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Annual Report 2011
RSI	ANNUAL	REPORT	2011

                                      TABLE OF CONTENTS

                                    SUPPORT	                       2

                                    			About	RSI	                  2

                                    			Chairman’s	message		        4

                                    			RSI	leadership	             6	
                                                                    	

                                    			RSI	industry	committees		   8	
                                                                    	

                                    			Tank	car	update	            12

                                    			RSI	membership	             14

                                    			Scholarship	program	        16

                                    CONNECTION		                   17

                                    			Conferences	and	events	     17

                                    ADVOCACY	                      22

                                    			RSI	work	in	Washington	     22

                                    			Bob	Clement	reports	        24

                                    			Advocacy	efforts	           26

                                    			Operation	Lifesaver	        28

                                    			Coalition	building	         30

                                    Membership directory	          31

                                    Advertising index	             44




Published for RSI by
Simmons-Boardman Publishing
Corporation,
345 Hudson Street, 12th Floor,
New York, NY 10014.

Design by Wendy Williams.
Cover photo by
Steve Schmollinger.
Photo, this page, by Bruce Kelly.




RSI ANNUAL REPORT 2011                                                  1
| RSI ANNUAL REPORT 2011                                                       | SUPPORT |



ABOUT RSI




        We are your voice in Washington
        The Railway Supply Institute acts on behalf          Connection…Railway suppliers are connected
        of the largest and smallest suppliers to North       and strengthened by RSI. RSI members meet
        American freight and passenger railroads and         and do business with freight and passenger
        their employees. As the only all-inclusive trade     railroads and other suppliers at annual confer-
        association for the entire rail supply industry,     ences, trade shows, and industry events. We are
        RSI represents a diverse group involved in the       the center of the industry network, helping to
        manufacture of products and services in the          make contacts for our members with key play-
        freight car, locomotive, maintenance-of-way,         ers in the companies that work in the rail and
        communications and signaling, leasing, and           rail supply industries.
        passenger rail industries.
                                                             Advocacy…RSI is your voice in Washington.
        RSI connects members to their customers and          RSI has a presence on Capitol Hill and among
        partners, supports industry improvements,            the regulatory agencies that write the rules for
        assists members in the global marketplace, and       the rail industry. RSI continually advocates safe,
        represents the industry during the regulatory        sensible, and efficient solutions that work for
        and legislative process.                             rail, suppliers, and the people who depend on
                                                             us to move their goods. RSI aids members in
        Support…Railway supplier support is important        communicating their interests to legislators,
        to the railroad industry. RSI manages seven          regulators, and other industry stakeholders.
        industry committees on such critical issues as
        the safe transportation of hazardous materials,
        grade crossing safety, and technical standards.
        Our committees help members collaborate and
                                                                                                                  bruce kelly




        resolve the technical, legislative, and regulatory
        issues unique to the rail supply industry.




2                                                                              RSI ANNUAL REPORT 2011
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| RSI ANNUAL REPORT 2011                                                           | SUPPORT |



CHAIRMAN’S MESSAGE


                             Dear RSI Members and Friends:
                              The Railway Supply Institute had an extraordinary 2011. RSI delivered on its
                              mission to connect members to their customers and partners, support the
                              improvement of the industry, and advocate for the industry during the
                              regulatory and legislative process.
                                 In September, nearly 9,000 railroaders and railway suppliers descended
                              on Minneapolis for Railway Interchange 2011. Of those in attendance, 3,000
                              were there for RSI and the Coordinated Mechanical Associations (CMA) tech-
                              nical sessions. The show exceeded expectations. RSI, along with Railway
                              Engineering-Maintenance Suppliers Association (REMSA) and Railway Sys-
                              tems Suppliers, Inc. (RSSI), quickly sold out exhibit space in the Minneapolis
                              Convention Center and Canadian Pacific’s Humboldt Yard. Minneapolis was
                              the culmination of a two-year planning process, and my congratulations
                              to the staffs of RSI, REMSA, RSSI, and American Railway Engineering and
                              Maintenance-of-Way Association (AREMA) for making the show a success.
                                  As a full-service trade association, RSI does more than host trade shows.
                               Our program committees act as an integral part of our mission to serve
                               railway suppliers: They bring our members together to discuss issues of inter-
          RSI Chairman         est and connect with railroads and state and federal governments. They also
          Gregory P.           span a wide array of interests across the supply industry. For example, our
          Vogelman,            Committee on Tank Cars leads the industry in tank car safety and security
                               issues, while the State Tax Committee works diligently to curb onerous taxes
          GE Rail Services
                               placed on freight cars by various state legislatures. And in addition to working
                               with the Association of American Railroads on freight car design issues, the
                               American Railway Car Institute (ARCI) committee supplies quarterly freight
       car order and delivery data to Wall Street analysts and government officials. I urge you to take a
       careful look at RSI’s industry committees and see where your company might benefit from joining.
          While the new Congress has challenged RSI, it has not hindered our progress. Our government
       relations team, Nicole Brewin and the Honorable Bob Clement, is well known on Capitol Hill as the
       voice of the rail supply industry. Supported by our members, coalitions, and industry partners, RSI
       continues to promote supplier issues by introducing RSI to new members of Congress, meeting
       with committee leadership, and testifying at committee hearings.
          The year also brought new opportunities for RSI’s advocacy team. I had the privilege of join-
       ing the RSI staff and fellow board members in a White House meeting with the Administration’s
       Domestic Policy Team—the first meeting of its kind. After passing through White House security,
       we had an hour-long meeting with Administration representatives, discussing the importance of
       the supply industry for jobs and issues facing RSI members and their customers.
          As I look forward to 2012, I see more opportunities for RSI and our membership. We’re returning
       to Chicago for RSI/CMA 2012 and will hold Railway Interchange 2013 the following year in India-
       napolis. An election year, 2012 will bring a new Congress that needs to hear from us. RSI will ask
       you to participate in the political process. You see, Congress can give and Congress can take away,
       thus your participation is needed to speak out on what harms and helps our industry. When RSI
       asks for your help, I urge you to give it for the benefit of yourselves and your customers.
           While my term is ending, I know that RSI will continue to effectively represent the rail sup-
       ply industry. The RSI board, with the dedicated leadership team of Mike Mitrovich, Rob Mat-
       thews, and Fred Sasser, will continue to promote our organization and its diverse membership.
       I thank them for their support and encouragement throughout 2011. Special thanks to the RSI
       staff of Tom Simpson, Nicole Brewin, Robyn Leach, and Amanda Patrick. They do an amazing job
       and deserve our sincere gratitude. Most important, thanks to our 276 members who help make
       RSI the voice of the supply industry.



4                                                                              RSI ANNUAL REPORT 2011
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• Column Wear Plates (ASF & Barber)            • Carrier Basket Springs                • Locomotive Springs
• Truck Side Frames                            • New Cushioning Units                  • New Locomotive Draft Gears
  (70ton, 100ton, 125ton)                      • Reconditioned Cushioning Units        • Reconditioned Locomotive
• Truck Bolsters                               • Braking Components                      Draft Gears
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• Constant Contact Side Bearings                 - Slack Adjusters
• Cast Draft Sills (Coal & Grain Cars)           - Empty/Load Devices
                                                 - Truck Mounted Brakes
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                                                 - Truck Mounted Brake Rigging         • GPS and condition-based tracking
• M901E/G Draft Gears                                                                    and monitoring
                                               • Wear Prevention Components
• Adapter Steering Pad Systems (M976)            - Coupler Carriers and Wear Plates
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| RSI ANNUAL REPORT 2011                                                         | SUPPORT |



LEADERSHIP


       RSI Board of Directors

       Being part of the Railway Supply Institute             Officers
       Board of Directors can be a difficult and              Chair Gregory P. Vogelman, GE Rail Services
       rewarding assignment. The industry is diverse
       and the needs of an association are many.              Vice Chair Michael J. Mitrovich,
       There are always challenges as well as the             MPL Technology Inc.
       need for forward thinking and leadership—
       whether it is tackling a joint trade show or a         Secretary/Treasurer Robert Matthews,
       new dues structure. The RSI Board shares in            Stella-Jones Inc.
       the responsibility of moving the association
       forward by developing strategies, overseeing           Directors
       events, and coming together to manage finan-           Thomas F. DeJoseph,
       cial and policy issues.                                Loram Maintenance of Way Inc.
          Board members make up small and large               Michael Foxx, Strato, Inc.
       companies involved in the manufacture of
       products and services in the freight car, loco-        Brian Hawkins, Amsted Rail
       motive, maintenance-of-way, communications             Terrence G. Heidkamp, GATX Corporation
       and signaling, and passenger rail industries.
                                                              James R. Higginbottom,
       Not only do RSI Board members come from
                                                              The Okonite Company
       different supply disciplines, they also enhance
       the Board with their talents, experiences,             Michael K. Ogden,
       and resources. It is under the direction of the        Morton Manufacturing Company
       Board of Directors and with the support of the         Fred R. Sasser,
       membership that RSI continues to be a suc-             Chicago Freight Car Leasing Company
       cessful trade association, representative of the
       industry it promotes.                                  Jeff Stearns, Wabtec Corporation
                                                              Edward J. Whalen, FreightCar America, Inc.
                                                              Honorary Director Robert J. Pokorski,
                                                              Miner Enterprises
                                                              REMSA Representative Phil Homan,
                                                              Loram Maintenance of Way, Inc.
                                                              RSSI Representative Thomas J. Ulrich,
                                                              Arthur N. Ulrich Company


       Staff                                                  President Thomas D. Simpson
       The staff of the Railway Supply Institute is a         simpson@rsiweb.org
       dedicated, professional, and knowledgeable
                                                              Assistant Vice President Nicole B. Brewin
       team, eager to serve the rail supply industry in all
                                                              brewin@rsiweb.org
       aspects of association management. Guided by
       the RSI mission of supporting, connecting, and         Office Manager Robyn M. Leach
       advocating for its membership, the staff promotes      leach@rsiweb.org
       the industry through government relations work,
                                                              Membership & Marketing Amanda T. Patrick
       hosting trade shows and marketing events, and
                                                              patrick@rsiweb.org
       creating a forum for industry collaboration.
                                                              Railway Supply Institute, Inc.
                                                              425 Third Street, SW, Suite 920
                                                              Washington, D.C. 20024
                                                              (p) 202-347-4664 • (f) 202-347-0047
                                                              www.rsiweb.org


6                                                                              RSI ANNUAL REPORT 2011
1S
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| RSI ANNUAL REPORT 2011



RSI INDUSTRY COMMITTEES




    Providing a unified, collaborative voice for suppliers
        The direction of RSI’s policy goals are determined     AMERICAN RAILWAY CAR INSTITUTE
                                                               Chair: Martin Graham, Trinity Rail Group, LLC
        by the work and collaboration of its industry com-

        mittees, which support the different disciplines and   The American Railway Car Institute (ARCI) has
                                                               represented the North American freight car build-
        issues of the supply industry. Consisting of RSI       ing industry for more than 75 years. Membership
                                                               consists of major North American freight car
        member companies, the committees provide an
                                                               manufacturers and works in conjunction with the
        opportunity for member involvement and support,        Association of American Railroads (AAR) on freight
                                                               car design standards. In addition, the ARCI tabu-
        and advance railway supply industry goals in the       lates and reports North American freight car statis-
        public and private sectors.                            tics and represents the specific interests of railcar
                                                               builders in legislative and regulatory matters. In
                                                               addition, ARCI’s Engineering and Design Sub-
                                                               committee meets several times a year to address
                                                               freight car design and safety issues.

                                                               The ARCI quarterly freight car statistics are used
                                                               as a barometer on the state of the railway supply
                                                               industry. They are used by organizations such as
                                                               the Bloomberg news and Federal Reserve Board,
                                                               plus financial analysts, component suppliers, and
                                                               others who follow the freight car building industry.




8                                                                                     RSI ANNUAL REPORT 2011
| SUPPORT |




                                                                                        Our committees
                                                                             provide members with
                                                                                an opportunity to get
                                                                             involved by supporting
                                                                              and advancing railway
                                                                            supply industry goals in
                                                                                   both the public and
                                                                                         private sectors.




ARCI AffILIATE MEMbERShIp                                 QUALITY ASSURANCE COMMITTEE
Though membership on the ARCI committee is
restricted to North American freight car builders,        The Quality Assurance Committee (QAC) is an
anyone can become an affiliate member. Typical            advocate for quality and continuous improvement
affiliate members are component suppliers for the         in the performance and safety of the rail supply
freight car industry, leasing companies, and finan-       industry’s products and services. The QAC works
cial institutions. Affiliate members receive quar-        closely with the AAR Quality Committee to ensure
terly freight car statistics and have an opportunity      that member companies receive the information
to be on the Engineering & Design Subcommittee.           they need to implement superior quality programs
                                                          and meet the challenges of today’s marketplace.
EQUIpMENT LEASING COMMITTEE                               Over the years, working with the AAR Quality Com-
Chair: John Kieras, Union Tank Car Company                mittee, QAC has sponsored training programs for
                                                          suppliers who are new to the industry or need
The Equipment Leasing Committee is composed of            refresher courses on key quality issues.
representatives from prominent freight car leasing
companies. Its primary responsibility is to evaluate      STANDARD COUpLER
and guide RSI in key regulatory and public policy         MANUfACTURERS COMMITTEE
issues affecting the leasing industry, which often        Chair: Patrick S. Wallace, Trinity Rail Group
involve railroad service relations issues. In addition,
the committee responds to AAR circular letters and        This committee promotes AAR standard coupler
other railroad proposals that affect private car own-     technology worldwide and meets periodically to
ers. RSI member companies own and provide for             discuss the technical matters confronting standard
lease more than 700,000 railroad freight cars.            coupler manufacturers. The committee also works
                                                          with the rail industry to develop coupler standards
                                                          that reflect the latest in technology and foundry
                                                                                                                        bruce kelly




                                                          practices. This committee is restricted to compa-
                                                          nies that produce standard AAR couplers.




