Annual Report 2011
RSI	ANNUAL	REPORT	2011                                      TABLE OF CONTENTS                                    SUPPORT	 ...
| RSI ANNUAL REPORT 2011                                                       | SUPPORT |ABOUT RSI        We are your voi...
RIDE ON OUR REPUTATIONMaintenance of Way Equipment and Services that exceed the Speed, Performance,and Reliability standar...
| RSI ANNUAL REPORT 2011                                                           | SUPPORT |CHAIRMAN’S MESSAGE          ...
Virtually“EVErything But thE Box ”                                                                                        ...
| RSI ANNUAL REPORT 2011                                                         | SUPPORT |LEADERSHIP       RSI Board of ...
1S                                                               TE                                                       ...
| RSI ANNUAL REPORT 2011RSI INDUSTRY COMMITTEES    Providing a unified, collaborative voice for suppliers        The direc...
| SUPPORT |                                                                                        Our committees         ...
| RSI ANNUAL REPORT 2011RSI INDUSTRY COMMITTEES                                                           COMMITTEE ON TAN...
| RSI ANNUAL REPORT 2011RSI INDUSTRY COMMITTEES                                                           COMMITTEE ON TAN...
| SUPPORT |                                 The value of RSI committees                                 ONE OF THE REASONS...
| RSI ANNUAL REPORT 2011                                                     | SUPPORT |TANK CARS               RSI:	Leadi...
Providing Solutions                                                               for over 40 YearsProblem:               ...
| RSI ANNUAL REPORT 2011RSI MEMBERSHIP     RSI members:     The strength of the     supply industry     RSI members encomp...
|	SUPPORT |	                                                                RSI	welcomes	new	members	in	2011              ...
| SUPPORT |RSI SCHOLARSHIP PROGRAM     RSI selects 2011/2012 award recipients               For more than 20 years, the RS...
| RSI ANNUAL REPORT 2011                                             | CONNECTION | CONFERENCES AND EVENTS                ...
| RSI ANNUAL REPORT 2011CONFERENCES AND EVENTS      President Boardman also revealed the compa-         pliers in Illinois...
“The event was WONDERFUL, we met so many great potential    customers, and the organization was second to none. I look for...
| RSI ANNUAL REPORT 2011CONFERENCES AND EVENTS      Upcoming events      Railroad Day on Capitol Hill      March 8, 2012 |...
“It was an exciting and useful show for our companies, and we appreciate           all the hard work and dedicated effort ...
| RSI ANNUAL REPORT 2011RSI WORK IN WASHINGTON     “We must remain vigilant on all fronts”          RSI follows a wide arr...
|	ADVOCACY |	                                                          funding levels and the length of the reauthorizatio...
| RSI ANNUAL REPORT 2011                                                        | ADVOCACY |BOB CLEMENT REPORTS           ...
Why can’t a                                                              locomotive be                                    ...
| RSI ANNUAL REPORT 2011ADVOCACY EFFORTS                                                                 RSI lobbyist Bob ...
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
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  1. 1. Annual Report 2011
  2. 2. RSI ANNUAL REPORT 2011 TABLE OF CONTENTS SUPPORT 2 About RSI 2 Chairman’s message 4 RSI leadership 6 RSI industry committees 8 Tank car update 12 RSI membership 14 Scholarship program 16 CONNECTION 17 Conferences and events 17 ADVOCACY 22 RSI work in Washington 22 Bob Clement reports 24 Advocacy efforts 26 Operation Lifesaver 28 Coalition building 30 Membership directory 31 Advertising index 44Published for RSI bySimmons-Boardman PublishingCorporation,345 Hudson Street, 12th Floor,New York, NY 10014.Design by Wendy Williams.Cover photo bySteve Schmollinger.Photo, this page, by Bruce Kelly.RSI ANNUAL REPORT 2011 1
  3. 3. | RSI ANNUAL REPORT 2011 | SUPPORT |ABOUT RSI We are your voice in Washington The Railway Supply Institute acts on behalf Connection…Railway suppliers are connected of the largest and smallest suppliers to North and strengthened by RSI. RSI members meet American freight and passenger railroads and and do business with freight and passenger their employees. As the only all-inclusive trade railroads and other suppliers at annual confer- association for the entire rail supply industry, ences, trade shows, and industry events. We are RSI represents a diverse group involved in the the center of the industry network, helping to manufacture of products and services in the make contacts for our members with key play- freight car, locomotive, maintenance-of-way, ers in the companies that work in the rail and communications and signaling, leasing, and rail supply industries. passenger rail industries. Advocacy…RSI is your voice in Washington. RSI connects members to their customers and RSI has a presence on Capitol Hill and among partners, supports industry improvements, the regulatory agencies that write the rules for assists members in the global marketplace, and the rail industry. RSI continually advocates safe, represents the industry during the regulatory sensible, and efficient solutions that work for and legislative process. rail, suppliers, and the people who depend on us to move their goods. RSI aids members in Support…Railway supplier support is important communicating their interests to legislators, to the railroad industry. RSI manages seven regulators, and other industry stakeholders. industry committees on such critical issues as the safe transportation of hazardous materials, grade crossing safety, and technical standards. Our committees help members collaborate and bruce kelly resolve the technical, legislative, and regulatory issues unique to the rail supply industry.2 RSI ANNUAL REPORT 2011
  4. 4. RIDE ON OUR REPUTATIONMaintenance of Way Equipment and Services that exceed the Speed, Performance,and Reliability standards of railways worldwide.For over 55 years Loram Maintenance of Way, Inc. has built a reputation as being a world classprovider of maintenance of way services and equipment including: mainline rail grinding, specialtygrinding, shoulder ballast cleaning, production undercutting, spot undercutting, vacuum excavation,ditch cleaning and rail handling. Loram’s record of providing superior maintenance of way services ina safe, timely and reliable manner has earned Loram the designation of being the Invisible Contractor.To learn more about how Loram Maintenance of Way, Inc. can help maintain your right of way, visitwww.loram.com. Loram Maintenance of Way, Inc. Hamel, Minnesota 55340 USA (800) 328-1466 • Fax (763) 478-2221 www.loram.com
