Vice President Administration and Corporate Affairs, Kansas City Southern Warren Erdman leads a team of 23, spanning three different disciplines of Public 14 Railway Age // May 2020

Relations and Corporate Affairs, Facilities and Security/Police, and Special Services. His career at Kansas City Southern has been filled with much success as he navigated uncharted waters, as a leader at a U.S.-based railroad with holdings in multiple countries (the United States, Mexico and Panama). As a member of the executive committee, Erdman has remained laser-focused and steadfast on the role he played in KCS’ success through fulfilling its vision. Prior to joining KCS in 1997, Erdman had extensive professional experience in the government sector, including serving as Chief of Staff for U.S. Sen. Christopher S. Bond of Missouri for 10 years, as well as Missouri Gov. John Ashcroft in 1985 and Missouri Gov. Bond between 1981 and 1984. This prepared him well to take on the Government Relations and External Affairs position at KCS. Erdman has been instrumental in leading the charge on many external affairs-related matters at the state, local and federal levels through his leadership of KCS’ regulatory affairs efforts and government relations. Throughout his entire career he has been a tireless advocate for all those he served. Whether it was elevating arts within Kansas City or ensuring KCS’ interests were best represented, he’s been—and still is—a force to be reckoned with.

John Fenton, President, Patriot Rail Prior to his current role at Patriot Rail, John Fenton served as CEO of regional/ commuter rail agency Metrolink, which operates 165 trains in the high-density greater Los Angeles area, carrying more than 40,000 passengers daily. At Metrolink, Fenton played a pivotal role in leading the national implementation of the first Positive Train Control (PTC) system mandated by the Rail Safety Improvement Act of 2008.

Fenton’s other prominent senior railwayage.com

C

M

Y

CM

MY

CY

CMY

K

2020 Influencers

Nathan Loftice, Director Environmental Planning, Permitting and Sustainability, BNSF

Tracy Miller, Senior Vice President Operations Southern and Eastern Regions, Canadian Pacific

Albert Neupaver, Executive Chairman, Wabtec Board of Directors

16 Railway Age // May 2020

leadership roles include President and CEO of OmniTRAX and various senior level positions for Waste Management Inc., including Vice President of Operations and Vice President of Service Design. Earlier in his career, Fenton held leadership positions with several Class I railroads, including CN, Kansas City Southern and the Atchison, Topeka & Santa Fe Railway (now BNSF Railway).

A member of the American Association of Railroad Superintendents and a military veteran with service in the United States Navy, Fenton began his railroad career in 1982 as a management trainee with Missouri Pacific Railroad and later moved to Union Pacific after its merger with Missouri Pacific.

In 2013, Fenton was appointed by U.S. Secretary of Transportation Ray LaHood to sit on the National Freight Advisory Committee (NFAC) to assist the Secretary in shaping U.S. transportation policy.

the American Public Transportation Association, where she cultivated and managed key relationships across domestic and international transportation sectors, executed operational oversight for 13 memberconstituted committees, and developed and delivered educational content to the industry. A credentialed association executive, Gallagher began her tenure at APTA by establishing an in-house association management practice and served as executive manager of four professional societies: Women’s Transportation Seminar, WTS Foundation, High Speed Ground Transportation Association, and American Transit Services Council. Her career in non-profit and association management dates to her arrival in Washington. She served on the Federal Railroad Administration Rail Safety Advisory Committee (RSAC) for 14 years, is a member of the International Union of Railways (UIC) High Speed and Regional Rail committees and served as Vice Chair of two UIC World Congresses on HighSpeed Rail.

KellyAnne Gallagher has been involved in many facets of passenger rail advocacy throughout her career.

KellyAnne Gallagher, Founding Executive Director, Commuter Rail Coalition KellyAnne Gallagher is a public transportation policy professional and strategic advisor who, in 2019, became the Founding Executive Director of the Commuter Rail Coalition, a trade association providing a singular focus on the benefits and needs of U.S. commuter railroads.

Prior to CRC, Gallagher served as a member of the New York Metropolitan Transportation Authority’s senior leadership team. While at the MTA, she oversaw the Authority’s federal regulatory interests, identified strategic direction and liaised with the U.S. DOT. In addition, she strengthened MTA’s capacity for benchmarking by partnering with U.S. “legacy” public transportation agencies as well as international peer agencies and associations to facilitate knowledge sharing.

Gallagher joined the MTA after 16 years at

Nathan Loftice, Director Environmental Planning, Permitting and Sustainability, BNSF Nathan Loftice has had a track record of success in environmental and sustainable business management. He was one of BNSF’s Employee of the Year honorees in 2018 for his sustainability efforts to help manage the environmental impacts of waste cleanup and the social and safety aspects of homeless populations. Loftice is the past Chairman of the Association of American Railroads Sustainability Task Force.

Prior to joining BNSF and the rail industry, Loftice spent most of his 27-year career in transportation and supply chain logistics with FedEx, where he served as Senior Manager of Global Supply Chains & Worldwide Leader of Environmental Affairs & Sustainability, receiving FedEx’s highest honor, the 5 Star Award. railwayage.com

CONGRATULATIONS to Kansas City Southern EVP Administration & Corporate Affairs

Warren Erdman for being selected one of Railway Age’s

10 MOST INFLUENTIAL INDUSTRY LEADERS

kcsouthern.com

2020 Influencers “I’m a product of those with whom I’ve associated throughout life. That is why I often say at FRA, it is from you, about you and ultimately for you. In essence, I truly serve the people.” — Ron Batory

The efficiency CP is seeing today would not be possible without people like Tracy Miller .

Tracy Miller, Senior Vice President Operations Southern and Eastern Regions, Canadian Pacific With 25 years of Class I operations experience, Tracy Miller consistently enhances the efficiency of the operation by looking at every single move that is made and considering the impact in the larger picture.

He’s able to create efficiencies by changes

Connect to an exciting career at cpr.ca/careers 18 Railway Age // May 2020

railwayage.com

AREMA

The CP family congratulates Tracy L. Miller for being named a top 10 Reader’s Most Influential Leader.

2020 Influencers to switching operations, reiterating the importance of following the plan, changing the plan when it isn’t as efficient as it can be, and so much more.

The combination of Miller’s extensive railroading knowledge and solid operating background enhances Canadian Pacific’s leadership team’s bench strength, and bolsters the company’s long-term people development and operating goals. He does this all while treating everyone with respect and dignity.

The efficiency CP is seeing today would not be possible without people like Miller, as everyone has a desire to be more efficient and respectful. He has the buy-in and discretionary effort from his entire team. Miller started at CP as Vice President of Corporate Risk U.S. in March 2019; earned the Vice President of Operations - Southern Region title in July 2019; and has been SVP Southern & Eastern Region since September 2019.

Albert Neupaver, Executive Chairman, Wabtec Board of Directors

railwayage.com

Al Neupaver has led Wabtec through its greatest growth period, to a Fortune 500 company.

Al Neupaver joined Wabtec on Feb. 1, 2006 as President and CEO, and a member of the company’s Board of Directors.

Neupaver has led Wabtec through its greatest growth period, to presently $11 billion and an NYSE Fortune 500 corporation. Mergers and acquisitions during Neupaver’s time include Standard Car Truck (2008), Faively Transportation (2016) and GE Transportation (2019).

Neupaver championed LEAN approaches, reduced waste, added value, exemplified passion for new product development and supported V-ETMS PTC on all classes of railroad implementation and communication. He was named Executive Chairman on May 14, 2014. On May 10, 2017, Neupaver assumed the role of Chairman of the company’s Board of Directors. Prior to joining Wabtec, he spent nine years as president of the Electromechanical Group of AMETEK, Inc. Under Neupaver’s leadership, the Electromechanical Group increased its operating profit by almost 60%, more than twice the rate of its sales growth.

Neupaver joined AMETEK in 1988 as Vice President and General Manager of its Specialty Metals Products Division.

