Railway Supply 1 Institute Contents 2010 ReportTable of Contents Message to the Membership 2 RSI Leadership 4 RSI About Us 6 RSI Committees 8 Tank Car Update 13 RSI Conferences & Events 15 Railroad Day on Capitol Hill 15 RSI Meets with Amtrak Exec. Committee 15 RSI Hosts High Speed Rail Forum 16 RSI Annual Meeting & Market Outlook 17 Railway Interchange 2011 17 Our Work in Washington 18 RSI Membership: Our strength 24 Membership Directory 26 Advertising Index 36 Published for RSI by Simmons-Boardman Publishing Corporation, 345 Hudson Street, 12th Floor, New York, NY 10014. Design by Phil Desiere. Cover photo by Norfolk Southern. Photo, this page, courtesy of Canadian Pacific.
Message2 to the MembershipRSI Message to the Membership Dear RSI Members and advocate of the railway sup- has always been a priority Friends, ply industry. RSI staff meets for us, and a huge benefit of I have been privileged and regularly with colleagues membership. In the spring, honored to be Chairman of from the Class I railroads and RSI held the second in a the Railway Supply Institute other trade associations to series of seminars designed for the past year. Despite plan legislative strategies for the supply community to the economic conditions and exchange information. provide information on high facing our country and our Issues that RSI follows on speed rail and access to deci- industry, our membership behalf of you, the members, sion makers in Washington, has remained strong. RSI is include rail reregulation, D.C. At our enhanced annual unique among the railway beneficial tax credits, federal meeting, RSI members heard supply trade associations in investment in freight and from leaders in the locomo- that we have a broad-based passenger rail, the Section tive, freight car, and passen- membership with members 130 grade crossing safety ger rail industries in an effort from each of the disciplines. program, truck sizes and to provide additional infor- We are also unique in that weights, liability issues, and mation as you make deci- two railway supply trade the movement of hazardous sions on 2011 and beyond. associations have member- materials by rail. RSI is joining REMSA and ships and board seats. I thank It is important for our RSSI for a joint trade show in the Railway Engineering- industry— for you—to be Minneapolis on September Maintenance Suppliers Asso- heard. All members are 18-21, 2011. Railway Inter- ciation (REMSA) and Railway invited to join the Washing- change 2011 will be the larg- Systems Suppliers, Inc. (RSSI), ton Affairs Committee, which est railway supply trade show and value their support and RSI uses to gather member in the U.S. since the mid- advice as we move forward. input on all the legislative 1900s. We will be joined by This annual report can issues we follow. Our govern- and supporting AREMA and only briefly touch on the ment relations efforts are the CMA in technical sessions activities undertaken by RSI enhanced by the presence during the exhibition. Booth on behalf of its members and of Robert Clement, a former and track sales began July 1 their customers. I encourage member of Congress from and sales have been strong. RSI Chairman you to to take full advan- Tennessee who served on the Prime exhibit space and track Robert J. tage of what RSI offers to House Transportation and space is still available, but Pokorski, Miner your company. I also ask you Infrastructure Committee. I encourage you to sign up Enterprises to peruse our Membership RSI program committees soon if you plan to exhibit. Directory. Without the mem- are recognized industrywide Registration and hotel res- bership’s crucial support, RSI for their leadership and ervations will be available would cease to exist. expertise. The Association January 3, 2011. The Railway Supply Insti- of American Railroads and Future trade show plans tute has three major roles for its railroad members look to call for a joint RSI/Coordi- serving its membership— to the RSI American Railway Car nated Mechanical Associa- act as the government rela- Institute Committee (ARCI), tions meeting at the Chicago tions arm of the industry, to the Committee on Tank Sheraton and Towers Hotel be a vehicle for companies to Cars, the Quality Assurance in September 2012, and, as meet through our commit- Committees, the Equipment well, a second Railway Inter- tee structure, and to provide Leasing Committee, and the change in Indianapolis in marketing and networking Standard Coupler Committee 2013. opportunities. In addition, for help on virtually every We do all this with a staff we work to keep members regulatory or technical issue of four. Tom Simpson, Robyn informed on topical news facing the railroad industry. Leach, Nicole Brewin, and and upcoming events which Through its State Tax Com- Amanda Patrick do a great creates opportunities for mittee, fleet owners have job for you and I thank them participation, influence, and saved millions of dollars in for that. I also thank my fel- greater involvement. onerous state taxes. low members of the board of In Washington, D.C., RSI Providing marketing directors who make this job is the only independent opportunities for members much easier.