  5. 5. | RSI ANNUAL REPORT 2011 | SUPPORT |CHAIRMAN’S MESSAGE Dear RSI Members and Friends: The Railway Supply Institute had an extraordinary 2011. RSI delivered on its mission to connect members to their customers and partners, support the improvement of the industry, and advocate for the industry during the regulatory and legislative process. In September, nearly 9,000 railroaders and railway suppliers descended on Minneapolis for Railway Interchange 2011. Of those in attendance, 3,000 were there for RSI and the Coordinated Mechanical Associations (CMA) tech- nical sessions. The show exceeded expectations. RSI, along with Railway Engineering-Maintenance Suppliers Association (REMSA) and Railway Sys- tems Suppliers, Inc. (RSSI), quickly sold out exhibit space in the Minneapolis Convention Center and Canadian Pacific’s Humboldt Yard. Minneapolis was the culmination of a two-year planning process, and my congratulations to the staffs of RSI, REMSA, RSSI, and American Railway Engineering and Maintenance-of-Way Association (AREMA) for making the show a success. As a full-service trade association, RSI does more than host trade shows. Our program committees act as an integral part of our mission to serve railway suppliers: They bring our members together to discuss issues of inter- RSI Chairman est and connect with railroads and state and federal governments. They also Gregory P. span a wide array of interests across the supply industry. For example, our Vogelman, Committee on Tank Cars leads the industry in tank car safety and security issues, while the State Tax Committee works diligently to curb onerous taxes GE Rail Services placed on freight cars by various state legislatures. And in addition to working with the Association of American Railroads on freight car design issues, the American Railway Car Institute (ARCI) committee supplies quarterly freight car order and delivery data to Wall Street analysts and government officials. I urge you to take a careful look at RSI’s industry committees and see where your company might benefit from joining. While the new Congress has challenged RSI, it has not hindered our progress. Our government relations team, Nicole Brewin and the Honorable Bob Clement, is well known on Capitol Hill as the voice of the rail supply industry. Supported by our members, coalitions, and industry partners, RSI continues to promote supplier issues by introducing RSI to new members of Congress, meeting with committee leadership, and testifying at committee hearings. The year also brought new opportunities for RSI’s advocacy team. I had the privilege of join- ing the RSI staff and fellow board members in a White House meeting with the Administration’s Domestic Policy Team—the first meeting of its kind. After passing through White House security, we had an hour-long meeting with Administration representatives, discussing the importance of the supply industry for jobs and issues facing RSI members and their customers. As I look forward to 2012, I see more opportunities for RSI and our membership. We’re returning to Chicago for RSI/CMA 2012 and will hold Railway Interchange 2013 the following year in India- napolis. An election year, 2012 will bring a new Congress that needs to hear from us. RSI will ask you to participate in the political process. You see, Congress can give and Congress can take away, thus your participation is needed to speak out on what harms and helps our industry. When RSI asks for your help, I urge you to give it for the benefit of yourselves and your customers. While my term is ending, I know that RSI will continue to effectively represent the rail sup- ply industry. The RSI board, with the dedicated leadership team of Mike Mitrovich, Rob Mat- thews, and Fred Sasser, will continue to promote our organization and its diverse membership. I thank them for their support and encouragement throughout 2011. Special thanks to the RSI staff of Tom Simpson, Nicole Brewin, Robyn Leach, and Amanda Patrick. They do an amazing job and deserve our sincere gratitude. Most important, thanks to our 276 members who help make RSI the voice of the supply industry.4 RSI ANNUAL REPORT 2011
  6. 6. Virtually“EVErything But thE Box ” TM Your single link to all undercarriage components for heavy haul service.Freight Car Parts Locomotive Parts• Friction Castings (ASF & Barber) • AAR Yokes • Locomotive Wheels• Control Springs (ASF & Barber) • Knuckles • Locomotive Roller Bearings• Column Wear Plates (ASF & Barber) • Carrier Basket Springs • Locomotive Springs• Truck Side Frames • New Cushioning Units • New Locomotive Draft Gears (70ton, 100ton, 125ton) • Reconditioned Cushioning Units • Reconditioned Locomotive• Truck Bolsters • Braking Components Draft Gears (70ton, 100ton, 125ton) - Hand Brakes • Locomotive Axles• Constant Contact Side Bearings - Slack Adjusters• Cast Draft Sills (Coal & Grain Cars) - Empty/Load Devices - Truck Mounted Brakes• AAR D-Series Load Coils IONX Asset Monitoring - Brake Cylinders• Low Profile Center Plates - Truck Mounted Brake Rigging • GPS and condition-based tracking• M901E/G Draft Gears and monitoring • Wear Prevention Components• Adapter Steering Pad Systems (M976) - Coupler Carriers and Wear Plates• Freight Car Axles - Brake Beam Guides• Railway Wheels - Brake Rod and Bracket Protectors• Tapered Roller Bearings - Center Bowl Wear Liner - Center Bowl Horizontal Liners• AAR Couplers - Rear Yoke Support © 2012 Amsted Rail Company, Inc.311 South Wacker | Suite 5300 | Chicago, IL 60606 | +1 312 922 4501 | AmstedRail.com
  7. 7. | RSI ANNUAL REPORT 2011 | SUPPORT |LEADERSHIP RSI Board of Directors Being part of the Railway Supply Institute Officers Board of Directors can be a difficult and Chair Gregory P. Vogelman, GE Rail Services rewarding assignment. The industry is diverse and the needs of an association are many. Vice Chair Michael J. Mitrovich, There are always challenges as well as the MPL Technology Inc. need for forward thinking and leadership— whether it is tackling a joint trade show or a Secretary/Treasurer Robert Matthews, new dues structure. The RSI Board shares in Stella-Jones Inc. the responsibility of moving the association forward by developing strategies, overseeing Directors events, and coming together to manage finan- Thomas F. DeJoseph, cial and policy issues. Loram Maintenance of Way Inc. Board members make up small and large Michael Foxx, Strato, Inc. companies involved in the manufacture of products and services in the freight car, loco- Brian Hawkins, Amsted Rail motive, maintenance-of-way, communications Terrence G. Heidkamp, GATX Corporation and signaling, and passenger rail industries. James R. Higginbottom, Not only do RSI Board members come from The Okonite Company different supply disciplines, they also enhance the Board with their talents, experiences, Michael K. Ogden, and resources. It is under the direction of the Morton Manufacturing Company Board of Directors and with the support of the Fred R. Sasser, membership that RSI continues to be a suc- Chicago Freight Car Leasing Company cessful trade association, representative of the industry it promotes. Jeff Stearns, Wabtec Corporation Edward J. Whalen, FreightCar America, Inc. Honorary Director Robert J. Pokorski, Miner Enterprises REMSA Representative Phil Homan, Loram Maintenance of Way, Inc. RSSI Representative Thomas J. Ulrich, Arthur N. Ulrich Company Staff President Thomas D. Simpson The staff of the Railway Supply Institute is a simpson@rsiweb.org dedicated, professional, and knowledgeable Assistant Vice President Nicole B. Brewin team, eager to serve the rail supply industry in all brewin@rsiweb.org aspects of association management. Guided by the RSI mission of supporting, connecting, and Office Manager Robyn M. Leach advocating for its membership, the staff promotes leach@rsiweb.org the industry through government relations work, Membership & Marketing Amanda T. Patrick hosting trade shows and marketing events, and patrick@rsiweb.org creating a forum for industry collaboration. Railway Supply Institute, Inc. 425 Third Street, SW, Suite 920 Washington, D.C. 20024 (p) 202-347-4664 • (f) 202-347-0047 www.rsiweb.org6 RSI ANNUAL REPORT 2011
  8. 8. 1S TE NO BOR P W AT OF E FE CR RI OS NG SI NG S STELLA-JONES’ NETWORK MEETING YOUR DEMANDSTRENGTHRELIABILITY TREATED RAILROAD PRODUCTS AND SERVICES CREOSOTE WITH 1 STEP BORATE TREATED TIES • Dependable and economical • Long lasting life performance with less maintenance GUARANTEED QUALITY SERVICE AND DELIVERY • 18 pressure treating plants serving North America • Proprietary coal tar distillation operations THE ONE-STOP ALTERNATIVE INCLUDING VALUE-ADDED SUPPLY CHAIN SERVICES • Crosstie pre-plating ensuring precise finished products • Bridge crossings, pilings and poles poles timbers, crossings, pilings and • Responsible environmental recycling and disposal 1 800 272-8437 www.stella-jones.com