RSI ANNUAL REPORT 2011                                                                                              9
| RSI ANNUAL REPORT 2011



RSI INDUSTRY COMMITTEES


                                                           COMMITTEE ON TANK CARS
                                                           Chair: Joseph Lattanzio,
                                                           GE Rail Car Services

                                                           The	Committee	for	Tank	Cars	(RSICTC)	
                                                           addresses	issues	of	importance	to	tank	car	
                                                           builders	and	owners,	and	regularly	reviews	
                                                           tank	car	requirements	through	its	member-
                                                           ship	in	the	AAR	Tank	Car	Committee.	RSICTC	
                                                           is	at	the	forefront	of	the	latest	research	to	
                                                           improve	tank	car	safety,	and	represents	tank	
                                                           car	manufacturers	in	federal,	legislative,	and	
                                                           regulatory	matters.	

                                                           The	Engineering/Technical	Subcommittee	
                                                           oversees	the	RSI/AAR	tank	car	safety	research	
                                                           project	and	meets	quarterly	with	the	AAR	Com-
                                                           mittee	on	Tank	Cars	to	discuss	tank	car	secu-
                                                           rity,	packaging,	and	operational	issues.	RSICTC	
                                                           publications	can	be	found	on	the	RSI	website	
                                                           at	www.rsiweb.org/rsicommittees_tc.html.

                                                           Membership	to	this	committee	is	restricted		
                                                           to	companies	engaged	in	the	design,	manufac-
                                                           ture,	ownership,	or	leasing	of	railroad		 	
                                                           tank	cars.	

       STATE TAXATION COMMITTEE                            WASHINGTON AFFAIRS COMMITTEE
       Chair: Robert Shank,                                Chair: John Paljug,
       Greenbrier Manufacturing                            Safetran Systems Corporation
                                                           Chair: Thomas J. Gillespie, Jr.,
       The	State	Taxation	Committee,	consisting		          ALSTOM Transportation, Inc.
       of	companies	that	own	and	lease	railroad	
       freight	cars,	monitors	and	acts	on	state	legisla-   The	Washington	Affairs	Committee	(WAC)	
       tive	and	regulatory	issues	that	affect	the	taxa-    is	open	to	all	members	with	an	emphasis	
       tion	of	privately	owned	freight	cars.	Over	the	     on	member	companies	in	the	communica-
       years,	it	is	estimated	that	the	committee	has	      tion	and	signaling,	maintenance-of-way,	and	
       saved	private	car	owners	several	million	dol-       passenger	industries.	Legislative	issues	of	
       lars	in	excess	taxation.                            interest	include:	supporting	the	Section	130	
                                                           highway-rail	grade	crossing	program;	sup-
                                                           porting	railroads	in	securing	tax	incentives	to	
                                                           increase	capacity;	securing	federal	investment	
                                                           for	positive	train	control	and	high	speed	rail;	
                                                           supporting	Amtrak’s	legislative	goals;	support-
                                                           ing	the	Class	I	railroads	efforts	opposed	to	re-
                                                           regulation;	and	lobbying	against	bigger	trucks.	
                                                           In	addition,	the	committee	works	closely	with	
                                                           Operation	Lifesaver	to	reduce	the	deaths	and	
                                                           injuries	at	highway-rail	grade	crossings	and	
                                                           along	railroad	rights-of-way	through	public	
                                                           education	programs.




10	                                                                              RSI	ANNUAL	REPORT	2011
| RSI ANNUAL REPORT 2011



RSI INDUSTRY COMMITTEES


                                                           COMMITTEE ON TANK CARS
                                                           Chair: Joseph Lattanzio,
                                                           GE Rail Car Services

                                                           The	Committee	for	Tank	Cars	(RSICTC)	
                                                           addresses	issues	of	importance	to	tank	car	
                                                           builders	and	owners,	and	regularly	reviews	
                                                           tank	car	requirements	through	its	member-
                                                           ship	in	the	AAR	Tank	Car	Committee.	RSICTC	
                                                           is	at	the	forefront	of	the	latest	research	to	
                                                           improve	tank	car	safety,	and	represents	tank	
                                                           car	manufacturers	in	federal,	legislative,	and	
                                                           regulatory	matters.	

                                                           The	Engineering/Technical	Subcommittee	
                                                           oversees	the	RSI/AAR	tank	car	safety	research	
                                                           project	and	meets	quarterly	with	the	AAR	Com-
                                                           mittee	on	Tank	Cars	to	discuss	tank	car	secu-
                                                           rity,	packaging,	and	operational	issues.	RSICTC	
                                                           publications	can	be	found	on	the	RSI	website	
                                                           at	www.rsiweb.org/rsicommittees_tc.html.

                                                           Membership	to	this	committee	is	restricted		
                                                           to	companies	engaged	in	the	design,	manufac-
                                                           ture,	ownership,	or	leasing	of	railroad		 	
                                                           tank	cars.	

       STATE TAXATION COMMITTEE                            WASHINGTON AFFAIRS COMMITTEE
       Chair: Robert Shank,                                Chair: John Paljug,
       Greenbrier Manufacturing                            Safetran Systems Corporation
                                                           Chair: Thomas J. Gillespie, Jr.,
       The	State	Taxation	Committee,	consisting		          ALSTOM Transportation, Inc.
       of	companies	that	own	and	lease	railroad	
       freight	cars,	monitors	and	acts	on	state	legisla-   The	Washington	Affairs	Committee	(WAC)	
       tive	and	regulatory	issues	that	affect	the	taxa-    is	open	to	all	members	with	an	emphasis	
       tion	of	privately	owned	freight	cars.	Over	the	     on	member	companies	in	the	communica-
       years,	it	is	estimated	that	the	committee	has	      tion	and	signaling,	maintenance-of-way,	and	
       saved	private	car	owners	several	million	dol-       passenger	industries.	Legislative	issues	of	
       lars	in	excess	taxation.                            interest	include:	supporting	the	Section	130	
                                                           highway-rail	grade	crossing	program;	sup-
                                                           porting	railroads	in	securing	tax	incentives	to	
                                                           increase	capacity;	securing	federal	investment	
                                                           for	positive	train	control	and	high	speed	rail;	
                                                           supporting	Amtrak’s	legislative	goals;	support-
                                                           ing	the	Class	I	railroads	efforts	opposed	to	re-
                                                           regulation;	and	lobbying	against	bigger	trucks.	
                                                           In	addition,	the	committee	works	closely	with	
                                                           Operation	Lifesaver	to	reduce	the	deaths	and	
                                                           injuries	at	highway-rail	grade	crossings	and	
                                                           along	railroad	rights-of-way	through	public	
                                                           education	programs.




10	                                                                              RSI	ANNUAL	REPORT	2011
| SUPPORT |




                                 The value of RSI committees
                                 ONE OF THE REASONS CHICAGO FREIGHT CAR LEASING
                                 Company belongs to RSI is because of its member-driven industry
                                 committees. Currently, my company participates in the State Taxa-
                                 tion Committee and the Equipment Leasing Committee. 

                                 The State Taxation Committee represents the interests of 11 RSI com-
                                 panies that own and lease freight cars. At last count, our companies
                                 lease more than 700,000 freight cars combined. The companies meet
                                 periodically to compare notes and collaborate on ways to defeat oner-
                                 ous state taxes that hinder investment. We also develop strategies
                                 to entice states to enact tax credits for freight car repairs. The State
                                 Taxation Committee has saved the industry millions of dollars in state
                                 taxes—money that can be reinvested into our fleets, thus benefiting
                                 component suppliers as well.

                                 We also participate in the Equipment Leasing Committee, which com-
                                 prises the leadership of leasing companies. I have had the privilege
                                 of chairing this committee and, in that capacity, testified before Con-
                                 gress during the debate surrounding the termination of the Interstate
                                 Commerce Commission. 

                                 Because of the work of the Equipment Leasing Committee, key por-
                                 tions of the Interstate Commerce Act were preserved when the Sur-
                                 face Transportation Board (STB) was created. As an added benefit,
                                 the committee visits Washington, D.C., annually to brief STB mem-
               by fred Sasser,   bers on our issues. Access to these decision makers is a benefit that
      Chair of Chicago freight   only RSI can provide.
        Car Leasing Company,
           RSI board Member,     Currently, my company doesn’t participate on other committees, but I
           2012 RSI Secretary    am aware of their benefits and how they represent our diverse indus-
                     Treasurer   try. Every quarter, we look forward to receiving the American Railway
                                 Car Institute’s freight car order and delivery reports to see how the
                                                                                                                 both photos: union pacific




                                 industry is faring. We also recognize the role the Committee on Tank
                                 Cars plays in moving hazardous materials safely.

                                 As a member of the RSI Board of Directors and as a newly elected
                                 Secretary Treasurer, I see the role that RSI’s committees play in our
                                 industry—a role that enhances our influence and makes our industry
                                 stronger. I encourage all of you to take a look at the RSI committees
                                 and see where your company would benefit from participation.



RSI ANNUAL REPORT 2011                                                                                      11
| RSI ANNUAL REPORT 2011                                                     | SUPPORT |



TANK CARS




               RSI:	Leading	the	way	in	safety	and	security
                    The	RSI	Committee	on	Tank	Cars	(RSICTC)	con-          operating	improvements	that	could	lead	to	the	
                    tinues	to	lead	the	effort	to	eliminate	risk	in	the	   safer	transport	of	both	crude	oil	and	ethanol.	
                    movement	of	hazardous	materials	by	rail.	The	         Participants	include	representatives	from	AAR,	
                    RSICTC	also	continues	to	support	the	Advanced	        American	Petroleum	Institute,	Growth	Energy,	
                    Tank	Car	Collaborative	Research	Program,	a	           Renewable	Fuels	Association,	individual	ship-
                    joint	project	with	the	Federal	Railroad	Admin-        pers,	FRA,	and	Transport	Canada.	Task	forces	
                    istration	(FRA),	Department	of	Homeland	Secu-         met	frequently	during	second-half	2011,	and	it	
                    rity,	Transport	Canada,	Association	of	American	      was	anticipated	that	recommendations	would	
                    Railroads	(AAR),	American	Chemistry	Council,	         be	forthcoming	by	that	year’s	end.
                    Chlorine	Institute,	and	Fertilizer	Institute.	The	
                    Program	is	researching	ways	to	improve	the	           In	addition	to	the	above,	RSICTC	continues	
                    safety	and	security	of	tank	cars	that	transport	      to	participate	in	the	RSI/AAR	Tank	Car	Safety	
                    highly	toxic	chemicals.	It	is	expected	that	this	     Research	Project,	which	funds	research	and	
                    work	will	result	in	a	leading-edge	tank	car,	         collects	and	evaluates	information	on	tank	cars	
                    which	will	be	specified	in	the	U.S.	Department	       damaged	in	derailments.	Since	its	inception,	the	
                    of	Transportation	and	Canadian	regulations.           Project	has	collected	data	on	more	than	40,000	
                                                                          damaged	tank	cars.	This	information	has	been	
                    In	May	2011,	FRA	asked	RSICTC	to	develop	a	           used	by	the	industry	to	develop	improved	tank	
                    tank	car,	with	enhanced	crashworthiness,	for	         car	features	that	have	contributed	to	the	ongo-
                    transporting	crude	oil.	The	FRA	is	anticipat-         ing,	outstanding	record	of	transporting	hazard-
                    ing	that	a	large	number	of	these	cars	will	be	        ous	commodities	by	rail.								
                    required	for	unit	trains	transporting	oil	from	
 bruce kelly




                    Canada	and	the	U.S.	Bakken	Shale	fields	to	             — By William Finn, Vice Chair, RSI Committee
                    Texas	for	refining.	RSICTC	took	the	lead,	bring-                    on Tank Cars, and RSI Consultant
                    ing	together	a	coalition	of	parties	to	address	
                    both	tank	car	design	enhancements	and	railroad	



12	                                                                                              RSI	ANNUAL	REPORT	2011
Providing Solutions
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cars to be shopped.                                       solutions for rail and transit cars.

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                                                          which include talented staff, real life
                                                          lab simulation and testing facilities,
                                                          allow us to offer collaborative
                                                          engineering to meet your needs.

                                                          We have the largest line of hose, hose
                                                          related products, weld and pipe
                                                          fittings, pipe clamps and castings for
                                                          tank cars, trucks, draft systems and
                                                          end of car arrangements.

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                                                          “Celebrating our 40th Year in 2012”




    100 New England Avenue
      Piscataway, NJ 08854
Customer Service: (800) 792-0500
       Fax: (800) 378-7286
| RSI ANNUAL REPORT 2011



RSI MEMBERSHIP




     RSI members:
     The strength of the
     supply industry
     RSI members encompass a large segment of the
     U.S. economy, providing jobs for communities and
     innovation for railroads. At RSI, we work to pro-
     mote the rail supply industry and advocate on its
     behalf to enhance our nation’s infrastructure.

     We	serve	our	membership	and	our	industry	by
     encouraging participation: RSI hosts trade shows
     and marketing events; manages industry proj-
     ect committees; and creates opportunities for
     members to meet with elected officials and other
     decision-makers. With better communication and
     outreach to customers, those on Capitol Hill, and
     you, RSI effectively addresses member needs.                            Segment of membership                    Number of RSI members


     About	our	membership	                                                  Communications & signaling                                     26
     A year of growth, 2011 brought more than 70 new                        Freight car / locomotive repair                                23
     members to RSI. More than 90% of 2010 members                          Freight car component parts                                    74
     were retained. With 270-plus member companies                          Freight car leasing                                            13
     located in 45 states and several countries, includ-                    Freight car manufacturer                                       7
     ing Canada, Mexico, China, and Italy, RSI is com-                      Locomotive manufacturers / component parts                     78
     mitted to retaining current members and acquiring                      Maintenance-of-way                                             13
     new ones.                                                              Passenger manufacturer / component parts                       15
                                                                            Trade association                                              5
     Members represent a large base of big and small                        Industry publications / press                                  4
     rail supply companies, which offer products and                        Banks / financial institutions                                 7
     services in the freight car, locomotive, leasing,                      Other rail related                                             22
     maintenance-of-way, communications and signal-                         * Note: Data taken from primary business section of 2011 RSI
     ing, and passenger rail industries (chart, right).                     membership forms. Some members represent more than one
                                                                            segment of the industry.




