IS BIG on FREIGHT Class'

ProgressiveThe Information Leader for the Railroad Industry MAY 2014

Société de transport de Montréal’s ‘world class’ aim

Huge UPS Louisville hub IS BIG ON FREIGHT

WEBWEB EXCLUSIVE: EXCLUSIVE: Talent drain puts rail industry on the executive recruitment beat www.progressiverailroading.com/cover

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C2_PR_0514 GE-Lighting.indd C2 4/29/14 8:01 AM PROGRESSIVE RAILROADING Volume 57, No. 5 May 2014 | CONTENTS | 1

COVER STORY • PAGE 14

FEATURES In Atlanta, transit officials are 26 Huge UPS hub working to recover from years of is big on freight financial, political and public image United Parcel Service’s extensive Worldport complex near Louisville’s struggles to create a more efficient airport generates a lot of cargo each and accountable organization day — and more is on the way

32 A world-class aim How Société de transport de Montréal’s leadership team hopes to meet Cover design by Emily Hawkins aggressive growth and continuous- improvement goals

DEPARTMENTS 40 Teaching tomorrow’s 4 Upfront managers today Superintendents’ association aims to 12 Rail-Car Leasing help railroads facilitate knowledge transfer to next-generation leaders by Toby Kolstad 53 Reader Information Center

45 On board with 54 Pr ofessional Services Directory technology There are plenty of products, systems 54 Classified and software to help railroads monitor locomotive health, fuel use 56 Fr om the Editor and performance

“Our management and operations review, and some of the changes we’re making, have been an ongoing process.” — Robert Ashe, MARTA chairman -p.16

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01_PR_0514 TOC.indd 01 5/2/14 9:16 AM PROGRESSIVE RAILROADING 2 | ONLINE | May 2014 Progressive Railroading’s Daily News The most-read Daily News stories last month: • “MTA awards $628 million in Progressive contracts for tunnels, caverns project” (4/17/14) • “New FRA rule requires railroads to adopt a ‘critical incident stress’ Recently posted web-exclusive content: plan” (3/31/14) • “High-speed rail leader cries foul over Rep. Ryan’s proposal to end Timely talks Presentations at the American Amtrak funding” (4/3/14) Short Line and Regional Railroad Association’s www.progressiverailroading.com/news 101st annual conference covered crude by rail, BNSF’s service recovery and other pressing issues. www.progressiverailroading.com/PR Sign up for our RSS feed progressiverailroading.com/ rss/prnews.asp

No e-smoking allowed Find us on Facebook facebook.com/ A growing number of transit agencies are ProgressiveRailroading getting ahead of the regulatory curve by adopting policies that treat electronic cigarettes the same as mainstream OnO theh executivei recruitmenti Join the Progressive Railroading tobacco products. beat Railroads, suppliers and Magazine LinkedIn group www.progressiverailroading.com/PR contractors need to pick up the progressiverailroading.com/ talent replenishment pace, given the linkedin industry’s aging workforce and brain drain to come, rail recruiters say. www.progressiverailroading.com/PR Check us out on Google+ progressiverailroading.com/ google+

Recapping AAR’s research review Join the discussion on our Rail stakeholders from 14 countries talked research and social networking site, development at the Association of American Railroads’ 19th myprogressiverailroading.com annual research review, held April 1-2 and hosted by the Transportation Technology Center Inc. www.progressiverailroading.com/PR myProgressive

LOGGING IN

Angela Cotey Jeff Stagl Julie Sneider senior associate editor managing editor associate editor

here are four ways to move crude lready, a quarter-million s we move from a car-centric Toil over long distances: by pipe- “A containers pass through this “A model of mobility to a nation line, by boat, by truck or by rail. Each freight corridor every year. Now, even that embraces more equitable and has its unique problems and none is more will.” — Anthony Foxx in an sustainable transportation options, without harm ... You really do need to April 14 blog about the Rickenbacker Millennials are leading the way.” pick your poison. www.forbes.com Intermodal Connector project in Ohio www.rockefellerfoundation.org

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03_PR_0514 Amsted Rail.indd 03 4/23/14 11:23 AM PROGRESSIVE RAILROADING 4 | May 2014 Upfront

[ MECHANICAL ] Self-help program By Jeff Stagl, Managing Editor

Norfolk Southern Railway designed to boost fuel effi- road power?” he says. efforts evolved from the GE long has aimed to reduce ciency and reduce air emissions. The 4,000-horsepower arrangement, says Graab. To locomotive fleet costs and About three-fourths of the Dash 8.5s will be very similar ensure the Roanoke shop is increase motive-power road fleet are GE models and a to Dash 9s, except they won’t optimally equipped for the efficiency by rebuilding and rebuild will cost half as much as feature low-weight transfer program, NS last year installed redeveloping its yard and a new locomotive, according to trucks. The Dash 8.5s will a $1 million CNC line-boring local switchers. Now, the the Class I. incorporate electronic systems machine that’s designed to Class I is trying to apply its With lower operating — such as electronic fuel repair engine frames that typi- rebuilding expertise to costs in mind, Chairman and injection — and be configured cally had been scrapped. GE Transportation road Chief Executive Officer Wick to wirelessly issue health-status NS now saves about locomotives — and develop Moorman several years ago reports, says Graab. $155,000 for each salvaged a new model in the process. approached the Mechanical The first Dash 8.5 is expected GE frame. The department also Through a six-year program, Department to determine if ex- to roll out of the railroad’s plans to replace bridge cranes NS plans to rebuild 84 pertise gleaned from rebuilding Roanoke, Va., shop and roll at the shop and is considering a GE Dash 8 locomotives that yard and local switchers — in- onto a test track sometime in drop table, says Graab. were manufactured in 1989 or cluding successful transforma- May. NS will need to obtain 1990, and lack modern elec- tions of Electro-Motive Diesel U.S. Environmental Protection More hands on deck tronics and amenities. locomotives into SD40E units Agency (EPA) approval for the In addition, NS is adding work- Pegged to become the rail- — could carry over to the road unit’s new engine configuration, ers at the shop, which employs road’s first-ever Dash 8.5 fleet, says NS Vice President of says Graab. 276 people. About a dozen locomotives, the rebuilt units Mechanical Don Graab. recruits were hired in January to will feature custom wide-body “We decided that if we could The center of it all assume various positions, such cabs and high-tech engines do yard and locals, why not The Roanoke shop has become as machinists and electricians. a “center for excellence” for the As the program ramps up NORFOLK SOUTHERN RAILWAY SOUTHERN NORFOLK rebuild program and other work after tests are conducted and performed on GE units, such as the EPA approval process is com- engine repairs for Evolution® pleted, the shop will turn out 18 Series locomotives that were Dash 8.5s per year, says Graab. introduced in 2005, he says. In the meantime, the depart- NS doesn’t enter into ment is considering the next maintenance agreements with potential outgrowth of the GE the way other railroads do, rebuild effort: converting motors preferring instead to maintain from DC-traction to AC-traction its own GE units. The locomo- on a portion of NS’ 1,200 tive builder provides parts and Dash 9s. Proposals from three guidance, says Graab. companies on three continents “We found it’s a lower cost are under analysis, and GE is one to maintain them ourselves. The of the proposers, says Graab. feeling was we didn’t want to “The conversion would turn over such valued assets to make the units more reliable As a rebuild program ramps up, Norfolk Southern Railway expects to a third party,” he says. and we would gain tractive produce 18 GE Dash 8.5 locomotives per year at its Roanoke, Va., shop. The railroad’s rebuilding effort,” he says. ■

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05_PR_0514_lr WAGO.indd 05 4/23/14 11:18 AM | | PROGRESSIVE RAILROADING 6 UPFRONT May 2014 Carloads Carried

2014 % change Numbers from 2013

U.S. CLASS I RAILROADS BNSF Railway ...... 1,284,872 0.9 TRAFFIC CSX Transportation ...... 973,947 1.2 Kansas City Southern...... 180,317 2.4 Upfront Norfolk Southern ...... 885,082 -5.5 Union Pacific ...... 1,358,403 5.7

WHERE’S THE BEEF? CANADIAN CLASS I RAILROADS CN ...... 790,061 -2.2 ON ITS WAY TO ASIA Canadian Pacific ...... 400,248 -7.3 Beef prices have been soaring. In mid-April, MEXICAN RAILROADS Ferrocarril Mexicano S.A. de C.V...... 180,990 -0.2 the average retail cost Kansas City Southern de México ...... 126,328 5.2 of fresh beef was $5.28 per pound, the highest since 1987, according to the Zacks Investments Research blog. Zacks 180,317 attributed the price hikes in part to California’s 2.4% CHANGE severe drought, which has prompted many farm-

ers to sell their herds. Also causing the price Cumulative, 13 weeks 2014 • Source: AAR Policy and Economics Department jump is the demand for beef in overseas markets from countries such as China and Japan, the U.S. increases corn exports to Middle East, blog stated. ■ North Africa U.S. corn exports to the Middle East and North Africa have sharply rebounded BTS: Petroleum trade drove traffic hike in 2013 during the 2013-2014 marketing year (Sept. Three of the five transportation modes — truck, rail and pipe- 1-Aug. 31), following two consecutive years of line — carried more U.S. trade with North American Free Trade low sales and shipments, the U.S. Grains Council Agreement (NAFTA) partners Canada and Mexico by value in reported on April 17. From Sept. 1, 2013, through 2013 than in 2012, while the value of freight transported by April 10, outstanding sales and accumulated air and vessel decreased, according to the U.S. Department of exports of U.S. corn to North Africa and the Transportation’s Bureau of Transportation Statistics. Trade by Middle East totaled more than 110 million pipeline grew the most year over year, 7.7 percent, partly due bushels, up from 8 million bushels during the to the value of petroleum products, as the overall value on same time period the previous year. The report all modes rose 2.6 percent. Rail (4.6 percent) and truck (2.2 attributed the increase to a record-high U.S. percent) registered smaller increases. ■ corn crop in 2012 and ongoing political strife in Ukraine, which has driven up corn prices there. ■

Carloads By Commodity* *carloads originated

U.S. CANADIAN MEXICAN RAILROADS RAILROADS RAILROADS 2014 % 2014 % 2014 % Numbers Change* Numbers Change* Numbers Change* Grain 265,037 15.3 112,456 0.8 12,533 -15.6 112,929 Grain mill 127,266 7.1 21,635 5.2 1,282 -29.4 * Food 81,187 -4.0 26,753 -4.5 12,693 0.1 -3.8% CHANGE Chemicals 390,538 0.7 143,813 -3.3 17,330 0.2 Petroleum 186,965 7.1 94,916 6.6 4,924 -11.8 Coal 1,422,615 -0.6 112,929 -3.8 2,025 2.5 Lumber 43,684 -1.1 32,896 -8.9 134 21.8 Paper 78,918 -0.2 37,931 -11.8 402 0.0 1,422,615 Ores 57,813 -15.0 117,302 -26.4 22,689 8.3 -0.6% CHANGE* Metals 131,887 -3.6 27,870 -8.3 23,147 6.5 Iron & steel scrap 53,581 -3.7 10,609 -7.1 3,439 -21.6 Autos 201,532 -3.3 57,324 -15.2 51,188 12.8 Aggregates 236,016 0.7 35,159 21.0 1,050 5.4 Minerals (nonmet.) 59,402 9.1 15,882 -19.7 208 -42.4 * 2.5% CHANGE Stone, class, glass 91,673 5.5 17,126 -0.3 25,923 -4.0 2,025 Waste/scrap 37,242 -3.1 4,495 35.2 1,252 29.6 Cumulative, 13 weeks 2014 • Source: AAR Policy and Economics Department * Percent change from 2013

06_PR_0514 UpfrontTraffic.indd 06 4/28/14 11:00 AM PROGRESSIVE RAILROADING | RailConnect Index® May 2014 7 of Short-Line Traffic

Year-to-Date Period Ending 3/29/2014, Week 13

CARLOADS HANDLED 2014 2013 %Change Coal 195,307 192,747 1.33 SHORT LINE Grain 189,249 188,567 0.36 Farm & Food (Excl. Grain) 76,881 73,588 4.47 Upfront Ores 47,539 46,283 2.71 Stone, Clay, Aggregates 183,724 171,927 6.86 CALIFORNIA CONNECTION OmniTRAX Inc. has “high hopes” to develop Lumber & Forest Products 75,799 77,004 -1.56 Paper Products 99,365 100,079 -0.71 more business for its Stockton Terminal and Eastern Railroad (ST&E) Waste & Scrap Materials 70,004 76,689 -8.72 in San Joaquin County, Calif., Chief Executive Officer Kevin Shuba said Chemicals 322,329 324,006 -0.52 last month. The 25-mile ST&E is linked to the Port of Stockton via BNSF Petroleum & Coke 65,032 68,089 -4.49 Metals & Products 130,336 131,131 -0.61 Railway Co. and Union Pacific Railroad. In the past, OmniTRAX has helped Motor Vehicles & Equip. 34,926 41,539 -15.92 locate several manufacturing plants along its short lines in Colorado, and Intermodal 256,818 277,068 -7.31 the company can do the same in San Joaquin County, Shuba believes. ■ All Other 31,696 32,438 -2.29 TOTAL 1,779,005 1,801,155 -1.23 POWER PLAY The Port of Tacoma, Wash., received a $600,000 Diesel Emission Reduction Act program grant from the U.S. Tacoma Rail 2014 20132 Environmental Protection Agency to repower a locomotive. The port will partner with Tacoma 256,818 277,0682 Rail to replace a “Tier 0” engine on a switcher with a “Tier 3-plus” engine equipped with an automatic start-stop system. The project will reduce emissions by more than 50 percent. ■