  9. 9. | RSI ANNUAL REPORT 2011RSI INDUSTRY COMMITTEES Providing a unified, collaborative voice for suppliers The direction of RSI’s policy goals are determined AMERICAN RAILWAY CAR INSTITUTE Chair: Martin Graham, Trinity Rail Group, LLC by the work and collaboration of its industry com- mittees, which support the different disciplines and The American Railway Car Institute (ARCI) has represented the North American freight car build- issues of the supply industry. Consisting of RSI ing industry for more than 75 years. Membership consists of major North American freight car member companies, the committees provide an manufacturers and works in conjunction with the opportunity for member involvement and support, Association of American Railroads (AAR) on freight car design standards. In addition, the ARCI tabu- and advance railway supply industry goals in the lates and reports North American freight car statis- public and private sectors. tics and represents the specific interests of railcar builders in legislative and regulatory matters. In addition, ARCI’s Engineering and Design Sub- committee meets several times a year to address freight car design and safety issues. The ARCI quarterly freight car statistics are used as a barometer on the state of the railway supply industry. They are used by organizations such as the Bloomberg news and Federal Reserve Board, plus financial analysts, component suppliers, and others who follow the freight car building industry.8 RSI ANNUAL REPORT 2011
  10. 10. | SUPPORT | Our committees provide members with an opportunity to get involved by supporting and advancing railway supply industry goals in both the public and private sectors.ARCI AffILIATE MEMbERShIp QUALITY ASSURANCE COMMITTEEThough membership on the ARCI committee isrestricted to North American freight car builders, The Quality Assurance Committee (QAC) is ananyone can become an affiliate member. Typical advocate for quality and continuous improvementaffiliate members are component suppliers for the in the performance and safety of the rail supplyfreight car industry, leasing companies, and finan- industry’s products and services. The QAC workscial institutions. Affiliate members receive quar- closely with the AAR Quality Committee to ensureterly freight car statistics and have an opportunity that member companies receive the informationto be on the Engineering & Design Subcommittee. they need to implement superior quality programs and meet the challenges of today’s marketplace.EQUIpMENT LEASING COMMITTEE Over the years, working with the AAR Quality Com-Chair: John Kieras, Union Tank Car Company mittee, QAC has sponsored training programs for suppliers who are new to the industry or needThe Equipment Leasing Committee is composed of refresher courses on key quality issues.representatives from prominent freight car leasingcompanies. Its primary responsibility is to evaluate STANDARD COUpLERand guide RSI in key regulatory and public policy MANUfACTURERS COMMITTEEissues affecting the leasing industry, which often Chair: Patrick S. Wallace, Trinity Rail Groupinvolve railroad service relations issues. In addition,the committee responds to AAR circular letters and This committee promotes AAR standard couplerother railroad proposals that affect private car own- technology worldwide and meets periodically toers. RSI member companies own and provide for discuss the technical matters confronting standardlease more than 700,000 railroad freight cars. coupler manufacturers. The committee also works with the rail industry to develop coupler standards that reflect the latest in technology and foundry bruce kelly practices. This committee is restricted to compa- nies that produce standard AAR couplers.RSI ANNUAL REPORT 2011 9
  11. 11. | RSI ANNUAL REPORT 2011RSI INDUSTRY COMMITTEES COMMITTEE ON TANK CARS Chair: Joseph Lattanzio, GE Rail Car Services The Committee for Tank Cars (RSICTC) addresses issues of importance to tank car builders and owners, and regularly reviews tank car requirements through its member- ship in the AAR Tank Car Committee. RSICTC is at the forefront of the latest research to improve tank car safety, and represents tank car manufacturers in federal, legislative, and regulatory matters. The Engineering/Technical Subcommittee oversees the RSI/AAR tank car safety research project and meets quarterly with the AAR Com- mittee on Tank Cars to discuss tank car secu- rity, packaging, and operational issues. RSICTC publications can be found on the RSI website at www.rsiweb.org/rsicommittees_tc.html. Membership to this committee is restricted to companies engaged in the design, manufac- ture, ownership, or leasing of railroad tank cars. STATE TAXATION COMMITTEE WASHINGTON AFFAIRS COMMITTEE Chair: Robert Shank, Chair: John Paljug, Greenbrier Manufacturing Safetran Systems Corporation Chair: Thomas J. Gillespie, Jr., The State Taxation Committee, consisting ALSTOM Transportation, Inc. of companies that own and lease railroad freight cars, monitors and acts on state legisla- The Washington Affairs Committee (WAC) tive and regulatory issues that affect the taxa- is open to all members with an emphasis tion of privately owned freight cars. Over the on member companies in the communica- years, it is estimated that the committee has tion and signaling, maintenance-of-way, and saved private car owners several million dol- passenger industries. Legislative issues of lars in excess taxation. interest include: supporting the Section 130 highway-rail grade crossing program; sup- porting railroads in securing tax incentives to increase capacity; securing federal investment for positive train control and high speed rail; supporting Amtrak’s legislative goals; support- ing the Class I railroads efforts opposed to re- regulation; and lobbying against bigger trucks. In addition, the committee works closely with Operation Lifesaver to reduce the deaths and injuries at highway-rail grade crossings and along railroad rights-of-way through public education programs.10 RSI ANNUAL REPORT 2011
  12. 12. | RSI ANNUAL REPORT 2011RSI INDUSTRY COMMITTEES COMMITTEE ON TANK CARS Chair: Joseph Lattanzio, GE Rail Car Services The Committee for Tank Cars (RSICTC) addresses issues of importance to tank car builders and owners, and regularly reviews tank car requirements through its member- ship in the AAR Tank Car Committee. RSICTC is at the forefront of the latest research to improve tank car safety, and represents tank car manufacturers in federal, legislative, and regulatory matters. The Engineering/Technical Subcommittee oversees the RSI/AAR tank car safety research project and meets quarterly with the AAR Com- mittee on Tank Cars to discuss tank car secu- rity, packaging, and operational issues. RSICTC publications can be found on the RSI website at www.rsiweb.org/rsicommittees_tc.html. Membership to this committee is restricted to companies engaged in the design, manufac- ture, ownership, or leasing of railroad tank cars. STATE TAXATION COMMITTEE WASHINGTON AFFAIRS COMMITTEE Chair: Robert Shank, Chair: John Paljug, Greenbrier Manufacturing Safetran Systems Corporation Chair: Thomas J. Gillespie, Jr., The State Taxation Committee, consisting ALSTOM Transportation, Inc. of companies that own and lease railroad freight cars, monitors and acts on state legisla- The Washington Affairs Committee (WAC) tive and regulatory issues that affect the taxa- is open to all members with an emphasis tion of privately owned freight cars. Over the on member companies in the communica- years, it is estimated that the committee has tion and signaling, maintenance-of-way, and saved private car owners several million dol- passenger industries. Legislative issues of lars in excess taxation. interest include: supporting the Section 130 highway-rail grade crossing program; sup- porting railroads in securing tax incentives to increase capacity; securing federal investment for positive train control and high speed rail; supporting Amtrak’s legislative goals; support- ing the Class I railroads efforts opposed to re- regulation; and lobbying against bigger trucks. In addition, the committee works closely with Operation Lifesaver to reduce the deaths and injuries at highway-rail grade crossings and along railroad rights-of-way through public education programs.10 RSI ANNUAL REPORT 2011