4 RSI LeadershipRSI Leadership The RSI Board of Directors develops and implements association policy, and repre- sents the diverse membership of the railway supply industry. Board members make up small and large companies involved in the manufacture of products and services in the freight car, locomotive, maintenance-of-way, communications and signaling, and passenger rail industries. RSI Board Members are elected each fall by RSI mem- bership at the RSI Annual Meeting. The Board, in turn, elects RSI’s officers, includ- ing the chairman, vice chairman, and secretary/treasurer. The office term for RSI Board members is three years. The term for officers of the Board is one year, and special directors have a one-year term. OffIceRS Edward J. Whalen Amanda Trainor Patrick Chairman freightcar America, Inc. Executive Assistant Robert J. Pokorski firstname.lastname@example.org Miner enterprises, Inc. HONORARY DIRecTOR Marshall G. Beck The RSI staff is available to Vice Chairman New York Air Brake company answer questions about the rail Gregory P. Vogelman supply industry. We strive to GE Rail Services advocate for our members and SPecIAL TRADe give them the information they Secretary/Treasurer ASSOcIATION need to succeed in the industry. Michael J. Mitrovich DIRecTORS The RSI staff has more than 50 MPL Technology Inc. REMSA years of cumulative experience Ronald C. Olds working with congress, U.S. agen- Plasser American corp. cies such as the Department of DIRecTORS Transportation, and with the rail- Robert L. Albritton road and rail supply industries. RSSI Railroad controls Limited Thomas J. Ulrich Arthur N. Ulrich company The Railway Supply Institute, Inc. Michael Foxx 425 Third Street, S.W. Strato, Inc. Suite 920 NON-VOTING PReSS Washington, D.c 20024 Brian Hawkins Robert P. DeMarco (p) 202-347-4664 Amsted Rail Railway Age (f) 202-347-0047 Terrence G. Heidkamp Stephen W. Bolte GATX corporation Progressive Railroading James R. Higginbottom RSI STAff The Okonite company Thomas D. Simpson President William R. Kiefer email@example.com A. Stucki company Nicole B. Brewin Robert Matthews Assistant Vice President Tangent Rail firstname.lastname@example.org Fred R. Sasser Robyn M. Leach chicago freight car Office Manager Leasing company email@example.com
6 RSI About Us2010 RSI About Us The Railway Supply Institute Support center of the industry network, acts on behalf of the largest and Support of railway suppliers is helping to make contacts for our smallest suppliers to North Ameri- important to the railroad industry. members with key players in the can freight and passenger rail- RSI organizes seven (7) project companies that work in the rail roads and their employees. As the committees on critical issues such and rail supply industry. only all-inclusive trade association as safe transportation of hazard- for the entire rail supply industry, ous materials, grade crossing safe- Advocacy we represent a diverse group of ty, and technical standards. Our RSI is your voice in Washington. rail suppliers involved in the man- committees assist members col- ufacture of products and services laborating to resolve the technical, The RSI is a presence on Capitol in the freight car, locomotive, legislative and regulatory issues Hill and among the regulatory maintenance-of-way, communica- unique to our industry. agencies that write the rules for tions and signaling, leasing, and the rail industry, continually advo- passenger rail industries. Connection cating safe, sensible, and efficient Railway suppliers are connected solutions that work for rail, suppli- RSI connects members to their and strengthened by RSI. ers, and the people who depend customers and partners, supports RSI members meet and do busi- on us to move their goods. RSI the improvement of the indus- ness with freight and passenger assists members in communicat- try, assists members in the global railroads and other suppliers at ing their interests to legislators, marketplace, and represents the annual conferences, tradeshows, regulators, and other industry industry during the regulatory and and industry events. We are the stakeholders. legislative process. Membership at RSI ensures that you belong to the only trade association that completely and exclusively repre- sents your interests. Offering the Most Extensive Service Portfolio in the Industry. TUV Rheinland Rail Sciences, Inc. Rail Sciences, Inc. is pleased to announce that it has become part of the TÜV Rheinland family of companies. Offering Unique Expertise and Quality Service in the Areas of: • Vehicle Dynamics • EMC & EMI Testing For more information contact us at: • Operations Analysis • Certiﬁcation of Welding Operations 404.294.5300 Atlanta • Derailment Investigations • Non-Destructive Testing 402.827-9328 Omaha • Litigation Support • Financial Risk Assessment firstname.lastname@example.org • Material Engineering & Testing • Bid & Tender Support www.railsciences.com • Testing & Instrumentation • Life Cycle Costing • System Integration • Maintenance Optimization • Independent Validation & Veriﬁcation • Global Product Testing & Certiﬁcation • Software Safety • Independent Safety Assessments TUV157 RA RSI Ad.indd 1 10/25/10 11:30:54 AM
82010 RSI Committees RSI Committees Providing A voice for SuPPlierS AmericAn rAilwAy cAr inStitute committee RSI’s goals are accomplished through the chair: martin graham, trinity rail work of its committees, which serve the group, llc RSI membership in a variety of areas. Our committees encompass the diverse nature The American Railway Car Institute (ARCI) of the industry and provide members with has represented the North American an opportunity to get involved by support- freight car building industry for more than ing and advancing railway supply industry 75 years. Membership consists of major goals in both the public and private sector. North American freight car manufacturers. They also provide networking and profes- The role of the ARCI is to work in coordi- sional development opportunities within nation with the Association of American the industry. On average, our committees Railroads on freight car design standards, meet quarterly either in person or via to tabulate and report North American teleconference. Some RSI committees are freight car orders, deliveries, and backlogs, restricted to companies that manufacture and to represent the specific interests of certain products. To join a committee, railcar builders in federal legislative and please contact us at (202) 347-4664. regulatory matters. The RSI project committees include: the The quarterly freight car statistics are used American Railway Car Institute Committee, by organizations as diverse as Bloomberg Equipment Leasing Committee, Quality News, the Federal Reserve Board, financial Assurance Committee, Standard Coupler analysts, component suppliers, and others Manufacturers Committee, State Taxation who follow the freight car building indus- Committee, Committee on Tank Car, and try and is used as a barometer on the state Washington Affairs Committee. Specific of the railway supply industry. details for each RSI committee can be found on our website. Following is a sum- ARCI’s Engineering and Design Subcommit- mary of our committee efforts during the tee meets several times a year to address past year. design and safety issues of freight car.
