Watco rail gets $600M in new private equity
Railroad names marketing vice president
Railroad members! If you want to be featured in this section, please email us the link. You can also tag us (@ASLRRA) in your social media posts. Interested in seeing your railroad showcased in your local newspaper? Contact Amy Krouse for assistance.
Today Peter Gilbertson, president and CEO of Anacostia Rail Holdings Company, testified on behalf of ASLRRA at a hearing held by the U.S. Senate Committee on Commerce, Science, and Transportation’s Subcommittee on Surface Transportation, Freight, Pipelines, and Safety.
The hearing, titled “On the Right Track: Modernizing America’s Rail Network,” focused on the current state of the U.S. freight and passenger rail network and discussed the potential for meaningful regulatory and policy reforms in the context of the upcoming surface transportation reauthorization.
Testifying alongside Gilbertson were Association of American Railroads (AAR) President and CEO Ian Jefferies, Brightline Holdings Senior Advisor Husein Cumber and National League of Cities CEO and Executive Director Clarence Anthony.
In his written testimony, Gilbertson focused on three points: the need for robust and predictable federal infrastructure funding; regulatory reform that is driven by data and risk; and support for innovation and new technologies. He highlighted the improvements made possible by funding from grant programs like Consolidated Rail Infrastructure and Safety Improvements (CRISI) and recommended several ways Congress could bolster CRISI’s impact. Gilbertson also noted the importance of funding for grade crossing safety and the Short Line Safety Institute (SLSI).
Gilbertson shared ASLRRA’s support for implementation of the proposed Risk Reduction Program, which would provide the foundation for regulatory reform and innovation. He also discussed ways Congress could make it easier for railroads to test and deploy new technology and detailed examples of such industry innovation. This included descriptions of telemetry platform RailPulse, employee training through the online Learning Management System (LMS) and the use of digital on-board systems to help short line railroads update older locomotives with improved tracking, safety and data-gathering devices.
Anacostia Rail Holdings President and CEO Peter Gilbertson (second from left) testified today on behalf of ASLRRA during a Senate hearing titled "On the Right Track: Modernizing America’s Rail Network."
ASLRRA submitted comments in response to the U.S. Department of Transportation’s notice of proposed rulemaking (NPRM) to reinstate and expound upon procedural reforms for USDOT’s rulemakings, guidance documents, and enforcement actions rescinded by a USDOT final rule published on April 2, 2021.
ASLRRA applauds USDOT’s efforts to address procedural reforms. In its comments, the Association proposes that USDOT include in its final rule a requirement for the department to incorporate a mechanism for the codification of longstanding waivers or regulatory exemptions; include civil penalty schedules in the list of agency guidance documents that require public notice and comment; and ensure that the Regulatory Flexibility Act provisions are strictly followed in any rulemaking.
ASLRRA and the Association of American Railroads (AAR) submitted joint comments in response to the Federal Communications Commission’s (FCC) notice of proposed rulemaking (NPRM) regarding a process to transition the entire ten megahertz in the 900 MHz band for broadband use.
The comments note that the 900 MHz band continues to play a vital role in railroad operations, supporting crucial safety-of-life communications. ASLRRA and AAR write that “authorizing a 5/5 megahertz broadband segment—before the end of the five-year 3/3 megahertz transition period, and without any proposed alternative spectrum to support displaced operations—would jeopardize the reliability of incumbent operations and result in harmful interference.”
The associations go on to say that if the transition is authorized, the FCC must, at the very least, maintain existing technical safeguards, including the 70-mile interference protection zone. In addition, broadband proponents must provide appropriate assurances to protect critical railroad safety communications systems, and any agreement to relocate railroad operations must include at least 10 channels of 25 kHz narrowband spectrum configured as a single nationwide ribbon license; full cost recovery; and reasonable transition timelines.
The Senate Finance Committee has released its legislative text on tax to be included in the big reconciliation bill, also known as the One Big Beautiful Bill.
Click each link to view the official summary, a section-by-section summary and the full legislative text.
The House passed their version of the legislation on May 22. Over the last few weeks, other Senate Committees, such as homeland security, banking, agriculture, energy and natural resources and commerce have released their portions of the legislative text, saving the biggest and most complicated tax piece for last.
Similar to the House version, there are some positive provisions for businesses broadly that will benefit many short lines, but the modernization of the short line infrastructure 45G credit was not included. This was not a shocking development, but is still a disappointment and a challenge needing to be overcome. More comments on next steps are described below.
As the Senate developed this package, they considered what the House had produced and then prioritized Tax Cuts and Jobs Act (TCJA) extensions and new Trump Administration priorities, leaving little room for enhancements such as a 45G modernization. Within the bill, three major business provisions of interest to many short lines are addressed:
The corporate rate of 21 percent is not changed in the Senate’s bill, which was originally a concern for some. Also omitted was a corporate SALT limitation, another potential concern averted.
