A publication of the Railroads Association SPRING 2010

Federal Mandate To Be Implemented By 2015

In October 2008 the U.S. Congress passed What is Positive Train Control? example, if a train operator fails to stop a and the President signed the Rail Safety • “Positive train control” (PTC) describes train at a stop signal, the PTC system would Improvement Act (RSIA) which requires technologies being designed and developed apply the brakes automatically. the large U.S. railroads (Class I railroads) to by numerous private fi rms and sold to • Railroads have spent hundreds of millions of install positive train control (PTC) systems by railroad companies that automatically stop the end of 2015 on tracks that carry passengers dollars testing and evaluating different types or slow a train before certain accidents of PTC systems, but it’s still an emerging or certain hazardous materials. Additionally, occur. In particular, PTC is designed to and 22 commuter railroads will be technology. To ensure the technology is prevent train-to-train collisions, derailments fully functional and completely safe, much required to install PTC on their rail systems. caused by excessive speed, unauthorized This past December the Federal Railroad more development and testing are needed. incursions by trains onto sections of track Most critical is developing sophisticated, Administration (FRA) issued a fi nal rule where repairs are being made, and movement guiding implementation of PTC. reliable software that can take into account of a train through a track switch left in the the complexities of rail operations. The wrong position. length and weight of a train, train braking According to the Federal Railroad • A fully-functional PTC system is designed system performance, track curvature, the Administration, freight railroads will have to to be able to precisely determine the location grade (slope) of the tracks, track conditions, spend $5 billion by the end of 2015 to install and speed of trains; warn train operators of the location of other trains —all of these positive train control systems in the U.S. potential problems; and take action if the and more must be taken into account by a operator does not respond to a warning. For properly-functioning PTC system. (Continued on page 6) Operation Lifesaver Provides Volunteer Opportunities

From non-profi t Operation Lifesaver organization. in local communities to students, driver OL’s specifi c goal is to provide continuous education classes, civic groups, senior citizen The public information and education to prevent centers and to just about any type of group or President and reduce vehicle/train crashes mainly organization interested in learning about grade through the use of volunteers. Michigan’s state crossing safety. OL coordinator schedules quarterly meetings to discuss and plan OL activities. Robert Michigan OL has several components such Chaprnka Those wishing to become an as training courses for local law enforcement OL presenter should contact Sam Crowl, offi cials emphasizing laws pertaining to Michigan Operation In 1972 a safety organization called Operation grade crossings, school bus driver training, Lifesaver state coordinator at: Lifesaver (OL) was established in Idaho to production and distribution of safety videos/ combat the growing number of highway- DVD’s and many others. However, the [email protected] rail grade crossing crashes. Since that backbone of the OL safety work gets done or (248) 823-7037 time every state has established its own by individuals making safety presentations

(Continued on page 5) New CN Scholarship for MSU Students Choosing Canadian Studies

Michigan State University has announced a new CN has a major presence in Michigan. As • entering their sophomore year of undergraduate scholarship program for students a leader in the North America rail industry, undergraduate study in areas of science, who include the study of the U.S. and Canada the company maintains 925 route miles in 88 technology, engineering, math (STEM) connection in their studies. Michigan communities and employs 1,229 fi elds and be available to visit Canada CN (Canadian National Railway Company) has Michigan residents. CN also serves several during a Study Abroad or internship provided the funding for the scholarship program major Michigan-based businesses including experience approved by the Canadian to MSU’s Canadian Studies Center, who will those in the automotive, manufacturing, and Studies Center. award up to ten $1,000 scholarships each year energy sectors. Applicants must submit a class transcript and for the next fi ve years. CN has committed the For More Information Contact: a two-page essay that provides the candidate’s funds to encourage young professionals to learn plan to apply their studies to the U.S. and about Canada, which includes its contributions AnnMarie Schneider Canada connection. A pool of applicants will be and impact in North America and around the Canadian Studies Center selected for follow up interviews. Completed world. Michigan State University applications must be submitted to the International Studies and Programs “Many MSU students are studying topics of Canadian Studies Center on or before May 306 International Center special importance to the U.S. and Canada 14, 2010. The Canadian Studies Center is located working relationship, including trade and East Lansing, MI 48823 at 306 International Student Center, Michigan transportation, climate change, and food Phone: (517) 353-9349 State University, East Lansing, Michigan 48823. production, ” said AnnMarie Schneider, director Fax: (517) 432-8249 Recipients will be announced prior to the of the Canadian Studies Center. Employers, Email: [email protected] beginning of the 2010 fall semester. Awards will including CN, believe students with a be credited during the tuition payment process. background in international studies offer added “CN’s generous gift recognizes the value of an education that includes an international In addition to this scholarship program, CN also benefi t, claiming that few areas of work are sponsors an annual CN Forum at MSU. The CN untouched by international issues. perspective, a perspective that can have a positive impact on the State of Michigan and Forum brings together students, researchers and The global economy has touched every academic its economy,” said Jeffrey Riedinger, Dean of community leaders around contemporary issues discipline including: business, law, medicine, International Studies and Programs. that impact academics, policy, and business engineering, agriculture, natural’s resources within the United States and Canada. and social sciences. To deepen student’s global To apply for the CN scholarship students must literacy and understanding, MSU faculty be: members have infused globally-relevant content • in good academic standing with at least a into their teaching. This campus-wide effort has 3.0 GPA and enrolled in at least one of the produced a variety of courses that can be applied specialization’s required courses for 2010 to a specialization and still fi t within a student’s spring semester International Studies and Programs at MSU degree program.