      Summary of top railway supply states
      State	                           Illinois	          Pennsylvania	        New	York	            Texas	               Ohio	
      Number of companies              137                100                  70                   59                   56
      Number of facilities             166                122                  84                   91                   62
      Number of employees              19,600             27,700               7,500                8,600                7,500
      Total sales (millions)           $8,300             $7,100               $1,900               $1,700               $800
      * Note: TOTAL does not equal the sum of the number of companies due to companies having locations in multiple states.



14                                                                                                        RSI ANNUAL REPORT 2011
|	SUPPORT |	




                                                                RSI	welcomes	new	members	in	2011

                                                                American Traction Systems           LeJeune Bolt Company
                                                                Amglo Kemlite Laboratories          LPI, Inc.
                                                                Atlas Copco Compressors             MAHLE Behr Industry America LP
                                                                Battelle Memorial Institute         McSweeney’s Inc.
                                                                BBM - Officine Meccaniche SPA       Meadoweld Machine

   Top railway supply states                                    Beena Vision System Inc.
                                                                Buckeye Mountain
                                                                                                    Mersen USA Bn Corp.
                                                                                                     (formerly Carbone of America)
                                                                Byrd Brothers Emergency             Mile Rail, LLC
   RSI study supports link between a healthy freight             Services LLC                       Miller Felpax Corporation
   and passenger rail network and domestic rail sup-            Capital Engineering &               Mobile Hydraulic Equipment
   ply manufacturing jobs                                        Manufacturing Company               Company
                                                                Cerion Energy Inc.                  N.E. Bridge Corp.
                                                                Citel Inc.                          Norgren
   One role of an association is to collect relevant data       Consulate General of Brazil in      Ohio Crankshaft Forged &
   from its members and compile it to provide infor-             Chicago                             Machined Products
   mation about the industry it represents. In 2011,            Consultants F. Drapeau Inc.         Orr Safety Corporation
   RSI published a summary of states with the largest           Curry Supply Co.                    Ozark Mountain Railcar
   concentration of railway supply companies in terms           Custom Engineering Company          Patel Brass Works Pvt. Ltd.
                                                                D.A.S. Rail Enterprises LLC         Pennsy Corp.
   of facilities, employees, and sales.                         Delta Manufacturing                 PowerRail Distribution Inc.
                                                                Diesel Locomotive Co.               Protran1
   Compiled using survey data gathered from RSI                 Drivetrain USA, Inc.                QinetiQ North America
   members and other public and proprietary sources,            Ductile Iron Society                Quality Turbocharger
   the report revealed the width and breadth of the             DuPont Industrial Coatings           Components
   supply industry. In 11 states alone, RSI estimates           ECE Global                          Railroad Passenger Rail Alliance
                                                                Ecofab Covers International         Reidler Decal Corporation
   that 650-plus companies operate more than 800                Enerpro, Inc.                       Relay Systems of America
   facilities, support nearly 90,000 employees, and pro-        FastSings - Glendale                RJ Corman Railroad Group
   duce nearly $23 billion in revenues (chart, bottom).         Frontier Steel Company              Rocore
                                                                Geislinger Corporation              Saw Mill Capital
   “RSI has long maintained that there is a clear link          Getex Corporation                   Schenck Process Group
   between continued investment in freight and passen-          Global Finishing Solutions, LLC     Seacole
                                                                Global Rail Systems, Inc.           Siemens Inc.
   ger rail, and sustainable, well-paying domestic rail-        Hai’an Yaohua Safety Glass Co.      SIMPACK US Inc.
   way supply manufacturing jobs. The data supports              LTD                                Snap-On Industrial
   that contention,” said RSI President Tom Simpson.            Harcon Corp.                        Spacecraft Components
                                                                Hetronic USA                        Stanley Proto Industrial Tools
   The data was published from the top states in terms          Hilliard Enterprises Inc.           Starfire Engineering &
   of supply companies and facilities to show the               HK Engine Components                 Technologies, Inc.
                                                                Hydra-Tech International Corp.      Sterling Rail Inc.
   impact this industry makes on the economy. But               Industrial Maintenance &            Sterne Agee
   there are railway supply companies and manufac-               Engineering Corp.                  Super Steel, LLC
   turing facilities in nearly all the lower 48 states—         Industrial Maintenance &            Susquehanna Financial Group
   most small businesses—and all are dependent on                Engineering Corporation            TDG Transit Design Group
   the continued vibrancy of freight and passenger rail.        International Electronic Machines   Terresolve Technologies Ltd.
                                                                J.W. Speaker Corporation            TransPar Corp.
                                                                Jackson International, Inc. DBA     United Control Systems, Inc.
   The bottom line: Investing in rail will ensure                Jaxon                              USSC LLC
   competitiveness, promote U.S. job creation, and              Jefferies & Company, Inc.           Visron Technical LLC
   improve the nation’s mobility. It should remain a top        Kelso Technologies (USA) Inc.       Wabash National
   priority for private investment and policy makers.           Lean & Green Locomotive




 California	     Florida	         Missouri	          Georgia	           Indiana	             Virginia	           TOTAL
 47              44               42                 39                 33                   27                  654
 69              53               55                 44                 36                   33                  815
 4,600           2,400            2,600              3,100              2,000                2,400               88,000
                                                                                                                                       ulrich




 $700            $700             $900               $600               $100                 $100                $22,900



RSI ANNUAL REPORT 2011                                                                                                           15
| SUPPORT |



RSI SCHOLARSHIP PROGRAM

     RSI selects 2011/2012 award recipients
               For more than 20 years, the RSI Scholarship        Catrina Green – Northern Illinois University,
               Program has provided financial aid to exem-                         Elementary Education
               plary students pursuing bachelor or associate      Kevin Li – Yale University, Chemical
               degrees. More than 100 students have received                 Engineering/Biochemistry
               an RSI scholarship, which has contributed          Chelsea Morton – Barnard College, Psychology
               to their education in a variety of disciplines.
               Children of RSI and Coordinated Mechanical         Thanks to the following member companies
               Association members are eligible to apply.         that donated to the 2011/2012 RSI Scholarship
                                                                  Program. Because of their generous support,
               In 2011, the RSI Scholarship Committee se-
                                                                  the RSI Scholarship Committee was able to
               lected six students to receive academic scholar-
                                                                  award two additional $3,000 scholarships.
               ships of $3,000 each. Applicants were ranked
               by academic record, community service activi-      • Amsted Rail
               ties, essay, and letters of recommendation.        • Chicago Freight Car Leasing Company
               2011/2012 RSI scholarship recipients               • International Association of Railway
                                                                    Operating Officers
               Lauren Aamodt – Texas A&M University,
                                 Marketing                        • MAC Products
               Susanna Cai – Duke University, Engineering         • Railinc Corporation
               Brittany Ford – Eastern Kentucky University,       • Relay Systems of America
                               Sociology



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     - Vapor Stone Rail Systems - Vapor Stone UK - WABCO Freight Car Products - WABCO Locomotive Products
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16                                                                                      RSI ANNUAL REPORT 2011
| RSI ANNUAL REPORT 2011                                             | CONNECTION |



 CONFERENCES AND EVENTS




                                                                                          With more than
                                                                                          300,000 square feet
                                                                                          of exhibit space,
                                                                                          Railway Interchange
                                                                                          2011 included 600-plus
                                                                                          North American and
                                                                                          international exhibitors
                                                                                          and attracted some
                                                                                          9,000 attendees.




    Bringing together rail decision-makers

            In 2011, RSI offered several opportunities for
            members to interact with rail decision-makers
            and market their products to their customers.
            RSI events are centered around grassroots leg-
            islative efforts like Railroad Day on Capitol Hill,
            marketing and networking events such as Rail-
            way Interchange 2011, and important advocacy
            briefings exemplified by RSI’s meeting with
            Amtrak’s executive committee.

            Meeting with Amtrak’s Executive Committee
            RSI staff and representatives from 20 member          “The RSI and Amtrak meeting
            companies participated in RSI’s annual meeting        [pictured above] was informa-
            with Amtrak’s executive committee, including
            Amtrak President Joseph Boardman. The group           tive and useful. It was a chance
            discussed the railroad’s health, its near- and        to meet with the senior Amtrak
            long-term funding status, and its future procure-
            ment plans. Amtrak emphasized its consistent          leadership team and gain
            service success throughout its 11 corridors,          insights into the business and
            pointing to the company’s record ridership and
            revenue levels as it continues to compete favor-      future plans.”
            ably with airlines across the country.                 —RSI board member Jeff Stearns, Wabtec



RSI ANNUAL REPORT 2011                                                                                      17
| RSI ANNUAL REPORT 2011



CONFERENCES AND EVENTS


      President Boardman also revealed the compa-         pliers in Illinois, the delegation met with Sen.
      ny’s funding points totaling $25 billion over the   Dick Durbin (D-Ill.) and Sen. Mark Kirk (R-Ill.)
      next 30 years. As Amtrak looks to expand its        to discuss the affect rail investment has on
      services, it plans to purchase several thousand     American jobs. Meetings also were held with
      cars and several hundred locomotives.               House Transportation and Infrastructure Sub-
                                                          committee Chairman Bill Shuster (R-Pa.), and
      Railroad Day on Capitol Hill 2011                   the Subcommittee’s Ranking Member Corinne
      More than 500 rail industry employees met on        Brown (D-Fla.).
      Capitol Hill to promote a pro-rail agenda in 285
      Congressional offices. With a unified voice,        RSI Annual Meeting
      lawmakers were advised that investment in           At the Annual Members Meeting, held in con-
      the rail industry is an essential part of the       junction with Railway Interchange 2011, RSI
      nation’s economic growth. This pro-jobs             Board of Directors Chairman Greg Vogelman
      message struck a chord with many lawmakers          welcomed attendees with his state of the
      scrambling to help provide jobs for out-of-         association address in which he reflected on
      work Americans.                                     RSI’s accomplishments in 2011 and projected
                                                          an optimistic association outlook for 2012.
      More specifically, attendees reported to
      members of Congress on the following                Following his speech, Vogelman announced
      exigent rail issues: rail re-regulation, truck      three new directors to the RSI Board: TTX
      sizes and weights, short line tax credits,          Company VP-Fleet Management Patrick J.
      grade crossing safety, and the continuance of       Casey, Graham-White President and CEO Jim
      passenger rail funding. Together, they helped       Frantz, and Invensys Rail Corporation President
      drive home the important role our industry          John Paljug. Each will serve a three-year term.
      plays in restoring America’s economy and
      environment, while also connecting America          Also announced were the 2012 RSI Board
      to the global marketplace.                          Officers: Mike Mitrovich of MPL Technology,
                                                          Inc., Chairman; Robert K. Matthews of Stella-
      The RSI Board of Directors met with several         Jones, Inc., Vice Chair; and Fred Sasser of
      legislators who are pivotal in making decisions     Chicago Freight Car Leasing Company,
      affecting railway suppliers and their custom-       Secretary/Treasurer.
      ers. Due to the large concentration of rail sup-




                                                                                       RSI Railroad Day on
                                                                                       the Hill delegation
                                                                                       (from left):
                                                                                       Senator Dick Durbin,
                                                                                       RSI President Tom
                                                                                       Simpson, Railway
                                                                                       Age Publisher
                                                                                       Robert P. DeMarco,
                                                                                       Chicago Freight Car
                                                                                       Leasing’s Fred
                                                                                       Sasser, Stella-
                                                                                       Jones’ Rob
                                                                                       Matthews, Bob
                                                                                       Clement, and
                                                                                       Senator Mark Kirk.



18	                                                                              RSI	ANNUAL	REPORT	2011
“The event was WONDERFUL, we met so many great potential
    customers, and the organization was second to none. I look forward to
    attending other events in your industry.” - Deb Mills, Terresolve Technologies LTD




             Railway Interchange 2011 highlights
             For three days in September, Railway Interchange 2011 brought the rail supply industry together
             to display innovative products and advancing technologies as well as to make connections on a
             packed show floor.

             Railway Interchange 2011, hosted by RSI, American Railway Engineering and Maintenance-of-
             Way Association (AREMA), Railway Engineering-Maintenance Suppliers Association, and Railway
             Systems Suppliers, Inc., proved that a combined show could be a successful show. With ample
             opportunities to learn more about the trade at the technical sessions held by AREMA and the
             Coordinated Mechanical Associations, everyone could benefit. As the largest U.S. rail supply
             trade show in decades, Railway Interchange attracted nearly 9,000 attendees and more than 600
             exhibitors to the show areas at the Minneapolis Convention Center and at CP’s Humboldt Yard.

             EXHIBITS – everywhere you looked, inside and out
             With more than 300,000 square feet of exhibit space, Railway Interchange 2011 had the rail
             industry covered. Every square foot was packed with innovative products, new technologies,
             and potential customers.
             • More than 600 domestic and international exhibitors
             • Mechanical, maintenance of way, communications and signaling,
               and passenger rail industries represented
             • Indoor exhibits in three halls at the Minneapolis Convention Center
             • 1.5 miles of outdoor exhibits at CP’s Humboldt Yard

             ATTENDANCE – a diverse and enthusiastic crowd
             Approximately 9,000 industry leaders and employees from around the world came to Minne-
             apolis for Railway Interchange 2011 to see the latest rail technology, learn from useful technical


RSI	ANNUAL	REPORT	2011	                                                                                           19
| RSI ANNUAL REPORT 2011



CONFERENCES AND EVENTS


      Upcoming events
      Railroad Day on Capitol Hill
      March 8, 2012 |
      Washington, D.C.

