Reversing course from last week's declines, both U.S. freight carload traffic and U.S. intermodal volume gained ground during the week ending Feb. 22, 2014, measured against the comparable week in 2013, the Association of American Railroads said Thursday, Feb. 27.

U.S. freight carload traffic advanced a healthy 1.3% for the week compared with the same week a year ago. U.S. intermodal volume scored a 6.4% gain. Total combined U.S. weekly traffic rose a respectable 3.7%.

Six of the 10 carload commodity groups AAR tracks on a weekly basis posted increases compared with the same week in 2013, led by grain, up 29.7%. Declining commodities once again included coal, down 3.9%.

Canadian freight carload traffic suffered a different fate, down 9.8%. But Canadian intermodal volume advanced 3.5% compared with the same week in 2013. Mexican freight carload traffic fell 2%, while Mexican intermodal also retreated, down 1.4%.

Combined North American freight carload traffic for the first eight weeks of 2014 on 13 reporting U.S., Canadian, and Mexican railroads remained down 1.9% compared with the same point last year. Combined North American intermodal volume was in better shape, up 0.5% for the eight weeks over 2013.

Adding the infrastructure and expertise for such analysis is a cost to be borne by the shipper side of the crude-by-rail partnership. The order authorizes the continued use of DOT-111 cars for all types of crude while the FRA pursues its review of tank car standards.

For railroads themselves, the biggest impact of the emergency order is the mandatory handling of all crude oil as a “security sensitive” commodity.

Before the emergency order, crude oil classified as Packing Group III was exempt from the homeland security requirement that TSPs (transportation security plans) be in place for hazmat shipments that could attract terrorist attack.

That exemption was identified Jan. 23 by the National Transportation Safety Board as a benefit some transloaders derived, intentionally or not, by down-classing volatile crudes to low-risk Packing Group III. That advantage is now gone. All crude must be classified as Packing Group I or II, with all of the attendant obligations under homeland security law and regulation.

This may interrupt some, but not most, CBR movements. Railroads already have transportation security plans in place, if not for high-risk crude specifically, then for other explosive commodities such as ethanol. Those plans may well be extended with little modification to cover all crude oil shipments.

However, for oilfield-to-refinery routings not already covered by existing security plans, new plans must be developed and implemented before trains are allowed to roll, according to FRA spokesman Kevin Thompson.

“Crude oil may not be shipped unless there is a security plan in place,” Thompson told Railway Age.

However, Thompson noted that “most Bakken crude was already offered as Packing Group I or II and is consequently already covered by security plans.”

The regulations under homeland security legislation became effective at the start of 2009, so carriers have had time to comply for the initially specified hazardous materials, generally Class I and II explosives, as well as the two most volatile packing groups for Class III flammable liquids.

The FRA is confident, Thompson said, that compliant security plans are in place for most Class I and short line CBR routes. “We have current audits on 22 of the 27 short lines that carry crude oil or ethanol. We have recently audited CSX and Norfolk Southern, and have audits no older than two years for all other Class I carriers.”

There is no grace period to allow carriers to move oil trains while they develop the mandatory plans. Thompson said carriers should not expect any FRA tolerance arising from the preamble to the “final rule” published Nov. 26, 2008. That preamble states that the regulation is not meant to allow carriers to refuse hazmat shipments on the grounds that a plan has not been completed.

“We do not intend for the provisions of this rule to impede the everyday commerce of hazardous materials, or to change the common carrier obligation of the railroads to handle security-sensitive materials that shippers tender to them for shipment,” reads the 2008 final rule.

Thompson insisted that FRA’s “expectation” is that the shipment of crude without a fully implemented security plan will cease immediately.

The elements of a security plan are detailed in CFR Title 49, Part 172.802. (Italicized sub-heads are added by Railway Age for reference and clarity.)

Components of a security plan

(a) The security plan must include an assessment of transportation security risks for shipments of the hazardous materials listed in §172.800, including site-specific or location-specific risks associated with facilities at which the hazardous materials listed in §172.800 are prepared for transportation, stored, or unloaded incidental to movement, and appropriate measures to address the assessed risks. Specific measures put into place by the plan may vary commensurate with the level of threat at a particular time. At a minimum, a security plan must include the following elements:

Security Clearance of Rail Employees Handling or Having Access to Crude Oil

(1) Personnel security. Measures to confirm information provided by job applicants hired for positions that involve access to and handling of the hazardous materials covered by the security plan. Such confirmation systems must be consistent with applicable Federal and State laws and requirements concerning employment practices and individual privacy.

Guarding of Storage Tanks and Empty Tank Cars

(2) Unauthorized access. Measures to address the assessed risk that unauthorized persons may gain access to the hazardous materials covered by the security plan or transport conveyances being prepared for transportation of the hazardous materials covered by the security plan.

Anti-Terrorist Protection of Trains En Route

(3) En route security. Measures to address the assessed security risks of shipments of hazardous materials covered by the security plan en route from origin to destination, including shipments stored incidental to movement.

Senior Manager Responsible for Plan Development and Implementation

(b) The security plan must also include the following:

(1) Identification by job title of the senior management official responsible for overall development and implementation of the security plan.

Security Job Descriptions for Each Person Responsible for Plan Implementation

(2) Security duties for each position or department that is responsible for implementing the plan or a portion of the plan and the process of notifying employees when specific elements of the security plan must be implemented.

Compulsory Hazmat Training for Employees Handling or with Access to Crude Oil

(3) A plan for training hazmat employees in accordance with §172.704 (a)(4) and (a)(5) of this part. (Part 172.704 (a) . . .

(4) Security awareness training. Each hazmat employee must receive training that provides an awareness of security risks associated with hazardous materials transportation and methods designed to enhance transportation security. This training must also include a component covering how to recognize and respond to possible security threats. New hazmat employees must receive the security awareness training required by this paragraph within 90 days after employment.

(5) In-depth security training. Each hazmat employee of a person required to have a security plan in accordance with subpart I of this part who handles hazardous materials covered by the plan, performs a regulated function related to the hazardous materials covered by the plan, or is responsible for implementing the plan must be trained concerning the security plan and its implementation. Security training must include company security objectives, organizational security structure, specific security procedures, specific security duties and responsibilities for each employee, and specific actions to be taken by each employee in the event of a security breach.

Security Plan Must Be in Writing

(c) The security plan, including the transportation security risk assessment developed in accordance with paragraph (a) of this section, must be in writing and must be retained for as long as it remains in effect. The security plan must be reviewed at least annually and revised and/or updated as necessary to reflect changing circumstances. The most recent version of the security plan, or portions thereof, must be available to the employees who are responsible for implementing it, consistent with personnel security clearance or background investigation restrictions and a demonstrated need to know. When the security plan is updated or revised, all employees responsible for implementing it must be notified and all copies of the plan must be maintained as of the date of the most recent revision.

Requirement to Provide Security Plan to DOT or Homeland Security upon Request

(d) Each person required to develop and implement a security plan in accordance with this subpart must maintain a copy of the security plan (or an electronic file thereof) that is accessible at, or through, its principal place of business and must make the security plan available upon request, at a reasonable time and location, to an authorized official of the Department of Transportation or the Department of Homeland Security.

Ross Capon, the face of the National Association of Railroad Passengers (NARP) for 39 years on Capitol Hill, is stepping down from his role as president, and apparently will retire from the organization at year's end.

Dr. Larry Scott will serve as NARP acting president while the organization conducts a search for a permanent successor. Capon will serve as assistant to the president for the remainder of the calendar year.

In a statement Thursday, Feb. 27, 2014, NARP Chairman Bob Stewart said, "Ross Capon has served NARP with great distinction during his 39 year tenure. He was assistant director for the year 1975, then served 32 years as executive director and has been president & CEO for the last five years. During Ross's time at NARP, the Association's recognition and influence significantly increased."

Capon helped NARP become a major voice in advocating (most often defending) Amtrak from anti-rail partisans in Congress, while attempting to keep together diverse pro-rail voices, some of whom accuse Amtrak (and NARP) of favoring Amtrak's Northeast Corridor (NEC) at the expense of other nationwide services, particularly long-distance trains. Capon repeatedly and ardently denied such accusations over the years.

But Capon did work, often behind the scenes to improve Amtrak's relationship with Class I freight railroads, whose rights-of-way Amtrak uses for most of the nation's intercity passenger network. Capon helped cultivate communications between NARP and the Association of American Railroads and its CEO, Edward Hamberger, particularly as the Obama Administration showed more support for intercity passenger development and growth than its successors had.

Among other honors, Capon received Railway Age's 2007 W. Graham Claytor Jr. Award.

St. Louis-based RR Mergers & Acquisitions on Thursday, Feb. 27, 2014, said it has sold J&A Industries to B & B Roadway and Security Solutions.

Kansas City, Kan.-based J&A Industries is a manufacturer of signal equipment to major railroad industry leaders, including BNSF and Union Pacific. B & B Roadway and Security Solutions designs, manufactures, distributes, and services an extensive line of crash-rated vehicle barriers, traffic warning gates, and navigation light solutions. Industries include perimeter security, moveable bridge structures, HOV lane systems and railroad traffic control that meet critical government standards.

Carrollton, Tex.-based B&B has a manufacturing facility in Russellville, Ala. (photo above left), and a service center in Fairfax, Va. J&A Industries will continue all current operations at both of its Kansas City facilities, RR Mergers said.

Paul Matthews, B&B CEO, stated, "We welcome J&A and its employees to our family of companies. Jim Ferree and his team built a fine business, and we look forward to working to grow our opportunities together."

Cincinnati-area Republicans are touting the city's amenities—including its streetcar line now under construction—as incentives for holding the the 2016 Republican National Convention in their city.

Local media, along with local rail advocates, find the tacit endorsement of the streetcar's looming existence interesting, considering the staunch opposition to the project by some of the same officials over the years.

That opposition has not been limited to just Republicans. Cincinnati's current mayor, Democrat John Cranley, campaigned against the project and, when elected last November, moved to scuttle it.

But Republican opposition to the streetcar was widespread, and virulent, among regional and state-level GOP officials, including Ohio Gov. John Kasich.

"Isn't that funny?" Hamilton County Republican Chairman Alex Triantafilou told local media on Thursday, Feb. 27, 2014. "I'm happy to tell you this on the record. It's been interesting for several Republicans, myself included, to list that potentially as one of the reasons why they ought to come here." Triantafilou opposed the project's establishment.

"Look, we get the irony in that," he acknowledged. "The flip argument would be well for one week in ... a lifetime, maybe not worth it. But that's OK. This project's certainly going to go forward in our community, and now a lot of us who know it's going to happen want it to be successful."

Cincinnati is one of eight applicants seeking to host the convention. Test running of CAF USA streetcars is targeted for March 2016, and hopes are for the streetcar line to be operational for the national convention, traditionally held in late summer.

