Railway Age October 2025

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OCEAN OF LIQUIDITY NEEDS A HOME

’THERE ARE NO SHORTCUTS’ ASLRRA’s Baker Talks Railroading, Policy, Leadership

TECH FOCUS – M/W

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‘Injustice in Jacksonville’

CSX President and CEO Joe Hinrichs, Railway Age’s 2025 Railroader of the Year, on Sept. 29 was unexpectedly railroaded by his own collectively myopic Board of Directors, and for no reason other than, sooner or later, refusing to join the transcon merger fray. I’m not the only one who wholeheartedly agrees with CNBC’s Jim Cramer that there was an “injustice in Jacksonville” based on shortsightedness and hedge fund pressure. Call me naïve, but I didn’t see it coming. Nor did many others.

Sept. 26 marked Joe’s third anniversary with CSX. “Three years ago, I said we would work to improve customer service and the employee experience while maintaining an industryleading operating model,” he said in a LinkedIn post. “Fast forward to today and I believe the ONE CSX team has made dramatic progress on all these fronts. The progress that the operating team has made back to industryleading operating metrics since early May, combined with the finishing of two major capital projects, is testament to what we can do when we work together. Thank you to all 23,000 members of the ONE CSX team for all your support these last three years.”

Normally, I would exercise my editorial prerogative and change the word “last” to “past,” since the former implies a sense of finality. Here, however, “last” is sadly appropriate.

Joe’s departure has shaken CSX to its core, beginning with the agreement employees. “In fewer than three years, Joe Hinrichs revolutionized six decades of railroad labor relations,” commented

Railway Age Capitol Hill Contributing

Editor Frank N. Wilner, a former rail labor official. “As Hunter Harrison creatively destroyed hidebound ways of building and dispatching trains with PSR, Hinrichs proved labor agreements can more efficiently and more quickly be negotiated on the ballast most familiar to general chairpersons, rather than through cumbersome national handling but still preserving essential wage and benefits patterns. That is quite a legacy for a shorttimer who, though he was a major railroad customer at Ford for many years, came to the job with no railroad background.”

Of course, there are those taking the opportunity to gloat, like activist investor Ancora, which couldn’t care less about the rail industry and is pushing further consolidation.

Steve Angel’s appointment as Joe’s replacement “may signal a pivot toward more aggressive transformation such as a consolidation/merger,” a major rail supplier commented to me. So, it remains to be seen where this sudden change will lead.

There are those rightfully concerned that hedge funds have too much influence in the rail industry. Focusing on short-term quarterly results and low operating ratios has undoubtedly contributed to why railroads haven’t really been growing the top line.

There have been some pockets of progress. Joe Hinrichs should feel very good about what he accomplished in such a short time at CSX. Cutting his tenure short was a lessthan-optimal move, in my humble opinion, to put it politely.

WILLIAM C. VANTUONO Editor-in-Chief

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Industry Indicators

‘MORE UNCERTAINTY—AND MORE RESILIENCE’

“Someone once said the economy is like a weather system: Countless local patterns interact, and storms in one region can trigger chain reactions far away, making real-time tracking and forecasting extremely difficult,” the Association of American Railroads reported last month. “Likewise, disruptions in one sector of the economy ripple across others in unpredictable ways. In that context, recently released economic data include signs of strain that could produce turbulence, though continuing resilience is evident too. It’s as if the skies are cloudy, but it’s still uncertain if there will be no rain, a light drizzle, or a sudden downpour.

“The labor market is a case in point. Preliminary Bureau of Labor Statistics data released Sept. 5 show U.S. payrolls grew by just 22,000 in August, following a gain of 79,000 in July (revised up from 73,000) and a loss of 13,000 in June (revised down from an increase of 14,000). Both the unemployment rate and initial jobless claims edged slightly higher in August, though they remain at relatively healthy levels.

“Despite uncertainty in the labor market and elsewhere in the economy, rail volumes continue to hold up—a not-to-be-overlooked sign of resilience in today’s supply chains.

“Rail intermodal volumes are closely tied to port activity (especially in the west) and the consumer side of the economy. In August, U.S. rail intermodal shipments were up 0.5% over last year. Average weekly intermodal volume in August 2025 was 284,316 containers and trailers, the most for any month since May 2021 and the most for August since 2018.

“For the first eight months of 2025, U.S. intermodal shipments totaled 9.47 million units, up 4.1% (more than 377,000 units) over last year and the third most ever (behind 2021 and 2018). Year-to-date container movements (9.20 million) were up 5.2% and were the most ever for the first eight months of a year.

“The outlook for intermodal, like the outlook for just about everything related to the economy right now, is unclear. Intermodal volumes have generally been holding up—over the past two years, year-over-year monthly volumes have fallen just once—but the sector remains vulnerable to shifts in consumer spending, global trade flows, and policy-driven uncertainties. For railroads, that means maintaining

flexibility and efficiency will be critical to navigating an unpredictable demand environment.

“Meanwhile, year-over-year total U.S. rail carloads rose 0.7% in August 2025 over August 2024, marking six consecutive monthly gains. Eleven of the 20 major carload categories tracked by the AAR saw gains in August, the sixth straight month in which at least half the categories saw increases. Total carloads averaged 230,184 per week in August 2025, the most for any month since October 2022. In 2025 through August, total carloads were up 2.5%, or nearly 192,000 carloads, over last year.

“Should we be hoping for higher rail volume increases than we’re seeing? Yes, because that would likely signal a stronger economy and less uncertainty. But the fact that rail volumes continue to grow shows that while economic momentum may be modest, it is still present. To use the weather analogy again, a storm could still develop, but right now a few rays of sunlight are breaking through the clouds.”

Industry Outlook

Parallel Systems First Commercial Pilot: Phase 2 Under Way

FOLLOWING FEDERAL RAILROAD ADMINISTRATION (FRA) APPROVAL IN APRIL AND LAUNCH OF PHASE 1 IN JUNE, PARALLEL SYSTEMS, IN PARTNERSHIP WITH GENESEE & WYOMING (G&W), HAS TRANSITIONED TO PHASE 2 OF ITS FIRST COMMERCIAL PILOT TO DEPLOY ITS RAILCARS ALONG A 160-MILE STRETCH OF TWO GEORGIA SHORT LINES.

Phase 1 testing was performed on a twomile section of track on the Heart of Georgia Railroad (HOG). The Parallel vehicle was operated for a total of 90 miles, “passing all safety milestones,” the company said. Tests were also performed for speed, automatic compliance with track warrant limits, slow order bulletins, concurrent warrant limits and Form A slow order bulletins. In addition, the system’s communications links and monitors “were verified to ensure proper connectivity and safety.”

“With this important milestone behind us, we have now launched Phase 2 of the test program over a 30-mile section of track,” Parallel Systems said. “The test region includes 43 grade crossings that will all be protected with flaggers. During this phase, we will evaluate system performance across different terrains, vegetation, and weather conditions. Our specific test activities include speed and position accuracy, stopping distance, audible warnings for

grade crossings, and activation of grade crossing warning devices.”

“On our HOG near Glenwood, Ga., we moved forward with the official kick off of our pilot test with Parallel Systems,” G&W stated in a June 4 LinkedIn post. ”If these self-propelled rail vehicles prove safe and effective, we see potential to reinvigorate rail traffic on some of our more rural lanes in Georgia that are today dominated by truck. Thank you to the Federal Railroad Administration for your rigorous review of our pilot application, your continued commitment to this project, and for being on site with us today.”

Parallel Systems closed its Series B funding round of $38 million, led by Anthos Capital, joined by Collaborative Fund, as well as Congruent Ventures, Riot Ventures, and others. As of April 21, the company had raised approximately $100 million in funding.

Parallel Systems describes itself as “a U.S.-based manufacturer and transportation technology innovator whose mission is to deliver a safer, more efficient and sustainable alternative to short-haul trucking.” The company’s autonomous battery-electric system “delivers significant benefits,” including:

• “Enabling railroads to grow by increasing their role in shorter-route transportation.

• “Making America’s busiest roadways safer for motorists by decongesting.

• “Reducing the costs of shipping.

• “Creating high-skilled, high-wage jobs.

• “Reducing pollution.”

“Federal Railroad Administration approval and closing our Series B funding round are two critical milestones for Parallel Systems,” said Founder and CEO Matt Soule. “Together with our strategic partnerships within the rail industry, Parallel Systems is now poised to fully commercialize our battery-electric rail system, starting with the FRA-approved project in Georgia.”

The Parallel freight system, the company says, allows for small groupings of vehicles, typically 10-30 vehicles, to operate in a platoon without couplings between the vehicles. “Railroad operations become far more nimble, safe, and cost competitive with Parallel’s technology operating system,” the company said.

The latest funding round will be used to propel commercialization of Parallel Systems with strategic railroad partners in the U.S. and Australia. The company already has a backlog of more than 300 autonomous battery-electric vehicles with leading railroads and expects to launch initial commercial operations by 2026.

Parallel Systems is scaling production of its Generation 3 vehicle and accompanying train control systems and autonomy software. In collaboration with Union Pacific, the company has tested the new technology’s compatibility with Positive Train Control (PTC) for its safe use on the nation’s railroad network.

Wabtec Lands $4.2B Kazakhstan Locomotive Contract

Wabtec Corporation will provide 300 Evolution Series locomotives and Services agreements for roughly 15 years under a $4.2 billion order from Kazakhstan Temir Zholy (KTZ), the national railway of Kazakhstan. It marks the largest locomotive agreement in the manufacturer’s history, Wabtec reported last month. The “next generation” of Evolution Series units, Wabtec said, will improve fuel efficiency and operate for longer periods between maintenance overhauls. Their “production will involve multiple plants,” the company told Railway Age. “There will be kits coming from the U.S. and final assembly occurring at our LKZ (Lokomotiv Kurastyru Zauyty) plant in Astana,” Kazakhstan.

According to Wabtec, the company has eight service shops in Kazakhstan providing scheduled and unscheduled maintenance of locomotives in the KTZ fleet, as well as an engine overhaul facility, Astana Diesel Service (ADS). Wabtec said ADS is “the only facility outside the U.S. with state-of-the-art technology to remanufacture and overhaul not only our GEVO12 diesel engines but also other locomotive components.” Additionally, the company has a Technology and Engineering Center in Astana, based out of the LKZ plant. It opened last summer.

Wabtec in September 2023 signed a framework agreement with KTZ and the President of Kazakhstan to not only “extend and advance” the production of Evolution Series locomotives, but also “help address the increased demand for freight haulage in Kazakhstan and the central corridor.” The 300 newly ordered locomotives “will enhance KTZ’s ongoing rail expansion and fleet renewal and are designed to operate in the demanding weather conditions and mountainous terrain of Kazakhstan,” Wabtec said. “The order also includes maintenance services agreements to support the new locomotives and KTZ’s existing railroad fleet. The services are tailored to help maximize reliability and availability of KTZ’s fleet at optimal operating costs.”

“For more than two decades, our partnership with KTZ has been critical in transforming Kazakhstan’s rail industry,” said Rafael Santana, President and CEO of Wabtec. “This historic agreement embodies KTZ’s visionary approach for the country’s rail network as the primary link between Europe and Asia. By delivering advanced locomotives and long-term service solutions, Wabtec is a proud partner in Kazakhstan’s progress, helping to unlock the region’s enormous potential and developing the engineering competencies in the country’s railway industry.”

“Kazakhstan plays a key role in realizing the transit potential of the Eurasian continent,” KTZ CEO Talgat Aldybergenov said. “This new agreement confirms our commitment to advanced technologies in the transport sector and will also make a significant contribution to the development of industry and railway engineering in Kazakhstan.”

INTRAMOTEV, developer of the TugVolt autonomous battery-electric railcar, has entered into an agreement with WATCO, which will deploy the technology within its network, beginning with the WOOD RIVER TRANSLOAD TERMINAL in Illinois, just north St. Louis, Mo. Intramotev describes itself as “the first company in the world to commercially deploy autonomous freight railcars.” TugVolt technology is currently in revenue service for CARMEUSE AMERICAS in Michigan’s Upper Peninsula. The company has moved more than 250,000 tons of material this year and has delivered more than 3,500 carloads in production.