Prior to AMETEK, Neupaver spent 11 years with Pfizer, Inc. in several engineering, operating and business management positions. He served in the U.S. Naval Reserves for 25 years and retired as a Captain in 2002.

May 2020 // Railway Age 19

T

here’s a reason why Superman is referred to as the Man of Steel. The high-tensile alloy is strong yet modifiable.

It serves as the foundation of Clark Kent’s alter ego, as well as the foundation of the rail industry. So it doesn’t take a railroader X-Ray vision to see that extending the life of steel rail by as much as 10 times is a

20 Railway Age // May 2020

solid idea. Rail grinding, milling and welding all can do just that. In addition, they’re excellent ways to reduce surface defects, increase fuel savings, move heavier loads and support faster train speeds.

GRINDING First up is grinding, which is essentially “modifying the rail profile through its

optimum profile so that it meets with the wheel at the proper contact area,” according to Dereck Bartz, Global Product Manager for Rail Treatment, Harsco. “There are a lot of things that can affect the wheel/rail interface, things like worn wheels—not all wheels are brand new and not all wheels are at condemnable limits—but there is a variety in between those two spectrums. railwayage.com

Harsco

M/W

M/W

SUPERHEROES OF RAIL Grinding, milling and welding can extend the life of steel rail up to 10 times that of untreated rail.

BY ANDREW CORSELLI, MANAGING EDITOR

And then you’re essentially finding the sweet spot of the right rail profile so that you have proper contact in the proper place.”

Bartz says that the process works thusly: Service providers measure rail at various parts of track—tangent rail, curved rail, degree of curvature, etc.—and then take measurements of a typical wheel profile to get a number of wheel samples that the railwayage.com

customer has and try to develop what the average wheel profile is in their fleet.

“And then we work with our Protran group to take that information and run it through our computer simulation, and it produces profiles of what the desired rail profile should be in order to have the proper contact,” Bartz says. “We then use a grinder to shape the rail head to that profile.”

Though it depends on GTMs (gross tonmiles) and the type of rail—light-duty, heavy haul, etc.—Bartz estimates that “it’s pretty safe to say that, over the years, grinding has extended rail life anywhere from three to 10 times over the life of rail that doesn’t undergo grinding.”

Orgo-Thermit, a Goldschmidt Company, is in its eighth year of performing rail grinding with its VM8000 on/off track two-way vehicle. The New Jersey-based welding products and services provider agrees that grinding can add life to the track, but not just worn rails. “Performing rail grinding after the installation of new track is immensely important as the removal of rust and mill scale is the best method to prepare the rail for revenue service,” the company notes.

Maintenance equipment and services provider Loram has its own method for grinding, which serves heavy haul, international, specialty and transit railroads.

“Before any grinding happens, Loram collects all the necessary data,” Loram tells Railway Age. “This includes the size of the railroad, rail specifications and the track time available for maintenance. After the data is collected, Loram analyzes the data sources relating to rail wear, rolling contact fatigue (RCF) and defect generation to help understand any trends that may cause different areas on the railroad that require more or less grinding. This then helps to create the overall grind program.

“The data is then used to determine the appropriate size and number of grinders needed to adequately maintain the system.

Schedules are created to move the equipment through the railroad’s network to help maintain the entire system at the optimal grinding intervals, which maximizes the efficiencies of the equipment and realizes the greatest rail life savings. A Rail Inspection Vehicle (RIV) is then used to inspect the track to determine the work requirements needed to restore optimal rail profile shape and remove RCF. After the RIV generates a custom grind plan, the grind plan is then executed.”

Loram adds that it has upgraded to its RG400 Series Railpro™ software program, which features added pattern combinations and lets the user control speeds and passes based on real-time machine and rail conditions, and can precisely schedule point-topoint network grinding.

May 2020 // Railway Age 21

GRINDING IS IN OUR

DNA

For over a half century, Harsco Rail has been a leader in rail grinding by creating optimal wheel and rail contact, while prolonging the lifespan of the track. The RGH20C Grinder can effectively grind switches, guarded curves, and road crossing, and is available in various gauges, including an adjustable gauge version.

Learn how our customized grinding solutions can enhance your business’ performance with industry leading speed at a low overall cost.

(803) 822 9160

railinfo@harsco.com

harscorail.com

Keep your rails perfectly maintained with

LINSINGER high performance rail milling technology

Trust the Inventor www.linsinger.com

Progress Rail

Progress Rail’s welding division offers a full suite of equipment that services the rail welding industry, and in North America it manufactures and provides service for both fixed-plant and mobile welding.

MILLING “Milling is a rotational cutting process and has many benefits of its own,” Dr. Richard Stock, Milling Technology Manager, Linsinger Austria, tells Railway Age. “In essence, the rail material is cut out of the rail surface via a spark- and dust-free process. The temperature on the rail surface elevates only slightly—300-320 degrees Celsius vs. if you’re doing a grated process, like with grinding, where the surface temperature can reach 800-900 degrees Celsius, causing some unwanted material transformation.”

“Milling allows for a variable metal removal capability, so we can remove very little material in one milling pass, like 0.1 mm,” Stock says. “Depending on the milling machine, you can remove up to 5 mm in one pass, measured from the highest point at the top of the rail. If you look at the gauge corner, depending on the position, you can even remove more. But then again, these are very general numbers. It depends on the specific condition that you have.

“With milling, you create a very precise profile over the relevant area. You can go from the field side to the gauging point or even further down if you need to do some gauge-widening. Milling also creates a very precise longitudinal profile. Any longitudinal deviation can be corrected to a high-quality level. The result is a high-quality surface.

“The chips that we generate are collected onboard the machine, which is equipped with a suction system that removes them from the rail and stores them on the machine. This adds environmental value.” railwayage.com

Stock adds that in a fire-sensitive environment, milling is still possible. Also, he says milling can extend the life of tracks by anywhere from seven to 10 years before more work is needed. “For example, when the brushfire season in Australia was at its peak, all the grinding trains had to stop, but our milling machines were still allowed to operate despite a total fire ban,” he says.

According to Stock a few things need to be considered with rail milling. One is that “for the rail profile that you generate, it’s fixed by the milling tool. One set of milling tools will create one specific rail profile, very precisely. If you need to change from one rail profile to the other you can just switch the milling tools, which can be done in less than 10 minutes. Main line rail milling machines are equipped with multiple tools per rail, allowing a profile change on the fly.”

As well, the passing speed is slower compared to other maintenance technology, “which can be something between 400m an hour up to 2km an hour, depending on machine size and how much and what you need to do,” Stock says. “It comes down to your specific defects: how much metal you need to remove, do you need to remove steeper defects, etc.”

Linsinger Maschinenbau GmbH Dr. Linsinger Straße 23-24 4662 Steyrermühl Austria Tel: +43 7613 8840 E-Mail: office@linsinger.com

WELDING Laser welding has been developed to repair surface defects of special trackwork, namely manganese steel components such as frogs and crossing diamonds, Holland LP, an engineering-based company servicing the railroad and related industries, tells Railway Age. May 2020 // Railway Age 23

M/W Traditional repairs of manganese trackwork use wire or stick MIG welding. Thermite welding is used for joining rail and for internal head defects, so their applications are very different, Holland says. Laser welding has the potential to repair surface defects on rail but has not yet been proven.

The advantage of laser welding over MIG welding is significantly lower heat input, which allows for faster repairs, at the same time protecting the base material from damage by excess heating. Laser welding is also robotically controlled, providing significantly better interpass layers for lower porosity. The result is not only faster repairs, but also longer-lasting repairs.

Flash butt welding (FBW) is another option. Used in many different applications because of its productivity and reliability in achieving a reliable welding result, “you basically use a metal pairing to make the weld,” Chuck Ewing, VP International Track and Track Services, Progress Rail, tells Railway Age. “We’re not introducing any external metals, any inserts, any

powder, any mixture to make our weld.