HIGHER RATE OF RETURN Watco Terminal and Port Services has com- -7.31%3%CHANGE CHANGE missioned a new barge dock at its terminal in Houston’s Greens Port Industrial Park. The terminal now can load and unload barges with Source: GE Transportation’s Optimization Solutions (Data from 426 U.S. and Canadian railroads) crude oil and condensate at a rate of 6,500 barrels per hour, according to an item in Watco Cos. L.L.C.’s April newsletter. ■

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07_PR_0514 UpfrontShortLine.indd 07 4/28/14 12:52 PM PROGRESSIVE RAILROADING 8 | UPFRONT | May 2014

INTERMODAL Upfront Intermodal Traffic SIGNS OF A SPRING REBOUND Intermodal volume for J.B. Hunt Cumulative, 13 weeks 2014 increased 4 percent in January and February, but jumped 8 percent Canadian Railroads in March. The figures reflect a broader pickup in intermodal traffic 2014 % up/down Numbers from 2013 following delays, disruptions and depressed volumes in the first Total Units 669,930 1.5 quarter, which were blamed on severe weather, according to an April Trailers 23,573 23.5 15 article on the Journal of Commerce website. ■ Containers 646,357 0.9

SHOW OF SUPPORT Port of Long Beach officials are voicing their support for a national freight policy that includes a “merit-based, U.S. Railroads 669,930 competitive grant program to fund multimodal freight projects” and 2014 % up/down Numbers from 2013 innovative financing options, according to an article posted on the Total Units 3,202,999 3.8 Long Beach Press Telegram website. ■ Trailers 386,158 8.4 3,202,999 Containers 2,816,841 3.2 TAKING RECYCLING TO A NEW LEVEL Hong Kong-based architectural and design firm OVA Studio Ltd. has designed a hotel Mexican Railroads 122,981 2014 % up/down made of recycled shipping containers, Numbers from 2013 transformed into themed hotel rooms. The Total Units 122,981 0.8 structure’s modular design would enable Trailers 64 23.1 rooms to be traded in and out without Containers 122,917 0.8 OVA Studio Ltd. disturbing the surrounding containers. As of yet, there are no plans to build the hotel, which OVA has branded Source: AAR Policy and Economics Department the Hive-Inn because of its hive-like structure. ■

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08_PR_0514 UpfrontIntermodal.indd 08 4/28/14 11:04 AM PROGRESSIVE RAILROADING May 2014 | 9

LACMTA CONTINUES AGGRESSIVE RAIL PROGRAM The Los Angeles County Metropolitan Transportation Authority soon will TRANSIT have four rail projects in the construction phase, now that the Upfront board has approved a $927.2 million contract for a Skanska CHATTANOOGA CHOO-CHOO The City Council in Chattanooga, Tenn., has USA/Traylor Bros Inc. consortium approved a resolution that gives city officials a green light to apply for a to build the Regional Connector federal grant to study the feasibility of building a light-rail system, light-rail subway tunnel in according to local news reports. City officials will study a line that would run from downtown to Chattanooga Metropolitan Airport. ■ LACMTA downtown L.A. The nearly two-mile-long tunnel will provide a direct link between Santa CARDIO COMMUTERS Small but steady increases are being Monica and East Los Angeles, and Long Beach and Azusa. recorded in the number of people who bike and walk to work, according to a recent study conducted by the Alliance for According to the agency’s Draft Short-Range Transit Plan Biking & Walking. Between 2000 and 2010, the average large- issued last month, the following rail lines are scheduled sized U.S. city experienced a 5.9 percent population increase, to open during the next decade: without comparable increases in land mass, meaning cities need to utilize cost-effective transportation modes that move »Gold Line Foothill Extension — 2016 a lot of people without taking up more space, according to the alliance. »Exposition Transit Corridor Phase II — 2016 The states with the largest percentage of people who walk and bike to work »East San Fernando Valley Transit Corridor — 2018 include Alaska, Oregon, Montana, New York and Vermont, while states such as Alabama, Crenshaw/LAX Transit Corridor — 2019 » Georgia, Mississippi, Tennessee and Texas had »Regional Connector — 2021 the lowest percentage of residents commuting »Westside Purple Line Extension, Section 1 — 2024 to work via bike or on foot. ■

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09_PR_0514 UpfrontTransit.indd 09 5/2/14 9:28 AM PROGRESSIVE RAILROADING 10 | UPFRONT | May 2014

People FREIGHT Kansas City Southern Spotlight Railway Co. appointed Wayne Godlewski vice president of RailWorks Corp. recently named John Young information technology, and M. executive vice president responsible for U.S. Christopher Mitchell assistant track operations, which includes RailWorks Track VP-system mechanical. … Services Inc. and RailWorks Track Systems Inc. Young has extensive experience in transportation Anacostia Rail Holdings Inc. and heavy civil works projects, according to RailWorks. He has worked for major contractors such appointed Daniel Micklos VP as Kiewit and Zachry Construction, where he most recently served as senior VP. “He will work at Pacific Harbor Line Inc. and closely with our leadership teams to capitalize on significant growth opportunities to expand our Scott Lurkins manager of sales operations to serve new customers, develop the scope of our services and improve our service de- and marketing at Louisville & livery to meet the increasing needs of the market,” said RailWorks President and Chief Executive Indiana Railroad. … Nebraska Officer Jeffrey Levy in a prepared statement. Central Railroad Co. named Eldon Vohs VP of operations. … Gulf & Ohio Railways Inc. contract: Justin Vonashek, Cox was named chief financial systems. … STV promoted appointed Todd Burchette chief of safety, security, officer for the Niagara Frontier Andrew Sokol to VP of opera- chief operating officer. emergency preparedness and Transportation Authority. tions and business develop- regulatory compliance officer; ment in the transportation TRANSIT Keolis Commuter Rita Hardiman, director of SUPPLY SIDE Jim Cowan and infrastructure division’s Services made the fol- equal employment opportunity, joined The Greenbrier Cos. Inc. western region. … Midland lowing appointments for diversity and disadvantage as senior VP of operations. Manufacturing appointed its Massachusetts Bay enterprise programs; and David … Vossloh Fastening Systems Steve Herbst product manager Transportation Authority Mitrou, general counsel and di- America named Gary Hines for pressure car products and commuter-rail operations rector of labor affairs. … John director of sales for heavy haul remanufacturing services.

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10,11_PR_0514 UpfrontPpl_Mrktplc.indd 10 5/1/14 8:23 AM PROGRESSIVE RAILROADING May 2014 | 11

Motive Power & Spotlight Marketplace Equipment Solutions Motive Power & MECHANICAL Freedom dozen San Francisco Bay Equipment Solutions Inc. Railcar Solutions L.L.C. was Area suburban transit (MP&ES) introduced the recently formed to provide agencies. Greenville™ locomotive, an mobile rail-car repair and ultra-low emissions Gen- maintenance services for MOW The Los Angeles set locomotive powered by crude-by-rail shippers, County Metropolitan a combination of natural operators and other Transportation Authority gas and diesel fuels. freight-car lessors in the awarded a $927.2 million Above, a rendering of MP&ES’ MP&ES has been evaluat- Bakken Shale and Powder contract to Regional new Greenville™ locomotive. ing technology options River Basin. Connector Constructors to and developing system design and build the designs for natural gas locomotives for more than two years, according C&S Lilee Systems Regional Connector Transit to the company. With its technology partner OptiFuel Systems, MP&ES announced its new Corridor light-rail line. is conducting final power system testing and calibration along with full 802.15.4p Rail Regional Connector emissions certification. The company expects to begin taking orders on Communications and Control Constructors is a joint the Greenville™ MP1500 dual fuel locomotives later in 2014, with other standard was approved by venture between Skanska models to follow. MP&ES recently was selected by the Indiana Harbor the IEEE-SA Standards USA Civil West California Belt Railroad Company (IHB) as Board on March 27. … District Inc. and Traylor a qualified vendor being con- Ioxus’ ultracapacitors are Brothers Inc. … New York sidered for the conversion of 31 being fitted to wayside City’s Metropolitan locomotives to natural gas. traction power systems on Transportation Authority MTA Long Island Rail Road. awarded two contracts … Cubic Transportation valued at $844 million for Systems Inc. obtained a portions of the East Side valued at $294.2 million, plans to construct a $20 $7.5 million add-on Access project. One was awarded to Frontier- million plant near Springhill, contract with the contract, worth $333.59 Kemper Constructors. La., that will produce Metropolitan Transportation million with options leading transportation infrastructure Commission to expand the to a total of $550.4 million, components from plastic Clipper® card fare payment was awarded to Tutor Perini NEW FACILITY IntegriCo waste materials. system to more than a Corp.; and the second, Composites announced

Meetings

JUNE 1-4 — American Railway JUNE 15-18 — American Public Development Association Annual Transportation Association Rail Meeting. Calgary. www.arda.bartwest.com Conference. Montreal. www.apta.com SEPT. 23-26 — InnoTrans 2014. Berlin, JUNE 1-5 — Railway Tie Association AUG. 21-22 — Frac Sand Supply & Germany. www.innotrans.com Annual Field Trip. Chicago and central Logistics Conference. San Antonio, Texas. SEPT. 28-OCT. 1 — American Railway Illinois. www.rta.org/field-trip www.petroleumconnection.com Engineering and Maintenance of Way JUNE 3-5 — 2014 International Crosstie SEPT. 14 — Rising Stars 2014 Dinner. Association Annual Conference and and Fastening System Symposium. Chicago. www.progressiverailroading.com/ Exposition. Chicago. www.arema.com University of Illinois at Urbana-Champaign. risingstars/dinnerinfo.asp OCT. 12-15 — American Public http://ict.uiuc.edu/railroad/Crosstie/2014/ SEPT. 21-23 — Intermodal Association Transportation Association’s 2014 Annual agenda.php of North America Intermodal Expo 2014. Meeting and Expo. Houston. www.apta.com Long Beach, Calif. www.intermodalexpo.com For more meetings, see NOV. 20-21 — RailTrends® 2014. SEPT. 23-25 — Railway Supply Institute W New York Hotel. www.railtrends.com Progressive and Coordinated Mechanical Associations Annual Conference. Montreal. www.rsiweb.org

10,11_PR_0514 UpfrontPpl_Mrktplc.indd 11 5/1/14 8:23 AM PROGRESSIVE RAILROADING 12 | RAIL-CAR LEASING | May 2014

Toby Kolstad has been in the railroad industry for more than 40 years, with stints at the Illinois Central Gulf Railroad, Denver & Rio Grande Western Railroad, a car builder and lessor. Currently a consultant on rail-car matters and president of Rail Theory Forecasts L.L.C., he can be emailed at [email protected].

around 455,000 cars and accounts for more than 32 percent of the national Fleet trends beyond fl eet — also is expected to grow signifi cantly, following a few years during which retirements outpaced new the tank-car fray builds. Orders for all three covered- hopper sizes are increasing due to more carloads of cement and industrial sand, higher grain exports and a boost f you’re writing about rail cars these days, it’s hard not in plastic-pellet production. Except for the grain exports, to include at least something on the ongoing tank-car much of these gains are due to increased hydrofracking Idevelopments and disagreements, which I wrote about exploration and production of natural gas in the United in my February column and which has covered exten- States. Even after shipments of frac sand slow down, sively. And there’s still plenty that needs to be said by covered-hopper demand likely will continue as the U.S. observers and analysts who aren’t biased toward one of economy expands, and as demand increases for cement the parties with a vested interest (car builders, car owners, and domestic production of petrochemicals from domesti- railroads and their oil shippers, not to mention tort law- cally sourced natural gas. yers and politicians). But there’s a lot going on within the Meanwhile, the fl at-car fl eet, too, should experience other fl eets that also deserves comment, so I’ll set aside real growth for the fi rst time in several years — if lumber the tank-car matter for now. shipments and automobile loadings stay relatively strong. On March 17, the Surface Transportation Board With respect to the latter, 70 percent of the multilevel fl at- released the 2012 Public Use Waybill Sample data. Much car fl eet was built before 1980. of the data was predictable. There was only one surprise: Although the Federal Railroad Box-car loads declined again. It was unexpected because Administration has approved paper production, which accounts for more than 50 a service life of 65 years for percent of all box-car carloads, was up slightly in 2012, as Containerization these cars, which will enable were the totals for two other box-car commodities (lumber most to remain in service and auto production). Orders for new box cars have not continues to well beyond 2035, automak- even come close to matching the number of cars that have lessen the need ers may not wish to continue been retired in recent years; the fl eet shrank from roughly loading such old and dated 150,000 cars in 2008 to just over 100,000 cars in 2013. One for box cars. equipment. The current fl eet might expect to see signs reading “The end is nigh” very originally was built and man- soon for this fl eet, as containerization of box-car traffi c aged to satisfy the demands continues to lessen the need for this car type. of the Big Three auto manufacturers; the Association of Orders to increase for several car types American Railroads originally located its multilevel reload Another fl eet that refl ects the impact of retirements is headquarters in Detroit. Of course, the auto industry has mill gondolas, which primarily are used to move iron and changed signifi cantly since 1980; the Big Three are now steel products, and scrap metal. Between 2008 and 2013, the Domestic Two, and most foreign-car imports of 1980 the fl eet declined from 108,000 to 92,000 cars. Unlike box- are being produced domestically. Perhaps the new auto- car carloads, though, mill gondola carloads are increasing mobile shippers may want better rail cars. slowly and soon will reach the average load level of the As for tank cars, which account for 20 percent of the past 20 years, with a fl eet size that is 20 percent smaller U.S. rail-car fl eet: I hope a resolution for the current dis- than the average number of cars during the same period. agreement will be reached this summer. Increased oil and Deliveries should soon begin to outpace retirements, given gas production in the United States has taken on global that steel and scrap metal are two commodities that are political importance in recent months, and perhaps the not easily containerized. bigger picture will help all parties involved move past The U.S. covered hopper fl eet — which numbers their disagreements. ■

