RAILROAD DEVELOPMENT CORPORATION: AMERICANS IN PARIS... AND KÖLN by David Haydock From 2001 to 2007 Today’s Railways Europe was able to report on the fascinating story of how a group of mainly UK ES 64 U2-026 and American companies took a controlling interest in Estonian Railways (Eesti Raudtee) then shook it up, bringing in a heads HKX batch of GE diesels previously used in the USA. Among the American companies was Railroad Development Corporation service 1800, (RDC), a company set up by one Henry Posner III which has made a speciality of turning round ailing railways across formed of the world. The globe-trotting Mr Posner then started to take an interest in the constant contraction of wagonload services the former in France. Quietly, Posner was investigating the possibilities of taking over some or all of French wagonload traffic and TEE stock, at making it pay. The final result was the creation of a joint venture known as RegioRail which TR EU reported last month. Düsseldorf- At the same time, Posner had decided to bring financial aid and management expertise to a project to launch private Derendorf on passenger trains in Germany. The result was the HKX service which was launched in summer 2012. We travelled to 24 July 2012. Germany to test ride the train in the company of Henry Posner III himself. Patrick Böttger

A ride on the Hamburg-Köln worked for Veolia Verkehr and had been Germany and possibly elsewhere. In the end, Express instrumental in relaunching that company’s HKX settled for Class 4010 EMUs which had HKX was launched on 23 July 2012. The InterConnex passenger service. The pair recently been withdrawn by Austrian Railways original plan had been to introduce three needed capital in order to launch a private (ÖBB). These 6-car units, of which 29 were return trips per day on the Hamburg–Köln passenger service and this eventually came built by SGP from 1965 to 1978, were composed route, in competition with DB’s hourly IC from RDC and Michael Schabas, who had, of a Class 4010 power car, a Class 6010 service. However, problems with rolling stock amongst many other things, set up GB driving trailer and Class 7010, 7110 and 7310 led to an interim offer of between one and Railways in Britain. HKX first announced its intermediate trailers. The units were described three trains per direction per day. intention to operate from Hamburg to Köln in Platform 5 Publishing’s Austrian Railways HKX was an idea first promoted by a on October 2009, but it took almost three stock book as “very comfortable” and had company called Locomore, based in Berlin, years to launch the first trains. pressure ventilation from the beginning, some which was founded in 2007 and became a of them later receiving full air conditioning. railway undertaking licensed to operate both Traction and rolling stock HKX purchased a total of nine power cars freight and passenger trains in 2008. The When HKX was seeking rolling stock, the and 43 trailers. The units chosen were mostly company was founded by Derek Ladewig company was looking for coaches which were withdrawn in 2008– 09 with a few out of service and Carsten Carstensen, who had formerly comfortable and which could operate in since 2006–07 and one since 2004.

20 TODAY’S RAILWAYS EUROPE 205 Right: 6010.024 heads set 4010.024 near Mautern on 19 September 2008, forming a Salzburg–Graz IC train. The driving trailer and three other coaches from this set have been bought by HKX. Roland Beier

Below right: HKX driving trailer 6010 001 is seen at the Velim test circuit in the Czech Republic on 26 January 2012. The company is already using branding including dark and pale purple, as on this coach, plus orange, but has been unable to use more than partial vinyls on the stock deployed at present. Quintus Vosman

Class 4010 coaches acquired by HKX It was quickly decided that the power cars would not be used as they were not Class 6010 driving trailers (11), 42 first class (2+1), too reliable and required a high level toilet, washroom: 6010 001, 004, 006, 013, 016, 018, of maintenance. Modern electric locos 022, 023, 024, 025, 029. Class 7010.1 trailers (10), 60 second class (2+1), would instead be leased for traction and 2 toilets, 2 washrooms: 7010 101, 104, 106, 107, 108, the Class 4010s were scrapped, except 112, 113, 122, 124, 125. for 4010 001 donated to a preservation Class 7110.1 trailers (11), 66 second class group. HKX also scrapped the one (11 compartments), 2 toilets: 7110 101, 106, 107, 108, restaurant car it bought. 112, 113, 119, 122, 123, 124, 125. A second decision was not to Class 7110.2 trailers (10), 60 second class (10 compartments), 2 toilets: 7110 201, 206, 207, use the driving trailers (d.t.s) as 208, 212, 213, 219, 222, 223, 224. such – this would have required extensive rewiring for compatibility For the record, nine power cars also originally sent to SFW Delitzsch in May/June 2009 but not retained for with modern locos. Instead, the plan use and subsequently scrapped: was to create six trains of six coaches, 4010 001, 004 (fire damaged), 006, 007, 008, 013, 016, all but one with a driving trailer 021 and 029. at each end. The reason for this is Restaurant car 7310.001 was also scrapped. that only the d.t.s have conventional buffers and couplers – connections between cars are semi-permanent by solid bars. Maximum speed will be raised from 150 to 160 km/h as was case for a small number of Class 4010 in the past. Trials were carried out at the Velim test circuit in the Czech Republic during 2012, and it was then found that modifications, including fitment of a new braking system, would be necessary to achieve this. Seating will remain basically as before (2+1 seating in open coaches and six seats per compartment in others), the main change being the addition of a wheelchair lift and door to one car together with space and toilet for the disabled. A 6-car set will have about Below: HKX driving trailer 6010 022 is seen being hauled by loco 124 601 at the Velim test circuit on the 330 seats. same date. Quintus Vosman