NEW JERSEY TRANSIT has exercised options worth $1.26 billion with ALSTOM TRANSPORTATION INC. for an additional 200 powered and non-powered Multilevel III (MLIII) commuter railcars and 12 ALP45-DP (dual-power, diesel/catenary-electric) locomotives. The $1.06 billion MLIII option increases NJ Transit’s number of these cars to 374. Approximately one-third of the fleet are MLPCs (Multilevel Power Cars) that operate off AC catenary and eliminate the need for a locomotive. For example, a 12-car MLIII trainset will typically consist of four MLPCs, six non-powered trailer cars and two non-powered cab cars. The Multilevel

design, developed originally by BOMBARDIER TRANSPORTATION, is part of Alstom’s Adessia™ commuter rail portfolio. These cars will replace NJ Transit’s older Comet II, IV and V single-level cars. The agency’s contract has a remaining option for 50 more MLIIIs, which may be purchased at a later date. The additional 12 ALP45-DPs, at a cost of $203.9 million (plus 10% for contingencies), will replace some of NJ Transit’s older diesel-electric locomotives. This option expands NJ Transit’s fleet to 72. Like the Multilevel, Bombardier Transportation originally developed the ALP45-DP, now part of Alstom’s Traxx Passenger™ locomotive portfolio.

Watching Washington

STB Drama Follows UP-POTUS Chat

The proposed marriage of Union Pacific (UP) and Norfolk Southern (NS) to form the first U.S. seamless Atlantic to Pacific transcontinental railroad is a mesmerizing drama intensified by two forceful personalities.

Center stage is UP President and CEO Jim Vena’s headline-grabbing September pilgrimage to the White House in pursuit of a POTUS 47 merger endorsement. A UP predecessor won President Abraham Lincoln’s support for a partial transcon linking the Missouri River with the Pacific Coast. The studious former railroad attorney understood the project’s role in facilitating trade and binding the nation economically.

Persuading POTUS 47 required different skills—playing to his fleeting attention span, impulsive tendencies and receptive reactions to flattery. A well-informed Vena deftly first focused on the President’s issue de jour, crime. Then he pivoted, observing that while Lincoln promoted but half-atranscon, POTUS 47 could take credit for the whole coast-to-coast chalupa.

Vena recalled his time as a board member at Memphis-based FedEx, emphasizing the city’s high crime rate; then noted UP and NS connect there, foretelling a POTUS double win. Order National Guard troops to purge Memphis of evil-doers and then host a photo-op of his driving a commemorative Golden Spike. The strategy worked.

With characteristic embellishment, POTUS 47 repeated to alter-ego Fox News Vena’s Oval Office words: “Sir, when I walk one block to my hotel [in Memphis] they won’t allow me to do it; they put me in an armored vehicle with bullet-proof glass to take me one block. It is so terrible.”

A UP spokesperson confirmed the two also spoke of “creating an American transcontinental railroad.” POTUS 47 was quoted that the merger deal “sounds good to me,” and Vena said he further met with “very senior people in the Administration.”

POTUS 47 loyalist, Commerce Secretary and dealmaker-in-chief Howard Lutnick told CNBC, “The concept of making [railroads] more efficient to get across the country is obviously something that we applaud. Whether that should be through a merger or any other way, I’ll leave that to the

regulators and overseers.”

Indeed. The Surface Transportation Board (STB) is a statutorily independent (from the Executive Branch) agency with sole authority to approve rail mergers. Sensitive to a POTUS who breaks norms, Lutnick’s comment sought to deflect impressions of improper meddling. Nonetheless, Vena and the POTUS unwittingly tossed the STB into a thorny briar patch.

Further feeding negative perceptions was the August sacking by POTUS 47 of Democratic STB member Robert E. Primus, who opposed a previous rail merger, CPKC. His removal appears headed for Supreme Court review. The STB statute limits removal to “inefficiency, neglect of duty or malfeasance in office,” of which Primus is not accused. The POTUS, however, has had legal success, so far, with similar removals at the National Labor Relations Board and Federal Trade Commission.

Notions that the Vena-POTUS chat is influencing STB’s two Republicans, Chairperson Patrick J. Fuchs and Vice Chair Michelle A. Schultz, or that Vena is lobbying them, lack substance. An STB spokesperson said that while Vena had in 2025 one private meeting with Fuchs— and no other STB members—it dealt with non-merger issues.

What we know of Fuchs and Schultz from conversations and close attention is they hold as sacred STB’s integrity and commitment to fact-based decision making. They now carry an unprecedented burden to provide fully transparent, detailed and plain-English reasoning as to their votes,

should a formal merger application be filed (Oct. 29 at the earliest).

We’ve learned that in expectation of the application’s filing, “rigorous and thorough” baseline data gathering—traffic flows, maps, track charts, joint rate and traffic agreements—is under way and already exceeds what was assembled during the entire 2021-2023 CPKC merger proceeding. If a formal merger application is filed, a final STB decision would come in early 2027. Fuchs’ second and final term ends Jan. 14, 2029. Schultz awaits Senate confirmation to a second and final term expiring Nov. 30, 2030. Democrat Hedlund, whose first term expires Dec. 31, 2025, awaits nomination to a second five-year term. Republican nominee Richard Kloster awaits Senate confirmation for a first five-year term. If Primus returns, his second and final term expires Dec. 31, 2027. Otherwise, a vacancy exists for another Democrat to be nominated by POTUS 47.

Railway Age Capitol Hill Contributing Editor Frank N. Wilner is author of Railroads & Economic Regulation,” available from Simmons-Boardman Books, www. railwayeducationalbureau.com/product/ railroads-economic-regulation-an-insidersaccount/, 800-228-9670.

FRANK N. WILNER

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OCEAN OF LIQUIDITY NEEDS A HOME

BY DAVID NAHASS, FINANCIAL EDITOR

Welcome to the 2026 Railroad Financial Desk Book. If you have made it through a tumultuous summer, you have finally reached the point where after almost a year of waiting and handwringing, the Federal Reserve finally dropped interest rates by a quarter point. The question, still fresh in the minds of market watchers everywhere, is and remains, “was the cut based on economics or politics?”

The high drama of the fight over the Fed playing on in text and on video (if you didn’t see the video of POTUS 47 and Fed Chair Jerome Powell facing reporters after the construction tour, give it a look) with

criminal conspiracy and the constant threat of firing and replacements is a slow-motion car crash for the modern political era.

While the Fed indicated further cuts are in the future, the bond market, having already priced in a quarter point drop, responded with a “meh.” The fight for the Fed has been one thing on the watch list since January. Few anticipated the playbook of stacking the team with homers (or is that foamers?) as a way of controlling the Fed without the Executive Branch taking over. You say there should be an independent Fed, and the Administration pulls a “John Wick” and says everyone serves under the High Table.

If that drama wasn’t high enough for you, perhaps you were captivated by the

railroad side of the political theater. Union Pacific President and CEO Jim Vena went to Washington to sit down with POTUS 47—as if anyone needed more evidence that the “fix is in” for the approving of the merger. The UP’s post-conference press release noted UP feels the Administration sees “how creating an American transcontinental railroad is a win for U.S. competition, consumers, and the unionized workers whose jobs will be protected when the merger is approved.” The promise of “competition” and a “victory” for unionized workers makes one wonder if they actually discussed North American rail at all. The sense that this merger is the stuff of afflatus is off the register. It definitely is not “Mr. Smith goes to Washington.”

The unbridled enthusiasm was echoed in a piece by The New York Times discussing North American rail as having an abundant opportunity to get trucks off the road (as if The Times just discovered railroads exist). It was clearly a planted piece complete with feel-good stories about short lines delivering good service and having a positive impact on communities. Unfortunately, the piece wasn’t meant to really highlight short lines; they were just foil for the larger propaganda message. The article comes out first with the origin of the story, “Two freight giants, Union Pacific and Norfolk Southern, recently announced a merger plan that would create the nation’s first coast-to-coast rail network under a single company. They hope the deal will win business from trucks.”

And then second with the ignorance that so often comes from reporting meant to deliver a message, “A resurgent freight rail industry would benefit businesses, the public and the planet.” Can I get an “Amen!”

But the coup de grâce and what seals the deal on the story being more propaganda than actual reporting comes under the heading of “‘Game Changer’: Union Pacific and Norfolk Southern say their proposed $85 billion merger is all about fighting back against trucking … The merger is an attempt to solve the disconnect between railroads east and west of the Mississippi River.” Raise your hand if you missed the meeting about the east-west disconnect and how it is the lynchpin holding back railroad growth. Didn’t think so.

At least the story gave Canadian Pacific Kansas City (CPKC) CEO Keith Creel three lines to present an opposing point of view. Balance.

Nonetheless, merger malaise still reigns.

In the world of railcars, the mojo is a little different. At the 2025 FTR Transportation Conference, there was enthusiasm for a market where, were it up to its participants, the will to make it better would by itself lift the market to new growth and opportunity. However, that will to power is not resonating in the market itself. The clear consensus from participants at the conference was that new car orders in 2026 are not expected to exceed 30,000 units. Ouch. That means that as an industry, North America is building railcars below the rate of replacement during a period of (more or less) normal economic growth over a multi-year period.

However, since this period of low new car builds corresponds to a period of rental rate stability, the market doesn’t seem as bluntly negative as one might expect. In fact, the discussions were about how high utilization continues to be the new normal for pretty much all railcar lessors. This high utilization is happening at lease rates that continue to be higher than pre-COVID pandemic norms. (When will that stop being a frame of reference?)

Fascinating right now is that rail loadings are staying in a relatively stable range year over year, and cars in storage are 2% to 3% higher YOY. Not only is the total railcar fleet contracting, it is very possible that the operating fleet (cars in service) is also contracting. This is happening while coal is seeing

its largest YOY increase in five years. (For the impact current utilization and loadings levels are having on railcar rents see “Around the Market” in this Desk Book).

There was, in addition, lots of discussion about the more than 100,000 cars reaching their 50 years maximum interchange service life over the next five to seven years. At some point, the discussion about the replacement cycle starts to sound a bit like the unfulfilled promise of intermodal loadings driving massive railroad growth and the disconnect between east and west railroads—another “fake it ’till you make it” moment. Yes, the cars do need to be replaced, but that alone will not rescue the soft build cycle in an industry that grows at GDP.

But that’s only one part of the story.

Railcar builders, investors and users in North America spend prodigious amounts of time thinking about railcar valuations and their correlation to the concept of a fair market. Every time there is an M&A event, there is a discussion about “overpayment” or “underpayment.” Did they overpay? How did they get it for that price? How did they convince them to pay that much for that?! In an industry often viewed as being challenged to grow, the impact of asset valuations on returns is a meaningful calculus.

No matter what the size of the deal, these are the messages one hears. Why? It’s human nature: Everyone loves a bargain and everyone wants higher returns. No one wants to be accused of overpaying. In August’s “Financial Edge,” in a discussion about the M&A market for railroads and railcar owners, the discussion centered on consolidation and its impact on a low-growth industry (freight rail) and not on valuations. But a key point from that discussion remains: There is significant private equity (PE) capital looking to make investments in the railcar ownership and leasing space.

There is by some estimates more than US$1 trillion available for investment by PE firms. This is a slightly aged number, but let that sink in for a second. The UP+NS merger is $85 billion; that’s 12 of those. The CP purchase of KCS (CPKC) was US$31 billion; that’s 32 of those. There are 1.6 million railcars in North America; at an average price of $75,000 per car, that’s just a measly $120 billion. That trillion dollars may or may not include the $344 billion in cash sitting on the

Berkshire Hathaway balance sheet. Wowza.

All these dollars are clearly not devoted to investment in transportation assets. But that is not the concern here. At some point, this available ocean of liquidity needs to find a home. Railcar assets with their consistent cash flow (rental payments), long useful life (50 interchange years), high barrier of entry (railcars are expensive), high likelihood of continued use (most railcars are in stable commodity businesses), and low default rates (railcar lease defaults are generally low) have an attractive profile for investment. Plus, there is the opportunity for upside as railcar asset values have been appreciating measurably during the past five to six years and consistently during the past 20.

It wouldn’t be a stretch to imagine that asset valuations at today’s levels, rather than being at a market peak, actually have a runway ahead of them for higher valuations from investors. If new car builds remain within a reasonable range (just below or at replacement levels) and there is an ongoing replacement cycle for older cars with consistent loading levels (as opposed to a downturn), the attractiveness of those

sticky, highly utilized railcars to the people holding the private equity checkbooks will only increase.

