THE CLIPPER ISSUE ONE 2019

www.panamrailways.com The President’s Message

With fall upon us and year end in sight, now is a good time to reflect upon the many accomplishments of the past year and to plan for the future. Therefore, the articles in this edition of the Clipper have been chosen to highlight the ways that Pan Am is constantly evolving in a rapidly changing industry.

As always, investment in people, safety and infrastructure remain priorities, and this year we have undertaken several projects to improve the railroad in each of these areas. In particular, Pan Am made a concerted effort to complete publicly funded projects in that had been underway for a while. As detailed in the article, multiple projects were concluded that will significantly improve both operational efficiency and safety. In addi- tion, with the close out of these projects Pan Am is now prepared to undertake the work necessary to implement a $35 million federal grant that was awarded last spring for the rehabilitation of the main line between Royal Junction and Waterville. Completion of this work will be the capstone on a project begun in 2009 to upgrade the railroad from west to east and will position Pan Am to be competitive with other transportation modes for years to come.

As with regulatory changes that allowed Pan Am to grow its share of the propane market, recent decisions by Massachusetts have created an opportunity to further diversify our traffic base. Specifically, Massachusetts has significantly reduced its landfill capacity, leading waste handlers to seek alternative disposal sites in the Midwest and South. Given the increased distances that the waste must be transported, several waste handlers have sought to utilize Pan Am as their transportation option. The first transload facility opened in

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2 Holyoke last spring and we expect that this commodity will be a long-term growth opportu- nity as more shippers realize the benefits of a rail option.

I am also proud that Pan Am was able to host two comprehensive safety training sessions this year in Mechanicville and Portsmouth. Through partnerships with Class I carriers Norfolk Southern and CSX, these events provided valuable information to first responders while also supporting improved relationships between the responders and Pan Am personnel. We also continued our work with our connecting carriers to improve operations, and the opening of the Ayer interchange is an example of how rail carriers are constantly seeking ways to become more efficient. Also detailed in this edition is how technology is improving the flow of information to allow Pan Am to adapt more quickly to changing conditions.

I hope to see you as I travel over the system, and that the coming holidays are enjoyable for you and your family.

Sincerely,

David A. Fink

PAN AM ON THE INTERNET CREDITS

The Pan Am Railways website (www.panamrailways.com) offers Front Cover Photo: By Justin Winiarz car location information either through the car movement system (STARR) or the AEI database. [email protected] Printed by Flagship Press is another option to access car location information, etc.

3 Improving Operational Efficiency

Improving Operational Efficiency Written by the Transportation Department

Railroads face many challenges that lead to service disruptions and congested rail networks. Operating a railroad in certainly fits the criteria of a challenge. To overcome the challenges, Pan Am Railways has to continually adapt to handle changing seasons, elements, and markets. If the railroad fails to make adjustments, cars move slowly, deliveries are missed, and the supply chain fails. Over the past two years, Pan Am Railways has worked with class 1 interchange carriers to improve operational efficiencies to position the railroad and its customers for competitive advantage.

In November 2018, Pan Am Railways and CSXT developed a new operating plan for the inter- change of traffic. The new plan relocated the existing interchange point of Barber Station located in Worcester, MA to Ayer, MA. The plan provides more reliable service to customers by reducing transit, dwell and risk for network congestion. The new service plan established seven day per week interchange operations replacing the previous plan of five days per week. Reduced car dwell means faster turn times on cars for our customers, which means better asset utilization. For the railroad, we enjoy less congested yards, less costs in assets and idle cars, all while improving efficiency and meeting increased customer demand.

The establishment of the new interchange allowed Pan Am to reposition assets to other growth areas. Train and Engine Service employees have been positioned in the metropolitan area to service customers within that district. Pan Am is now able to provide crew switching five days per week in and out of Boston, positioning the railroad and customers well for future growth and market opportunities by rail. Recent new business opportunities for Pan Am include moving Municipal solid waste from Holyoke, MA and soon at Ayer, MA.

Pan Am has been able to better utilize its locomotive assets and position them into other potential growth areas throughout the network and store older assets in the fleet. Over the past few years, new locomotives have been purchased to phase out some of the older ones to establish a more reliable, cost-effective fleet. The new locomotives have higher horsepower, which benefits the railroad by using less locomotives to haul more freight. Overall, the fleet is more reliable and allows Pan Am Railways to provide consistent service to our customers.

