national defense transportation association · 2017-10-17 · • approx. 31,000 locomotives •...
TRANSCRIPT
National Defense
Transportation Association
Railroad 101
Theresa LorinserBNSF RAILWAY
DIRECTOR, MARKETING - INDUSTRIAL PRODUCTS
OCTOBER 12, 2017
1830 - Baltimore & Ohio RR becomes the first common carrier railroad
1862 - President Lincoln inaugurates construction of the transcontinental railroad
1887 - Interstate Commerce Commission (ICC) is created by the Interstate Commerce Act, making railroads the 1st industry subject to comprehensive federal regulation.
1936 - Chicago Great Western RR moves several hundred truck trailers on flatcars. Marks the beginning of the intermodal concept as we know it today.
1961 - Missouri Pacific RR acquires the rail industry’s first solid-state computer; IBM 7070. Railroads become one of the earliest major users of computer technology.
1970-75 - Burdened by regulation and faced with subsidized competition, 9 major RRs, representing almost
25% of the industry's trackage, file for bankruptcy protection.
1980 - Congress passes the Staggers Rail Act, reducing the ICC’s regulatory authority over railroads and
sparking a complete restructuring of the industry.
Railroad History
American Association of Railroads (AAR)
Eight months after U.S. entered into WWI, President Woodrow Wilson announced the nationalization of
American railroads to support the war effort.
• Set industry standards
• Represent the railroad industry before Congress, regulatory agencies, etc.
• Collect and distribute statistical data
• Public affairs
• Research and evaluate new technologies (ex - Transportation Technological Center Inc.)
• Provide information technology services (ex - Rail Inc.)
Federal Rail Administration (FRA)
• Created by the DOT Act of 1966. It is 1 of 10 agencies within DOT concerned with intermodal
transportation. Promotes safe, environmentally sound, successful railroad transportation to meet the
needs.
Surface Transportation Board (STB)
• Independent adjudicatory and economic-regulatory agency charged by Congress with resolving railroad
rate and service disputes and reviewing proposed railroad mergers. The agency has authority to
investigate rail service matters of regional and national significance.
Governing Agencies
Source: Association of American Railroads (AAR)
Class I• There are 7 Class I freight railroads• Operate in 44 states
• Account for 90% of employees
• 69% of U.S. freight rail mileage
Class II and III (Short Line and Regional Railroads)• +500 short line and regional railroads
• Operate in every U.S. state except Hawaii.
• Account for 10% of employees
• 31% of U.S. freight rail mileage
Types of Railroads
2016 data. Source: Association of American Railroads (AAR)
U.S. Freight Rail Network
BNSFCN
CSX
NSUPShort Line/Regional
KCS
CP
Multiple Owners
Rail network based on the 2016 National Transportation Atlas Database,
published by the U.S. DOT, Bureau of Transportation Statistics.
© 2017, Association of American Railroads.
SLID
E 6
In the U.S., railroads account for
approximately 40%* of all freight
(more than any other transportation)
• Nearly 140,000 miles of track
• More than 180,000 employees
• Approx. 31,000 locomotives
• Approx. 1.6 million railcars
• Approx. $25.9 billion capital
– 2015 record year $30.3 billion
U.S. Railroads: Leaders in Freight Transportation
ASSOCIATION OF AMERICAN RAILROADS2016 data. Source: Association of American Railroads (AAR)
Recovery, Restoring, and Reliability
Galveston Yard – Aug. 29, 2017
Bridge damage by Tropical Storm Harvey
Replacing ballast – Houston, TX
National Defense
Transportation Association
Technology
Ryan SteinbachUNION PACIFIC
SENIOR DIRECTOR - INDUSTRIAL
OCTOBER 12, 2017
Positive Train
Control (PTC)
PTC: What it is and How it Works
Using GPS, PTC evaluates train’sDistance from end of authority limits
Warning given if engineerdoesn’t slow train
PTC triggers brakes in engineerdoesn’t brake to stop short of limits
PTC: Scope Challenges
Much of the
technology did not
exist before the
government mandate
Must be interoperable
across all railroads
Must relay critical
operational data
Must operate across
all terrain types and
calculate stopping
distances regardless
of weather conditions.