      Join RSI as the rail industry gath-
      ers to promote the rail industry
      in a unified voice to educate
      members of Congress on legisla-
      tion that will improve our indus-
      try. The day starts with an early
      morning briefing on important
      legislative issues, is followed by
      whirlwind meetings with elected
      officials and their staff members,
      and concludes with a gala recep-
      tion and dinner. Other event
      sponsors include the Association
      of American Railroads and Amer-        programs, and take advantage of numerous opportunities to meet
      ican Short Line and Regional           customers and colleagues alike. The enthusiasm for the innovation
      Railroad Association.                  and collaboration on display further demonstrated the strength of the
                                             rail supply industry.
      RSI/Amtrak Roundtable
                                             Railway Interchange was a global event. Our international attendees
      Meeting Spring 2012                    were pleased with the quality of the exhibits, technical programs,
      Amtrak Headquarters |                  and ample opportunities to network. More than 1,100 international
      Washington, D.C.                       attendees represented 39 countries, including Australia, Brazil, China,
                                             Germany, India, Mexico, Russia, and South Africa.
      Join RSI for its fifth annual
      roundtable meeting with
      Amtrak’s executive committee to        PROGRAMS – leading-edge industry presentations
      discuss the status of the passen-      Due to a more robust format this year, show attendees could
      ger railroad, its funding situation,   participate in presentations from the Coordinated Mechanical Asso-
      and its future plans. This meeting     ciations (Air Brake Association, International Association of Railway
      is yet to be scheduled. Atten-         Operating Officers, Locomotive Maintenance Officers Association,
      dance is limited to those compa-       and Mechanical Association Railcar Technical Services) and AREMA.
      nies that belong to RSI.               Industry trailblazers spoke about a broad range of topics: engineering;
                                             IT; economic issues; structures; passenger and transit; maintenance;
      RSI/CMA 2012                           communications and signaling; and cutting-edge safety technologies.
      September 22-25, 2012                  Presenters included:
      Sheraton Chicago Hotel &               • BNSF and Canadian National speakers discussed benefits and chal-
      Towers | Chicago, IL                     lenges of Automated Single Car Test Devices at the ABA seminars.
                                             • Mike Jones of the Federal Railroad Administration gave details on the
      This exhibition is being hosted          Cab Technology Integration Laboratory, which aims to assess safety
      by RSI with technical sessions           aspects of cab control/display technology and human performance.
      presented by the Coordinated           • Dave Ward of Siemens and Bill Durham of Amtrak delivered a pre-
      Mechanical Associations (CMA).           sentation on Efficiency and Mechanical Aspects of the New Amtrak
      RSI/CMA 2012 will feature more           Electric Locomotive.
      than 100 exhibits and presenta-        • Bob Toms of Union Tank Car Company highlighted Research &
                  continued on page 21         Development Efforts for Tank and Other Cars.




20	                                                                                        RSI	ANNUAL	REPORT	2011
“It was an exciting and useful show for our companies, and we appreciate
           all the hard work and dedicated effort of the RSI team!”
           - Marise Stewart, ElectroMotive Diesel l Progress Rail Services




                                                                             tions by the Air Brake Association,
                                                                             International Association of Rail-
                                                                             way Operating Officers, Locomo-
    SURVEY SAYS – exhibitors and attendees weigh in                          tive Maintenance Officers Associa-
    Exhibitors and attendees had much to say about Railway Inter-            tion, and Mechanical Association
    change 2011, whether it was about exhibiting on the show floor or        Railcar Technical Services.
    attending the technical sessions. Overall, exhibitors and attendees
    gave the show high marks, and many commented on the high                 Special events, such as a welcome
    number of contacts they made.                                            reception and lunches on the
                                                                             show floor, will provide an oppor-
    “I’ve done more of these shows than I care to admit to and this was      tunity to build up your network of
    the best one we’ve ever attended. The hall was well laid out—there       customers and colleagues, and
    was a general air of excitement and traffic.”                            see groundbreaking rail technolo-
    - Tamara Hart, Aero Transportation Products                              gies on the exhibit floor. The CMA
                                                                             technical sessions will not only
    “From my perspective I believe the Minneapolis show was a                allow attendees to hear industry
    great success.“                                                          innovators and interesting presen-
    - Ted Hagemo, Secretary/Treasurer, IAROO                                 tations, it will bring in railroad cus-
                                                                             tomers and provide an opportu-
    “We found the turnout was exceptional, and we were busy every            nity to collaborate with colleagues
    minute that we were at the show! From a sales and marketing              and sharpen technical skills.
    perspective, it was fantastic! We came away with solid leads
    and sales. “
    - Walter Hughes, RCC Fabricators                                         Railway Interchange 2013
                                                                             September 29- October 2, 2013
    “Always a good show, but I thought this year was possibly the best       Indiana Convention Center |
    in many years. I attended a few of the LMOA presentations (wish I        Indianapolis, IN
    had time for more) and always appreciate the effort that goes into
    them along with the information given.”                                  Preparations are under way for
    - Patrick Roach, Interstate Diesel Service, Inc.                         what is sure to be another suc-
                                                                             cessful joint trade show and tech-
                                                                             nical conference at Railway Inter-
                                                                             change/2013. Sponsored by RSI,
                                                                             Railway Engineering-Maintenance
                                                                             Suppliers Association, and Rail-
                                                                             way Systems Suppliers, Inc.,
                                                                             Railway Interchange 2013 will
                                                                             be three trade shows in one and
                                                                             feature hundreds of exhibits from
                                                                             domestic and international rail
                                                                             suppliers. With a wide array of
                                                                             technical programs hosted by
                                                                             American Railway Engineering
                                                                             and Maintenance-of-Way
                                                                             Association and the Coordinated
                                                                             Mechanical Associations,
                                                                             everyone will have something
                                                                             to gain.

        The Railway Interchange indoor ceremony included (from the left):
        David Soule, REMSA; Phil Homan, REMSA; Steve Bolte, RSSI;
        Greg Vogelman, RSI; and Wick Moorman, Norfolk Southern CEO.



RSI	ANNUAL	REPORT	2011	                                                                                                21
| RSI ANNUAL REPORT 2011



RSI WORK IN WASHINGTON




     “We must remain vigilant on all fronts”
          RSI follows a wide array of legislative issues,     the preceding authorization legislation. Finally,
          ranging from Surface Transportation Board           if Congress cannot agree on either policy or
          Reauthorization to Department of Transporta-        spending levels, extensions and continuing res-
          tion Appropriations. It is important to know that   olutions come into play. The federal government
          there are often two separate tracks for legisla-    often operates under a “Continuing Resolution,    ”
          tion that affect the railway supply industry, and   an amalgam of policy and spending decisions
          understanding the differences between them is       meant to appease the House of Representatives,
          crucial. In Congress, authorized committees set     the Senate, and the White House. In any case,
          federal policy and spending limits for federal      mischief can ensue, so RSI must remain vigilant
          programs. The appropriation committees then         on all fronts.
          set specific federal spending levels for any giv-
          en fiscal year. Theoretically, approving legisla-   Taking these considerations into account, RSI
          tion should precede the appropriations process.     has been tracking and advocating for the
          To complicate matters, Congress can (and does)      following legislation and policies:
          pass appropriation legislation without enacting


22                                                                               RSI ANNUAL REPORT 2011
|	ADVOCACY |	




                                                          funding levels and the length of the reauthorization.
                                                          RSI continues to advocate for maximum levels of
                                                          federal funding, which would benefit the commuter
                                                          railroads and transit agencies that operate light rail
                                                          systems. In the past, funding levels for those rail-
                                                          roads have totaled several billion dollars. SAFETEA-
                                                          LU has been extended several times by Congress to
                                                          allow for continued funding of federal transportation
                                                          programs. In late 2011, Congress appeared ready to
                                                          consider full reauthorization.

                                                          Truck sizes and weights. SAFETEA-LU also is a
                                                          vehicle that could be used to increase truck sizes
                                                          and weights. RSI continues to ask Congress to vote
                                                          against any increase. Studies have shown that
                                                          97,000-pound trucks would lead to an overall freight
                                                          diversion from railroads to trucks, in the magnitude
                                                          of 17% for short line railroads and 19% for Class
                                                          I railroads. In addition, other studies consistently
                                                          show that trucks do not pay their fair share for the
                                                          damage they cause to public infrastructure. RSI sup-
                                                          ports H.R. 1575 and S. 876 legislation (introduced in
                                                          the House and Senate, respectively) that would cap
                                                          the length of single truck trailers, freeze the weight
                                                          of trucks using the 160,000-mile National Highway
                                                          System (NHS), and extend the freeze on double- and
                                                          triple-trailer trucks to the entire NHS.

                                                          Section 130 Highway Rail Grade Crossing Pro-
                                                          gram. SAFETEA-LU also contains specific funding
                                                          for the Section 130 Highway Rail Grade Crossing
                                                          Safety Program. Reauthorization of this important
                                                          program is in jeopardy as Congress looks to stream-
                                                          line or eliminate federal transportation programs.
                                                          RSI supports H.R. 825 and S. 918 legislation that
Surface Transportation Board reauthorization.             would authorize $220 million from the highway trust
The Senate Commerce Committee is considering S.           fund to continue to fund the Section 130 program
158, the Surface Transportation Board Reauthoriza-        through FY 2015.
tion Act. If passed, this legislation could serve as
a vehicle to re-regulate the railroads. Senate Com-       Short line tax credit. Long a staple of Railroad Day
merce Committee Chairman John Rockefeller (D-W.           on the Hill legislative activities, the short line tax
Va.) has long pushed for this legislation that would,     credit needs to be reauthorized. RSI supports H.R.
among other things, make significant changes in           721 and S. 672 legislation that would extend this
the rail competition policies adopted as part of the      program through 2017.
Staggers Rail Act of 1980. The Association of Ameri-
can Railroads argues that depending on the form the       Amtrak and high speed rail. Amtrak and high
legislation takes, Class I freight railroads could lose   speed rail programs are funded annually through
up to $6 billion in revenues. Currently, there is no      the U.S. Department of Transportation appropria-
interest in the House of Representatives to consider      tions legislation. As an integral part of our nation’s
a similar bill.                                           transportation system and a customer for many rail
                                                          suppliers, RSI asks that passenger rail be funded at
SAFETEA-LU reauthorization. This expired legis-           levels requested by Amtrak. As 2011 closed, it ap-
lation funds federal highway and transit programs.        peared that Amtrak would receive adequate fund-
Congress has been slow to reauthorize since the           ing for the remainder of FY 2012, while federal high
House of Representatives and Senate differ on             speed rail programs were in danger of losing funds.


RSI ANNUAL REPORT 2011                                                                                             23
| RSI ANNUAL REPORT 2011                                                        | ADVOCACY |



BOB CLEMENT REPORTS


                                            RSI Work on Capitol Hill
                                            I’ve come to admire the resiliency of the RSI membership more than ever
                                            this year, as I’ve had the opportunity to meet many of you face-to-face in
                                            Minneapolis at one of the largest rail conferences ever held. I sense a grow-
                                            ing momentum of hope for more business opportunities during this slow
                                            economic recovery. It is an honor and privilege to represent you in Wash-
                                            ington, D.C. RSI has strong leadership on the Board of Directors and an
                                            excellent staff to implement our goals. Our overall strategy on Capitol Hill is
                                            to pursue beneficial legislation that helps railway suppliers, and to prevent
                                            harmful regulations that hurt the rail and railway supply industry.

                                               As Congress has challenged the rail industry on both the financial and
                                            regulatory fronts, 2011 has been a good year to have solid representation on
                                            Capitol Hill. We’ve seen a historic effort by Congress to deal with our nation’s
                                            debt crisis by outlining a 10-year budget-slashing plan. The economic debate
                                            over reducing debt has created a climate of austerity and forestalled the
                                            Transportation Reauthorization bill—now two years overdue—which maps
                                            out long-term spending for infrastructure improvements. Congress also has
                                            threatened to curtail the President’s high speed rail projects, Amtrak, and
                                            railroad crossing safety programs like Operation Lifesaver. So far, these
                                            threats have been diverted through strong advocacy among rail supporters
                                            and political alliances among transportation stakeholders.

                                               Fortunately, transportation and infrastructure projects receive wide bipar-
                                            tisan support, as Congress recognizes their power to create jobs. RSI is a
                 Honorable Bob Clement      voice that can amplify this message: Transportation investments in America’s
                                            future rail, highways, air, and waterways systems are a worthy expenditure.
            Bob Clement is president of
        Clement and Associates, LLC, a         The railway supply industry has become an increasingly strong influence
      public affairs firm. He is a former   with 650 companies operating more than 800 facilities, and 90,000 employ-
       Member of Congress (Democrat)        ees spread across nearly every Congressional district. I am proud to be part
  from Tennessee, serving from 1988         of a team, along with Tom Simpson and Nicole Brewin, that represents RSI’s
         to 2003. While in the House of     voice at the top levels of government. This year, our team and board officers
  Representatives, Clement served as        took RSI’s message to the White House where we met with Deputy Chief of
  a senior member of the Transporta-        Staff Nancy Ann DeParle and her staff. In Minneapolis, Transportation Sec-
    tion and Infrastructure Committee.      retary Ray LaHood attended the hugely successful Railway Interchange con-
  He also served on the Budget Com-         vention to address our members and the problems we face. As we visit the
 mittee, giving him significant insight     offices of hundreds of Members of Congress, we continue to stress the influ-
into funding procedures in Congress.        ence of RSI businesses within each of their respective districts. I look forward
                                            to working with you in 2012 and communicating our issues to our country’s
          Among his notable legislative     top decision-makers.
  achievements in Congress, Clement
    initiated significant changes to the
  Transportation Reauthorization Act,
     including revising the distribution
   formula for state funding to ensure
     federal dollars are more equitably
  distributed—a formula policy which
      continues today. Clement and his
      wife live in Nashville, Tennessee.
                They have four children.