We’re heating the rail into an almost liquid state and then we’re forging the rail together. Its pros are speed: A FBW cycle is about three minute. Our closest competitor would be thermite welding, which is about a 15- to 20-minute process just to complete one weld; whereas you can complete basically 10 to 15 welds an hour depending on how fast you can get the weld. An FBW will last basically the lifetime of the rail.”

Progress Rail’s welding division offers a full suite of equipment that services the rail welding industry, and in North America it manufactures and provides service for both fixed-plant and mobile welding. And it provides equipment on a global scale as well.

Holland provides thermite, flash butt and laser welding solutions for customers. The company manufactures its own mobile FBW equipment with its proprietary Intelliweld™ control system that “has low-consumption weld capability, real-time weld monitoring, control and diagnostics, and real-time automated data collection, weld parameter

TRUCKS AND EQUIPMENT FOR ALL YOUR RAIL AND TRANSIT NEEDS. 24 Railway Age // May 2020

certification, charting and archiving.”

“Our FBW technology and trained welders provide the highest level of quality welds, demonstrating an unequaled quality performance of 5.5 sigma,” Holland says.

“In addition to laser welding, Holland has developed a carbide, spark-free cutting saw that distresses the rail to eliminate torch cutting and eliminates the risk of fires from abrasive saw sparks.”

THE FUTURE Grinding, milling and welding’s future is ripe for further development. Holland notes that it is in the process of developing other new technologies aimed at improving safety and quality, and reducing operating costs for the railroad industry. Stock tells Railway Age that Linsinger will put a strong focus on the North American market in the coming year.

Harsco’s Bartz thinks the market “has been going in the direction of more and more measurement and more and more data. I think 20 years ago when you talked about rail grinders, you talked about

RENTAL SYSTEMS, INC. PHILADELPHIA 800.969.6200 DENVER 800.713.2677 DANELLA.COM/RENTALS railwayage.com

M/W horsepower, metal removal and its speed.

All of those things are still very important. However, it isn’t all about just taking a whole bunch of metal off the rail. We can grind it off, but we can’t put it back on.”

Jacob Alexander, Director of OperationsMobile and Track Welding, Progress Rail, notes that his company is currently in the final stages of engineering and testing a 200-ton AC weld head that does not require an external puller. “We think there are a lot of benefits to having an external weld head that doesn’t require a puller. It reduces pinchpoints and takes the operator out of the line of fire between the two pieces of equipment.”

Orgo-Thermit says that its latest technological offering—DARI (Data Acquisition for Rail Infrastructure)—is “a first-of-itskind, cloud-based service used for storing weld data that is created from the use of digital products such as the SmartWeld Record, SmartWeld Jet and RailStraight Compact. The result of using these tools is a weld report that contains information about all aspects of the weld itself—its

Holland manufactures its own mobile FBW equipment with its proprietary Intelliweld™ control system.

location and those who were involved with the rail maintenance. This information is stored within the cloud solution and visible to welding supervisors, project owners and anyone else who may have a vested interest

in the outcome of the project … The database generates a map of the project so field welds can be easily identified, and respective information pertaining to each weld can be revisited in a matter of seconds.”

Put advanced communications and IoT to work for your railway Make rail travel safer, more efficient and more dependable with networking, cybersecurity, IoT and analytics solutions that are trusted by mainline and metro operators worldwide.

All aboard. All connected. Allwhere.

Holland

Visit us at nokia.ly/34XskKm to learn more railwayage.com

May 2020 // Railway Age 25

COMMUNICATIONS & SIGNALING

MAKING 5G A RAIL REALITY

5

BY KARSTEN OBERLE, HEAD OF RAIL, NOKIA ENTERPRISE TEPS DIVISION G wireless communications will be a big part of the railway industry’s future. 5G systems will provide many new capabilities, higher reliability, lower latencies and ultra-broadband connectivity to support many new and important applications. But making 5G a reality and moving on from GSM-R or other legacy radio technologies is complex.

The questions are, how soon, and what is the best route to get there? There are different aspects of the transition to consider.

The railway industry has long used wireless 26 Railway Age // May 2020

communications as part of its essential infrastructure. Originally specified in 2000, GSM-R has been the most prevalent system outside of North America, used on more than 13,000 route-miles on a daily basis, worldwide. But, as it is based on 2G+ mobile technology, GSM-R is getting a bit long in the tooth, especially as mobile network operators are now moving from 4G to 5G in most of the world.

In North America, there have been a variety of wireless technologies, with VHF and UHF still being used for voice communications. In the U.S., for example, Positive Train Control (PTC) uses the 220 MHz band, and Locotrol

(for Distributed Power) uses 900 MHz. With this in mind, the UIC, the railway standards-setting organization for just about everywhere globally except North America, is developing a standard that would replace many of these systems. It’s called the Future Railway Mobile Communications System (FRMCS).

While the vision for FRMCS is to be functional without stipulating a particular technology, it is evident that 5G will be its foundational communications technology. Previous technologies such as GSM-R will be migrated to FRMCS. However, FRMCS is not merely a replacement for GSM-R, as it will introduce railwayage.com

COMMUNICATIONS & SIGNALING releases will contain many of the features to support industrial applications, including European Train Control System (ETCS) data and automatic train operation (ATO).

Europe’s railways are moving toward a new 5G-based communications standard, FRMCS. North American railways should take a close look.

new capabilities such as support for smart maintenance, virtual coupling and monitoring of trackside components, among others.

5G IS COMING The transition from GSM-R to FRMCS is expected to begin in 2025 and continue through 2035. The first national trials for the new system will only begin in 2024. In the meantime, where does this leave railways in terms of implementation?

The 5G communications standard, as set by 3GPP (3rd Generation Partnership Project, the mobile industry standards body), is a bit of a moving target, which can make things confusing for those outside the telecommunications railwayage.com

industry. First, there are two versions of the standard, 5G Non-Standalone (NSA) and Standalone (SA). NSA operation is aided by existing 4G infrastructure.

This year, many mobile network operators are launching 5G services based on 5G NSA. This will provide new, higher-broadband services for consumers—think better video on smartphones—but it does not make the more complex changes needed in the network core that will be required for 5G SA. The FRMCS railway standard will be based on 5G SA, which will not be fully defined until two future releases (R.16 and R.17) are agreed upon by the 3GPP. Thus, 5G SA is not expected much earlier than 2023. These two future

HOW BEST TO GET THERE? Do railways have to wait until 2025 to begin the move to 5G? Not necessarily.

There is a long way to go from GSM-R’s 2G+ technology to 5G, and a few things have changed over the intervening decades.

Most notably, 4G/LTE, being a full IP (Internet Protocol) packet-based radio technology, provides a compelling phase for all mobile network operators to modernize their transmission networks and backhaul to IP networking.

This means that, for many railways, they can prepare for the move to 5G by upgrading their transmission network to IP/MPLS (Multi-Protocol Label Switching), and putting in more bandwidth in terms of optical, microwave and Ethernet. This will enable them to support new applications, such as multimedia broadband services, or CCTV security multicast services immediately, and with the same resilience and predictability of TDM (TimeDivision Multiplexing) systems.

Those outside of Europe, who have less dependency on cross-border interoperability (which was one of the foundation principles to the adoption of ERTMS, European Rail Traffic Management System, for all European Union Member States), can also go directly to LTE/4.9G on the wireless side. By enabling the replacement of GSM-R or other legacy systems as they choose, this allows them to start implementing new use cases and testing new systems.

Advanced LTE, also known as 4.9G or pre-5G, can already support many of the mission-critical features needed by railways, including higher data rates and low-latency automation. Such a transmission network could support either LTE/4.9G now or 5G in the future.

STAGED TRANSITION For some railways, this may be the preferable route to 5G, because by breaking the transition into stages, it relaxes the adoption curve for operations. Breaking it into smaller chunks spread out over 10 or 15 years will be less costly and mitigate the overall risk.

