Open Top Opportunities. Business Development Design Product for Rail Transport. Brent Lichty Union Pacific RR. Lindy Pope Norfolk Southern RR
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1 Open Top Opportunities Business Development Design Product for Rail Transport Brent Lichty Union Pacific RR Lindy Pope Norfolk Southern RR Scott Loudon Cordstrap Inc. Savannah, GA July 26, Damage Prevention and Freight Claims Conference 1
2 Business Development Open Top Opportunities to Expand and Grow Why Rail and Developing Business? Barriers & Limitations Equipment Infrastructure Manufacturing Packaging Rail on the forefront of thinking Manufacturing Conceptual Forward Thinking Development Business Development Contacts Questions 2
3 Why Freight Rail? Cost effective Volume enables economic efficiency Safe Environmentally friendly Foundation for passenger rail ASSOCIATION OF AMERICAN RAILROADS SLIDE 3 3
4 Long-Term Demand for Freight Transportation Will Surge Billions of Tons of Freight Transported in the U.S E 2025 P 2035 P 2045 P The U.S. DOT forecasts total U.S. freight movements to rise from around 18.0 billion tons in 2015 to 25.3 billion tons in 2045 a 41% increase. E Estimated P Projected Source: FHWA - Freight Analysis Framework, version 4.3 * Data provided by the ASSOCIATION OF AMERICAN RAILROADS 2017 RRs 101 presentation 4
5 Size Matters Railroads Scale Enables Efficiency Elsewhere in Economy: One railcar of coal = electricity for ~21 households for a year. One railcar of wheat = ~258,000 loaves of bread. One railcar of corn = ~37,000 chickens or ~480,000 bags of Fritos. One railcar of ammonia fertilizer = ~770 acres of corn. *Data provided by the ASSOCIATION OF AMERICAN RAILROADS 2017 RRs 101 presentation SLIDE 5 ASSOCIATION OF AMERICAN RAILROADS 5
6 Why Freight Rail? Big Environmental Benefits In 2016, RRs moved a ton of freight an average of 468 miles per gallon. 4x more fuel efficient than trucks: Rail reduces greenhouse gases by 75%. One train = hundreds of trucks, cuts highway congestion and pressure to build new highways. *Data provided by the ASSOCIATION OF AMERICAN RAILROADS 2017 RRs 101 presentation SLIDE 6 ASSOCIATION OF AMERICAN RAILROADS 6
7 Why Freight Rail? Big Environmental Benefits 7
8 Why Freight Rail? Fuel Efficiency 8
9 Why Freight Rail? Fighting Highway Congestion Highway congestion = $160 billion in wasted time (6.9 billion hours) and wasted fuel (3.1 billion gallons).* Lost productivity, cargo delays, and other costs add tens of billions of dollars to this tab. A typical rail car replaces 3-4 trucks. *2014 data from the Texas Transportation Institute SLIDE 9 9
10 Manufacturing and Railroad Teamwork Utilizing the efficiencies of rail transport 10
11 Railroad Equipment and Infrastructure Equipment standards and dimensions are standardized Manufacturing efficiencies bigger = better
12 Railcar Manufacturing Needed to Support the Industry Limited quantity of railcars manufactured to support potential volume increase. 12
13 Equipment and Infrastructure Limitations Railroad Right of Way and Clearances, limit some business development 13
14 Equipment and Infrastructure Limitations Capacities and Availability Buck Ramp 15K lbs. and 95 width 14
15 North American Rail vs. Foreign Country Rail Methods, Materials, Speed, Car Build, Operations 15
16 Design and Manufacturing Limitations Tie Down Provisions, Frame Construction, Glass protection 16
17 Design and Manufacturing Limitations Redesign with tie down provisions to reduce the manual and intense loading and securements of the figure. 17
18 Design and Manufacturing Limitations Incorporate tie down provisions to meet AAR securement requirements 18
19 Design and Manufacturing Limitations Hot New Market with railroad infrastructure limitations 19
20 Design and Manufacturing Limitations Manufactured Homes interior structures and systems 20
21 Design and Manufacturing Limitations Mobility and deployment for new energy and oil exploration and production 21
22 Design and Manufacturing Limitations Scissor Lifts Ice Fishing Structures 22
23 Packaging and Securement Limitations Protection from rain, snow and increased weight, along with fire protection. Utilize existing industry equipment. 23
24 Railcar Redesign and Experimental Testing Industry interest without heavy capital investment 24
25 Packaging and Securement Limitations Need innovation for improved rail packaging 25
26 Packaging and Securement Limitations 26
27 Manufactured and Designed to move via rail in North America and around the World 27
28 Manufactured and Designed to move via rail AAR Supported Securement Testing and Figures 28
29 Specialized Project Manufacturing Change Emergency Response FEMA and Hurricane Katrina 29
30 Specialized Project Manufacturing Change Emergency Response FEMA and Hurricane Katrina 30
31 Manufacturing Change and Design Railcar and Securement Retrofit to utilize rail efficiency 31
32 Manufacturing Change and Design Roofing Shingles successful transition to Open Top Loading and Rule Development 32
33 Manufacturing Change and Design Packaging and Securement innovation to utilize rail efficiency 33
34 Innovation and Product Development Enhanced product development has resulted in new opportunities in securement materials and methods 34
35 Railroad Business Development Contacts Gary Gambill CSX Greg Shimonek UPRR Michael Favreau CP Railway Jason Reiner NSRR Kyle Cooper BNSF Railway
36 On behalf of the AAR Open Top Rules Committee, Thank You for your time. 36
37 Questions? 37
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