AMT, a government agency that reports to the Quebec Transport Minister, oversees public transport services in the Greater Montreal area.

AMT is acquiring CN’s entire 21-mile Deux-Montagnes Subdivision, which runs from St-Eustache to the entrance of Montreal’s Central Station, including the Mount Royal Tunnel. CN will retain freight operating rights over a portion of the line sold to AMT where freight customers are located.

Caltrain has released its draft environmental impact report for its planned electrification of right-of-way between San Francisco and San Jose, a distance of roughly 51 miles.

Targeting 2019 as the implementation year, Caltrain hopes to have overhead catenary in place for its own use and assisting the California High Speed Rail Authority (CHSRA) in the latter's plan for a 700-mile intrastate high speed rail (HSR) network. CHSRA operation would share the Caltrain right-of-way under the states' "blended" approach.

HSR aside, electrification would assist Caltrain system performance and clean air efforts, while also enticing additional ridership, according to the report, released Feb. 28, 2014. Caltrain currently plans to limit its services to 79 mph speeds, the current limit.

Cost of electrifying the 51-mile stretch is estimated at $1.2 billion, with rolling stock acquisition estimated to cost another $440 million.

Caltrain expects electric trainsets to provide 75% of its total service by 2019, with the remainder protected by diesel locomotive consists, serving points south of downtown San Jose.

The Greenbrier Cos., Inc. said Monday, March 3, 2014 it has received "new orders in the second fiscal quarter ended February 28, 2014 for 5,600 railcar units valued at approximately $460 million."

The orders include a recent award for 1,200 intermodal platforms, with other orders including "small cube covered hoppers and tank cars used in the energy sector, automotive-related products, medium and large cube covered hopper cars for the grain and plastic pellet markets, boxcars for paper and forest products markets, and gondola cars for metal and scrap," the company said.

"Current downward trends in railroad train velocity are expected to lead to stronger demand for certain railcar types in the future," Lake Oswego, Ore.-based Greenbrier Cos. added. Since Sept. 1, 2013, the beginning of the company's fiscal year 2014, Greenbrier has received orders for nearly 8,200 railcars in North America and Europe valued at more than $690 million, the company noted.

Chairman and CEO William A. Furman said, "Our business is benefitting from broad-based demand for all of our car types, including increased demand for intermodal platforms as intermodal loadings accelerate and rail velocity slows due to system congestion. An important aspect of the new tank car operating safety standards is the requirement for reduced railway speeds for most trains carrying crude oil. Slower train speed means velocity across the entire network will likely be affected. As velocity on the rails slows, we believe there will be an increase in demand for certain railcar types carried in unit trains, such as grain and intermodal."

Furman added, "As a result of the energy renaissance in the U.S., crude by rail shipments have climbed from 9,500 carloads in 2008 to more than 400,000 carloads in 2013. While 99.97% of these shipments arrive without incident, our common goal should be zero rail incidents. We are pleased that the AAR and DOT have taken steps to make rail transport safer for both our communities and environment with new operating standards.

"We recently announced our new tank car design which includes a thicker hull, high-flow pressure relief valves, head shields, top fittings protection, and thermal protection," the CEO continued. "These characteristics of our 'tank car of the future' align with the recent request for proposal issued by the BNSF Railway Company to build up to 5,000 tank cars with enhanced safety performance requirements. Additionally we are offering retrofit alternatives for the legacy tank car fleet, including the most recently built CPC-1232 tank cars, with features that will reduce the likelihood of tank cars releasing contents in derailments

While a Republican governor in Massachusetts was itself somewhat of a novelty, the depth and magnitude of a massive re-thinking of transportation investments by the state in the late 1960s and early 1970s was virtually without precedent. The Boston Transportation Planning Review (or “BTPR” as it became known), changed the entire way of thinking about transportation investments in Massachusetts, and changed the investment priorities to provide more choices for travel in the Boston region, including major investment proposals for commuter rail throughout eastern Massachusetts. The inclusion of commuter rail was a new element, and its inclusion in the comprehensive transportation plan was due in no small part to Ross Capon’s influence.

When I was Chief Railroad Services Officer at MBTA from 1977 to 1982, Ross had already gone off to Washington, and had gotten me appointed as a Director to the first Board of the National Association of Railroad Passengers (NARP), upon which I served for some 35 years. During virtually all of this time, Ross Capon headed the NARP organization, and ably represented the interests of rail passengers, primarily by presenting factual testimony before Congress, and in meetings with Amtrak. Some believe NARP was simply a “cheerleader for Amtrak,” but Ross could be very critical of Amtrak decisions when he thought Amtrak was making a bad decision, or neglecting a major component of its service. He did not shy away from pointing out these shortcomings to Amtrak, even during the terms of their strongest and most influential presidents.

Perhaps the most telling moment revealing Ross Capon’s knowledge and respect on Capitol Hill came at a NARP Board of Directors meeting in the late 1980s. The Vice President for Government Affairs of the United Transportation Union (UTU) came to speak to the NARP Board. During his remarks, he commented that Ross Capon, functioning on NARP’s “shoestring budget” from a collection of individual citizens, had achieved more credibility and effectiveness in Washington and with Congressional members that he had with his well-funded PAC and multi-million-dollar annual budget to represent UTU interests. This was an enormous tribute to Ross, coming from one of the largest rail labor organizations in Washington.

People in Washington know Ross Capon. They know that Ross knows what he is talking about when he speaks about passenger rail issues. They know that Ross has nothing personal to gain from being an advocate for the tens of millions of rail passengers across our country. NARP as an organization has been associated with the name Ross Capon, and NARP’s credibility has been established and enhanced by Ross’s tireless work and dedication to the cause of representing the interests of passenger rail, in all its various forms. For many in the industry, NARP is Ross Capon, and Ross Capon is NARP. This is an accomplishment few can achieve, at any price.

Whether challenging erroneous statements of a Congressional opponent of passenger rail, or responding to the many factually baseless “reports” of the usual cadre of conservative “think tank” representatives attacking passenger rail, Ross Capon has always conducted himself with propriety and respect, even when stating facts that refute some of the most outrageous statements made by these opponent organizations and the authors of their reports. The survival of a national passenger rail system for more than 40 years, in spite of some extreme political policies designed to destroy our country’s national passenger rail network, is testament to the success of Ross’s work.

NARP, and the nation, owe Ross Capon a debt of gratitude for the decades of work that he has given for the sole interests of the train-riding public. He and his family have done without many of the luxuries enjoyed by most people, and he has made this sacrifice freely, and given of himself without limitation.

Most in Washington would call NARP finances a “miniscule budget” (almost all from individual member contributions), yet Ross has managed to assemble a small dedicated and qualified staff to carry on NARP’s work. NARP does not have a PAC with millions of dollars to dole out to elected officials, as do most Washington advocacy organizations with financial gains to be had for the people/companies they advocate for. NARP’s only “special interest” is the passenger train riding public, representing the people who rarely have their voices heard or listened to in Washington. Ross Capon has been the most effective and selfless advocate and spokesman for these people, and for us all.

While many of us undertake our professions and employment for personal gain, Ross Capon is one of the few among us who lives modestly, and has made his career by speaking for, and being an advocate for, those people in our country who use and believe in a national passenger rail network, but who almost never can influence the policy makers who make decisions impacting passenger rail service. Ross has been their able advocate. No one could have done it better. Thank you, Ross Capon.

Gene Skoropowski is Senior Vice President Development at All Aboard Florida, and the former Managing Director of northern California’s Capitol Corridor Joint Powers Authority.

Ontario adjoining cities Mississauga and Brampton, just west of Toronto, have recently completed preliminary design and environmental assessment work for the Hurontario-Main Light Rail Transit Project, extending from Hurontario Street and Lakeshore Road, at Lake Ontario, northward to the City of Brampton, approximately 10 miles.

Both cities have finished the project's pre-consultation phase, and now have a design that will proceed through the provincial environmental assessment process. A 'Notice of Commencement' has been issued under the Transit Process Assessment Process that includes seeking public feedback studying potential impact of the project, and ways of dealing with it. An Environmental Project Report is due in June.

The project team is continuing to work on the LRT that will be submitted for project funding. Staff will report to both Mississauga and Brampton Councils, and the Metrolinx Board of Directors, once the Transit Project Assessment Process is completed. Metrolinx gave its official support for the 14.2-mile, C$1.6 billion LRT line in late 2012.

The LRT line would follow a north-south alignment along Hurontario Street, connecting with GO Transit regional rail services at both the south and north ends. In addition to connecting with Mississauga Transit bus services at major east-west streets, it would serve the Mississauga City Centre, and numerous high-density developments en route.

Mississauga is Canada's six largest city, with a population of 741,000, and is home to more than 54,000 businesses.

Metrolinx was created by the Ontario Government in 2006 as part of a strategy to deliver improved transit to the Greater Toronto and Hamilton Area.

Alcoa Fastening Systems (AFS) provides the Huck brand of fasteners for the worldwide rail market. AFS’ product line includes the C50L, BobTail and the new Huck 360. According to the company, its fasteners have been used in more than 3,000 frogs and hundreds of other track components and have been designed to provide uniform clamping power, vibration resistance and reduced flexing. All factors the company says leads to reduced maintenance and longer fatigue life.

The Huck 360 is AFS’ newest product and has been performing well on a heavy haul, Class 1 line. According to Rocco DiRago, product manager for the Americas, the challenge posed to the company was how to provide all the advantages of a traditional Huck product but have the ability to install that product with traditional rail tools. The answer says DiRago is with the Huck 360, which delivers five times the fatigue life of other fasteners, vibration resistance and can be installed and removed using traditional rail tools.

Amsted RPS has been in a growth period during the past year. The company expanded its design and research lab, added a Canadian sales manager, expanded its engineering and project management teams and celebrated the manufacture of the 850 millionth anchor.

Amsted RPS kicked off 2014 with the introduction of the Amsted RPS e-clip style, elastic fastener clip, manufactured in Atchison, Kansas for all types of track.

“e-clips have been one of the most popular elastic rail fasteners in North America,” said John Stout, vice president of sales and marketing. “And now we have taken the challenge of providing our customers with a high quality and cost effective domestic e-clip alternative with the excellent service you have come to expect from the Amsted RPS team.”

According to the company, the Amsted RPS e-clip is produced with an innovative low-stress manufacturing process that significantly improves performance and enhances the working range of the clip, offering improved fatigue limits for long life and reduced maintenance costs.

Also new to the Amsted RPS product line is the premium long-reach clip, the SL 6030, which was tested to withstand 100 percent greater overdrive load capacity without impacting toe load or clip geometry. The SL 6030 retrofits into Safelok-style shoulders and can be installed and removed with existing MOW equipment.

