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October 2024
Compiled by Julie Sneider, Senior Editor
In response to a string of rail accidents involving tank cars transporting flammable hazardous materials in Canada and the United States, Congress in 2015 passed regulations requiring that cars carrying certain types of hazmats must meet new safety standards.
According to the U.S. Bureau of Transportation Statistics, jacketed CPC-1232 cars can still carry crude oil or ethanol until May 1, 2025. All tank cars carrying other Class 3 flammable liquids will need to meet DOT-117 or equivalent specifications by May 1, 2025 (Packing Group I) or May 1, 2029 (Packing Groups II/III).
As a result, the tank-car market in 2024 has been highly focused on regulatory compliance, with the deadlines driving demand for retrofits and new builds, tank-car builders, lessors and component suppliers say.
To learn what’s trending and what products and services are offered in the market, Progressive Railroading recently reached out to a handful of those constituents. Following are emailed responses from five of them.
AITX’s tank-car customers rely on the company as a full-service partner. In today’s market, that means going beyond rail-car availability and uptime and offering customers solutions and technologies that optimize their operations and drive business efficiency, AITX officials said.
This year has been a dynamic one for tank cars. Strong shipments of chemical and petroleum products, along with steady agricultural shipments, have balanced supply and demand, AITX officials said. With the FAST Act deadlines in 2025 and 2029 approaching, new-build activity — particularly for 117J spec rail cars — has remained steady. Meanwhile, retrofitting and scrapping of DOT-111 tank cars have slowed, though some activity continues, company officials said.
To stay ahead of market trends, AITX aims to deliver solutions that go beyond traditional services; the company also focuses on innovations that enable customers to optimize their freight logistics. One key AITX initiative is a GPS-based telematics program that offers real-time visibility, precise tracking and optimized routing designed to help customers manage their assets more efficiently and build resilience while lowering costs.
To that end, AITX is piloting an enhanced telematics program designed to deliver even deeper insights and enable smarter, data-driven decisions. By equipping customers with these advanced tools, the company aims to ensure customers have the expertise and innovations they need to thrive in an evolving industry, AITX officials said.
The railway industry continually strives to increase capacity and improve operational efficiency while focusing on safety. As new rail cars enter the fleet, they bring additional carrying capacity and heavier axle loads, along with the likelihood of running in progressively longer trains at higher speeds.
Given the more substantial demand on equipment and infrastructure, Amsted Rail and Amsted Digital Solutions have released the TrakMaster® bogie system and the IQ Series™ telematics gateway.
TrakMaster, the latest AAR M-976-approved bogie system from Amsted Rail, is designed to take these operational challenges head on, Amsted officials said. High warp stiffness, achieved through higher energy-damping spring forces in combination with a proprietary friction material, keeps the bogie frame square to enhance rail-car stability and lower curving resistance at the wheel-to-rail interface. The reduced lateral input forces at the wheel flanges further improve rail-car stability in motion.
Amsted Digital Solutions’ IQ Series gateway with Bogie IQ® technology is a first-of-its-kind, sensor-free telematics solution, company officials said. Installed on the bolster of the bogie system, the IQ Series gateway monitors a rail car’s real-time location, load status and brake and wheelset health through vibration and acceleration data.
By eliminating the need for wireless sensors, Amsted Digital Solutions has lowered the total adoption cost of a telematics system while creating a more sustainable solution by reducing future disposal costs and impacts, company officials said.
The Greenbrier Cos. is delivering innovative solutions designed to meet regulatory deadlines as well as its customers’ evolving needs, according to the company. With over 40 tank-car designs, Greenbrier has built more than 125,000 tank cars globally, including one-third of the North American fleet.
Greenbrier’s tank cars transport essential commodities such as vegetable oil, sulfuric acid, ethanol and liquefied petroleum gas.
With this year’s tank-car market focused on regulatory compliance, the company is positioned to help customers stay ahead of the curve by offering comprehensive retrofit and replacement solutions, Greenbrier officials said.
“Our ongoing commitment to innovation and regulatory compliance helps ensure our customers can meet evolving standards with confidence,” they said. “As we advance technology and enhance our services, Greenbrier remains dedicated to supporting the tank-car market’s dynamic needs and contributing to its continued progress.”
In the past, tank cars were equipped with the most inexpensive running gear. It’s hard to understand this strategy when tank cars carry the most sensitive commodities on the railroad, said Bill O’Donnell, executive director of global sales for Miner Enterprises Inc.
“Reconditioned draft gears are just one example,” he said. “Why would you equip a 50-year asset with a partially worn-out component that is key to protecting the rail car and avoiding a safety issue?”
This is especially important after the removal of language in the AAR Field Manual Rule 21 regarding draft gear age limit replacement, O’Donnell added.
As a result, more of Miner Enterprises’ customers are relying on the Miner TF-880 draft gear, with its 40-plus years of experience and 1.6 million gears in service. For even greater protection, customers are starting to apply Miner TF-5450 draft gears with close to double the protection.
New tank cars were equipped with gap style side bearings until 2002, when the AAR mandated constant contact side bearings (CCSB) on all new rail cars, including tank cars, O’Donnell said. In 2005, the AAR mandated that all existing tank cars be retrofitted with CCSBs.
Both mandates required the use of metal capped long-travel designs, which Miner Enterprises was the first to develop, company officials said. This design improves high-speed stability and curve negotiation.
The Miner TCC-III and TCC-IV are the industry standard today for tank-car side bearings, O’Donnell believes.
While TrinityRail continues to note the ongoing effort to better match tank-car product offerings with shipper’s requirements, one area of growth is helping shippers with service-related needs to better manage their fleet and supply chain, company officials said. Among the services in demand are tank-car cleaning, repair and recertification work.
“We are also seeing growth in mobile repair networks, or MRUs, that take maintenance and repair on-site to better meet customers’ needs in a more focused and dedicated manner,” said TrinityRail officials.
In response, the company’s field support team offers consulting, advising and operations evaluation to review customer procedures, loading and unloading methods and operations. Technical troubleshooting can address on-site issues with loading and/or unloading tank cars.
In addition, customer training includes “Rail Car 101”-type courses geared toward new hires who may be less familiar with rail. Tailored training typically includes a customer site visit to discuss car types, commodities, procedures, loading and/or unloading methods, and any equipment specific to the customer’s operation. Specific training is also available for rail shippers that handle hazardous materials.
Also, shippers — including those with tank-car fleets — are increasingly seeking to unlock the value that logistics solutions can bring to their operations, such as those offered by RSI Logistics, TrinityRail officials said. Solutions include enhanced tracking and management of shipper’s fleets and automated reporting.
Email questions or comments to julie.sneider@tradepress.com.
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