24                                                                                          RSI ANNUAL REPORT 2011
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| RSI ANNUAL REPORT 2011



ADVOCACY EFFORTS


                                                                 RSI lobbyist Bob Clement (far left), Chair Greg
                                                                 Vogelman, Secretary Treasurer Rob Matthews,
                                                                 immediate past Chairman Bob Pokorski, and
                                                                 President Tom Simpson met with White House
                                                                 officials to discuss the rail supply industry.


                                                              “I was happy to point out there were more than
                                                             100 railway supply companies with facilities in
                                                             Illinois, serving both the freight and passenger
                                                             railroad industry, and who had thousands of
                                                             employees, said Simpson after the confer-
                                                                          ”
                                                             ence. “Based on RSI data, Illinois railway supply
                                                             companies represent more than 30% of total
                                                             domestic sales of the entire supply industry.”

                                                             Also speaking at the event were Illinois Senator
                                                             Richard Durbin, Congresswoman Jan Scha-
                                                             kowsky, Congressman Dan Lipinski, Federal
                                                             Railroad Administrator Joe Szabo, Union Pa-
                                                             cific’s Joe Bateman, and representatives from
                                                             Illinois DOT, Amtrak, and rail labor.

                                                             On Capitol Hill: RSI advocates continued
     Actively advocating                                     funding for safety programs and dedicated

     for the rail industry                                   source of funding at House hearing

                                                             In April, RSI President Tom Simpson testified be-
                                                             fore the U.S. House of Representatives Commit-
         In the states: RSI participates in Illinois high    tee on Transportation & Infrastructure Subcom-
         speed rail press conference                         mittee on Railroads, Pipelines, and Hazardous
                                                             Materials (pictured below). In his testimony,
         In March, at the invitation of Illinois Governor    Simpson noted that “decisions made during the
         Pat Quinn, RSI President Tom Simpson partici-       debate of reauthorizing The Safe, Accountable,
         pated in a press conference announcing the          Flexible, Efficient Transportation Equity Act: A
         beginning of construction season for infrastruc-    Legacy for Users (SAFETEA-LU) will have a pro-
         ture upgrades on the Union Pacific line between     found impact on the rail supply industry.  ”
         Chicago, Ill., and St. Louis, Mo. This line will
         eventually allow for higher speed passenger         RSI submitted five program recommendations
         service on the line.                                to the Subcommittee that will provide more cer-
                                                             tainty in the marketplace, continue to ensure
         “Today’s agreement marks another major step
         toward making high speed rail a reality in
         Illinois, said Governor Quinn. “Bringing high
                 ”
         speed rail to Illinois has been a top priority of
         my administration because of the thousands of
         jobs and long-term investment it will bring to
         our state.”

         Simpson congratulated the governor for the
         leadership Illinois is showing in improving
         and expanding passenger rail service, and
         explained how important the railway supply
         industry is to Illinois.



26                                                                               RSI ANNUAL REPORT 2011
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory
RSI 2011 Annual Report and Membership Directory

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RSI 2011 Annual Report and Membership Directory