Another step in this process would be to May 2020 // Railway Age 27

COMMUNICATIONS & SIGNALING deploy a cloud-native core network. Cloudnative, virtual networks have many advantages, including the ability to scale quickly and assign resources to any application based on its explicit use case requirements. It makes the network extremely flexible and far easier to evolve, depending on future requirements.

However, virtual networks are softwaredriven and require different skill sets for the network operational team. In other words, they also have their own learning curve and transition period, which may be better to confront sooner rather than later.

Once the IP/optical transmission network and cloud-native core are in place, adopting full 5G SA would involve some small modifications to the core, and installation of new 5G radios. It’s important to understand that, except for the LTE radio network, all three of these pieces will be required to support 5G SA, even if railways do decide to do it all at once.

And the LTE network might be usable for a decade or more, with 5G SA only being implemented where specific use cases demand and

the LTE network continues to be used where it meets many of the basic requirements.

However railways choose to get there, 5G-based FRMCS offers a major opportunity to transform for the better. Combining high speed and extreme traffic handling capacity, together with ultra-low response times, high reliability and support for massive machine type communication (IoT), it will allow railways to improve safety, optimize costs and make their services more attractive. Its capabilities will make the telecommunications network the cornerstone of the railways’ ambitions for digital transformation.

Karsten Oberle received a Dipl.-Ing. (FH) degree in communications engineering from the University of Applied Sciences “Fachhochschule für Technik,” Mannheim, Germany, in 1998. In the same year, he joined the Alcatel Research Center in Stuttgart and worked for Bell Labs Research in various positions until 2015. Oberle acts globally as Head of Rail within Transportation Sales in the Nokia Enterprise TEPS (Transportation, Energy and

Public Sector) Division. He is responsible for expanding Nokia’s business in the Railway Sector with current focus on the Future of Rail Communication (e.g. FRMCS, 5G), on cybersecurity for railways and IoT & Analytics (Internet of Things) for Railways. This includes building and managing new sales programs, steering of global business development activities and guiding regional sales and marketing teams on customer engagements.

Karsten Oberle

Keeping your track healthy Pandrol’s Head Wash Repair welding process provides a cost-effective and efficient solution to repairing railhead defects and significantly decreases the maintenance cost of rail networks.

For more information contact us at info@pandrol.com pandrol.com

28 Railway Age // May 2020

railwayage.com

RAILROAD STRONG RESILIENT, RESOURCEFUL, FOCUSED, ESSENTIAL

In the midst of the greatest public health crisis in modern times, the railway industry, an essential service, continues to do what it does best, moving products and people to where they’re needed most. A committed, motivated work force is helping to keep the economy afloat.

AILWAY GE PHOTO BY: BRUCE KELLY

RAILINC LOCOMOTIVE REVIEW 2020

STEADY STATE

BY DAVID HUMPHREY, PH.D., SENIOR DATA SCIENTIST, RAILINC CORP.

R

ailinc’s analysis of the North American dieselelectric locomotive f leet reveals that the size of the total f leet decreased slightly in 2019. Detailed analysis reveals the following trends: • At the end of 2019, the locomotive f leet totaled 39,125, down 393 units from 2018 (see Figure 1).

30 Railway Age // May 2020

• The average age increased 0.7 years, to 27.3 years, and the median age increased 0.2 years, to 23.0 years. This was the 10th consecutive year the average and median ages increased.

• Most new additions to the f leet since the mid-1990s have been six-axle locomotives with a horsepower rating of 4,000 or higher. Locomotives with alternating current traction motors (AC units),

which perform well at hauling heavy loads, account for the majority of new additions to the f leet in the past decade.

And locomotives with the highest fuel capacity—more than 4,500 gallons— make up the largest percentage of the f leet.

Since Railinc began reporting on locomotives, the size of the locomotive f leet railwayage.com

William C. Vantuono

A slight decrease in 2019 reflects an excess supply of locomotives due to industry utilization improvements.

RAILINC LOCOMOTIVE REVIEW 2020

Figure 1: In 2019, the locomotive fleet continued its decline, decreasing by 393 units to 39,125 units, for a growth rate of –1.0%.

Figure 2: About 244 new locomotives joined the North American fleet in 2019, up from 164 the previous year.

has increased each year. This ended in 2018, when the locomotive f leet decreased by three units. In 2019, the locomotive f leet continued its decline, decreasing by 393 units to 39,125 units, for a growth rate of –1.0%, down from the previous year’s growth rate of 0% (see Figure 1).

NEW ADDITIONS TO FLEET REMAIN LOW About 244 new locomotives joined the North American f leet in 2019, up from 164 the previous year (see Figure 2). It was railwayage.com

the third consecutive year that the f leet added fewer than 300 new units.

Historically, the average age of the f leet and the number of locomotives added to the f leet mirror the economic environment. When the economy is strong—as in the mid-1990s and mid-2000s—and there are more railcars in service, the average age is lower and the f leet tends to grow.

During periods of recession, fewer new locomotives join the f leet. However, the decrease in 2019 ref lects an excess supply of locomotives due to industry utilization improvements.

As new locomotives join the f leet each year, larger railroads move older units to less-demanding roles, sell them to regional and short line railroads or make them available to be

rebuilt or refurbished.

A locomotive has a long service life and can be used in a variety of ways over that time. It can make long hauls during its first decades of service. Then, it can work on regional and short line railroads in middle age. Finally, it can perform lighter duty service—such as moving railcars in a yard—at 60 or 70 years old.

AC UNITS CONTINUE GROWTH DC traction locomotives make up 64% of the North American f leet, down one percentage point from the previous year. The share of AC traction locomotives has increased 10 percentage points since 2009 as more AC units join the f leet (see Figure 3).

Although DC diesel locomotives May 2020 // Railway Age 31

RAILINC LOCOMOTIVE REVIEW 2020

Figure 3: The share of AC traction locomotives has increased 10 percentage points since 2009 as more AC units join the fleet.

continue to make up close to two-thirds of the North American f leet, AC locomotives have dominated among additions in the past 12 years. Only 39 DC units were added in the past two years, and in the past six years, about 94% of all new locomotives were AC units.

Locomotives with a horsepower rating of 4,000 or higher continue to make up the majority of the North American locomotive f leet. These locomotives comprised 56% of the f leet in 2019 (see Figure 4).

As a percentage of the f leet, locomotives between 2,000 and 3,999 horsepower

comprised 32% in 2019, down from 38% in 2009.

The f leet does continue to add lowerhorsepower locomotives, though at generally decreasing rates. These lowerhorsepower additions to the f leet are made up of rebuilt locomotives and new units used as switcher locomotives.

Locomotives with a horsepower rating of 4,000 or higher dominate among AC locomotives, which tend to be newer.

Overall, there are about twice as many DC locomotives in the North American f leet than AC units. However, DC units are more evenly distributed by horsepower rating—and locomotives with horsepower ratings of less than 4,000 make up the largest share.

Six-axle locomotives make up 69% of the North American locomotive f leet, the ninth consecutive year of no change.

Six-axle locomotives distribute the weight of a locomotive to the rails across more wheels and deliver tractive effort through more wheels and traction motors.

GET THE INSIDE SCOOP ON & OFF THE TRACK

RAIL BRIEF

The Weekly RT&S Email Newsletter Subscribe at: www.rtands.com/RailBrief

32 Railway Age // May 2020

railwayage.com RTS_RailBriefAd_QuarterPage_Final.indd 1

1/9/18 12:20 PM

SIT AND LISTEN William C. Vantuono Railway Age

Bill Wilson

Railway Track & Structures

Railway Age, Railway Track & Structures and International Railway Journal have teamed to offer our Rail Group On Air podcast series. The podcasts, available on Apple Music, Google Play and SoundCloud, tackle the latest issues and important projects in the rail industry. Listen to the railway leaders who make the news.