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13_PR_0514 sapa.indd 13 4/29/14 7:49 AM PROGRESSIVE RAILROADING 14 | COVER STORY | May 2014

By Angela Cotey, Senior Associate Editor

FOR THE METROPOLITAN Atlanta Rapid Transit Authority (MARTA), 2012 was an eventful year. Georgia voters failed to pass a transportation referendum that would have helped fund a long-awaited transit system expansion. The agency also received the results of a year-long management and operations audit that unveiled jarring inefﬁ ciencies, budget shortfalls and employee morale issues. And, the MARTA board was on the hunt for a new general manager and chief executive ofﬁ cer to replace Beverly Scott, who would step down once her contract expired at the end of the year. In many respects, 2012 was merely the latest in a string of challenging years for the agency, which has operated rail service in the Atlanta metropolitan region since 1979. MARTA was

14-25_PR_0514 coverstory.indd 14 5/1/14 10:59 AM PROGRESSIVE RAILROADING May 2014 | 15

particularly hard-hit during the Great in October 2012 named Keith Parker as be done. Morale improvements don’t Recession; the agency is the largest the next GM and CEO. Known for his happen overnight, public perception is in the United States that doesn’t re- diplomacy and ability to communicate diffi cult to change and service improve- ceive state funding, so it relies almost the benefi ts of and need for transit to ments only can be made incrementally. entirely on farebox and sales tax rev- a variety of audiences, Parker headed But Parker believes that over time, enue to cover operating and capital San Antonio’s VIA Metropolitan Tran- MARTA can become a more effi cient expenses. The recession and resulting sit prior to joining MARTA. There, he and accountable organization that pro- revenue shortfall forced agency execu- helped garner political and public sup- motes a culture of “routine excellence.” tives to hike fares, slash service, elimi- port for the city’s fi rst modern streetcar If that happens, MARTA could be better nate jobs and freeze wages between system. Before that, Parker was CEO positioned to fi nally implement long- 2009 and 2012. Agency execs also of the Charlotte Area Transit System, planned expansions. had to plow through reserves to keep where he was charged with rebuilding “We have to get our house in order MARTA afl oat. The moves left cus- public trust in the agency after light-rail so we can take away all the legitimate tomers unhappy and employees dis- construction costs ballooned, leading to arguments people may pose to invest- satisfi ed. Meanwhile, state legislators a public and political backlash. ing in the system,” Parker says. “We — many of whom had long questioned With Parker at the helm, MARTA will be more effi cient, more customer the agency’s management and opera- has spent the past 15 months working friendly and more employee friendly.” tions — were more critical than ever. to address budget issues and pare back That mission — and the chal- MARTA offi cials knew they had to expenses, implement accountability lenges associated with carrying it make some major changes to repair the measures, and improve relationships out — are what captured Parker’s agency’s image, implement audit rec- with customers, employees and state attention nearly two years ago, when ommendations and address fi nancial legislators. a recruiting firm contacted him woes. To help right the ship, the board Still, there’s plenty more work to about the MARTA post. At the time,

14-25_PR_0514 coverstory.indd 15 5/1/14 10:39 AM PROGRESSIVE RAILROADING 16 | COVER STORY | May 2014

Parker wasn’t looking for a new job. He had just started who also has held senior-level fi nance positions at a variety of his third year as president and CEO of VIA, which had companies, including PricewaterhouseCoopers. been named Outstanding Metropolitan Transit System by “Keith’s directive was to improve processes with an eye to- the Texas Transit Association for the second-straight year. ward greater effi ciency, both within the fi nance function and The association had recognized Parker as Outstanding broadly for the agency,” says Hutchinson, who now serves as General Manager in 2011 and 2012. Ridership at the San An- MARTA’s CFO. “He wanted to implement more of a business tonio system was at an all-time high, construction had begun focus when it came to running the agency.” on the region’s fi rst bus rapid transit line and the agency had completed a long-range transit plan that included a proposal Balancing act for the city’s fi rst modern streetcar system. To that end, MARTA management decided to eliminate un- The MARTA position also would enable Parker and his wife, fi lled positions that were not deemed critical to the agency’s both Virginia natives, to move back to the eastern part of the operations; restructured outstanding debt, saving about United States, where they could raise their children closer to $5 million; revamped the information technology department, family. And professionally, it would pose the greatest challenge cutting about $14 million in costs; and automated and/or of Parker’s career. streamlined some internal functions, such as switching to a “This is the most complex transit position in the country,” he 100 percent paperless payroll system. says. “People will argue that New York is bigger or that Boston As a result of the changes, MARTA in FY2013 balanced its has more trains and buses, and while that’s true, nobody in budget for the fi rst time in 15 years, and turned the $33 million New York or Boston questions the validity of mass transit. We defi cit into a $9 million surplus, says Parker. Hutchinson ex- still have that battle here in Georgia.” pects the agency to net an even larger surplus in FY2014, which It’s a battle MARTA board members believe Parker is well ends June 30. suited to fi ght. “We’ve had the good fortune in 2014 of having increas- “Our management and operations review, and some of the ing sales tax receipts,” he says. “We expected that to a certain changes we’re making, have been an ongoing process for quite extent because of the improving regional economy in metro some time,” says MARTA Chairman Robert Ashe. “But Keith Atlanta, but it has exceeded expectations.” has come in and taken ownership of it, and put into place an The additional dollars have helped replenish reserves, and executive management team that is accountable for it and also will enable the agency to “reinvest in its business,” says responsible for identifying opportunities that go above and Hutchinson. beyond.” “Our intent is not to earn a profi t,” he says. “So once our re- One of Parker’s fi rst orders of business: address the agen- serve levels are adequate, we will use the funds available to us cy’s fi nances. MARTA was facing a $33 million defi cit in fi scal to provide the best level of service we can to the riding public.” year 2013, and was at risk of becoming fi scally insolvent within And when it comes to the riding public, MARTA offi cials three to fi ve years. have some relationship-mending to do. The agency’s previ- For starters, Parker cut the equivalent of fi ve senior-level ous management team slashed rail and bus service between management positions that saved the agency about $1 mil- 2008 and 2012, and at the same time hiked fares by more than lion. He also brought in a few new faces, one of them Gor- 40 percent, says Parker, adding that these were rational deci- don Hutchinson, Amtrak’s former acting chief fi nancial offi cer, sions to make in the face of MARTA’s severe revenue short-

METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY

MARTA ofﬁ cials will allocate money saved through recent cost- cutting measures to double peak- period rail service this summer.

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17_PR_0514 Holland.indd 17 4/23/14 11:15 AM PROGRESSIVE RAILROADING 18 | COVER STORY | May 2014

ship, and of course with that will come additional revenue,” says Hutchinson. “We will be more effi cient, Agency execs also eliminated another fare increase that had more customer friendly and been scheduled for October 2013. Going forward, MARTA offi cials more employee friendly.” hope to implement fare increases only every other year, based on changes in the Consumer Price — Keith Parker, Index, says Hutchinson. To help keep ticket prices GM and CEO down, MARTA plans to soon roll out a campaign targeting fare evasion, reminding riders that “everyone needs to pay their fair share,” says Hutchinson. falls during the recession. Parker & Co. also are cracking down on inappropriate “But our [service] frequency is not anywhere near where it behavior on buses and trains by reinforcing the Ride with needs to be right now,” he says. Respect campaign MARTA launched in 2012. The initiative In December 2013, MARTA increased evening rail service. was designed to encourage passengers to be courteous and This summer, the agency plans to double rail service during raise awareness of behaviors that might irritate fellow riders. peak hours on all lines. The service increase will be funded in In late 2013, agency managers took it one step further by imple- part through the cost savings MARTA has garnered during the menting a new code of conduct policy that assesses penalties, past 18 months. including possible suspension from the system, for passengers “Ultimately, we believe this will result in increasing rider- that solicit others, play loud music, spit, litter, fi ght or exhibit

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disruptive behavior. So far, the agency has suspended about amounts for union employees, Parker says. 700 people, says Parker. The agency also is making more of an effort to promote work- “We’ve been holding folks accountable, taking a zero-tol- ers from within and provide leadership training opportunities. erance approach to bad behavior on trains and buses, and One example: MARTA recently joined the Multi-Agency Ex- customers have responded really well change, or MAX, program, a cross-agen- to that,” he says. cy leadership development and learning MARTA offi cials are working to im- exchange. Dallas Area Rapid Transit, the prove employee relations, too. During In FY2013, MARTA Denver Regional Transit District and Los the recession, the agency laid off hun- Angeles County Metropolitan Transpor- dreds of workers and implemented offi cials balanced the tation Authority also participate. Eight unpaid furloughs for non-union staff. mid-level managers from each agency Most employees received only one budget for the fi rst are selected to visit the other systems so raise in the past decade, and no pay in- they can learn best practices and network crease for seven years. As a result, em- time in 15 years, and with other agency leaders. ployee morale was low, and absentee- ism was costing the agency about $11 turned a $33 million Health conscious million annually, according to the au- Meanwhile, more cost cuts are coming. dit report conducted by KPMG L.L.P. defi cit into a $9 For example, the KPMG audit found “There was not a lot of pride in that the agency’s health care claim, re- wearing the MARTA badge, and we tirement and workers’ compensation knew we had to make some invest- million surplus. costs are $50 million higher than nation- ments in our employees to turn things al averages, including both private- and around,” says Parker. public-sector employers. To address it, MARTA offi cials were able to use some of the money saved agency execs plan get employees more involved with their through cost-cutting measures to give non-union employees a health care by encouraging a greater focus on wellness and 3 percent bonus in late 2013; execs still are negotiating bonus asking workers to have health screenings, says Hutchinson. Building Expectations

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21_PR_0514 RECo.indd 21 4/25/14 10:35 AM “Over time, we can reduce what we have to spend on health care,” he says. “And it’s been proven that organizations can then get a healthier workforce and fewer sick time absences, and that in turn generates greater productivity and savings to the agency.” Other cost-saving measures, as recommended by the audit, could include hiring third-party fi rms to perform specifi c functions, either internally or externally, such as computer support, customer service, recruiting and cleaning services. MARTA offi cials currently are looking into automating and outsourcing the parking system, says Hutchinson. The audit also recommended revenue-generation initiatives, such as wrapping more vehicles with advertising, developing a billboard program for properties and facilities, expanding food and beverage concessions and implementing a program for station naming rights. MARTA also is working to expand its transit-oriented development efforts to help generate lease income on the properties it owns, Hutchinson says. Measures of success In the meantime, the senior management team is tracking key Your Partner in Signaling & Train Control performance indicators such as budget variances, ridership, cost per revenue mile, on-time performance and mean distance be- for Over 130 Years tween failures. The team generates a monthly report that com- pares the indicators to budgeted amounts, performance targets and previous reports, so executives and board members can review the metrics and note any improvements or variances. “It’s based on the real simple management philosophy that what gets measured gets managed,” says Hutchinson. “You have to have a system of objective measures and you have to review it in order to get effective management and accountability for performance and results.” You also have to communicate it, Parker says. “One of the worst things you can do as a manager is not have people know what you’re doing,” he says. That’s why Parker has been working to ensure MARTA customers, state and local politicians, and business groups are aware of the changes being made at the agency, and how they’re helping MARTA improve service quality and the bot- tom line. He regularly communicates with the Georgia governor and lieutenant governor, and has held nearly 150 public meetings with various rotary clubs, church groups and other local organizations.