  • 2.
  • 3. RSI ANNUAL REPORT 2011 TABLE OF CONTENTS SUPPORT 2 About RSI 2 Chairman’s message 4 RSI leadership 6 RSI industry committees 8 Tank car update 12 RSI membership 14 Scholarship program 16 CONNECTION 17 Conferences and events 17 ADVOCACY 22 RSI work in Washington 22 Bob Clement reports 24 Advocacy efforts 26 Operation Lifesaver 28 Coalition building 30 Membership directory 31 Advertising index 44 Published for RSI by Simmons-Boardman Publishing Corporation, 345 Hudson Street, 12th Floor, New York, NY 10014. Design by Wendy Williams. Cover photo by Steve Schmollinger. Photo, this page, by Bruce Kelly. RSI ANNUAL REPORT 2011 1
  • 4. | RSI ANNUAL REPORT 2011 | SUPPORT | ABOUT RSI We are your voice in Washington The Railway Supply Institute acts on behalf Connection…Railway suppliers are connected of the largest and smallest suppliers to North and strengthened by RSI. RSI members meet American freight and passenger railroads and and do business with freight and passenger their employees. As the only all-inclusive trade railroads and other suppliers at annual confer- association for the entire rail supply industry, ences, trade shows, and industry events. We are RSI represents a diverse group involved in the the center of the industry network, helping to manufacture of products and services in the make contacts for our members with key play- freight car, locomotive, maintenance-of-way, ers in the companies that work in the rail and communications and signaling, leasing, and rail supply industries. passenger rail industries. Advocacy…RSI is your voice in Washington. RSI connects members to their customers and RSI has a presence on Capitol Hill and among partners, supports industry improvements, the regulatory agencies that write the rules for assists members in the global marketplace, and the rail industry. RSI continually advocates safe, represents the industry during the regulatory sensible, and efficient solutions that work for and legislative process. rail, suppliers, and the people who depend on us to move their goods. RSI aids members in Support…Railway supplier support is important communicating their interests to legislators, to the railroad industry. RSI manages seven regulators, and other industry stakeholders. industry committees on such critical issues as the safe transportation of hazardous materials, grade crossing safety, and technical standards. Our committees help members collaborate and bruce kelly resolve the technical, legislative, and regulatory issues unique to the rail supply industry. 2 RSI ANNUAL REPORT 2011
  • 5. RIDE ON OUR REPUTATION Maintenance of Way Equipment and Services that exceed the Speed, Performance, and Reliability standards of railways worldwide. For over 55 years Loram Maintenance of Way, Inc. has built a reputation as being a world class provider of maintenance of way services and equipment including: mainline rail grinding, specialty grinding, shoulder ballast cleaning, production undercutting, spot undercutting, vacuum excavation, ditch cleaning and rail handling. Loram’s record of providing superior maintenance of way services in a safe, timely and reliable manner has earned Loram the designation of being the Invisible Contractor. To learn more about how Loram Maintenance of Way, Inc. can help maintain your right of way, visit www.loram.com. Loram Maintenance of Way, Inc. Hamel, Minnesota 55340 USA (800) 328-1466 • Fax (763) 478-2221 www.loram.com
  • 6. | RSI ANNUAL REPORT 2011 | SUPPORT | CHAIRMAN’S MESSAGE Dear RSI Members and Friends: The Railway Supply Institute had an extraordinary 2011. RSI delivered on its mission to connect members to their customers and partners, support the improvement of the industry, and advocate for the industry during the regulatory and legislative process. In September, nearly 9,000 railroaders and railway suppliers descended on Minneapolis for Railway Interchange 2011. Of those in attendance, 3,000 were there for RSI and the Coordinated Mechanical Associations (CMA) tech- nical sessions. The show exceeded expectations. RSI, along with Railway Engineering-Maintenance Suppliers Association (REMSA) and Railway Sys- tems Suppliers, Inc. (RSSI), quickly sold out exhibit space in the Minneapolis Convention Center and Canadian Pacific’s Humboldt Yard. Minneapolis was the culmination of a two-year planning process, and my congratulations to the staffs of RSI, REMSA, RSSI, and American Railway Engineering and Maintenance-of-Way Association (AREMA) for making the show a success. As a full-service trade association, RSI does more than host trade shows. Our program committees act as an integral part of our mission to serve railway suppliers: They bring our members together to discuss issues of inter- RSI Chairman est and connect with railroads and state and federal governments. They also Gregory P. span a wide array of interests across the supply industry. For example, our Vogelman, Committee on Tank Cars leads the industry in tank car safety and security issues, while the State Tax Committee works diligently to curb onerous taxes GE Rail Services placed on freight cars by various state legislatures. And in addition to working with the Association of American Railroads on freight car design issues, the American Railway Car Institute (ARCI) committee supplies quarterly freight car order and delivery data to Wall Street analysts and government officials. I urge you to take a careful look at RSI’s industry committees and see where your company might benefit from joining. While the new Congress has challenged RSI, it has not hindered our progress. Our government relations team, Nicole Brewin and the Honorable Bob Clement, is well known on Capitol Hill as the voice of the rail supply industry. Supported by our members, coalitions, and industry partners, RSI continues to promote supplier issues by introducing RSI to new members of Congress, meeting with committee leadership, and testifying at committee hearings. The year also brought new opportunities for RSI’s advocacy team. I had the privilege of join- ing the RSI staff and fellow board members in a White House meeting with the Administration’s Domestic Policy Team—the first meeting of its kind. After passing through White House security, we had an hour-long meeting with Administration representatives, discussing the importance of the supply industry for jobs and issues facing RSI members and their customers. As I look forward to 2012, I see more opportunities for RSI and our membership. We’re returning to Chicago for RSI/CMA 2012 and will hold Railway Interchange 2013 the following year in India- napolis. An election year, 2012 will bring a new Congress that needs to hear from us. RSI will ask you to participate in the political process. You see, Congress can give and Congress can take away, thus your participation is needed to speak out on what harms and helps our industry. When RSI asks for your help, I urge you to give it for the benefit of yourselves and your customers. While my term is ending, I know that RSI will continue to effectively represent the rail sup- ply industry. The RSI board, with the dedicated leadership team of Mike Mitrovich, Rob Mat- thews, and Fred Sasser, will continue to promote our organization and its diverse membership. I thank them for their support and encouragement throughout 2011. Special thanks to the RSI staff of Tom Simpson, Nicole Brewin, Robyn Leach, and Amanda Patrick. They do an amazing job and deserve our sincere gratitude. Most important, thanks to our 276 members who help make RSI the voice of the supply industry. 4 RSI ANNUAL REPORT 2011
  • 7. Virtually “EVErything But thE Box ” TM Your single link to all undercarriage components for heavy haul service. Freight Car Parts Locomotive Parts • Friction Castings (ASF & Barber) • AAR Yokes • Locomotive Wheels • Control Springs (ASF & Barber) • Knuckles • Locomotive Roller Bearings • Column Wear Plates (ASF & Barber) • Carrier Basket Springs • Locomotive Springs • Truck Side Frames • New Cushioning Units • New Locomotive Draft Gears (70ton, 100ton, 125ton) • Reconditioned Cushioning Units • Reconditioned Locomotive • Truck Bolsters • Braking Components Draft Gears (70ton, 100ton, 125ton) - Hand Brakes • Locomotive Axles • Constant Contact Side Bearings - Slack Adjusters • Cast Draft Sills (Coal & Grain Cars) - Empty/Load Devices - Truck Mounted Brakes • AAR D-Series Load Coils IONX Asset Monitoring - Brake Cylinders • Low Profile Center Plates - Truck Mounted Brake Rigging • GPS and condition-based tracking • M901E/G Draft Gears and monitoring • Wear Prevention Components • Adapter Steering Pad Systems (M976) - Coupler Carriers and Wear Plates • Freight Car Axles - Brake Beam Guides • Railway Wheels - Brake Rod and Bracket Protectors • Tapered Roller Bearings - Center Bowl Wear Liner - Center Bowl Horizontal Liners • AAR Couplers - Rear Yoke Support © 2012 Amsted Rail Company, Inc. 311 South Wacker | Suite 5300 | Chicago, IL 60606 | +1 312 922 4501 | AmstedRail.com
  • 8. | RSI ANNUAL REPORT 2011 | SUPPORT | LEADERSHIP RSI Board of Directors Being part of the Railway Supply Institute Officers Board of Directors can be a difficult and Chair Gregory P. Vogelman, GE Rail Services rewarding assignment. The industry is diverse and the needs of an association are many. Vice Chair Michael J. Mitrovich, There are always challenges as well as the MPL Technology Inc. need for forward thinking and leadership— whether it is tackling a joint trade show or a Secretary/Treasurer Robert Matthews, new dues structure. The RSI Board shares in Stella-Jones Inc. the responsibility of moving the association forward by developing strategies, overseeing Directors events, and coming together to manage finan- Thomas F. DeJoseph, cial and policy issues. Loram Maintenance of Way Inc. Board members make up small and large Michael Foxx, Strato, Inc. companies involved in the manufacture of products and services in the freight car, loco- Brian Hawkins, Amsted Rail motive, maintenance-of-way, communications Terrence G. Heidkamp, GATX Corporation and signaling, and passenger rail industries. James R. Higginbottom, Not only do RSI Board members come from The Okonite Company different supply disciplines, they also enhance the Board with their talents, experiences, Michael K. Ogden, and resources. It is under the direction of the Morton Manufacturing Company Board of Directors and with the support of the Fred R. Sasser, membership that RSI continues to be a suc- Chicago Freight Car Leasing Company cessful trade association, representative of the industry it promotes. Jeff Stearns, Wabtec Corporation Edward J. Whalen, FreightCar America, Inc. Honorary Director Robert J. Pokorski, Miner Enterprises REMSA Representative Phil Homan, Loram Maintenance of Way, Inc. RSSI Representative Thomas J. Ulrich, Arthur N. Ulrich Company Staff President Thomas D. Simpson The staff of the Railway Supply Institute is a simpson@rsiweb.org dedicated, professional, and knowledgeable Assistant Vice President Nicole B. Brewin team, eager to serve the rail supply industry in all brewin@rsiweb.org aspects of association management. Guided by the RSI mission of supporting, connecting, and Office Manager Robyn M. Leach advocating for its membership, the staff promotes leach@rsiweb.org the industry through government relations work, Membership & Marketing Amanda T. Patrick hosting trade shows and marketing events, and patrick@rsiweb.org creating a forum for industry collaboration. Railway Supply Institute, Inc. 425 Third Street, SW, Suite 920 Washington, D.C. 20024 (p) 202-347-4664 • (f) 202-347-0047 www.rsiweb.org 6 RSI ANNUAL REPORT 2011
  • 9. 1S TE NO BOR P W AT OF E FE CR RI OS NG SI NG S STELLA-JONES’ NETWORK MEETING YOUR DEMAND STRENGTH RELIABILITY TREATED RAILROAD PRODUCTS AND SERVICES CREOSOTE WITH 1 STEP BORATE TREATED TIES • Dependable and economical • Long lasting life performance with less maintenance GUARANTEED QUALITY SERVICE AND DELIVERY • 18 pressure treating plants serving North America • Proprietary coal tar distillation operations THE ONE-STOP ALTERNATIVE INCLUDING VALUE-ADDED SUPPLY CHAIN SERVICES • Crosstie pre-plating ensuring precise finished products • Bridge crossings, pilings and poles poles timbers, crossings, pilings and • Responsible environmental recycling and disposal 1 800 272-8437 www.stella-jones.com
  • 10. | RSI ANNUAL REPORT 2011 RSI INDUSTRY COMMITTEES Providing a unified, collaborative voice for suppliers The direction of RSI’s policy goals are determined AMERICAN RAILWAY CAR INSTITUTE Chair: Martin Graham, Trinity Rail Group, LLC by the work and collaboration of its industry com- mittees, which support the different disciplines and The American Railway Car Institute (ARCI) has represented the North American freight car build- issues of the supply industry. Consisting of RSI ing industry for more than 75 years. Membership consists of major North American freight car member companies, the committees provide an manufacturers and works in conjunction with the opportunity for member involvement and support, Association of American Railroads (AAR) on freight car design standards. In addition, the ARCI tabu- and advance railway supply industry goals in the lates and reports North American freight car statis- public and private sectors. tics and represents the specific interests of railcar builders in legislative and regulatory matters. In addition, ARCI’s Engineering and Design Sub- committee meets several times a year to address freight car design and safety issues. The ARCI quarterly freight car statistics are used as a barometer on the state of the railway supply industry. They are used by organizations such as the Bloomberg news and Federal Reserve Board, plus financial analysts, component suppliers, and others who follow the freight car building industry. 8 RSI ANNUAL REPORT 2011
  • 11. | SUPPORT | Our committees provide members with an opportunity to get involved by supporting and advancing railway supply industry goals in both the public and private sectors. ARCI AffILIATE MEMbERShIp QUALITY ASSURANCE COMMITTEE Though membership on the ARCI committee is restricted to North American freight car builders, The Quality Assurance Committee (QAC) is an anyone can become an affiliate member. Typical advocate for quality and continuous improvement affiliate members are component suppliers for the in the performance and safety of the rail supply freight car industry, leasing companies, and finan- industry’s products and services. The QAC works cial institutions. Affiliate members receive quar- closely with the AAR Quality Committee to ensure terly freight car statistics and have an opportunity that member companies receive the information to be on the Engineering & Design Subcommittee. they need to implement superior quality programs and meet the challenges of today’s marketplace. EQUIpMENT LEASING COMMITTEE Over the years, working with the AAR Quality Com- Chair: John Kieras, Union Tank Car Company mittee, QAC has sponsored training programs for suppliers who are new to the industry or need The Equipment Leasing Committee is composed of refresher courses on key quality issues. representatives from prominent freight car leasing companies. Its primary responsibility is to evaluate STANDARD COUpLER and guide RSI in key regulatory and public policy MANUfACTURERS COMMITTEE issues affecting the leasing industry, which often Chair: Patrick S. Wallace, Trinity Rail Group involve railroad service relations issues. In addition, the committee responds to AAR circular letters and This committee promotes AAR standard coupler other railroad proposals that affect private car own- technology worldwide and meets periodically to ers. RSI member companies own and provide for discuss the technical matters confronting standard lease more than 700,000 railroad freight cars. coupler manufacturers. The committee also works with the rail industry to develop coupler standards that reflect the latest in technology and foundry bruce kelly practices. This committee is restricted to compa- nies that produce standard AAR couplers. RSI ANNUAL REPORT 2011 9
  • 12. | RSI ANNUAL REPORT 2011 RSI INDUSTRY COMMITTEES COMMITTEE ON TANK CARS Chair: Joseph Lattanzio, GE Rail Car Services The Committee for Tank Cars (RSICTC) addresses issues of importance to tank car builders and owners, and regularly reviews tank car requirements through its member- ship in the AAR Tank Car Committee. RSICTC is at the forefront of the latest research to improve tank car safety, and represents tank car manufacturers in federal, legislative, and regulatory matters. The Engineering/Technical Subcommittee oversees the RSI/AAR tank car safety research project and meets quarterly with the AAR Com- mittee on Tank Cars to discuss tank car secu- rity, packaging, and operational issues. RSICTC publications can be found on the RSI website at www.rsiweb.org/rsicommittees_tc.html. Membership to this committee is restricted to companies engaged in the design, manufac- ture, ownership, or leasing of railroad tank cars. STATE TAXATION COMMITTEE WASHINGTON AFFAIRS COMMITTEE Chair: Robert Shank, Chair: John Paljug, Greenbrier Manufacturing Safetran Systems Corporation Chair: Thomas J. Gillespie, Jr., The State Taxation Committee, consisting ALSTOM Transportation, Inc. of companies that own and lease railroad freight cars, monitors and acts on state legisla- The Washington Affairs Committee (WAC) tive and regulatory issues that affect the taxa- is open to all members with an emphasis tion of privately owned freight cars. Over the on member companies in the communica- years, it is estimated that the committee has tion and signaling, maintenance-of-way, and saved private car owners several million dol- passenger industries. Legislative issues of lars in excess taxation. interest include: supporting the Section 130 highway-rail grade crossing program; sup- porting railroads in securing tax incentives to increase capacity; securing federal investment for positive train control and high speed rail; supporting Amtrak’s legislative goals; support- ing the Class I railroads efforts opposed to re- regulation; and lobbying against bigger trucks. In addition, the committee works closely with Operation Lifesaver to reduce the deaths and injuries at highway-rail grade crossings and along railroad rights-of-way through public education programs. 10 RSI ANNUAL REPORT 2011