Kevin Smith

International Railway Journal

Podcasts are available on Apple Music, Google Play and SoundCloud

RAILINC LOCOMOTIVE REVIEW 2020

Figure 4: Locomotives with a horsepower rating of 4,000 or higher continue to make up the majority of the North American locomotive fleet.

The majority of six-axle locomotives were built in the past 30 years.

Locomotives with fuel capacity of more than 4,500 gallons make up 55% of the North American f leet.

This share has grown in recent years, while the share of locomotives with

fuel capacity between 3,500 and 4,500 gallons continues to decrease (down six percentage points since 2009). This is consistent with the recent trend of the f leet adding new high-horsepower, six-axle locomotives, which have larger fuel tanks.

ROAD UNITS AND SWITCHERS To distinguish locomotives used in road service from those used in switching service, Railinc has applied the following definitions: • A road unit is a locomotive with six axles and a horsepower rating of 2,500 or higher.

• A switcher is a locomotive with four axles and up to 2,500 horsepower.

Road units make up 67% of the North American locomotive f leet, while switchers account for about 22% of the population. Locomotives with four axles and a horsepower rating higher than 2,500 make up 9% of the f leet. However, the rail industry shifted away from making this locomotive type in the mid-1990s, and most additions of this type are refurbished units.

Railinc is a wholly-owned subsidiary of the Association of American Railroads. For more information, visit www. railinc.com.

>250K FLASH-BUTT WELDS ANNUALLY >99% WELD QUALITY PERFORMANCE >98% EQUIPMENT UPTIME INTELLIWELD™ CONTROL SYSTEM WITH REAL-TIME WELD MONITORING, CONTROL AND DIAGNOSTICS

hollandco.com #HollandLP 708.672.2300

34 Railway Age // May 2020

railwayage.com

The Railway Educational Bureau BOOKS - Railroad Resources -

American Steam Locomotives, Design and Development, 1880-1960

Your Guide to Railway Signals

by Frederick J. Aubertin Your Guide to Railway Signals is an excellent guide for training signal personnel especially railway cross-function managers, supervisors, and support personnel. High-quality graphics and diagrams have been used throughout this book.

Complies with all standards and commonly used practices. includes chapters on Track Circuits, Basic Crossings, Gate Crossings, Microprocessor-Based Crossings, Switch Circuit Controller (SCC) and Electric Locks, Switch Machines, Relay-Based and Processor-Based CTC, and Testing Locking Circuits Soft cover, 370 pages.

BKYGRS

$99.95

by William L. Withuhn For nearly half of the nation's history, the steam locomotive was the outstanding symbol for progress and power. It was the literal engine of the Industrial Revolution, and it played an instrumental role in putting the United States on the world stage. American Steam Locomotives is a thorough and engaging history of the invention that captured public imagination like no other, and the people who brought it to life. Hard cover, 464 pages.

BKASL

$40.00*

Last Train to Texas

by Fred W. Frailey Midnight train rides, head-on freight collisions-there is never a dull moment when it comes to trains.Take a look at America's biggest railroads and meet the thunderous personalities who operate them. In Last Train to Texas, Author Fred W. Frailey examines the working behind the railroad industry and captures the incredible true stories along the way. Filled with humorous anecdotes and thoughtful insights, Last Train to Texas is an adventure in every sense of the word. Hard cover, 232 pages.

BKLAST

$32.00*

General

Freight Car

Track

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

The Double Stack Container Car Manual • BKDOUBLE • $19.50

Basic Principles of Track Maintenance • BKTMB • $140.00

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

Mechanical Department Regulations • (Parts 210, 215, 216, 217, 218, 221, 223, 225, 229, 231, & 232) • BKMFR • $29.95 Train Wreck: The Forensics of Rail Disasters • BKTW • $31.95* Chicago: America's Railroad Capital • BKCARC • $40.00* The Railroad: What It Is, What It Does 5th Edition • BKRRNN • $46.95 Emergency Responder's Guide to Railroad Incidents • BKERGRAIL • $33.00* The Great Railroad War: United States Railway Operations During World War I • BKWAR • 25.00* Operations Managing Railroad Transportation • BKMRT • 39.95* Railway Operations and Control - Third Edition • BKROC • $39.95* Railroad Operations and Railway Signaling • BKRORS • $28.00 * No bookseller discounts available. **Maps shipped internationally will have additional charges.

The Basics of Railroad Wheels • BKWHEEL • $25.75 Guide to Freight Car Couplers and Draft Gear Systems • BKCDG • $67.95

Doorway to Safety With Boxcar Doors • BKBD • $23.50 Single Car Air Brake Test Procedures Manual • BKSCTD • $36.95

Dictionary of Railway Track Terms • BKRTT • $35.00

Railway Geotechnics • BKGEOTECH • $205.00* Transit Elements of Planning, Engineering and Operating Light Rail with Applications in New Jersey • by Al Fazio • BKEPEO • $59.95

Guide to Freight Car Trucks • BKFCT • $86.95 Locomotive NEW! Turbine Power • by Walter Simpson • BKTURBINE • $22.99*

Guide to Locomotive Mechanical Maintenance - SD & GP Locomotives • BKGLMM • $37.50 Guide Locomotive Electrical Maintenances • BKGLEM • $46.75 Fuel Saving Techniques for Railroads - The Railroader's Guide to Fuel Conservation • BKFUEL2 • $29.50 Maps 2014 Railroads of Continental United States Wall Map (laminated) • MPWML14 • $47.95* ** 2007 Edition Railroads of Canada Map (laminated) • MPRRCAN • $99.00* **

Shipping Rates:

Add the following shipping and handling if your merchandise subtotal is: UP TO $10.00 10.01 - 25.00 25.01 - 50.00 50.01 - 75.00 75.01 -100.00 100.01 - 150.00 150.01 - 200.00 200.01 - 300.00

U.S.A. $4.50 8.40 11.43 12.71 15.16 17.42 20.17 24.49

CAN $8.75 13.66 18.14 22.90 30.19 39.53 53.08 66.10

U.S.A. CAN 300.01 - 400.00 28.80 79.65 400.01 - 500.00 33.23 92.93 500.01 - 600.00 37.90 105.97 600.01 - 700.00 42.56 121.93 700.01 & up (Appropriate charges applied)

To order, call

1-800-228-9670 or visit www.transalert.com The Railway Educational Bureau 1809 Capitol Ave., Omaha NE, 68102 (800) 228-9670 I (402) 346-4300 www.RailwayEducationalBureau.com

People / Events GERALD A. REYNOLDS

Federal Railroad Administration HIGH PROFILE: The Federal Railroad Administration (FRA) has named Gerald A. Reynolds Chief Counsel, serving as the principal legal advisor to FRA Administrator Ron Batory, with responsibility for overseeing all FRA legal matters. Reynolds’ duties include providing legal advice and counsel on freight and passenger rail matters ranging from FRA’s safety regulatory oversight to grant and loan financial assistance programs, as well as managing the agency’s Legal Department, which is comprised of nearly 50 attorneys and staff. Reynolds has extensive and distinguished federal and private-sector legal experience involving complex litigation, government regulations, corporate governance, public policy and civil rights. Prior to joining FRA, he served as a top legal expert for three major utility companies, including five years as General Counsel, Chief Compliance Officer, and Corporate Secretary for LG&E and KU Energy, a Kentucky utility consisting of Louisville Gas & Electric (LG&E), Kentucky Utilities (KU), Old Dominion Power (ODP) and Western Kentucky Energy, which generates electricity on behalf of Big Rivers Electric Corp., a Touchstone Energy cooperative. In 2004, Reynolds, a Republican, was appointed by President George W. Bush as Chairman of the United States Civil Rights Commission, a position he held until 2010. He also held other notable federal appointments, including Deputy Associate Attorney General at the U.S. Department of Justice, and Assistant Secretary for the Office of Civil Rights in the U.S. Department of Education. Reynolds received his law degree from Boston University School of Law, and a B.A. in history from City University of New York–York College.