9 2010 RSI Annual ReportWorking with the AAR and TTCI, the committee tory and public policy issues affecting the leasinghelps to fund freight car fatigue tests. industry and to guide RSI policy development in this area. Many issues discussed by the committeeFatigue tests are used to update standards that involve railroad service relations issues, and thecars are built to. In some instances, these stan- committee often responds to AAR circular lettersdards haven’t been changed in decades. In addi- and other railroad proposals that may adverselytion, the committee meets twice a year with the affect private car owners. RSI member companiesAAR’s Equipment Engineering Committee to dis- own and provide for lease more than 700,000 rail-cuss freight car issues with freight and passenger road freight cars.mechanical officers. quAlity ASSurAnce committeeArci Affiliate membership chair: ray morgan, director of qA - north America, gAtX rail corporationThough membership on the ARCI committee isrestricted to North American freight car builders, The Quality Assurance Committee (QAC) is an advo-anyone can become an affiliate member. Typical cate for quality and continuous improvement in theaffiliate members are component suppliers for the performance and safety of the rail supply industry’sfreight car industry, leasing companies, and finan- products and services. The QAC works closely withcial institutions. Affiliate members receive quarterly the Association of American Railroads (AAR) Quality Commit-freight car statistics and have an opportunity to be tee to ensure that member companies receive the informa-on the Engineering & Design Subcommittee. tion they need to implement superior quality programs and meet the challenges for today’s marketplace.equiPment leASing committeechair: dave edwards, President, macquarie Over the years, working with the AAR Quality Committee,rail inc. the committee has sponsored training programs for suppliers who are new to the industry or need refresher courses on keyRSI’s Committee on Equipment Leasing is composed quality issues. While there will not be a quality conference inof representatives from several prominent freight 2011, the Committee will be working with the AAR to devel-car leasing companies. This committee’s primary op a training session for railway suppliers.responsibility is to evaluate those key regula-
102010 RSI Committees StAndArd couPler mAnufActurerS The Committee on Tank Cars has one subcommittee committee known as the Engineering/Technical Subcommittee. This chair: Patrick S. wallace, evP, trinity rail group subcommittee meets regularly to oversee the RSI/AAR tank car safety research project and meets quarterly with This committee promotes Association of the American the AAR Committee on Tank Cars to discuss tank car Railroads (AAR) standard coupler technology worldwide security, packaging and operational issues. and meets periodically to discuss the technical matters confronting standard coupler manufacturers. The com- rSictc 2010 PublicAtionS And ActivitieS mittee also works with the rail industry to develop cou- pler standards that reflect the latest in technology and • Each year, the RSI/AAR Tank Car Safety Research Proj- foundry practices. Representatives of the member com- ect develops a publication on Railroad Tank Cars and the panies meet annually to ensure that coupler component transport of hazardous materials. It lists statistics and pieces are compatible with each other. information on tank car safety standards. This committee is restricted to companies that produce • In early 2010 the RSICTC responded to a Pipeline and standard AAR couplers. Hazardous Materials Safety Administration Notice of Pro- StAte tAXAtion committee chair: robert Shank, corporate taxation, green- brier manufacturing This committee, consisting of companies that own and lease railroad freight cars, monitors and acts on state legislative and regulatory issues that affect the taxa- tion of privately owned freight cars. Over the years, it is estimated the committee has saved private car owners several million dollars in excess taxation. committee on tAnk cArS chair: william constantino, union tank car com- pany The Committee for Tank Cars (RSICTC) is a standing committee of RSI that addresses issues of importance to tank car builders and owners. The committee regularly reviews tank car requirements through its membership on the Association of American Railroads (AAR) Tank Car Committee and remains at the forefront of the latest research to improve tank car safety. RSICTC represents the tank car manufacturers in federal, legislative and regulatory matters.
11 2010 RSI Annual Reportposed Rulemaking. Titled PHMSA-2009-0289, this possible The RSICTC publications can be found on the RSIrulemaking proposes to allow tank cars that exceed website at www.rsiweb.org/rsicommittees_tc.html.the maximum capacity and gross weight on raillimitations to operate in rail service upon approval Membership on this committee is restricted to com-from the Federal Railroad Administration Associate panies engaged in the design, manufacture, owner-Administrator for Safety. ship, or leasing of railroad tank cars. BKBKRRNN 1_4 pg ad_Layout 1 12/21/10 9:11 AM Page 1 Fifth Edition John H. Armstrong’s The Railroad What It Is, What It Does 5th Edition The fifth edition of The Railroad: What It Is, What it Does is even more valuable than before. Inside you’ll find a comprehensive look at how today’s railroads function— from equipment to procedures and marketing to maintenance. This edition contains nearly a hundred pages of new information including two new chapters on Business Development & Marketing and Labor Relations & The Railway Labor Act. To see descriptions of all the chapters go to our web site www.transalert.com. BKRRNN $42.95 1-800-228-9670 or www.transalert.com The Railway Educational Bureau 1809 Capitol Ave., Omaha, NE 68102 Fax: (402) 346-1783 E-mail: email@example.com Include $8.90 S&H. S&H charges based on ground delivery for a single copy in US/Canada. Contact us for S&H on orders for multiple copies. Company invoicing available in US/Canada. All other countries, pre-payment is required and appropriate S&H will be added. You may fax orders to: 402-346-1783. US funds only. Allow 15 days for delivery. Nebraska residents add appropriate sales tax.