TODAY’S RAILWAYS EUROPE 205 21 Left: The daily northbound HKX train stands at Hamburg Harburg on 30 October 2012, highlighting the vinyls on the loco which advertise Hamburg–Köln “from 5 cents a kilometre”.

Right: Henry Posner III, in one of the former TEE coaches on the same date.

Below left: One of the former TEE compartments, refurbishment having been carried out by Alex. Inset, a sign showing that a compartment is not reserved and available to passengers buying tickets on board. David Haydock (4)

Former TEE coach numbers 56 80 19-94 006-9 56 80 19-94 023-4 56 80 19-94 034-1 56 80 19-94 041-6 56 80 31-70 186-1 Traction on my train was by MRCE-owned Taurus locos ES64US-030 and 034, also known as 182 530 and 534.

The company moved all of the coaches, and power cars, from Austria to SFW Delitzsch during May and June 2009. This was to be a “staging post” while a company was found to carry out refurbishment. HKX chose Polish company H Cegielski, but the company ran into trouble and work has been severely delayed. The planned launch in 2011 was put back several times. With other preparations well advanced, HKX decided to launch a limited service in July 2012. For this the company managed to obtain a set of former TEE Rheingold air-conditioned coaches (see table) from Netinera which had used them on its Alex service from München. These coaches are all formerly first class, with side corridors and 6-seat compartments, all except one having been refurbished for Alex services. One coach is a composite, half of which has plastic-covered former second class seats. In fact, the train is single class, almost all passengers riding in former first class accommodation. Locos used are Taurus electrics ES 64 U2-026, 030 and 034, all hired from MRCE. In the case of the TEE stock, the train is top-and-tailed by two locos, both of them powered. In order to cover extra trains over the weekend, HKX hires a second train, this time from Veolia subsidiary Nord- Ostsee-Bahn (NOB) which operates trains north from Hamburg with diesel traction. This stock is completely different, having been built recently by Bombardier, with wide entrance doors, an open seating arrangement (with around 300 seats compared with 250 on the TEE rake) and push-pull capability. The train thus only needs one locomotive and is used from Friday morning until Sunday evening. Veolia carries out heavy maintenance on the trains, but has to haul them with diesel traction to Husum, 150 km north of Hamburg, to do this.

22 TODAY’S RAILWAYS EUROPE 205 Train /  –  –  Köln Hbf 07.01 12.01 17.01 21.38 Düsseldorf Hbf 07.27 12.27 17.27 22.07 Duisburg Hbf 07.42 12.42 17.42 22.24 Essen Hbf 07.55 12.55 17.55 22.36 Gelsenkirchen Hbf 08.05 13.05 18.05 22.46 Münster Hbf 08.47 13.47 18.47 23.23 Osnabrück Hbf 09.14 14.14 19.14 23.49 Hamburg Harburg 10.56 16.00 20.57 01.32 Hamburg Hbf 11.07 16.13 21.09 01.44 Hamburg Dammtor 11.14 - 21.16 01.49 Hamburg Altona 11.22 16.23 21.22 01.55