A

SLRRA (American Short Line and Regional Railroad Association) has added to its Legislative team Mara Stark-Alcalá in the new role of Assistant Vice President Congressional Affairs. Stark-Alcalá brings 10 years of varied transportation legislative experience to ASLRRA through past positions with Chambers, Conlon & Hartwell (CC&H), the American Public Transportation Association (APTA), and on the staff of the U.S. Senate Committees on Appropriations and Environment and Public Works. In her prior position as Senior Associate with CC&H, ASLRRA’s longtime government affairs firm, Stark-Alcalá worked across the transportation industry, advocating for many of the firm’s public transportation, municipal, commuter and freight railroad clients. At ASLRRA, she will be responsible for focusing full-time on the varied Congressional affairs issues facing short line railroads, including tax policy, infrastructure grant programs and surface transportation policy. Stark-Alcalá is a graduate of Stanford University with a B.A. in Political Science.

Four new leaders are in place for railsafety nonprofit Operation Lifesaver,

36 Railway Age // May 2020

JUne 3-5, 2020

NEARS (NORTHEAST ASSOCIATION OF RAIL SHIPPERS) 2020 SPRING CONFERENCE Marriott Newport, Rhode Island http://www.nears.org/cdms/ registration.cgi

JUne 8-12, 2020

RAILWAY REGULATION, SAFETY & THE RAIL INDUSTRY 2020, PRESENTED BY MICHIGAN STATE UNIVERSITY ELI BROAD COLLEGE OF BUSINESS Courtyard by Marriott Washington Downtown Convention Center, Washington D.C. Loniers@msu.edu https://execed.broad.msu.edu/ programs/railway-businessadministration-leadershiprmcp-302/

SEPTEMBER 9-10, 2020 Inc. (OLI) state programs. The new District of Columbia OLI Coordinator is Jeffrey Bennett; Colin Smith serves in the role for Montana OLI; Toni Clithero is state coordinator for Vermont OLI; and Tracey Lamb leads the OLI program in Virginia.

Bennett, a resident of Alexandria, Va., has been involved in OLI since 2007 and became the lead for D.C.’s program when it restarted earlier this year. He’s Chief of Transit at the D.C. Department of Transportation. Smith, a resident of Helena, Mont., has been involved with OLI since March, when he succeeded former Montana State Coordinator Clark Wheeler. He’s a recent graduate of the University of Montana. Clithero, an attorney who lives in Worcester, Vt., became an authorized OLI Volunteer in January and succeeds Alan Franklin. An attorney, Clithero most recently served as an Assistant Attorney General in the Vermont Agency of Transportation. Lamb, a Midlothian, Va., resident, works for the Virginia State Corporation Commission (SCC) and is taking over the Virginia program from Renée Salmon. Prior to joining the SCC, she worked for Virginia 811 for 12 years, educating stakeholders and the general public about excavation safety throughout the Commonwealth.

LIGHT RAIL 2020, PRESENTED

BY RAILWAY AGE AND RT&S Courtyard Boston Downtown, Boston, Mass. conferences@sbpub.com https://www.railwayage.com/ lightrail/

SEPTEMBER 14-18, 2020

RAILWAY OPERATIONS 2020, PRESENTED BY MICHIGAN STATE UNIVERSITY ELI BROAD COLLEGE OF BUSINESS Union League Club of Chicago Loniers@msu.edu https://execed.broad.msu.edu/ programs/railway-businessadministration-leadershiprmcp-302/

SEPT. 30-oct. 1, 2020

SWARS (SOUTHWEST ASSOCIATION OF RAIL SHIPPERS) 2020 SEMI-ANNUAL MEETING Westin Gas Lamp San Diego. swars@swrailshippers.com https://www.swrailshippers.com/ event/2020-semi-annual-meeting/ railwayage.com

Products LEDTRONICS MINIATURE BULBS

L

ZTR, Blackberry Partner on Digital Remote Railcar Monitoring LOCOMOTIVE modernization solutions and industrial IoT (Internet of Things) technology provider ZTR has partnered with security software and asset tracking provider BlackBerry Limited on what the two companies describe as “an advanced digital railcar remote monitoring solution.”

ZTR’s new offering, which it has named PIVOT, utilizes elements of BlackBerry’s Radar® asset tracking technology. Currently in a customer trial phase, PIVOT is “an end-toend solution that helps railcar customers achieve increased efficiency,” ZTR says. “Built to withstand the rugged conditions of the railway, it’s available through an intuitive online dashboard. The service includes location, utilization and mileage data for railcars and other non-powered railway assets.”

PIVOT, ZTR says, improves railcar utilization by providing “a clear picture of how railcars are underused, overused or misused.” Its location function enables users to “know where their assets are, understand dwell and cycle times” and reduce incidents involving misrouted (“lost”) railcars. PIVOT “improves maintenance efficiency by reducing issue response time” and “meets the demand for supply chain visibility by securely sharing data at the right time, with the right people and business systems.”

“Recognizing there was an immediate industry need for a remote railcar monitoring solution that could withstand the rugged conditions of the railway, provide greater fleet insights and operate with extended battery life, ZTR and BlackBerry decided to leverage their mutual strengths,” ZTR notes.

“The partnership combines ZTR’s decades railwayage.com

of railway industry expertise, world-class technical support and Railway IoT experience with BlackBerry’s industryleading communication technology, battery management, security and hardware capabilities. With solid location information, customers will be able to realize huge efficiency gains through analytics and reporting, and get unparalleled visibility into their operations, allowing them to optimize asset utilization.”

“It was an easy decision for ZTR to work with BlackBerry,” says ZTR President and CEO Sam Hassan.“We’re always looking ahead to anticipate customer needs and improve availability, reliability and efficiency through innovation, so it made sense for two technically-savvy businesses to join together to deliver greater customer value.

Railways are using different methods for tracking their railcar locations. Seeing a railcar’s GPS location is important, but our offering goes beyond that. We’re looking at all constituents, including the railway, the car lessor and OEM to give them a view that provides a valuable information stream. This includes car logistics, car operations, car health, car leasing models and more.”

“Known as the railway experts, ZTR was the perfect partner to help expand the reach of our asset monitoring solution in an otherwise underserved market, and one in which visibility and fleet insights can make a major difference in profitability,” says BlackBerry Radar® Senior Vice President and General Manager Christopher Plaat. “With ZTR, we share a vision to bring digital transformation to the railroads so that they can make better, data-driven decisions that lead to greater fleet efficiency.”

EDtronics, Inc. has new additions to its line of Miniature Based LED Bulbs. The new LED lamps far surpass the previous generation in brightness, while maintaining their low power consumption and longer light life compared to incandescent lamps.

LEDtronics’ miniature based bulbs are used for critical applications in industries such as transportation. The BSD-1118/1318/1319 series directly replaces similar Ba9s Bayonet base incandescent lamps within its category.

They offer up to 90% energy savings, higher intensity, more-even lighting, and reduced heat and relamping costs in critical status indication applications, such as indicator lights for instrumentation, panel-mount pilot lights and accent lighting.

The solid-state design of these new miniature lamps renders them impervious to electrical and mechanical shock, vibration, frequent switching and environmental extremes. They have a much longer light duration, with LED lumen maintenance of 70% at more than 100,000 hours. All units feature Rynite FR530 sleeves and brass bases with nickel-plated brass barrels, and a 30-degree beam angle, with a choice of Ultra Red (657nm), Super Yellow (600nm) or Aqua Green (527nm) emitted colors. The latest LEDtronics series comes in three voltage configurations: 110VAC BSD-1118; 15Vf & 23Vf (requires external current limiting) BSD-1318 with center contact polarity/bipolar DC; and 120VAC BSD-1319 with current-limiting resistor built-in. They have an operating temperature range of -30°C to +50°C, generate minimal heat, produce virtually no UV or IR radiation, with no RF interference. www.ledtronics.com.