12 wAShington AffAirS committee securing federal investment for Positive Train Control and funding not only for the High Speed Rail program but for chair: John Paljug, Safetran High Speed Rail, supporting passenger rail cars within that2010 RSI Committees Systems corp. Amtrak’s legislative goals, sup- funding. The committee is chair: thomas J. gillespie, porting the Class I railroads also looking to tackle pro- Jr., AlStom transportation, efforts opposed to reregula- posed passenger rail liability inc. tion and lobbying against reform and the reauthoriza- bigger trucks. In addition, the tion of a surface transporta- The Washington Affairs Com- committee works very closely tion bill in Congress. mittee (WAC) is open to all with Operation Lifesaver to members, but with an empha- reduce the deaths and injuries sis on member companies in at highway-rail grade crossings the Communication & Signal- and along railroad rights-of- ing, Maintenance of Way and way through education pro- Passenger industries. This com- grams for the public. mittee and its working groups represent these segments of In 2010, the WAC worked on the industry in Washington, the drafting of a Buy America DC. Legislative issues of inter- White Paper. The white paper est include: supporting the looks to address what can be Section 130 highway-rail grade done to achieve clarity sur- crossing program, supporting rounding Buy America require- railroads in securing tax incen- ments and the need to pro- tives to increase capacity, vide increased and sustained GURU™ DL 2.1 and GURU™ Magnum Beats The Others Cold! Freeze Protection for Locomotive Cooling Systems That’s Cost Effective, Easy to Install and Highly Reliable. • Models to protect engine, compressor heads and cab heater lines. • Intelligent operation: Purges the system before any freezing occurs. • Completely mechanical, easy to install: No electrical or air power needed. • Will not trip or dump while locomotive is running. • Water temperature sensitive: Unaffected by outside air temperature. • All moving parts are completely isolated from fluid stream: Long service life. • Can be maintained or replaced without draining cooling system. • Models available to convert existing freeze protection. • Slotted actuator: Prevents accidental dumps when filling the system with cold water. • Available Temperatures: 35°F and 40°F For more information visit our website: ISO9001:2008 www.thermomegatech.com CERTIFIED and find us on ceboo Use your smartphone to capture this QR code and see a special video Therm-Omega-Tech, Inc. 353 Ivyland Rd. Warminster, PA 18974 1-877-379-8258 | FAX: 215-674-8594 | firstname.lastname@example.org
RSI-AARTank Car Safety Project 13 2010 RSI Annual Reportby todd treichel, rSi-AAr rail- and AAR were foresighted as well, standards that have been based onroad tank car Safety research and rather than solving this one such quantitative information are:& test Project problem and disbanding, the Tank protection requirements for bot- Car Safety Project was tasked with tom fittings, cost-benefit analysesSince 1970, RSI, with its partner the ongoing collection and develop- of proposed new standards forAssociation of American Railroads ment of information to prepare chemicals that present environ-(AAR), has funded and managed the partners to react to future mental hazards, identificationthe RSI-AAR Railroad Tank Car problems and to preempt others of optimal features for 286,000Safety Research and Test Project. by continuous attention to tank pound gross weight tank cars,The Tank Car Safety Project, as it car safety. and quantification of the perfor-is known, conducts various types mance of proposed specificationsof research to allow the industry One result is that the Tank Car for Toxic Inhalation Hazard (TIH)to continuously advance tank car Safety Project created, maintains, materials. The data can serve tosafety. Since its inception, the and continually adds to a set of forestall unnecessary steps also, asfounding partners have invested data describing damage to tank happened when requirements formore than $20 million in the Tank cars in train accidents. These fleet-wide tank steel normalizationCar Safety Project, while also comprehensive records on tens of were under consideration, and theinvesting more than $700 million thousands of tank cars damaged Tank Car Safety Project furnishedin safety improvements to the tank in accidents are unmatched in any data to show that the safetycar fleet. other hazardous materials trans- improvement would be marginal. portation mode, providing theThe Tank Car Safety Project started industry with a depth of under- The Tank Car Safety Project alsowhen RSI predecessor the Railway standing of tank car performance conducts tests and studies in spe-Progress Institute and AAR joined that is admired and trusted by cific areas of interest to the spon-forces to prevent releases of flam- both shippers and regulators. The sors, such as the over-the-roadmable gases that had caused dam- information is used to support tests needed to develop the loadage and casualties throughout the studies of potential enhancements environment data used to design STEVE SCHMOLLINGERlate 1960s. The solutions swiftly to tank car construction, designs the cars to survive the rigors ofdeveloped then – head shields, and materials, allowing the per- service. It also maintains andthermal protection and shelf cou- formance of various features to enhances a simulation of tank carsplers – reduced punctures of tank be quantified and improvement exposed to fire in accidents, andheads by 94% and fire-induced initiatives to be prioritized. conducts tests of high-temperatureruptures by 93% and continue to performance of tank steels.be mainstays in today’s fleet. RPI Among the improvements and
14 RSI Continues to Lead in Tank Car Security2010 RSI Tank Car Update When RSI member Union Tank Car Company progress with Transport Canada and should be along with its partners at Union Pacific Railroad completed in the near future. and Dow Chemical Company completed their work on the next generation tank car, they Three projects have been selected to begin the discovered that more research was needed. In ATCCRP effort: an effort to complete this research, they came to RSI and other industry leaders to propose 1. The FRA is funding a project to determine that an industry/government consortium take puncture energies vs. various impactor sizes. over the remainder of the research. This project will begin in the fourth quarter of With the support and participation from the 2010 and should be completed in about twelve RSI Committee on Tank Car (RSICTC), tank car months. builders and users, the freight railroad industry 2. The Industry Participants are planning to and the U.S. and Canadian governments, they fund a project to identify critical puncture agreed to pursue a method of continuing the resistance properties in tank car steels that will research. lead to the identification of new generation steels that are more crashworthy than currently The Advanced Tank Car Collaborative Research used steels. This project is planned to start Program (ATCCRP) is a joint effort by the in the fourth quarter of 2010 and will be industry and government to develop a new completed in about 18 months. generation tank car that is safer and more 3. The third project is to develop a secure than today’s tank cars that transport quantitative method that will evaluate various PIH commodities. The ATCCRP participants are design alternatives that will emerge from the the Federal Railroad Administration (FRA), ATCCRP research. This project is broken into the Transportation Security Administration several phases, and it is anticipated work will (TSA), the Dept. of Homeland Security (DHS), begin on phase one sometime in 2011 when Transport Canada, RSI, the Association of funding becomes available. STEVE SCHMOLLINGER American Railroads (AAR), the Chlorine Institute, the Fertilizer Institute and the In addition to the above, TSA/DHS have American Chemistry Council. multiple projects underway which are The group has finalized Memorandums of evaluating methods to improve tank car Cooperation between the Industry Participants security and they have been working closely and also between Industry, FRA, TSA and with the AATCCRP participants on these DHS. A Memorandum of Cooperation is in projects.
