Tomorrow and beyond in Equipment Evolution Innovations & Trends

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Tomorrow and beyond in Equipment Evolution Innovations & Trends Presented by Robert E. Pickel Senior Vice President, Marketing and Sales National Steel Car N.A. Inc. June 18, 2013 1

Today s Railcars Provide More Efficiency 2

Light Weight Railcars Higher payload per car: Example: 50 6 Box car carrying capacity increase Between the 50s and 2011, 1 pound of additional tare weight => 7 pounds of additional carrying capacity 2011 1989 1979 Prior 1960 3

Light Weight Railcars Impact on Transportation Costs Additional capacity or lighter tare reduces transportation cost per unit carried: Obvious when rate per car. Other example: Shipping documentation Switching (intra plant) Placing a car Diversion Fuel Surcharge Weighing a car Cancellation of an empty car order Others 4

Light Weight Railcars Impact on Transportation Costs Additional Capacity Reduced Transportation cost: Reduction not so obvious when Tariff based on GRL. Example, published tariff for urea between specific Origin-Destination (distance of approximately 1,300 miles) : CAR (shipper supplied) Rate GRL< 263,000 lb. $5,578 GRL> 263,000 lb. $6,024 5

Light Weight Railcars Impact on Transportation Costs Additional Capacity Generally Reduces Transportation cost. Example: The Benefits are: CAR CAPACITY Cost/100 lb. Cost/100 lb. for Add. Capacity GRL< 263,000 lb. 198,000 lb. $2.82 Not applicable GRL> 263,000 lb. 225,067 lb. $2.82 $1.39 Note: The car with a GRL of 263,000 lb. was picked from The Car and Locomotive Cyclopedia and the car with a GRL of 286,000 was built by NSC in 2011 6

Light Weight Railcars Impact on Transportation Costs Additional capacity generally reduces transportation cost. Example: Other factors come to play. For example, Published Rate for lumber between specific Origin-Destination (distance of approximately 750 miles, tariff from a US Class 1) : CAR (shipper supplied) Rate 50 Box Car $5,799 60 Box Car $6,822 7

Light Weight Railcars Impact on Transportation Costs However, matching of the car to the commodity remains crucial. Example: Depending of the type of lumber, the cost/1000 board-feet in a larger car may be higher. For Example: Red Cedar CAR CAPACITY Cost/1000 b.f. 50 Box Car 215,000 lb. $77 60 Box Car 208,000 lb. $75 Hickory CAR CAPACITY Cost/1000 b.f. 50 Box Car 215,000 lb. $115 60 Box Car 208,000 lb. $139 8

Shorter Foot Print Impact on Transportation Costs Shorter foot print improves train productivity. Example: 9

Shorter Foot Print Impact on Transportation Costs Shorter foot print improves train productivity. Example Covered Hopper car, taking into consideration the specific car length: (Based on the car length for old to new cars from the previous graphic and 10,000 ft train) 10

Lower Fuel Consumption Impact on Transportation Costs Globally fuel consumption declined for two major factors: Better locomotives Car tare weight reduction Freight Fuel Consumption per 1,000 RTK (Litres) Graphic from Transportation Canada http://www.tc.gc.ca/eng/programs/environment-ecofreight-about-voluntary-voluntaryagreementsrail-1850.htm#2.3.1 21.3% Fuel reduction between 1990 & 2008 The U.S. Energy Information Administration in their 2013 Outlook predicts an improvement from 3.4 to 3.5 ton-miles per 000 BTU between 2011 & 2020. (PAGE 136) 11

Hybrid Railcars Hybrid cars built are steel-aluminum or steel-stainless steel Use of more exotic materials present the following advantages: Lighter weight Corrosion resistance Aluminum commonly used for coal cars and composite for bi-tri level cars doors. 12

Hybrid Railcars Example of stainless steel car Use of stainless steel to prevent corrosion Courtesy of Trinity Industries 13

Hybrid Railcars Most of the hybrid cars built are steel-aluminum or steelstainless steel Use of more exotic materials present the following challenges: Some offer poor fatigue properties (ex. welded aluminum) Difficulty to achieve high strength structural connections Sometimes not weldable, or, when welding expertise not commonly available, must be bolted High material cost and high labor cost drive up the initial acquisition cost 14

ECP Brake System Simultaneously apply and release the entire train brake resulting in: Reduced in-train forces Shorter stopping distances (40% to 60% versus conventional braking) Improved train handling Decreased coupler and draft gear failures Increase brake shoe and wheel life Fuel savings Automatic train consist identification and vehicle sequencing Real time train brake status feedback Courtesy of New York Air Brake 15