May 2020 // Railway Age 37

EQUIPMENT SALE/LEASING

RECRUITMENT EDNA A. RICE, EXECUTIVE RECRUITER, INC.

Available for Lease 3000 cu ft Covered Hopper Cars 4650 cu ft Covered 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 26,671 Gallon, 263k GRL, NC/NI Tank Cars Contact: Tom Monroe: 415-616-3472 Email: tmonroe@atel.com

The world’s most accomplished executive search firm specializing in the rail and transportation industries. With 31 years’ experience, we possess the industry-specific knowledge and expertise needed to consistently deliver the exceptional results one would expect for both our clients and our candidates.

1500 Marina Bay Drive, Suite 125 Clear Lake Shores, TX 77565

(713) 667-0406 www.ednarice.com info@ednarice.com

MARKETPLACE SALES

JENNIFER IZZO

RAILWAYAGE.COM

The News Destination for the Rail Industry

P: 203-604-1744 F: 203-857-0296 jizzo@mediapeople.com

ALL MAJOR CREDIT CARDS ACCEPTED

AILWAY GE ARE YOU A RAILROAD OR SUPPLIER SEARCHING FOR JOB CANDIDATES?

Visit http://bit.ly/railjobs 38 Railway Age // May 2020

To place a job posting, contact: Jennifer Izzo 203-604-1744 jizzo@mediapeople.com

railwayage.com

Ad Index COMPANY

PHONE #

AMSTED RAIL GROUP

312-922-4516

FAX # 312-922-4597

CANADIAN PACIFIC

URL/EMAIL ADDRESS kskibinski@amstedrail.com

7

Jeremy_Berry@cpr.ca

18

csx.com

10

904-359-3200

CSX CORPORATION

PAGE #

DANELLA RENTAL SYSTEMS, INC.

561-743-7373

561-743-1973

SBolte@danella.com

24

HARSCO RAIL

803 822-9160

803 822-8107

railinfo@harsco.com

22

HOLLAND LP

708-672-2300

708-672-0119

sales@hollandco.com

34

KANSAS CITY SOUTHERN

816-983-1372

dclarson@kcsouthern.com

17

LINSINGER MASCHINENBAU GMBH

604-314-8774

r.stock@linsinger.com

23

LORAM MAINTENANCE OF WAY, INC

763-478-6014

sales@loram.com

C2

NOKIA SOLUTIONS AND NETWORKS

613-784-1991

fai.lam@nokia.com

25

info@okonite.com

C4

763-478-2221

OKONITE CO.

201-825-0300

201-825-3524

PANDROL USA, L.P.

800-221-CLIP

856-467-2994

28

PATRIOT RAIL & PORTS

904-423-2540

info@patriotrail.com

15

PORT OF VIRGINIA THE

757-683-8000

www.portofvirginiaa.com

3

RAILWAY SUPPLY INSTITUTE

202-347-4664

info@rsiweb.org

19

RAILWAY EDUCATIONAL BUREAU

402-346-4300

bbrundige@sb-reb.com

35, C3

402-346-1783

SOFTRAIL INC

888-872-4612

sales@signalcc.com

32

WABTEC

412-825-1000

www.WabtecCorp.com

13

The Advertisers Index is an editorial feature maintained for the convenience of readers. It is not part of the advertiser contract and Railway Age assumes no responsibility for the correctness.

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

railwayage.com

AR, AK, AZ, CA, CO, IA, ID, IL, IN, KS, LA, MI, MN, MO, MS, MT, NE, NM, ND, NV, OK, OR, SD, TN, TX, UT, WA, WI, WY, CANADA – AB, BC, MB, SK Heather Disabato 20 South Clark Street, Suite 1910 Chicago, IL 60603 (312) 683-5026 Fax: (312) 683-0131 hdisabato@sbpub.com THE NETHERLANDS, BRITAIN, FRANCE, BELGIUM, PORTUGAL, SWITZERLAND, NORTH GERMANY, MIDDLE EAST, SOUTH AMERICA, AFRICA (NOT SOUTH), FAR EAST (EXCLUDING KOREA /CHINA/INDIA), ALL OTHERS, TENDERS Louise Cooper International Area Sales Manager The Priory, Syresham Gardens Haywards Heath, RH16 3LB United Kingdom +44-1444-416368 Fax: +44-(0)-1444-458185 lc@railjournal.co.uk

SCANDINAVIA, SPAIN, SOUTHERN GERMANY, AUSTRIA, KOREA, CHINA, INDIA, AUSTRALIA, NEW ZEALAND, SOUTH AFRICA, RUSSIA, EASTERN EUROPE BALTIC STATES, RECRUITMENT ADVERTISING Michael Boyle International Area Sales Manager Nils Michael Boyle Dorfstrasse 70, 6393 St. Ulrich, Austria. +011436767089872 mboyle@railjournal.com ITALY, ITALIAN-SPEAKING SWITZERLAND Dr. Fabio Potesta Media Point & Communications SRL Corte Lambruschini Corso Buenos Aires 8 V Piano, Genoa, Italy 16129 +39-10-570-4948 Fax: +39-10-553-0088 info@mediapointsrl.it

JAPAN Katsuhiro Ishii Ace Media Service, Inc. 12-6 4-Chome, Nishiiko, Adachi-Ku Tokyo 121-0824 Japan +81-3-5691-3335 Fax: +81-3-5691-3336 amkatsu@dream.com CLASSIFIED, PROFESSIONAL & EMPLOYMENT Jennifer Izzo 800 Connecticut Avenue, Norwalk, CT 06854 203-604-1744 Fax: 203-857-0296 jizzo@mediapeople.com

AILWAY GE May 2020 // Railway Age 39

Financial Edge COVID-19 and the Rail Economy

T

oo much ink (printer ink in the modern era) has already been spilt trying to find an angle on the COVID-19 pandemic and its impact on the national and global economy, the consumer, the business segments most impacted by the terrible crisis (think aerospace, restaurants, the arts), the front line healthcare workers risking their lives daily and the retail, delivery and factory workers keeping aspects of life in the United States (e.g. food supply) relatively normal.

North American freight rail rides slightly above the fray. While national passenger services (Amtrak and local transit) have cut back due to quarantining and ridership drop-offs, freight must continue to move.

There is no more essential service than delivering grain to mills and milled products to facilities for processing into consumable foodstuff.

There is nothing more necessary than a boxcar filled with two- (or three-) ply toilet paper making its way to a distribution center to satisfy the needs of a crazy domestic population of hoarders.

The rail industry will have to deal with pandemic-related challenges: Decreases in loadings will hurt railroads; decreases in industrial production and supply chain disruptions will hurt shippers; decreases in railcar and locomotive demand and lease rates will hurt manufacturers and equipment lessors.

As Eric Marchetto, Chief Financial Officer of Trinity Industries, noted in a Cowen and Company teleconference, motor vehicles and parts represent about 2% of railcar loadings annually; petroleum and petroleum products about 12%. As auto manufacturers deal with the fallout resulting from job losses, unemployment and social distancing, auto sales will drop drastically. Rail loadings in that segment will drop in kind. Right now, those loadings will not be replaced. Those lost loadings will be added to other reductions resulting from historic decreases in the price of oil and in the consumption of refined fuels and the impact on domestic frac drilling.

Be assured, North American rail has

40 Railway Age // May 2020

numerous challenges ahead.

So here is your reality check. Rail will survive and return to pre-pandemic levels. Railcar lessors, OEMs and Class I railroads have survived earlier crises since the repeal of the Staggers Act. They will survive this current crisis.

There will be a time to discuss the impacts of the pandemic on the railcar manufacturing and lease market (beginning in Railway Age’s Guide to Equipment Leasing, June 2020 issue), but right now we must focus on managing the difficult crises affecting us in the moment while preparing to meet the multitude of challenges in the future.