15 2010 RSI Annual Report Michael Pracht, US Railcar Company (at left) spoke on a supply side panel discussion concerning Domestic HSR/Intercityh Passenger Rail Manufactur- ing in America. He shared a moment with William J. Saddler, Jr., Wabtec (cen- ter), and RSI President Thomas D. Simpson.Conferences & EventsIn 2010, RSI offered many opportunities for for passenger rail. Along with RSI, represen-members to get more involved in the rail sup- tatives from the Class I railroads, the shortply industry and market their products and lines, passenger rail, the OneRail coalition,services to their customers. With the diverse the Sheet Metal Workers International Asso-nature of our industry, it’s no wonder our ciation and Go21 (a grass tops organizationevents covered so many topical issues—from that unites community leaders to promotegrassroots advocacy efforts, like Railroad Day rail in their areas), attended Railroad Dayon Capitol Hill, to forecast and marketing with plenty of common ground.events such as the Market Outlook Event, to Members of Congress and staff werelearning and networking events such as the happy to meet with the Railroad Day rep-Forum on the Current & Future Challenges in resentatives, with many meetings standing-High Speed Rail. room only. “Most meetings went very well. Like any association, the success of RSI The staffers all seemed interested to meetdepends largely on the involvement of its with us and two of the representatives mademembership. Our events in 2010 were widely a point to be part of the meeting,” com-attended and highly informative—we look mented Fred Sasser of Chicago Freight Carforward to scheduling even more confer- Leasing. “The best part of being involvedences and events in 2011. with the rail industry is being a part of the dedication of everyone to produce the bestFEBRUARY 25, 2010: RAILROAD DAY service possible for the shippers who dependON CAPITAL HILL on us,” commented Jim Higginbottom ofOn February 25, 2010, a unified rail indus- Okonite. “With all of us working togethertry touted a pro jobs message on Capitol on Railroad Day on the Hill, we continueHill, suggesting that investment in the rail to strengthen the resolve of our Congressindustry can provide jobs for many American to work to make the industry stronger andworkers. More than 600 railroad industry increase our ability to make further contribu-representatives relayed this message to more tions to the health of the economy of ourthan 400 House and Senate members and great nation.”staff. Railroad industry representatives had ahost of well prepared talking points on such MARCH 11, 2010: RSI MEMBERS MEETissues as the PTC mandate, balanced reregu- wITH AMTRAk ExECUTIvE COMMITTEElation, investment tax credits, and support On March 11, 2010, RSI staff and represen-
16 tatives from 18 member companies met Amtrak Section 305 Next Generation Equip-2010 RSI Conferences with members of Amtrak’s executive com- ment Committee. mittee for a round table discussion and a Speakers from four of the major passenger networking luncheon. Representatives from rail car builders—Alstom, Talgo, Bombardier, Amtrak included: D.J. Stadtler, CFO, Stephen and US Rail Car—gave their assessment of the Gardner, VP for Policy & Development, Joe demand for passenger rail equipment in the McHugh, VP for Government Affairs & Corpo- United States and the capacity of industry to rate Communications, and William Crosbie, meet that demand. They also discussed the VP of Operations. significance of the Buy America requirement During the two-hour meeting, Amtrak and to their companies. RSI members discussed the supplier role in “As rail suppliers, we need to help maxi- Amtrak fleet strategy, the Section 305 Com- mize the amount of domestic content as mittee (Next Generation Equipment Commit- much as we possibly can to help justify con- tee), future funding of Amtrak, and Amtrak’s tinued investment in our rail products. If we needs from the supply industry. don’t this, this side of the rail supply business “It was a great opportunity to hear from won’t grow,” commented Tim Gillespie of Amtrak management on their future plans Alstom Transportation. and helps RSI and its members focus on how During a state/freight rail panel, John we can help the railroad on Capitol Hill,” Horsley, AASHTO Executive Director, remarked Tom Simpson, RSI Executive Direc- described the progress that states are making tor. He continued by asking the supplier on their passenger rail corridors while Paul industry to encourage lawmakers to continue Worley, Director of Engineering and Safety to fund Amtrak and its efforts to grow and for the North Carolina Department of Trans- purchase equipment that would provide portation, presented a detailed picture of the many American jobs. projects in the development of North Caroli- Other discussions surrounded options na’s passenger rail corridors. Rod Diridon, Sr., on how to fund Amtrak and its fleet plan Chairman of APTA’s intercity rail committee outside of the traditional appropriations pro- and former chairman of the California High cess, which included various private financ- Speed Rail Authority’s board, described the ing methods (debt/lease) and federal debt progress in California. financing (RRIF loans, TIFIA, and possible Representatives from CSX, Norfolk South- credit programs). ern, and BNSF discussed the projects they have underway with states on corridors on MAY 11, 2010: RSI HOSTS FORUM ON their systems. MEETINg THE CURRENT & FUTURE Karen Rae, Deputy Administrator at CHALLENgES IN HSR FRA, gave a status report on the American Recovery & Reinvestment Act rail grants and Following the successful 2009 Selling Series discussed FRA’s Buy America requirements. on High Speed Rail, RSI once again spon- She indicated that she would like RSI to work sored a forum addressing the highly political with FRA on meeting the challenges of the issue of high speed rail. Also sponsoring this Buy America mandate. event was Quebec Government, OneRail, and Sylvia Garcia, a staff member of the House Women in Government Relations. Appropriations Subcommittee on Transpor- The topic of the forum was “Meeting the tation, Housing, and Urban Development, Current and Future Challenges in High Speed stated that Congressional appropriators will Rail.” In addition to presentations by leading be hard-pressed to provide more funding for Department of Transportation, Members of high speed rail for Fiscal Year 2011 unless Congress and staff, Amtrak, state officials, there is clear evidence that the $10.5 billion and freight railroads, representatives from lawmakers approved for the sector has been U.S. railway suppliers such as Bombardier, used by state and local governments. Alstom, Talgo, and US Railcar discussed many Also discussed was the need to “sell” high supply side concerns. Discussion topics includ- speed rail to Congress and the American peo- ed funding and implementation in specific ple. Several speakers commented that with- corridors, regional and border implications, out a genuine effort create enthusiasm for a Congress’s Role in developing and sustain- larger passenger rail system; the opportunity ing High Speed Rail in America, and updates will pass us by. regarding the National Rail Plan and the “If we do not do our job of convincing