Amtrak Makes Investments to Increase Speeds on Michigan Lines

Amtrak continues an aggressive plan to install Federal Railroad Administration (FRA) permitting to replace culverts, renewal of rails, Positive Train Control (PTC) technology certifi cation of this Positive Train Control ties and resurfacing at 10 grade crossings, and on the route the passenger railroad owns system will allow upgrading of all 97 miles of replacing the last jointed rail. Amtrak will in Michigan and . The American the route to 110 mph operation by the end of also begin design work and procurement for Recovery and Reinvestment Act of 2009 2012, three years ahead of a Congressionally rehabilitation of the St. Joseph River Bridge (ARRA) provided Amtrak with $1.3 billion mandated deadline for installation of such in Niles, Michigan. for capital investments, including $446 million systems on railroads that host passenger Increases in speed along the Porter, for security and life-safety improvements and trains. In addition to its continued roll- IN-Kalamazoo, MI portion of the Amtrak $842 million for rebuilding and modernizing out of PTC, Amtrak is installing fi ber optic Pontiac--Chicago route brings closer infrastructure and equipment. Amtrak is cable along the track to signifi cantly improve the realization of an important component using $25 million of those funds to continue communications. of the Midwest Regional Rail System implementation of PTC technology on the Amtrak also continues to invest its own capital (MWRRS). The Midwest Regional Rail 97 mile Amtrak-owned Porter, Indiana to dollars on an aggressive maintenance program System is a joint effort of nine Midwestern Kalamazoo, Michigan Line. Forty-fi ve miles to support smooth, safe, higher speed running states to develop a network of higher speed, of the route now allow passenger train speeds along the route. In 2010, $5.6 million will be frequent passenger rail services connecting up to 95 mph. Complete installation of PTC and spent to resurface 30 route miles, design and the business, educational, and cultural (Continued on page 4) 2 MOVING MICHIGAN

Great Lakes Central Railroad EMMET CHEBOYGAN PETOSKEY PRESQUE ISLE CHARLEVOIX BOYNE FALLS ELMIRA OTSEGO ANTRIM MONT- ALBA MORECY WILLIAMS- MANCELONA ALPENA LEELANAU BURG ANTRIM BATES CRAWFORD TRAVERSE KALASKA ALCONA BENZIE GRAND OSCODA CITY MAYFIELD KALKASKA FRANKFORT GRAWN TRAVERSE SOUTH BOARDMAN KINGSLEY FIFE LAKE ELBERTA SUMMIT CITY WALTON JUNCTION YUMA MANTON OGEMAW MANISTEE GILBERTMISSAUKEE IOSCO GLC Stats: BOON CADILLAC WEXFORD ROSCOMMON LUCAS MCBAIN Headquarters: Owosso, MI LAKE MARION CLARE GLADWIN ARENAC TEMPLE OSCEOLA LAKE GEORGE Chairman: Louis P. Ferris MASON CLARE HURON FARWELL