In a Railway Age podcast with Eric Starks and Todd Tranausky of FTR Transportation Intelligence, it was mentioned that railcar deliveries in 2020 are expected to decline to the low 20,000s, but could drop into the high teens if the economy does not return to a reasonable level of activity by early mid-year. This is down from earlier estimates of 35,000.

Industry veterans have seen railcar builds of roughly 17,000 cars in 2010 and 2002.

2010 was the result of the Great Recession and 2002 was the overbuild following the three Class I megamergers of 19961998 (Union Pacific/Southern Pacific; Burlington Northern/ATSF and Norfolk Southern and CSX splitting Conrail).

Rail recovered from those years and will recover from this crisis as the pandemic recedes and life, consumption, retail sales and industrial activity return to normal. It will rise again to reclaim what has been lost. Stay positive for the future and let those expectations of a return to normalcy carry you through the challenges of the present.

I want to close this month’s column by adding a note of remembrance for Daniel “Dan” Wallace, who passed away on April 19, 2020 at the way-too-young age of 50 from complications associated with severe metastatic melanoma.

Dan spent the majority of his career in rail finance, beginning at the incubator that was GE Railcar Services (now Wells Fargo Rail). Dan also worked at Redwood Rail LLC (a boutique operating lessor),

in memoriam, dan wallace City National Bank and FreightCar America. He fought his cancer many years with class and grace. He was able to lead a mostly healthy and lengthy period of his life, during which he married a woman he loved and started a family until cancer came back after him.

Dan was a man of positive disposition and warmth and was well-regarded throughout the industry. He will be missed for his smile and good nature and his unwavering commitment to be the best person he could be with the time he had.

Dan Wallace’s presence will be missed by friends and colleagues through the industry. His passing during this time reminds us how important the people in our lives are, especially in times of crisis.

My condolences to all those who have lost loved ones to the coronavirus.

Got questions? Set them free at dnahass@ railfin.com.

DAVID NAHASS President Railroad Financial Corp. railwayage.com

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

Now Include Part 22 s 4

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

Part Title 210 Railroad Noise Emission Compliance Regulations Updated 4-15-19.

215 Freight Car Safety Standards Updated 7-31-19.

216 Emergency Order Procedures: Railroad Track, Locomotive and Equipment Updated 7-31-19.

217 Railroad Operating Rules Updated 7-31-19.

218 Railroad Operating Practices - Blue Flag Rule Updated 7-31-19.

221 Rear End Marking Device-passenger, commuter/freight trains Updated 7-31-19.

223 Safety Glazing Standards Updated 7-31-19.

224 Reflectorization of Rail Freight Rolling Stock Updated 7-31-19.

225 Railroad Accidents/Incidents Updated 7-31-19.

229 Locomotive Safety Standards Updated 7-31-19.

231 Safety Appliance Standards Updated 7-31-19.

232 Brake System Safety Standards Updated 7-31-19.

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

Part 229: Locomotive Safety Standards The Locomotive Safety Standards cover the laws governing inspections and tests, brake system, draft system, suspension, electrical, cabs and cab equipment plus more! Softcover. Spiral bound. Updated 7-31-19

BKLSS

Current FRA Regulations FRA Part #

Update effective

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

7-31-19 7-20-09 7-31-19 4-3-17 7-31-19 7-31-19 7-31-19 7-31-19 7-31-19 7-31-19

222 228 229 230 231 237 240

7-31-19 7-31-19 7-31-19 7-31-19 7-31-19 7-31-19 7-31-19

BKSEP

BKHORN BKHS BKLSS BKSLI BKSAS BKBRIDGE BKLER

BKCONDC 242 7-31-19

BKBSS

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 Hours of Service Locomotive Safety Standards Steam Locomotive Inspection RR Safety Appliance Standards Bridge Safety Standards Qualification and Certification of Locomotive Conductor Certification

232 7-31-19 Brake System Safety Standards

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 12.50 12.50 25.95 10.50 7.95 14.25

13.25 11.25 11.25 23.35 9.45 7.15 12.85

12.50

11.25

Each

25 or more

16.50

14.85

Update effective

Each

25 or more

BKCAD

40 219

4-23-19 Drug and Alcohol Regulations in 7-31-19 the Workplace

38.95

35.00

BKSTC

233 234 235 236 238 239

7-31-19 Signal and Train Control Systems 7-31-19 7-31-19 7-31-19 7-31-19 Passenger Safety Standards 7-31-19

21.50

19.35

25.50

22.95

Compliance Manuals BKINFRA BKTM

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

BKFSS

38.00

34.00

49.95

44.95

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

$8.50

Freight Car Safety Standards Order 50 or more and pay only $7.65 each

Railroad Operating Rules & Practices 49 CFR 217 to 218. Part 217: Purpose, Application, Definitions, Penalty, Operating Rules, Program of Operation Tests and Inspections; Program of Instruction on Operating Rules, Information Collection. Part 218: General Blue Signal Collection of Workers Protection of Trains and Locomotives, Prohibition against tampering with safety services, Protection of occupied camp cars. Softcover. Spiral bound. Updated 7-31-19

BKROR

Railroad Operating Rules & Practices

$10.50

Order 50 or more and pay only $9.45 each

Part 228: Passenger Train Employee Hours of Service; Recordkeeping and Reporting; Sleeping Quarters 49 CFR 228 for records, recordkeeping, and reporting of hours of duty of a railroad employee. Also covers the construction of employee sleeping quarters and health requirements for camp cars. Softcover. Spiral bound. Updated 7-31-19

BKHS

Combined FRA Regulations FRA Part #

BKPSS

49 CFR 215. Prescribes the minimum safety standards for freight cars allowed by the FRA. Includes safety standards for freight car components, car bodies, draft system, restricted equipment and stenciling. Softcover, spiral. Updated 7-31-19

50 or more

Each

$12.50

Part 215: Freight Car Safety Standards

Order 25 or more and pay only $29.50 each

Item Code

Locomotive Safety Standards Order 50 or more and pay only $11.25 each

$32.95

Mech. Dept. Regs.

BKMFR

FRA News:

Hours of Service of RR Employees

$12.50

Order 50 or more and pay only $11.25 each

800-228-9670 www.transalert.com

The Railway Educational Bureau 1809 Capitol Ave., Omaha NE, 68102 I (800) 228-9670 I (402) 346-4300 www.RailwayEducationalBureau.com Add Shipping & Handling if your merchandise subtotal is: U.S.A. CAN U.S.A. CAN Orders over UP TO $10.00 $4.50 $8.75 25.01 - 50.00 11.43 18.14 $75, call for shipping 10.01 - 25.00 8.40 13.66 50.01 - 75.00 12.71 22.90 *Prices subject to change. Revision dates subject to change in accordance with laws published by the FRA. 5/20

OKONITE The Premier Manufacturer of Vital Circuit Signal Cables Vital Signal Cables are the backbone of Railroad signaling systems. For over 140 years, Okonite has been the leader in the design and production of vital signal cables. Okonite was the first to formulate EPR insulation for these cable systems and our 50 years of installed service stands testament to its unmatched reliability.

Today, with our fleet of 6 manufacturing plants, with over 3 million sq. ft. of manufacturing space, 5 service centers and 23 local sales offices, Okonite has demonstrated the highest level of customer service available. Even during the unprecedented demand for vital signal cable during Positive Train Control initiatives, Okonite took measures to expand and modernize our plants to ensure customer service remained at levels our customers required.

Unmatched cable quality and customer service. That's our goal and one our employee owners strive to meet every day.

Okonite since 1878. 100% Made in America.

THE OKONITE COMPANY

Okonite Cables...A higher Standard!

102 Hilltop Road, Ramsey, New Jersey 07446 201.825.0300

www.okonite.com