17Congress and the administration that invest- The principals of the Railroad Financial 2010 RSI Annual Reporting in high speed rail is the right decision, Corporation, a rail and rail equipment finan-we will lose high speed rail in America,” cau- cial advising company led by Tony Kruglinski,tioned Gillespie. discussed the current state of affairs in our industry from the perspective of the financialSEPTEMBER 16, 2010: ANNUAL MEETINg community.& MARkET OUTLOOk EvENT Mike Franke of Amtrak presented on More than 100 RSI members turned out Amtrak and the Future of High Speed Rail.for the RSI sponsored Market Outlook Event He provided a detailed status report onheld on at the Union League Club in Chi- Amtrak’s current financial situation and itscago, Ill. This event was held in conjunction aging fleet cars, noting that some cars usedwith the Annual Membership Meeting and by Amtrak date from the 1950s and the mostincluded speakers from around the rail indus- recent cars added to the fleet. Franke report-try. Speakers included John Hamilton, former ed that, in some instances, replacement partsPresident of Electro-Motive Diesel, Anthony for this equipment are unavailable and mustKruglinksi, President of Railroad Financial be created by Amtrak maintenance workers.Corp., and Steve Menzies, Group President of Among other things, Franke also discussedTrinity Rail. the Section 305 process created to develop In his keynote address, former EMD Presi- next-generation passenger car and locomo-dent Hamilton focused on the health of the tive specifications.railway supply community. Specifically, he Steve Menzies, President of Trinity Rail,discussed the acute cyclicality that the railway culminated the event with a provocative lun-supply industry faces decade after decade, cheon address that discussed that state of theand the problems that poses for the supply new freight car building and equipment leas-community. He also outlined possible solu- ing industries. Menzies strongly suggestedtions to that problem. Hamilton argued that a new direction is needed for the industrythe enormous cyclicality in purchases places and urged RSI and its membership to becomestress on the supply community and adds more involved in advocating for the industryincreased costs for its customers. He noted in Washington, D.C.that it affected all companies but placed Copies of speakers presentations are avail-extreme pressure on the smaller suppliers. able on the RSI website under Meetings &Solutions offered included reducing the man- Seminars. Based on the turnout and positiveufacturing cycle times, standardizing designs, comments from RSI membership, the RSIand entering into multiyear deals. He also Board is exploring options for holding a simi-discussed other issues facing the locomotive lar members-only event in 2011.builders.Railway Interchange 2011September 18-21, 2011 tive across the rail supply industry. any other railway supply tradeMinneapolis, MN The show will feature hundreds of show.Join RSI and thousands of rail exhibits, both indoor and outdoor,industry customers at Railway and CMA technical sessions on The venues for Railway Inter-Interchange 2011 in Minneapolis, topical issues. change 2011 will be the Minne-Minn., on September 18 - 21, 2011. apolis Convention Center and CPSponsored by RSI, Railway Railway Interchange 2011 will be Rail’s Humboldt Yard. They offerEngineering & Maintenance the best opportunity for suppli- the best-ever indoor and outdoorSuppliers Association (REMSA), ers to demonstrate their products venues for our industry show.and Railway Systems Suppliers, Inc & services to key decision makers RSI member exhibitors can choose(RSSI), Railway Interchange 2011 and customers both in the United from more than 100,000 squarewill be three tradeshows in one States and abroad. Exhibiting at feet of column free trade showand give railroaders from around Railway Interchange 2011 will space and more than 1.5 miles ofthe world a unique opportunity bring you face-to-face with more combined, outdoor, on-and off-to see all that is new and innova- railroad industry customers than track exhibits.
182010 RSI Capitol Hill RSI Work in Washington The Railway Supply Institute acts as the supplier voice in Washington, D.C., and within the rail industry. As the only independent advocate of the railway supply industry, the association works tirelessly to represent its membership. With access to decision makers in the United States Congress and the Obama ing or rebuilding old, inefficient rail- Administration, RSI works with regula- cars. The tax credit will be limited to tory agencies, Congressional lawmakers, cars built in 2010 and 2011 and would and staff to promote rail supply indus- require a minimum of 8% increase in try interests. capacity or fuel efficiency. H.R. 5478 has been referred to the House Ways & MAJOR LEGISLATIVE Means Committee and has 60 cospon- INTERESTS IN THE SECOND sors. SESSION OF 111TH CONGRESS • Flexibility: As federal funds are made available, outside of dedicated Expanding Infrastructure highway user fees, freight rail proj- ects should continue to be eligible In order to meet growing transporta- to receive state or federal money for tion challenges, targeted tax incentives infrastructure programs, such as the can help expand freight rail Economic Recovery Act of 2009. capacity. Below are pieces of legislation that affect infra- Passenger Rail Development & structure funding. Fiscal Year 2011 DOT Appropriations • H.R. 1806/S.3749: 25% Recovery Act provided $9.3 billion for investment tax credit for high speed and intercity passenger rail new rail capacity. Referred which included $1.3 billion for Amtrak to House Ways & Means and $8 billion for the development of Committee where it is pend- high speed rail. ing consideration. H.R. 1806 has 126 cosponsors. S. 3749 was House Transportation & Infrastructure referred to the Senate Finance Commit- Committee version of a Surface Trans- tee where it is pending consideration. S. portation Bill would provide $50 billion 3749 has one cosponsor. over six years for high speed rail cor- • H.R. 1132/S.46: Short Line Tax Cred- ridors. it. Expired on December 31, 2009. • H.R. 5478: 25% tax credit for replac-