Well, wait a minute, you’re saying. Didn’t you just say that everybody loves a bargain? The answer to that is “yes,” everybody loves a bargain, but they love their jobs more. Very few people hired to find investment opportunities and deploy capital on a large-scale basis get paid for taking the high ground and not doing deals. PE firms are paid for the capital they deploy and the balance sheet magic they often perform to extract dividends. Fees are generated when money moves. Money that doesn’t move is returned to investors. Who wants that?

Let’s be really clear: There is no judgment here. It was recently reported that Bank of America expects to earn $130 million from the UP+NS transaction. Bank of America has been a longtime advisor to UP in a variety of capacities and has earned the right to represent UP in this endeavor. But there is little reason to debate if the investment bankers from Bank of America are worried about whether UP is paying a “fair price” for NS. Certainly, they have confidence it is the “right” price, but $130 million

buys a lot of confirmation bias.

The same rule essentially will apply for railcar investments. Consistent cash flow and an asset life that exceeds your employment sunset date make for a great strategic plan.

Alternatively, maybe the PE firms will band together and pay off 1/37th of the national debt with that money. Ha! In your dreams!

AROUND THE MARKET

As noted earlier in this Desk Book, the lease market for railcars continues to demonstrate stability and a kind of strength. While rates have pulled back from previous highs of earlier in the year, most railcars remain on lease at rates that would be considered reasonable or attractive. Nothing suggests significant change is on the wind currently. One question on people’s minds is the impact the UP+NS merger will have on lease rates. Historically, railroad mergers mess up the system causing lease rates and railcar demand to increase. Here’s what happening around the market.

Covered Hoppers for Grain: There is continued stability here with some rental

rate retrenching as a few more cars have come on the market. Even with a weak export market (check out the drop in soybean exports to China down 51% YOY through July 2025 and now resting at zero being exported just as the harvest is beginning), these loadings are up YOY and continue to support strength. For 4,750s, look for high $300s and low $400s full service. For jumbo cars, expect rates in the high $500s to low $600s. For DDG cars, look for rates in the high $600s to low $700s.

Covered Hoppers for Plastics: There is a little more weakness in this market segment, reflected in rates. 5,800cf cars are leasing in the low to mid $300s while older 6,200cf cars can be found in the low to mid $500s. New car pricing still drives the higher end of the newer car market where rates are into the high $600s to low $700s. These are full-service rates.

Covered Hoppers for Sand and Cement: There is some softness here as well. There remain significant quantities of cars still returning to market after their first leases from 2014-2016, and the current need for cars of this size has been satiated. Tariff disruption here has flattened the construction market, and that has softened cement demand. Rents are in the mid $200s full service. They will likely stay here for a while but there is some chance rates drift to the downside.

Coal Cars: Chat GPT may disagree, but coal cars are a good investment right now. Perhaps the AI hasn’t thought from where all the power to keep its wheels spinning is going to come. A revisionist energy policy and the incredible power greed of AI data centers along with some higher natural gas pricing (above $3.20 per MMBTU) continue to propel the coal car market. Gondola cars are red hot with nary a car to be found in the market. Look for rates in the high $300s to low $400s full service, with stability as loadings are up 6% YOY. For rapids, look for rates in the same range, as demand there is a little more tempered. Expect this run to continue at least into 2028.

Mill Gondolas for Scrap: Definitely some softening here, and rates are off their highs. There has been an introduction of some newer cars into the market, so there is some incongruity in rates. For 52-foot older cars, look for rates in the mid to high $500s. For newer cars, look for mid $700s. For 66-foot cars, look for mid to high $600s.

Keepers of well-maintained older cars can expect high demand for cars that can be had at those lower prices.

Centerbeam Flatcars: Housing starts? More like housing stops. This business is banking on lower interest rates to jump start demand, but be cautious here as cars seem a little oversupplied and the market is soft. Look for rates in the low to mid $300s.

Tank Cars: Corn syrup and other food grade tank railcars continue to run at elevated ranges in the mid $1,000s to low $1,100s per car per month (certain lining requirements may increase those costs). This is for newer cars. Older cars can be had for less money if they are even available. On the energyrelated side of the world, 117Rs continue to run in the high $900s to high $1,000s per car per month. Moving into a 117J will set you back mid $1,200s to low $1,300s. Again, these are full service. So much of this is dependent on the time since HM-216 recertification and who is paying for it. The standard 112J340

has been in excess inventory through the summer. That seasonality is not surprising, and rates have drifted down accordingly into the high $800s to high $900s depending on age. Expect rates to pick up in the fall and winter and move into the high $900s and mid $1,000s.

Boxcars: This market is a little soft right now with paper demand driving some idle capacity. Some cars are being returned, and that is pushing 50-foot Plate F rates down into the low to mid $500s. For 50-foot Plate C cars, look for rates in the low to mid $400s. Need 60-foot Plate F boxes? Those are running in the low $600s. These are full-service rates on existing cars. It bears noting that new cars would need to be at higher rates reflecting the cost of the new car in today’s market and the capital cost associated therewith.

LEASING RESOURCE DIRECTORY FOLLOWS ON PP. 16-19

2026 LEASING RESOURCE DIRECTORY

FINANCE COMPANIES

BUNDY

GROUP

Bundy Group is a boutique investment bank that specializes in representing business owners and management teams in business sales, capital raises and acquisitions. The firm is a seniordriven organization with offices in Charlotte, New York and Virginia. Bundy Group has been a recognized expert in the rail and transportation industry for more than a decade and has numerous successfully closed transactions in the segment. In representing a business and its shareholders in exploring a sale or recapitalization, Bundy Group is focused on managing a structured process and delivering premium value for its clients. For more information about Bundy Group’s work in the rail space, please contact Jim Mullens at jim@bundygroup.com or at 540-3422151. For more information about Bundy Group visit www.bundygroup.com.

ARRANGERS

DJJ A NUCOR COMPANY

300 Pike Street, Cincinnati, Ohio 45202; Tel.: 513-419-6200; Fax: 513-419-6221; Trey W. Savage, Director Logistics; Luke Weatherhead, Manager, Private Fleet; Jeff Schmutte, Jeff Blake, and Eric Hausfeld, Regional Rail Sales; Steven R. Skeels, Mechanical Services Lead; and Ann Edwards, Retired Rail Assets (502-212-7365). DJJ’s Rail Group provides a broad range of transportation services throughout North America: single investor, leverage leases, freight cars, portfolio evaluation, remarketing fleet management, purchases and sales of portfolios, and private fleet management. Other services include freight car inspections and engineering services from design of new cars to complete ISL extended life, modifications and analysis; in addition to railcar dismantling for scrapping and parts reclamation.

RAILROAD FINANCIAL CORPORATION

676 N. Michigan Avenue, Suite 2800, Chicago, IL 60611; Tel.: 312-222-1383; Fax: 312-222-1470; David G. Nahass, President, Email: dnahass@ railfin.com; William J. Geiger, Senior Vice President, Email: wgeiger@railfin.com. RFC represents domestic and international clients in the following areas: debt and lease financing of all railcar types including coal cars, tank cars and covered hopper cars for sand and plastics; railcar and locomotive fleet acquisitions and sales; lease brokerage; mergers and acquisitions; equity and debt financing of rail property acquisitions, fleet and lease restructurings and/or refinancing. RFC also provides continuing education for the industry.

RR MERGERS & ACQUISITIONS

11 The Pines Court, Suite B, St. Louis, Missouri 63141; Tel: 314 878-1414; Fax: 314-878-1414; Robert Fowler, President, 314 878-1414 x227 Email: robert@rrmergers.com. Jack Sickles, Vice President, 314 878-1414x221 Email: jack@rrmergers.com. RR Mergers & Acquisitions has specialized in the sale of rail-focused companies for more than 15 years. Trusted professionals with long-standing relationships in the rail sector, RR Mergers interfaces with strategic and financial buyers finding the right buyer for a Company, to make the best deal happen. While always maintaining confidentiality, RR Mergers manages the total process of selling railroad industry suppliers, rail services companies and Short Line Railroads. RR Mergers provides advisory services to prepare the company for acquisition, developing a confidential information memorandum, negotiating term sheets, letters of intent and coordinating the due diligence process.

STRATEGIC RAIL FINANCE

1700 Sansom St., Suite 500, Philadelphia, PA 19103; (215) 564-3122. Michael Sussman, President and CEO. SRF has served for 23 years as trusted advisor to Class I and short line railroads, rail shippers, public sector agencies, and industrial developers. The firm has brought capital, clarity, and velocity to infrastructure development projects in 45 states and Canadian provinces. SRF integrates capital from public programs and private sources with growth marketing strategies and management consulting to position executives toward short-term objectives and long-term opportunities.

WINTRUST COMMERCIAL FINANCE

3201 Dallas Parkway, Suite 800, Frisco, TX 75034. Tom Forbes, Executive Vice President and Chief Sales Officer. (469) 777-5649 (office); (615) 290-3069 (mobile). Wintrust Commercial Finance (WCF) is Wintrust’s Texas-based, equipment-focused financing group offering sophisticated loan and lease products to companies throughout the United States. Our team offers exceptional customer service and expertise from years of experience providing customers in a variety of industries with innovative capital solutions. WCF funded in excess of $3 billion in equipment-secured loans and leases since our founding in 2015 and has continued to grow into one of the largest equipment financing companies in the country. WCF is led by an experienced management team with, on average, 25 years of experience. With the team’s extensive

knowledge, we’re prepared to consider all structures, including structured financing and loans; financing for new and used equipment acquisitions; re-financings and estate planning; capital, operating, synthetic, and TRAC leases; sale/ leaseback and lease discounting; capital expenditure financing with fixed and floating rates and acquisitions. For more information, visit http:// www.wintrust.com/business-solutions/midmarket/lending/commercial-finance.html.

LESSORS

AMERICAN INDUSTRIAL TRANSPORT (AITX)

300 South Riverside Plaza, Suite 1925, Chicago, IL 60606. Tina Beckberger, Chief Commercial Officer, tina.beckberger@aitx.com. American Industrial Transport, Inc. (AITX) is a trusted leader in railcar services, known for keeping freight moving through reliability, technical expertise, and a true partnership mentality. With integrated solutions across leasing, fleet management, repair, and railcar data, AITX helps shippers navigate today’s supply chain challenges with confidence. Backed by a diverse lease fleet and best-in-class repair network— including full-service facilities, mobile operations, onsite partnerships, and railcar storage—AITX delivers the scale and service needed to support long-term success. For more information, visit www.aitx.com.

ATEL LEASING CORPORATION

The Transamerica Pyramid, 600 Montgomery Street, San Francisco, CA 94111; Tel.: 415-6163486; Ken Fosina, Executive Vice President, Email: kfosina@atel.com. Since 1977, ATEL has leased rail assets to America’s largest railroads and shippers. ATEL specializes in the leasing of all types of rail assets, including railcars, locomotives and maintenance-of-way equipment. ATEL targets railcars and locomotives built prior to 2005, but prefers new maintenance-of-way assets. Leases can be full service, but net leases are preferred. ATEL executes lease transactions directly and through its Capital Markets desk. Each year, ATEL’s Portfolio Management will sell rail assets from one of its Funds managing expiration.

CAI RAIL

Steuart Tower, One Market Plaza, 9th Floor, San Francisco, CA 94105. Tel: 415-788-0100; Fax: 415-788-3430. James H. Magee, President, email: jmagee@capps.com; Freddy Fernandez, Vice President-Operations, email: ffernandez@

capps.com. CAI Rail is an operating lessor in the new and used railcar space. CAI performs full service, net, per diem and finance leases on all railcar types. We have complete maintenance, engineering, operations and field marketing staff. In addition, CAI offers a comprehensive rail car customization and refurbishing program to meet our clients’ specifications. Our parent company, CAI International (NYSE: CAI) specializes in container leasing and sales as well as domestic and international intermodal logistics. So, let’s get moving!

CARMATH, INC.

25965 482nd Ave., Brandon, SD 57005; Walker Carmon, Vice President, Tel.: 605-582-8340; Email: wcarmon@mwrail.com; Website: www. carmathinc.com. At CarMath, we believe every business should have the opportunity to lease quality railcars at a reasonable price. We have the ability to lease both large and small groups of cars with a wide variety of leasing options and will customize a leasing program to best fit your needs.