Overall, the operational efficiencies with our class 1 interchange partners have been positive for our customers and our railroad. We have been able to improve on our transit and reliability to and from our gateways throughout New England. Our improved transit and less dwell have afforded the opportunity to reduce the volume of cars on the network and keep serving yards fluid.

Thank you for your business, we look forward to continued growth and aim to be your top service provider.

4 The Rail Solution

The Rail Solution to Massachusetts’ Looming Solid Waste Disposal Crisis Written by Tim Doherty

The ever growing and dynamic Massachusetts economy continues to promote the gener- ation of stuff despite aggressive and initially successful efforts to promote recycling. At the same time, traditional solid waste disposal options are constrained, which suggests a significant need to find alternative means and locations to address the waste challenges. Opportunities for non-hazardous waste disposal and the diversion of waste to recycling rather than disposal exist beyond Massachusetts borders. Rail transportation provides the means to move significant volumes of materials over long distances in the most cost efficient manner.

Non-hazardous waste typically includes Municipal Solid Waste (MSW) and Construc- tion and Demolition (C&D) debris that result from building construction, renovation, and removal. MSW includes the wide array of things that are thrown out including food scraps, yard waste, paper, paperboard products, plastics, metal, rubber, leather, textiles, wood, glass, and other miscellaneous materials. The path of disposal or waste stream for both MSW and C&D are similar even as they are often handled as separate commodities. Massachusetts and New England have long had a successful and robust market for the transportation of C&D by rail to disposal sites in the Midwest.

Rapid Decline of Instate Disposal Locations for Solid Waste Generally there are three places for the majority of Massachusetts waste to go: burned in Waste-to-Energy plants, recycled, or placed in landfills. Each of these destinations has significant challenges that impact the amount of capacity for the disposal of waste.

There are seven Waste-to-Energy facilities in Massachusetts with a permitted capacity of 3.5 million tons of waste. In 2016, these facilities handled 3 million tons, but because of the residual ash later landfilled, the net disposal is 2.5 million tons. Currently a morato- rium exists on the construction of new MSW to energy facilities because of the concern that new facilities could result in overbuilding waste disposal capacity. However, there is a limited lifting of the moratorium for new capacity for the gasification or pyrolysis of MSW that will be limited to an additional 350,000 tons per year. Massachusetts does not have a current moratorium on new landfill capacity. The expec- tation is that no new landfills will be constructed. Further, the existing landfill capacity is rapidly shrinking as existing facilities close. In 2016 there were ten MSW landfills in

5 The Rail Solution (cont.)

Massachusetts which have a current permitted annual capacity of 1.5 million tons. Of these ten landfills, four are expected to close by 2020 or have already closed, removing their nearly 900,000 tons of permitted capacity combined. A report for Massachusetts Department of Environmental Protection (MassDEP) estimates, “By 2027, 95% of the state’s current MSW landfill capacity will no longer be available (Massachusetts Materials Management Capacity Study 2/2019).”

Recycling is the third major means of disposing of Massachusetts solid waste. Eight Material Recovery Facilities (MRF) process 0.63 million tons of solid waste. These facil- ities process the single stream recycling containing paper, paper board, glass, plastic, and metal containers. MassDEP has reported that the MRFs have indicated an inability to process more materials at an incremental level than they are currently doing. Further access to recycling is constrained, as “…40% of [Massachusetts is] without access to recycling services” and effectiveness of recycling plateaus, suggesting that “that the next million tons of [waste] reduction will be tougher than the first and require a more concerted effort by us all” (masslive.com, 5/10/17).

Massachusetts’ solid waste future depends on out of state disposal options farther and farther away from New England. Massachusetts and the surrounding Northeast states are bounded by an international border and the Atlantic Ocean, leaving only one direc- tion in which to ship waste out of the state/region. MassDEP’s own recent capacity study recognized this by stating, “disposal capacity, while increasingly scarce in New England, is widely available in New York, Pennsylvania and Ohio.” The report further notes that “these states have multiple large, regional mega-landfills, some with rail sidings, which offer an outlet for Massachusetts wastes.”

The Rail Solution for Solid Waste Disposal Rail transportation provides the most efficient means and favorable economics to move large volumes of materials over distances of more than 400 miles. Rail transportation will provide the solution for Massachusetts’ disposal of waste. The movement of solid waste by rail reduces the amount of trucking required, providing further benefits through the reduction of emissions, congestion, roadway wear, and repair needs. Moving freight by rail offers a 75% reduction in greenhouse gas emissions over moving it by truck. Freight railroads on average move a ton of freight 470 miles with one gallon of fuel.