Last year, Amsted RPS and Switzerland-based Schwihag AG entered into a joint venture to produce “skl” style rail fastening systems; better known at Amsted RPS as the ME63 System. The system includes the ME1 clip, rail pad, abrasion plate, field guide plate, gauge guide plate, screw spike and dowel, all allowing the system to cover the entire width of the rail seat. In 2014, Amsted RPS will accommodate multiple rail base sizes and industrial applications.

The ME1 clip, manufactured in the Atchison, Kansas plant, is made with a special process to reduce stress on the clip during production resulting in high dynamic fatigue strength. The company says other benefits include lower maintenance costs, increased fatigue life and the ME1 clip’s middle bend prevents rail rollover and protects the clip against over-stressing.

Amsted RPS understands that as railroads have evolved, research has shown that a more resilient track structure results in less maintenance and longer life.

“To meet this need, we have built on this insight and provide a wide range of resilient products including rail clips, ballast mat, Under Tie Pads, and bonded fastening systems” said Wes Hodges, vice president of Amsted RPS.

In 2012, Amsted RPS partnered with Netherlands based company, edilon)(sedra, known for its products designed to minimize impacts and reduce noise and vibration. Amsted RPS says the partnership has been able to provide high performance, cost-effective products such as embedded block (EBS), embedded rail systems (ERS) and resilient Trackelast pads.

As mentioned, the company’s research and development lab went through an expansion in 2013. Its design, which has four distinct cells, allows multiple configurations for testing a variety of fasteners from heavy haul to mass transit, incorporating customer specific requirements, AREMA Chapter 30 recommendations, and international standards.

Amsted RPS says new product development is expedited by combining Finite Elemental Analysis with experimental validation. Material models can be modified to hit design specific stiffness and deflections with the first prototype as with the Amsted RPS End Restraint for Special Trackwork (ERT) and the Loadmaster Timber Tie.

“This allows us to provide innovative solutions to unique problems in a short period of time” said Chase Nielsen, engineering manager.

To expand on this idea, Amsted RPS is developing in-field measurement systems to capture rail deflections and vibrations. This field data can be imported into the control system to provide solutions for customer specific problems. Specific areas of interest are load distributions and fastening system component wear under non-ideal conditions caused from rail seat deterioration.

Copper State Bolt and Nut Co. believes in continuous improvement and notes many improvements begin with data received from the field and receiving feedback from those who use the company’s products, such as the Heavy Duty Frog Bolt.

The company says its goal is to identify long-standing problem areas and eliminate them where possible and create efficiencies to ultimately reduce the overall cost to its railroad partners.

One of the items it recently introduced to the market was the Qwikline Chase nut as an ancillary item to its Heavy Duty Frog bolt. The company says the Chase nut helps to save a thread damaged frog or diamond bolt by reclaiming the threads quickly and safely while using the same installation equipment and without bolt removal.

Copper State Bolt and Nut Co. continues to test processing and material combinations to achieve the longest lasting bolt in the industry regardless of weather conditions or application and recently partnered with a railroad to test a severe duty cold weather bolt, which the company says has had promising results in all tests to date.

According to Bill Treacy, general manager, Transit Products, L.B. Foster Co., 2013 proved to be a great year.

“We experienced record results for our Transit Products business last year as we supplied direct fixation fasteners (DFF) for a number of key projects throughout North America. 2014 is looking like it will also be a very active market for our products as new projects come forward. Many of the projects on which we work can take two to three years, or even more, to come to fruition. The Honolulu Area Rapid Transit (HART) project, which resulted in the largest award of business for L.B. Foster, is a great example of that. In addition, right now, we are seeing a balance of opportunities with North American transit agencies for either new construction or to upgrade existing infrastructure. There is lots of activity coast to coast. California is heating up, and we are starting to see the impact of funds made available from the Federal Transit Administration’s Emergency Relief Program for recovery and relief efforts in areas in the Northeast U.S. affected by Superstorm Sandy in late 2012. And, as mass transit ridership in general, and the use of heavy, commuter and light rail modes in particular, grow, more projects will continue to come forward. According to the latest data from the American Public Transportation Association (APTA), ridership on those three modes was up one percent on a year-to-date basis through the third quarter of 2013 and is on track to hit record ridership levels for the year. Transit agencies see increasing ridership and are investing to maintain their track and improve safety performance along with increasing service reliability and performance.”

Treacy continued, “From a new product development perspective, we work with the transit agencies to develop new and improved fastening technologies to help them achieve these goals. We continue to meet changing industry conditions, as well as develop engineering-based, rather than simply product-based, solutions.”

Per Korhan Ciloglu, R&D manager, Rail Products, “We have seen the benefits of offering bundled solutions to our customers and are moving more so in the direction of packaging our products and services. As one example of an expansion of our capabilities beyond traditional product ranges, this past year we introduced an offering consisting of our new line of FOSTERBOND™ epoxy adhesives, an insert and installation methodology in a bundle for repairing our customer’s anchoring systems. This expands our presence with the transit agencies into the maintenance side of the business. But we also continue to address specific customer issues with new technology developments, not only with our fastening systems, but also with other transit products such as our recently patented anti-tracking bracket, hybrid tie extension insulator and new formulations for our third rail tie extensions. We believe that these solutions will provide maintenance and operating benefits for our customers.”

“As we look to become a broader global player in the worldwide transit fastener market, we are collaborating with our UK-based team to transfer their technical and product knowledge from Europe for North American applications,” said Ciloglu. “We are also working closely with that team to develop technical solutions for use in the UK or other global applications. We are quite optimistic about the future use of our fastening products and solutions around the world.”

Treacy concluded, “As a company, L.B. Foster is bullish on the global transit industry. Based on favorable macro market trends and our continuing commitment of investment and resources in this key end use market, we believe that there will be significant opportunities for growth.”

Lewis Bolt & Nut Co. has been focusing on a new Sealtite hook bolt design for bridge decks that it says emphasizes simplicity, functionality and, most important, safety.

The company says the patent-pending Sealtite Quick-Set™ Hook Bolt System allows installation in minutes from on the deck itself instead of having to drill holes and lie on the creosoted deck or using a bucket over the side to attempt installation. Lewis Bolt says the system is designed so the installer can fully engage the flange by reaching down between the ties. A specially designed bracket is slid over the hook bolt and attached loosely with a flat washer and hex nut. While holding the bracket, the installer reaches down and attaches the hook bolt to the flange. The bracket then rests on ties on either side and is secured by tightening the nut. The bracket is further attached with 3/8-inch diameter nails or the Lewis Recessed Head (high strength) Timber Screws.

Lewis Bolt has also incorporated a built-in tie spacer set at a four-inch width, but other tie spacing amounts can be accommodated. The company says the new system can resist lateral and vertical movement with the aforementioned features and the hook bolts angled inward 15 degrees. The company notes that dapping, as well as holes drilled for traditional Hook Bolts are a potential for propagation of cracks, and ultimate premature failure of the costly bridge ties. With the Sealtite Quick-Set Hook Bolt System the company states that dapping needs are, at a minimum, reduced and holes are eliminated.

Pandrol USA says the demand for high performance elastic fastenings was very strong in 2013, a trend that is expected to continue into 2014 as North American railroads continue to improve their track systems and increase their capacity.

“Our engineering staff is continually working with engineering and maintenance-of-way personnel of railroads and transits to address their concerns and to explore the need for improved products,” said Frank Brady, Pandrol USA president. “We are also working with our suppliers to improve their logistics and materials. Some of the resulting product improvements are not obvious, such as modifying a plastic resin to increase insulator life, or changing the dimple pattern on a pad to reduce slippage.

“One of the more significant events that occurred in the past 12 months was the result of a collaborative effort by Pandrol USA, Arkansas Steel Associates and Southwest Steel Processing. In November 2013, new robotic tie plate production lines were inaugurated. The new lines are designed to manufacture Pandrol VICTOR tie plates for wood ties. The new robotic VICTOR tie plate production lines represent a major investment in both time and money by all three of the companies involved and will enable us to meet the growing demand for this product,” noted Brady.

The new production line more than doubles the capacity to supply VICTOR tie plates. Each of the two production lines is equipped with an induction furnace, a robot to take the heated base plate to a 1,000 ton press, and a robot to place the cast shoulders in place to be swaged into the base plate. Each line produces a finished VICTOR plate every 17 seconds. Once the shoulders are swaged in place, they have a pull out strength more than double those specified for shoulders in concrete ties.

Pandrol VICTOR plates are available in both 16-inch and 18-inch versions and enable the specification of both the type of shoulder and the hole punching type and pattern required. The tie plates can be supplied with a shoulder suitable for either Pandrol “e” or FASTCLIP fasteners or with a ROLLBLOCK. The tie plates can have holes punched for cut spikes, screw spikes or some combination of the two.

The company says its VICTOR system combines the durability and ductility of an AREMA tie plate with the benefits of resilient fastenings with the flat tie plate providing the maximum bearing area, while the use of Pandrol’s fastenings provides holding power, prevention of rail rollover and reduced maintenance. Pandrol USA also notes that testing at TTCI, with 39-ton axle loads, has shown a five-fold decrease in gauge widening when using resilient fastenings on wood ties.

Pandrol USA’s plastic injection molding plant is now in full production with eight high capacity injection molding machines and a ninth smaller machine for prototyping and short production runs. The plant is solely dedicated to the production of railroad tie pads and insulators that are used with Pandrol’s track fastening systems.

The company says it is able to more effectively meet customers’ requirements and control product quality by vertically integrating the production of tie pads and insulators, as well as rail clips for the various Pandrol fastening systems.

The company says controlling the process, from design through material specification, material purchase, and production ensures greater flexibility. And notes all injection molding machines are tightly computer controlled and monitored to insure accurate parts production, while the use of state-of-the-art robotics reduces material handling.

Pandrol USA says the capability to do its own design and prototyping, allows the company to assist its customers in developing new product variations and to test new resins and product designs to improve and enhance field performance.

Pandrol USA has also reduced the maximum weight per bag of its products in an effort to minimize the health and safety issues associated with manual lifting activities. The maximum weight per bag of resilient fastenings is 48 lbs., FASTCLIPs and ‘e’ Clips are now being packed 25 per bag and ‘PR’ Clips are being packed 15 per bag.

Pandrol USA says that while there are no specific standards in place for how much a person can lift or carry, the new packaging weight limits are based upon the National Institute of Occupational Health’s (NIOSH) mathematical model, which helps predict the risk of injury from repetitive strain. Pandrol USA’s new fastening packaging is below the acceptable weight, which nearly all healthy workers could lift over the course of an eight hour shift without increasing the risk of musculoskeletal disorders to the lower back.

Keith Ishaug, chief executive officer, Rail Forge LLC, says railroads derive significant benefits from the company’s GageLok fasteners, including extended system life and reduced maintenance-of-way expenditures. According to Rail Forge, the premise behind GageLok fasteners is simple: To hold longer and stronger than traditional spikes. Ishaug says the company works with railroads and maintenance contractors to find new areas to solve problems and add value with its products.