  13. 13. | SUPPORT | The value of RSI committees ONE OF THE REASONS CHICAGO FREIGHT CAR LEASING Company belongs to RSI is because of its member-driven industry committees. Currently, my company participates in the State Taxa- tion Committee and the Equipment Leasing Committee.  The State Taxation Committee represents the interests of 11 RSI com- panies that own and lease freight cars. At last count, our companies lease more than 700,000 freight cars combined. The companies meet periodically to compare notes and collaborate on ways to defeat oner- ous state taxes that hinder investment. We also develop strategies to entice states to enact tax credits for freight car repairs. The State Taxation Committee has saved the industry millions of dollars in state taxes—money that can be reinvested into our fleets, thus benefiting component suppliers as well. We also participate in the Equipment Leasing Committee, which com- prises the leadership of leasing companies. I have had the privilege of chairing this committee and, in that capacity, testified before Con- gress during the debate surrounding the termination of the Interstate Commerce Commission.  Because of the work of the Equipment Leasing Committee, key por- tions of the Interstate Commerce Act were preserved when the Sur- face Transportation Board (STB) was created. As an added benefit, the committee visits Washington, D.C., annually to brief STB mem- by fred Sasser, bers on our issues. Access to these decision makers is a benefit that Chair of Chicago freight only RSI can provide. Car Leasing Company, RSI board Member, Currently, my company doesn’t participate on other committees, but I 2012 RSI Secretary am aware of their benefits and how they represent our diverse indus- Treasurer try. Every quarter, we look forward to receiving the American Railway Car Institute’s freight car order and delivery reports to see how the both photos: union pacific industry is faring. We also recognize the role the Committee on Tank Cars plays in moving hazardous materials safely. As a member of the RSI Board of Directors and as a newly elected Secretary Treasurer, I see the role that RSI’s committees play in our industry—a role that enhances our influence and makes our industry stronger. I encourage all of you to take a look at the RSI committees and see where your company would benefit from participation.RSI ANNUAL REPORT 2011 11
  14. 14. | RSI ANNUAL REPORT 2011 | SUPPORT |TANK CARS RSI: Leading the way in safety and security The RSI Committee on Tank Cars (RSICTC) con- operating improvements that could lead to the tinues to lead the effort to eliminate risk in the safer transport of both crude oil and ethanol. movement of hazardous materials by rail. The Participants include representatives from AAR, RSICTC also continues to support the Advanced American Petroleum Institute, Growth Energy, Tank Car Collaborative Research Program, a Renewable Fuels Association, individual ship- joint project with the Federal Railroad Admin- pers, FRA, and Transport Canada. Task forces istration (FRA), Department of Homeland Secu- met frequently during second-half 2011, and it rity, Transport Canada, Association of American was anticipated that recommendations would Railroads (AAR), American Chemistry Council, be forthcoming by that year’s end. Chlorine Institute, and Fertilizer Institute. The Program is researching ways to improve the In addition to the above, RSICTC continues safety and security of tank cars that transport to participate in the RSI/AAR Tank Car Safety highly toxic chemicals. It is expected that this Research Project, which funds research and work will result in a leading-edge tank car, collects and evaluates information on tank cars which will be specified in the U.S. Department damaged in derailments. Since its inception, the of Transportation and Canadian regulations. Project has collected data on more than 40,000 damaged tank cars. This information has been In May 2011, FRA asked RSICTC to develop a used by the industry to develop improved tank tank car, with enhanced crashworthiness, for car features that have contributed to the ongo- transporting crude oil. The FRA is anticipat- ing, outstanding record of transporting hazard- ing that a large number of these cars will be ous commodities by rail. required for unit trains transporting oil from bruce kelly Canada and the U.S. Bakken Shale fields to — By William Finn, Vice Chair, RSI Committee Texas for refining. RSICTC took the lead, bring- on Tank Cars, and RSI Consultant ing together a coalition of parties to address both tank car design enhancements and railroad 12 RSI ANNUAL REPORT 2011
  15. 15. Providing Solutions for over 40 YearsProblem: We “Exceed the Need” - be it on ourReplacing cracked and standard 24-hour turnaround onbroken pipes is an expensive service and delivery or working withand difficult repair requiring our customers to design and engineercars to be shopped. solutions for rail and transit cars. Our in house technical capabilities, which include talented staff, real life lab simulation and testing facilities, allow us to offer collaborative engineering to meet your needs. We have the largest line of hose, hose related products, weld and pipe fittings, pipe clamps and castings for tank cars, trucks, draft systems and end of car arrangements.Solution: Ask us about our solutions forReplace your rigid pipe applications with AAR-M618hose assemblies. • Longer life products• Repair at location, safer and at half the cost. • More reliable casting• Quick and easy to install • Hose uncoupling• No cutting, bending, welding or heat relieving • Draft systems issues• Kits can be developed for Reservoir Pipes, Retainer Pipes, and Branch Pipes – shipped in 24 hours! • End of Car • Lower Cost Repairs “Celebrating our 40th Year in 2012” 100 New England Avenue Piscataway, NJ 08854Customer Service: (800) 792-0500 Fax: (800) 378-7286
