INCREASING AWARENESS OF MINING AND SUPPLY CHAIN RISK MANAGEMENT IN THE

DOWNTURNIND014

Speakers:

• Matt Newman, Head of Casualty, Apollo Syndicate 1969

• Diann Morshead, Senior Manager – Risk Management, Norfolk Southern Corporation

Learning Objectives

• To increase the awareness of how associated industries can have a positive impact on reducing the risks relating to the Mining Industries supply chain

• To understand the importance of Rail Transportation in the Mining Industry

• To understand some of the technologies used by Railroads to reduce losses.

AGENDA

• Railroads and the Mining Industry

• Accident Data

• Addressing Derailments• Track

• Equipment

• Human Error

• Transportation Technology Institute, Inc. (TTCI)

• Immense pressure on margins

• All costs are under the microscope

• Continued & unchanged commitment to a safety culture

• A focus & drive towards zero injuries for staff and contractors

• A drive to minimize contractual liabilities with third parties

• A commitment to maximizing mine efficiency

Common themes from our Mining Industry renewal meetings – from a Casualty perspective

External exposures have the potential to:

• Seriously disrupt the operation of the mine

• Delay the arrival of crucial spare parts or equipment

• Block the departure or product from the site

What about external factors that are'out of your control' ?

All adding pressure those precious margins…..

Similarity to Class 1 Rail meetings

• Similarly focused on a number of topics:

• Margin management

• Driving a safety culture

• Maximizing efficiency

• Minimizing the risk of system failure

• Significant annual investment in infrastructure

Are these investments communicated outside their own industry?

• It is important to that associated industries share information on the structural investment they make, which has a positive impact on the risk profile of others

• This is a demonstration of how one industries investment helps to de-risk the supply chain of another

• Helping to reduce and quantify external risk factors

• Has a positive impact in that these investments help to maximize the business relationship of both sides in tough economic times.

Railroads and the Mining Industry -Coal

• Railroads deliver approximately 70 percent of coal delivered to coal-fueled power plants.

• Railroads are used to deliver coal to ports for export.

• In 2014, Coal comprised 38.8 percent of total tonnage hauled and 18.8 percent of total revenue for U.S. Class I railroads.

Railroads and the Mining Industry - Crude

• Railroads have been used to deliver crude oil to refineries as U.S. oil production increased.

• In November 2015, railroads moved 41 percent of oil produced in North Dakota.

• Railroads have also been used to deliver materials used in Fracking.

RAILROADSREDUCING DERAILMENTS

FRA Reportable Train Accident Rate By Cause

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Data Source: FRA Web Site March 2016

Track Equipment Human Factors OtherRep

ort

able

Tra

in A

ccid

ents

per

Mill

ion

Tra

in-M

iles

TRACK TECHNOLOGY

Sperry Rail Test Car SRS136

Rail Flaw Detection

Measuring CracksWith a Draisine

• The Rohmann(Germany) “Draisine”

• Walk-Behind

• Measures one rail at a time

• Knowing crack depth can improve the effectiveness of grinding program

Drasiene, Rail HeadCross-Section Exam

Draisine on-site EloRail Scan evaluation software results

Surface of rail

Damage depth of 1.850mm at 21 degrees (Mag. = X25)

Vehicle/Track Interaction (V/TI) Components

Exception Type

Look For: Examples

CBV Carbody Vertical

Look for repeated vertical profile dips in track

Look for mud and pumping conditions

CBL Carbody Lateral

Look for lateral alignment irregularity in track

AXV1 and

AXV2 Axle Vertical

Impact

Dent

Break

Look for broken rail, broken joint, broken frog, battered joint, engine burn, crushed rail head, loose/missing bolts.

MCO1 and

MCO2 10-Foot Mid-Chord Offset

Vertical Profile

Look for mud and pumping conditions.

