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SOME HOPE for RAIL the Possibility of More Across-The-Aisle Cooperation Might Work in Rail’S Favor

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SOME HOPE for RAIL the Possibility of More Across-The-Aisle Cooperation Might Work in Rail’S Favor ProgressiveThe Information Leader for the Railroad Industry FEBRUARY 2013 In D.C., SOME HOPE FOR RAIL The possibility of more across-the-aisle cooperation might work in rail’s favor ASLRRA AT 100 A BIG CONTRIBUTOR TO SMALL-ROAD ADVANCES PRODUCT UPDATE SPECIAL OUR 13TH ANNUAL TRACKWORK FINANCE & LEASING GUIDE WEB EXCLUSIVE Carload Express creates Ohio short line to tap Marcellus and Utica shale plays www.progressiverailroading.com/cover www.ProgressiveRailroading.com C1_PR_0213_cover.indd C1 1/30/13 12:57 PM INVEST NOW OR PAY LATER TATE D RS IE E S T E N L I E M T C K O C T A IP T ® ULTRAS ECOTIP® Superstaca k ECOTIP® Ultrasstactack OTIP® injecectororss for used in multiple found in EMD 645 EMD Certified Tier 0+ TATE D TATE D RS IE Tier 0 engines RS IE and Marine 1042 applications E S E S T E T E N L N L I I Emission Kits E E C L C 0 O IA O 00 TI EC TIP® 2 P® SP ECOTIP® Superstack ECOTITIP® Special found in EMD 710 customized to fit Tier 0 engines your application (800) 321-4234 | www.interstate-mcbee.com/emdecotip.cfm 2010 Interstate-McBee, LLC ® FREE INFO: Circle 108 ECOTIP is a registered trademark of Interstate Diesel. C2_PR_0213_lr InterstateDiesel.indd C2 1/24/13 10:44 AM PROGRESSIVE RAILROADING Volume 56, No. 2 February 2013 | CONTENTS | 1 COVER STORY • PAGE 14 InIn D.C.,D.C., SOME HOPE FOR RAIL TheThe popossibilityssibility off moremore across-the-aisleacross-tthe-aaisle cooperation might work in rail’s favor FEATURES 19 Change agent for the small-road crowd For the past 100 years, the short-line association has helped hundreds of small U.S. railroads adapt to changing business and regulatory conditions Cover design by Mark E. Uy 28 The ‘work’ in trackwork From insulated joints to turnouts, special trackwork needs to hold up under heavier workloads, suppliers say DEPARTMENTS 4 Upfront 13 Guest Comment 53 Reader Information Center PROGRESSIVE RAILROADING Februaryruary 20132013 | SPECIAL SECTION | 37 3 SPECIAL SECTION 0 201 54 Professional Services Directory 37 13TH ANNUAL FINANCE CO. RAILWAY BNSF & LEASING GUIDE 55 Classified Still half full, this glass is ast year at this time, rail asset owners and lenders felt Lgood about 2012’s prospects. Their assessment turned out to be spot-on accurate: By many accounts, 2012 was a A comprehensive directory of pretty good year for the rail finance and leasing sector. This year? Demand for tank cars is still high, but demand for other car types isn’t. Asset owners are worried about asset values, lessors about lease rates, planners about their plan- ning models (market dynamics are changing) and finance PAGE 39 56 From the Editor Finance & Lea finance-related resources, including folks about the interest rate and credit environment. As for the The oil boom will sustain the economysing — economy? Cautious optimism still rules. Nevertheless, if what and the rail-car leasing segment — in 2013 we’re hearing is any indication, this crowd’s 2013 outlook is By Toby Kolstad glummer than its 2012 assessment — but only slightly. For a PAGE 40 sampling of their sentiments, read “Rail finance and leasing Capital Ideas A directory of firms that offer an array of banks, lessors, finance companies outlook” at www.progressiverailroading.com/PR. financial services to the rail industry — Pat Foran, Editor Progressive and professional service providers gregeg essivevvee “Now is the time to talk about the policies that are needed for rail transportation across this country.” — Joseph Boardman President and CEO, Amtrak -p.17 PROGRESSIVE RAILROADING (ISSN 0033-0817) (Publications Agreement No. 40031401) is published mailed outside the U.S., $140.00 (U.S. dollars) per year, $245 (U.S. dollars) for two years. Add $150.00 (U.S. every month by Trade Press Media Group, Inc. Editorial and business offices are at 2100 W. Florist Ave., dollars) per year for USPS Priority Mail delivery. Periodicals postage paid at Milwaukee, Wisconsin and Milwaukee, WI 53209. (414) 228-7701. Subscriptions: PROGRESSIVE RAILROADING is sent without obli- additional mailing offices. The publishers do not assume responsibility for the validity of the claims made gation to railroad presidents, vice-presidents, and qualified personnel in railroad management and super- for products described. vision in the executive, administrative, operating, mechanical, engineering, purchases POSTMASTER: Please send address changes to Progressive Railroading, P.O. Box 1289, Skokie, IL 60076- and materials, electrical, signal and communications departments of the railroads. 8289. CANADIAN return address: Station A P.O. Box 54, Windsor, ON N9A 6J5; [email protected] Qualified subscriptions should be requested on railroad letterhead. Subscription price to All packages shipped via UPS, air express or common carrier, plus all general correspondence, others: $8.00 per single copy. $96.00 per year, $180.00 (U.S.) 2 years. For subscriptions should be addressed to: Progressive Railroading, 2100 W. Florist Ave. Milwaukee, WI 53209. 