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Two for the Long Haul ProgressiveThe Information Leader for the Railroad Industry JANUARY 2013 TWO FOR THE LONG HAUL A NEW LINE FOR Crude oil and PORTLAND'S domestic intermodal TRIMET business pose the greatest long-term EASTERN growth potential SHALES for BNSF as long as STILL A enough capacity’s GROWTH DRIVER in place OUR 14TH ANNUAL GRADE CROSSING UPDATE WEB EXCLUSIVE: Michael DePallo, the new CEO at Metrolink, cites challenges and priorities www.progressiverailroading.com/cover www.ProgressiveRailroading.com C1_PR_0113 cover.indd C1 1/3/13 11:35 AM The Secret is Coming Down the Track... POWERRAIL IS CELEBRATING 10 YEARS OF EXCELLENCE! Celebrating 10 Years of Excellence! 10 Years of Delivering Results! We would like to sincerely THANK all of our loyal customers and friends for their support over the past 10 years. Without you, we would not be who we are today - An AAR M-1003 Quality Corporation offering a full line of Locomotive Parts and Components. We are Unique Manufacturer and full-service stocking company with multiple locations throughout North America offering a full range of New or Our Proven True Blue™ Remanufactured-Unit Exchange Components. We will continue to strive to exceed your expectations, while delivering products and services that meet exemplary standards of Quality, Service, Delivery and Value! www. powerrail.com™ | 570.883.7005 FREE INFO: Circle 101 C2_PR_0113_lr PowerRail.indd C2 12/27/12 11:21 AM PROGRESSIVE RAILROADING Volume 56, No. 1 January 2013 | CONTENTS | 1 COVER STORY • PAGE 16 TWO FOR THE LONG HAUL Crude oil and domestic intermodal business pose the greatest long-term growth potential for BNSF as long as enough capacity’s in place FEATURES 14 Deconstructing the North American rail industry Short-term caution and long-term bullishness ruled at RailTrends 2012 23 Connecting the dots TriMet’s Portland-Milwaukie light-rail line will be the latest in a series of corridors linking key employment, tourist destinations Photo courtesy of BNSF Railway Co. Cover design by Mark E. Uy 27 Shale and hearty growth Despite a drilling lull in some parts of the Marcellus, shales will be a growth driver this year for eastern DEPARTMENTS U.S. railroads 4 Upfront 30 A multi-pronged 13 Guest Comment approach Making the safety grade at crossings 45 Reader Information Center requires a little technology, a lot of partnering, and more education and 46 Professional Services Directory closures 46 Classified 39 Handling with greater care 48 From the Editor Suppliers that help railroads move MOW materials discuss technology and marketplace trends “Crude by rail has gone from zero to 60 mph in a very short time.” — Matt Rose, Chairman and CEO, BNSF Railway Co. - p.17 PROGRESSIVE RAILROADING (ISSN 0033-0817) (Publications Agreement No. 40031401) is published mailed outside the U.S., $140.00 (U.S. dollars) per year, $245 (U.S. dollars) for two years. Add $150.00 (U.S. every month by Trade Press Media Group, Inc. Editorial and business offices are at 2100 W. Florist Ave., dollars) per year for USPS Priority Mail delivery. Periodicals postage paid at Milwaukee, Wisconsin and additional Milwaukee, WI 53209. (414) 228-7701. Subscriptions: PROGRESSIVE RAILROADING is sent without mailing offices. The publishers do not assume responsibility for the validity of the claims made for products obligation to railroad presidents, vice-presidents, and qualified personnel in railroad management and described. supervision in the executive, administrative, operating, mechanical, engineering, purchases and mate- POSTMASTER: Please send address changes to Progressive Railroading, P.O. Box 1289, Skokie, IL 60076- rials, electrical, signal and communications departments of the railroads. Qualified 8289. CANADIAN return address: Station A P.O. Box 54, Windsor, ON N9A 6J5; [email protected] subscriptions should be requested on railroad letterhead. Subscription price to All packages shipped via UPS, air express or common carrier, plus all general correspondence, should be others: $8.00 per single copy. $96.00 per year, $180.00 (U.S.) 2 years. For subscriptions addressed to: Progressive Railroading, 2100 W. Florist Ave. Milwaukee, WI 53209. Printed in U.S.A. 01_PR_0113 TOCMain.indd 01 1/3/13 2:22 PM PROGRESSIVE RAILROADING 2 | ONLINE | January 2013 Sign up for our RSS feed progressiverailroading.com/ Progressive rss/prnews.asp Follow us on Twitter Recently posted “online only” articles: twitter.com/rail_pro_mag Meet Operation Lifesaver Inc.’s New Metrolink CEO Michael Joyce Rose As the new national DePallo talks challenges, Find us on Facebook leader of Operational priorities The facebook.com/ Lifesaver Inc., Rose longtime Port Authority ProgressiveRailroading is taking over at an Trans-Hudson general important juncture in the manager has relocated