  • 13. | RSI ANNUAL REPORT 2011 RSI INDUSTRY COMMITTEES COMMITTEE ON TANK CARS Chair: Joseph Lattanzio, GE Rail Car Services The Committee for Tank Cars (RSICTC) addresses issues of importance to tank car builders and owners, and regularly reviews tank car requirements through its member- ship in the AAR Tank Car Committee. RSICTC is at the forefront of the latest research to improve tank car safety, and represents tank car manufacturers in federal, legislative, and regulatory matters. The Engineering/Technical Subcommittee oversees the RSI/AAR tank car safety research project and meets quarterly with the AAR Com- mittee on Tank Cars to discuss tank car secu- rity, packaging, and operational issues. RSICTC publications can be found on the RSI website at www.rsiweb.org/rsicommittees_tc.html. Membership to this committee is restricted to companies engaged in the design, manufac- ture, ownership, or leasing of railroad tank cars. STATE TAXATION COMMITTEE WASHINGTON AFFAIRS COMMITTEE Chair: Robert Shank, Chair: John Paljug, Greenbrier Manufacturing Safetran Systems Corporation Chair: Thomas J. Gillespie, Jr., The State Taxation Committee, consisting ALSTOM Transportation, Inc. of companies that own and lease railroad freight cars, monitors and acts on state legisla- The Washington Affairs Committee (WAC) tive and regulatory issues that affect the taxa- is open to all members with an emphasis tion of privately owned freight cars. Over the on member companies in the communica- years, it is estimated that the committee has tion and signaling, maintenance-of-way, and saved private car owners several million dol- passenger industries. Legislative issues of lars in excess taxation. interest include: supporting the Section 130 highway-rail grade crossing program; sup- porting railroads in securing tax incentives to increase capacity; securing federal investment for positive train control and high speed rail; supporting Amtrak’s legislative goals; support- ing the Class I railroads efforts opposed to re- regulation; and lobbying against bigger trucks. In addition, the committee works closely with Operation Lifesaver to reduce the deaths and injuries at highway-rail grade crossings and along railroad rights-of-way through public education programs. 10 RSI ANNUAL REPORT 2011
  • 14. | SUPPORT | The value of RSI committees ONE OF THE REASONS CHICAGO FREIGHT CAR LEASING Company belongs to RSI is because of its member-driven industry committees. Currently, my company participates in the State Taxa- tion Committee and the Equipment Leasing Committee.  The State Taxation Committee represents the interests of 11 RSI com- panies that own and lease freight cars. At last count, our companies lease more than 700,000 freight cars combined. The companies meet periodically to compare notes and collaborate on ways to defeat oner- ous state taxes that hinder investment. We also develop strategies to entice states to enact tax credits for freight car repairs. The State Taxation Committee has saved the industry millions of dollars in state taxes—money that can be reinvested into our fleets, thus benefiting component suppliers as well. We also participate in the Equipment Leasing Committee, which com- prises the leadership of leasing companies. I have had the privilege of chairing this committee and, in that capacity, testified before Con- gress during the debate surrounding the termination of the Interstate Commerce Commission.  Because of the work of the Equipment Leasing Committee, key por- tions of the Interstate Commerce Act were preserved when the Sur- face Transportation Board (STB) was created. As an added benefit, the committee visits Washington, D.C., annually to brief STB mem- by fred Sasser, bers on our issues. Access to these decision makers is a benefit that Chair of Chicago freight only RSI can provide. Car Leasing Company, RSI board Member, Currently, my company doesn’t participate on other committees, but I 2012 RSI Secretary am aware of their benefits and how they represent our diverse indus- Treasurer try. Every quarter, we look forward to receiving the American Railway Car Institute’s freight car order and delivery reports to see how the both photos: union pacific industry is faring. We also recognize the role the Committee on Tank Cars plays in moving hazardous materials safely. As a member of the RSI Board of Directors and as a newly elected Secretary Treasurer, I see the role that RSI’s committees play in our industry—a role that enhances our influence and makes our industry stronger. I encourage all of you to take a look at the RSI committees and see where your company would benefit from participation. RSI ANNUAL REPORT 2011 11
  • 15. | RSI ANNUAL REPORT 2011 | SUPPORT | TANK CARS RSI: Leading the way in safety and security The RSI Committee on Tank Cars (RSICTC) con- operating improvements that could lead to the tinues to lead the effort to eliminate risk in the safer transport of both crude oil and ethanol. movement of hazardous materials by rail. The Participants include representatives from AAR, RSICTC also continues to support the Advanced American Petroleum Institute, Growth Energy, Tank Car Collaborative Research Program, a Renewable Fuels Association, individual ship- joint project with the Federal Railroad Admin- pers, FRA, and Transport Canada. Task forces istration (FRA), Department of Homeland Secu- met frequently during second-half 2011, and it rity, Transport Canada, Association of American was anticipated that recommendations would Railroads (AAR), American Chemistry Council, be forthcoming by that year’s end. Chlorine Institute, and Fertilizer Institute. The Program is researching ways to improve the In addition to the above, RSICTC continues safety and security of tank cars that transport to participate in the RSI/AAR Tank Car Safety highly toxic chemicals. It is expected that this Research Project, which funds research and work will result in a leading-edge tank car, collects and evaluates information on tank cars which will be specified in the U.S. Department damaged in derailments. Since its inception, the of Transportation and Canadian regulations. Project has collected data on more than 40,000 damaged tank cars. This information has been In May 2011, FRA asked RSICTC to develop a used by the industry to develop improved tank tank car, with enhanced crashworthiness, for car features that have contributed to the ongo- transporting crude oil. The FRA is anticipat- ing, outstanding record of transporting hazard- ing that a large number of these cars will be ous commodities by rail. required for unit trains transporting oil from bruce kelly Canada and the U.S. Bakken Shale fields to — By William Finn, Vice Chair, RSI Committee Texas for refining. RSICTC took the lead, bring- on Tank Cars, and RSI Consultant ing together a coalition of parties to address both tank car design enhancements and railroad 12 RSI ANNUAL REPORT 2011
  • 16. Providing Solutions for over 40 Years Problem: We “Exceed the Need” - be it on our Replacing cracked and standard 24-hour turnaround on broken pipes is an expensive service and delivery or working with and difficult repair requiring our customers to design and engineer cars to be shopped. solutions for rail and transit cars. Our in house technical capabilities, which include talented staff, real life lab simulation and testing facilities, allow us to offer collaborative engineering to meet your needs. We have the largest line of hose, hose related products, weld and pipe fittings, pipe clamps and castings for tank cars, trucks, draft systems and end of car arrangements. Solution: Ask us about our solutions for Replace your rigid pipe applications with AAR-M618 hose assemblies. • Longer life products • Repair at location, safer and at half the cost. • More reliable casting • Quick and easy to install • Hose uncoupling • No cutting, bending, welding or heat relieving • Draft systems issues • Kits can be developed for Reservoir Pipes, Retainer Pipes, and Branch Pipes – shipped in 24 hours! • End of Car • Lower Cost Repairs “Celebrating our 40th Year in 2012” 100 New England Avenue Piscataway, NJ 08854 Customer Service: (800) 792-0500 Fax: (800) 378-7286
  • 17. | RSI ANNUAL REPORT 2011 RSI MEMBERSHIP RSI members: The strength of the supply industry RSI members encompass a large segment of the U.S. economy, providing jobs for communities and innovation for railroads. At RSI, we work to pro- mote the rail supply industry and advocate on its behalf to enhance our nation’s infrastructure. We serve our membership and our industry by encouraging participation: RSI hosts trade shows and marketing events; manages industry proj- ect committees; and creates opportunities for members to meet with elected officials and other decision-makers. With better communication and outreach to customers, those on Capitol Hill, and you, RSI effectively addresses member needs. Segment of membership Number of RSI members About our membership Communications & signaling 26 A year of growth, 2011 brought more than 70 new Freight car / locomotive repair 23 members to RSI. More than 90% of 2010 members Freight car component parts 74 were retained. With 270-plus member companies Freight car leasing 13 located in 45 states and several countries, includ- Freight car manufacturer 7 ing Canada, Mexico, China, and Italy, RSI is com- Locomotive manufacturers / component parts 78 mitted to retaining current members and acquiring Maintenance-of-way 13 new ones. Passenger manufacturer / component parts 15 Trade association 5 Members represent a large base of big and small Industry publications / press 4 rail supply companies, which offer products and Banks / financial institutions 7 services in the freight car, locomotive, leasing, Other rail related 22 maintenance-of-way, communications and signal- * Note: Data taken from primary business section of 2011 RSI ing, and passenger rail industries (chart, right). membership forms. Some members represent more than one segment of the industry. Summary of top railway supply states State Illinois Pennsylvania New York Texas Ohio Number of companies 137 100 70 59 56 Number of facilities 166 122 84 91 62 Number of employees 19,600 27,700 7,500 8,600 7,500 Total sales (millions) $8,300 $7,100 $1,900 $1,700 $800 * Note: TOTAL does not equal the sum of the number of companies due to companies having locations in multiple states. 14 RSI ANNUAL REPORT 2011
  • 18. | SUPPORT | RSI welcomes new members in 2011 American Traction Systems LeJeune Bolt Company Amglo Kemlite Laboratories LPI, Inc. Atlas Copco Compressors MAHLE Behr Industry America LP Battelle Memorial Institute McSweeney’s Inc. BBM - Officine Meccaniche SPA Meadoweld Machine Top railway supply states Beena Vision System Inc. Buckeye Mountain Mersen USA Bn Corp. (formerly Carbone of America) Byrd Brothers Emergency Mile Rail, LLC RSI study supports link between a healthy freight Services LLC Miller Felpax Corporation and passenger rail network and domestic rail sup- Capital Engineering & Mobile Hydraulic Equipment ply manufacturing jobs Manufacturing Company Company Cerion Energy Inc. N.E. Bridge Corp. Citel Inc. Norgren One role of an association is to collect relevant data Consulate General of Brazil in Ohio Crankshaft Forged & from its members and compile it to provide infor- Chicago Machined Products mation about the industry it represents. In 2011, Consultants F. Drapeau Inc. Orr Safety Corporation RSI published a summary of states with the largest Curry Supply Co. Ozark Mountain Railcar concentration of railway supply companies in terms Custom Engineering Company Patel Brass Works Pvt. Ltd. D.A.S. Rail Enterprises LLC Pennsy Corp. of facilities, employees, and sales. Delta Manufacturing PowerRail Distribution Inc. Diesel Locomotive Co. Protran1 Compiled using survey data gathered from RSI Drivetrain USA, Inc. QinetiQ North America members and other public and proprietary sources, Ductile Iron Society Quality Turbocharger the report revealed the width and breadth of the DuPont Industrial Coatings Components supply industry. In 11 states alone, RSI estimates ECE Global Railroad Passenger Rail Alliance Ecofab Covers International Reidler Decal Corporation that 650-plus companies operate more than 800 Enerpro, Inc. Relay Systems of America facilities, support nearly 90,000 employees, and pro- FastSings - Glendale RJ Corman Railroad Group duce nearly $23 billion in revenues (chart, bottom). Frontier Steel Company Rocore Geislinger Corporation Saw Mill Capital “RSI has long maintained that there is a clear link Getex Corporation Schenck Process Group between continued investment in freight and passen- Global Finishing Solutions, LLC Seacole Global Rail Systems, Inc. Siemens Inc. ger rail, and sustainable, well-paying domestic rail- Hai’an Yaohua Safety Glass Co. SIMPACK US Inc. way supply manufacturing jobs. The data supports LTD Snap-On Industrial that contention,” said RSI President Tom Simpson. Harcon Corp. Spacecraft Components Hetronic USA Stanley Proto Industrial Tools The data was published from the top states in terms Hilliard Enterprises Inc. Starfire Engineering & of supply companies and facilities to show the HK Engine Components Technologies, Inc. Hydra-Tech International Corp. Sterling Rail Inc. impact this industry makes on the economy. But Industrial Maintenance & Sterne Agee there are railway supply companies and manufac- Engineering Corp. Super Steel, LLC turing facilities in nearly all the lower 48 states— Industrial Maintenance & Susquehanna Financial Group most small businesses—and all are dependent on Engineering Corporation TDG Transit Design Group the continued vibrancy of freight and passenger rail. International Electronic Machines Terresolve Technologies Ltd. J.W. Speaker Corporation TransPar Corp. Jackson International, Inc. DBA United Control Systems, Inc. The bottom line: Investing in rail will ensure Jaxon USSC LLC competitiveness, promote U.S. job creation, and Jefferies & Company, Inc. Visron Technical LLC improve the nation’s mobility. It should remain a top Kelso Technologies (USA) Inc. Wabash National priority for private investment and policy makers. Lean & Green Locomotive California Florida Missouri Georgia Indiana Virginia TOTAL 47 44 42 39 33 27 654 69 53 55 44 36 33 815 4,600 2,400 2,600 3,100 2,000 2,400 88,000 ulrich $700 $700 $900 $600 $100 $100 $22,900 RSI ANNUAL REPORT 2011 15
  • 19. | SUPPORT | RSI SCHOLARSHIP PROGRAM RSI selects 2011/2012 award recipients For more than 20 years, the RSI Scholarship Catrina Green – Northern Illinois University, Program has provided financial aid to exem- Elementary Education plary students pursuing bachelor or associate Kevin Li – Yale University, Chemical degrees. More than 100 students have received Engineering/Biochemistry an RSI scholarship, which has contributed Chelsea Morton – Barnard College, Psychology to their education in a variety of disciplines. Children of RSI and Coordinated Mechanical Thanks to the following member companies Association members are eligible to apply. that donated to the 2011/2012 RSI Scholarship Program. Because of their generous support, In 2011, the RSI Scholarship Committee se- the RSI Scholarship Committee was able to lected six students to receive academic scholar- award two additional $3,000 scholarships. ships of $3,000 each. Applicants were ranked by academic record, community service activi- • Amsted Rail ties, essay, and letters of recommendation. • Chicago Freight Car Leasing Company 2011/2012 RSI scholarship recipients • International Association of Railway Operating Officers Lauren Aamodt – Texas A&M University, Marketing • MAC Products Susanna Cai – Duke University, Engineering • Railinc Corporation Brittany Ford – Eastern Kentucky University, • Relay Systems of America Sociology Wabtec... Your Transportation Equipment & Service Provider - Adantech - Barber Brake Beam - Barber Spring - Bearward Engineering - Becorit - Brush Traction - Cardwell Westinghouse - CoFren - Durox - Fulmer Company - FIP Pty Ltd. - G & B Specialties - Microphor - MotivePower - Hunan CSR Wabtec Transportation Technology Company - Pioneer Friction - Poli - Railroad Friction Products Corporation - Ricon - Ricon Europe - Schaefer Equipment - Shenyang CNR Wabtec Railway Brake Technology Company - Standard Car Truck - Triangle Engineered Products - Swiger Coil Systems - Unifin - Vapor Bus International - Vapor Europe - Vapor Stone Rail Systems - Vapor Stone UK - WABCO Freight Car Products - WABCO Locomotive Products - Wabtec Australia - Wabtec China - Wabtec de Mexico - Wabtec Foundry - Wabtec Global Services - Wabtec Golden Bridge Transportation Technology Company - Wabtec Huaxia Technology Company - Wabtec Japan - Wabtec MZT - Wabtec Passenger Transit Wabtec Rail Limited - Wabtec Railway Electronics - Wabtec Rubber Products - Wabtec South Africa - Wabtec South America - Xorail - Young Touchstone - ZefTek R www.wabtec.com 412-825-1000 16 RSI ANNUAL REPORT 2011
  • 20. | RSI ANNUAL REPORT 2011 | CONNECTION | CONFERENCES AND EVENTS With more than 300,000 square feet of exhibit space, Railway Interchange 2011 included 600-plus North American and international exhibitors and attracted some 9,000 attendees. Bringing together rail decision-makers In 2011, RSI offered several opportunities for members to interact with rail decision-makers and market their products to their customers. RSI events are centered around grassroots leg- islative efforts like Railroad Day on Capitol Hill, marketing and networking events such as Rail- way Interchange 2011, and important advocacy briefings exemplified by RSI’s meeting with Amtrak’s executive committee. Meeting with Amtrak’s Executive Committee RSI staff and representatives from 20 member “The RSI and Amtrak meeting companies participated in RSI’s annual meeting [pictured above] was informa- with Amtrak’s executive committee, including Amtrak President Joseph Boardman. The group tive and useful. It was a chance discussed the railroad’s health, its near- and to meet with the senior Amtrak long-term funding status, and its future procure- ment plans. Amtrak emphasized its consistent leadership team and gain service success throughout its 11 corridors, insights into the business and pointing to the company’s record ridership and revenue levels as it continues to compete favor- future plans.” ably with airlines across the country. —RSI board member Jeff Stearns, Wabtec RSI ANNUAL REPORT 2011 17
  • 21. | RSI ANNUAL REPORT 2011 CONFERENCES AND EVENTS President Boardman also revealed the compa- pliers in Illinois, the delegation met with Sen. ny’s funding points totaling $25 billion over the Dick Durbin (D-Ill.) and Sen. Mark Kirk (R-Ill.) next 30 years. As Amtrak looks to expand its to discuss the affect rail investment has on services, it plans to purchase several thousand American jobs. Meetings also were held with cars and several hundred locomotives. House Transportation and Infrastructure Sub- committee Chairman Bill Shuster (R-Pa.), and Railroad Day on Capitol Hill 2011 the Subcommittee’s Ranking Member Corinne More than 500 rail industry employees met on Brown (D-Fla.). Capitol Hill to promote a pro-rail agenda in 285 Congressional offices. With a unified voice, RSI Annual Meeting lawmakers were advised that investment in At the Annual Members Meeting, held in con- the rail industry is an essential part of the junction with Railway Interchange 2011, RSI nation’s economic growth. This pro-jobs Board of Directors Chairman Greg Vogelman message struck a chord with many lawmakers welcomed attendees with his state of the scrambling to help provide jobs for out-of- association address in which he reflected on work Americans. RSI’s accomplishments in 2011 and projected an optimistic association outlook for 2012. More specifically, attendees reported to members of Congress on the following Following his speech, Vogelman announced exigent rail issues: rail re-regulation, truck three new directors to the RSI Board: TTX sizes and weights, short line tax credits, Company VP-Fleet Management Patrick J. grade crossing safety, and the continuance of Casey, Graham-White President and CEO Jim passenger rail funding. Together, they helped Frantz, and Invensys Rail Corporation President drive home the important role our industry John Paljug. Each will serve a three-year term. plays in restoring America’s economy and environment, while also connecting America Also announced were the 2012 RSI Board to the global marketplace. Officers: Mike Mitrovich of MPL Technology, Inc., Chairman; Robert K. Matthews of Stella- The RSI Board of Directors met with several Jones, Inc., Vice Chair; and Fred Sasser of legislators who are pivotal in making decisions Chicago Freight Car Leasing Company, affecting railway suppliers and their custom- Secretary/Treasurer. ers. Due to the large concentration of rail sup- RSI Railroad Day on the Hill delegation (from left): Senator Dick Durbin, RSI President Tom Simpson, Railway Age Publisher Robert P. DeMarco, Chicago Freight Car Leasing’s Fred Sasser, Stella- Jones’ Rob Matthews, Bob Clement, and Senator Mark Kirk. 18 RSI ANNUAL REPORT 2011