CIT RAIL

30 South Wacker Drive, Suite 2900, Chicago, IL 60606; Tel.: 312-906-5701. CIT’s Rail division offers a full suite of railcar leasing and equipment financing solutions to rail shippers and carriers across North America. It manages one of the youngest and most diversified railcar and locomotive fleets in the industry and leverages its deep experience to empower customers. Contact us to learn how our transportation solutions can power your business. Visit cit.com/ rail, call 312-906-5701 or follow @CITgroup. SEE OUR AD ON PAGE 10

C.K. INDUSTRIES, INC.

P.O. Box 1029, Lake Zurich, IL 60047-1029; Tel: 847-550-1853; Fax: 847-550-1854; email sales@ ckrail.net. Brian M. Harris. C.K. INDUSTRIES, a privately held corporation, began its U.S. leasing operations in 1980, and offers its services to shippers, short line, regional and Class I railroads in North America. New investment opportunities up to $10MM of both new and used types of freight cars will be considered. Our existing lease fleet offers a wide variety of car types to meet your lease requirements. We offer mid to long terms, either on a full service or triple net basis.

DJJ A NUCOR COMPANY

300 Pike Street, Cincinnati, Ohio 45202; Tel.:

2026 LEASING RESOURCE DIRECTORY

513-419-6200; Fax: 513-419-6221; Trey W. Savage, Director Logistics; Luke Weatherhead, Manager, Private Fleet; Jeff Schmutte, Jeff Blake, and Eric Hausfeld, Regional Rail Sales; Steven R. Skeels, Mechanical Services Lead; and Ann Edwards, Retired Rail Assets (502-212-7365). DJJ’s Rail Group provides a broad range of transportation services throughout North America: single investor, leverage leases, freight cars, portfolio evaluation, remarketing fleet management, purchases and sales of portfolios, and private fleet management. Other services include freight car inspections and engineering services from design of new cars to complete ISL extended life, modifications and analysis; in addition to railcar dismantling for scrapping and parts reclamation.

GATX CORPORATION

Thomas A. Ellman, President, Rail North America, GATX Corporation, 222 W. Adams Street, Chicago, IL 60606; Tel: 312-621-6200 Fax: 312-621-6546 GATX is a leader in the rail leasing industry with more than a century of experience, preeminent expertise in specialized railcars, and a growing international presence. GATX meets shipper and railroad needs with one of the largest lease fleets of tank and freight cars and locomotives in the world. We provide our customers with a unique mix of financial (global financing, valuation, structuring, leasebacks, joint ventures, partnerships) and mechanical (regulatory, maintenance, engineering, cleaning, inspection) services in North America. Contact via www.gatx.com or 1-800-428-8161.

THE GREENBRIER COMPANIES

One Centerpointe Drive, Suite 400, Lake Oswego, OR 97035; 800-343-7188; Fax: 503-968-4383; Email: Marketing.Info@GBRX. com; Website: www.GBRX.com. Tom Jackson, V.P., Marketing. Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Through its wholly owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and marine barges in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, repair, refurbishment and retrofitting services in North America through our wheels, repair and parts business unit. Greenbrier manages 445,000 railcars and offers railcar management, regulatory compliance services and

leasing services to railroads and other railcars owners in North America. GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars that originate primarily from Greenbrier’s manufacturing operations. Together, GBXL and Greenbrier own a lease fleet of 8,700 railcars. Learn more about Greenbrier at www.gbrx.com.

INFINITY TRANSPORTATION

201 17th St., Suite 410, Atlanta, GA 30363; Website: www.infinitytransport.com. Brian Ottinger, Chief Commercial Officer: Tel: 312-731-2763; brian.ottinger@infinitytransport. com. Lee Martini, Sr. VP Sales & Marketing: Tel: 678-904-6315: lee.martini@infinitytransport. com; Ken Johnson, VP Sales & Marketing: Tel: 859-640-0362: ken.johnson@infinitytransport. com; James Weaver, VP Sales & Marketing: Tel.: 251-654-2166: james.weaver@infinitytransport.com. Infinity Transportation is a private lessor with a fleet of more than 40,000 railcars of varying types. Lease options include net, full-service and per diem with term variances ranging from short-term operating to long-term finance leases. Infinity prides itself on exceptional customer service and flexibility with regard to lease structures and railcar modifications to find the transaction and equipment to best serve our customers.

THE INSTAR GROUP, LLC

2001 Route 46, Ste. 506, Parsippany, NJ 07054. (636), 778-0611; (973) 355-6484. Umesh Choksi, CEO. UChoksi@instargrp.com. The InStar Group LLC is a full-service railcar leasing company established in 2016. We are owner operators and/or investors in the railcar business in North America and provide the highest quality railcars on either a full service or net lease to North American shippers and railroads. We invest and offer all railcar types across all industries we deem to be most efficient for the commodities carried with proven track record of consistent cash flow. We are flexible in our approach to investing in railcars and have the ability to own outright, participate in lease in/lease out arrangements, sale-leasebacks, joint ventures or provide structured financial products for our customers. The InStar Group management team is composed of seasoned industry professionals with manufacturing, leasing, railcar portfolio management, and financing expertise. We maintain relationships with all major railcar manufacturers, other operating lessors, shippers, railroads, repair and

2026 LEASING RESOURCE DIRECTORY

maintenance facilities and financial institutions within the industry. The InStar Group, LLC is now part of J.P. Morgan Global Alternatives’ Global Transportation Group, the alternative investment arm of J.P. Morgan Asset Management. More information: https://instargrp.com.

MITSUI RAIL CAPITAL, LLC

One South Wacker Drive, Suite 3110, Chicago IL 60606 - Phone: 312-803-8851: Dan Penovich, President; Chris Gerber, Vice President Sales and Marketing. Mitsui Rail Capital is a railcar operating lessor that offers some of the youngest railcars in our industry. From tank cars to covered hoppers to a wide variety of other car types, we deploy assets in every industry, including oil, gas, plastics, agriculture and steel. Our proactive approach enables us to know your unique needs and railcar requirements, getting well-structured deals done, faster. MRC has been in business for 20 years and is a joint venture between Mitsui & Co. Ltd. and JA Mitsui Leasing of Tokyo.

PNW RAILCARS INC.

121 SW Morrison St., Suite 1525, Portland, OR 97204. 503-208-9295. sales@pnwrailcars. com. www.pnwrailcars.com. PNW Railcars, Inc. (formerly MUL Railcars) offers a complete railcar leasing solution set with asset management, regulatory support, and specialized services designed to provide customers with the options they need. PNW Railcars has one of the newest and most comprehensive tank car and freight car fleets in rail leasing, serving several industries including automotive, chemical, steel, agriculture, aggregates, construction, infrastructure and intermodal.

PROGRESS RAIL, A CATERPILLAR COMPANY

Mike MacMahon, Director of Railcar Leasing, mmacmahon@progressrail.com; Jay Hatfield, Director of Business Development, jhhatfield@ progressrail.com; Gary Lawrence, Manager, Locomotive Sales & Leasing, glawrence@ progressrail.com. Jacob Creech, Manager, Locomotive Leasing, jcreech@progressrail.com. Progress Rail, a Caterpillar Company, offers through its Freight Car Leasing Division offer a wide variety of freight cars and leasing options to meet our customers’ specific transportation requirements: Full-Service, Net and Per-Diem leases, and Purchase-Leasebacks. Understanding your needs and supplying an optimal solution is what we do best. The Locomotive

Leasing Division offers Full-Service Leases: Net, Seasonal, Sell-Lease Back, Trade-Ins. All locomotives sold or leased go through an extensive inspection to ensure you are receiving equipment that is ready for service. Refurbishment or upgrades are available to ensure the locomotive fits your operation, with work completed in our own shops under our supervision, ensuring the highest level of quality. Through the acquisition of Electro-Motive Diesel, Progress Rail has access to locomotive information other providers cannot supply. Our locomotive inventory is constantly changing, as we strive to be your top supplier of quality and dependable used locomotives.

SEE OUR AD ON COVER 2

RELAM (RAILWAY EQUIPMENT LEASING AND MAINTENANCE) INC.

7695 Bond Street, Glenwillow, OH 44139; (440) 439-7088. John Roberts, CEO, Email: jroberts@relaminc.com. As a full-service leasing company, we offer complete MOW equipment leasing services. Each of our team members is knowledgeable, professional, prompt and courteous, one reason why our clients stay with us. We understand the importance of making every business transaction easy on the customer. We handle all the paperwork and logistics for every lease, so you can spend your time on more important things. We are committed to providing our clients with the highest level of service while remaining competitive in today’s market. RELAM knows railroad operations and the equipment involved.

RALTRAC, LLC

200 S. Wacker Drive, Suite 3100, Chicago, IL 60606; tel: 312-674-4742; fax: 312-4212742; www.raltrac.com. RALTRAC (formerly RALCO) is a privately held, Illinois Limited Liability Company in the business of acquiring, managing and leasing railroad rolling stock on net or full services leases. The Company has the intellectual and financial resources necessary to compete in the small cap lease market where its size and structure provide it with a competitive advantage. RALCO also provides consulting and advisory services to its clients. Contact: Peter Urban, Principal, purban@raltrac.com, 847-975-3568 (mobile); Richard Johannes, Principal; Jason Urban, Principal.

RELCO LOCOMOTIVES, INC.

One Relco Ave, Albia, Iowa 52531. Tel.: 641-9323030; Website: www.relcolocomotives.com.

RELCO, as one of North America’s leading locomotive rebuild, remanufacturing and leasing companies, can provide a full range of locomotive leasing and maintenance services. Since 1961, RELCO has developed a reputation for providing the finest motive power and custom maintenance packages to fit any need: Full line of both switching and road power available. Specifications ranging from qualified to completely custom remanufactured. Aftermarket systems upgrades available, including radio remote controls, microprocessor control systems, fuel management systems, etc. Nationwide full-maintenance programs available. Net, full-service, financial and sale/leaseback programs.

TEALINC, LTD.

1606 Rosebud Creek Road, Forsyth, MT 59327; Tel.: 406-347-5237; Fax: 406-347-5239; www. tealinc.com; webmail@tealinc.com; Julie Mink, President, 720-733-9922; julie@tealinc. com; Kristen Kempson, Director-Railcar Leasing & Sales; Tel. (708) 854-6307; kristen@ tealinc.com; Shannon Rodgers, DirectorOperations; Tel.: (814) 631-9277; shannon@ tealinc.com. Tealinc, Ltd. is a boutique private freight railcar lessor, railcar fleet manager and rail transportation consultant. Guided by our Customer-Centric philosophies, we partner with our customers by leasing, buying, and selling railcars nationally and internationally. Our private railcar fleet includes covered hoppers, flatcars, gondolas, open top hoppers, etc. Custom-tailored railcar lease support packages include options such as daily tracing, cycle time reports, preventative maintenance planning, etc. Our rail transportation consulting services enable our customers to have a successful freight-by-rail experience. With a combined 80 years providing service and expertise in the freight rail industry, the Tealinc team is dedicated to being a rail partner to novice, intermediate, and expert freight railcar shippers.

TRINITYRAIL®

14221 North Dallas Parkway, Ste. 1100, Dallas, TX 75254. 1-800-631-4420. TrintyRail® provides access to the rail transportation businesses of Trinity Industries, Inc. With an owned and managed fleet of approximately 131,000 railcars, Trinity Industries Leasing Company (TILC) provides one of the largest railcar fleets in North America. In addxition to comprehensive leasing and management services, our customers have access to extensive manufacturing and

engineering resources, railcar maintenance, parts, asset management and advisory services, and on-site field support for operational assistance and training. An overview of our platform of integrated rail products and services is available at www.trinityrail.com.

SEE OUR AD ON PAGES 20-21

UNION TANK CAR COMPANY

175 W. Jackson Blvd., Suite 2100, Chicago, Illinois 60604; 312-431-3111; leasinginquiry@utlx. com; https://www.utlx.com. Union Tank Car Company (UTLX) supplies general purpose and pressure tank cars, in addition to plastics covered hopper cars, for bulk shippers. Along with Canadian affiliate Procor Limited (PROX), our combined companies own the largest and most diverse tank car fleet in North America, specializing in full-service tank car leasing. We also operate the largest railcar repair network on the continent, and with the acquisition of Transco Railway Products Inc. in 2019, our repair network now includes 26 full-service shops and more than 100 mini shop and mobile unit installations. UTLX is capable of servicing all fleet management and maintenance needs for all car types. Our manufacturing operation, located in Alexandria, Louisiana, specializes in the fabrication of tank cars. Leveraging an integrated leasing-repair-manufacturing model with experience cultivated throughout our 130-year history, our talented team provides superior customer service and shapes the future of the highly regulated North American tank car industry. Union Tank Car Company is a Marmon/Berkshire Hathaway Company.