ROSEBUSH BAY President & CEO: Michael W. Bagwell MIDLAND MECOSTAMT. PLEASANTISABELLA SANILAC Employees: 42 OCEANA SHEPARD TUSCOLA Miles of Track: 400 NEWAYGO FOREST HILL MONTCALM ALMA FERGUS ITHACAGRATIOTNORTH STAR MUSKEGON KENT CHESANING Major Commodities: Sand, plastics, agricultural MIDDLETON ASHLEY SAGINAW LAPEER OAKLEY BANNISTER ELSIE HENDERSON ST. CLAIR CARLANDSHIAWASEE products, fertilizer OTTAWA CLINTON OWOSSO VERNON CORUNNA GENESEE IONIA DURAND BYRON MACOMB COHOCTAH The railroad industry BARRY EATON OAK GROVE OAKLAND is moving toward a ALLEGAN HOWELL INGHAM CHILSON LIVINGSTONLAKELAND HAMBURG growth phase as it WHITMORE LAKE VAN KALAMAZOO ANN ARBOR OSMER emerges from the Great Lakes BURENCentral Railroad WASHTENAW

recession that has hit CALHOUN JACKSON the country. Many LENAWEE MONROE BRANCH groups are looking BERRIEN ST. JOSEPH CASS for ways to move to HILLSDALE “green” technology, TOLEDO commuter solutions, Michael W. Bagwell and diversifying President & CEO industrial development. With all of these movements coming to the forefront at the same time, it is only a matter of time before the railroads are declared a major part of the solution to Michigan’s economic diffi culties. Key partnerships that support passenger rail service, utilizing green technology, expanding Michigan’s contribution to American industry, while at the same time maintaining or improving the condition of Michigan roads, has been the foundation for the growth potential of Michigan railroads. Formerly known as the Tuscola Railway, the Great Lakes Central Railroad (GLC) was purchased in March 2006 by Federated Railways, a wholly owned subsidiary of Federated Capital Corporation. The Great Lakes Central Railroad, under the leadership of Michael Bagwell, President & CEO, is Processed sand being loaded into rail cars in Yuma, Michigan at the Wexford Sand Company destined for locations strategically positioned to accommodate the in northeast U.S. used in drilling for natural gas and to foundries for auto manufacturing. (Continued on page 4) (Photo – Wexford Sand Company) 3 (Great Lakes Central Railroad continued from page 3) push to go green, to diversify the customer and many more, growth and diversity provide this venture from its beginning stages, and base, and pursue new revenue streams while GLC the opportunity to adapt to the changing continues to be involved. To date, many steps working through the diffi cult economic times needs of Michigan. Investing time and have been completed by GLC to move the in Michigan. assets has allowed GLC to transition to new WALLY project forward: industries along side our customers, such as; GLC partners with not only their customer • GLC was the successful bidder for the base, but the end user to ensure energy saving • Wexford Sand, and its parent company, refurbishment of passenger cars, owned measures and quality service. The following Fairmount Minerals, are now providing sand by GLC, to the specifi cations by the State are measures being taken to accomplish these for the oil & gas industry for the Fracing of Michigan, Ann Arbor Transportation goals: process used in drilling for natural gas, Authority , and SEMCOG; while still providing foundry sand to Ford • While locomotives are more fuel effi cient • GLC will initially be adding an evening shift Cleveland. GLC is the destination carrier in the car shop followed by a third shift to than trucking, GLC also has expanded the for Frac sand originating in Wisconsin to car and locomotive shop in Cadillac to house accommodate the additional workload for be blended with on-line customer Wexford’s the passenger car refurbishment program. locomotives in lieu of having them idle Frac sand at the Wexford site. GLC then during down times when temperatures drop, originates blended sand for the end user • State owned, GLC operated track will be to further reduce fuel usage. located in the South and Northeastern parts utilized for the WALLY commuter rail • GLC transloads to truck to move of the US. system. Before implementing the service, the track and signals will be upgraded. commodities to the remote end users not • Hybrid storage/switching contracts for off served by rail from 4 active transload sites, line customers adds to our customer base. While Michigan has suffered in these hard the largest of which is centrally located in economic times, the growth of the railroad • GLC is the origination carrier for six online Clare, MI. Transloading keeps freight costs industry is inevitable. Rail growth involves grain elevators and an overhead carrier for down, while making rail available to more adapting to new standards while embracing several other grain elevators. Grain products shippers/receivers. diversity. The Great Lakes Central Railroad is remain a large part of our rail traffi c mix. strongly positioned and committed to do just • Energy effi cient heat as well as additional The tracks at two online elevators will be that. GLC’s relationships with customers, end insulation and lighting will be incorporated extended in 2010 to provide larger load out users, other railroads, local entities, the State in the Owosso locomotive and car shops in capabilities for the elevator operators. of Michigan Department of Transportation the near future. GLC is still very much involved in the among others, all work together in Great GLC has also pursued additional revenue commuter rail project that boasts both green Lakes Central Railroad’s position to move streams to diversify the customer base and technology and diversifi ed operations. Michigan forward. look to the future. While many long-term WALLY, as it has come to be known is the customers are still shipping products such as proposed commuter service running between foundry sand, plastics, agricultural products, Howell and Ann Arbor. GLC has supported