Train –  –  – Hamburg Altona 06.35 11.37 16.37 Hamburg Dammtor - - 16.45 Hamburg Hbf 06.49 11.51 16.50 Hamburg Harburg 07.00 12.02 17.01 Osnabrück Hbf 08.44 13.44 18.44 Who is Henry Posner III and what is he doing in Europe? Münster Hbf 09.09 14.09 19.09 Gelsenkirchen Hbf 09.51 14.51 19.51 The first Henry Posner was a Polish immigrant who arrived in Pittsburgh, Pennsylvania Essen Hbf in the early 20th century. He made a fortune in the billboard and neon sign business, 10.04 15.04 20.04 then his son, Henry Posner Jr, who died in 2011, created a second fortune by investing Duisburg Hbf 10.18 15.18 20.18 in diverse businesses. Düsseldorf Hbf 10.34 15.34 20.34 The third Henry Posner, though, was an out-and-out railway enthusiast and, after Köln Hbf 10.57 15.57 20.57 graduating from Princeton University, joined north-east US freight operator Conrail, first as an assistant train master on its Detroit–Toledo corridor, then gradually rising to Having launched the service with success, manage the accounts of food product shippers at Conrail’s New York offices. and with the purchased stock nowhere near However, Henry saw the big US railroads shedding unwanted routes and new regional ready, HKX has decided to hire more stock companies emerging and decided he “wanted to run his own railway”. So, with his family’s as soon as possible, with the aim of operating financial backing he created Railroad Development Corporation (RDC) with business the three daily train pairs originally planned. partner Bob Pietrandrea in 1987. It took four years before RDC found the ailing Iowa In principle, three train pairs a day can be Interstate, and invested $1.2 million to acquire 20% of the company then another 13 operated with two trains, although not on years was necessary before RDC took full control of the company. Today, Iowa Interstate the present timetable because of turnround has about 400 miles of track (650 km), crossing Iowa west to east and reaching Chicago, times at each end. Illinois using trackage rights east of Utica. The company has a fleet of 47 locos (plus two cabless “slugs”) and hauled 105 000 wagonloads in 2010. Staffing and prices It took a great deal of patience, but that seems to be something Henry Posner has HKX decided at an early stage to leave the in... wagonloads. Outside the US business, RDC has taken railway management provision and maintenance of the train to a experience across the world – to Argentina, Colombia, Estonia*, Guatemala*, Malawi*, subcontractor, signing up Veolia to carry out Mozambique*, Peru. In several cases RDC has got into some heroic tussles with local the task. Veolia therefore provides the driver politicians, and has sold up (in countries with asterisks) when the going was too difficult. and the train captain, who is responsible In other cases, the sale was far more amiable... and profitable. for safety and technical details, while HKX Clearly Mr Posner loves railroading, adores a challenge and is willing to put his money deploys three stewards on each train, one where his mouth is. On visits to Europe from 2007, Henry started to make public lectures of whom is also the team leader. HKX has counter to the prevailing culture of dropping wagonload traffic and concentrating on recruited staff who must speak both German block or intermodal services. Posner argued that the latter two would deliver increasingly and English and has gone out of its way to reduced margins under the EU open-access model, but that a well-managed wagonload seek diversity, of origins, age and sex, “to service could command much higher prices and better margins. Seeing the continuous reflect the Germany of today.” The result cutbacks in wagonload services in France, and the clear disinterest shown by SNCF, he is an interesting mix, stewards including even offered to take over the whole of the French network but was eventually rebuffed – one Brazilian (additional Portuguese) and a it was a far too political move. However, he continued to study the French scene closely Kazakh (Russian). Few of the on-board staff, and finally plumped for the creation of a joint venture with Eurorail. The result may or managers, has previous railway experience. be the same. Fret SNCF is still shedding wagonload traffic, whilst its competitors are CEO of HKX and head of RDC Deutschland succeeding in winning some traffic back and are now working together and gradually is Eria Kreienkamp, who previously worked building a “network” piecemeal. in various marketing and management In 2009 RDC joined two other partners in Germany to form Hamburg-Köln Express positions with large non-railway companies. (HKX) with the aim of operating passenger trains on the eponymous route. RDC is The stewards are responsible for checking the major shareholder (75%), and has invested €16 million in the project, but joined or selling tickets, then ensuring that the Locomore Rail, a company set up in 2007 to run passenger trains in Germany (17.5%) passengers are comfortable – and supplied and Michael Schabas (7.5%). Schabas is a Canadian who came to London in 1988 and with refreshments if they wish. This is seen has since participated in several major rail projects. In 1995 he founded GB Railways and as a “nice way to be pleasant to customers” went on to win the Anglia Railways franchise (later absorbed), GB Railfreight (taken which it certainly is. Most passengers take over by First Group then sold to Eurotunnel) and Hull Trains (also taken over by First). advantage of refreshments as prices are Many details of Henry Posner’s experience in the USA taken from Fred W. Frailey’s article very reasonable, especially by standards on on Iowa Interstate in the June 2011 issue of US magazine Trains. board trains and planes in general. All soft drinks, such as Coca-Cola and mineral water