  16. 16. | RSI ANNUAL REPORT 2011RSI MEMBERSHIP RSI members: The strength of the supply industry RSI members encompass a large segment of the U.S. economy, providing jobs for communities and innovation for railroads. At RSI, we work to pro- mote the rail supply industry and advocate on its behalf to enhance our nation’s infrastructure. We serve our membership and our industry by encouraging participation: RSI hosts trade shows and marketing events; manages industry proj- ect committees; and creates opportunities for members to meet with elected officials and other decision-makers. With better communication and outreach to customers, those on Capitol Hill, and you, RSI effectively addresses member needs. Segment of membership Number of RSI members About our membership Communications & signaling 26 A year of growth, 2011 brought more than 70 new Freight car / locomotive repair 23 members to RSI. More than 90% of 2010 members Freight car component parts 74 were retained. With 270-plus member companies Freight car leasing 13 located in 45 states and several countries, includ- Freight car manufacturer 7 ing Canada, Mexico, China, and Italy, RSI is com- Locomotive manufacturers / component parts 78 mitted to retaining current members and acquiring Maintenance-of-way 13 new ones. Passenger manufacturer / component parts 15 Trade association 5 Members represent a large base of big and small Industry publications / press 4 rail supply companies, which offer products and Banks / financial institutions 7 services in the freight car, locomotive, leasing, Other rail related 22 maintenance-of-way, communications and signal- * Note: Data taken from primary business section of 2011 RSI ing, and passenger rail industries (chart, right). membership forms. Some members represent more than one segment of the industry. Summary of top railway supply states State Illinois Pennsylvania New York Texas Ohio Number of companies 137 100 70 59 56 Number of facilities 166 122 84 91 62 Number of employees 19,600 27,700 7,500 8,600 7,500 Total sales (millions) $8,300 $7,100 $1,900 $1,700 $800 * Note: TOTAL does not equal the sum of the number of companies due to companies having locations in multiple states.14 RSI ANNUAL REPORT 2011
  17. 17. | SUPPORT | RSI welcomes new members in 2011 American Traction Systems LeJeune Bolt Company Amglo Kemlite Laboratories LPI, Inc. Atlas Copco Compressors MAHLE Behr Industry America LP Battelle Memorial Institute McSweeney’s Inc. BBM - Officine Meccaniche SPA Meadoweld Machine Top railway supply states Beena Vision System Inc. Buckeye Mountain Mersen USA Bn Corp. (formerly Carbone of America) Byrd Brothers Emergency Mile Rail, LLC RSI study supports link between a healthy freight Services LLC Miller Felpax Corporation and passenger rail network and domestic rail sup- Capital Engineering & Mobile Hydraulic Equipment ply manufacturing jobs Manufacturing Company Company Cerion Energy Inc. N.E. Bridge Corp. Citel Inc. Norgren One role of an association is to collect relevant data Consulate General of Brazil in Ohio Crankshaft Forged & from its members and compile it to provide infor- Chicago Machined Products mation about the industry it represents. In 2011, Consultants F. Drapeau Inc. Orr Safety Corporation RSI published a summary of states with the largest Curry Supply Co. Ozark Mountain Railcar concentration of railway supply companies in terms Custom Engineering Company Patel Brass Works Pvt. Ltd. D.A.S. Rail Enterprises LLC Pennsy Corp. of facilities, employees, and sales. Delta Manufacturing PowerRail Distribution Inc. Diesel Locomotive Co. Protran1 Compiled using survey data gathered from RSI Drivetrain USA, Inc. QinetiQ North America members and other public and proprietary sources, Ductile Iron Society Quality Turbocharger the report revealed the width and breadth of the DuPont Industrial Coatings Components supply industry. In 11 states alone, RSI estimates ECE Global Railroad Passenger Rail Alliance Ecofab Covers International Reidler Decal Corporation that 650-plus companies operate more than 800 Enerpro, Inc. Relay Systems of America facilities, support nearly 90,000 employees, and pro- FastSings - Glendale RJ Corman Railroad Group duce nearly $23 billion in revenues (chart, bottom). Frontier Steel Company Rocore Geislinger Corporation Saw Mill Capital “RSI has long maintained that there is a clear link Getex Corporation Schenck Process Group between continued investment in freight and passen- Global Finishing Solutions, LLC Seacole Global Rail Systems, Inc. Siemens Inc. ger rail, and sustainable, well-paying domestic rail- Hai’an Yaohua Safety Glass Co. SIMPACK US Inc. way supply manufacturing jobs. The data supports LTD Snap-On Industrial that contention,” said RSI President Tom Simpson. Harcon Corp. Spacecraft Components Hetronic USA Stanley Proto Industrial Tools The data was published from the top states in terms Hilliard Enterprises Inc. Starfire Engineering & of supply companies and facilities to show the HK Engine Components Technologies, Inc. Hydra-Tech International Corp. Sterling Rail Inc. impact this industry makes on the economy. But Industrial Maintenance & Sterne Agee there are railway supply companies and manufac- Engineering Corp. Super Steel, LLC turing facilities in nearly all the lower 48 states— Industrial Maintenance & Susquehanna Financial Group most small businesses—and all are dependent on Engineering Corporation TDG Transit Design Group the continued vibrancy of freight and passenger rail. International Electronic Machines Terresolve Technologies Ltd. J.W. Speaker Corporation TransPar Corp. Jackson International, Inc. DBA United Control Systems, Inc. The bottom line: Investing in rail will ensure Jaxon USSC LLC competitiveness, promote U.S. job creation, and Jefferies & Company, Inc. Visron Technical LLC improve the nation’s mobility. It should remain a top Kelso Technologies (USA) Inc. Wabash National priority for private investment and policy makers. Lean & Green Locomotive California Florida Missouri Georgia Indiana Virginia TOTAL 47 44 42 39 33 27 654 69 53 55 44 36 33 815 4,600 2,400 2,600 3,100 2,000 2,400 88,000 ulrich $700 $700 $900 $600 $100 $100 $22,900RSI ANNUAL REPORT 2011 15
  18. 18. | SUPPORT |RSI SCHOLARSHIP PROGRAM RSI selects 2011/2012 award recipients For more than 20 years, the RSI Scholarship Catrina Green – Northern Illinois University, Program has provided financial aid to exem- Elementary Education plary students pursuing bachelor or associate Kevin Li – Yale University, Chemical degrees. More than 100 students have received Engineering/Biochemistry an RSI scholarship, which has contributed Chelsea Morton – Barnard College, Psychology to their education in a variety of disciplines. Children of RSI and Coordinated Mechanical Thanks to the following member companies Association members are eligible to apply. that donated to the 2011/2012 RSI Scholarship Program. Because of their generous support, In 2011, the RSI Scholarship Committee se- the RSI Scholarship Committee was able to lected six students to receive academic scholar- award two additional $3,000 scholarships. ships of $3,000 each. Applicants were ranked by academic record, community service activi- • Amsted Rail ties, essay, and letters of recommendation. • Chicago Freight Car Leasing Company 2011/2012 RSI scholarship recipients • International Association of Railway Operating Officers Lauren Aamodt – Texas A&M University, Marketing • MAC Products Susanna Cai – Duke University, Engineering • Railinc Corporation Brittany Ford – Eastern Kentucky University, • Relay Systems of America Sociology Wabtec... Your Transportation Equipment & Service Provider - Adantech - Barber Brake Beam - Barber Spring - Bearward Engineering - Becorit - Brush Traction - Cardwell Westinghouse - CoFren - Durox - Fulmer Company - FIP Pty Ltd. - G & B Specialties - Microphor - MotivePower - Hunan CSR Wabtec Transportation Technology Company - Pioneer Friction - Poli - Railroad Friction Products Corporation - Ricon - Ricon Europe - Schaefer Equipment - Shenyang CNR Wabtec Railway Brake Technology Company - Standard Car Truck - Triangle Engineered Products - Swiger Coil Systems - Unifin - Vapor Bus International - Vapor Europe - Vapor Stone Rail Systems - Vapor Stone UK - WABCO Freight Car Products - WABCO Locomotive Products - Wabtec Australia - Wabtec China - Wabtec de Mexico - Wabtec Foundry - Wabtec Global Services - Wabtec Golden Bridge Transportation Technology Company - Wabtec Huaxia Technology Company - Wabtec Japan - Wabtec MZT - Wabtec Passenger Transit Wabtec Rail Limited - Wabtec Railway Electronics - Wabtec Rubber Products - Wabtec South Africa - Wabtec South America - Xorail - Young Touchstone - ZefTek R www.wabtec.com 412-825-100016 RSI ANNUAL REPORT 2011