19 2010 RSI Annual ReportCurrent Status: Safety Program • Infrastructure Tax Initiatives: H.R. 1806,Following the elections, members of the the Freight Rail Infrastructure Capacity111th Congress returned to Washington, D.C. Expansion Act, H.R. 5478, the Green Railcaron Monday, November 15th for the start of a Enhancement Act of 2010lame duck session. The agenda for the lame • Potential to include funding of Positiveduck session is led primarily by the need to Train Control as mandated in the rail safetyappropriate funding for the federal agen- bill passed by the previous Congress.cies following the expiration of a continuing • Truck Sizes and Weightresolution on December 18th. Among the • Eligibility of Freight Rail Projects for feder-rumors: another CR could pass and last for a ally funded transportation projectswhole year, or a CR could be offered to run • High Speed Railthough March 4, 2011. RSI continues to work by itself and with other coalitions to promote the Section 130Surface Transportation Bill highway-rail grade crossing safety program(SAFETEA-LU Reauthorization) by visiting Congressional offices in support of the program and H.R. 2125 and S. 791, com-The 2005 “Safe, Accountable, Flexible, Effi- panion bills which would both preserve thecient Transportation Equity Act-A Legacy program at its current funding level ratherfor Users” (SAFETEA-LU), approved by Con- than phase the program out and lump it intogress and signed by then-President Bush in a larger safety category as currently requiredAugust 2005, authorized $286.5 billion in in the House version of a Surface Transporta-federal investment for the highway, public tion Reauthorization bill. The Senate has yettransportation, and highway safety programs to act on its version of a Surface Transporta-from fiscal years 2004-09. The law expired on tion Reauthorization bill, although in a draftSeptember 30, 2009. The House and Senate version the Section 130 language from S. 791have passed five extensions with the current has been accepted.extension expiring on December 31, 2010.Issues that potentially fall under this larger In addition, RSI continues to advocate for thebill: continued freeze on longer, heavier trucks• Section 130 Highway-Rail Grade Crossing and in seeking ways for a dedicated source of
20 Sen. Herb Kohl (D-Wis.), the sponsor of S. 146, that he would include portions of his2010 RSI Capitol Hill bill into the STB Reauthorization bill. S. 146 was reported by the Senate Judiciary Com- mittee and would take away key parts of the STB’s jurisdiction and give the authority to investigate potential antitrust law viola- tions by the railroads to the Justice Depart- ment, the Federal Trade Commission, and the federal courts. Freight railroads remained on alert for funding for high speed and inter-city passen- attempts to move legislation that would ger rail in America. reauthorize the Surface Transportation Board (including antitrust legislation) through a STB Reauthorization and Rail lame duck session. Reregulation Passenger Rail Liability In December 2009, the Senate Commerce Committee approved S. 2889, which would In November 2010, Sen. Dianne Feinstein reauthorize the Surface Transportation Board (D-Calif.) introduced S. 3982, a companion for the first time since its inception and give bill to H.R. 6150, a bill which would raise the WILLIAM C. V ANTUONO the Board a greater role in regulating freight liability cap in certain railroad accidents from rail rates. Since December, Senate Committee $200 million to $500 million. H.R. 6150 was staff has been in negotiations with industry introduced by Rep. Elton Gallegly (R-Calif.) stakeholders regarding compromise lan- on September 17, 2010. The $200 million cap guage to the bill. In addition, to further com- was instituted as part of the Amtrak Reform plicate matters, Sen. Jay Rockefeller (D-W. and Accountability Act of 1997. Va.), the sponsor of S. 2889, has promised RSI Supports Operation Lifesaver RSI is a cofounder and longtime passing. Operation Lifesaver and program have combined to cre- supporter of Operation Lifesaver its state programs have touched ate educational programs that (OLI), the nationwide volun- millions of lives through pre- have saved lives. teer organization dedicated to sentations to schools and other Since its creation is 1985, RSI reducing crashes at highway rail groups, literature and public ser- members have donated their grade crossings. Since the mid- vices announcements. Recently, time and over $500,000 to OLI. 1980s, RSI and its predecessor at the urging of railroads and organizations have supported the federal government, OLI has 2010 Contributors Operation Lifesaver (OLI) with created programs for trespass- American Railcar Industries, Inc. countless volunteer hours and ers. Chicago Freight Car Leasing, Co. several hundred thousand dol- Diesel Electrical Equipment, lars in direct contributions to OLI enjoys broad support from Inc. this highway-rail crossing safety Congress, the Department of GLNX Corporation organization. Transportation, individual states, Loram Maintenance of Way the railroad and railway sup- Railinc With chapters in 49 states, OLI’s ply industries, law enforcement Railway Systems Suppliers, Inc. “look, listen, and live” mes- agencies, the trucking industry, (RSSI) sage has been a major factor in and other highway safety orga- Smith Systems Inc. reducing the number fatalities nizations. Operation Lifesaver Strato, Inc. associated with highway-rail and the federal Section 130 Union Tank Car Company grade crossing crashes and tres- grade crossings improvement
The higher cap would only apply reforming Congress. The GOP also withholding funding for its imple- 21to accidents caused by “gross plans to dominate the schedule mentation; and reviewing unspent 2010 RSI Annual Reportnegligence,” establishing a higher with work on extending all of the funds from the 2009 stimulus legis-standard than the one set under 2001 and 2003 personal income lation. We must tell our story andcurrent law, according to Fein- tax cuts; repealing the new health explain how we contribute to bothstein and Gallegly. The higher cap care law or (more realistically) the economy and national security.would apply retroactively toSeptember 12, 2008, when aMetrolink train collided witha Union Pacific Railroad trainin Chatsworth, Calif., caus-ing 25 deaths and injuries tomore than 150 people.S. 3982 was referred to theSenate Committee on Com-merce, Science and Transpor-tation where it is pendingconsideration. The bill doesnot have any cosponsors.H.R. 6150 was referred to theHouse Committees on Judi-ciary and Transportation &Infrastructure where it is alsopending consideration. Thebill has 18 cosponsors.Both bills will likely be rein-troduced in the incoming112th Congress in January2011. RSI believes that theunintended consequences ofthis bill will have a significantadverse impact on currentand future rail passengeroperations (both commuterand intercity) and could jeop-ardize the Administration’svision for the future of highspeed rail.LOOkING AHEAD –THE 112TH CONGRESSThe 2010 November mid-termelections resulted in a waveof Republican victories ulti-mately capturing the Houseand increasing their share ofthe Senate. House Republi-cans have selected Rep. JohnBoehner (R-Ohio) to be thenew Speaker of the Housein the 112th Congress. Boeh-ner has said his focus will beon job creation, reducinggovernment spending, and