SEE OUR AD ON PAGE 29

VTG RAIL INC.

103 West Vandalia, Suite 200, Edwardsville, IL 62025. Bryan Vaughan, Regional Vice President Sales, 630-361-6745, Bryan.Vaughan@vtg. com. Lynn Hayungs, Regional Vice President, Sales, 956-630-2723 ext. 206, Lynn.Hayungs@ vtg.com. VTG is a freight and tank railcar lessor offering operating leases and customer structured solutions. VTG also provides fleet management services for its customers and for other private railcar owners and operators. VTG is a customer service oriented leasing company that provides a best in class mix of service, operational and mechanical expertise at competitive lease terms. VTG invests in all freight car types.

WELLS FARGO RAIL

Wells Fargo Rail, 9377 W. Higgins Road, Suite

2026 LEASING RESOURCE DIRECTORY

600, Rosemont, IL 60018; Telephone: 844-4599664; Fax: 847-318-7588; Web: www.wellsfargo.com/rail. Email: RailAccountServices@ wellsfargo.com. Wells Fargo Rail is the largest, most diverse rail equipment operating lessor in North America. Whatever you’re transporting, we’ve got you covered with more than 175,000 railcars and 1,800 locomotives. Our team of experienced rail industry professionals is ready to listen to your needs and structure creative solutions to add value to your business.

PROFESSIONAL SERVICES

FREIGHTCAR AMERICA

125 South Wacker Drive, Suite 1500, Chicago IL. 60606. Phone 312-928-0850, Fax 312-928-0890. Email mtonn@freightcar.net. Website: www. freightcaramerica.com. Matthew Tonn, Chief Commercial Officer. Since 1907, FreightCar America has been transforming metal into innovative solutions and lasting relationships. We are an industry leader in freight car design and manufacturing utilizing steel, stainless steel, aluminum, and hybrid steel-aluminum materials in freight cars that transport a wide variety of bulk commodities, containerized freight and other products shipped by rail. Our manufacturing facility, engineering expertise and experienced production team is purpose built, focused on delivering operation excellence while closely working with customers to create customized railcar solutions for all your needs, including pre‐ and post-lease inspections, wreck/damaged car inspections, car interface with loading and unloading facilities, drone inspections and service, and custom repair procedures and parts fabrication.

RAILROAD APPRAISAL ASSOCIATES

Division of The Occor Company; Management Consultants providing a variety of consulting services to the railroad and urban transportation industries and the financial institutions and leasing companies that serve them: Railcar and Locomotive Appraisal & Inspection Services for New and Used Equipment, Rail Equipment Portfolio Reviews and Valuation, Market Studies, General Consulting. We have more than 20 years of market experience and data. Patrick J. Mazzanti, President; Ronda Lemons, Assistant. Headquarters: 1914 Springdale Drive, Spring Grove, IL 60081, (815) 675-3300; E-mail: pat@railroadappraisals.com.

RAILSOLUTIONS, LLC

1401 Walnut Street, Suite 500, Boulder, CO 80302; (646) 258-5812. 2593 Wexford-Bayne Road, Suite

205, Sewickley, PA 15143; (724) 766-6699; Email: mmahoney@railsolutions-llc.com, rblankemeyer@railsolutions-llc.com; Website: www. railsolutions-llc.com; Michael E Mahoney, President; Robert Blankemeyer, Senior Vice President. RailSolutions LLC provides a broad variety of railroad equipment-related consulting, technical and advisory services to financial institutions, railroads, shippers and fleet owners with a primary focus on equipment valuation and appraisal services. RailSolutions LLC offers two publications on a subscription basis, The Investors’ Guide to Railroad Freight Cars and Locomotives and the RailSolutions Railroad Equipment Historical Database. Our firm draws on close to 50 years of railroad industry experience in railcar and locomotive equipment valuations supported by both a sound base of market data and advanced analytical techniques.

RR MERGERS & ACQUISITIONS

11 The Pines Court, Suite B, St. Louis, Missouri 63141; Tel: 314 878-1414; Fax: 314-878-1414; Robert Fowler, President, 314 878-1414 x227 Email: robert@rrmergers.com. Jack Sickles, Vice President, 314 878-1414x221 Email: jack@rrmergers. com. RR Mergers & Acquisitions has specialized in the sale of rail-focused companies for more than 15 years. Trusted professionals with long-standing relationships in the rail sector, RR Mergers interfaces with strategic and financial buyers finding the right buyer for a Company, to make the best deal happen. While maintaining confidentiality at all times, RR Mergers manages the total process of selling railroad industry suppliers, rail services companies and Short Line Railroads. RR Mergers provides advisory services to prepare the company for acquisition, developing a confidential information memorandum, negotiating term sheets, letters of intent and coordinating the due diligence process.

STRATEGIC RAIL FINANCE

1700 Sansom St., Suite 500, Philadelphia, PA 19103; (215)564-3122. Michael Sussman, President and CEO. SRF has served for 23 years as trusted advisor to Class I and short line railroads, rail shippers, public sector agencies, and industrial developers. The firm has brought capital, clarity, and velocity to infrastructure development projects in 38 states and Canadian provinces. SRF integrates capital from public programs and private sources with growth marketing strategies and management consulting to position executives toward short-term objectives and long-term opportunities.

Railcars and Support For the Toughest Loads

For decades, TrinityRail®, has been at the forefront of engineering and producing leading types of covered hoppers, tank cars, and autoracks. However, it is the tried-andtrue car types that formed the foundation of our industry. Flat cars, boxcars, gondolas, and open hoppers have been hauling goods since the earliest days of North America’s rail system and continue to move products that are fundamental to our infrastructure, economy, and daily life.

Today, our non-intermodal flat car portfolio includes cars for autorack application, 100-ton general purpose flat cars, bulkhead cars, centerbeams, and other specialty cars for general industrial use. Together, these railcars move diverse commodities including automotive and construction equipment, wood and steel products, and much more.

Boxcars may be the most iconic type of rail equipment, having been prominently featured in movies, music, books, and television. For over a century, boxcars were used to transport a variety of freight, even automobiles and grain. With the advent of more specialized cars designed to carry specific types of freight that

began to be delivered in increasing numbers in the 1960s, the boxcar fleet began to decline with many proclaiming the eventual death of the boxcar. But with demand coming from goods ranging from paper, food-related products, and various other manufactured commodities, the need for boxcars has remained steady in recent years and TrinityRail offers several innovative products to meet such demand. TrinityRail’s portfolio includes standard 50’-6″ and 60′-9″ boxcars and our EcoBox® cars that come with the same interior dimensions as our standard boxcars but are lighter in weight for an efficient and simplified solution for shippers. Our line of insulated and refrigerated boxcars includes the Plate F, 72′-3″ TrinCool™ car that offers a variety of features to enhance thermal performance and operational efficiencies. With ongoing demand for temperature-sensitive products and the expansion of cold-storage distribution centers, these cars are working to facilitate the efficient delivery of perishable products.

A gondola may be a fairly conventional car type, but these cars often operate in very demanding service and remain the workhorses of the nation’s rail fleet. With their durable, highstrength design and construction, TrinityRail’s 52’6” and 66’-0” mill gondolas are in service moving products such as scrap steel, iron or steel plate, or other similar products. Aggregate gondolas are also available. These high-strength cars provide shippers with proven long-term reliability and performance.

Rapid Discharge® open hoppers helped change how shippers unload railcars. First introduced in 1961 for coal and woodchip service, by 1971 these cars were helping shippers more efficiently haul sand, rock, and minerals. With a transverse discharge door system, they were built tough and built to last. With the success of TrinityRail’s longitudinal Rapid Discharge coal car, the RDL™, this technology was applied to the aggregates market with the introduction of the RDL-A™ in 2008. This 2,400 cubic foot car, produced in an all-steel or hybrid design, offered touch-pad control and quick discharge. Our latest product for aggregate service is a new triple hopper that brings together many of the proven features of cars produced for this demanding service.

In addition to optimizing new car designs, TrinityRail is actively converting existing railcars into sustainable conversions, namely through it’s TrinityRail SRC® program. As these cars are repurposed and moved into areas of greater need, such as aggregates, they are not only helping to meet customer demand but doing so in a more efficient and sustainable manner.

These heavy-duty railcars are supported by a customer-focused platform of integrated services that continues to deliver leasing options, maintenance support, parts, and the industry-leading logistics and railcar management solutions available through RSI Logistics. These leading products and services work together to support our purpose of Delivering Goods For The Good Of All ™

BUILT TO DELIVER

‘THERE ARE NO SHORTCUTS’

A Conversation with American Short Line and Regional Railroad Association President Chuck Baker.

BY DON ITZKOFF, CONTRIBUTING EDITOR

Patriot Rail Chief Policy Officer and Railway Age

Contributing Editor Don Itzkoff caught up with American Short Line and Regional Railroad Association (ASLRRA) President Chuck Baker for a wide-ranging reflection on railroading, policy and leadership.

Charles “Chuck” Baker joined

ASLRRA as President in February 2019 after a 15-year career in the railroad industry. Before joining ASLRRA, he was a Partner at Chambers Conlon & Hartwell (CC&H), where, in addition to ASLRRA, he represented clients such as the National Railroad Construction & Maintenance Association (NRC), the OneRail Coalition, the American Railway Development Association,

Norfolk Southern, and CN. For the NRC, Baker also served as President. In that capacity, he had responsibility for all the Association’s core financial, operational, and legal programs, including the development and execution of the federal legislative and regulatory program in front of Congress and the Administration.

For the OneRail Coalition, which brought together freight rail, intercity

passenger rail, commuter rail, rail labor and rail supply industry interests, Baker coordinated the group’s activities and messaging. Prior to joining CC&H, Baker worked with the Surface Transportation Policy Project in Washington, D.C.

Baker has also worked for Deutsche Bank Securities as an investment banker specializing in Corporate Finance and Mergers & Acquisitions in San Francisco, Calif. He is a native of Baltimore, Md., and a graduate of Rice University in Houston, Tex.

Don Itzkoff: You came to Washington, D.C., in 2004. What was the short line sector like then?

Chuck Baker: The short line industry was more fragmented than it is now, and less professional. There were holding companies, but smaller and less prominent than today. Some folks understood that short lines were growing, but we weren’t fully recognized. Even in D.C. transportation circles at that time, many who heard “short lines” didn’t know what you were talking about.

DI: How do you describe the core DNA that makes short lines successful?

CB: The beauty of the industry flows from the small businesses, small towns, the hustle and the entrepreneurial spirit. It’s the close connection to the shipper. Beating the bushes for every carload, one customer at a time. White glove service, bend over backwards, always figure out a way to say “yes.” That’s what people love about short lines. I don’t find much difference talking to a short line that’s owned by a holding company vs. a family business. Whether it’s the owner or the president or a general manager, you find they know every customer by name. They know exactly what is happening on every pickup that day. They know when their Class I interchange partner is coming. They know every plot of land around the railroad. And they know every potential new customer that could be coming in the next six months.

DI: If this nimble spirit is baked in, why are federal 45G tax credits, CRISI (Federal Railroad

CLASS II/CLASS III INSIGHTS

Administration Consolidated Infrastructure and Safety Improvements) and other grant programs so vital?

CB: Short lines exist because these were the routes that didn’t do enough business, didn’t have the density, and cost more to operate and maintain than the revenue they generated within the Class I network. After the Staggers Rail Act in 1980, the Class I railroads sold or leased off these lines, sometimes for a dollar and a promise to develop the business. It’s capital intensive to run a railroad and that’s especially hard when there’s not a lot of traffic. You’re not finding short line

“The industry’s beauty flows from small businesses, small towns, and the entrepreneurial spirit.”

track with 20 or 50 trains going per day; it’s frequently one or two. The beauty of 45G and CRISI is that these programs incentivize and channel investment into our infrastructure. Then we get all the good public policy outcomes we love to talk about.

DI: So public investment in short lines leverages the public benefits that short lines produce?