6 Pan Am Railways is a operating in Massachusetts and five other North- eastern states. Pan Am’s routes stretch from Mattawamkeag, ME to Rotterdam, NY and from White River Junction, VT to Derby, CT. Pan Am’s connections include all four eastern Class I systems (CN, CP, CSX, NS) as well as over 20 regional and short line railroads. Primary commodities that Pan Am moves today include grain, food products, lumber, paper and pulp, chemicals and plastics, petroleum, processed minerals, metals, scrap metal, finished automobiles and intermodal trailers and containers.

For nearly 200 years, Pan Am Railways has continuously innovated to meet the needs of the communities and customers that we serve. The railroad has successfully evolved by serving different industries and customers as the markets change. As the rail-served, coal- fired power plants closed in New England, Pan Am remained in the energy business by developing a large network of propane customers across its six state networks. The rail- road business is providing a solution to each customer’s transportation problem.

The movement of solid waste is an emerging transportation problem that Pan Am seeks to assist in solving. Currently, Pan Am moves the following waste and recycling products:

• Construction & Demolition debris moving from MA and CT to Ohio • Contaminated soil from MA, ME, NH to MI, NY, OH, and PQ • Scrap metals from New England to Midwest Mills • Inbound scrap tires being used for fuel in paper mills in Maine • Scrap paper inbound to Maine and Massachusetts paper mills

7 Emergency Response Training Emergency Response Training Article by Judy Page Article by Judy Page This past summer Pan Am Railways had the opportunity to host two separate Safety Training Trains during the month of ThisJuly. past summer Pan Am Railways had the opportunity to host two separate Safety Training Trains during the month of July. The first to arrive was the Norfolk Southern Safety Train, which was staged at the Intermodal facility in Mechanicville, TheNY. firstWe toconducted arrive was 6 trainingthe Norfolk sessions Southern over aSafety period Train, of 3 whichdays; receiv was stageding a great at the turnout Intermodal from facilitysurrounding in Mechanicville, Police and Fire NY.as well We as conducted our short 6line training partners. sessions over a period of 3 days; receiving a great turnout from surrounding Police and Fire Emergency as well as our short line partners. Emergency personnel were very enthusiastic to have the opportunity to learn the characteristics of a railcar, as well as Emergencythe car’s performance personnel were and capabilitiesvery enthusiastic under toextreme have the circumstances. opportunity to learn the characteristics of a railcar, as well as the car’s performance and capabilities under extreme circumstances. Response Training

Emergency Response Training Article by Judy Page

This past summer Pan Am Railways had the opportunity to host two separate Safety Training Trains during the month of July.

The first to arrive was the Norfolk Southern Safety Train, which was staged at the Intermodal facility in Mechanicville, NY. We conducted 6 training sessions over a period of 3

days; receiving a great turnout from surrounding Police and

Fire as well as our short line partners.

Emergency personnel were very enthusiastic to have the opportunity to learn the characteristics of a railcar, as well as the car’s performance and capabilities under extreme circumstances.

Next we moved on to Portsmouth Yard, Portsmouth, NH, where we hosted the Dow Transcaer Hazmat Training Train. This was the train’s first visit to Pan Am and we are grateful to the team that made it possible and hope for many more opportunities to promote the invaluable service it provides

to communities.

Those who participated were given a hands-on experi- ence in dealing with a chemical release in derailment and non-spill situation.

It was the goal of these programs to educate and empower those responsible for implementation of Emergency Response protocol. Both programs were very successful in achieving this objective, so much so that they have already been requested back by various communities.

Pan Am Railways would like to extend their gratitude, to all who aided in the coordination and support of these events. Without the contributing efforts of all involved, this could not have been possible.

8

Next we moved on to Portsmouth Yard, Portsmouth, NH, where we hosted the Dow Transcaer Hazmat Training Train. This was the train’s first visit to Pan Am and we are grateful to the team that made it possible and hope for many more opportunities to promote the invaluable service it provides to communities.