  • 22. “The event was WONDERFUL, we met so many great potential customers, and the organization was second to none. I look forward to attending other events in your industry.” - Deb Mills, Terresolve Technologies LTD Railway Interchange 2011 highlights For three days in September, Railway Interchange 2011 brought the rail supply industry together to display innovative products and advancing technologies as well as to make connections on a packed show floor. Railway Interchange 2011, hosted by RSI, American Railway Engineering and Maintenance-of- Way Association (AREMA), Railway Engineering-Maintenance Suppliers Association, and Railway Systems Suppliers, Inc., proved that a combined show could be a successful show. With ample opportunities to learn more about the trade at the technical sessions held by AREMA and the Coordinated Mechanical Associations, everyone could benefit. As the largest U.S. rail supply trade show in decades, Railway Interchange attracted nearly 9,000 attendees and more than 600 exhibitors to the show areas at the Minneapolis Convention Center and at CP’s Humboldt Yard. EXHIBITS – everywhere you looked, inside and out With more than 300,000 square feet of exhibit space, Railway Interchange 2011 had the rail industry covered. Every square foot was packed with innovative products, new technologies, and potential customers. • More than 600 domestic and international exhibitors • Mechanical, maintenance of way, communications and signaling, and passenger rail industries represented • Indoor exhibits in three halls at the Minneapolis Convention Center • 1.5 miles of outdoor exhibits at CP’s Humboldt Yard ATTENDANCE – a diverse and enthusiastic crowd Approximately 9,000 industry leaders and employees from around the world came to Minne- apolis for Railway Interchange 2011 to see the latest rail technology, learn from useful technical RSI ANNUAL REPORT 2011 19
  • 23. | RSI ANNUAL REPORT 2011 CONFERENCES AND EVENTS Upcoming events Railroad Day on Capitol Hill March 8, 2012 | Washington, D.C. Join RSI as the rail industry gath- ers to promote the rail industry in a unified voice to educate members of Congress on legisla- tion that will improve our indus- try. The day starts with an early morning briefing on important legislative issues, is followed by whirlwind meetings with elected officials and their staff members, and concludes with a gala recep- tion and dinner. Other event sponsors include the Association of American Railroads and Amer- programs, and take advantage of numerous opportunities to meet ican Short Line and Regional customers and colleagues alike. The enthusiasm for the innovation Railroad Association. and collaboration on display further demonstrated the strength of the rail supply industry. RSI/Amtrak Roundtable Railway Interchange was a global event. Our international attendees Meeting Spring 2012 were pleased with the quality of the exhibits, technical programs, Amtrak Headquarters | and ample opportunities to network. More than 1,100 international Washington, D.C. attendees represented 39 countries, including Australia, Brazil, China, Germany, India, Mexico, Russia, and South Africa. Join RSI for its fifth annual roundtable meeting with Amtrak’s executive committee to PROGRAMS – leading-edge industry presentations discuss the status of the passen- Due to a more robust format this year, show attendees could ger railroad, its funding situation, participate in presentations from the Coordinated Mechanical Asso- and its future plans. This meeting ciations (Air Brake Association, International Association of Railway is yet to be scheduled. Atten- Operating Officers, Locomotive Maintenance Officers Association, dance is limited to those compa- and Mechanical Association Railcar Technical Services) and AREMA. nies that belong to RSI. Industry trailblazers spoke about a broad range of topics: engineering; IT; economic issues; structures; passenger and transit; maintenance; RSI/CMA 2012 communications and signaling; and cutting-edge safety technologies. September 22-25, 2012 Presenters included: Sheraton Chicago Hotel & • BNSF and Canadian National speakers discussed benefits and chal- Towers | Chicago, IL lenges of Automated Single Car Test Devices at the ABA seminars. • Mike Jones of the Federal Railroad Administration gave details on the This exhibition is being hosted Cab Technology Integration Laboratory, which aims to assess safety by RSI with technical sessions aspects of cab control/display technology and human performance. presented by the Coordinated • Dave Ward of Siemens and Bill Durham of Amtrak delivered a pre- Mechanical Associations (CMA). sentation on Efficiency and Mechanical Aspects of the New Amtrak RSI/CMA 2012 will feature more Electric Locomotive. than 100 exhibits and presenta- • Bob Toms of Union Tank Car Company highlighted Research & continued on page 21 Development Efforts for Tank and Other Cars. 20 RSI ANNUAL REPORT 2011
  • 24. “It was an exciting and useful show for our companies, and we appreciate all the hard work and dedicated effort of the RSI team!” - Marise Stewart, ElectroMotive Diesel l Progress Rail Services tions by the Air Brake Association, International Association of Rail- way Operating Officers, Locomo- SURVEY SAYS – exhibitors and attendees weigh in tive Maintenance Officers Associa- Exhibitors and attendees had much to say about Railway Inter- tion, and Mechanical Association change 2011, whether it was about exhibiting on the show floor or Railcar Technical Services. attending the technical sessions. Overall, exhibitors and attendees gave the show high marks, and many commented on the high Special events, such as a welcome number of contacts they made. reception and lunches on the show floor, will provide an oppor- “I’ve done more of these shows than I care to admit to and this was tunity to build up your network of the best one we’ve ever attended. The hall was well laid out—there customers and colleagues, and was a general air of excitement and traffic.” see groundbreaking rail technolo- - Tamara Hart, Aero Transportation Products gies on the exhibit floor. The CMA technical sessions will not only “From my perspective I believe the Minneapolis show was a allow attendees to hear industry great success.“ innovators and interesting presen- - Ted Hagemo, Secretary/Treasurer, IAROO tations, it will bring in railroad cus- tomers and provide an opportu- “We found the turnout was exceptional, and we were busy every nity to collaborate with colleagues minute that we were at the show! From a sales and marketing and sharpen technical skills. perspective, it was fantastic! We came away with solid leads and sales. “ - Walter Hughes, RCC Fabricators Railway Interchange 2013 September 29- October 2, 2013 “Always a good show, but I thought this year was possibly the best Indiana Convention Center | in many years. I attended a few of the LMOA presentations (wish I Indianapolis, IN had time for more) and always appreciate the effort that goes into them along with the information given.” Preparations are under way for - Patrick Roach, Interstate Diesel Service, Inc. what is sure to be another suc- cessful joint trade show and tech- nical conference at Railway Inter- change/2013. Sponsored by RSI, Railway Engineering-Maintenance Suppliers Association, and Rail- way Systems Suppliers, Inc., Railway Interchange 2013 will be three trade shows in one and feature hundreds of exhibits from domestic and international rail suppliers. With a wide array of technical programs hosted by American Railway Engineering and Maintenance-of-Way Association and the Coordinated Mechanical Associations, everyone will have something to gain. The Railway Interchange indoor ceremony included (from the left): David Soule, REMSA; Phil Homan, REMSA; Steve Bolte, RSSI; Greg Vogelman, RSI; and Wick Moorman, Norfolk Southern CEO. RSI ANNUAL REPORT 2011 21
  • 25. | RSI ANNUAL REPORT 2011 RSI WORK IN WASHINGTON “We must remain vigilant on all fronts” RSI follows a wide array of legislative issues, the preceding authorization legislation. Finally, ranging from Surface Transportation Board if Congress cannot agree on either policy or Reauthorization to Department of Transporta- spending levels, extensions and continuing res- tion Appropriations. It is important to know that olutions come into play. The federal government there are often two separate tracks for legisla- often operates under a “Continuing Resolution, ” tion that affect the railway supply industry, and an amalgam of policy and spending decisions understanding the differences between them is meant to appease the House of Representatives, crucial. In Congress, authorized committees set the Senate, and the White House. In any case, federal policy and spending limits for federal mischief can ensue, so RSI must remain vigilant programs. The appropriation committees then on all fronts. set specific federal spending levels for any giv- en fiscal year. Theoretically, approving legisla- Taking these considerations into account, RSI tion should precede the appropriations process. has been tracking and advocating for the To complicate matters, Congress can (and does) following legislation and policies: pass appropriation legislation without enacting 22 RSI ANNUAL REPORT 2011
  • 26. | ADVOCACY | funding levels and the length of the reauthorization. RSI continues to advocate for maximum levels of federal funding, which would benefit the commuter railroads and transit agencies that operate light rail systems. In the past, funding levels for those rail- roads have totaled several billion dollars. SAFETEA- LU has been extended several times by Congress to allow for continued funding of federal transportation programs. In late 2011, Congress appeared ready to consider full reauthorization. Truck sizes and weights. SAFETEA-LU also is a vehicle that could be used to increase truck sizes and weights. RSI continues to ask Congress to vote against any increase. Studies have shown that 97,000-pound trucks would lead to an overall freight diversion from railroads to trucks, in the magnitude of 17% for short line railroads and 19% for Class I railroads. In addition, other studies consistently show that trucks do not pay their fair share for the damage they cause to public infrastructure. RSI sup- ports H.R. 1575 and S. 876 legislation (introduced in the House and Senate, respectively) that would cap the length of single truck trailers, freeze the weight of trucks using the 160,000-mile National Highway System (NHS), and extend the freeze on double- and triple-trailer trucks to the entire NHS. Section 130 Highway Rail Grade Crossing Pro- gram. SAFETEA-LU also contains specific funding for the Section 130 Highway Rail Grade Crossing Safety Program. Reauthorization of this important program is in jeopardy as Congress looks to stream- line or eliminate federal transportation programs. RSI supports H.R. 825 and S. 918 legislation that Surface Transportation Board reauthorization. would authorize $220 million from the highway trust The Senate Commerce Committee is considering S. fund to continue to fund the Section 130 program 158, the Surface Transportation Board Reauthoriza- through FY 2015. tion Act. If passed, this legislation could serve as a vehicle to re-regulate the railroads. Senate Com- Short line tax credit. Long a staple of Railroad Day merce Committee Chairman John Rockefeller (D-W. on the Hill legislative activities, the short line tax Va.) has long pushed for this legislation that would, credit needs to be reauthorized. RSI supports H.R. among other things, make significant changes in 721 and S. 672 legislation that would extend this the rail competition policies adopted as part of the program through 2017. Staggers Rail Act of 1980. The Association of Ameri- can Railroads argues that depending on the form the Amtrak and high speed rail. Amtrak and high legislation takes, Class I freight railroads could lose speed rail programs are funded annually through up to $6 billion in revenues. Currently, there is no the U.S. Department of Transportation appropria- interest in the House of Representatives to consider tions legislation. As an integral part of our nation’s a similar bill. transportation system and a customer for many rail suppliers, RSI asks that passenger rail be funded at SAFETEA-LU reauthorization. This expired legis- levels requested by Amtrak. As 2011 closed, it ap- lation funds federal highway and transit programs. peared that Amtrak would receive adequate fund- Congress has been slow to reauthorize since the ing for the remainder of FY 2012, while federal high House of Representatives and Senate differ on speed rail programs were in danger of losing funds. RSI ANNUAL REPORT 2011 23
  • 27. | RSI ANNUAL REPORT 2011 | ADVOCACY | BOB CLEMENT REPORTS RSI Work on Capitol Hill I’ve come to admire the resiliency of the RSI membership more than ever this year, as I’ve had the opportunity to meet many of you face-to-face in Minneapolis at one of the largest rail conferences ever held. I sense a grow- ing momentum of hope for more business opportunities during this slow economic recovery. It is an honor and privilege to represent you in Wash- ington, D.C. RSI has strong leadership on the Board of Directors and an excellent staff to implement our goals. Our overall strategy on Capitol Hill is to pursue beneficial legislation that helps railway suppliers, and to prevent harmful regulations that hurt the rail and railway supply industry. As Congress has challenged the rail industry on both the financial and regulatory fronts, 2011 has been a good year to have solid representation on Capitol Hill. We’ve seen a historic effort by Congress to deal with our nation’s debt crisis by outlining a 10-year budget-slashing plan. The economic debate over reducing debt has created a climate of austerity and forestalled the Transportation Reauthorization bill—now two years overdue—which maps out long-term spending for infrastructure improvements. Congress also has threatened to curtail the President’s high speed rail projects, Amtrak, and railroad crossing safety programs like Operation Lifesaver. So far, these threats have been diverted through strong advocacy among rail supporters and political alliances among transportation stakeholders. Fortunately, transportation and infrastructure projects receive wide bipar- tisan support, as Congress recognizes their power to create jobs. RSI is a Honorable Bob Clement voice that can amplify this message: Transportation investments in America’s future rail, highways, air, and waterways systems are a worthy expenditure. Bob Clement is president of Clement and Associates, LLC, a The railway supply industry has become an increasingly strong influence public affairs firm. He is a former with 650 companies operating more than 800 facilities, and 90,000 employ- Member of Congress (Democrat) ees spread across nearly every Congressional district. I am proud to be part from Tennessee, serving from 1988 of a team, along with Tom Simpson and Nicole Brewin, that represents RSI’s to 2003. While in the House of voice at the top levels of government. This year, our team and board officers Representatives, Clement served as took RSI’s message to the White House where we met with Deputy Chief of a senior member of the Transporta- Staff Nancy Ann DeParle and her staff. In Minneapolis, Transportation Sec- tion and Infrastructure Committee. retary Ray LaHood attended the hugely successful Railway Interchange con- He also served on the Budget Com- vention to address our members and the problems we face. As we visit the mittee, giving him significant insight offices of hundreds of Members of Congress, we continue to stress the influ- into funding procedures in Congress. ence of RSI businesses within each of their respective districts. I look forward   to working with you in 2012 and communicating our issues to our country’s Among his notable legislative top decision-makers. achievements in Congress, Clement initiated significant changes to the Transportation Reauthorization Act, including revising the distribution formula for state funding to ensure federal dollars are more equitably distributed—a formula policy which continues today. Clement and his wife live in Nashville, Tennessee. They have four children. 24 RSI ANNUAL REPORT 2011
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  • 29. | RSI ANNUAL REPORT 2011 ADVOCACY EFFORTS RSI lobbyist Bob Clement (far left), Chair Greg Vogelman, Secretary Treasurer Rob Matthews, immediate past Chairman Bob Pokorski, and President Tom Simpson met with White House officials to discuss the rail supply industry. “I was happy to point out there were more than 100 railway supply companies with facilities in Illinois, serving both the freight and passenger railroad industry, and who had thousands of employees, said Simpson after the confer- ” ence. “Based on RSI data, Illinois railway supply companies represent more than 30% of total domestic sales of the entire supply industry.” Also speaking at the event were Illinois Senator Richard Durbin, Congresswoman Jan Scha- kowsky, Congressman Dan Lipinski, Federal Railroad Administrator Joe Szabo, Union Pa- cific’s Joe Bateman, and representatives from Illinois DOT, Amtrak, and rail labor. On Capitol Hill: RSI advocates continued Actively advocating funding for safety programs and dedicated for the rail industry source of funding at House hearing In April, RSI President Tom Simpson testified be- fore the U.S. House of Representatives Commit- In the states: RSI participates in Illinois high tee on Transportation & Infrastructure Subcom- speed rail press conference mittee on Railroads, Pipelines, and Hazardous Materials (pictured below). In his testimony, In March, at the invitation of Illinois Governor Simpson noted that “decisions made during the Pat Quinn, RSI President Tom Simpson partici- debate of reauthorizing The Safe, Accountable, pated in a press conference announcing the Flexible, Efficient Transportation Equity Act: A beginning of construction season for infrastruc- Legacy for Users (SAFETEA-LU) will have a pro- ture upgrades on the Union Pacific line between found impact on the rail supply industry. ” Chicago, Ill., and St. Louis, Mo. This line will eventually allow for higher speed passenger RSI submitted five program recommendations service on the line. to the Subcommittee that will provide more cer- tainty in the marketplace, continue to ensure “Today’s agreement marks another major step toward making high speed rail a reality in Illinois, said Governor Quinn. “Bringing high ” speed rail to Illinois has been a top priority of my administration because of the thousands of jobs and long-term investment it will bring to our state.” Simpson congratulated the governor for the leadership Illinois is showing in improving and expanding passenger rail service, and explained how important the railway supply industry is to Illinois. 26 RSI ANNUAL REPORT 2011