  19. 19. | RSI ANNUAL REPORT 2011 | CONNECTION | CONFERENCES AND EVENTS With more than 300,000 square feet of exhibit space, Railway Interchange 2011 included 600-plus North American and international exhibitors and attracted some 9,000 attendees. Bringing together rail decision-makers In 2011, RSI offered several opportunities for members to interact with rail decision-makers and market their products to their customers. RSI events are centered around grassroots leg- islative efforts like Railroad Day on Capitol Hill, marketing and networking events such as Rail- way Interchange 2011, and important advocacy briefings exemplified by RSI’s meeting with Amtrak’s executive committee. Meeting with Amtrak’s Executive Committee RSI staff and representatives from 20 member “The RSI and Amtrak meeting companies participated in RSI’s annual meeting [pictured above] was informa- with Amtrak’s executive committee, including Amtrak President Joseph Boardman. The group tive and useful. It was a chance discussed the railroad’s health, its near- and to meet with the senior Amtrak long-term funding status, and its future procure- ment plans. Amtrak emphasized its consistent leadership team and gain service success throughout its 11 corridors, insights into the business and pointing to the company’s record ridership and revenue levels as it continues to compete favor- future plans.” ably with airlines across the country. —RSI board member Jeff Stearns, WabtecRSI ANNUAL REPORT 2011 17
  20. 20. | RSI ANNUAL REPORT 2011CONFERENCES AND EVENTS President Boardman also revealed the compa- pliers in Illinois, the delegation met with Sen. ny’s funding points totaling $25 billion over the Dick Durbin (D-Ill.) and Sen. Mark Kirk (R-Ill.) next 30 years. As Amtrak looks to expand its to discuss the affect rail investment has on services, it plans to purchase several thousand American jobs. Meetings also were held with cars and several hundred locomotives. House Transportation and Infrastructure Sub- committee Chairman Bill Shuster (R-Pa.), and Railroad Day on Capitol Hill 2011 the Subcommittee’s Ranking Member Corinne More than 500 rail industry employees met on Brown (D-Fla.). Capitol Hill to promote a pro-rail agenda in 285 Congressional offices. With a unified voice, RSI Annual Meeting lawmakers were advised that investment in At the Annual Members Meeting, held in con- the rail industry is an essential part of the junction with Railway Interchange 2011, RSI nation’s economic growth. This pro-jobs Board of Directors Chairman Greg Vogelman message struck a chord with many lawmakers welcomed attendees with his state of the scrambling to help provide jobs for out-of- association address in which he reflected on work Americans. RSI’s accomplishments in 2011 and projected an optimistic association outlook for 2012. More specifically, attendees reported to members of Congress on the following Following his speech, Vogelman announced exigent rail issues: rail re-regulation, truck three new directors to the RSI Board: TTX sizes and weights, short line tax credits, Company VP-Fleet Management Patrick J. grade crossing safety, and the continuance of Casey, Graham-White President and CEO Jim passenger rail funding. Together, they helped Frantz, and Invensys Rail Corporation President drive home the important role our industry John Paljug. Each will serve a three-year term. plays in restoring America’s economy and environment, while also connecting America Also announced were the 2012 RSI Board to the global marketplace. Officers: Mike Mitrovich of MPL Technology, Inc., Chairman; Robert K. Matthews of Stella- The RSI Board of Directors met with several Jones, Inc., Vice Chair; and Fred Sasser of legislators who are pivotal in making decisions Chicago Freight Car Leasing Company, affecting railway suppliers and their custom- Secretary/Treasurer. ers. Due to the large concentration of rail sup- RSI Railroad Day on the Hill delegation (from left): Senator Dick Durbin, RSI President Tom Simpson, Railway Age Publisher Robert P. DeMarco, Chicago Freight Car Leasing’s Fred Sasser, Stella- Jones’ Rob Matthews, Bob Clement, and Senator Mark Kirk.18 RSI ANNUAL REPORT 2011
  21. 21. “The event was WONDERFUL, we met so many great potential customers, and the organization was second to none. I look forward to attending other events in your industry.” - Deb Mills, Terresolve Technologies LTD Railway Interchange 2011 highlights For three days in September, Railway Interchange 2011 brought the rail supply industry together to display innovative products and advancing technologies as well as to make connections on a packed show floor. Railway Interchange 2011, hosted by RSI, American Railway Engineering and Maintenance-of- Way Association (AREMA), Railway Engineering-Maintenance Suppliers Association, and Railway Systems Suppliers, Inc., proved that a combined show could be a successful show. With ample opportunities to learn more about the trade at the technical sessions held by AREMA and the Coordinated Mechanical Associations, everyone could benefit. As the largest U.S. rail supply trade show in decades, Railway Interchange attracted nearly 9,000 attendees and more than 600 exhibitors to the show areas at the Minneapolis Convention Center and at CP’s Humboldt Yard. EXHIBITS – everywhere you looked, inside and out With more than 300,000 square feet of exhibit space, Railway Interchange 2011 had the rail industry covered. Every square foot was packed with innovative products, new technologies, and potential customers. • More than 600 domestic and international exhibitors • Mechanical, maintenance of way, communications and signaling, and passenger rail industries represented • Indoor exhibits in three halls at the Minneapolis Convention Center • 1.5 miles of outdoor exhibits at CP’s Humboldt Yard ATTENDANCE – a diverse and enthusiastic crowd Approximately 9,000 industry leaders and employees from around the world came to Minne- apolis for Railway Interchange 2011 to see the latest rail technology, learn from useful technicalRSI ANNUAL REPORT 2011 19
  22. 22. | RSI ANNUAL REPORT 2011CONFERENCES AND EVENTS Upcoming events Railroad Day on Capitol Hill March 8, 2012 | Washington, D.C. Join RSI as the rail industry gath- ers to promote the rail industry in a unified voice to educate members of Congress on legisla- tion that will improve our indus- try. The day starts with an early morning briefing on important legislative issues, is followed by whirlwind meetings with elected officials and their staff members, and concludes with a gala recep- tion and dinner. Other event sponsors include the Association of American Railroads and Amer- programs, and take advantage of numerous opportunities to meet ican Short Line and Regional customers and colleagues alike. The enthusiasm for the innovation Railroad Association. and collaboration on display further demonstrated the strength of the rail supply industry. RSI/Amtrak Roundtable Railway Interchange was a global event. Our international attendees Meeting Spring 2012 were pleased with the quality of the exhibits, technical programs, Amtrak Headquarters | and ample opportunities to network. More than 1,100 international Washington, D.C. attendees represented 39 countries, including Australia, Brazil, China, Germany, India, Mexico, Russia, and South Africa. Join RSI for its fifth annual roundtable meeting with Amtrak’s executive committee to PROGRAMS – leading-edge industry presentations discuss the status of the passen- Due to a more robust format this year, show attendees could ger railroad, its funding situation, participate in presentations from the Coordinated Mechanical Asso- and its future