Economy

Posted by Fred Frailey
on Wednesday, May 06, 2015

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Now come electronically controlled pneumatic brakes, better known as ECP. The U.S. Department of Transportation told railroads that crude oil trains of more than 69 cars must have ECP braking by 2021 or it will restrict these trains to 30 mph at all times. At this, the normally unflappable Ed Hamberger, president of the Association of American Railroads, went haywire. “First and foremost, the DOT has no substantial evidence to support a safety justification for mandating ECP brakes, which will not prevent accidents,” Hamberger said. “The DOT couldn’t make a safety case for ECP but forged ahead anyhow.” Expect the AAR to challenge this rule in court.
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So I’ll make the case for ECP. (By the way, the standards were developed two decades ago by the same AAR that now vigorously opposes their implementation.) A train equipped with electronic braking is hard-wired, allowing instant communication from airbrake handle in the locomotive to every brake valve on the cars. The principal advantages are that all brakes instantly apply and release at the same time, the air supply is continually charged, engineers can gradually release and reapply brakes, and undesired emergency braking (dynamiters, they’re called) virtually disappear. In-train forces, such as slack roll-in and roll-out, are greatly reduced, and that lessens the risk of derailment. Moreover, stopping distance is reduced 40 to 60 percent, permitting higher train speeds and higher speeds approaching restricting signals. Longer trains are possible. Longer trains run at higher speeds increase the capacity of the railroad network. Because air is always charging, braking power is inexhaustible; plus, a train can stop and instantly restart. Brakes, draft gear, wheels, and bearings require less maintenance. Existing federal regulations would allow train inspections every 5,000 miles instead of the present 1,500 or 1,000 miles.

Those are a lot of advantages. In a report commissioned by the Federal Railroad Administration in 2005, the consulting company Booz Allen Hamilton estimated the cost of full implementation of ECP at $6 billion and the measurable savings (not including added network capacity) at $650 million a year. Booz recommended that ECP conversion begin with coal trains loaded in Wyoming’s Powder River Basin, then to other types of unit trains (presumably including intermodal trains), and finally the rest of the car fleet — all in a 15-year time frame. “As applied to western coal service,” its report stated, “the business case is substantial,” with a recovery of all costs within three years. ... And yet, a decade later, nothing has happened, and probably at the urging of his member railroads, Ed Hamberger is fightin’ mad and probably on his way to federal court.

Several things are going on here. Silos are one. Nobody is looking at the big picture, just his or her little piece of it. The boys in the Mechanical Silo could care less about increased network capacity. The occupants of the Finance Silo don’t want to divert cash flow away from share buybacks, their favorite toy. Most of those in the CEO Silo didn’t come up on the operating side and are probably bored by the subject. In a conservative, mature business like railroading, risk taking and even forward thinking are not rewarded. And the cost of hard-wiring the car fleet would primarily be borne by shippers, who own most of the equipment, whereas railroads would reap the benefits. How to share the benefits with car-owning shippers leads to very difficult negotiations.