(Amtrak Makes Investments to Increase Speeds on Michigan Lines continued from page 2) institutions of the region with Chicago as the hub. The Pontiac-Detroit-Chicago route has also been designated a future High Speed Rail Corridor by the FRA. The goal of Amtrak, Michigan Department of Transportation and the MWRRS is for a 3 ½ - hour scheduled trip time from end to end along the corridor.

Amtrak contractors installing conduit for fi ber optic cables along their Michigan line near Galien, Michigan. Installation of the fi ber optic will signifi cantly improve communications. (Photo – Amtrak)

4 (Operation Lifesaver Provides Volunteer Opportunities continued from page 1)

Bill Barringer, director of Grade To become an OL presenter a person needs to attend an all-day Crossing Safety for Norfolk training session provided free of charge. Training sessions are Southern (NS), addressed those conducted by certifi ed rail safety offi cials. Sam Crowl, Michigan attending the February 2010 quarterly Michigan Operation OL state coordinator and lifelong rail safety advocate, says “those Lifesaver meeting in Durand, who have become OL presenters fi nd it extremely rewarding to Michigan. Barringer outlined know that they have made a difference in their community.” the many initiatives that have been put in place to improve Becoming an OL presenter is an excellent way for people to safety at NS highway/railroad contribute to the well-being of their community. If you would like grade crossings. (Photo - Rahn L. Stokes) to become involved, or know of a friend or co-worker who has a special interest in railroads or safety, please contact Sam Crowl at [email protected] or (248) 823-7037.

Operation Lifesaver Presenter Receives Award

Paul Buckman has been working for the railroad for ten years and has been an Operation Lifesaver safety presenter for the past two years. In 2009 Paul made 70 safety presentations mostly to driver education classes. Paul shows the young drivers what signs to look for and what they mean in order to keep themselves and their passengers safe as they cross the railroad tracks. The students also view a DVD to reinforce the safety message. At the end of each safety presentation he hands out a key ring as a reminder of the safety message they just heard and as a reminder to operate their vehicle safely.

Paul says “the only way I’m able to be in front of so many young drivers is due to the support from the CSX Railroad. CSX is committed to safety and it’s evident with the support they give to Operation Lifesaver”.

“One of the main efforts of Operation Lifesaver is getting the safety message to impacted groups like driver education classes” says Sam Crowl, State Coordinator of Operation Lifesaver. “Presenters like Paul are the backbone of our organization. They get the rail safety message out to groups one-on-one.” Paul Buckman, CSX Engineer/Conductor receiving outstanding presenter award from Sam Crowl, Michigan Operation Lifesaver State Coordinator, at the February, 2010 OL quarterly meeting. (Photo - Rahn L. Stokes)

Tina Hissong, Rail Safety Section manager at the Michigan Department of Transportation, and Bob Chaprnka, president of the Michigan Railroads Association, present an “Outstanding Service Award” to Al Bard for his tireless work as State Coordinator of Michigan Operation Lifesaver. Mr. Bard retired in 2009 after seven years as state OL coordinator. (Photo - Bruce Quinn)

5 PRSRT STD U.S. POSTAGE PAID LANSING, MI PERMIT NO. 485

120 N. Washington Square Suite 601 Lansing, Michigan 48933

Phone: (517) 482-9413 Fax: (517) 482-9225 [email protected] web: michiganrailroadsassociation.com