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14-25_PR_0514 coverstory.indd 22 5/1/14 10:39 AM PROGRESSIVE RAILROADING May 2014 | COVER STORY | 23

MARTA OFFICIALS ARE ramping up efforts to expand the “My message to all of them is the same: ‘We’re not asking for anything agency’s transit-oriented development (TOD) program as a way to at this point. We haven’t made a single request for new money,” says Parker. boost revenue. During the next two years, MARTA plans to launch “‘Give us a chance to get our house in or- ﬁ ve major developments at stations. So far, three are under way. der, and then maybe we will come back to you with some investment opportuni- In February, MARTA selected Walton Communities L.L.C. to build ties in MARTA.’” about 400 apartment units — including 20 percent affordable Ashe believes the message is getting through. housing — along with 14,000 square feet of retail space, open “Keith is very good at communicating MARTA’s leadership and change mes- space and a community center, says MARTA GM and CEO Keith Parker. sage, and its accountability message to Also in February, KDC Real Estate Development and Investments a variety of audiences,” he says. “And all of that would be empty talk if you announced it would build a new State Farm Insurance Co. campus weren’t serious about it.” The changes Parker is making show in Dunwoody, Ga., that would house more than 8,000 employees. that he is serious, says Ashe. And while The ofﬁ ce space will connect to MARTA’s Dunwoody Station. it will be some time before the full impact of those changes is realized, board And in March, MARTA announced it would begin negotiations members are pleased with what they’ve with the Decatur Development Authority to revitalize the area seen so far, Ashe adds. State legislators seem to be noticing around Avondale Station, transforming a parking lot into a mixed- a difference, too. MARTA has been a hot topic during each Georgia legislative use TOD featuring apartment units, condos and retail space. session, with legislators threatening to

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14-25_PR_0514 coverstory.indd 23 5/1/14 10:39 AM PROGRESSIVE RAILROADING 24 | COVER STORY | May 2014

Each month, MARTA ofﬁ cials compare on-time performance, ridership, mean distance between failures and other performance measures against targets and previous reports to gauge service quality and keep a handle on ﬁ nances.

ture than it has in years — possibly decades, says Ashe — as politicians have taken note of the agency’s efforts to become more ﬁ scally responsible. The attitude shift was appar- ent in a December 2013 editorial that Georgia Rep. Mike Jacobs — chairman of the Legislature’s MARTA Oversight Committee — wrote for the Atlanta Journal-Constitution. METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY “There is cause for optimism at MARTA, and Mr. Parker is at the root of it,” the editorial stated. “The mandate reforms to the agency that would affect areas such as legislature and MARTA … historically have had a chilly rela- operations, pension and health care. tionship. Listen closely, however, and you will hear the drip- “It would have taken away a good chunk of my ﬂ exibility ping of thawing ice.” to run the system,” says Parker. Jacobs’ editorial noted that MARTA’s efforts to privatize Today, those reform cries have become fainter. MARTA some functions, boost public perception and cut costs have currently has one of the best relationships with a state legisla- not gone unnoticed. Going forward, the Legislature is hop-

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14-25_PR_0514 coverstory.indd 24 5/1/14 10:39 AM Leave No Jumper ing for more of the same. Further strengthening relationships with the Legislature and riders will be key to MARTA’s ability to carry out future Behind! expansion plans. When the agency was created in the 1970s, planners envisioned a rail system that would serve the city of One-Step Process – Atlanta and fi ve urban core counties. But the MARTA system Using the Jumper Sets Up the Alarm! hasn’t been expanded beyond its initial 48 miles, which serves Atlanta and two counties. A lack of state capital investment and Limit the risk of left-jumpers with our Model 500 Jumper voter support have long hindered expansion plans. Keeper Dash and Rack Unit –the most ergonomic, Ashe believes the Legislature will begin weighing new easy-to-use solution in the industry! transportation investments in the coming years to help cur- tail the region’s growing traffi c congestion. In the meantime, Visual and audible alarms scream when a jumper is missing MARTA offi cials need to position the agency as a worthy re- cipient of any future funding opportunities. Keeping costs in Accommodates 6 jumpers – extension units raise total to 36 check and wisely spending available revenue are musts. So is Proven in service since 1999 on all size railroads, transits improving the public’s opinion of Atlanta transit. So far, the Jumper Keeper can be defeated on purpose, but who in MARTA management team is making headway, Ashe says. his right mind would do that? “It’s important not to undersell the challenging circum- stances that MARTA has been under, but there’s no question things have improved for us since 2012. We are on an upward trajectory,” he says. “We have a transformation initiative under 7225 Duvan Dr. • Tinley Park, IL 60477 way, aimed at improving our credibility across the region as (708) 444-4908 • Fax (708) 444-4962 conservative stewards of public money, and as a responsible Email: [email protected] partner for investment.” ■ www.sandcco.com Reliable Tools for the Long Haul Email comments or questions to [email protected]. ▲ FREE INFO: Circle 020

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14-25_PR_0514 coverstory.indd 25 5/1/14 10:39 AM PROGRESSIVE RAILROADING 26 | SHIPPER FOCUS | May 2014

HUGE UPS HUB IS BIG ON FREIGHT

United Parcel JUST AFTER 1 A.M. on March 25, jumbo of tunnels and dozens of other pieces of cargo planes were landing at United Parcel equipment designed to quickly sort and Service’s extensive Service’s (UPS) massive Worldport com- consolidate the letters and small parcels plex next to Louisville International Airport based on their fi nal destination. Worldport complex at a rate of one per minute. Overall, about 1 million packages were The jets taxied to an assigned spot on sorted by 3 a.m., at which time most jets near Louisville’s the tarmac or to one of 70 aircraft docks were reloaded with containers and began at the northern Kentucky air hub’s small- heading to numerous destinations, includ- airport generates package sorting facility. UPS crews then ing points in Alaska, China and Germany. spent 20 minutes unloading the 15 to 30 Each day at Worldport, UPS relies on a lot of cargo each containers of parcels and letters each plane a dizzying symphony of automated wiz- brought to Worldport from one of 220-plus ardry stretching as far as the eye can see, day — and more is countries served by the hub. sophisticated information technology sys- Next, workers quickly rolled the con- tems and coordination among thousands on the way tainers into the sorting center using a sys- of workers to sort 416,000 packages per tem of more than 1.2 million casters and hour. A busy, crucial nighttime sort typi- By Jeff Stagl, Managing Editor ball transfer units installed throughout cally is wrapped up in about four hours. the 5.2 million-square-foot facility, which The bulk of UPS’ package volume is is large enough to house 90 football fi elds. collected during the day and sorted in the Once removed from a container, most evening at smaller hubs worldwide, then packages needed about 13 minutes to navi- air-freighted to arrive in Louisville around gate through part of a 155-mile network midnight. So, a fl urry of activity is com- that includes 33,500 conveyors, hundreds mon at the hub in the wee hours.

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Caption as winters trend toward milder temperatures, ice melt manufacturers say there is still plenty of demand for product

Large enough to house 90 football ﬁ elds, United Parcel Service’s Worldport at Louisville International Airport handles more than 130 jumbo cargo jets and sorts about 1.6 million parcels daily.

26-31_PR_0514 UPS.indd 26 4/30/14 3:23 PM FREE INFO: Circle 113

27_PR_0514 COLUMBUS CASTINGS.indd 27 4/24/14 1:55 PM PROGRESSIVE RAILROADING 28 | SHIPPER FOCUS | May 2014

National Geographic referred to the 7.2-mile-perimeter sive operations in Louisville has the potential to generate more Worldport as “a one-of-a-kind technological wonder and domestic cargo for CSX, says Dennis Reiner, senior account the most effi cient delivery system on the planet,” primarily manager-UPS, who manages the Class I’s UPS account. because the hub processes more than 2,000 packages every “UPS has laid the foundation with the freight hub, which has 17 seconds. The world’s largest fully automated package- attracted more companies to locate in Louisville,” he says. “It handling facility — which has more than doubled in size brings with it more domestic freight opportunities for [us].” since 1999 — sorts an average of 1.6 million parcels and pro- In addition, if the railroad can demonstrate the consistent cesses more than 130 jets daily. service UPS needs in other lanes, CSX might be able to trans- In addition to the sorting hub, UPS operates a global oper- port more of the shipper’s small packages to other destina- ations center, operations planning and control center, freight tions, says Reiner. facility and logistics facilities in Louisville, where the com- “It could be expedited premium freight to the Northeast or pany is one of the largest employers, with an employment to Chicago,” he says. roll exceeding 20,000. The Louisville terminal, which opened in early 2012, already has been expanded twice because CSX INTERMODAL TERMINALS INC. of burgeoning business — pri- mary lifts are on pace this year to increase 30 percent from 2013’s 62,000-plus lifts, says Danielle White, the terminal’s manager. “UPS is one of our top priority customers in Louisville. We only get to handle [their freight] twice a week, but we ensure that we’re fl awless in execution, as we value their business greatly,” says White. Eye on expansion A second terminal expansion — completed in November 2013 — increased capacity by 60 percent, enabling crews to stack 495 con- CSX continues to expand its Louisville terminal near tainers (three by three) instead of Worldport that opened in early 2012. The terminal serves UPS the previous 306 maximum. traffi c headed to Jacksonville, Fla., on Thursdays and Fridays. CSX also added 3,200 feet of processing track so workers can process loaded trains stretch- The 653,000-square-foot freight facility handles such ing 8,000 feet versus the prior 4,700-foot limit. In addition, a cargo as manufacturing and health care products — and, north chassis lot was built to store wheels and stack empty at times, locomotives, race cars, movie sets and other containers. unusual items. Operated by UPS Supply Chain Solutions, Since the terminal consistently operates at about 90 percent the adjacent logistics facilities handle and distribute health- to 100 percent of capacity — and sometimes exceeds available care, high-tech, retail and other products, including pharma- space — an additional expansion is needed, says White. ceuticals, cell phones and laptop computers that are repaired “We are in the initial brainstorming phases of looking at the on site and sent back to consumers. next option to continue growing and expanding the terminal,” she says. The rail connection Due to the size and scope of businesses operating in Although the majority of the cargo handled at the freight facil- Louisville and nearby Elizabethtown, and the number of ity and most parcels processed at Worldport are transported customers UPS serves in the area, CSX’s ongoing terminal by air, and many of the products distributed at the logistics expansion opens many potential new windows and trans- complex are trucked, rail plays a role in UPS’ transportation portation solutions, says Ken Buenker, UPS’ vice president strategy in Louisville. And since railroads’ largest customer of corporate transportation services. expects to continue increasing the volume of freight handled “We are continually looking at network opportunities, so at the huge hub, that role could expand over time. when any of the rail providers expands their service lanes, it’s A CSX Intermodal Terminals Inc. facility near Worldport part of our planning and analysis cycle to review new sched- currently moves three containers of UPS’ small packages each ules and lanes that we may not have had access to prior to a Thursday and fi ve containers each Friday to Jacksonville, Fla., [terminal] expansion,” he says. via intermodal train. The rail volume usually doubles during However, UPS isn’t planning many other conversions to the peak season from September through December, though it rail in Louisville or other cities until the rail networks are more can vary occasionally. fl uid, says Buenker. In the near and long terms, UPS’ large presence and exten- Rail congestion caused by severe winter weather and bur-

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29_PR_0514_lr vossloh.indd 29 4/21/14 10:13 AM PROGRESSIVE RAILROADING 30 | SHIPPER FOCUS | May 2014

geoning crude-oil traffi c has frustrated many people build their inventory-fl ow Among the hundreds of logistics ser- many rail shippers of late, including a patterns around, and if there is a high vices UPS provides at the facilities: stor- number of grain shippers. level of performance to availability ing artifi cially engineered human skin For UPS, it’s all about being a “solu- commitments, that creates more oppor- in subzero freezers and shipping it out tions company” that delivers value and tunity,” he says. for surgical procedures; storing and dis- offers “smart” transportation options for tributing insulin pumps, which requires customers, says Buenker. Heavy freight fl ows a staff of on-site pharmacists; storing and But the benefi ts of a mode shift in a As UPS Supply Chain Solutions aims distributing fl u vaccines; storing and mixed-modal approach many times can to attract more business to the logis- programming cell phones for Sprint, and be wiped out after one week if a carrier tics facilities near Worldport, CSX may then shipping them and a host of phone performs poorly, he says. have an opportunity to tap into some accessories to individuals or retail out- “A split between modes protects of it, says CSX’s Reiner. A variety of lets; performing light assembly of cam- required minimum stock levels, but freight could be moved inbound by eras; and storing and distributing auto takes advantage of the benefits of rail to Louisville. parts for multiple luxury brands. rail service,” says Buenker. “I think For the past several years, UPS Supply The Sprint business takes up 350,000 there are a few new territories that are Chain Solutions has continued to capture square feet of an 830,000-square-foot opportunities for the railroads, yet air-freight, small package and less-than- multi-tenant building not far from the there is some exposure, as well.” truckload cargo that can be managed and Louisville airport. UPS Supply Chain As customers seek to manage trans- distributed from its logistics facilities. Solutions began the forward distribu- portation costs, they expect the same In mid-2013, the company opened tion business for the cell-phone service performance level from a mode they its 10th logistics facility in Louisville, provider in 2007. shifted to as was provided by the mode where a UPS Supply Chain Solutions UPS Supply Chain Solutions’ cam- they shifted away from, he says. complex fi rst was established in 1996. puses traditionally are located close to And more often than not, tran- Totaling more than 3.5 million square UPS hubs, says Buenker. sit speed is not necessarily the issue, feet, the Louisville complex is the Other logistics facilities are Buenker adds. company’s largest cluster of logistics located in such cities as Baltimore, “The reliability of the service is what facilities. Chicago (Bensenville, Bridgeview

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26-31_PR_0514 UPS.indd 30 4/30/14 3:23 PM PROGRESSIVE RAILROADING May 2014 | 31

UPS now operates 10 logistics facilities near Worldport. Among the many services provided at the facilities: storing and distributing auto parts, and managing cell phone orders and programming for Sprint.

hub network creates logistics clusters that draw those effi ciencies for many transportation modes,” says Buenker. And rail is often a mode in play due to its effi ciencies — benefi ts that could send more UPS-generated freight in rail’s direction if the shipper’s reliability needs are met. UNITED PARCEL SERVICE Generally, UPS relies on rail to meet its service commitments when there is and Elk Grove Village, Ill.), Dallas, they many times also desire transporta- a “very high likelihood” that rail tran- Denver, Houston, Indianapolis, Memphis, tion reliability that’s comparable with sit times meet stringent performance Miami, Milwaukee (Oak Creek, Wis.), their current mode of choice, says Buenker. requirements, says Buenker. Los Angeles (Ontario, Calif.), Orlando, There are many “win-win-win solutions” “We are always looking at network Philadelphia, San Diego and Seattle. for UPS, its customers and carriers that effi ciencies and are often involved in con- lead to lower costs, improved service versation with the railroads on expansion A win-win-win and better-utilization results, he says. plans, as well as educating customers on When customers seek to tap UPS Supply “While many of our customers engage some of [rail’s] potential,” he says. ■ Chain Solutions’ services and UPS’ net- in their own transportation solutions work relationships to gain sustainability directly with carriers, the benefi t of any Email questions or comments to jeff.stagl@ benefi ts or generate an economic return, expansion in a market that is part of our tradepress.com.