Look for pumping joints

Bridge Tie Research• In-service monitoring

• NS, UP, TTCI

• Materials• Glue-laminate (glu-lam)

• Fiber reinforced Foamed Urethane (FFU)

• Use• New AREMA 30 (industry

committee) guidelines for engineered composite ties in 2012 manual

• Both FFU and glu-lam ties can meet guidelines with reasonable tie sizes

Installation of FFU Bridge

Ties on Norfolk Southern

FFU Bridge Ties Installed on Norfolk

Southern near Princeton, West Virginia

EQUIPMENT TECHNOLOGY

Coupler Pin Plate• Captures images of coupler

pin plate from underneath the train

• Max train speed 70 mph

• Can recognize:• Plate type

• Missing bolts and nuts

• Displaced and rotated plates

• Missing plates

Coupler Pin PlateDefect Validation

Good Plate, All Bolts Present Good Plate, One Bolt Missing

Plate Cocked, 3 Bolts Missing Plate Missing, 4 Bolts Missing

Coupler View - Key• Captures Images of coupler cross key

• Max train speed of 80 mph

• Can recognize:• Missing cross key

• Missing retainer-pin

• Missing cross key retainer washer

Acoustic Bearing Detector

• 2 manufacturers• TTCI (1 detector)

• TrackIQ (2 detectors)

• Defects – Running Surface• Cup

• Cone

• Roller

Acoustic Bearing DetectorDefect Validation

• Early-stage and advanced defective freight car bearings• Real time at track speed

• ID bearings before they overhead or seize in service

• Defects have specific acoustic signatures• High risk defects (multiple components)

• Cup defects (spalling, brinelling, water etch)

• Cone defects (spalling, brinelling, water etch)

• Roller defects (spalling, brinelling, water etch, seams)

Acoustic Bearing DetectorDefect Validation

MISSING ROLLER & BROKEN CAGE

6 in2 SPALLING CONE RACE 10 in2 SPALLING CUP RACE

Wheel Profile Detector

• 3 manufacturers• Beena Vision

• IEM

• KLD

• Defects• Flange Width

• Flange Height

• Rim Thickness

• Tread Hollow

• Back-to-back

• Other Users• BNSF, UP,

CSX

• Europe, Middle Eastern RRs

Wheel Impact Load DetectorWILD detectors use a series of vertical and

lateral strain gage force measurements to

identify wheel and truck anomalies

WILD Electronics with AEIlink to identify suspect cars

High Wheel Impacts Imbalanced Loads Overloads Truck Hunting Skewed Trucks

Truck Hunting DetectorTwo Methods

• TBOGI-HD evaluates the changes in wheel set orientation through the TBOGI detector array.

• WILD-HTD evaluates the lateral and vertical forces through the WILD detector array.

Truck Hunting DetectorTest Equipment Validation Run

Transfer of energy from forward motion into a sustained lateral oscillation of the wheelset(s), causing the truck to weave down the track

The lateral motion (energy) associated with the “truck hunting” phenomena is transferred into the freight car body and the track

HUMAN ERROR

Norfolk Southern Training Center

• Opened in December 1974.

• Located in McDonough, GA.

• Classroom space of 50K square feet.

• State-of-the –art technology.

• 21 Staff members

• Over 3,000 students annually.

Norfolk Southern Training• Learning areas

• American Welding Society-certified welding and testing facility

• Dispatch Center

• Locomotive Engineer Training

• Signal-Training area

• Signals

• Locomotive Maintenance and Repair Shop

• Four-Track Freight Yard

• Conductor training in virtual rail yard

TRANSPORTATION TECHNOLOGY

CENTER

TTCI

TTCI – Transportation Technology Center, Inc.

• Wholly owned subsidiary of the AAR.

• Located in Pueblo, CO.

• Operates on behalf of the Federal Railroad Administration.

• Focus on research, development and training for the rail industry.

• 270 employees.

• 52 Square mile facility with 48 miles of track.

TTCI –Full Scale Laboratory Testing

Vibration Test Unit Simuloader

Impact Wall Squeeze Fixture

TTCI – Security and Emergency Response Training Center (SERTC)

• In operation at TTCI since 1985

• Hazmat response for Surface Transportation

• Approximately 60,000 students trained• Railroad

• Chemical and petroleum

• Local, State, Federal and Tribal First Responders

• Emphasis on preparedness and response.

TTCI – Engineered Facilities for Dynamic Testing

• High Tonnage Loop (HTL)

• Wheel/Rail Mechanism Track (WRM)

• Transit Test Track (TTT)

• Railroad Test Track (RTT)

• Precision Test Track (PTT)

Tight

Turn Loop

Tran

sit Te

st T

rack

Substation #2

WRMTrain

Dynamics

Track

Precision Test

Track

Balloon

Loop

Substation #1

Impact

Tra

ck

HTL

Railro

ad

Test

Tra

ck

Questions?