TODAY’S RAILWAYS EUROPE 205 23 (0.5 litre) cost €2.60 and hot drinks, such as busy, but the addition of the big cities in the seats in the DB IC were like concrete and the tea and coffee (0.25 litre) are €2.30 whilst Ruhr makes the route very lucrative. HKX coach produced a horrible rumble at higher sandwiches cost €2.60. A hot or cold drink trains can only operate at 160 km/h and it is speeds. In addition, the “conductor” seemed plus sandwich costs €4.50 and beer plus therefore a little delicate to slip them between to be a time-served jobsworth who checked sandwich €5.20. All of these are either moved existing DB services, as these mainly use tickets without a single smile during the along the train on a trolley, or served from 200 km/h stock. In order to get over this, and 4-hour journey. The “Herzlich Willkommen” the trolley in a requisitioned compartment. save about 20 minutes, HKX trains do not uttered after each stop sounded like it was There is no wireless internet on the current serve another potentially money-spinner – the read direct from the service manual. The best trains, and provision of electricity sockets is city of Bremen. The company has considered part of the DB InterCity experience was the patchy. HKX said it had had no time to do a halt at Sagehorn, but track work in progress BordRestaurant – a real restaurant car with this. The refurbished Class 4010 sets will be at present, and poor connections have led to a reasonably-priced plate of pasta and sauce equipped. this idea being shelved for now. plus side salad, all washed down with draught Ticketing is entirely carried out by internet beer. or on board. Current fares between Köln So far, so good and Hamburg range from €18 to €68 (DB’s HKX says that it is happy at the way the What next? standard walk-on second class fare is €83, service has operated so far. Timekeeping The priority for HKX at present is to obtain reductions possible with Bahncards), the has been good, there have been no major more stock in order to run the full planned cheapest fares, as usual, being available to problems and passenger numbers have been service, then to replace this stock with the early bookers. The highest fare is charged to buoyant. Passengers seem happy to have an former ÖBB 4010s once refurbished and anyone boarding without a ticket. HKX told alternative to DB – especially a cheaper one. approved. In the longer term, the company Today’s Railways Europe that very few people HKX was helped along by blanket media has no plans to expand on this route beyond – fewer than 5% – actually pay on board. When coverage. After a series of contretemps in the three train pairs a day – there is no intention we tested the website we found that fares of €33 past few years, DB is not the most popular to introduce a frequent service similar to that or €38 were available the day after booking, company in Germany and the press were run by DB, but to offer an alternative. This a Saturday, but that two of the Sunday return happy to flag up a competitor. level of service is similar to that offered by trains were completely booked up. We found It seems that a proportion of passengers “low-cost” airlines on their busiest routes, but it was necessary to book over a month forward are also of the “anything but DB” type, but HKX managers are quick to quash the idea to find tickets at the lowest price. there also some who like the old-fashioned, that the company is just a low cost operator. Interestingly, the company uses a commonly- but eminently comfortable, accommodation Although prices are certainly low at present, available yield-management programme to sell on the trains. On my 4-hour journey from they will rise to take account of the market, tickets, but has to intervene manually a great Köln to Hamburg, the average age of and the company stresses the importance deal at present because the system has little passengers was relatively low and I counted of service as well as price. Indeed, given the historic data on which to base its pricing. 164 on the theoretically unpromising 12.01 stock, they claim to be offering “first class Altogether, HKX is currently employing Köln–Hamburg on a late October Tuesday. comfort at second class prices”. about 40 staff – those in the headquarters in The 5-car train can carry 276 passengers, so In the longer term, HKX (using a different Köln are usually alone in their function, be a near 60% load factor. HKX said that a large name) may seek out a second route on which it operations management or marketing. proportion of passengers are new to rail and to operate in Germany. The company has would have driven or shared a car in the past. another potential trio of 6-car trains for this. Routing and frequency In order to judge the competition, I However, the company has no plans to obtain The company has chosen one of the busiest caught a DB InterCity train back to Köln 200 km/h traction and rolling stock which passenger routes in Germany in order to test from Hamburg. I actually prefer open stock would be expensive. This severely reduces its concept – Köln–Hamburg itself is very to compartments most of the time, but the the scope of potential routes. Thanks to Roland Beier for data on Class 4010 trains.

ES 64 U2-034 heads the NOB set of push-pull stock at Düsseldorf-Wehrhahn on 25 July 2012, again forming train HK X 24 1800. PatrickTODAY’S Böttger RAILWAYS EUROPE 205