plans. This meeting ciations (Air Brake Association, International Association of Railway is yet to be scheduled. Atten- Operating Officers, Locomotive Maintenance Officers Association, dance is limited to those compa- and Mechanical Association Railcar Technical Services) and AREMA. nies that belong to RSI. Industry trailblazers spoke about a broad range of topics: engineering; IT; economic issues; structures; passenger and transit; maintenance; RSI/CMA 2012 communications and signaling; and cutting-edge safety technologies. September 22-25, 2012 Presenters included: Sheraton Chicago Hotel & • BNSF and Canadian National speakers discussed benefits and chal- Towers | Chicago, IL lenges of Automated Single Car Test Devices at the ABA seminars. • Mike Jones of the Federal Railroad Administration gave details on the This exhibition is being hosted Cab Technology Integration Laboratory, which aims to assess safety by RSI with technical sessions aspects of cab control/display technology and human performance. presented by the Coordinated • Dave Ward of Siemens and Bill Durham of Amtrak delivered a pre- Mechanical Associations (CMA). sentation on Efficiency and Mechanical Aspects of the New Amtrak RSI/CMA 2012 will feature more Electric Locomotive. than 100 exhibits and presenta- • Bob Toms of Union Tank Car Company highlighted Research & continued on page 21 Development Efforts for Tank and Other Cars.20 RSI ANNUAL REPORT 2011
  23. 23. “It was an exciting and useful show for our companies, and we appreciate all the hard work and dedicated effort of the RSI team!” - Marise Stewart, ElectroMotive Diesel l Progress Rail Services tions by the Air Brake Association, International Association of Rail- way Operating Officers, Locomo- SURVEY SAYS – exhibitors and attendees weigh in tive Maintenance Officers Associa- Exhibitors and attendees had much to say about Railway Inter- tion, and Mechanical Association change 2011, whether it was about exhibiting on the show floor or Railcar Technical Services. attending the technical sessions. Overall, exhibitors and attendees gave the show high marks, and many commented on the high Special events, such as a welcome number of contacts they made. reception and lunches on the show floor, will provide an oppor- “I’ve done more of these shows than I care to admit to and this was tunity to build up your network of the best one we’ve ever attended. The hall was well laid out—there customers and colleagues, and was a general air of excitement and traffic.” see groundbreaking rail technolo- - Tamara Hart, Aero Transportation Products gies on the exhibit floor. The CMA technical sessions will not only “From my perspective I believe the Minneapolis show was a allow attendees to hear industry great success.“ innovators and interesting presen- - Ted Hagemo, Secretary/Treasurer, IAROO tations, it will bring in railroad cus- tomers and provide an opportu- “We found the turnout was exceptional, and we were busy every nity to collaborate with colleagues minute that we were at the show! From a sales and marketing and sharpen technical skills. perspective, it was fantastic! We came away with solid leads and sales. “ - Walter Hughes, RCC Fabricators Railway Interchange 2013 September 29- October 2, 2013 “Always a good show, but I thought this year was possibly the best Indiana Convention Center | in many years. I attended a few of the LMOA presentations (wish I Indianapolis, IN had time for more) and always appreciate the effort that goes into them along with the information given.” Preparations are under way for - Patrick Roach, Interstate Diesel Service, Inc. what is sure to be another suc- cessful joint trade show and tech- nical conference at Railway Inter- change/2013. Sponsored by RSI, Railway Engineering-Maintenance Suppliers Association, and Rail- way Systems Suppliers, Inc., Railway Interchange 2013 will be three trade shows in one and feature hundreds of exhibits from domestic and international rail suppliers. With a wide array of technical programs hosted by American Railway Engineering and Maintenance-of-Way Association and the Coordinated Mechanical Associations, everyone will have something to gain. The Railway Interchange indoor ceremony included (from the left): David Soule, REMSA; Phil Homan, REMSA; Steve Bolte, RSSI; Greg Vogelman, RSI; and Wick Moorman, Norfolk Southern CEO.RSI ANNUAL REPORT 2011 21
  24. 24. | RSI ANNUAL REPORT 2011RSI WORK IN WASHINGTON “We must remain vigilant on all fronts” RSI follows a wide array of legislative issues, the preceding authorization legislation. Finally, ranging from Surface Transportation Board if Congress cannot agree on either policy or Reauthorization to Department of Transporta- spending levels, extensions and continuing res- tion Appropriations. It is important to know that olutions come into play. The federal government there are often two separate tracks for legisla- often operates under a “Continuing Resolution, ” tion that affect the railway supply industry, and an amalgam of policy and spending decisions understanding the differences between them is meant to appease the House of Representatives, crucial. In Congress, authorized committees set the Senate, and the White House. In any case, federal policy and spending limits for federal mischief can ensue, so RSI must remain vigilant programs. The appropriation committees then on all fronts. set specific federal spending levels for any giv- en fiscal year. Theoretically, approving legisla- Taking these considerations into account, RSI tion should precede the appropriations process. has been tracking and advocating for the To complicate matters, Congress can (and does) following legislation and policies: pass appropriation legislation without enacting22 RSI ANNUAL REPORT 2011
  25. 25. | ADVOCACY | funding levels and the length of the reauthorization. RSI continues to advocate for maximum levels of federal funding, which would benefit the commuter railroads and transit agencies that operate light rail systems. In the past, funding levels for those rail- roads have totaled several billion dollars. SAFETEA- LU has been extended several times by Congress to allow for continued funding of federal transportation programs. In late 2011, Congress appeared ready to consider full reauthorization. Truck sizes and weights. SAFETEA-LU also is a vehicle that could be used to increase truck sizes and weights. RSI continues to ask Congress to vote against any increase. Studies have shown that 97,000-pound trucks would lead to an overall freight diversion from railroads to trucks, in the magnitude of 17% for short line railroads and 19% for Class I railroads. In addition, other studies consistently show that trucks do not pay their fair share for the damage they cause to public infrastructure. RSI sup- ports H.R. 1575 and S. 876 legislation (introduced in the House and Senate, respectively) that would cap the length of single truck trailers, freeze the weight of trucks using the 160,000-mile National Highway System (NHS), and extend the freeze on double- and triple-trailer trucks to the entire NHS. Section 130 Highway Rail Grade Crossing Pro- gram. SAFETEA-LU also contains specific funding for the Section 130 Highway Rail Grade Crossing Safety Program. Reauthorization of this important program is in jeopardy as Congress looks to stream- line or eliminate federal transportation programs. RSI supports H.R. 825 and S. 918 legislation thatSurface Transportation Board reauthorization. would authorize $220 million from the highway trustThe Senate Commerce Committee is considering S. fund to continue to fund the Section 130 program158, the Surface Transportation Board Reauthoriza- through FY 2015.tion Act. If passed, this legislation could serve asa vehicle