Anastacia Sullivan – Director of Operations, Planning & Business Development

Ms. Sullivan has been in the transportation industry now for over 8 1/2 years. She began her career in social sciences with degrees in anthropology and social psychology, and was able to bring that experience in statistics, demography and project management into a transportation consulting environment. She has experience with both hands-on field research and overall analysis, and has served as a Writing Consultant for 2 colleges. Ms. Sullivan has worked primarily in commercial logistics, rail infrastructure projects and market studies and analyses. Ms. Sullivan is currently seeking certification in project management and economic development, logging hours as project manager and coordinator for numerous development projects in transportation, including both domestic and international project development. Ms. Sullivan is an integral asset to RII. She supervises the Administration, Marketing and Business Development, Human Resources, Accounting and Finance, and Project Coordination departments, having developed comprehensive systems for project management, staff development and contract management. Ms. Sullivan administers all contracts and proposal development, including assessment of liability and risk management, compliance and cost recovery. Ms. Sullivan has brought a new level of project controls to RII marketing materials and deliverables including project planning, estimating, proposal writing and RFP development/interpretation, project cost tracking and budgeting, communication and quality control. This has broadened RII’s capacity to take on larger and more complex projects, including International project development and management. Current focus in this area has been on new rail developments in West Africa (above photo on location in Cotonou, Benin) and South America.

Inside this Issue:

Client Spotlight -

TranSystems

Controversial Switchpoint

Service Highlight -

Construction Management

DOT Junction - Florida DOT

I Rails— Train Yard

Hidden Numbers

Who’s Who in the Industry -

Anastacia Sullivan

Industry Events & Railroad

Statistics

Last issue’s Topic: Who should pay for Railroad Safety and Security? Traditionally, the carriers themselves were

required to maintain safe work environments and protect public safety as part of doing business. However, with so much new attention on improving safety and security with railroads (haz-mat rerouting, security plans, new technologies, etc.), who should pay for all of these new and often expensive requirements? Carriers, Public funds, Riders and Shippers?

Comment 1: It needs to be a shared responsibility. All interested parties need to participate or help pay for all these new requirements! A portion should be passed on to users, a portion could be subsidized by public funds, and a portion should be shouldered by the railroads’ as they receive benefits as well.

Comment 2: Shippers should pay - Their commodities are causing the need for rerouting and security risk. The commodities that are being shipped are causing the issues, not the railroads that are handling the commodities. There should be a user fee to the end users for the commodities that are being utilized and manufactured.

Comment 3: There should be some type of compromise; the railroads are responsible for keeping their equipment and tracks up to par with regulations to accommodate whatever commodities may be brought on the line, but if public agencies are going to put extraneous regulations on what can go through their cities and what safety and security measures should be put into place, they should help pay for it.

Comment 4: Local states and communities cannot dictate railroad operations. It most certainly interferes with interstate commerce when they try, and that is the reason they are federally regulated. If a community decides it wants something special, it will have to pay for the change.

Comment 5: Many of these communities were built successfully only by having the direct rail access. They cannot hope for the railroads to just move since they built their city up around it—the burden, if chosen to move forward, will have to be the local authorities.

(Comments are posted on behalf of respondents, and do not represent the position or opinions of RII or its officers, employees or associates. Comments are edited for appropriateness and selected

by the editor. Not all comments can be posted in the print issue.)

This Month’s Topic:

Send Responses to hah@railroadindustries.com

New FRA requirements for rail operating personnel These rules now require every railroad to establish and test new

Hearing Conservation Training, plans and horn tests, and almost

double the hours required for new engineer and conductor training.

What do you think of these new Regulations?

November 2010 Events

Nov. 2nd- 4th - Southeast BIOMASS Conference, Atlanta, GA

Nov. 7th- 9th - American Short Line and Regional Railroad Association (ASLRRA) Southern Region Meeting, Buckhead, GA

Nov. 13th- 16th – TransComp 2010 National Industrial Transportation League, Ft Lauderdale, FL

Nov. 14th – 16th – High Speed Rail 2010, New York, NY

Upcoming Events Dec. 6th – 8th – Tunnels USA, Boston, MA

Dec. 9th – 10th – Supply Chain Risk, Resilience and Security Summit, Los Angeles, CA

Dec. 9th – 10th – Railway Bridge Design, Madison, WI

January 2011

Jan. 5th – 8th – National Railroad Construction and Maintenance Association (NRC) Fort Lauderdale, FL

Jan. 11th – 13th – Midwest Association of Rail Shippers Meeting, Oakbrook, IL

The Intermodal Association of North America (IANA), the National Industrial Transportation League (NITL) and the Transportation Intermediaries Association (TIA) held its annual joint Intermodal Expo and TransComp Exhibition in Fort Lauderdale, FL on November 14th through the 16th. This trade show is one of the largest in the industry and brings thousands of industry professionals together to touch base, find

options for growth and promote their business.