One of those areas has been in helping railroads meet sustainability goals.

“At CN, GageLok screws have demonstrated significant improvement in maintenance intervals, contributing to reduced waste and fuel consumption. We have collaborated on numerous projects with Axion International, where the combination of ECOTRAX composite ties and GageLok screws gives users a solution that significantly outlasts other alternatives in high decay applications, such as tunnels. When you look at these situations and you also consider the improved MOW work conditions, reduced costs and so on, Rail Forge can help our customers make a sustainability contribution not just in the ‘green’ sense, but in the broader sense involving community, employees and shareholders as well,” said Ishaug.

Ishaug says that at the most basic level, Rail Forge is enhancing durability for the railroads by providing an easy-to-install fastener that stays securely fastened.

“Rail Forge is continually working on product refinements. Ease of installation/removal and superior performance over time are the main benefits of our products, and we have numerous development initiatives under way which will allow us to expand our advantage in those areas,” he said.

While Ishaug notes GageLok fasteners’ ease of installation, when it comes to removal, the challenge is making it easy for the railroads but hard for thieves.

“In the past year, we have focused on features that impact ease - or difficulty - of removal. For example, theft of metal track components is a major problem in Latin America and other areas,” said Ishaug, “Rail Forge has worked closely with affected railroads to incorporate advanced security features in our fasteners to impede theft of critical track components.”

VOSSLOH FASTENING SYSTEMS says 2014 will see the completion of its state-of-the-art manufacturing facility in Waco, Tex. The facility is currently in partial production and should be in full production by this summer.

Ron Martin, vice president and general manager of Vossloh Fastening Systems, says the plant opening will provide jobs, reduce lead times, and allow the company to compete in the North American transit and high speed systems markets where it has extensive international experience.

“Our 300 series and DFF 300 UTS fastening systems for slab track, with significant noise/ vibration attenuating and electrically isolating qualities are gaining interest in the North American market. These systems already have a proven history, for both higher speed and conventional commuter systems, in other global markets,” said Martin.

He said Vossloh is constantly testing and validating its designs for durability and to see where the company can improve.

“Recently, we introduced a redesigned screw/dowel combination that will lead to easier installations in areas where debris could be an issue. Our new Heavy Haul System, the W40, was introduced to the market in October of 2013 and has some of the highest fatigue limits on the market, which in combination to some geometrical features will reduce rail deflection, tilting and rail creep,” said Martin. “With the redesigned rail pad, this system is providing a more stable rail seat reducing the potential for rail seat abrasion, a major concern of anyone using concrete ties.”

Martin says Vossloh Fastening has several other projects in the development stage including the creation of a corrosion resistant fastening system for special track applications.

William C. Vantuono, Editor-in-Chief

America’s railroads today are handling more business more efficiently and safely and for better profits than ever before in their nearly 200 years of existence. They remain a growth industry. The record $15 billion they invested in 2013 will no longer be a record in 2014, considering that two of the Class I’s alone will be spending close to $10 billion. Shippers, though they continue to try to drive down prices, are paying on an adjusted basis an average of 50% less than they were prior to the 1980 Staggers Act, which partially deregulated the railroads. Since Staggers, railroads have invested close to a half a trillion dollars—yes, that’s right, trillion—in private capital for expansion, improvements, and maintaining a state of good repair. Access to capital allows the railroads to utilize state-of-the-art technology from a healthy supply industry.

Railroads haven’t achieved all of this easily, and they will not retain it easily without the continued strong leadership of the seven Class I chief executives who have joined Railway Age in putting this special report together.

The rosy state of things that generally prevails in the industry is all too well known, and the railroads’ healthy stock performance strengthens the prevailing belief of many economists that railroads are recession-proof. As Warren Buffett is said to have replied when asked why he paid $43 billion for BNSF: Because the railroads can’t be moved to another country.

But don’t kid yourself.

America’s railroad industry still needs to be vigilant, because wherever there is success, there are always those who seek to beat it down, for reasons of self-interest. Add to that a rancorous, adversarial political atmosphere, and a Congress whose members have little or no knowledge of how close the industry came to collapse before President Jimmy Carter signed the Staggers Act—and what would happen if those regulatory freedoms were reversed.

What are some of the danger signs? Railway Age asked Association of American Railroads President and CEO Ed Hamberger to comment. The key issues are: truck size and weight—an issue that many thought was dead, but that crops up every time a multi-year surface transportation bill is up for reauthorization; and reregulation, specifically, mandatory competitive switching.

Mandatory competitive switching, an issue now before the Surface Transportation Board, threatens to drive up operating costs and undermine the industry’s ability to invest. The AAR has broadened its argument. “We’ve done a good job in expanding the discussion beyond what we would lose financially,” says Hamberger. “We’re able to show what would happen if 7.5 million annual switch moves become controlled by shippers. We’re looking at a greatly reduced ability to plan, mounting operational problems, increased labor and fuel costs, and crowded yards. We’re able to show that mandatory competitive switching would result in close to a dozen extra moves in many situations. But how do you show people the operational issues, and educate policy makers to the fact that railroading is not a retail industry?”

Few people, even many truckers (who have become some of the railroads’ best customers, through intermodal), want to see 97,000-pound behemoths and double- and triple-tandems rolling on the nation’s highways and bridges, tearing them up in the process and driving up highway repair costs by tens of billions of dollars. Railroads pay 100% of their infrastructure maintenance costs. Truckers pay less than 80%, a figure that plummets to 50% for 97,000-pound vehicles.

That’s one side of the argument. The other is the potential damage to railroad revenues. “Right now we’re taking a look at the rail-to-truck diversion issue,” says Hamberger. “Advocates of larger trucks say that there will be little or no diversion because the railroads will lower their rates to keep the business. We know that’s not the case, mainly because railroads are already pricing to where they can. We estimate a revenue loss of up to $6.5 billion. The DOT studied this issue in 2000; another DOT study is under way. This issue is far from being resolved.”

On top of all this, there is crude by rail, the safety of which is now “front and center,” says Hamberger: “CBR is occupying a large part of the industry’s safety focus. We’re emphasizing that there is a shared responsibility among all players—railroads, oil producers and refiners, tank car builders. We take our safety record—99.998% of hazmat shipments moved without incident—very seriously. Railroads are safe, and trying to become even safer. Overall, crude oil is a good-news story, from the standpoint of energy independence. Railroads have an important role to play, as do pipelines and barges. CBR is a good business, and we are making investments in it because we expect a good return.”

Then there’s PTC and its looming Dec. 31, 2015 implementation deadline. “Class I’s and passenger railroads are pushing hard to get it done,” says Hamberger. “One of the biggest obstacles is antenna installation, and all the permitting and environmental issues associated with it. We’re saying there should be a categorical exclusion, an exemption, for antenna poles we install on our own rights-of-way. The FCC is attempting to streamline the process, but so far it’s not very streamlined. It’s a process that could drag on and on.”

“That this industry has been able to step up and make the capital investments it requires is a great testament to what the Staggers Act has done, as well as to the executive leadership teams at the railroads,” says Hamberger. “We have a well-maintained system with an excellent safety record. 2013 looks to be our safest year ever. Day in and day out, it’s how we do things. Balanced regulation—which this industry has had for more than a generation—will ensure that we can continue to serve our customers, safely.”

Let’s not forget those 550-plus short lines and regionals, which are so vitally important to the local communities they serve, and which are diligently working to reauthorize the investment tax credit they got a few years ago. And then there’s Amtrak, the backbone of America’s passenger rail network, in need of major public investment so it can continue to grow.

Railway Age invited North America’s railroad leaders to comment on these and other pressing issues. You’ll find their perspectives in the commentary that follows.

Creating value for customers

Jack Koraleski, President and CEO, Union Pacific Corp.

The rail industry plays a vital role in America’s economy. Railroads thrive by creating value for their customers, and that’s exactly what we do at Union Pacific. Every component of our strategy enables us to create value for our customers—by improving safety, standardizing operations, investing in technology, capacity, and infrastructure, and operating efficiently. Every decision we make, every project we undertake, every dollar we spend is measured against the yardstick of customer value. We help our customers stay competitive, both domestically and globally, by providing efficient and reliable transportation solutions.

Many factors affect our more than 10,000 customers—global economies, energy supply and demand, and even weather conditions. These factors in turn can cause major shifts within our business sectors. We carefully prepare for these fluctuations so we can ensure Union Pacific provides the capacity and service our customers require.

The agricultural sector provides a good example of our resourcing capabilities. In 2012, we saw a drop in grain volume due to a drought. One year and a bumper crop later, we saw a huge jump in volumes and were able to respond quickly to meet our customers’ needs. In certain cases, such as grain export volumes, we saw an increase of more than 90% vs. the prior year. This helped offset some of the areas where business wasn’t as strong.

Union Pacific’s strategy for success begins with our customers: We create value for them by operating safely, providing first-rate service, and focusing on efficiency every day. This approach not only drives bottom-line results and improves our operating ratio, but it has helped us generate record shareholder returns. That’s how we’re able to reinvest and continue to grow our business.

This spring, we’ll open a new facility in Santa Teresa, N.M., which will bolster the fluidity of train movement in the region. Upon completion, Union Pacific will have invested more than $400 million in the project, and, for the first time ever, southern New Mexico will have a key inland port, positioning the Santa Teresa area as a strategic focal point for goods movement in the Southwestern U.S. This facility will create hundreds of good-paying American jobs and generate numerous opportunities for our customers. It will significantly improve capacity and efficiency, which demonstrates our long-term commitment to deliver excellent service to our customers.

Across our six business areas—Agricultural Products, Automotive, Chemicals, Coal, Industrial Products, and Intermodal—we’re continuing to develop business opportunities in Mexico, where our unparalleled ability to link Mexico’s economic growth with U.S. origins and destinations is a key strength of the Union Pacific network.

We recently introduced new intermodal service between Chicago and Monterrey, Mexico, giving our customers yet another way to transport goods across the border. Foreign direct investment in Mexico continues to present opportunities for Union Pacific, which is the only railroad with access to all six Mexican rail gateways.

New crops should provide plenty of growth for our Agricultural business, especially in the first half of the year. We anticipate an increase in both domestic and export grain markets.

Automotive manufacturers expect sales growth to continue. This looks to be good news for our finished vehicle and auto parts businesses.

Our Industrial Products business will likely benefit from shale-related activity due to increased drilling supporting growth in frac sand and pipe shipments. Housing starts are predicted to exceed one million units for the first time since 2007, which is expected to drive demand for lumber shipments. Increases in commercial construction are expected to support growth in rock, metals, and other highway-related markets.

As Union Pacific looks ahead to developing and supporting future business opportunities, our focus remains—as always—on creating value for our customers through safety, service, and efficiency.