to re-regulate the railroads. Senate Com- Short line tax credit. Long a staple of Railroad Daymerce Committee Chairman John Rockefeller (D-W. on the Hill legislative activities, the short line taxVa.) has long pushed for this legislation that would, credit needs to be reauthorized. RSI supports H.R.among other things, make significant changes in 721 and S. 672 legislation that would extend thisthe rail competition policies adopted as part of the program through 2017.Staggers Rail Act of 1980. The Association of Ameri-can Railroads argues that depending on the form the Amtrak and high speed rail. Amtrak and highlegislation takes, Class I freight railroads could lose speed rail programs are funded annually throughup to $6 billion in revenues. Currently, there is no the U.S. Department of Transportation appropria-interest in the House of Representatives to consider tions legislation. As an integral part of our nation’sa similar bill. transportation system and a customer for many rail suppliers, RSI asks that passenger rail be funded atSAFETEA-LU reauthorization. This expired legis- levels requested by Amtrak. As 2011 closed, it ap-lation funds federal highway and transit programs. peared that Amtrak would receive adequate fund-Congress has been slow to reauthorize since the ing for the remainder of FY 2012, while federal highHouse of Representatives and Senate differ on speed rail programs were in danger of losing funds.RSI ANNUAL REPORT 2011 23
  26. 26. | RSI ANNUAL REPORT 2011 | ADVOCACY |BOB CLEMENT REPORTS RSI Work on Capitol Hill I’ve come to admire the resiliency of the RSI membership more than ever this year, as I’ve had the opportunity to meet many of you face-to-face in Minneapolis at one of the largest rail conferences ever held. I sense a grow- ing momentum of hope for more business opportunities during this slow economic recovery. It is an honor and privilege to represent you in Wash- ington, D.C. RSI has strong leadership on the Board of Directors and an excellent staff to implement our goals. Our overall strategy on Capitol Hill is to pursue beneficial legislation that helps railway suppliers, and to prevent harmful regulations that hurt the rail and railway supply industry. As Congress has challenged the rail industry on both the financial and regulatory fronts, 2011 has been a good year to have solid representation on Capitol Hill. We’ve seen a historic effort by Congress to deal with our nation’s debt crisis by outlining a 10-year budget-slashing plan. The economic debate over reducing debt has created a climate of austerity and forestalled the Transportation Reauthorization bill—now two years overdue—which maps out long-term spending for infrastructure improvements. Congress also has threatened to curtail the President’s high speed rail projects, Amtrak, and railroad crossing safety programs like Operation Lifesaver. So far, these threats have been diverted through strong advocacy among rail supporters and political alliances among transportation stakeholders. Fortunately, transportation and infrastructure projects receive wide bipar- tisan support, as Congress recognizes their power to create jobs. RSI is a Honorable Bob Clement voice that can amplify this message: Transportation investments in America’s future rail, highways, air, and waterways systems are a worthy expenditure. Bob Clement is president of Clement and Associates, LLC, a The railway supply industry has become an increasingly strong influence public affairs firm. He is a former with 650 companies operating more than 800 facilities, and 90,000 employ- Member of Congress (Democrat) ees spread across nearly every Congressional district. I am proud to be part from Tennessee, serving from 1988 of a team, along with Tom Simpson and Nicole Brewin, that represents RSI’s to 2003. While in the House of voice at the top levels of government. This year, our team and board officers Representatives, Clement served as took RSI’s message to the White House where we met with Deputy Chief of a senior member of the Transporta- Staff Nancy Ann DeParle and her staff. In Minneapolis, Transportation Sec- tion and Infrastructure Committee. retary Ray LaHood attended the hugely successful Railway Interchange con- He also served on the Budget Com- vention to address our members and the problems we face. As we visit the mittee, giving him significant insight offices of hundreds of Members of Congress, we continue to stress the influ-into funding procedures in Congress. ence of RSI businesses within each of their respective districts. I look forward   to working with you in 2012 and communicating our issues to our country’s Among his notable legislative top decision-makers. achievements in Congress, Clement initiated significant changes to the Transportation Reauthorization Act, including revising the distribution formula for state funding to ensure federal dollars are more equitably distributed—a formula policy which continues today. Clement and his wife live in Nashville, Tennessee. They have four children.24 RSI ANNUAL REPORT 2011
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  28. 28. | RSI ANNUAL REPORT 2011ADVOCACY EFFORTS RSI lobbyist Bob Clement (far left), Chair Greg Vogelman, Secretary Treasurer Rob Matthews, immediate past Chairman Bob Pokorski, and President Tom Simpson met with White House officials to discuss the rail supply industry. “I was happy to point out there were more than 100 railway supply companies with facilities in Illinois, serving both the freight and passenger railroad industry, and who had thousands of employees, said Simpson after the confer- ” ence. “Based on RSI data, Illinois railway supply companies represent more than 30% of total domestic sales of the entire supply industry.” Also speaking at the event were Illinois Senator Richard Durbin, Congresswoman Jan Scha- kowsky, Congressman Dan Lipinski, Federal Railroad Administrator Joe Szabo, Union Pa- cific’s Joe Bateman, and representatives from Illinois DOT, Amtrak, and rail labor. On Capitol Hill: RSI advocates continued Actively advocating funding for safety programs and dedicated for the rail industry source of funding at House hearing In April, RSI President Tom Simpson testified be- fore the U.S. House of Representatives Commit- In the states: RSI participates in Illinois high tee on Transportation & Infrastructure Subcom- speed rail press conference mittee on Railroads, Pipelines, and Hazardous Materials (pictured below). In his testimony, In March, at the invitation of Illinois Governor Simpson noted that “decisions made during the Pat Quinn, RSI President Tom Simpson partici- debate of reauthorizing The Safe, Accountable, pated in a press conference announcing the Flexible, Efficient Transportation Equity Act: A beginning of construction season for infrastruc- Legacy for Users (SAFETEA-LU) will have a pro- ture upgrades on the Union Pacific line between found impact on the rail supply industry. ” Chicago, Ill., and St. Louis, Mo. This line will eventually allow for higher speed passenger RSI submitted five program recommendations service on the line. to the Subcommittee that will provide more cer- tainty in the marketplace, continue to ensure “Today’s agreement marks another major step toward making high speed rail a reality in Illinois, said Governor Quinn. “Bringing high ” speed rail to Illinois has been a top priority of my administration because of the thousands of jobs and long-term investment it will bring to our state.” Simpson congratulated the governor for the leadership Illinois is showing in improving and expanding passenger rail service, and explained how important the railway supply industry is to Illinois.26 RSI ANNUAL REPORT 2011

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