TranSystems and Railroad Industries Incorporated attended this joint conference as co-exhibitors with a focus on pooling our resources to team on projects to provide a more complete client experience. Congratulations to the TranSystems and RII teams for working together at this high profile trade show.

Attending for RII this year were Gary V. Hunter, Anastacia Sullivan and Todd A. Howell. The overall buzz seemed to be that things are slowly getting better. People are back on solid ground and just now able to start planning for slow growth again. The overall condition is stable but cautious. Based on what RII learned, we will look forward to helping more firms with projects like M&A, safety audits and training on new regulations.

Diana Provost of RII attended the market and procurement business

networking event sponsored by the Nevada Commission on Economic Development at the Silver Legacy in Reno in November. This forum

presented an opportunity to meet with 31 federal, state, local government

and large businesses looking for products and services from DBE and SBA

firms. Firms ranging from local governments to nationwide corporations were readily available with new project opportunities.

TranSystems is a multi-disciplinary engineering

firm established over 28 years ago, now with over 1,000 employees and 38 offices nationwide. TranSystems has successfully broadened its offerings beyond the A&E arena through certain acquisitions

and strategic partnerships with other consulting firms. RII is currently working with TranSystems on just such a partnership, attempting to bring the strengths of both firms together for mutually beneficial projects. Beginning with the joint booth at NITL this year, we hope to market a one-stop shop from the planning,

through design, implementation, operation and logistics for any new rail infrastructure projects or system improvements.

RII has a strong and proactive outreach program to prime contractors, including engineering firms, construc-tion firms and larger consulting firms for transportation, project management and economic development.

This partnership is an aggressive step in building strong teaming relationships and maximizing all of the ef-forts that go into maintaining our DBE status and certifications. We look forward to reporting many new opportunities that have

stemmed from this innovative partnership with TranSystems.

Florida’s freight rail network is comprised of two Class I’s, CSX Transportation and Norfolk Southern, and a Class II, the Florida East Coast Railway (FEC) as well as several short line railroads. The state holds 13 freight ports connecting both Atlantic and Gulf Coast freight traffic to the rest of the country and the world. Florida DOT is currently updating a comprehensive State Rail Plan. In 2009, a report was completed on Policy elements of the plan. Currently, a related plan is being developed to encompass the Investment elements of the overall plan. The plans will address the growing populations in the state, environmental, economic and safety benefits of rail and how to plan rail development to ensure these standards remain in place. These include plans for both freight and passenger rail, including a high speed rail network in southern Florida that recently received $800 million in federal funding.

RII has particularly been following the impact of the changes in the rail operations and systems in the state, and their impact on the short line railroads there. In 2008, the regional Class II railroad, FEC, was acquired by the major equity firm, Fortress Group. This followed Fortress’ acquisition of RailAmerica the previous year. RII performed the due diligence and evaluation for Fortress on the FEC owned equipment. This work included an inspection and market valuation of all equipment owned, including locomotives, rolling stock, intermodal and maintenance of way equipment. Fair market value for each piece of equipment was determined by surveying equipment leasing and sales companies, locomotive sale sources and repair shops, and manufacturers and resellers of rail equipment and power. The inspection inventory of equipment and market valuations were utilized for the overall due diligence and evaluation of the FEC as an asset and ongoing business entity for Fortress and its investors.

There has been much speculation on the acquisitions, making the rail assets owned by Fortress one of the largest rail networks in North America, operating in common over 8,151 miles of track with annual revenues of about $695 million. It is an interesting role to observe the rail operations as a Class I level entity while operating Class II and Class III level railroad operations. The acquisitions follow a larger trend in rail investment in our country, illustrated by last year’s acquisition of controlling interest of BNSF Railway by Warren Buffet. Investments like this, coupled with the infrastructure bills passed last month in congress, bode well for the future of freight rail across the country.

F OR SALE—Six D77 Traction motors for

sale! All are E-OK, 62/15 gear ratio. These

can be delivered to your shop for $5,250

each, with a discount if purchasing all 6 mo-

tors. Also have one SW1200 locomotive in running condition for sale. Please contact RII if

interested in any of these items and we will connect

you with the seller!

Rail Construction Management

RII has experience assisting in all phases of projects from the initial planning phases throughout the construction stages. We are accustomed to working with the FRA, FTA and other regulatory agencies and are familiar with the rules and regulations associated with construction of new track, rehabilitation and extensions. We can work with project owners and contactors to negotiate with the railroads for permits, access and agreements to keep the project moving forward and on schedule. We have provided track and equipment inspections as track is being constructed to ensure compliance with all regulations as well as coordination and inspection of rail construction materials. RII can also provide Safety Training and coordination for construction work near rail Right of Way.

Numbers 1-20 are

hidden within this

image. See if you are

able to find all 20.

See if you know every

piece of equipment!