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26-31_PR_0514 UPS.indd 31 4/30/14 3:23 PM PROGRESSIVE RAILROADING 32 | PASSENGER RAIL | May 2014 A world-class aim

STM’s new train cars, named “Azur,” are being built by a Bombardier Transportation and Alstom Transport consortium.

SOCIÉTÉ DE TRANSPORT DE MONTRÉAL

Julie Sneider, Associate Editor

“WORLD CLASS.” By 2020, that’s how Carl annually. The system comprises an integrated bus Desrosiers wants Société de transport de network consisting of 250 lines, as well the under- Montréal (STM) to be viewed by people who ground rail system (known as “metro”) serving visit or live in Montreal. 68 stations. STM handles about 80 percent of all And STM’s chief executive offi cer believes the public transportation in the Montreal area and ac- agency has the right strategy in place to make it counts for about 70 percent of all public transit one of the world’s top-tier public transportation use in Quebec. systems, as measured by the With a workforce of 9,500, STM is the 14th quality of customer experi- largest employer in Quebec; in 2013, the agency’s ence, service reliability and budget totaled $1.3 billion (in Canadian dollars). How Société de cost management acumen. The agency estimates the replacement value of its “We still have work to assets is worth more than $14.5 billion. transport de Montréal’s do to, but we really believe we can get there,” says A subway fi lled with art leadership team hopes Desrosiers, who was The metro also is home to a signifi cant collection to meet aggressive named CEO in 2012 af- of art that began with the subway’s construction ter climbing the ranks at in the early 1960s. The collection features dozens growth and continuous- STM over a 30-year career. of murals, stained glass panels and sculptures “We really want everyone installed throughout the 68 stations, making the improvement goals around the world telling metro “an essential component of Montreal’s people that Montreal is dif- civic heritage,” according to the STM website. ferent, that it is an incred- And last year, the lifestyle magazine Complex ible city, based on transit. identifi ed Montreal’s Champ-de-Mars Station, Because in order to have a world-class city, you which features the stained-glass artwork of have to have a world-class transit system.” Marcelle Ferron, as the ninth “most beautiful” STM already has plenty going in its favor. metro station in the world. The fourth-largest public transit organization in The agency has been acknowledged for more North America, it serves about 1.2 million pas- than aesthetics, however. In 2010, the American sengers daily and records about 413 million trips Public Transportation Association (APTA) named

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33_PR_0514 voestalpine NORTRAK.indd 33 4/23/14 11:13 AM PROGRESSIVE RAILROADING 34 | PASSENGER RAIL | May 2014

STM the best large transit agency in North America. And in an email. Most of the disruptions were related to implementa- 2013, APTA recognized STM for excellence in bus safety and tion of metro’s new control center, and could explain the de- security efforts. cline in customer satisfaction, she added. While agency leaders welcome such recognition, they’d Whatever the cause, STM leaders know the decline in cus- like STM to get better reviews, especially from the people who tomer satisfaction is something they must address. One key com- ride STM’s trains and buses. The agency’s customer satisfac- ponent of their plan to make riders happier: new, larger trains. tion currently is “quite high” — at 85 percent, Desrosiers says “My subway system is at capacity; I need more cars,” says — but it has been even higher, clocking in at 89 percent in 2011 Desrosiers. New fl eet on its way STM will get them later this year. A new fl eet of metro cars, dubbed “Azur,” is being manufactured for “In order to have a world- STM by a consortium comprising Bombardier Transportation and class city, you have to Alstom Transport. Under a $1.2 billion contract STM awarded the have a world-class transit consortium in 2010, the agency is purchasing 468 cars. — Carl Desrosiers, CEO Over time, the fl eet will re- system.” place the agency’s MR-63 cars, which have been in operation since metro opened in 1966. and 88 percent in 2012. The fi rst Azur car rolled off the assembly line at Bombar- The slide in satisfaction occurred around the same time the dier’s plant in La Pocatiere, Quebec, in November 2013. The agency experienced eight major breakdowns (four in 2012 and consortium has been testing a prototype train at the plant, and four in 2013) that affected the entire metro network and para- in April shipped the fi rst car to Montreal for qualifi cation test- lyzed four subway lines, an STM spokeswoman explained in ing with STM.

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35_PR_0514 PNC.indd 35 4/23/14 11:12 AM STM’s ridership ﬁ gures SOCIÉTÉ DE TRANSPORT DE MONTRÉAL have been on the upswing, reaching a record 412.6 million passenger trips in 2012.

of people onboard. Each new train will be able to accommodate up to 8 percent more riders. The cars also represent an example of “ecodesign,” with assembly techniques and materials selected to meet sustainable development practices, STM offi cials say. The new Azur fl eet represents a major investment in STM’s future: $2.5 billion over several years once all costs are factored in. The cars are a major component of STM’s Stra- tegic Plan 2020, which also calls for The fi rst Azur cars are scheduled to enter service in fall. All expanding service, improving the customer experience, and 468 metro cars are anticipated to be in service by fall 2018. growing STM’s ridership by 40 percent to 540 million passen- STM offi cials believe the nine-car train’s sleek design, lay- ger trips. In 2012, the agency set an all-time record of 412.6 out and technology will offer passengers a smoother, more million passenger trips, up 1.9 percent over 2011. comfortable and secure ride. Among the cars’ features are So far, the strategic plan appears to be on track, says wider doors, improved ergonomics, panoramic windows, in- Desrosiers. novative lighting, a pneumatic suspension system, and a ven- “We measure the success of the plan based on ridership, and tilation system that adjusts temperature based on the number we now have 20 million more trips than we expected to have

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32-39_PR_0514 STM.indd 36 5/2/14 9:10 AM PROGRESSIVE RAILROADING May 2014 | PASSENGER RAIL | 37

at this point in the plan,” he says. “What you have to do is at- du Québec, the Montreal region’s population is projected tract customers. And now, every day, they are coming. So, our to grow 20 percent to 4.3 million by 2031. But population basic plan is to get more cars and also more reserve lanes on growth alone won’t automatically translate into more STM the bus side — because that riders. Also key to STM’s also is an issue in Montreal.” future growth equation is Additionally, the agency making sure those riders is acquiring new, more en- STM is trying to have a pleasant experience ergy-efﬁ cient buses. In 2012, whenever they use the sys- STM’s board approved the communicate with more of tem. purchase of 203 diesel-elec- To that end, STM is tak- tric hybrids, some of which its riders via social media ing several steps, including will be used to replace older expanding its customer com- models and the remainder to munication through social expand service. As part of its and mobile technology. media, mobile technology commitment to environmen- and real-time tracking. In tal sustainability, STM has a 2012, the agency launched goal to purchase solely all-electric buses starting in 2025. “iBus,” which provides real-time bus arrival information via the Internet and mobile applications. And last year, the agency Younger demographic launched a customer loyalty program through an iPhone app Desrosiers believes an all-electric bus system is a must in or- called “STM Merci.” Developed by STM and its technology der to attract millennial-generation riders. partner SAP, the app provides transit riders access to person- “How can I tell my young customers, ‘You better get out of alized special offers and discounts for transportation, local your car and take the bus or subway if you want to save the events and businesses. planet,’ when in 15 years they will tell me, ‘Hey, I can’t do that Moreover, the agency has relied on customer opinion and because my car is electric and your bus is diesel,’ ” he says. satisfaction surveys to develop a customer relations training Ridership is increasing in part because Montreal’s pop- program for STM ticket-booth agents and vehicle operators. ulation is rising: According to the Institut de la statistique STM uses customer focus groups to deﬁ ne and gauge their ex-

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32-39_PR_0514 STM.indd 37 5/2/14 9:10 AM PROGRESSIVE RAILROADING 38 | PASSENGER RAIL | May 2014 SOCIÉTÉ DE TRANSPORT DE MONTRÉAL DE TRANSPORT DE SOCIÉTÉ

STM’s Strategic Plan 2020 calls for expanding service, improving the customer experience and increasing ridership by 40 percent.

pectations for good service, facility and “mystery shoppers” to use the system vehicle cleanliness, and the courtesy of and report back on their perceptions of STM employees who interact with rid- service quality on buses and trains. The ers. As part of a continuous quality im- results — positive and negative — are provement effort, every day STM sends shared with employees.

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32-39_PR_0514 STM.indd 38 5/2/14 9:10 AM PROGRESSIVE RAILROADING May 2014 | 39

Offering world-class service also requires a strong commit- sit, Desrosiers says. ment to safety. At STM, safety is the responsibility of manag- “If you put a million dollars into the area’s transit industry, ers in every department, just as they are responsible for cost that [investment] stays in Canada and especially in Quebec,” control, and service reliability and quality. he says. “So we’ve tried to tell [political leaders] that it’s wise “We don’t have a safety department or quality department to invest in transit. If they invest in transit, they will save some because we think it’s too important to delegate that responsi- money for Quebec and the city will become more productive. bility to one staff department,” says Desrosiers. And that’s good for the economy.” ■ Since 1997, STM has participated in APTA’s Rail Safety Audit Program, as well as one for bus safety. While the audit Email comments and questions to [email protected]. examines whether STM is meeting system safety standards, the agency uses the auditors’ recommendations as part of its broader continuous improvement plan. “We take it really seriously,” Desrosiers says. “But we don’t just do these things to improve safety, we do it to improve reliability. … And basically, if you handle safety correctly, it means you are doing your job well. And if you do your job well, you will be safer, more reliable and have better customer service.” Desrosiers’ biggest challenges are similar to those of other transit executives: how to manage an aging system, maintain a state of good repair, expand infrastructure, improve and add service, keep existing riders happy and attract new ones — all on an austerity budget that relies on passenger fares and fi nancial support from government. Making the case for transit In the case of the new Azur car investment, 75 percent of the funding is coming from Quebec’s Minster of Transport and the remaining 25 percent from the Urban Agglomeration of Montreal. STM was fortunate to obtain support from the pro- vincial government for the new cars, Desrosiers says. “We didn’t have much choice; we were replacing [rolling] stock that is around 48 years old,” he adds. “We had to do it.” As for securing fi nancial support for future STM initiatives — such as plans for a new tramway system — Desrosiers knows he has to make the case to government and political leaders that transit is good for the economy and Montreal’s overall effort to become a sustainable, world-class city. One study cited in STM’s strategic plan noted that the region’s public transit authorities injected $1.8 billion into the Montreal area and generated an added value of $1.1 billion. The project to build the new Azur fl eet alone involves more than 150 Canadian suppliers, according to STM. Also, a recent survey of Quebec citizens found that 88 percent of them supported government investment in tran- ▲ FREE INFO: Circle 015

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32-39_PR_0514 STM.indd 39 5/2/14 9:10 AM PROGRESSIVE RAILROADING 40 | WORKFORCE DEVELOPMENT | May 2014

Teaching tomorrow’s to put their often-superior technological know-how to the test. managers today As a result, fi nding and nurturing newer managers and having them work with — and learn from — their more experienced bosses has become a higher Superintendents’ WHEN THE AMERICAN Association of priority for freight and passenger rail- Railroad Superintendents (AARS) holds roads, particularly as older managers get association aims its 118th annual meeting in September, ses- closer to retirement. It’s certainly top-of- sion topics will refl ect the organization’s mind for the leadership at the 133-year- to help railroads core mission — to develop managers as old AARS, which counts managers from they rise through the ranks. Class Is, short lines and commuter rail- facilitate knowledge “Everything from leadership and the roads among its members. best practices of management teams, to transfer to next- bringing in new hires, company culture, A systemic issue decision processes and socialization will When Foor arrived at the AARS more than generation leaders be discussed,” AARS Executive Director fi ve years ago, the organization’s twice-a- Carrie Foor says of the meeting, to be held year meetings were like many other rail- Sept. 14-16 at the Union League Club in industry association conferences — typi- By Robert J. Derocher Chicago. “It’s knowledge that you can’t cally, they featured industry updates and fi nd in a book or manual.” trends provided by a variety of speakers. It’s also knowledge that the rail industry At a 2009 AARS meeting, former CSX needs to cultivate. The industry’s at a criti- Corp. Chief Operating Offi cer Tony In- cal juncture, with institutional knowledge gram sounded the alarm regarding the sitting at the crossroads between aging vet- industry’s slow embrace of managerial eran leaders and younger managers eager transition and knowledge transfer. Around that same time, Foor began hearing similar concerns from younger AARS members. AMERICAN ASSOCIATION OF RAILROAD SUPERINTENDENTS “They wanted to be prepared more as they moved into new roles,” she says. “The feeling was that you just can’t dump people into management roles.” Working with a board of offi cers and di- rectors, Foor began introducing changes to AARS meetings and goals, culminating in this year’s September gathering. “We believe this is a systemic issue. Every single railroad is faced with this. We have a lot of people who have left our industry, or are planning to leave in the next few years,” says Mike Sherlock, deputy general manager for Amtrak’s Northeast Corridor and second vice president of AARS. “We’ve developed panel discussions at the last two AARS meetings to attack this issue. We need to talk about this.” Planned sessions for the September conference include “Managing Safety Pro- grams”; “Managing the Process: Managing “Today’s new managers want New People”; and “Leadership Through more, and they don’t want to Cultural Change.” [Editor’s note: The wait,” says Belt Railway of Chicago AARS annual meeting will be held in con- General Manager of Transportation junction with Progressive Railroading’s Ris- Mike Paras (left), shown receiving ing Stars Award Dinner, to be held Sept. 14 the 2013 AARS Lantern Award for Leadership from Conrail’s at the Union League Club in Chicago. For Joe Garofolo.