Those who participated were given a hands-on experience in dealing with a chemical release in derailment and non-spill situation. It was the goal of these programs to educate and empower those responsible for implementation of Emergency Response protocol. Both programs were very successful in achieving this objective, so much so that they have already been requested back by various communities. Pan Am Railways would like to extend their gratitude, to all who aided in the coordination and support of these events. Norfolk Southern – David Schoendorfer, Scott Gould, Robert Wood Without the contributing efforts of all involved, this could not have been possible. Norfolk Southern – David Schoendorfer, Scott Gould, Robert Wood Transcaer - John O’Neal - (Transportation Community Awareness and Emergency Response) Transcaer – John O’Neal (TransportationDow Chemical – Sam Simon Robert Djaffin - TRANSCAER NH State coordinator Community Awareness and EmergencyDana Transport – Kevin Parker Response) Crestwood – Jared Sharp Pipeline Awareness

Dow Chemical – Sam Simon For more information log onto: www.transcaer.com

Photos taken by Robert Djaffin – TRANSCAER NH TomState Winn Judy Page Coordinator David Nagy

Dana Transport – Kevin Parker

Crestwood – Jared Sharp

Pipeline Awareness

For more information log onto: www.transcaer.com

Photos taken by Tom Winn

Judy Page David Nagy

9

Engineering Projects in Maine

Engineering Projects in Maine Written by Ted Krug

Pan Am Railways, in partnership with Maine DOT, has been the beneficiary of several recent grants for railway infra- structure upgrades. Over the past year, and continuing through the end of 2019, we have worked to complete these im- portant projects.

Last fall, along with Wyman & Simpson, Pan Am forces completed a $467,000 MaineDOT IRAP project to replace the Martin Stream Bridge on the Hinckley Branch. The new bridge enables the SAPPI paper mill to connect to Pan Am’s 286k railcar network. In addition, Pan Am track and signal departments com- pleted a $1.2 Million MaineDOT project to replace the Forest Ave and Saunders Street grade crossings in Portland. Pan Am also worked with MaineDOT to raise the track elevation at the Main St cross- ing in Peru, ME by 2 feet to facilitate the reconstruction of a highway bridge across the Androscoggin River. This $1.2 Million proj- ect will be completed this fall by rebuilding the approaches to the crossing with new ties, rail, and surfacing.

In August 2019, Pan Am’s track and signal forces began working on reconstructing the Yard 8 wye and Cassidy Point Road crossing in Portland. These projects, totaling $1.4 Million, are the result of a federal FASTLANE grant that MaineDOT received. 1,000 ties will be replaced, along with two switches and 800 feet of rail. Signal improvements are being made at CPF 197 and CPF 196, and the new interior wye switch will be radio controlled with a DTMF system. This project will be completed by the end of September.

10 Two additional MaineDOT projects will be completed this fall as well. The Main Street crossing in Saco, which is also the deck of bridge #99.63 over the , will be replaced with new custom fabricated concrete tubs. This $754,000 project also includes upgrading the signal system with a DTMF controlled signal for the Saco passenger station. Pan Am was also awarded an IRAP project to rehabilitate the rip tracks in Rigby yard with 2,000 ties, 500 switch timbers, ballast & surfacing. This project is scheduled to be com- pleted later this fall.

Pan Am forces are also working to complete a $2.9 Million project for NNEPRA this year. This project adds a 4 mile long second main track between a new interlocking at CPF 189 and CPF 185 (Royal Junction). 80% of the new track has been constructed, and four new mainline switches have been installed, along with 5 new crossing panels. This fall the track construction will be completed, after which ballast will be spread, the rail will be adjusted and anchored, and the entire new track will receive a final surfacing. The signal department will work to cut over the new interlockings, automatic signals, and crossings as well.

All of this work has been progressing towards completion by the end of 2019 so that 2020 can be devoted to starting up construction on the recently awarded $35 Million CRISI project with MaineDOT. This project will upgrade 75 miles of the freight mainline between Royal Junction and Waterville over the course of several years. The main elements of the project include the installation of 5 trainloads of new continuous welded rail (CWR), replacement of 25 mainline switches, safety improvements made at 47 grade crossings (with 21 of them receiving new track panels & road surface as well), extending the New Gloucester siding 4,800 feet east and installing new interlockings at both ends, extending the signal system from Danville Junction to Leeds Junction, replacing three interlockings in Waterville with new modernized equipment, replacing 8 bridge decks, and replacing the wood planking at 42 farm/private crossings. These improvements will enhance the safety of the rail line and will improve the line’s reliability for many years to come.