Technology can improve worker proficiency

James A. Squires, President, Norfolk Southern Corp.

Norfolk Southern is deploying groundbreaking technology on its road locomotive fleet to dramatically reduce fuel use and installing a revolutionary dispatching system to help plot train routes across its entire rail network. This new technology will help us increase ontime performance and reduce operating costs.

However, technology alone is not enough to prepare us for the future. We’ve learned that a crucial part of successfully implementing new technology depends on how we communicate with our employees who are using the technology.

LEADER (Locomotive Engineer Assist/Display & Event Recorder), NS’s flagship fuel-saving system developed with New York Air Brake, calculates and displays the optimum speed at which to operate a train, depending on topography and curvature of the track, the train’s length and weight, and other operating conditions. It’s a great system with proven benefits—tens of millions of dollars—if used regularly.

Following LEADER’s cues, the engineer learns to back off the throttle before reaching the top of a hill, allowing the train’s momentum to carry it over the crest, so the engineer may not need to use the brake going down the hill because the train is moving at a slower speed.

But that’s not the engineer’s instinct. Instead, he wants to power up the hill and apply the brake to slow the train after it crests. However that burns more fuel and puts more wear and tear on the tracks, exactly what LEADER was designed to correct.

So how do you encourage employees to try use new technology? The answer may surprise you.

Todd Reynolds, general manager of our western operating region, recently shared the story of how we were able to dramatically increase LEADER use on our Georgia Division. A group of road foremen met with engineers to explain LEADER’s fuel-saving benefits. After these one-on-one conversations, whenever an engineer started using the system, the supervisor made a point to thank the engineer. LEADER usage doubled in a matter of days. No incentives, no discipline—we just focused on giving positive feedback for good train-handling performance.

We met the same hesitancy to use new technology when we deployed Movement Planner, a train scheduling tool we developed with GE that has the capability to look eight hours in advance across the network and sort through thousands of pieces of data, including hundreds of daily train schedules, to make the best decisions to improve the flow of trains across the network.

Some of Movement Planner’s recommendations were counterintuitive to a dispatcher’s experience. For example, in response to a train delay on another division, Movement Planner may recommend moving a high-priority intermodal train into a siding to optimize overall network efficiency. In addition, some train dispatchers felt like Movement Planner was usurping their roles, the core of which was expertise in getting trains over the road.

A key part of implementing Movement Planner was recognizing the dispatchers’ concerns and helping them to become more comfortable using the new system. We invited the dispatchers to share their local knowledge of their operating division with Movement Planner’s programmers, and once they mastered the new system, to help train dispatchers on other divisions.

When introducing any new technology, we must be willing to reassure our employees that the skills they learn will not be wasted—for example, that an engineer proficient in LEADER and a dispatcher adept at Movement Planner have bright futures with Norfolk Southern.

Safety is a Resounding success story, but more can be done

Michael J. Ward, Chairman, President, and CEO, CSX Corp.

Among the many achievements of U.S. railroads, none stands out more than the astonishing and sustained improvement in safety over the last 30 years. That evolution was the result of many factors, but mostly by the commitment of railroaders everywhere to safe work practices and attention to every detail.

Science and technology played a role, too, with innovations that include computer-based train monitoring systems and advanced railcar health detectors that provide early warnings of potential problems. Market forces also contributed to safety, with customer demands for increasingly reliable service and damage-free transit, which also produced business growth and supported greater network investment. And society pressed for ever-higher safety standards.

The results speak volumes: The employee injury rate in 2012, the last year for which official data are available, was down 85% from 1980 and down 51% from 2000. The train accident rate was down 80% from 1980, and 44% from 2000. The grade-crossing collision rate was down 82% from 1980 and down 45% from 2000. Each of these categories achieved record lows in 2012, and preliminary 2013 data suggest the trend continues.

It’s an accomplishment shared by all, but every injury and every accident reminds us that more must be done to ensure that all of our employees go home safely to their families every day, and that every train moves without incident. Following are the factors that helped CSX:

• Values: We made safety one of our five Core Values—Safety is a Way of Life—which acknowledges the highest priority placed on injury and accident prevention.

• People: In addition to shaping a framework through our value system, we engaged the real experts—our fellow employees. In that regard, I trace some of CSX’s biggest gains in employee safety to the introduction of the safety overlap process. Employees at the local level identified safety concerns. If the resources needed to address them were unavailable, the safety issue would be elevated, ultimately to the Chief Operating Officer.

We also invested in employee training, as well as building a culture that prized adherence to rules as the cornerstone of safety. A united front with our unions was important to all of these advances, highlighted by initiatives such as the Switching Operations Fatality Analysis that identified ways to work more safely in busy switching yards.

• Investment: Substantial and sustained investments in our network hardened our infrastructure and reduced track- and equipment-caused derailments. We deployed additional machine vision technology to monitor equipment health. We also consolidated instruction for train crews and other front-line employees at our Railroad Education and Development Institute in Atlanta.

Of course, train accident prevention is critical to the safe, reliable transportation of hazardous materials. Railroads have a strong record for safely moving these products, and 100% incident free remains our goal. CSX has a team of hazardous materials experts to help customers with loading and unloading procedures. We also train hundreds of first responders every year so that they are better equipped to deal with railroad incidents.

• Public Awareness and Partnerships: Partnerships also are important to reducing grade crossing collisions. An industry wide focus on education and awareness, engineering solutions such as upgrading warning devices, and enforcement of traffic safety laws, all have contributed to a trend of fewer collisions. We partner with Operation Lifesaver to supplement our own company initiatives. CSX has worked with local officials to close unnecessary crossings, and improved motorist sight lines. We also conduct a highly visible Play it Safe campaign.

While crossings have been a success story, injury and loss of life to people illegally on our property regrettably remains a stubborn problem. CSX is further intensifying safety awareness, law enforcement partnerships, and other measures to keep pedestrians off tracks.

What does the future hold? Railroads are working on Positive Train Control (PTC), spending billions to develop technology from scratch. An extension to the 2015 deadline is necessary to ensure that the technology is properly developed. Once complete, PTC will undoubtedly add another layer of safety to an already safe industry.

While the rail safety story is a resounding success, that accomplishment is tempered by the terrible tragedy last summer in Canada, and the public’s growing concern over the transportation of oil by rail. The railroads, along with oil shippers, tank car owners, and federal officials, all are working together to find the most effective solutions and to maintain the public’s confidence in U.S. railroad safety.

America’s railroads are the global benchmark in freight transportation, and safety is a big reason. It’s also evidence of our commitment to employees, our customers, and the communities we serve.

Rail industry growth is driving record capital investment

Carl Ice, President and CEO, BNSF Railway

Rail volumes in North America in 2013 were the highest since the Great Recession at nearly 43 million units, a good indication of the degree to which the economy has continued to recover. Freight railroads continued to make some of the most significant capital investments on record in 2013, just as they did during the Great Recession.

Freight railroads are investing massive amounts of private capital to improve the safety and reliability of our privately funded rail networks, and to expand capacity to accommodate the customer growth occurring on those networks. It is important for all members of the rail industry to continue to help shippers, public policy makers, and the communities we serve understand what a valuable and sustainable asset our privately networks have become to both the national economy and to the individual shipper and consumer.

That story always begins with safety and service. Railroads are a safer place to work than any other transportation mode by creating a safety culture of commitment and compliance in cooperation with our employees to identify and reduce safety risks in the first place. BNSF’s employees share our safety vision of an injury and accident-free workplace. We have supported that safety culture by continually investing in new technologies that help make our railroads even safer and more efficient by identifying potential safety issues before they can cause an accident or injury.

We have also significantly improved railroad service over the long term by investing in track infrastructure, equipment, and technologies that have helped make our physical assets more reliable and productive. Those safety and service improvements have helped attract significant volumes of traffic back to the rail industry, which have helped improve our returns on investment and generated additional free cash flow to reinvest in the growth those improvements have been generating.

That is the kind of sustainable long-term business model most companies and industries want to achieve.

That model enabled railroads to help U.S. agricultural producers develop the world’s most extensive network of grain unit train facilities to become even more competitive shippers and exporters.

It enabled the rail industry to attract millions of truckloads of consumer goods once lost to highways back to railroads in the form of intermodal traffic. Intermodal not only became a growth engine for most Class I railroads, it enabled many of the nation’s best trucking companies, steamship lines, and logistics companies to become some of our best customers.

It enabled the rail industry to help develop one of the most important new fuel sources for electric power in the U.S. in a half century in the Powder River Basin.

And now it is helping the U.S. economy achieve energy independence by enabling North America to develop its huge oil and gas shale reserves, which promise to attract more job-creating industrial production and manufacturing back to our economy. Rail is helping U.S. manufacturers and producers of products ranging from automobiles and aircraft, to farm and construction machinery, to lumber and steel, to fresh and frozen produce, to fertilizer producers and wind turbine manufacturers, expand production, and create jobs.

For BNSF, our 2014 $5 billion capital plan exceeds the single-year investment record we set in 2013 by $1 billion. More than $900 million will be invested in expansion and maintenance in our Northern Corridor alone, which has become a significant growth corridor for many of the industries we serve.

Our capital investments are one of the strongest indicators that we are focused on improving our ability to meet our customers’ service expectations, increasing our capacity where there is growth, and strengthening our railroad so that it remains the safest and most effective means of ground transportation for our customers, our people, and the communities where we operate.

Operating a 21st century railroad

E. Hunter Harrison, President and CEO, Canadian Pacific Railway

There’s no secret to running a successful railroad. The first thing to do is to get the very best people you can working for you, and tell them very clearly what it is you expect from them. Then, you let them do their job. That’s all there is.

Naturally, this explanation is a broad brushstroke, but the reality is pretty close to what I’ve just said. If you talk to your people, get them working with passion, and give them clarity on direction and expectation, then they will perform for you every time. You’ll find they will surprise you with what they can do.

If you accept this philosophy as your starting point, you’ll find it has direct application to many other areas. Communication with all your stakeholders—investors, communities, regulatory—should be just the same. Open, honest, and frequent. The most important element is to explain to people what you’re doing and why. And the other thing is: Just do what you said you would do.

It means delivering on our promises. Here’s an example of what I mean. Since becoming CEO of Canadian Pacific, the most fundamental change that I and my team instituted was to set a schedule and stick to it. It sounds basic, doesn’t it? You’re right: It is, but often, railroaders make excuses for failing to maintain a schedule rather than just doing it. Consider this: If we can’t tell our customers when we’ll deliver, and commit to it, how can we possibly expect them to entrust us with their shipments?