CB: Exactly. Let’s say we have a short line with $10 million in annual revenue. The line provides fabulous benefits for the community. It’s good for safety. It’s good for mobility, it’s keeping trucks off the road. It’s good for the environment. But this line might also have a bridge that costs $10 million to rehabilitate. You don’t need an MBA to understand that a $10 million revenue company will be challenged to deliver a $10 million infrastructure upgrade without help. Congress has understood this need for

a long time, which is why we have such great support for 45G and CRISI.

DI: Why do short lines have such bipartisan appeal?

CB: Members of Congress tend to look at the practical aspects of what short lines do. We maintain access to the freight rail network for smaller customers, often in smaller towns and rural areas, and assure choices for shippers. The public benefits of short lines transcend party politics, and that makes my job making our case pretty easy.

DI: Which brings us to the win getting 45G permanently into the tax code, and now the push to modernize the credit.

CB: We achieved permanency of 45G into the tax code in 2020. Now we’re pushing to increase the credit to account for inflation since 2005 and make sure it includes all current short lines. We are blessed with champions in Congress who introduced the legislation, including Senate Finance Chairman Mike Crapo (R-Idaho) and Senior Democrat Ron Wyden of Oregon. On the House side, we have Reps. Mike Kelly (R-Pa.) and Mike Thompson of California, the Chair and Senior Democrat of the Ways and Means Subcommittee on Tax, respectively. That was Step One. Step Two, we now have more than 100 House cosponsors for the credit modernization—109 and counting. This is in the top 3% of the most heavily cosponsored tax bills in this Congress, and we’re pushing to get more. We have 16 Senate cosponsors. Step Three, we’ll find a legislative vehicle that’s going to pass. That is easier said than done, but we’re believers. It’s a question of when, not if.

DI: Short lines play the long game well!

CB: It was a three-plus year effort to get 45G into the code originally. Then it took from 2005 to 2020 to get 45G from temporary extensions to permanent enactment.

We’re about a year into the effort to modernize 45G, and we feel good about our case. We have the right champions. We have a lot of support. And luckily for

CLASS II/CLASS III INSIGHTS

us, many short line folks are hard-headed and persistent. We don’t know how long it will take but we’ll keep banging on the door until somebody opens it.

DI: CRISI has been a game-changer too, with increased funding and the certainty of planning around advanced appropriations. What comes next?

CB: I’d agree with “game-changer.” CRISI was created in 2015, first funded in 2017, and it’s been transformational. CRISI supports large “lumpy” investments that 45G can’t address such as replacing 30 miles of jointed rail from 1897 with modern 136-pound rail. CRISI early on received a few hundred million dollars per year, which was great. Then the big infrastructure bill supercharged CRISI with advanced appropriations. That made CRISI the successful program it is, with greater funding and the ability to plan into the future. Partnering in many cases with state and local entities, short lines

have earned about half of the available CRISI funds in each of the past few years. We are now advocating for continued investment in CRISI after the advanced appropriations guaranteed funding ends in FY 2026. It’s vital to keep this program going with guaranteed funding. We see a huge opportunity for Congress and this Administration to double down and invest in something that works—and is so popular.

DI: Moving to another core program, short lines have continued to improve safety, and the Short Line Safety Institute (SLSI) has been a big part of that.

CB: The foundation for the SLSI came after the Lac-Mégantic tragedy in Canada in 2013. We needed to get safer. To emphasize safety culture, we came up with the Short Line Safety Institute, which would be staffed with safety experts and work collaboratively with our members to audit short lines; get into the nitty-gritty of operations; and produce

frank, confidential, deep-dive reports on safety culture. We proposed the concept to Congress because we needed funding, and Congress liked it right away. We’ve added safety training and HazMat response, but the core of SLSI remains these intensive safety culture assessments. It’s a phenomenal program.

DI: Any Washington railroad conversation now must address the proposed transcontinental merger …

CB: We have 600 short lines and varying opinions. I sense broad agreement about the potential positives: faster interchanges in the middle of the country, new spinoff opportunities for short lines, new opportunities and new competitive paths. On the other hand, every short line already struggles at some level to deal with Class I partners because the sizes of the organizations are wildly different. A merger will make one combined Class I twice as big, and

the parties will be distracted for years to get the deal approved and then integrated. Some folks have reasonable angst about whether short lines will get the attention needed amid the distraction. We’ll continue to watch and develop ASLRRA’s position, but I’d encourage the Class I’s to proactively address these concerns with tangible plans.

DI: What are your priorities as you look to take short lines to the next level?

CB: It’s tough to stay grounded when you sit in your fancy office and people want to talk to you because your business card says you are association president. But I try to remember that I work for the short lines, the short lines don’t work for me. So, what I want to do next is what the short lines want to do next. I talk constantly to our members, and listen to our customers, the competition, and Congress and our regulators. Just trying to grasp the problems that need to be solved? I get to be in the fun spot and sit in the middle, hear everyone, and see what kind of consensus can emerge on collective action. And then meld that consensus and transform intent into action and ultimately deliverables and wins. But it all starts with listening. One challenge I’d like to help meet is that while short lines have generally enjoyed a positive reputation, it feels now that the freight rail industry overall isn’t uniformly liked. A rough ride with PSR starting about 2017 hurt customers; strained relationships with rail labor; and ultimately affected our standing with the public, elected officials and regulators. Then came East Palestine. So even if short lines have fans, we’re part of a broader ecosystem and we need our Class I friends. The Class I carriers are changing fast, and I’m glad to be part of the renewed push by the entire rail industry to return to the public’s good graces. You must earn your way back. There are no shortcuts.

DI: You’re a leader in D.C. now. How would you advise a young person wanting to make a career in policy?

CB: First, you must find a field that interests you. Being successful in anything requires grunt work and persistence. Even in my role today, there are only five to ten hours of any week that anyone would call “glamorous,” such as having a conversation with a Member of Congress or an off-therecord talk with agency leadership. The rest is a neverending grind, and it’s only doable because I find short lines and railroads inherently interesting and worth doing. So whatever field you choose, it must grab you. You want to feel like you’re working for the good side, like I do. Second: Show up. You succeed by consistently working hard and saying “yes” to assignments. It won’t take long before you find yourself in a good spot. Finally, and perhaps this is the rarest quality, be nice to people. Life is too short to be a jerk. It’s a small world. You’re constantly running into the same people in D.C. in new jobs. One day, someone is in a role where they need you, and the next day you have a different assignment, and you need them. Life is more pleasant with a brighter path if you’re nice and respectful to everyone even when—especially when—you don’t have to be.

CLASS II/CLASS III INSIGHTS

NEXT GEN RAIL SYSTEMS

October 30 & 31, 2025

Hyatt Regency Jersey City

Jersey City, NJ

TRAIN CONTROL AND BEYOND

Next-Gen Train Control is now Next-Gen Rail Systems

Railway Age’s Next-Gen Train Control has been the industry’s single-most important communications and signaling event since 1995. For our 30th anniversary, we are expanding our program to encompass the entire system. Expert-led sessions will examine the complex integrations incorporating signaling, train control, telematics, artificial intelligence, deep data analysis, cybersecurity measures and more.

Register and connect with industry leaders, explore innovations, and stay ahead of rail project trends and regulations.

Sponsorships: Contact Jonathan Chalon, 212.620.7224, jchalon@sbpub.com

Speakers Include

Kris Kolluri President & CEO NJ Transit

Clarelle DeGraffe General Manager PATH

Dustin K. Lange Sr. Dir. Engineering Norfolk Southern

Mario Péloquin President & CEO VIA Rail Canada

Jonathan Kirby Sr. Dir., NJT PTC NJ Transit

Brian Yeager Dir., Advanced Tech. & Train Reliability Norfolk Southern

Supporting Organizations

Tom Prendergast CEO Gateway Development Commission

Matthew Kim AVP, IS Enterprise Strategy CPKC

Steven Vant Chief Engineer C&S Conrail

At MxV Rail’s FAST® Loop, fastener test zones feature various tie plates, fasteners, spikes, and anchors installed on a six-degree curve with five inches of superelevation.

HOLD A TIGHT

Railroads rely on suppliers for cost-effective fasteners that perform reliably and safely.

BY CAROLINA WORRELL, SENIOR EDITOR

There are numerous ways to fasten a rail to a crosstie.

These include traditional spikes and a wide variety of elastic fasteners (clips), which are available to suit any application. Gauge-holding capability, resiliency, noise reduction, ease of installation and maintenance, low lifecycle cost, and safety are just some of the qualities railroads rely on in order to function under heavy traffic ranging from heavy-haul freight to high-speed passenger rail to transit.

Railway Age contacted fastening system suppliers to find out about their latest technologies, which are evaluated at facilities like MxV Rail. Following is a roundup of offerings from those which responded to our inquiries.

J.LANFRANCO

J.Lanfranco fastener systems are focused on a clear promise to rail operators: maximize safety and track time, the company tells Railway Age . Field reports confirm measurably longer maintenance intervals, fewer service interruptions, and durable performance under vibration—benefits that keep crews safer and trains on schedule.

“We’ve expanded our portfolio with all-metal square locknuts engineered for track and frog bolts, complementing our proven ESL & THU dual-slotted locknuts,” J.Lanfranco said. “The nuts can be hand turned on to roughly 90% of height for quick staging and then run down with standard impact tools and can be backed off for alignment and re-torqued as needed—practical features

that shorten installation time and reduce risk on site.”

With large inventories of finished goods and raw material in North America, J.Lanfranco says it has “insulated customers from longer mill lead times. As tariff uncertainty shifts some buyers from long blanket orders to larger spot purchases, we’ve tuned stocking and planning for reliable JIT delivery. Our biggest challenge is a good one: bringing new machines online to match strong demand.”

J.Lanfranco locknuts are approved for jointed rail, specialty trackwork, structures, and rolling stock, and are stocked across the U.S. and Canada in standard sizes and dimensions. With expanded product capability, resilient local supply, and faster, familiar

PERFORMANCE ON TRACK®

Buy America Fixation Solutions for Future-Proof Networks

Our rubber-bonded special trackwork direct fixation fasteners are designed and made in America to reduce noise and vibration, with a stiffness rating as low as 55,000 lbs/inch. Available in various sizes featuring integrated or welded hardware and allowing for up to 1” of adjustment, these fasteners enable efficient installation and reduce maintenance.

As part of our comprehensive suite of track system solutions, these fasteners are ideal for complex layouts and are fully compatible with Nortrak special trackwork — no costly retrofits are required.

Are you planning to upgrade your rail infrastructure or start a new project? Get in touch with your Nortrak Sales Professional to learn how we can assist you.

installation, the company says it “helps railways reduce risk, compress work windows, and maximize safe track time.”

LEWIS BOLT & NUT COMPANY

“At Lewis Bolt & Nut Company, we are continually investing in research and development to bring innovative fastening solutions to the rail industry,” said VP of Sales George Apostolou. “Our focus is on improving performance, reliability, and ease of installation for our customers. Internally, we leverage advanced manufacturing technologies and quality-control systems to ensure consistency and efficiency across all product lines. This commitment to innovation—both in the products we design and in the processes we use to produce them—allows us to stay ahead of industry needs and deliver solutions that help our customers maintain safer, more cost-effective track infrastructure.”

Market conditions have shifted over the past year, with tariffs and

global supply chain pressures driving up costs for many in the industry, the company tells Railway Age. “As a domestic manufacturer, we’ve been largely insulated from those disruptions, allowing us to maintain stable lead times and reliable supply. Demand has remained steady, so our focus continues to be on efficiency and supporting our customers with consistent, high-quality fastening solutions.”

“Market conditions in 2025 were relatively flat,” notes Apostolou, adding that the company’s overall business outlook for 2026 “is positive as we continue to roll out the Viper-1® rail anchor and remain the largest domestic manufacturer of fasteners.”

MXV RAIL

At MxV Rail’s FAST® Loop, fastener test zones feature various tie plates, fasteners, spikes, and anchors installed on a six-degree curve with five inches of superelevation. Since the construction

of the new loop, these zones have accumulated more than 240 MGT under an 18,000-ton train of 315,000-pound freight cars operating at 40 mph, said Scott Cummings, AVP Research and Innovation, MxV Rail.

“Testing is being conducted on tie plates with elastic fasteners and curve block plates, which provide greater resistance to rail rollover and gauge widening compared to traditional AREMA plates. Newly designed anchors and screw spikes aimed at improving anchor slip/spike holding performance are also being evaluated against conventional components. In addition, a screw spike design intended to reduce spike breakage on bridges is under testing. To date, no significant component failures have been observed.”