The Smart Car Real time monitoring of cars: From Trains, July 2013, page 20 In addition of the 5 elements listed above the following sensors can be added: Internal temperature-pressure sensors Open gate and hatch sensor Draft gear sensor 16

Computer Models and Analysis New software permits to design better cars: 3D Solid Modeling: To assemble the car to verify geometry and functionality Provides accurate dimensions of parts and assemblies Simulates components/assemblies in motion to verify interference Creates shop drawings ANSYS: Finite Element Analysis To check the car design against AAR requirements Refine the design to meet customer requirements Stress analysis for fatigue calculations 17

Computer Models and Analysis New software permits to design better cars: Design Simulation: Kinematics Analysis: To calculate the kinetic forces resulting in motion Feeds data to NUCAR NUCAR: Dynamic simulation To calculate the stability of the car in motion 18

Today s Railcars Impact on Railroad Operations 19

Longer Trains and Distributed Power Placing additional remotely controlled locomotives at intermediate points in the middle of the trains: Reported Technical Advantages: Reduction of coupler forces on the front cars Quicker application of standard air brake Some intermodal trains with distributed power occasionally reach up to 14,000 ft. 20

Longer Trains and Distributed Power Reported Benefits: Improves safety, reduces derailment occurrences Improves hauling capacity Improves fuel efficiency by 6% to 12% (estimate) and route capacity Reduces CO 2 emissions Faster delivery by increasing average speed and route capacity Reduces track and car maintenance costs Accrued benefits when technologies combined (ECP, Friction Management Systems, etc.) 21

Greater Forces on Railcars Draft Force: Pull force at the couplers. Maximum allowed: 900,000 lb. Buff Force: compressive force at the couplers. Maximum allowed: 900,000 lb. Impact Force: Compressive force on one coupler only. Maximum allowed: 1,250,000 lb. over a fraction of a second Those limits are subject to change. Based on new recommended practices such as S-286. 22

M-976 Standards for Improved Railcar Performance and Reduced Stress on Railroad Truck Assembly: Improved truck dynamics Restricted hunting, roll and twist, bounce and pitch and sway Side Bearing: Long travel constant contact side bearings new standard Improved stability higher hunting threshold 23

Railroad Operations Monitoring WILD Detectors: Wheel Impact Load Detector. Used to improve load signature to distinguish wheels with a high probability of failure from high impact wheels with a low probability of failure. Consist in a series of calibrated strain gauges sensors welded to the rail and a signal processor that analyze the data to isolate wheel tread irregularities. 24

Railroad Operations Monitoring WILD Detectors: Wheel Impact Load Detector Reported Benefits: Prevents derailments Reduces damages to the car structure, bearings, lading, rail and other mechanical components Reduces damages to cargo and infrastructure 25

Railroad Operations Monitoring Truck Hunting Detectors Detect excessive side-to-side lateral instability (hunting) Consist in a series of gauges measuring vertical and lateral loads to identify critical instances where the wheel flange and rail gage face geometry may promote flange-climb derailment. 26

Railroad Operations Monitoring Truck Hunting Detectors Reported Benefits: Reduces damages to the car Reduces damages to track structure Reduces damages to cargo 27

Railroad Operations Monitoring Overloads Detector: Detect the following conditions: Overload Load imbalance Consist in a series of calibrated strain gauges sensors welded to the rail and a signal processor that analyze the data to isolate excessive/imbalance car loading. 28

Railroad Operations Monitoring Overloads Detector: Reported Benefits: Reduces operating costs Reduces track damages structure Reduces need to take cars out of service for axle weight 29

Railroad Infrastructure Coopers Ratings and Bridges Formula to estimate live loads on railroad bridges. The minimum truck center and the length over the pulling faces of the couplers (LOPFC) are function of the car GRL and calculated using the Coopers Rating formulas. AAR M1001, Section C-II: load limit of 6,820 lbs/ft for 263,000 & 286,000 GRL For cars offering a 315,000 lb. GRL, the formula dictates longer LOPFC (46 2 vs 41 11 for 286,000 GRL) 30

Railroad Infrastructure Coopers Ratings and Bridges UP Kate Shelley Bridge yesterday and today Courtesy of Union Pacific 31

Railroad Infrastructure 315,000 pound Gross Rail Load generally will: Increase the GRL by 29,000 lbs. Increase tare weight: 6,000 to 12,000 lbs. Increase capacity by 17,000-23,000 lbs. Increase minimum car length by 10% Require adapted trucks and specialties 32

THANK YOU Trusted to Deliver Excellence 33