Railroads are operating companies. Watch your costs and your assets. You’ve surrounded yourself with good people. You’ve made commitments to your customers, and you’re delivering. Your credibility is good, and your people are working toward a common cause. What’s next? Your costs and your assets are next. Control your costs and watch your assets. It’s just smart business and it teaches you discipline. At CP, all it took was for us to drill down to the details and start asking, “Why are we doing it that way?” And, “Is there a better way?” I’ll be honest, the process itself wasn’t always easy, but the results have been worth it. “Why” is both a challenging and liberating question. It allowed us to look at ourselves honestly and make the operating changes we needed to become better.

It goes without saying that none of this is possible without running a safe operation. Safety is good business. Safety is the right thing to do. Period. That should be enough incentive by itself. But beyond that, it should be clear to us all that the industry’s license to operate depends on operating safely, and proving to the public that we do so. Teach people the right way to do something, and expect nothing less than total compliance. It’s not worth the risk, otherwise.

Since I started railroading, I’ve been fortunate to have participated in changes that have turned the rail industry into a safe, profitable business and a great place to work. To those of you joining our industry now and seeking to become leaders, you’re coming into a great industry at a great time—and you’ll be responsible for instituting the next round of changes. Our industry’s success depends on your ability to keep adapting. If you can welcome these challenges, and keep asking “why,” you’re heading in the right direction. We’re counting on you.

Our role as a backbone of the economy

Claude Mongeau, President and CEO, Canadian National Railway Company

CN’s agenda of Operational and Service Excellence is aimed at finding the best balance between high levels of operating efficiency and safety, and improved customer service.

CN record of growing its business at low incremental cost and generating solid financial results has reinforced its role as a true backbone of the economy and a key part of the solution in fostering the prosperity of the North American markets it serves, creating value for customers and shareholders alike. Of all the innovations that CN has initiated over the last four years, perhaps none has greater significance than our bold program of supply chain collaboration. We are an engine of supply chain capability that helps grow markets, and ultimately helps our customers succeed. We know that the next great step in expanding our role in the economy is to look at what we offer customers from an end-to-end perspective, with a view to improving efficiency with our supply chain partners for the entire process.

To achieve that, we’ve been going beyond hub-to-hub speed and reliability to focus on the first- and last-miles of our service, including better car order fulfillment and switch window compliance for merchandise traffic, better spotting reliability for grain, and daily engagement with all ports and intermodal terminal operators. This requires an intense focus on every detail of the receiving and origination part of our journey, with one outcome in mind: better end-to-end service for our customers so that we can help make them become more competitive in their markets.

Our agenda is anchored on running a safe railway—it’s the overarching imperative in everything we do. As a backbone of the economy we take our role very seriously when we’re entrusted to move dangerous goods. Our safety record is solid and has been improving continuously for a number of years. Our safety commitment is built on a culture that runs deep throughout our organization.

Nevertheless, in the tragic aftermath of the Lac-Mégantic accident, we believe the rail industry and other stakeholders must take further steps to advance the safe transportation of dangerous goods, which are key commodities in everyday life. For CN the central issue is managing the risk of low-probability, high-consequence incidents. In this context, it’s essential to keep in mind that a full 99.99% of CN and rail industry movements of dangerous goods arrive at destination without a release caused by an accident.

That being said, the first and foremost imperative for the rail industry and for tank car owners today is quickly solving the systemic risks posed by DOT-111 tank cars. CN is clear in its stand that old DOT-111 tank cars must be retrofitted or phased out, and that there be a reinforced standard for new tank cars built in the future.

Second, CN is committed to making its record of transporting 99.99% of dangerous goods without a release even better. While there are limited opportunities for CN to re-route dangerous goods away from urban areas, CN will do so when it can. And CN is also taking clear action to prevent and mitigate dangerous goods accidents through targeted corridor risk assessments that focus on enhancing train operating practices and flaw detection capability.

Third, when accidents do occur CN has in place comprehensive emergency response plans and resources, and will continue to work with other stakeholders on developing stronger emergency response capabilities through training support and mutual aid intervention protocols.

CN has an unwavering commitment to safety and always strives to responsibly deliver Operational and Service Excellence. CN’s broad safety record in 2013 continued to improve over that of 2012, which was the best year on record for main-track accidents. Since 2002, CN’s main-track accidents have declined by more than 50% despite rising freight volumes.

Five things for shippers considering intermodal

David L. Starling , President and CEO, Kansas City Southern

It’s no secret inside the railroad industry and investment community that the intermodal sector is growing rapidly. In reporting KCS’ 2013 year-end revenues, we told the market that the intermodal sector is up year over year and one of the fastest growing areas of our business. For KCS, the intermodal sector is providing significant, real potential for long-term growth driven by cross-border traffic; automotive plants, along with their respective Tier II suppliers, coming on line in Mexico; and a market share shift from truck to rail.

We know that KCS’ current franchise cross-border intermodal market share represents less than 3% of the available market. We also know that 3.1 million truckloads originate or terminate in KCS’ target market with 50% of loads moving to and from locations deep in Mexico.

Our ability to convert more traffic from truck to rail and secure more of the available intermodal business depends on two things: serving existing customers well, and educating potential customers (third parties and beneficial owners) about the advantages of moving their products via intermodal.

If I had only a short time to tell a potential customer why they should convert from truck to rail, I would focus on the following:

• Ease of crossing the border. KCS’ rail network has operations in both the U.S. and Mexico, allowing KCS to continuously improve transit time and equipment utilization and reduce terminal dwell.

• New service offerings with gateway partners. KCS is only one interchange away from any major market in North America. These interchange gateways extend our network reach and that of every major railroad. For example, CSX’s mega-facility in northwest Ohio is increasing traffic through KCS’ intermodal facility in Kansas City, Mo. Norfolk Southern’s Crescent Corridor is helping customers cut transit times, avoid congestion in Atlanta, Ga., and providing KCS customers (cross-border customers in particular) with access to the northeast U.S. Our gateway strategy to extend our network reach by partnering with connecting carriers and supply chain partners is an industry strength and we continue to provide customer solutions beyond markets we serve directly.

• Investing in the International Intermodal Corridor. KCS’ investments in intermodal facilities in the U.S. and Mexico is changing the landscape of the North American intermodal network, bringing service to areas like Houston, Tex., where it didn’t exist before. In 2014, KCS will continue work to expand intermodal facilities at Puerta Mexico (Toluca/Mexico City), Salinas Victoria (Monterrey), Interpuerto (San Luis Potosi), and Kendleton, Tex. (Houston). We will also begin construction on a new intermodal facility in Wylie, Tex., centralizing KCS’ Dallas-area facilities. KCS intermodal facilities are state-of-the-art and adding capacity for the expected intermodal growth.

• Changing regulatory environment for trucks. Driver shortages, more and stricter rules, and fewer hours on the road for truck drivers mean fewer available drivers and greater demand, which means shippers may need to be flexible with logistics planning.

• Intermodal is a green option. Moving freight from truck to rail takes trucks off our overcrowded highways. Railroads are a more fuel-efficient option with a 75% smaller carbon footprint vs. truck. Plus, changes in emissions regulations for tractors are driving down the fuel economy.

KCS proudly serves what is an ever-expanding intermodal frontier—Mexico. While larger U.S. railroads compete for east-west traffic with long-term deals and competitive rates, Mexico presents one of the last great opportunities for over-the-road conversion. As freight patterns shift, KCS is in place with the capacity to serve this burgeoning market.

The continuous commitment of short lines

Richard F. Timmons, President, American Short Line and Regional Railroad Association

In the beginning there were just short lines. But the ideas and dreams and visions of early local railroad entrepreneurs sprawled into small networks and gave to these early railroaders a sense of what might be possible.

It seized the imagination of those now legendary industrialists of the late 19th and early 20th centuries. They attempted big things, struggled with unheard of challenges, and saw the potential of railroads even as they strived to expand their crude networks and coped with the poor science of the day.

Yet these men and their ideas shaped America and American life every day and protruded into every dimension of a growing nation. Their thoughts and dreams spilled out in an endless parade. The Transcontinental Railroad and military logistics and operations during the Civil War opened the vast potential of the great plains, were the backbone of the Panama Canal, created domestic and foreign commercial markets for millions, exposed the abundance of our resources, put millions to work, and forcefully expanded their influence and networks across the continent.

These small early railroads focused hard on meeting some demand for consumers. Despite the rapid growth and unheard-of technical and scientific breakthroughs that were in evidence in the railroad industry, the economics of service and competition were the principles that made expansion and profits possible.

Today the freight railroad networks that have evolved throughout North America are the envy of the world. Nowhere are volumes of such diverse commodities moved with greater efficiency or reliability and safety than in the U.S. These are privately owned companies, large and small, knitted together to provide excellent service to the farms, factories, ports, terminals, mines, well sites, and cities and communities across the country. Short Line and regional railroads significantly increase the efficiency, productivity and competitiveness of freight movement. They are the beginning and end of the journey for many in this economy. Fifty thousand miles of short line right-of-way and 550 short lines and regional railroads are in service every day reinforcing the economy, working with Class I railroads, and concentrating on service to customers 24 hours a day.

This has all been made possible through a continuous commitment of short line railroads to improving and expanding facilities, upgrading infrastructure, and incorporating technology that allows enhanced communications with customers and Class I partners. Nearly 28% of the bottom line revenues of small railroads are invested annually in infrastructure and equipment laying the foundation for safe and productive transport of over 7.5 million carloads. This origination number covers all commodity groups in 2013 to 49 states as well as Canada and Mexico. The majority of this investment has been made by short line and regional railroads and reinforced by the Short Line tax credit: a federal program to strengthen and expand the rail network.

The “First Mile-Last Mile” of the any freight trip is demanding but it is where small railroads excel. Their flexibility, adaptability, and customer commitment are central to their record of successes. The clear evidence of this is the explosive growth of short lines in the past 30 years from 243 railroads to 550 today. The safety record is impressive and clearly has enhanced their high standing with more than 12,000 customers, as well as Class I railroads, through hundreds of thousands of interchanges each year. In the end, the strength of the short line railroad segment of the industry rests on its contributions toward expanding the reach of rail service, opening commercial opportunities, providing unequaled service to customers, and making highway travel safer and more efficient.

A 21st century investment program for passenger rail

Joe Boardman, President and CEO, Amtrak

Intercity passenger rail has been growing for more than a decade with Amtrak setting ridership records in 10 of the past 11 years. Several states have started new or expanded and extended existing passenger rail services in recent years. Amtrak and various states are buying new equipment to support the increasing numbers of passengers that keep showing up at stations.

In addition, Amtrak is constantly asked by everyone from rural communities to the nation’s biggest cities to deliver more and better service. Many towns without intercity rail service are seeking to be Amtrak-served communities. Can this growth continue? I believe it can because the demand is there, but it faces challenges that must be overcome.

As a nation, we’re not really making the investments we need for growth and improvement—we’re just barely keeping the existing system going. Amtrak, like everyone else in the transportation business, is trying to keep pace. We have to make do, cramming more onto the existing and aging infrastructure, and missing real growth opportunities.