In the meantime, Cummings says that ongoing track stability research is also investigating the role of fasteners and anchors. “While there are currently no direct comparisons of fasteners and

anchor types for RNT-related tests, the different longitudinal restraints are important for current RNT and track buckling modeling efforts.”

Complementing the field work, a laboratory study is being conducted to assess the performance of four commonly used anchors in the industry, according to Cummings. The testing considers the effects of accumulated MGT, the number of reapplications, and anchor sliding.

L.B. FOSTER

As a trusted name in rail infrastructure for more than a century, L.B. Foster says it “continues to lead the way in direct fixation fastener technology, adapting to evolving market dynamics and capitalizing on new opportunities in a rapidly transforming industry.”

L.B. Foster’s direct fixation fasteners have long been a cornerstone of reliable rail infrastructure, the company tells Railway Age. Today, L.B. Foster is advancing this legacy with nextgeneration fastener systems designed for enhanced performance and ease of installation. These systems feature:

• Vulcanized rubber-bonded technology for superior vibration and noise mitigation.

• I mproved electrical isolation and reduced component complexity for streamlined maintenance.

• C ustomizable configurations including canted and non-canted rail seats, lateral adjustment capabilities, and compatibility with existing anchorage points.

With more than 60 qualified fastener designs and more than five million units delivered, L.B. Foster says, “it remains committed to innovation that meets the evolving needs of transit agencies and engineers alike.”

Federal infrastructure grants, including IIJA and CRISI funding, “are proving to be strong tailwinds for L.B. Foster and continue to drive demand for heavy rail and transit upgrades, creating opportunities across the business,” the company added.

HOWMET

This month, Howmet is releasing its new Bobtail® R, which the company says is

“everything manufacturers have come to expect from Huckbolts®.”

“It is permanent, reliable, and maintenance-free,” Howmet tells Railway Age. “It also installs using standard Bobtail® tools so it’s easy to train assemblers to use it, eliminating the need for skilled welders on those joints. Bobtail® R also delivers the expected Huck® strength because, unlike traditional bolts and nuts, it installs using direct tension. This installation method delivers controlled clamp, high tensile strength, and high shear resistance,” according to the company.

The difference is, unlike traditional Huckbolts®, Bobtail® R is fully removable with torque tools. Whatever tool a manufacturer uses today to install a traditional bolt and nut can be used to remove Bobtail® R when it’s time for service or repair.

“To us, this is a step change in our technology. It’s really exciting. Bobtail® R is an easy-to-install, vibration-resistant, permanent fastener. Until you don’t need it to be,” Howmet said.

The company also launched another new product in April 2025 that is intended for electrified systems. The Huck® Grounding Stud is engineered to provide reliable conductivity to the electrical circuits. It installs using standard Bobtail® tooling, with interferencefit knurls that provide good contact to produce conductivity. Like all Huckbolts®, it’s a permanent, vibration-resistant installation, and the consistent clamp delivered during installation means that the contact “is consistent and repeatable with every installation,” Howmet said. “Another key benefit is that the installation is easy to learn and fast and doesn’t require skilled welders or the surface prep required with weld studs.”

Besides updates from a technology standpoint, Howmet says it has “seen volatility in the commercial transportation markets due to tariff and regulatory uncertainty.” “We’re still positioned well because we manufacture the majority of our products in the U.S., and that gives manufacturers some measure of certainty and stability,” Howmet said. Additionally, the company says it has

“very few issues with sourcing,” but that it does source wire for its fasteners well in advance of manufacturing. “Sudden market changes can cause friction, but we do our best to stay ahead of that by monitoring market conditions and staying in close contact with our OEM customers. We do source some of our materials from non-U.S. sources so we have seen a tariff impact there but are doing what we can to mitigate that where we can,” Howmet added.

MSU RCMP MARKS

20 YEARS

BY VAL KUCHERENKO, DIRECTOR OF RAILWAY EDUCATION, MICHIGAN STATE UNIVERSITY.

Michigan State University’s Center for Railway Research and Education, housed at the Broad College of Business, marked a major milestone in 2025 as it convened its 20th iteration of the Railway Management Certificate Program (RMCP). Established in 2007, RMCP has become the gold standard for rail leadership development, thanks to the support from industry visionary Ed A. Burkhardt. This year’s cohort is the largest ever, featuring 41 mid- and senior-level professionals from

27 freight and passenger rail organizations spanning 19 U.S. states and Mexico.

The program’s steady growth reflects the rail industry’s appetite for specialized education that marries academic rigor with real-world immersion. During the past two decades, more than 300 alumni have graduated from RMCP, advancing into executive and technical leadership roles across the industry. Participants praise RMCP for its deep dive into the complex ecosystem of rail, its unmatched networking opportunities, and its ability to catalyze career breakthroughs.

FOUR-MODULE JOURNEY

RMCP is structured into four intensive weeklong modules, each delivered in multiple locations to give participants hands-on exposure to the spectrum of rail operations, regulation, technology, and strategy. Every year, MSU refines the content to reflect emerging trends and partner with new industry leaders.

Module 1, “Railway Business Administration, Strategy, and Leadership,” lays the foundation with an immersive experience on MSU’s East Lansing campus. Participants engage with top faculty from MSU’s nationally ranked Supply Chain Management

FEATURED SPEAKER

JIM VENA CEO Union Pacific

TOPICS INCLUDE:

• Redrawing the U.S. Class I Network

• Surface Transportation Board Perspectives

• Freight Rail Business Development Strategies

• Technological Breakthroughs

• Locomotives: Moving Beyond Diesel

MAR. 10, 2026

EDUCATION & TRAINING

department, exploring marketing, strategic decision-making, strategy, negotiation and organizational leadership. In-class case studies put students in the driver’s seat of board-level challenges, evaluating pricing strategies, and operational trade-offs that define today’s rail networks.

Module 2, “Railway Regulation, Safety, and the Rail Industry,” moves to the nation’s capital and the New Jersey/New York harbor region. In Washington, D.C., senior leaders from federal agencies, Senate Commerce Committee staff, advocacy organizations and a Class I railroad participate in classroom discussions on rulemaking, compliance, accident investigations, and the evolving regulatory landscape. An overview by the national passenger rail corporation, along with a site visit to a major commuter rail headquarters, provides insight into coordinating passenger services across complex national and metropolitan corridors. In Newark, participants tour port facilities and an intermodal terminal to explore how rail integrates with maritime and trucking networks to move international freight efficiently.

Module 3, “Railway Technology, Research, and Development,” transports the cohort to Fort Worth, Tex., and Pueblo, Colo.—two hubs of rail operations, advanced manufacturing and innovation. In Fort Worth, the participants have a chance to see next-generation initiatives in network optimization, predictive maintenance, and digital signaling. Pueblo opens doors for deep dives into material science, full-scale testing of equipment and track components, and breakthroughs in alternative fuels and automated operations. A visit to a leading steel making facility underscores the rail maintenance side of innovation.

Module 4, “Railway Operations,” commences in Indianapolis and continues in Chicago—areas central to North America’s rail network. Indianapolis hosts tours of a major locomotive manufacturer and a passenger-equipment maintenance facility, illustrating the lifecycle of rolling stock from assembly to overhaul. In Chicago, the world’s busiest rail hub, experts in dispatching, terminal operations, traffic management and commuter rail guide participants through real-time decision support systems and data-driven scheduling practices that keep thousands of cars and locomotives moving smoothly across the network.

PREVIEWING RMCP 2026

With the silver anniversary of RMCP, CRRE is already laying groundwork for next year’s cohort. The core four-module framework remains, but participants can expect deeper integration of strategic business tools, sustainability practices, and cross-modal insights. Highlights of the 2026 program:

• Module 1: Railway Business Administration, Strategy, and Leadership. April 27-May 1, MSU Campus, East Lansing, Mich.

• Module 2: Railway Regulation, Safety, and the Rail Industry. June 15-19, Washington, D.C., and Newark, N.J.

• Module 3: Railway Technology, Research, and Development. Sept. 28-Oct. 2, Fort Worth and Pueblo, Colo.

• Module 4: Railway Operations. Nov. 2-6, Indianapolis and Chicago.

Registration for RMCP 2026 is now open. Early-bird tuition and detailed curriculum information are available at raileducation. com. Prospective applicants are encouraged to secure their spot early, as demand continues to exceed available seats.

EMPOWERING NEXT-GEN RAIL LEADERS

As the rail industry responds to economic shifts, technological innovation, and sustainability imperatives, the demand for knowledgeable, agile leadership has never been greater. MSU’s RMCP offers a distinctive blend of academic rigor, peer engagement, and immersive site-based learning, equipping professionals to lead with vision and operational excellence. Whether your focus is strategic planning, regulatory compliance, customer service and operations, or technology deployment, RMCP provides the insights, capabilities, and connections to advance your career and shape the future of rail.

For more information on RMCP 2025 outcomes or to inquire about RMCP 2026 enrollment, contact the CRRE team at kucheren@msu.edu or call (517) 353-5667. Visit raileducation.com to download the full program brochure and discover how MSU is redefining rail leadership education in its 20th anniversary and beyond.

DETECTING TRESPASSER HOTSPOTS IMPROVING RAIL OPERATIONS USING AI AND MACHINE LEARNING

BY SAMANTHA KIRKPATRICK, SENIOR DATA SCIENTIST, ENSCO, INC.

Trespassing along a rail corridor remains one of the most important and challenging issues that railroad operators face every day. Trespassing on railroads has resulted in many unfortunate incidents that can have significant impact on railroad operations including trauma to the crew, time delays, and financial loss. Currently there are methods in place by rail operators to help in reducing the number of incidents, such as physical barriers and signage. However, these conventional methods have limitations, as they are

costly, often incomplete, and difficult to maintain.

In recent years there have been many improvements in technology with artificial intelligence (AI) and machine learning (ML) methodologies. These new methodologies are not only capable of expanding upon the current methods mentioned above by potentially pinpointing areas of focus, but they also offer promising new solutions to improve safety in railroad operations and reduce trespassing incidents by predicting where trespassing is likely to occur. By examining anonymized location data from devices operating

within geofenced rail corridors, areas can be identified where users are suspected to “linger,” which often indicates higher regions of trespassing, or trespassing hotspots.

Through a project with the Federal Railroad Administration (FRA), ENSCO utilized the Transportation Technology Center (TTC) in Pueblo, Colo., to explore how new AI and ML methods can be used to help reduce trespassing incidents and reduce operational risk. The TTC offers the ability to test multiple different safety scenarios in one controlled space. On the ground testing of Al models allows for easy adjustments

TTC OPERATED BY ENSCO

and a quick turnaround of results.

OVERVIEW OF AI AND MACHINE LEARNING SOLUTIONS

AI and ML have emerged as powerful technologies for addressing complex challenges in railroad operations. These methods allow computer algorithms to continuously learn and identify patterns even within large datasets. This allows for continuous monitoring with the potential to differentiate between what is trespassing and authorized behavior. A key component in determining trespasser hotspots is the use of anonymized location data from mobile devices along the rail corridor. Reviewing this historical data along the rail corridor allows AI and ML models to distinguish patterns in human behaviors and identify areas where trespassing is likely to occur and report them as trespasser hotspot locations.

To effectively reduce trespassing incidents AI and ML models need to accurately detect when and where unauthorized access occurs along the rail corridor. Models can distinguish these patterns to determine hotspots along with other important factors like time of day, physical location, and velocity. These factors and others all play a role in using ML models to differentiate patterns and predict human behavior. Integrating location data not only enables rail operators to predict and prevent future trespassing incidents but also potentially detect near-real-time active trespassing events. This targeted approach allows for more rapid and informed decision making to proactively reduce trespassing incidents and improve railroad operations. Decreasing trespassing activity would reduce delays, allowing for increased operations and less time and money spent.

TRANSPORTATION

TECHNOLOGY CENTER

One limitation of using anonymous historical location data is that it is difficult to verify and be 100% certain of what is shown in the data without a ground truth analysis. A ground truth analysis is vital to test the accuracy of AI and ML models and can also be

used to generate a controlled data set. To complete a ground truth assessment ENSCO researchers generated different testing scenarios at the TTC.