• All railroads are implementing PTC under
the guidelines prescribed by the Rail
Safety Improvement Act (RISA) of 2008
• RSIA requires:
• Implementation date of December 31, 2018
• Defines territory and operating
requirements where PTC must be installed
– All railroads are committed to meet the
mandated implementation date and
operating requirements on time
Positive Train Control UpdateIndustry Installation
Cyber Security
• Rail Information Security Committee
(RISC) established 1999
• North American railroads working to
eliminate potential threats
• Industry initiative that provides:– Mechanism for consistent communications
– Development of best practices
– Effective coordination and communication
Rail Information Security Committee
Cyber Security
• Railroads conduct comprehensive
security assessments
• Threat scenarios drawn from
intelligence analyses and past
experiences
• RISC evaluates efforts and practices
against International standards and
the Cyber Security Framework
Cyber SecurityRail Information Security Committee
• Cyber threat intelligence sharing:
– Maintain industry shared repository
– Define and periodically review
government agencies in US and Canada
– Participate in classified presentations
– Share information on actual threats or
suspected illicit activity
Cyber SecurityRail Information Security Committee
• Preparedness
– Cyber security training and dedicated experts
– Regular security exercises
– Industry wide safe guards implemented
– Tools and protective measures designed to:
• Limit access and activity on networks
• Implement multifactor authentication
• Provide sustainability under adverse operating conditions
Cyber SecurityRail Information Security Committee
National Defense
Transportation Association
Open Top Loading
Lindy PopeNORFOLK SOUTHERN CORP.
MANAGER - LOADING & SECUREMENT SOLUTIONS
OCTOBER 12, 2017
The OTLRs covers minimum North American rail industry requirements for securing commodities that are loaded on open top railcars, trailers, and containers for safe and reliable rail transport.
OTLRs consists of 7 Sections:
• Section 1: General Rules for All Loading Commodities
• Section 2: Metal Products, Including Pipe
• Section 3: Machinery and Heavy Components, and Miscellaneous Commodities
• Section 4: Archived Figures
• Section 5: Forest Products and Miscellaneous Building Materials
• Section 6: Military Equipment and Materiel
• Section 7: Open Top Trailers and Containers For Rail Transport
NOTE: TEA also provides Modal Instruction (MI) 19 – Tiedown Instruction for Rail Movements, 7th Edition as a field guide to assist rail loaders comply with the OTLRs.
AAR Open Top Loading Rules (OTLRs)
The OTLR Committee's mission is to provide rules that ensure the safe, uniform, and economical securement of commodities transported on open-top railcars for the benefit of the rail industry, their shipping customers, and the general public.
AAR Member Railroads
• BNSF (Chair)
• NS (Vice Chair)
• CN
• CP
• CSX
• FEC
• KCS
• NOGC
• RAC
• UP
• PAR
Associate Members
• Trinity
• TTX
AAR Member Railroads
Contains general rules and guidelines applicable to all commodities shipped on open top
railcars in interchange service. This includes procedures for open top load testing and
rule changes, party responsibilities, minimum requirements, and guidance on setting up
multicar and dimensional load shipments. Also included are lists of various approved tie-
down and securement materials as well as specifications, performance standards, and
test procedures for gaining product approval. This section is to be used in conjunction
with Sections 2 through 7.
Section 1: General Rules Governing Loading of Commodities on Open Top Cars
Key Sections of the OTLR
Contains approved loading figures (load patterns) with securement specifications for
military vehicles, equipment, and materiel. This includes armored tanks and similar
vehicles, trucks, artillery, pontoons, cranes, road building and materiel handling
equipment such as forklifts. This section is to be used in conjunction with Section 1.
Section 6: Rules Governing Loading of Military Vehicles and Materiel on Open
Top Cars
Key Sections of the OTLR
Contains approved loading figures (load patterns) with securement specifications for
flat bed truck trailers loaded with a variety of commodities and equipment, that are
loaded onto Trailer-on-Flatcar (TOFC) service open top cars. It also contains a
section with figures of open top containers loaded with a variety of commodities, that
are loaded onto open top flat cars known as Container-on-Flatcar (COFC) Service.
This section is to be used in conjunction with Section 1.
Section 7: Rules Governing Loading of Commodities on Open Top Trailers
and Containers for Rail Transport
Key Sections of the OTLR
Website:
http://aarpublications.com/media/catalog/product/cache/1/small_imag
e/210x/9df78eab33525d08d6e5fb8d27136e95/o/t/otlrm-all_1.jpg
The full manual is available for purchase or you can buy individual
sections that fit your specific requirements.