In addition, communities are starving for tangible transportation improvements that can meaningfully impact their lives, particularly as airlines and intercity bus companies abandon small town America. State and local leaders see passenger rail as providing the connectivity, mobility, and economic development they want and need.

In many key respects, transportation has gotten worse for many Americans—and more expensive. This isn’t an Amtrak problem. It’s a national problem, and it’s symptomatic of the declining emphasis we’ve put on national connectivity in recent decades.

Look at the airline business. About half of airline flights on routes of less than 500 miles have been discontinued since 2005—and this is hitting small and mid-sized communities hard, and making it difficult for them to grow, or even to do business outside town limits.

Under these circumstances, you might think that strengthening national connectivity between our communities and economic centers would be a national priority. But if you thought that, you would be wrong. It’s not.

This year, Congress and the Administration will take up the reauthorization of federal funding for surface transportation. The focus of discussion is on the Highway Trust Fund (HTF), but it is financially unviable and built on an outmoded vision for mobility in the United States. We need to be thinking about how to replace it with a surface transportation program for the 21st century.

The HTF is an important policy tool for states and mass transit systems. It provides what is considered essential for complex multi-year projects—long-term planning and funding, because it is not subject to the annual appropriations process. And while there is a congressional limitation on contract authority, it has not posed a problem for states wishing to advance projects once the formula distributes funding for them.

When it started, the HTF had a real vision—to build the 47,000-mile Interstate Highway System. That work was substantially completed in 1992, and today the program has expanded and it pays mostly for maintenance of 220,000 miles of highways, less than a quarter of which are Interstate highways. Local transit was made eligible for funding in 1982, but intercity public transportation is still not eligible.

Bicycle and pedestrian projects, recreational trails, enhancement projects, and freight and passenger rail projects like CREATE were also funded by the HTF as the years went by. In 2008, the HTF could no longer sustain the demands on it and Congress began to transfer money from the general fund to HTF. Including 2014, that has amounted thus far to $53 billion dollars. The U.S. Department of Transportation says the HTF is set to run out of money again as early as August 2014.

Said another way, the federal government has been regularly tapping the general fund since 2008 to bail out a 60-year-old program that has lost its sense of direction.

We need a new, balanced federal surface transportation program that can provide investment in any of our surface modes—including highway, transit, and rail (both passenger and freight)—and would unshackle transportation planners, system users, and other decisions makers from simply chasing mode-restricted dollars and instead ask them to produce results that matter to the nation.

I believe the United States needs a new focus as it restores a sense of direction for 21st century connectivity. Our vision must be to provide the connectivity that will enhance and extend our global competitive advantages. The vision for the Interstate system and the HTF in 1956 was national connectivity for commerce, for defense and for the common good. The vision is still good, but the focus has been lost.

We need a federally funded Interstate Surface Transportation program that is focused on all surface modes maximizing their ability to provide their unique contribution to the most efficient and productive nation on earth. A world-leading economy today requires a world-leading transportation system supported by a new, mode-neutral trust fund that strengthens the whole network.

If national outcomes are our goal, I believe that federal investments in Amtrak have a home in a redefined, well-targeted surface transportation program. In particular, the operation of long-distance trains is a core federal responsibility, as is capital funding for Northeast Corridor infrastructure to establish a state of good repair, expand capacity for the future, and reverse a rapidly increasing degradation of components, ride quality, and system reliability.

Some may think redefining our approach to transportation investment may produce winners and losers, but that’s the wrong way to think about it. The right way is to think about transportation is as a tool for producing national outcomes. To forge it, we make some important choices—choices that go deeper than continuing to do something because it’s the way we’ve always done it.

The nation is facing a real challenge, and the bankruptcy of the HTF is just the tip of the iceberg. This is not an insolvable problem—if we are willing to work together to solve it. It won’t be easy, but if we strive in good faith, we can find a way through to a solution that will give America what it needs.

The people out there—customers, constituents, citizens, and taxpayers—want us to deliver good, relevant infrastructure solutions. As transportation leaders, we have a challenge to meet, and it’s one that we can no longer afford to dodge or neglect.

Rail transit: A Growth industry somehow goes largely unnoticed

Douglas John Bowen, Managing Editor

Across North America, rail transit’s growth—and success—is becoming increasingly impossible to ignore.

And don’t think rail suppliers—established players and newcomers alike—haven’t noticed.

Just a generation ago, U.S. “commuter rail” systems were limited mostly to the waterfront heavyweights and holdovers. Light rail transit (LRT) or streetcars existed in the surviving “seven sisters,” and new LRT systems in Edmonton, Calgary, San Diego, and Portland were launched under clouds of doubt.

Those days seem increasingly distant, as new rail starts sweep across the U.S. and Canada, oblivious to local political ideologies and shrugging off issues of “relative” urban size and density. Citizens don’t just want rail transit; they’re seeking it out, advocating for it. And political figures at the local, state, and federal levels are responding to that interest in rail, sometimes even leading it, as fiscal concerns, land use issues, and resource problems (energy, water, infrastructure decay) spur the need for adaptation.

Even just five years ago, new streetcar lines had a toehold in three Pacific Northwest cities, complemented by heritage lines in San Francisco and New Orleans. In 2013, South Salt Lake, Utah, joined the club. In 2014 alone, Atlanta, Tucson, Ariz., and Washington, D.C. will commence streetcar operations. Portland, Ore., a rail trendsetter, will add significant streetcar mileage. Places such as Charlotte, N.C., Cincinnati, Dallas, and Kansas City continue streetcar line construction. And a list of cities too long to list here are planning routes, identifying funding sources, and moving toward a rail transit future.

Five years ago, no U.S.-based company was building streetcars. Today, United Streetcar, LLC, and Brookville Equipment Corp. are in fierce competition with several big competitors with U.S. operations for a share of the streetcar market.

Meanwhile, LRT, once in the vanguard of rail transit submodes, continues growing in Denver, Phoenix, Portland, Seattle, and Toronto, with new lines debuting this year alone in Dallas (yet again), Houston, and St. Paul, Minn.

Interestingly, both of those rail submodes include access to major train stations in a number of cities, offering passenger intermodal opportunities now and in the future for connecting rail services to and from city centers, as well as to and from Amtrak and VIA Rail Canada connections. That suggests urban rail transit momentum may eventually “trickle up” to aid and bolster larger rail efforts, including regional (“commuter”) passenger rail, intercity rail, and even higher-speed rail (HrSR) and true high speed rail (HSR).

“I would suggest that the U.S. will experience a ‘back to the future’ passenger rail renaissance,” says Anthony Perl, professor of Urban Studies and Political Science at Simon Fraser University in Vancouver, B.C. “Just like the late 19th century, when local communities first recognized the advantages of rail transport for short distances, and only later connected these systems up—first through interurbans and then through intercity passenger rail—the current renaissance of rail transit will be an important precondition for future success in intercity passenger rail.”

Such preconditions are not yet fully in place, as evidenced by the resistance (or at least lack of interest) some still hold for larger rail projects covering larger geographic spans. “’What’s in it for me?’ is much easier to say when one’s talking high speed rail, even on [Amtrak’s] Northeast Corridor, compared with your neighborhood light rail stop,” one New Jersey rail advocate observes.

California sports the most light rail systems (five) of any state in the U.S., all in cities to be served by the state’s 700-mile HSR network, but outright resistance to the project continues to slow progress, often generated by mid-sized, midpoint cities with no current stake in any kind of rail transit at all. The state’s “blended” approach marrying HSR and conventional rail development has mollified some communities and objections, but the payoff for many seems distant and remote.

Then again, three decades ago, “new” LRT lines in Edmonton, Calgary, and San Diego were dismissed by skeptics as a flash in the pan; the payback to those cities, and numerous others, today appears almost a given. Indeed, the changes and progress “across the continent” shortchanges Hawaii, in particular Honolulu, now building its elevated rapid transit line to serve the state’s largest city—more proof of a figurative sea change for the better in rail transit’s fortunes.

Jack Stephens has been named executive director of the South Florida Regional Transportation Authority (SFRTA), succeeding Joseph Giulietti. SFRTA's governing board awarded Stephens a one-year contract.

Stephens (at left) steps up from his role SFRTA's deputy executive director, which he has held since May 2003. Last month he was named interim executive director.

"The organization and staff need the stability provided by a leader they have been working with for more than a decade as we face the myriad challenges ahead of us. The right candidate was already in-house and well-known to us," said SFRTA Governing Board Chair, Commissioner Steven L. Abrams. "The seamless transition to Jack's leadership has already begun."

Stephens' career also includes a stint with Atlanta's Metropolitan Atlanta Rapid Transit Authority (MARTA), where he held several roles. He has a B.A. degree from the University of the South and a Master's degree from the University of Georgia Stephens resides in Pompano Beach, Fla.

More top New Jersey Transit executives have been reported on the way out following the start March 1, 2014 of Veronique "Ronnie" Hakim's tenure as NJT executive director, succeeding Jim Weinstein.

NJT Director of Rail Operations Kevin O'Connor, along with Director of Bus Operations Joyce Gallagher, also are departing from NJT, local media reported March 4, 2014. Weinstein's departure was made public on Feb. 18.

Unclear was whether the departures were voluntary, forced, or something in between. State Transportation Commissioner Jim Simpson reportedly asserted Gallagher and O'Connor were still NJT employees, but other sources suggested such language was linguistic swordsplay.

Also unclear is the specific reason for the departures, though many suggest NJT's failure to protect rail rolling stock during Superstorm Sandy in October 2012 was a significant factor affecting O'Connor's credibility.

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Fort Worth's TEX Rail regional passenger rail project will benefit from $50 million budgeted in its fiscal year 2015 budget, Fort Worth Transportation Authority ("The T") said Tuesday, March 4, 2014.

Fort Worth Transportation Authority Chairman Scott Mahaffey, in announcing the package, said. "We are gratified and excited that the TEX Rail project has been designated for $50 million in funding next year. This is a true reflection of our partnership with the Federal Transit Administration and the diligent work of The T's staff."

Mahaffey acknowledged the strong support for the project from the Texas cities of Forth Worth and Grapevine, along with other stakehlders. "They are the key to our continuing with this important project. This vital commuter rail project will connect downtown Fort Worth with Grapevine and DFW Airport. This is an important partnership milestone for the region," he said.

The TEX Rail project would establish a 27-mile route linking Fort Worth, DFW, and Grapevine east along the old Cotton Belt route. The right-of-way is largely owned by Dallas Area Rapid Transit (DART), which is assisting The T in its efforts.

Last month The T named Paul J. Ballard its new president and CEO, succeeding Dick Rudell, who retired from his position as president and executive director Oct. 4, 2013.

For decades, even when it was designated by other euphemisms such as "enhanced bus", so-called "bus rapid transit" (BRT) was repeatedly hyped as a kind of interim service on the way to light rail transit (LRT).