The TTC provided a safe and controlled space to simulate various pedestrian behaviors around railroad tracks and features. The TTC has more than 50 miles of test tracks with different railroad features that allowed the ENSCO team to gather data from a variety of realistic scenarios. During these scenarios, researchers simulated both trespassing behavior and normal human behavior to gather realistic data to test the accuracy of AI and ML models. Some of the different scenarios include unauthorized walking along the track, legal sidewalk crossing, and loitering near the track. To complete the ground truth analysis, multiple burner phones were utilized during each scenario to generate mobile device location data. This data was then evaluated by the ML models and output potential trespassing hotspots. With the new models several patterns were identified as trespassing events and ENSCO was able to validate patterns were accurately detected as trespassing.

BENEFITS

Implementing AI and ML solutions for detecting railroad trespassers offers substantial benefits, with significant potential to improve overall railroad operations. AI and ML models enable railroad personnel to intervene proactively rather than reacting after incidents occur, potentially reducing the number of future trespassing incidents. By improving hotspot detection, rail operators can strategically allocate resources to areas of greatest concer, which can minimize spending and maximize resources. Such targeted interventions have the potential to significantly decrease the number of trespassing incidents, resulting in fewer delays and downtime on rail property.

In rural areas, where monitoring large expanses of track is challenging due to limited resources, these new models can provide efficient surveillance over extended distances allowing railroad

operators to allocate more time to dayto-day operations. In densely populated urban settings, advanced analytics can distinguish normal, everyday movement from genuine trespassing threats, minimizing false alarms and improving enforcement efforts. Overall, integrating AI and ML methods into railroad trespassing detection will not only benefit rail operators but lead to a safer rail environment.

At the same time, privacy considerations and data security remain at the forefront of this research, requiring constant vigilance to ensure anonymity and compliance with evolving privacy standards. The significant benefits provided by the advanced ML models in trespasser detection—faster response times, targeted resource allocation, reduced financial loss, and improvement to railroad operators’ mental health—all highlight the importance of continued innovation in railroad safety.

WHAT’S NEXT?

While these new methods have shown substantial promise in improving railroad safety, ongoing research and development remain essential. Future efforts will extend these innovative technologies from historical analysis and near real time reporting to actively detecting trespassing events as they occur. Creating a user interface that allows railroad operators to investigate hotspots in more detail to suggest prevention infrastructure. Furthering analysis can be done to evaluate after a trespassing hotspot has been identified and prevention methods have been put in place to see if trespassing has decreased in that area. AI and ML models will continue to improve over time and railroad operations will improve with it.

KEITH ANDERSEN

PNW Railcars, Inc.

HIGH PROFILE: Keith Andersen has joined PNW Railcars, Inc. (PNWR), a subsidiary of Mitsubishi HC Capital Inc., as Chief Commercial Officer. He is responsible for driving revenue growth and strengthening operations at the full-service railcar leasing, maintenance, and management company headquartered in Portland, Ore. Andersen, based in Chicago, has more than 30 years of experience in railcar leasing and operations, plus expertise spanning the full range of railcar asset types. He served previously as Senior Vice President of Sales for Wells Fargo – First Union Rail and spent much of his career in senior leadership roles, most notably as Executive Director of Sales and Leasing at Wells Fargo Rail and its predecessor organizations. Andersen holds an M.B.A. from Lake Forest Graduate School of Management.

DOUG RECKER

Duos Technologies Group, Inc.

HIGH PROFILE: Doug Recker has been named a Corporate Officer and President of Duos, reporting to Chuck Ferry, CEO. A telecommunications and data center executive with more than 30 years of experience, Recker has been “a driving force behind Duos’ expansion into the Edge Data Center (EDC) and colocation markets through the company’s Duos Edge AI subsidiary,” the company said. In his new role, Recker will assume broader leadership responsibilities, leveraging his expertise to advance Duos’ strategy in Edge AI, and digital infrastructure solutions. In addition, he will continue to oversee the design implementation and deployment of Duos Edge Data Centers, “which will facilitate more robust connectivity and compute capabilities to underserved communities as well as help broaden reach for schools, hospitals, local governments, local fiber carriers and first responder networks,” Duos said.

M etropolitan Atlanta Rapid Transit Authority (MARTA)

Interim General Manager and CEO

Jonathan Hunt has restructured the agency’s leadership team “with a renewed focus on operational safety, reliability and project delivery.” “The way to rebuild public trust in MARTA is by

delivering routine excellence every day,” Hunt said. “I believe these organizational changes will strengthen accountability, create space for innovation, and enhance service delivery.” MARTA Chief Customer Experience Officer Rhonda Allen was appointed Deputy General Manager, and will oversee several critical departments

including the Divisions of Customer Experience and Technology, Operations and Urban Planning, Capital Programs, Engineering and Infrastructure, and Administrative Services, as well as the Department of Police Services and Emergency Management. Larry Prescott, Assistant General Manager of Infrastructure, now serves as Interim Chief Capital Officer. While Prescott has been involved with the planning and development of MARTA’s capital projects, MARTA has launched a national search to identify a permanent leader to take on this role. Chief of Operational and Urban Planning Paul Lopes expanded his responsibilities to include oversight of all transit operations including Bus, Rail, Mobility (paratransit), and the Streetcar.

Tri-County Metropolitan Transportation District of Oregon (TriMet) named Inessa M. Vitko as Chief Operations Officer and promoted Mary L. Hill to Executive Director of Transportation. “The promotions come at a time of historic change at TriMet,” the agency reported. “They are part of an agency-wide focus to improve fiscal efficiency and stewardship. Over the summer, TriMet announced a large-scale effort to reduce costs amid a significant and growing budget gap and impending fiscal cliff. Changes to the agency’s executive leadership team are among the many steps TriMet is taking to achieve a balanced budget by July 2028.” Vitko joined TriMet in 2006 as a training services administrator, and Hill began her agency career in 2003 as a bus operator. Coincidentally, both left TriMet to gain additional experience at C-TRAN, before returning in the 2020s for more challenging roles. Formerly TriMet’s Senior Director of Operations Command Center and Rail Operations, Hill joins TriMet’s executive leadership team in her new role, assuming the position previously held by Vitko, who holds a Master of Public Administration and a bachelor’s degree in mathematics and statistics from Portland State University. Hill holds a master’s degree in business administration and a bachelor’s degree in business management, both from Western Governors University.

How Leaders Navigate Uncertainty and Come Out Stronger

The North American rail industry has never faced more simultaneous pressures. Federal tariffs and mandates, regulators requiring training updates and technology upgrades, supply chain disruptions, labor negotiations that could shut down networks, activist investors challenging financial returns, and new environmental regulations that reshape operations overnight.

For rail executives, the question isn’t whether you’ll face your next crisis. It’s whether you’ll be ready to lead through it when it arrives.

After studying more than 100 organizational transformations, including dozens within rail operations and heavy industry, I’ve identified a pattern among leaders who don’t just survive uncertainty— they transform it into competitive advantage. They follow a four-stage cycle that turns crisis into opportunity.

Stage One: Heighten Awareness. When new federal safety regulations hit Louisa Martinez’s freight network (all names changed to maintain corporate privacy requirements), requiring complete signaling system overhauls across 15,000 miles of track, her first instinct wasn’t to call an emergency planning session. Instead, she spent three days in the field, asking track supervisors, signal maintainers and yard workers one question: “What are you seeing about this challenge that I’m not?”

What she discovered changed everything. While corporate was panicking about compliance costs, frontline crews were identifying track segments where new technology could improve efficiency beyond regulatory requirements. They saw opportunities to consolidate maintenance windows and reduce delays that had plagued certain corridors for years.

The lesson: Your track-level employees see realities that boardroom discussions miss. Before you plan your response to any crisis, collect intelligence from those closest to the operations. They often hold the keys to solutions that pure compliance thinking overlooks.

Stage Two: Increase Clarity. Rail operations demand precision, but uncertainty demands flexibility. The challenge is creating

clarity that enables both.

Louisa didn’t try to plan every detail of her massive transformation. Instead, she established three “Safety-First Decision Anchors” that every team could use:

• If it compromises safety, we don’t do it—period.

• We share knowledge across all divisions immediately.

• We test small, learn fast, and scale what works.

These anchors meant that when crews encountered unexpected conditions during installations, they could make quick decisions without waiting for corporate approval. A signal maintainer in Kansas could immediately share a solution with teams in Montana, Montreal or Monterrey. Pilot programs could prove concepts before system-wide rollouts.

Your job isn’t to eliminate uncertainty— it’s to create decision-making frameworks that work within uncertainty.

Stage Three: Build Alignment. Here’s where most rail transformations fail. You have a clear plan, but you still have multiple stakeholder groups pulling in different directions.

Consider James Chen, who led the operational integration of two major rail networks after an acquisition. These systems had been competitors for decades, with different safety protocols, equipment standards and operational philosophies. The potential for safety incidents during integration was enormous.

Instead of imposing one system on the other, James brought safety teams from both networks together with a single challenge: design the safest rail operation in North America using the best practices from both systems.

Within eight weeks, crews stopped identifying as “Company A” or “Company B” and started identifying as the team setting new industry safety standards. They weren’t just merging railroads—they were building something neither could achieve alone.

The key: Give people a shared mission that’s bigger than their individual concerns. In rail, safety is that mission.

Stage Four: Drive Momentum.

Momentum in rail operations isn’t about speed. It’s about sustained progress in the right direction. After achieving early wins, the strongest rail leaders understand a crucial insight: Success in one area reveals new challenges in others.

As Louisa’s safety transformation succeeded, she started noticing other pressures that had been masked by the original crisis. Supply chain issues affecting equipment deliveries. Labor negotiations heating up. Environmental regulations requiring new operational procedures. Each success gave her the credibility and organizational confidence to tackle the next challenge.

This is the hidden truth about leading through uncertainty: The four stages— Heighten Awareness, Increase Clarity, Build Alignment, Drive Momentum form a continuous cycle. Your success in addressing one challenge gives you the visibility and capability to see the next one coming.

The Rail Reality. Our industry operates in an environment where a single decision can affect thousands of miles of track, hundreds of communities and millions of tons of cargo. We can’t afford to wait for perfect information or ideal conditions.

The rail leaders who thrive in this environment understand that uncertainty isn’t something to eliminate. It’s something to navigate systematically. They use these four stages not once, but continuously, as each challenge reveals new opportunities for operational excellence.

The next time you face a crisis—and in rail, there’s always a next time—remember: You don’t need all the answers. You need to know which questions to ask first, and of whom to ask them.

Your track crews are waiting to tell you what they see. Are you ready to listen?

PAULINE LIPKEWICH

Contributing Editor; Chief Transformation Officer, KingdomBuilding Leadership, Inc.

Mechanical Department Regulations

FRA is withdrawing the direct final rule titled ‘‘Federal Railroad Administration Accident/Incident Investigation Policy for Gathering Information and Consulting with Stakeholders,’’ (the Rule) which was published on October 1, 2024. Effective July 22, 2025.

Part 213: Track Safety Standards

49 Part 213, Subparts A-F. Classes of Track 1 through 5: Applies to track required to support passenger and freight equipment at lower speed ranges. Includes Defect Codes and Appendices A, B, and C to Part 213. Softcover. Spiral bound. Updated 7-1-25.

Track Safety Standards $13.95

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Part 214: Railroad Workplace Safety

The FRA’s Railroad Workplace Safety standards address roadway workers and their work environments. Subparts A-General, B-Bridge Worker Safety Standards, C-Roadway Worker Protection, D-On-Track Roadway Maintenance, and Defect Codes for Part 214. Spiral bound. Updated 7-1-25

BKWRK Railroad Workplace Safety $13.95

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Bridge Safety Standards

FRA Part 237 establishes Federal safety requirements for railroad bridges. This rule requires track owners to implement bridge management programs, which include annual inspections of railroad bridges if the weather or other conditions warrant such inspections, and to audit the programs. Part 237 also requires track owners to know the safe load capacity of bridges. Updated 7-1-25

BKBRIDGE Bridge Safety Standards $14.00

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Part 228: Passenger Train Employee Hours of Service; Recordkeeping and Reporting; Sleeping Quarters

49 CFR 228 for records, recordkeeping, and reporting of hours of duty of a railroad employee. Also covers the construction of employee sleeping quarters and health requirements for camp cars. Softcover. Spiral bound. Updated 7-31-25.

BKHS Hours of Service of RR Employees $16.00

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