Printed on Recycled Paper

Michigan Rail Update is a publication of the Michigan Railroads Association, 120 N. Washington Square, Suite 601, Lansing, Michigan 48933. President: Robert J. Chaprnka. Phone (517) 482-9413, FAX 482-9225. Members of the Michigan Railroads Association are Ann Arbor Railroad, CN Railroad, Consolidated Rail Corp. (Conrail), CP Rail System, CSX Transportation, Escanaba & Railroad Co., , Grand Rapids Eastern Railroad Co., Great Lakes Central Railroad, Huron & Eastern Railway Co., , Lake Superior & Ishpeming Railroad Co., , Co., Mid-Michigan Railroad Co., Norfolk Southern Corp., Saginaw Bay

Southern Railroad.

the rail infrastructure/system. rail the capabilities, Congress should consider consider should Congress capabilities,

ts, and enhance safety of other parts of of parts other of safety enhance and ts, fi bene mandate imposes on railroads’ investment investment railroads’ on imposes mandate

improve service, provide environmental environmental provide service, improve capital and the tremendous demands the PTC PTC the demands tremendous the and capital

that would increase rail capacity, capacity, rail increase would that projects • Given the rail industry’s limited investment investment limited industry’s rail the Given •

mean reduced expenditures on other other on expenditures reduced mean

improvements.

expenditures on PTC will necessarily necessarily will PTC on expenditures

or capacity, environmental, or service service or environmental, capacity, or

funds to devote to infrastructure projects, projects, infrastructure to devote to funds

can’t be spent on other safety measures measures safety other on spent be can’t

. Because railroads have limited limited have railroads Because . spending

reality is, money railroads spend on PTC PTC on spend railroads money is, reality

of their infrastructure-related infrastructure-related their of rail capital capital rail

fuel, and reduce harmful emissions. The The emissions. harmful reduce and fuel,

full year’s worth worth year’s full a to equal roughly is 2015

cient, take trucks off the highway, save save highway, the off trucks take cient, fi ef

will have to spend just to install PTC by by PTC install to just spend to have will

are real, measurable, and well worth it. it. worth well and measurable, real, are shipping costs, make our economy more more economy our make costs, shipping

• The $5 billion that Class I freight railroads railroads freight I Class that billion $5 The •

ts to our economy and environment environment and economy our to ts fi bene railroads’ unparalleled potential to lower lower to potential unparalleled railroads’

. billion $14 to

still complying with the PTC mandate. The The mandate. PTC the with complying still • However, the PTC mandate threatens threatens mandate PTC the However, •

to railroads over 20 years will be be will years 20 over railroads to $10 billion billion $10 both freight and passenger demands while while demands passenger and freight both

transportation system. transportation estimates that total costs of PTC nationwide nationwide PTC of costs total that estimates continue to expand needed capacity to meet meet to capacity needed expand to continue

networks, creating the world’s best freight freight best world’s the creating networks, systems on railroads in Michigan. The FRA FRA The Michigan. in railroads on systems • Funding assistance would help the railroads railroads the help would assistance Funding •

investing record amounts back into their their into back amounts record investing tens of millions of dollars to install PTC PTC install to dollars of millions of tens

Safety Technology Grant program. Grant Technology Safety

to meet this demand. They’ve been re- been They’ve demand. this meet to thereafter to maintain them. It will cost cost will It them. maintain to thereafter year

2. Fully fund and expand the RSIA’s Rail Rail RSIA’s the expand and fund Fully 2.

environmentally-responsible environmentally-responsible and way way hundreds of millions of dollars more each each more dollars of millions of hundreds

start-up costs of PTC installation; PTC of costs start-up ahead. Railroads are the most most the are Railroads ahead. affordable affordable PTC systems throughout the country, plus plus country, the throughout systems PTC

tax incentive to help offset the initial initial the offset help to incentive tax transportation will surge in the years years the in surge will transportation have to spend more than than more spend to have to install install to billion $5

1. Enact a federal 25 percent infrastructure infrastructure percent 25 federal a Enact 1. • America’s demand for freight and passenger passenger and freight for demand America’s • Administration, Class I freight railroads will will railroads freight I Class Administration,

• According to the Federal Railroad Railroad Federal the to According •

huge costs. Options include: Options costs. huge the PTC Mandate PTC the

various funding mechanisms to offset PTC’s PTC’s offset to mechanisms funding various Assisting With the Extraordinary Costs of of Costs Extraordinary the With Assisting Costs to Develop and Install PTC are Huge are PTC Install and Develop to Costs (Federal Positive Train Control Mandate To Be Implemented By 2015 continued from page 1) page from continued 2015 By Implemented Be To Mandate Control Train Positive (Federal