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details, visit: www.progressiverailroading.com/risingstars] into management positions. AARS affords a “good avenue” to share experiences, says “Before, you couldn’t apply for a promotion until you Steve Hoye, superintendent for the Belt Railway of Chica- worked several years in a position,” Paras adds. “You knocked go’s Chicago Transportation Coordination Offi ce and AARS’ on the door for a while and said you wanted to get promoted.” third VP. “You can learn a lot from talking to people,” he says. But for Paras, who last year received the AARS Lantern Award for Leadership, that approach might not work best in an Communicating and coaching era when potential new managers have multiple college degrees, Some of the talk needs to be taking place between manager advanced computer skills, and other skills and training. He re- and would-be manager, and increasingly, it is, Sherlock and cently promoted someone to a new management post after the Hoye say. Often, the fi rst step toward productive communica- rising star spent just six months in his previous position. “I’ve tion — and knowledge transfer — is for current rail manage- thrown all that previous thinking out the window,” Paras says. ment to realize that times have changed. “Today’s new managers want more, and they don’t want to wait. “Before, if somebody wanted something done, they’d yell They haven’t learned all of the railroad yet, but they will.” at you to do it,” says Sherlock, a 34-year railroad veteran. Often, fi eld managers aren’t solely responsible for fi nding “Now, we’ve learned to be more in tune with treating people next-generation leaders. At Amtrak, a talent acquisition depart- the right way, making sure we’re getting buy-in from them. ment works closely with them in the hiring process. And they’re We do a lot of coaching and mentoring. You can never talk to getting more scientifi c in their approach. “We are hiring people people enough.” with skills and a behavioral-type background that allows them Mike Paras, the Belt Railway’s general manager of trans- to be successful,” Sherlock says. “For example, what commit- portation and a frequent AARS presenter, says he usually ment and behavior does a road foreman need to succeed?” gives his managers “an opportunity to vent” each quarter But along with those so-called “soft skills,” candidates still about issues and challenges they face and ways to solve them. need to demonstrate eagerness and ability, combined with a “We say that it’s OK to have robust dialogue,” he says. hands-on management approach, Hoye says. Methods of fi nding — and grooming — managers also “When you’re out there talking with the crews and you have are changing. It’s becoming rare, Sherlock says, to fi nd new the tools in hand to show them what you’re saying, it really managers who took the leadership path he took: starting in works out well. Showing them is always better than books,” he the fi eld as a block operator, followed by gradual increases says. “It’s our job to help them understand why they do things

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40-44_PR_0514 Workforce.indd 42 5/2/14 8:39 AM SPECIAL ADVERTISING SECTION

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PROBLEM: Drainage culverts installed 40-50 years ago are now past their design life and failing. A major U.S. railroad needed to replace three failing culverts underneath railroad tracks near Coffeyville, KS. The three corrugated metal pipe (CMP) culverts were completely worn out. Leaving them in this condition might result in a total track collapse, disrupting service.

LEFT: High railing the excavator to the Snap-Tite project site. The excavator is used to push the pipe into the culvert. RIGHT: A section of Snap-Tite is pushed inside the old culvert and then snapped together at the machined ends.

SOLUTION: Each of the old culverts was approximately 50 feet in length and The railroad company’s crew set up to reline the culverts 48 inches in diameter. Snap-Tite representatives Russ Wosk and with 42-inch outside diameter Snap-Tite pipe. Since the Brad Elisar consulted with the maintenance supervisor for the repairs were taking place in a somewhat remote location, an railroad to fi nd the best solution for fi xing the damaged pipe. excavator and other supplies were brought to the site using a The railroad company has an established relationship with method called “high railing.” This method entails driving the Snap-Tite because the Snap-Tite culvert lining system offers a equipment down the railroad tracks to the site. no-dig solution for relining the pipe. In addition, the railroad For each of the culverts, the crew started with one standard saves money and time by using its own 24-foot section of Snap-Tite pipe. Snap- crews for the installation without hiring Tite pipe comes in lengths from two to 50 contractors. Its own crews can handle a feet, depending on the needs of a project Snap-Tite slip-lining installation because and the space available to snap the pieces it does not require any specialty equip- Snap-Tite® together. The crew slid the fi rst 24-foot ment. The railroad already had all the 1-800-CULVERT (285-8378) section into the old culvert, making sure equipment available that was necessary to www.culvert-rehab.com part of it remained outside of the pipe. complete the project. Then they snapped another section of Made of high-density polyethylene (HDPE) pipe, Snap-Tite pipe using only come-a-longs and chains. Then the Snap-Tite’s® patented male/female machined pipe ends are joined section was slid further inside the pipe until the old pipe “snapped” together, piece-by-piece, and pushed into the full was fully lined. This was done in the same way for each of the length of an existing pipe. Then grout is used to fi ll in any an- culverts. Finally, any annular space or voids were fi lled in with nular space or voids between the old culvert and the new pipe grout, resulting in three fully rehabbed culverts. liner. Snap-Tite® pipe liners also typically increase drainage The installation was completed successfully without fl ow even though the diameter of the pipe liner is smaller than disturbing the structure of the rail tracks and without having the diameter of the original pipe. Snap-Tite also meets AAS- to shut down the rail line. The railroad saved time and money HTO Standard M326 for rehabilitating culverts. by using its own crews.

For more information from Snap-Tite®, visit: www.culvert-rehab.com

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43_PR_0514 SnapTite.indd 43 4/30/14 11:33 AM PROGRESSIVE RAILROADING 44 | WORKFORCE DEVELOPMENT | May 2014

… and to help them succeed.” ployees to continuously improve safety, service and productivity That’s been part and parcel of railroad training programs, by providing the methods, tools and processes to standardize which remain a staple in the management identifi cation and work, eliminate variability and waste, and solve problems at training process at Class Is, as well as at many short lines and their root cause,” Tilgner says. passenger roads. At Union Pacifi c Railroad, nearly all new op- A consistent message that stresses safety, leadership and erating managers graduate from the Operations Management teamwork also is key to a successful culture, Paras says. At the Training program, a 10-month curriculum designed to provide Belt Railway, management values safety and leadership through leadership, management and technical education, along with positive reinforcement and communication, he says. “It takes fi eld training supported by an assigned coach, says Dina Tilgner, years. It’s not going to happen overnight,” Paras adds. “We work UP’s assistant VP of human resources training and development. diligently to make our culture go where we want it to go.” While hands-on leadership is important, UP’s operating Buy-in from top management — buy-in that employees can department lists six “leadership competencies” it wants to see see — is key. “We were not focused enough on results. We only in managers: change management, decision-making, handling worked on getting by, day by day,” Sherlock says of the culture adversity, managing confl ict, developing relationships and in- at Amtrak before Joseph Boardman took over as president and fl uence, and team leadership/teaching, Tilgner says. CEO in 2008. “Now, we’re focused on results. We’re focused on numbers. Our board and our CEO are there to support us.” No overnight fi xes Ensuring the support is there over the long haul is critical. For Meanwhile, Genesee & Wyoming Inc. railroads want managers AARS, the next step is keeping the conversation going beyond a who “focus on safety [and have] the ability to lead and motivate once-a-year meeting — and beyond the organization. people, which includes integrity [and] the entrepreneurial mind- “How do we help our members make connections? How do set that makes our short-line railroads successful,” says Chief we develop online communities? How do we work with other Human Resources Offi cer Mary Ellen Russell. railroad organizations?” Foor says. “The industry, as a whole, But one of the cornerstones of management/leadership that benefi ts, because the right people are meeting [in September] at railroads can instill in newer managers, whether it’s in a class- the right time. I feel like the outlook is good.” ■ room or a train yard, is the development and promotion of a culture that refl ects a company’s values and goals. Robert J. Derocher is a Loudonville, N.Y.-based freelance writer. At UP, it is known as The UP Way, “which engages all em- Email comments or questions to [email protected].

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40-44_PR_0514 Workforce.indd 44 5/2/14 8:39 AM PROGRESSIVEPROGRESSIVE RAILROADING RAILROADING MayMay 2014 2014 | |PRODUCT PRODUCT ROUND-UP ROUNDUP | 45 On board with technology There are plenty of products, systems and software to help railroads monitor locomotive health, fuel use and performance. Here are on-board offerings from 10 technology providers.

ElectroMotive Diesel Inc. ElectroMotive Diesel Inc. offers Intellitrain®, a fully integrated remote monitoring and asset tracking system that the company says “has a proven track record of signifi cantly improving avail- ElectroMotive Diesel Inc. ability and reliability while decreasing maintenance costs.” Intel- Intellitrain® is a remote monitoring litrain is available for any EM2000 based locomotive, EMD says. and asset tracking system available for Meanwhile, the Intellitrain website is undergoing a rede- any EM2000 based locomotive sign, with the focus on delivering “value-added content and easy navigation,” the company says. Primarily staffed by EMD engineers, the monitoring center is headquartered in LaGrange, Ill., and now offers 24/7 support. Locomotives are monitored daily for fault history and health; EMD creates custom alerts and reports. Troubleshooting documentation can be sent directly to the locomotive for access via the locomotive display screen. EMD staff use millions of hours of locomotive run-time signals in the company’s database to develop advanced condition monitoring rules and pattern recognition. Intellitrain can use dedicated cellular modems, Wi-Fi and customer-specifi c communication systems to move data to the EMD back offi ce. EMD continues to upgrade Intellitrain with products and services such as geofencing; the capacity to generate reports from products such as AESS and SmartConsistTM, and user- friendly graphing tools, the company says. The company also GE Transportation is automating the software upload process to push software The RailConnect 360 Remote Monitoring updates through Intellitrain to the locomotive on-board systems. & Diagnostics suite includes an array of on-board and offi ce solutions GE Transportation GE Transportation’s RailConnect 360 Remote Monitoring & Diagnostics suite (RM&D) includes on-board and offi ce solutions that manage and optimize the utilization, performance, movement, placement, maintenance and life-cycle of GE locomotives, according to the company. Designed to provide insight on locomotive health, prevent on-line failures and predict maintenance needs, the products utilize the company’s Predix software platform, which enables asset and operations optimization by providing a standard way to run industrial-scale analytics. RM&D monitors locomotive health, position and other critical factors in real time, providing customers with targeted repair recommendations as needed, along with customer-defi ned alerts around geofencing, fuel and more, the company says.

45-52_PR_0514 LocoMonitor.indd 45 5/2/14 1:18 PM PROGRESSIVE RAILROADING 46 | May 2014

Meanwhile, GE’s on-site RailConnect Power Doctor provides over-the-road support, using live status and performance information, Global Positioning System (GPS) location, weather IONX and geography data to “empower the help desk” in advising IONX offers a line of remote asset monitors locomotive operators and transportation departments, GE says. With the RM&D suite, “customers realize higher productivity and lower overhead by reducing over-the-road failures, optimizing locomotive assignment and planning, operating smarter and more efﬁ cient shops, and optimizing repairs,” the company says. “They also gain real-time access to equipment health, and accurate forecasting of maintenance and parts.”

IONX The most recent addition to the IONX line of remote asset monitors is designed to help users increase ﬂ eet efﬁ ciency and safety, and to “assign accountability whenever necessary,” the company says. Reliable and easy to use, the IONX On-board Vehicle Weighing System delivers automated data analysis in real time. IONX is a division of Amsted Rail®. System features include a motion control bogie with integrated transducers for measuring the car’s payload; and intrinsi- cally safe wireless sensors and a communications manager for remote or local communications, which enables users to monitor loading/unloading in real time. The system provides payload accuracy up to 1 percent of load limit, and the ability to verify A-end versus B-end load imbalance, the company says. The system enables users to avoid overweight penalties, op-

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45-52_PR_0514 LocoMonitor.indd 46 5/2/14 1:18 PM TAKE CONTROL OF IN-TRAIN FORCES.

800,000 trips over 125 million miles – not one broken train. That’s what we call proven.

LEADER® has a unique ability to manage in-train forces which lowers fuel consumption, reduces maintenance costs and makes it possible to haul more freight in less time, saving railroads millions of dollars. Run-in and run-out forces are calculated on-board in real-time and dynamically controlled to reduce slack action and save fuel. LEADER’s ability to control distributed power – particularly asynchronous distributed power – provides a wealth of opportunities to minimize in-train forces and improve safety.

