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12/19/2024
By Daniel MacGregor, Co-founder of Nexxiot
RailTrends® 2024 showcased a pivotal moment for the rail industry: a chance to define its role in the global supply chain by leveraging technology, improving service, and aligning stakeholders to a higher purpose. From discussions about reducing friction in interchanges to long-term cultural change, RailTrends supplied a roadmap for the industry to evolve.
Over two days, leaders, analysts and innovators emphasized that data-driven services and technology adoption are not ends in themselves — they are tools to achieve transit reliability, improve efficiency, empower people and create a better life for the next generation.
The conference opened with a fireside chat featuring Chuck Baker (ASLRRA), Marc Brazeau (RAC), and Ian Jefferies (AAR). Ian made a case for adopting advanced technologies to improve safety and operational performance, likening modern rail diagnostics to medical advancements. “If you had a health condition, you’d want an MRI or X-ray instead of a doctor who just looks at you and says, ‘You look fine to me.’ Railroads need that same level of attention,” he said. Autonomous track inspections and other digital tools like GPS and sensors are already enabling more precise, reliable operations.
Technology holds the key to solving long-standing operational challenges. Marc emphasized the need for regulatory frameworks that encourage innovation, urging the FRA to focus on safety while supporting data-driven approaches to decision-making. Meanwhile, Chuck praised the entrepreneurial spirit of short lines, calling them “growth engines” for the industry. He pointed out that CRISI grants allow short lines to invest in the infrastructure needed to integrate seamlessly with Class Is, improving transit reliability and eliminating interchange frictions.
Adriene Bailey of Oliver Wyman delivered a highly anticipated and compelling keynote, identifying technology as the enabler for a more reliable and efficient rail network. She called for greater efforts in eliminating operational frictions between Class Is and short lines, which often hinder transit reliability and limit growth opportunities. “Long-term intermodal growth requires us to rethink how we collaborate and streamline the interchange process,” she said.
Bailey also addressed the service gap between rail and trucking. “Shippers want to use rail but can’t stand the difficulties and frustrations,” she said, emphasizing that transit reliability and a better customer experience are non-negotiable. “The hardest shift is cultural — how employees are treated directly impacts how customers experience the service.”
Her recommendations, which include improving responsiveness, reinvigorating sales and marketing, and using technology to simplify processes emphasize that collaboration and technology adoption go hand in hand.Adriene said, “Shippers need easier, faster, and safer ways of doing business. Stakeholders and investors need to see the industry ‘walk the talk’ and drive a step change to deliver transport reliability. Not just figure out how to earn more on someone’s freight, but constantly invest in technology to improve service, interoperability, productivity and safety.”
Throughout the conference, speakers returned to the theme of data as a critical enabler for railroads to exceed customer expectations and create more value. David Shannon of RailPulse highlighted the coalition’s success in creating a standardized data and service framework to improve safety, visibility and asset utilization.
RailPulse is an example of what successful collaboration in the industry can look like. It currently monitors five key data points: GPS location, handbrake status, impact detection, load/empty state and door/hatch position.“This is about more than just railroads,” Shannon said. “It’s about creating value for shippers by delivering the certainty and transparency they need.” By providing real-time data, RailPulse is helping shippers optimize supply chains while enabling railroads to improve service consistency and resource deployment.
Ken Mannka from Nexxiot emphasized that the required technology isn’t theoretical, it’s here and it’s already redefining customer experience and boosting confidence in rail. Innovations like door sensors and predictive analytics allow railroads to act proactively, avoid disruptions and prevent reliability issues. “Shippers need assurances, and real-time data delivers that certainty. We are building up the technology and service ecosystem with a focus on enabling real-time visibility for better safety and efficiency,” Mannka said.
While technology and data are powerful tools, conference speakers repeatedly emphasized that people and culture are the foundation for achieving transit reliability and customer satisfaction.
Joe Hinrichs (CSX) tied employee engagement directly to service excellence. “There’s no trust without a relationship and no relationship without engagement,” he said. “To reach a higher order of purpose,” Hinrichs commented, “railroads must create workplaces where employees feel respected, motivated and aligned with the company’s mission. Safety, service, and efficiency — they’re all connected,” he said, highlighting the link between employee experience and operational outcomes.
He went on to say, “Customers want the railroads to be successful. They want the experience to be holistic. This requires us to raise the performance across the industry. Mobile GPS and connectivity have been with us for 30 years. It seems to be an enabler for many of our priorities in rail. Reliability performance, customer experience, and resource deployment — to give certainty to all stakeholders. What does it take to accelerate digital adoption?”
John Orr (Norfolk Southern) echoed this sentiment, emphasizing trust and communication during times of change. “The organization needs to feel that change is good for them and the company,” Orr said. High-performance terminals, which improve transit reliability and enable smoother interchanges, are also essential tools for achieving these cultural and operational goals. Restore safety and restore service.
He made a bold statement about the appropriate transport modality for freight, “A truck on the highway sickens me. It doesn’t belong there. It doesn’t belong next to a minibus full of children.”
One of the most inspiring messages of RailTrends 2024 was that railroads must look beyond immediate challenges and focus on their broader societal impact. Tracy Robinson (CN) delivered a compelling call to action, urging railroads to “tell the story and shape it.”
“We need to shift from just targeting excellence today to build excellence for the next generation,” Robinson said. She described RailTrends as the “Woodstock of rail,” capturing the collaborative and transformative energy of the event. After her remarks, Tony Hatch (ABH Consulting), who’d been driving the dialogue throughout the event, chimed in with a light-hearted, “Your presentation was groovy, man,” in true Woodstock style.
Patrick Fuchs of the STB reinforced the importance of looking ahead and working collaboratively. “The rail industry and shippers are more aligned than ever. To meet the future head-on, we need better integration of technology and human expertise. This will play an important role in who we become as an ecosystem.” he said. Fuchs also emphasized the need for smooth commerce flows and stronger partnerships, linking these efforts directly to improving transit reliability and enabling better service.
The conference closed on a strong note of optimism, with speakers calling for harmony amongst stakeholders. Michael Miller (Genesee & Wyoming) captured the mood perfectly with his jazz-band analogy. “Get out of the way and let the jazz band play,” he said, emphasizing the importance of collaboration and agility in meeting customer demands. He also talked about building a technology ecosystem and the need to make it easy to do business with railroads. He mentioned Uber Freight as an example of rapid business transformation and competition, emphasizing the need to accelerate change.
Tony Hatch summed up the conference’s key message: “The rail industry has the tools, technology, data and people. Now it’s about putting them to work in harmony.”
A stronger, more reliable rail industry requires technology, collaboration and purpose. By harnessing real-time data to eliminate inefficiencies, such as those at interchanges, and aligning people and processes, railroads can deliver a better experience for employees and customers alike.
With the progress of RailPulse, a renewed focus on transit reliability, and a commitment to transforming culture, the rail industry is poised to take the lead in building a resilient, sustainable, and efficient supply chain. As Hinrichs said, “The data will set you free. Let’s use it to create the railroad of the future, and a better future for us all.”