September 12, 2023

The USA has launched a proposal for a Reciprocal Switching Rule (known as interswitching here in Canada).

Organized by the Surface Transportation Board, the new rule making process was launched Sept 7 and will end Oct 23. It seems as though the rule will be established unless there is a significant mobilization of the rail companies.

The reason for the proposed rule is that

"… many rail customers nationwide have suffered from inadequate and deteriorating rail service”

–STB Chairman Martin J. Oberman

The goal is to speed-up and reduce the costs of obtaining an interswitching agreement/order when a service provider fails to meet three performance criteria:

• Service Reliability
• Service Consistency
• Inadequate Local Service

There are strict outlines of what those criteria are.

STB said it proposes that reciprocal switching agreements “would be for a minimum period of two years and up to a maximum of four years, depending on the evidence presented.”

The rail companies are not enthusiastic as they have been fighting against this kind of regulation for decades.

The history of expanding the access to interswitching in the USA is very similar to the time frame here in Canada—during a time of increased costs to shippers.

While it is unlikely to result in significant reduction in costs for shippers given the experience here in Canada, it may drive down rail company profits.

The question right now is will this allow the Canadian arms of these companies bid on USA routes and what impact (if any) will that have on Canadian jobs.

More here by the Railway Age publication.

• UP recently furloughed 94 craft employees last month
• This week the Surface Transportation Board has issued a notice that UP rail was not meeting their regulated obligations under the maintenance of their locomotives and cars.

Rail companies brought in large profits during the pandemic. But, recent derailments and higher profile given to the industry under the Biden Administration has translated into more regulatory oversight.

More here.

A new study has estimated that the move to electric vehicles in heavy-duty trucking (and local logistics) will have a positive impact on the environment of some of North America's poorest communities.

Poorer communities tend to be nearer large trucking depots and intermodal terminal. People in these communities have been shown to be exposed to much higher rates of pollution leading to increased "environmental inequality" when compared to higher income neighbourhoods.

One benefit of expanded regulations forcing the move away from diesel fuel is quality of life in these neighbourhoods. In Canada, environmental racism has been a topic focusing on First Nations communities access to drinking water. However, poor communities tend to be more racialized in Canada outside First Nations as well.

The resulting question is that while the move to electric vehicles can be celebrated around transportation hubs, the regulations involving the generation of electricity, the production of these new technologies, and access to these jobs continues to be an environment-related equity issue.

Parallel Systems is financed by Department of Energy and private capital to make trains cars "autonomous" (read, controlled at a distance) and electric.

The savings that would make such an investment possible is replacing the distance for intermodal trucking and transfers along with reducing capital costs of terminals for new entrance to the market.

Some of the design choices are a little bizarre such as they do not connect physically and are individualized. Seems like a dangerous thing to have an independent car driving itself around or between yards.

https://www.railwayage.com/mechanical/freight-cars/watch-parallel-systems-debuts-2nd-gen-autonomous-battery-electric-freight-car/

They are currently testing in short-haul private rail yards, but it is clear the investment is for sales to Class 1.

These cars are a whole different thing from current cars in terms of maintenance and things that could go wrong from an inspectors view.