Contact Sammy at [email protected] or visit NYAB.com LEADER energy management system’s for more information to help you improve eﬃciency and safety. locomotive in-cab display

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47_PR_0514 NYAB.indd 47 4/23/14 12:28 PM PROGRESSIVE RAILROADING 48 | PRODUCT ROUNDUP | May 2014

timize car capacity by fi lling to allowable digital wiring harness with a locomotive outages or load limits, and ensure loaded standard terminal strip “makes installa- cars are properly balanced. Recorded tion effi cient,” often taking less than three Lat-Lon L.L.C. payload can be used for billing when cer- hours, the company says. tifi ed, according to National Conference “This comprehensive visibility to op- The Locomotive Monitoring Unit (LMU) on Weights and Measures Publication 14, erations and fuel usage helps determine IONX says. effi ciency, maintenance needs and opti- mal asset usage with an at-a-glance LMU dashboard,” the company says. “[You Lat-Lon L.L.C. can] monitor the critical systems of your Lat-Lon L.L.C.’s Locomotive Monitoring locomotives to keep them in good condi- Unit (LMU) provides a stream of location and reduce maintenance costs.” tion, speed and maintenance data view- GPS and engine voltage sensors able from any web-enabled computer are standard. Other sensor options are or mobile device with the company’s available to monitor automatic engine Apple and Droid apps. Combined with start/stop, traction motor current, fuel the Lat-Lon Start/Stop Controller, the probe, impact, temperature, throttle LMU is a full automatic engine start/ position, oil level and more. stop system with over-the-air program- mable capability for rapid adjustments based on coolant temperature, engine MotivePower Inc., activity, voltage, fuel and digital inputs, the company says. a Wabtec Company With four analog and 12 digital MotivePower Inc., a Wabtec company, inputs, the LMU can be customized to offers the MotivePowerTM Central Diag- monitor brake pressure, traction motor nostics System (MPXCDS), which can current, throttle position, man-down help fl eet managers improve on-time and additional sensors. An optional performance, reduce operating costs

The Cost Effective, Long-term Solution Direct Fixation Slab Track System

Low Vibration Track System (LVT) The project-based slab track system for the requirements of tomorrow is installed in 3 of the 4 longest railway tunnels worldwide. It has stood the test over more than 600 miles — no matter whether it’s metro or high-speed lines. CALL 440.591.9018

Construction Polymers Technologies, Inc. 8160 Devon Court | Chagrin Falls, Ohio 44023 | USA Tel. 440.591.9018 E-mail [email protected] www.constructionpolymerstech.com

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45-52_PR_0514 LocoMonitor.indd 48 5/2/14 1:18 PM PROGRESSIVE RAILROADING PROGRESSIVE RAILROADING May 2014 | PRODUCT ROUND-UPMay 2014 | 49

and increase revenue through productivity, enhanced security, proactive service management and preventative maintenance information, the company says. MotivePower Inc., The Internet portal enables authorized personnel to view locomotive status based on predetermined critical monitoring a Wabtec Company features. Once logged in, authorized personnel or Motive- The MotivePowerTM Central Diagnostics System Power service representatives can access information critical (MPXCDS) to ensuring increased ﬂ eet availability. Information that can be remotely viewed and accessed via the portal includes: locomotive status (active or inactive), location, condition of major systems, faults and fault resolution, and access to manuals, schematics and drawings. A “highly intuitive user interface” enables rapid implementation at various levels of operation, the company says. Major systems feed fault data directly into the MPXCDS via serial or Ethernet protocol. The CDS then transmits data securely through the on-board modem directly to the server site.

New York Air Brake L.L.C. Developed by New York Air Brake L.L.C.’s Train Dynamic Systems Division, LEADER® train management software is designed to calculate ideal propulsion and braking applications New York Air Brake L.L.C. to optimize the use of power, brake force and fuel, making it LEADER® train management software possible for heavy-haul freight trains to haul more freight in less time, the company says. Introduced in 1999, LEADER is deployed on more than 3,000 locomotives worldwide and has proven to deliver 6 percent to 8 percent fuel savings, depending on track topography and the makeup of the consist, the company says. LEADER AutoControl® automatically controls throttle and dynamic brake while the locomotive driver uses an on-board display to monitor operations. Run-in and run-out forces are calculated on board in real-time, and are dynamically controlled to reduce slack action. LEADER also can control distributed power. “Over 125,000,000 miles and more than 800,000 trips, our system has never broken a train,” says Train Dynamic Systems Division General Manager Bill Sturtz.

Railhead Corp. Railhead Corp. Railhead Corp. offers on-board video systems for locomo- LDVR-HD tives, cab cars and track vehicles. The company has more than 3,500 systems installed on Class Is, short lines, and light-rail and commuter-rail systems worldwide. Soon, Railhead will release a high-defi nition IP system that supports up to eight cameras and delivers what the company terms as “the clearest video quality on the market.” And, designed for locomotive use, Railhead’s LDVR-HD is Mil- Spec, FRA and SAE rated for durability and reliability in harsh railroad environments. The company’s LDVR-HD recorder is designed to provide “superior” video streaming capabilities, is wireless-ready and will integrate with crash-hardened memory modules and event recorders, the company says. Railhead’s “service-proven and scalable” software offers eight years of forward and backward compatibility, the company says. All video is encrypted to ensure authenticity and has a user-friendly Vehicle Information Back Offi ce Software for fl eet-wide management. Railhead also works OEM and af- termarket suppliers to integrate and factory install its systems. In addition, the company offers custom solutions.

45-52_PR_0514 LocoMonitor.indd 49 5/2/14 1:18 PM PROGRESSIVE RAILROADING 50 | May 2014

Railserve Get your trains A remote monitoring system for ® to talk about LEAF Gen-Set locomotives their problems.

Railserve Earlier this year, Railserve rolled out a new remote-monitoring system for its LEAF Gen-Set® locomotives that provides real- time, mission-critical performance data to improve safety and operating efﬁ ciency. The company now uses Observe/Ana- lyze/Respond™ (OAR) technology developed by Alternative Motive Power Systems (AMPS). OAR enables multiple users to track a range of operating data from remote locations. OAR processes data from the AMPS Locomotive Control Unit on board each Railserve LEAF; the data then is transmit- ted via Wi-Fi or cellular systems to a web-based dashboard for locomotive status and performance monitoring by on-site plant managers or operations personnel at remote locations. Data compiled includes track speed violations; man-down alerts; hard couplings; throttle positions and forward/reverse settings; penalty applications; cab entry; and remote-control digital tracking. Additional OAR data can be used to improve switching productivity, reduce wheel slip and excessive idling, and provide low-temperature monitoring in cold weather, the company says. The on-board LCU communicates with all technology on the Railserve LEAF, including power generators, traction con- Communication is key to any healthy relationship. trol, throttle, reverser, brake and the three-axis accelerometer. Using our cutting edge technology, your trains Data fed to OAR can be displayed in various forms including will have the ability to reach out to you when there plots, charts, indicators (red/green) and histograms. is a problem. No more guessing. No more trial and error. Tackle problems before you have them. Wi-Tronix L.L.C. Stop by booth 408 at the APTA Rail Conference Wi-Tronix L.L.C. offers the Wireless Processing Unit (Wi-PU), and let’s talk. an on-board platform for communications that the company says “provides the on-board foundation” for locomotive remote monitoring needs. The Wi-PU is in revenue service on Class Is, short lines and regional passenger railroads. Wi-Tronix® enhanced overspeed monitoring also is avail- 1 855 510-7837 | QuesterTangent.com able, which helps users track at-risk train handling behavior

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45-52_PR_0514 LocoMonitor.indd 50 5/2/14 1:18 PM Roadshowthe Siemens Van 2014 RSSI C&S Exhibtion!Visit Booth 465

At the Crossing On the Wayside In the Cab

Siemens Rail Automation

www.usa.siemens.com/rail-automation

Siemens Trainguard PTC train control, conventional train control, wayside signaling and grade crossing warning products complemented by a broad range of engineering services and supported by an unmatached field service organization make Siemens the first choice for C&S equipment and systems in North America.

FREE INFO: Circle 109 Answers for infrastructure and cities.

51_BOM_0514_lr SIEMENS.indd 51 4/23/14 11:01 AM PROGRESSIVE RAILROADING 52 | PRODUCT ROUNDUP | May 2014

while triggering real-time notiﬁ cation Wi-Tronix L.L.C. at dispatch centers. Meanwhile, in-cab alerting is designed to increase “crew at- Wireless Processing Unit (Wi-PU) tentiveness and situational awareness,” the company says. A railroad’s maximum authorized track speed, including slow orders and temporary speed restrictions, are sent to the on-board Wi-PU. The Wi-PU continuously evaluates speed restrictions against the locomotive’s current location and speed; alerts are issued when an overspeed condition occurs. ZTR Control Systems Any locomotive currently equipped Remote monitoring solutions with a Wi-PU can be updated to include optional in-cab audible alert functional- ity, the company says.

ZTR Control Systems Available as an integrated option with the NEXSYS III-i control system or as a stand-alone option, remote monitoring solutions from ZTR Control Systems L.L.C. are available across North America and in the global markets ZTR serves. The solutions, which provide remote connectivity to locomotives, deliver critical information such as locomotive health, location, alerts (fault and diagnostic reporting), and are designed Make a lasting connection with to streamline maintenance planning, ﬂ eet reporting and remote troubleshoot- HARTING USA ing, according to the company. The technology is secure, ﬂ exible and open, enabling railroads to choose where the data goes and how it’s com- municated, customer security levels and more, the company says. It allows for HARTING M12 D-Code connectivity and communication with Crimp Connector ZTR and non-ZTR equipment; it’s also expandable (including LIG options), al- lowing connection with event recorders, Ha-VIS EtherRail® fuel measurement and other devices, the Cat. 5 and 7 Cable company says. Web services also are available that can tie into existing business software HARTING har-speed M12 systems. Features include GPS mapping; Crimp Connector GeoZone® — Fencing; alert management; reporting services such as the Near Me™ Smartphone App and SnapSite™ iPad App; third-party system integration; and ZTR remote support service. ■ Robust Ethernet Communication Connectivity. HARTING provides a complete Ethernet solution for all of your Email comments or questions to railway needs. [email protected]. • Crimp termination technology • IP 65/IP 67 protection • Superior shock, vibration and temperature resistance • Cabling solutions meeting relevant railway standards www.HARTING-usa.com

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45-52_PR_0514 LocoMonitor.indd 52 5/2/14 1:18 PM PROGRESSIVE RAILROADING May 2014 | ADVERTISER INDEX | 53 Reader Information Center It’s easy to get the product information you want. Use the product information card in this issue and circle the numbers that correspond with the products you want information on. Then either mail the card or fax it to 888-847-6035.

COMPANY PAGE CIRCLE # COMPANY PAGE CIRCLE #

Amsted Rail Co. Inc...... 3 ...... 102 Railroad Cooperation & Education Trust ...... 8 ...... 011 312-922-4516 • www.amstedrail.com 866-RAILCET • www.railcet.org Ansaldo STS USA ...... 22 ...... 012 Railway Equipment Company ...... 21 ...... 112 800-351-1520 • www.ansaldo-sts.com 800-624-5794 • www.rwy.com Balfour Beatty Rail Inc...... 31 ...... 018 RailWorks Corp...... 20, 34 . . . 006, 016 904-378-7100 • www.bbri.com 866-905-7245 • www.railworks.com Columbus Castings ...... 27 ...... 113 ReliOn Inc...... 46 ...... 022 614-445-2123 • www.columbuscastings.com 509-228-6500 • www.relion-inc.com Construction Polymers Technologies Inc...... 48 ...... 027 Road and Rail Services Inc...... BC ...... 111 440-591-9018 • www.constructionpolymerstech.com 502-365-5191 • www.roadandrail.com Danella Rental Systems Inc...... 23 ...... 004 S&C Distribution Co...... 9, 25 . . . 005, 020 800-969-6200 • www.danella.com 708-444-4908 • www.sandcco.com Diversified Metal Fabricators Inc...... 10 ...... 001 Sapa Extrusions North America ...... 13 ...... 100 404-875-1512 • www.dmfatlanta.com 877-710-7272 • www.sapagroup.com/NA Dixie Precast Inc...... 7 ...... 008 Siemens Mobility ...... IBC ...... 114 770-944-1930 • www.dixieprecast.com 916-681-3000 • www.siemens.com GE Lighting Solutions ...... IFC ...... 105 Siemens Rail Automation ...... 51 ...... 109 888-694-3533 • www.GELightingSolutions.com 800-626-2710 • www.usa.siemens.com/rail-automation Harting Inc. of North America ...... 52 ...... 024 Snap-Tite Isco Industries ...... 43 ...... 115 847-717-9217 • www.harting-usa.com www.culvert-rehab.com • 502-714-5307 Herzog Railroad Services Inc...... 38 ...... 013 Softrail ...... 7 ...... 007 816-233-9002 • www.hrsi.com 888-872-4612 • www.softrail.com Holland Co...... 17 ...... 108 Trainyard Tech L.L.C...... 39 ...... 015 708-672-2300 • www.hollandco.com 724-443-8881 • www.trainyardtech.com Lat Lon L.L.C...... 46 ...... 023 Unitrac Railroad Materials Inc...... 30 ...... 017 877-300-6566 • www.lat-lon.com 412-298-0915 • www.unitracrail.com LTK Engineering Services ...... 25 ...... 009 voestalpine Nortrak ...... 33 ...... 106 215-542-0700 • www.ltk.com 604-273-3030 • www.voestalpine.com/nortrak Mass Electric Construction Co...... 36 ...... 014 Vossloh North America ...... 29 ...... 107 972-505-4700 • www.MassElect.com 800-554-0554 • www.vossloh-north-america.com Motive Equipment Inc...... 39 ...... 026 WAGO Corporation ...... 5 ...... 104 414-446-3379 • www.motiveequipment.com 262-255-6333 • www.wago.com New York Air Brake, a Knorr Brake Co...... 47 ...... 110 Wilmore Electronics Co. Inc...... 38 ...... 019 315-786-5200 • www.nyab.com 919-732-9351 • www.wilmoreelectronics.com Northeast Logistics Systems L.L.C...... 25 ...... 010 617-418-3570 • www.nels.us.com Phoenix Contact ...... 19 ...... 103 800-888-7388 • www.phoenixcontact.com Pintsch Tiefenbach ...... 42 ...... 028 618-993-8513 • www.tiefenbach.com Advertising Sales PNC Equipment Finance ...... 35 ...... 101 PUBLISHER www.pnc.com/ef Stephen Bolte ProgressiveRailroading.com/MyProgressiveRailroading.com . . . . .44 6671 West Indiantown Road, Suite 56-426 414-228-7701 ext. 458 • http:/bit.ly/Kn5mwG Jupiter, FL 33458 561/743-7373; FAX 561/743-1973 Progessive Railroading Mobile Site ...... 41 [email protected] 414-228-7701 ext. 503 • www.progressiverailroading.com Progress Rail Services Corp...... 24 ...... 002 EASTERN UNITED STATES 256-593-1260 • www.progressrail.com Bridget Quaglia, Eastern Regional Sales Manager 1602 Cleveland Ave., Wyomissing, PA 19610 PTMW Inc...... 37 ...... 025 610/207-0252; [email protected] 785-232-7792 • www.ptmw.com QuesterTangent ...... 50 ...... 021 CENTRAL UNITED STATES 855-510-7837 • www.QuesterTangent.com Mike Singler, Central Regional Sales Manager Railquip Inc...... 18 ...... 003 16019 Hometown Drive, Plainfield, lL 60586 770-458-4157 • www.railquip.com 815/302-7055; [email protected]