01_PR_0213 toc-main.indd 01 1/31/13 11:16 AM PROGRESSIVE RAILROADING 2 | ONLINE | February 2013 Sign up for our RSS feed progressiverailroading.com/ Progressive rss/prnews.asp Follow us on Twitter Recently posted “online only” articles: twitter.com/rail_pro_mag Working on a workforce development strategy The Santa Clara Valley Transportation Authority (VTA) is in the midst of a succession plan Find us on Facebook pilot program that will help create a pipeline of facebook.com/ internal talent, VTA execs believe. ProgressiveRailroading www.progressiverailroading.com/PR Join the Progressive Railroading More carloads for Carload Express Magazine LinkedIn group Burgeoning natural gas drilling operations in the progressiverailroading.com/ Northeast prompted short-line owner Carload Express linkedin Inc. last year to seek a railroad that could access gas producers in the Marcellus and Utica shales. The search ended in late 2012. Carload Express, through CARLOAD EXPRESS INC. an agreement with Hannibal Real Estate L.L.C., Check us out on Google+ became the operator of a 12.2-mile former Omal Railway line in Ohio and progressiverailroading.com/ established the Ohio Terminal Railway Co. — its fourth short line — to google+ provide the freight-rail service. www.progressiverailroading.com/PR Join the discussion, ask Rail finance and leasing outlook What are questions and network the key issues facing the rail finance/leasing sector with your colleagues at in 2013? What’s been the biggest change within this our social networking site, industry sector during the past 10 years myprogressiverailroading.com and what might the next big change be? Industry executives offer insights and predictions. myProgressive www.progressiverailroading.com/ PR RailTrends® — The premier Progressive Railroading’s Daily News conference for rail professionals The most-read Daily News stories last month: www.railtrends.com ■ “Senate confirms two Amtrak board members” (1/3/13) ■ “Caltrans to unveil draft rail plan that incorporates California’s high-speed project” (1/25/13) ■ “Texas-New Mexico Railroad operates first crude oil unit train” (1/28/13) www.progressiverailroading.com/news LOGGING IN Angela Cotey associate editor Jeff Stagl Julie Sneider managing editor assistant editor peculation is under way about who he crude-oil boom in North Dakota BC News reporter Luke Russert’s Smight take Ray LaHood’s place Tand Texas has “created a unique NTwitter “tweet” on Jan. 21, as transportation secretary. Among opportunity for railroad consolida- Inauguration Day: “Washingtonians the names being bandied about: L.A. tion,” such as a BNSF Railway Co. and rag on @wmata, but I thought Metro Mayor Antonio Villaraigosa and NTSB CSX Corp. merger, wrote columnist was great today for the #Inaugura- Chairman Deborah Hersman, accord- Dana Blankenhorn on Seeking Alpha’s tion — tons of helpful workers & kept ing to a WashingtonPost.com blog. website. www.seekingalpha.com lines moving.” 02_PR_0213–toc-online.indd 02 1/31/13 2:14 PM Building Expectations New Construction RehabilitationInspection, Signals & Crossings MOW Services Bridges Maintenance & Emergency Response Building great track is no one-man show. It’s a team sport where players bring their unique abilities to the jobsite and together create solid, long-lasting track. The RailWorks team is made up of all-stars who perform tasks large and small with great skill and precision. With this team you get your job done right the first time and build trust with every mile. Expect more with RailWorks at work. www.railworks.com 866.905.7245 North America’s leader in Track and Transit & Systems construction and maintenance services FREE INFO: Circle 100 03_PR_0213 RAILWORKS.indd 03 1/25/13 8:23 AM PROGRESSIVE RAILROADING 4 | February 2013 Upfront [ HIGH-SPEED RAIL ] In joint pursuit of fast trains By Angela Cotey, Associate Editor When it comes to advancing At a Jan. 17 press telecon- speed rail industry in the out the world. true high-speed rail projects ference, Amtrak President and United States,” Morales said. “We’re not looking to invent in the United States — Chief Executive Officer Joe By developing a standardized things as we go along,” said trains that operate at top Boardman, CHSRA CEO Jeff train design and combining Morales. “This process is not to speeds of at least 150 mph, Morales and Federal Railroad Amtrak’s and CHSRA’s eventual create new technologies, but to according to the Federal Administrator Joseph Szabo laid train orders, high-speed train take advantage of the best tech- Railroad Administration out a plan to seek a standard- manufacturers would be more nologies that are out there.” — Amtrak’s Northeast ized design for a train that likely to build factories in the The parties also are hoping Corridor and the California could operate at speeds up to United States, creating a ripple to get a feel for how far they High Speed Rail Authority’s 220 mph in both the Northeast effect throughout the domestic can push the standardization (CHSRA) proposed statewide and California.
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