organization’s history — to southern California, and in her career. www. where he plans to apply Join the Progressive Railroading progressiverailroading. his experiences in New Magazine LinkedIn group com/PR York and New Jersey to progressiverailroading.com/ carry out Metrolink’s PTC linkedin and passenger-car programs. www.progressiverailroading.com/PR Check us out on Google+ progressiverailroading.com/ Intermodal: Shorter trains, efficiency gains at NS A year ago, Norfolk google+ Southern Railway began to roll out an R3 initiative to optimize the movements of trailers, and international and domestic containers. Meaning the right lane, right car and right unit, R3 aims to ensure that trains Join the discussion, ask departing an intermodal terminal are headed questions and network to the correct destinations, moving freight with your colleagues at loaded on the most optimal rail cars and our social networking site, transporting the proper containers or trailers myprogressiverailroading.com to enhance capacity and increase asset utilization. www.progressiverailroading.com/PR myProgressive RailTrends® — The premier Progressive Railroading’s Daily News conference for rail professionals The most-read Daily News stories last month: www.railtrends.com ■ “Canadian Pacific: New ‘rapid change agenda’ includes job cuts, headquarters relocation, DM&E line divestiture and mid-60s operating ratio” ■ “Berkshire sells second short line to meet STB divestiture obligation” ■ “Genesee & Wyoming lands its largest Utica Shale customer” www.progressiverailroading.com/news LOGGING IN Angela Cotey associate editor Jeff Stagl Julie Sneider managing editor assistant editor his year, transit agency execs will he Panama Canal expansion — ncoming House T&I Committee Tget their long-awaited wish for a Twhich is slated for completion next IChairman Bill Shuster, on whether more streamlined New Starts program. year — will be followed by at least he’ll model outgoing Chairman John U.S. Transportation Secretary Ray one additional expansion, according Mica’s talent for making colorful LaHood’s Dec. 31 FastLane blog out- to an article posted Dec. 12 by statements: “I don’t know who writes lines the basics of the revisions. the Containerization & Intermodal his stuff for him. But I don’t have the www.fastlane.dot.gov Institute. www.containerization.org same writers.” www.politico.com 02_PR_0113 TOCOnline.indd 02 1/3/13 1:57 PM HIGH-CAPACITY I PRECISION I RELIABILITY Clean-Up Time. The Challenge: deteriorating ballast conditions due to high density traffi c and increasing axle loads. The solution: Plasser Ballast Undercutter/Cleaners for highest quality, high production and effi cient ballast cleaning. The result: On-time performance, increased capacity, and a safe railroad. Plasser, providing ballast cleaning technology with decades of know-how and worldwide experience. P l a s s e r A m e r i c a n C o r p o r a t i o n I 2 0 0 1 M y e r s R o a d · C h e s a p e a k e · VA 2 3 3 2 4 - 0 4 6 4 I www.plasseramerican.com FREE INFO: Circle 102 03_PR_0113 Plasser American.indd 03 12/27/12 11:20 AM PROGRESSIVE RAILROADING 4 | January 2013 Upfront [ INFORMATION TECHNOLOGY ] UP: A new center of attention By Jeff Stagl, Managing Editor Each year, Union Pacific group leaders closer to the top- electrical engineering programs, state, and employs more people Railroad’s attrition levels tier talent residing in one of such as the University of Texas- in Texas than any other state typically reach 3,000 to 4,000 the nation’s hottest technology Austin, University of Texas-San except Nebraska, where the workers primarily because of hubs. The 11,000-square-foot Antonio, Texas A&M University, company maintains its Omaha retirements. Every department facility will serve as a software Baylor University, Southern headquarters, according to the is impacted by the experienced and engineering research and Methodist University, Texas Class I. UP operates one of the worker drain, but it’s especially development center for the Christian University and Trinity world’s largest privately owned problematic in the information group, which conducts work University, says UP spokesman telecommunications networks, technology (IT) group because in such areas as real-time and Tom Lange. which supports 10,000 custom- hardware and software demands predictive analytics, hardware “We have been evaluating ers and the railroad’s 32,000- continue to mount. There usu- engineering, sensor-based mote the possibility of a satellite mile network in 23 states. UNION PACIFIC RAILROAD IT office for about two years,” he says. “A few years ago, we Special programming started sending recruiters to The new open-concept IT quite a few universities across center, which will support the U.S. to cultivate relation-
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