RSI Work in Washington:22 Bob Clement ReportsRSI Clement As I’ve learned more about However, the legislation industry, with over 600 com- the railway supply industry that Congress did not pass, panies located in virtually while representing RSI on such the Transportation every Congressional district, Capitol Hill, I have become Reauthorization bill entitled is a voice that needs to be more and more impressed the Safe, Accountable, Flex- heard. with RSI membership and ible, Efficient Transportation the optimism shown despite Equity Act: A Legacy for Users In the last Congress, Tom the state of our economy, (SAFETEA-LU), which sets Simpson, Nicole Brewin, especially as it impacts our out a six-year funding plan and I visited well over 200 industry. As directed by the for transportation and infra- members of Congress. We RSI Board of Directors and structure projects, may prove will reintroduce RSI to the implemented by the RSI problematic in the years new Congress and continue staff, RSI pursues legisla- ahead. to press for legislation that tion beneficial to railway will benefit our membership suppliers and their custom- We all watched the 2010 in the rail supply industry. ers and opposes legislation elections with incredible If you have not already, I that will harm the rail and interest and I think it’s safe encourage you to develop railway supply industry. I to say that the future of rail a relationship with your have been challenged and transportation legislation is member of Congress and motivated to work on your uncertain. Will the demand your Washington staff. RSI behalf for the past three for smaller government is happy to assist you with years. affect the size and scope of those outreach efforts. We’ve the next SAFETEA-LU? Will had a lot of turnover in Con- With that as a yardstick, the high speed rail effort be gress, so it’s important that this past Congress has curtailed by cost-cutting? we redouble our efforts to Bob Clement been admittedly a mixed Will Amtrak, as it celebrates spread the RSI message. I bag for us. On the positive its 40th anniversary, have look forward to working with side, efforts to upset the to fight for adequate funding all of you in 2011. current balanced regulation yet again? Can the industry of the rail industry seem secure infrastructure fund- to have been defeated. On ing? passenger rail matters, Amtrak continues to enjoy RSI is a voice that can help high levels of congressional steer the debate. Do you support which translates rely on the Section 130 to increased capital invest- program, Amtrak funding, or ment by our nation’s pas- some other federal program senger railroad. The Obama to help sell your products? Administration’s commit- If so, you need to be heard. ment to high speed rail is The good news for this Con- gratifying to us who believe gress is that while Repub- that high speed rail develop- licans will lead the House ment is an important step of Representatives, trans- to balancing our nation’s portation has historically infrastructure. been a bipartisan issue and Congressional transporta- tion leadership has changed little. The railway supply
242010 RSI Membership Membership The Strength of the Supply Industry The role of an association is to balance the needs membership and acquiring new members, thus of its membership and create priorities and pro- better serving our large and diverse industry. grams based on these needs. RSI, like other trade associations, represents a diverse membership We serve our membership and our industry by that stretches throughout the industry. We work encouraging participation from all levels of mem- diligently to meet the needs of all our members bership. RSI offers numerous ways for member through our programming, outreach, committee involvement through outlets such as educational work, and advocacy programs. RSI’s role is to bal- programming, hosting trade shows and market- ance these priorities and find a way to effectively ing events, creating project committees, which meet each of them. As an independent advocate work as a forum for our membership, and creat- for the entire rail supply industry, RSI can best ing opportunities for our members to meet with meet the needs the supply Industry and continu- elected officials and other government decision ously strives to do so. makers. With better communication and outreach to customers, folks on Capitol Hill, and you, RSI 2010 was a great year for RSI. Despite the lag- continues to effectively address your needs and ging economy, RSI acquired more than 25 new bring value to your membership. members and retained over 85% of our member- Look for additional information our members ship from 2009. This is a great sign and we look by viewing our online Membership Directory and forward to an even stronger membership in 2011. our Interactive Membership Map located on our RSI remains committed to retaining our current website at www.rsiweb.org. WILLIAM C. VANTUONO
RSI welcomes new members in 2010 25 Company Name Location 2010 RSI Annual Report 3M Traffic Safety Systems St. Paul, MN AGL Manufacturing Ltd. Vancouver, BC Canada ARMS / Automated Railroad Maintenance Systems, Inc. O’Fallon, MO Astech Inc. Vassar, MI Avondale Partners Nashville, TN Bank of America - Merrill Lynch Los Angeles, CA Cardinal Valley Industrial Supply, Inc. Salem, VA Chatham Steel Savannah, GA Cyclonaire Corp. York, NE Ellwood National Crankshaft Group Irvine, PA HARTING North America Elgin, IL ITT Koni North America Hebron, KY Lat-Lon, LLC Denver, CO MTU Detroit , MI PolyPhaser / Transtector Hayden, ID Proceco, Inc. Montreal, QC Canada PS Technology, Inc. Elkhorn, NE Railinc Corp. Cary, NC Ricardo, Inc. Belleville, MI Sapa Extrusions Cressona, PA Seats Incorporated Reedsburg, WI Shur-Co Rail Yankton, SD Spacecraft Components Corp. North Las Vegas, NV Stanley Proto Industrial Tools Conyers, GA Surrette Battery Co, Ltd. Springhill, NS Canada TorcUp Inc. Easton, PAIn Loving Memory of Marilyn TonnOn September 22, 2010, RSI and the rail supply others, Marilyn knew most all of the RSI mem-community lost one of its biggest supporters, when ber companies and contact officers. She felt trulyMarilyn Tonn, former RSI/RSA Executive Secretary vested in the success of RSI’s members. In addition,and wife of Howard Tonn, former RSI/RSA Executive she could always be found with a warm smile andDirector, passed away. kind words.For 12 years, Howard and Marilyn Tonn contributed Outside of work, Marilyn contributed to those intheir time and leadership to the success of RSI and need by serving as the Director of York Townshipits predecessor organization, the Railway Supply As- Senior Center, coordinating Meals on Wheels for 13sociation. They retired from RSI in 2008. Hard work, years. Marilyn left behind a wonderful husband ofintegrity, character, and hope—these are the things 55 years and a host of children and grandchildren.that characterize Marilyn and what she contrib-uted to Railway Supply Institute. Her institutional Marilyn Tonn was a true supporter RSI and its mem-knowledge, passion for the RSI and its membership, bership. While her presence will be truly missed,and diligent work ethic moved the organization she will continue to remind us at RSI of what it is toforward. A person who enjoyed getting to know know and serve our membership.