NEARS SPRING CONFERENCE “Harnessing Technology For Rail Efficiency” - Railcars
National Steel Car Limited April 19, 2018
National Steel Car Limited - Confidential Information 1 Our Company
Founded in 1912, celebrating over 100 years of car building excellence
Serving the North American and International railcar markets
Largest, single-site railcar manufacturing plant in North America, employing over 2,000 team members
All Types of Freight Cars: 12 different car types / over 75 models
Capacity to produce over 15,000 railcars annually
5 flexible production lines, 3 state of the art blast/paint/finishing lines
Ongoing plant modernization
Certified to AAR M-1003
The only car builder certified to ISO 9001-2015 in North America
National Steel Car Limited - Confidential Information 2 NSC Company Portfolio Freight / Tank Cars
National Steel Car Limited - Confidential Information 3 North American Railcar Fleet (000’s)
Car Type # of Cars % of Fleet
Tank 415 26%
Covered Hopper 554 34%
Gondola 211 13%
Flatcars 196 12%
Open Top Hopper 135 8%
Boxcar 108 7%
TOTAL 1,619 100%
Average Age = 19.5 Years
40% are less than 286,000 lbs. GRL
National Steel Car Limited - Confidential Information 4 Evolution of North American Railcar Fleet
1974 - Interchange cars built before this year have 40-year interchange life; 50 years after 1974
1980 - Staggers Act deregulates railroad industry
1993 - Deprescription of car-hire including “grandfathering" of Class III Boxcars
1995 - S-259 provides for uncontrolled interchange of 286,000 LB. GRL Railcars
2003 - M-976 requires new railcars to have truck, axle, ride performance and other components for 286K GRL
2015 - DOT 117 tank car required for handling class 3 flammable commodities; tiered schedule by commodity
National Steel Car Limited - Confidential Information 5 Despite Recent Years of Robust New Car Deliveries, Fleet is Aging:
Source: AAR/UMLER Data National Steel Car Limited - Confidential Information 6 Counts at Year-End
National Steel Car Limited - Confidential Information 7 Source: UMLER Car deliveries since the 1979 record year:
Car Deliveries
100,000 89,581 89,581
90,000
82,296 82,296
80,824 80,824 74,832 74,832
80,000 74,729
74,044 74,044 68,612 68,612
70,000 67,228
63,156 63,156
62,433 62,433
60,615 60,615
59,954 59,954
58,904 58,904 57,342 57,342
60,000 55,791
53,269 53,269
53,050 53,050
49,891 49,891
47,350 47,350
46,871 46,871 46,300 46,300
50,000 45,086
40,000 35,336
34,258 34,258
32,184 32,184
31,900 31,900
29,649 29,649 25,261 25,261
30,000 24,589
22,500 22,500
21,682 21,682
17,714 17,714 17,400 17,400
20,000 16,535
13,800 13,800
12,000 12,000
11,900 11,900 11,600 11,600
10,000 5,900
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National Steel Car Limited - Confidential Information 8 Source: ARCI Grain Covered Hopper Cars
Traditional grain hopper cars were four hopper arrangements
Between 4000 and 4800 CF
263 GRL
Longer over the pulling faces of couplers
Modern grain hopper cars are three hopper arrangements
Capacities greater than 5400 CF
286 GRL
Shorter over the pulling face of couplers
National Steel Car Limited - Confidential Information 9 Cement / Sand Covered Hopper Cars
Small cube hoppers traditionally used to move cement
Recently Frac Sand is the common commodity
New small cube hoppers are through sill designs
Volumes over 3200 CF
Lower light weights
Increase in carrying capacity
National Steel Car Limited - Confidential Information 10 Autoracks
Traditional Autoracks either constructed as bi-level or tri-level cars
Typically have radial or rave doors
Modern Autoracks designed to be convertible between bi-level or tri-level
Gives versatility to car owners
Different door designs manufactured from composites
Reduces weight/ eases operation
National Steel Car Limited - Confidential Information 11 Box Cars
Older box cars still in use are 50’ Plate “C” cars
Not suitable for transporting high value commodities
Lack interior cleanliness and sufficient loading height
New box cars are Plate “F”
Designed/manufactured with high value commodities in mind
Smooth interiors reduce damage to product
Greater interior heights
National Steel Car Limited - Confidential Information 12 Tank Cars
DOT 111 tank cars manufactured with 7/16” shells on jacketed cars and 1/2” shells on unjacketed cars
Full height head shields not required
No longer approved for transportation of flammable liquids
DOT 117 tank cars designed for transportation of flammable liquids
9/16” shells, jackets, full head shields and thermal protection
Top fittings protection
Disengaging BOV handles
National Steel Car Limited - Confidential Information 13 Trucks – M-976
Prior to 2002 followed M-965 performance specifications
Three piece trucks, constant damping, roller side bearings and standard bearing adaptors
2002 AAR released M-976 specification
Raised minimum performance standards for trucks applied to new cars built to S-286
Continued to update the specification
Special designation (M-976-LH) for trucks that meet loaded hunting criterion
National Steel Car Limited - Confidential Information 14 S-286 - Truck Components 2002 Standard S-286 adopted for free/unrestricted interchange of 286 GRL freight cars
Required new cars be equipped with M-976 trucks/constant contact side bearings
Cars previously equipped with roller type side bearings
Bearings set up with gap between roller and body bolster wear plate
Restrict the car body from rolling excessively Constant contact side bearings stay in contact with the body bolster wear plate Allow the truck to steer at all times
Better control of car body roll
Damping forces against truck hunting
Restrict the trucks ability to steer
M-976 truck approvals done with constant contact side bearings
National Steel Car Limited - Confidential Information 15 Freight Car Improvements
Over a number of years the AAR and industry has introduced several changes to the standards and regulations:
Empty / Load sensor valves – Reduced braking ratios for empty cars Single sided pipe brackets and aluminium valve portions introduced in the late 1990’s early 2000’s Electronically Controlled Pneumatic (ECP) Brakes Higher buff / draft loads for stub sill vs. through sill cars (500,000 lbs vs. 350,000 lbs) Purpose designed cars for specific commodities 3 Million mile draft sills on tank cars S-2044 Safety Appliances introduced in 2014 improving new car safety Higher payload, lighter & shorter cars 286K GRL provides 9% weight payload advantage over 263K GRL
National Steel Car Limited - Confidential Information 16 National Steel Car Limited - Confidential Information 17