53_PR_0514 ReaderInfo.indd 53 5/2/14 10:23 AM PROGRESSIVE RAILROADING 54 | SERVICES | May 2014 PROFESSIONAL SERVICES Directory

Professional Services Directory Rates Per column inch (3.375” x 1” deep), per insertion 1X$220 • 3X$215 • 6X$210 • 9X$205 • 12X$200 Send grayscale (b/w) press quality electronic files to: www.tradepress.com/uploads

Classified Advertising Classified Advertising Rates Per column inch, per insertion (column inch is 3.375” x 1” deep): $295/inch. Includes a month in print and online. Submit your ad to: www.progressiverailroading.com/classifiedads Blind box number: $30 additional

Trainmaster - Blue Island, Illinois Request For Bids - Locomotives Wanted Iowa Interstate Railroad is recruiting for a Trainmaster to The Port Authority of NY & NJ requests bids for the follow- direct and coordinate train operations in a safe, efficient and ing services: BID# 37137 - Construction & Delivery of Three economical manner. For a complete job description please (3) Refurbished Switcher Locomotives for New York New visit our website: www.iaisrr.com Jersey Rail, LLC at Port Authority Marine Terminal, Greenville Yard, Jersey City, NJ. These services may be funded in whole or in part by the Federal Highway Administration (FHWA). Accordingly, the FHWA requirements will be required as EXPERIENCED RAIL PROFESSIONALS part of the agreement and will be applicable to the perfor- THE RAILROAD GROUP, LLC: The Premier Railroad Contractor mance of such services. BIDS DUE: 04/10/2014 at 11:00 in the Northeast is currently looking for Experienced AM. Please monitor the Bid online to ensure your awareness Candidates who are Qualified, Enthusiastic, and Hard Working of any changes. Contact Info: http://www.panynj.gov/ Individuals for the following positions: *Track Construction business-opportunities/bid-proposal-advertisements. Superintendent *Project Manager *Project Estimator *Project html?tabnum=5 Engineer *Exp. Track Equipment Operator EEO/AA employers Forward inquiries /resumes to: [email protected] General Manager, Cloquet Terminal Railroad The Cloquet Terminal Railroad, a subsidiary of Sappi, has an AAR Tank Car Safety Analyst immediate opening for a General Manager. This position, Manage tank car safety initiatives affecting RR industry. located in Cloquet, MN, offers the opportunity to work and Manage the Tank Car Cte. (TCC) safety programs, including grow in a vibrant, forward-thinking environment, with a team tracking approvals, facility certifications, and service trials. of highly-skilled, dedicated employees. We offer a competitive Manage online application database. BS required, concentra- compensation package including full benefits; training - paid tion in engineering, computer science or related field pre- vacation - 401K - Health, Vision & Dental. For a complete ferred. Experience in computer programming and database listing of job requirements and to apply, please go online management required. Working knowledge of 49 CFR Part 171- to www.sappi.com/aboutus/careers/jobs Applications will 180, AAR MSRP Section C Part III, and Specifications for Tank be accepted through Monday, April 21st, 2014. Human Cars (M-1002) helpful. Some travel required. EOE AA/M/F/D/V Resources Department An Equal Opportunity Employer Contact Info: [email protected]

54,55_PR_0514 PSD/Classified.indd 54 4/23/14 10:57 AM PROGRESSIVE RAILROADING May 2014 | CLASSIFIED | 55

Marketing & Sales Project Manager Vermont Rail System, a long established and growing The Virginia Railway Express, a rapidly growing commuter rail Northeast Short Line rail carrier is accepting applications for operation connecting Washington DC with Northern Virginia a full time Marketing & Sales position. Candidate must have and surrounding counties, is in need of an experienced rail experience in railroad marketing and sales, with knowledge Project Manager to direct railroad design and construction of rail equipment, commodities, and pricing. Transportation projects from start to finish. This position will function as the strategy and logistics experience a must. Candidate must owner representative overseeing contractors performing vari- be a creative and flexible problem solver. Travel mostly in ous infrastructure improvements to main line tracks, signals, Northeast, with office at Burlington, VT. headquarters. Send passenger stations, yards, and other supporting facilities. resume and salary requirements to: [email protected]. Work experience in a rail operating environment is required along with a background encompassing design, environmental evaluation, and construction. Minimum of a PE license and Bachelor Degree in Civil Engineering or related curriculum Mechanical Operations required along with at least 5 years of project management Vermont Rail System, a long established and growing Northeast experience. Great benefits. Salary range: $79,000-$131,000, Short Line rail carrier is accepting applications for a full time depending upon prior experience and education. Job descrip- Locomotive Mechanic with a strong mechanical aptitude and tion accessible on our website: www.vre.org. We ask that good interpersonal skills. Candidate must have experience with interested candidates e-mail their cover letter, resume, EMD GP-38 and GP-40 locomotives, be skilled working on EMD salary history and three references to: Personnel Specialist, 645 engines, possess sound electrical troubleshooting abili- 1500 King Street, Suite 202, Alexandria, VA 22314 ties, be familiar with locomotive air systems, and be proficient in welding. Minimal travel primarily in Vermont, with home terminal at Burlington, VT. headquarters. Send resume and salary requirements to: [email protected]. GE Rail Services - Engineering GE Capital, Rail Services offers specialty financing with deep rail industry experience and a highly diversified equipment portfolio. A leader in the industry with over 100 years of Professor/Exec Director in Railway Management experience, Rail Services offers a variety of railcars as well as Intellectual leadership for the MSU Railway Management repair and maintenance services throughout North America. Program (RMP). Create and deliver executive seminars and Our team holds leadership roles in many key industry organi- short courses; teach the railway management track of the zations, and we actively engage with regulatory bodies that Master of Science in Supply Chain Management program; play a critical role in defining upcoming standards. We are liaison and influence with the railway industry; lead industry currently seeking to expand our engineering function with and other grant funding; undertake research; direct RMP with a variety of opportunities. Job Number 1936130: Reliability advice from donors and rail industry experts, including indus- Engineer Job Number 1920007: Engineering Manager - try trends. Posting #9226 Contact Info: www.jobs.msu.edu Customer Support Job Number 1940221: Engineer - Texarkana Shop Job Number 1929546: Engineer - Coatings Interested applicants should access link below and reference above Locomotive Superintendent, Management job numbers. You must be able to satisfy the requirements of Section 19 of the Federal Deposit Insurance Act. Contact Journeyman Locomotive Electrician needed to manage a fleet Info: www.gecareers.com of 30 locomotives. General Electric and EMD experience a must. Send resumes to Providence and Worcester Railroad, Attn: David Rutkowski, CMO, 75 Hammond Street, Worcester, MA 01610. An Affirmative Action/Equal Opportunity INDEPENDENT MANUFACTURERS’ REPRESENTATIVE Employer/M/F/D/V Contact Info: [email protected] We are a prominent Maintenance-of-Way Products Manufacturer seeking an Independent Manufacturers’ Representative selling to Class 1 railroads in the western Manager, Regional Sales United States. Specifically, BNSF Railway and Union Pacific Railroad. Our improved and expanded product line offers Loram Maintenance of Way, one of the leading suppliers of Class I customers excellent quality, delivery and value. track maintenance machinery and services in North America Manufacturers’ representative will work closely with our inside and the global market, is accepting applications for a full sales associates and our engineering associates for sales sup- time Regional Sales Manager position. Candidates must have port and technical assistance. We have been in business for an understanding of the railroad maintenance environment over 100 years. This is an excellent opportunity to work with and business-to-business sales experience. 60-70% travel a recognized, well-established company selling high quality, is required for this position. To view the full job descrip- widely accepted products in the rail industry. Send inquiries tion and submit your resume and application please visit to: Progressive Railroading, 2100 W. Florist Ave., Drawer http://jobs.loram.com or email: [email protected] 452, Milwaukee, WI 53209

54,55_PR_0514 PSD/Classified.indd 55 4/23/14 10:57 AM PROGRESSIVE RAILROADING 56 | FROM THE EDITOR | May 2014

Stephen Bolte Publisher 6671 West Indiantown Road, Suite 56-426 A promising day in Jupiter, FL 33458 561/743-7373; FAX 561/743-1973 [email protected] the neighborhood Dick Yake Vice President – Content Development On April 23, I attended “NAFTA Next: Energizing Stable [email protected] Trade Corridors Across North America,” held April Pat Foran 22-25 at the Palmer House Hilton in Chicago — thanks, Editor Coalition for America’s Gateways and Trade Corridors [email protected] (CAGTC), for the invite. Regrettably, I was there only that Jeff Stagl Managing Editor one day, beginning with the release of “20 Years After [email protected] NAFTA,” a study conducted by the Texas A&M Transpor- Angela Cotey tation Institute. In short: The pact has helped harmonize climate-change policies Senior Associate Editor [email protected] and effi cient trilateral energy production supply chains, researchers concluded. Julie Sneider It’s also contributed to U.S.-Canada surface trade doubling and U.S.-Mexico trade Associate Editor quadrupling since NAFTA was signed in 1994. [email protected] CAGTC Founding Chair Mort Downey and former U.S. Transportation Secre- Frank Richter Co-Founder (1916-2013) tary Rodney Slater noted the day’s speakers would examine the pact’s promises Wayne Winter kept (notably, the trade boost) and the ones unfulfi lled (there hasn’t been enough Vice President of E-Media and infrastructure and process modernization, nations aren’t working together to pre- Creative Services [email protected] pare for the new energy world, there’s no freight policy). It would help if NAFTA Jeff Giencke nurturers changed they way they talked about trade agreements, said Canadian Creative Director Ambassador to the United States Gary Doer in a morning keynote. [email protected] “We need to turn it from an economic debate to people’s backyards,” he said. Emily Hawkins Graphic Designer “Talk about North American ‘neighbors,’ not GDP.” [email protected] In his afternoon keynote, BNSF Railway Co. Execu- “We see the promise Jon Warner tive Chairman Matt Rose talked a bit about how his Electronic Production Coordinator of NAFTA being fulfilled.” railroad and his railroad’s neighbors to the north and [email protected] south have become more neighborly these past 20 Bobbie Reid — BNSF’s Matt Rose Production Director years. “When I joined BNSF in 1993, a number of ports [email protected] were up for sale, and few saw value in them,” he said. Wendy Melnick “Intermodalism was just beginning to be mentioned. The two Canadian railroads Production Manager [email protected] did some cross-border [traffi c] and three Mexican railroads didn’t do a lot.” Eric J. Muench Now, they do. BNSF hit a “high-water mark” of 200,000 units in Mexico Director of Audience Development in 2012 and moved almost as many in 2013, and handled about 350,000 units Send address and other changes to in Canada last year, he said. Meanwhile, the railroad continues to invest — in [email protected] infrastructure, facilities and process improvements — to meet future demand, COLUMNISTS including $1 billion this year in its Northern Corridor. Tony Hatch “We still believe the best is yet to come,” Rose said. Toby Kolstad Witness crude by rail. Regardless of what happens with the Keystone XL Pipe- line, CBR will be “the largest game-changer” of all NAFTA commodities, Rose CORPORATE Robert J. Wisniewski predicted. “We see the promise of NAFTA being fulfi lled.” President/CEO Even so, borders and barriers still exist, NAFTA Nexters reiterated. The focus [email protected] of NAFTA “next” should be on making trade as seamless as possible — or, at Jeff Schenk Chief Operating Offi cer/ least, making it “less hard,” Rose said, although the prospects of that happening Chief Financial Offi cer in the current political clime are murky at best. As Rose put it: “NAFTA was hard [email protected] [to pass] then — I think it would be impossible today.” EXECUTIVE AND EDITORIAL OFFICES 2100 W. Florist Ave., Milwaukee, WI 53209 414/228-7701 Pat Foran, Editor FAX 414/228-1134 Address Changes: [email protected]

® Reprint Pricing: Progressive Railroading is a registered trademark of Trade Press Media Group, Inc. Contents copyrighted © 2014 by [email protected] Trade Press Media Group, Inc. The publisher assumes no liability for opinions expressed in editorial contributions to the magazine. The publication is not responsible for claims in advertisements. Printed in the U.S.A. Email: [email protected] American In-House Web: Design Awards www.progressiverailroading.com

56_PR_0514 Editor.indd 56 5/2/14 1:21 PM American-made Solutions - An Answer for Lasting Growth Siemens’ answers for mobility help people and business reconnect with their city and one another.

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