These major grant projects, along with annual NNEPRA capital projects, Maine DOT Sec- tion 130 grade crossing improvement projects, and our own annual capital expenditures have enabled us to keep our infrastructure in good condition, and the future is looking positive as well.

11 Wood Island

Wood Island Article by John Steiniger

In April of this year Pan Am was contacted by Sam Reid, President of the Wood Island Life Saving Association, who was wondering if we might be able to help locate some vintage Rail material for a rehabilitation project of a Marine Railway out on an island in the Pisca- taqua River.

In 1908, the current Life Saving Station and a tool shed were built by Sugden Brothers of Portsmouth, N.H. for the US Life Saving Service. It’s a Duluth-style station designed by architect George R. Tolman and it replaced the original Jerry’s Point Station #12 across the harbor in New Castle, N.H. which had been requisitioned by the U.S. Navy. The U.S. Life Saving Service became part of the U.S. Coast Guard in 1915. Many lives had been lost over the years from ship wrecks on the rocky shore of Maine and and now a crew of men were in place to protect mariners.

The US Navy took over the Wood Island Life Saving Station early in World War II to help protect submarine manufacturing at the Portsmouth Naval Shipyard from German U-Boats patrolling the Atlantic Coast. In 1941 Wood Island was integrated into the coastal defense system. As a strategic observation post, the property was also utilized for securing anti-submarine nets, which were strung across the harbor to thwart German U-Boat infil- tration. At the end of the war, the property reverted back to the U.S. Coast Guard. In the early 1950’s U.S.C.G. moved to their present-day facility, across the harbor again, to New Castle, N.H. The Life Saving Station has been unused since that time.

This is also the only station to ever be placed on such a small island. Since the water behind the station was more protected than the ocean in front, the entire boat house and marine railway were oriented to the rear of the building. This is the only lifesaving station so configured. In fact, Wood Island Station is the only station of any design anywhere

12 in the US with a surviving marine railway. That “launchway” was used to send the rescue craft into the water to help with rescues.

WILSSA has located the original 1907 plans for that launchway and have permitted an exact rebuild of that element of the project. Pan Am is currently in the process of donating the rail and switch material necessary to rehab the marine railway. This has been a great challenge for us as you can imagine the Rail material used today is much larger to carry the heavier weights of the trains than those used in 1900 to launch wooded boats. When vessels ran aground or wrecked near the coastline, surfmen of the Life-Saving Service would sally forth in wooden rowboats to rescue those in peril – often at great risk to themselves. Their only armor was the bulky cork lifejacket that came to symbolize their mission.

If the sea was too rough for a boat rescue – and the wrecked vessel was close enough – surfmen employed a small cannon called the Lyle gun to shoot a projectile out to the site. A small line attached to the projectile enabled the surfmen to send out a heavier hawser line through a pulley system. These guns had a range of 600 yards. These surfmen were often fellows who had previously toiled as fishermen or lobstermen themselves, and were well versed in the ways of the sea. The motto of the Life-Saving Service, “You have to go out, but you don’t have to come back,” Following the 1915 merger, Wood Island – commonly known as Portsmouth Harbor Station – continued to be manned by the Coast Guard. From its completion in 1908 until the entered World War II in 1941, the station responded to more than 60 wrecks and saved hundreds of lives.

Records located by the Wood Island Life Saving Station Association – known locally as WILSSA – show that in 1936 alone, the station’s crew saved 91 lives and assisted 176 others aboard vessels in distress. (continued on page 15)

13

Wood Island (cont.)

After nearly 60 years of neglect, the Wood Island Life Saving Station is well on its way to restoration rather than demolition. A team of highly qualified contractors was selected through a public bidding process in the spring of 2016 and started the first phase of the project. Through that summer and fall they worked to clean the building of hazardous materials (asbestos, bird guano, lead paint) and repair the internal structure as well as much of the exterior. The building wasn’t completely restored in the summer / fall of 2016, but it was certainly “saved”. It remained sealed up and wrapped in Tyvek paper waiting for windows / doors and exterior shingles in the summer of 2017. And come spring of 2017, that work began. By that fall the exterior of the historic station (windows, doors, shingles, trim) was completed and the place looks fantastic.

For more information and updates on the progress of the project please visit their website at www.woodislandlifesaving.org

References: Wood Island Life Saving Station Association / D. Allan Kerr / [email protected] Photo Credits and Sources: Wood Island Life Saving Station Association / John Steiniger / U.S. Life-Saving Service Heritage Association

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