AAR Open Top Loading Rules Manual
National Defense
Transportation Association
Railcars
Michael RutherfordCSX
VICE PRESIDENT
OCTOBER 12, 2017
Two Car Types Support Most Military Moves
82%
10%
6% 1% 1%
89-ft Chain Flats Loadings
Military Motor Vehicles Tractors
Railway Cars All Others
30%
21%
9%
5%5%
2% 1%
60-ft Chain Flat Loadings
Tractors PlateMilitary HarvestersWind Turbines OtherTelephone Poles Motor Vehicles
27%
Source: TTX – Full-year 2016 data
The 89-ft Chain Tie-Down Fleet Key for
Impedimenta
ITTX70-ton wood or steel deck3/8-inch or 1/2-inch chains
TTDX70-ton steel deck1/2-inch chains
TPDX89-ft flatcar
70 & 100-tonwith universal chains
The cars feature
• 286,000# GWOR capacity
• Pop-up container pedestals (flush when retracted)
• EOCC gag plate capability
• Fungibility with RR XTTX fleets
• 40 universal chain assemblies
850 New 100-Ton 89’ Chain Flatcars Thru 3Q’18
CONFIDENTIAL
1/2-inch chain assemblies with movable anchors will be installed in the deck channels
4 Recessed Channels Like DODX 42000-series
CONFIDENTIAL
• Combines 3/8-inch and 1/2-inch chain functionalities and capabilities into one assembly
• Features a newly redesigned telescoping load binder and heavy-duty swivel anchor
• Turnbuckle style tightening similar to current 1/2-inch chain assembly; no special tool requirements
• Ability to route chain through tighter areas similar to current 3/8-inch chain assembly, but able to
handle the greater load capacity of the 1/2-inch assembly
• Will be equipped on new 89-ft flats and phased into existing 89/60-ft fleets
“Universal” Chain Test Shipments Were a Success
Increases the Fleet to Over 1,500 Cars Near-Term
0
500
1,000
1,500
2,000
2,500
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
*20
17
2018
2019
2020
2021
Ca
rsTTX 89-ft Chain Flatcar Fleet
Average Fleet in Service History Fleet Size Planned Minimum Fleet Size Peak Month
Source: TTX *2017, Combination of actual and forecast
Utilization Concerns May Worsen Near-Term
20
22
20
23
20
24
20
25
20
26
20
27
975
• Planned minimum fleet size (PMFS) has been set at 1,500 cars
• Average fleet in service has trended well below PMFS for several years, inclusive of peak demands
• 850 car addition will push fleet size back over the PMFS threshold, but trend back to 1,500 cars by 2021
• TTX fleet will begin to fall below PMFS in 2022 to under 1,000 in 2027
• Demands on Commercial 89’ fleet should increase at a time when serviceable fleet
is decreasing
– Truck conversions
– Stationing (DODX vs. Commercial fleet)
– Power Projection strategy
– Potential mobilizations
• 850 car fleet addition will help address incremental demand
due to shift from sustainment to power projection strategy
• Better turns on existing equipment will increase fleet capacity, which will be required
on a projected smaller fleet
Utilization Initiatives Key to Sustaining
PMFS Levels
Equipment Turn
times >5 6 7 8 9 10
Annual load
capacity5,000 6,000 7,000 8,000 9,000
10,00
0
Hypothetical 1000 car fleet:
• Rail value versus truck
– Cost savings in truck competitive lanes
• Asset Utilization
– Current fleet is turning at ~5 times per year, but target 8-10 turns per year
– Better utilization will provide justification for future fleet reinvestments
– Improved utilization will increase fleet availabiltiy for potential mobilization
– Some installations still order all ½” chain flats even if not necessary
• Stationing
– Commercial fleets not intended for pre-positioning at military facilities
– Commercial fleets should be primary choice for shipping, especially with design benefits of new
850 cars
– If Commercial cars appear unavailable, please consult with TTX or CSXT prior to using DODX
pre-positioned fleet
Improved Utilization Provides Mutual Benefits
60-ft Fleet Serves Machinery Shippers and
Military
OTTX70-ton wood deck
3/8-inch chains
HTTX70-ton wood deck
1/2-inch chains
TPAX70-ton wood deck
with universal chains
Source: TTX *2017, Combination of actual and forecast
0
500
1,000
1,500
2,000
2,500
3,000
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
*20
17
2018
2019
2020
2021
Ca
rs
TTX 60-ft Chain Flatcar Fleet
Average Fleet in Service History Fleet Size Planned Minimum Fleet Size
Life-Extensions Secure 60’ Capacity for the
Future
THANK YOU!