Accordingly, as available railway rights-of-way or busy arterials were eyed for possible new-start LRT lines, BRT promoters and extra-cautious planners would suggest: Why not try out BRT first? And if buses prove good transit would work, invest the extra money to convert to LRT.

So how's that worked out? Not so well.

An early clue came in 2003 from Ottawa, where a former railway line had been converted into a "Transitway" for BRT buses (pictured). That year, a city study, noting that although "The transitway has been designed to be convertible to LRT," actual conversion would be daunting, both in terms of disruption and cost. Thus, Ottawa's current LRT project is routed in a totally different alignment, including a downtown subway. (See: Ottawa: New light rail system recommended ... But "BRT" conversion presents obstacles.)

 The big challenges, it turns out, involve physical incompatibilities (like different station platform heights and lengths, the need to remove pavement, etc.) as well as the drawback of suspending or disrupting a viable high-quality bus service to install LRT in the same alignment.

Fast-forward to 2014, in Austin, Tex., where a significant conglomeration of central-city residents (including me) and businesses has been lobbying for the city's first "urban rail" (LRT) line to be routed in the heaviest, densest central north-south local corridor — Guadalupe St. and Lamar Blvd. — rather than the more peripheral, easterly areas preferred by planners with the official planning agency, Project Connect. For background, see:

• Austin LRT plan criticized ... by rail advocates

• An alternative Urban Rail plan

 • Central Austin CDC's Light Rail Alignment Proposal

This is where the BRT issue becomes involved, in a situation that demonstrates how sometimes BRT can be a political obstacle rather than physical. That's because a high-quality bus service, funded as BRT by the Federal Transit Administration (FTA), and branded as MetroRapid, has been operating in this same corridor since January. To reject the community-proposed Guadalupe-Lamar (G-L) plan, local officials and planners have been arguing that MetroRapid is an insurmountable obstacle to rail — and that replacing buses with trains would jeopardize future FTA funding for the region.

But G-L urban rail supporters contend that the minimalist, low-cost MetroRapid service, far from an obstacle, functions rather as a precursor to rail. (See: Why the MetroRapid bus project currently is NOT an obstacle to urban rail in Guadalupe-Lamar.)

Indeed, Surinder Marwah — the Capital Metro planner who originally designed the MetroRapid project and helped secure FTA Small Starts funding — corroborates MetroRapid's role as a precursor to urban rail, and disputes that the project was ever intended to block rail in the G-L corridor. Marwah ranks as a strong and knowledgeable advocate of urban rail in the corridor.

And on top of all that, the Austin Rail Now blog (which, full disclosure, I edit) has made a case that, running almost totally in mixed traffic, with bare-bones infrastructure, MetroRapid is not really even "BRT."

Maybe Bus Upgraded Transit?

So far, the FTA has given hints that it "would consider [a] request" for "a new need in this corridor" if "Capital Metro and the community" can "show that urban rail is the highest priority in this corridor." (See: Contradicting local official claims, FTA says it "would consider request" for urban rail on North Lamar.)

Currently, Project Connect and local officials seem inclined to ensure that doesn't happen, especially by floating proposals to construct special bus lanes in the G-L corridor, a heavy infrastructure investment that could well present a bona fide obstacle to LRT in the eyes of the FTA.

Where will this all end up? Voters, possibly this November, would have the ultimate say in either approving or rejecting municipal bonds needed for the local share of the Project Connect plan. But support is growing for the alternative G-L corridor, and lots can happen before plans become final.

Meanwhile, for communities mulling the LRT-or-BRT issue, Austin's real-world situation should be an object lesson that the "Build BRT first, then convert to rail" notion may have more pitfalls than are immediately evident.

Ontario province's Regional Municipality of Waterloo on Tuesday, March 4, 2014, approved a C$1.9 billion (US$1.7 billion), 30-year contract to GrandLinq, one of three consortia competing to build an 11.8-mile light rail transit line.

GrandLinq's contract includes design, build, operate, and maintenance (DBOM) responsibilities over the three-decade period for the LRT line, now called Ion.

"Ion is the right move, at the right time, for the right reasons," council member Sean Strickland told local media in support of the move, opposed by four of other council members, including Mayor Doug Craig of Cambridge, Ont.

GrandLinq includes Plenary Group Canada Ltd., Meridiam Infrastructure Waterloo, LRT ULC Aecon Construction and Materials Ltd., Aecon Concessions,; Peter Kiewit Infrastructure Co., Kiewit Canada Development Corp., Mass Electric Construction Canada Co., Keolis SA, Keolis Canada Inc., AECOM Canada Ltd., STV Canada Construction Inc., and CIBC World Markets, Inc.

Two other consortia, Kitchener Waterloo Cambridge Transit Partners and Tricity Transit Systems, were finalists submitting bids late last year.

Ontario province has committed up to C$300 million in funding, bolstered by Canadian federal government funding of C$265 million and regional contributions of C$253 million.

Last August, Bombardier Transportation announced it had landed a contract with the Regional Municipality of Waterloo to supply 14 FLEXITY Freedom light rail vehicles (shown above), initially serving the cities of Kitchener and Waterloo.

President Obama's proposed fiscal year 2015 budget has already been questioned, per norm, by various congressional quarters. But the proposals outlined for Federal Transit Administration (FTA) grant programs are generally receiving warm reception from various geographic points, and tolerance, if not enthusiasm, across the political aisle.

The President's budget recommendations include $2.5 billion for FTA's grant programs, up $400 million from 2014 budget requests and an indicator, in particular, of the popularity of "New Starts" funding. Overall funding of nearly $91 billion was requested for the Department of Transportation within the proposed FY15 budget, unveiled Tuesday, March 4, 2014.

The FY15 budget recommends $1.4 billion for existing New Starts Full Funding Grant Agreements (FFGAs) and $578.2 million for proposed New FFGAs. Some $275 million is identified for Core Capacity projects, while nearly $200 million is slated for "Small Starts" Grant Agreements, which have served as seed money for small streetcar startups and bus system improvments. Another $37 million is targeted for for management and oversight.

Funds requested for projects with existing New Starts FFGAs include:

$100 million for Los Angeles's Regional Connector Transit Corridor;

$150 million for San Francisco's controversial Third Street Light Rail-Central Subway Project;

$150 million for San Jose's Silicon Valley Berryessa Extension

$150 million advancing Denver's ongoing RTD Eagle P3 project;

$250 million for Honolulu's elevated High Capacity Transit Corridor;

$109.1 million to wrap up St. Paul, Minn.'s Central Corridor Light Rail Transit Project, with the line set to open early this summer;

$100 million for Charlotte, N.C.'s Northeast Corridor Blue Line Light Rail Transit extension;

$47.2 million for New York's East Side Access project, linking the Long Island Rail Road with Grand Central Terminal;

$100 million for Portland, Ore.'s Milwaukie LRT extension; and

$89.6 million for Seattle's University Link LRT Extension.

Recommended New Starts Projects include:

$100 million for Los Angeles's Westside Subway Extension, Section 1;

$63.2 million for Phase II of Orlando, Fla.'s SunRail regional rail service;

$100 million for MBTA's Green Line LRT extension;

$100 million for Baltimore's Red Line;

$100 million for Maryland's Purple Line LRT project, spanning the northwest suburbs of Washington, D.C.;

$65 million for the currently stymied Columbia River Crossing Project, a proposed bridge linking Oregon and Washington states and including LRT on the span; and

$50 million for Fort Worth, Tex.'s TEX Rail project.

As separate line items, the budget recommends $275 million for Chicago Transit Authority's Red and Purple Line Modernization Project, identified as Core Capacity Projects.

Another $49 million is identified for Fort Lauderdale, Fla.'s Wave Streetcar Project.

BNSF has reported operating income for the fourth quarter of 2013 of $1.88 billion, up 15% from $164 billion in income in the fourth quarter of 2012. Income for the full year of 2013 was $6.67 billion, up 11% from $6.0 billion in 2012.

Revenue rose 6% during both the fourth quarter and the full year, with 4Q revenue of $5.76 billion and full-year revenue of $22.0 billion.

BNSF said its opeation ratio dropped 2.7 points to 66.6% during the fourth quarter compared to the year-ago quarter; it's full-year operating ratio was 69.1%, down from 70.7% in 2012. BNSF noted its "[o]perating ratio excludes impacts of BNSF Logistics."

"Fourth-quarter amounts are calculated as the difference between the YTD December and YTD September amounts," BNSF also advised in its performance report, released Monday, March 3, 2014.

Though booming demand for crude-by-rail product movement spurred traffic and revenue growth, aided by strong domestic intermodal activity, BNSF coal shipments somewhat surprisingly also edged higher in the fourth quarter, up 3%.

The railroad said, "BNSF continues to invest heavily in maintaining and renewing its network to increase capacity for growth and to provide safe, reliable service to its customers. Our 2013 capital commitments were $4.0 billion compared with $3.6 billion in 2012. Our 2014 capital commitments plan is $5.0 billion. We will spend $2.3 billion on our core network and related assets.

"In addition, we will continue investing in our locomotive and rail car fleet, in projects that expand and improve the efficiency of our infrastructure, and continue installing Positive Train Control in response to a federal mandate."

BNSF is a subsidiary of Omaha, Neb.-based Berkshire Hathaway. Inc.

Cologne, Germany-based TÜV Rheinland said Thursday, March 6, 2014, it has acquiried Risktec Solutions Ltd., based in Warrington, U.K.. Risktec has offices in the United Kingdom, the Netherlands, the Middle East and in North America.

Risktec provides risk and safety services and offers technical training and education to highly regulated industrial sectors around the world. Risktec's core industries include the oil and gas industry, nuclear power generation, and the railway sector, TÜV Rheinland said.

Dr. Manfred Bayerlein, CEO of TÜV Rheinland, said, "Risktec is an excellent addition for us, complementing our established services and fully in line with our strategy for 2017. With Risktec, we can now offer our industry customers further important services, providing independent advice on a wide range of risk and safety issues."

With its 230 employees, Risktec most recently generated sales revenue of more than $46.7 million, with efforts focused particularly on the markets of the U.K., North America and the Middle East, TÜV Rheinland said. TÜV Rheinland's own North American headquarters are in Newtown, Conn., with the company staffing offices in the U.S., Canada, and Mexico.

Risktec Solutions Ltd. Managing Director Alan Hoy said, "We are very pleased to become part of TÜV Rheinland. The two organizations complement each other well and share a common desire to provide high-quality services to clients. Our aim has always been to work with our clients for the long term, over the complete lifecycle of their assets, and being part of TÜV Rheinland extends our ability to do this."

TÜV Rheinland said the acquisition of Risktec enables TÜV Rheinland to assist clients in meeting the demand to demonstrate compliance with increasingly stringent international legislation and industry standards.