New Trump priorities addressed in the bill include a deduction on taxes for tips, a deduction for overtime earnings, a new deduction for seniors meant to address the “no tax on Social Security” promise, a deduction for auto loan interest payments, and a new tax advantaged account for all newborns. The Senate bill largely keeps those provisions but provides stricter limits to lower the cost.
There are many controversial provisions remaining to be worked through and many spending cuts and revenue increases to pay for the tax cuts which will all continue to garner significant opposition, including Medicaid cuts, energy tax credit cuts, and the SALT issue.
On this reconciliation bill, the next step is to get the bill passed in the Senate. It is not clear that 50 votes are there for the bill yet, but that is the plan. If and when the bill passes the Senate, the House will have to decide whether to accept the Senate bill as is, go to a formal “conference committee” with the Senate or send a modified version back to the Senate in a “ping pong” process. The stated July 4 goal for passage is still possible, but if not then a second deadline is likely the August recess due to the impending reaching of the debt limit, as this bill will also include a $4 trillion to $5 trillion increase in that limit.
For 45G modernization more generally, the stand-alone bill in the House, H.R. 516, has 82 cosponsors, which makes it the eighth most popular tax bill introduced by a Republican in this Congress. And the Senate bill, S.1532, has 10 cosponsors. As a short line industry, we will need to keep pushing and searching for a way to get this modernization included in legislation that can reach the President’s desk.
The good news of course is that the existing 45G tax credit is still active, so this omission from the reconciliation bill is just a delay in getting the update that we all believe is needed, but not a threat to the current credit. As far as the next opportunity, we know it’s a question of when, not if, because we know that there will be more tax bills in the future. There are various options under consideration, including future partisan reconciliation bills or bipartisan tax packages.
Regardless of the tax legislative vehicle, ASLRRA knows that it and its members will need to continue telling the short line story, continue signing up large numbers of cosponsors and continue to develop additional true champions of our credit who are willing to make it a top priority. The good news is, ASLRRA is well positioned to do just that, with short line members, Legislative Policy Committee leadership, Association staff, expert consultants and third part groups in place to support this effort.
Know a company that would benefit from joining and participating in ASLRRA? Please contact Membership Lead Danialle Lovik via email or on (202) 585-3443.
Railtowns.org is a nonprofit that helps short line railroads succeed by improving how communities understand and engage with rail. For railroads facing community challenges, it offers a custom-built solution to educate local leaders, identify infrastructure gaps, and connect them to rail-aligned fixes and funding. Its tiered engagement model meets towns and railroads where they are - helping shift misalignment into momentum. Drawing on experience securing over $2 billion in public infrastructure funding, Railtowns.org helps communities maximize the value of their rail assets in ways that benefit both industry and residents. CEO Tate Linden can be reached at connect@railtowns.org or (571) 283-3837.
U.S. Lubricants, based in Appleton, Wisconsin, with additional locations nationwide, specializes in fluid solutions designed to enhance equipment performance and reliability. It provides premium lubricants, fluids, and customized services tailored to the needs of the rail industry and beyond. Marketing Manager Taylor Vande Vyver is our primary contact and can be reached by email at marketing@uslube.com. Many thanks to our friends at Watco for suggesting that they rejoin our organization.
ASLRRA is looking forward to welcoming attendees at this year’s Eastern and Southern Region Meeting, Finance and Administration Seminar and General Counsel Symposium, which will take place Sept. 9 to 11 in Charlotte, North Carolina.
This year, all those who register for the General Counsel Symposium will automatically be registered to receive continuing legal education (CLE) credits. There is also no additional charge for multi-state credit. Credit hours are estimated to be approximately 7.0 hours for 60-minute states, and 8.4 hours for 50-minute states.
Education sessions for the General Counsel Symposium will cover a broad range of topics including regulatory reform, critical incident response, Surface Transportation Board updates and more.
For the Finance and Administration Seminar, sessions will discuss competitive compensation packages, attracting top talent, apprenticeship programs and veterans recruitment and more.
Both the Finance and Administration Seminar and the General Counsel Symposium are co-located with the Eastern Region Meeting, enabling attendees at all events to network with fellow railroad and supplier members during meals and breaks.
Individuals can book lodging for the events in the Association’s hotel room blocks. Follow this link to go directly to the event hotel page. The deadline for booking a room in the block is Aug. 22.
ASLRRA is also selling sponsorships for these events. Click here to view the sponsorship prospectus or contact the Association’s meetings team at meetings@aslrra.org with questions.
What are the latest ways Association members can engage with ASLRRA? What is ASLRRA’s most recent call-to-action? Below are some of the different types of information the Association would love to gather.
ASLRRA’s Supplier Committee has elected a new group of leaders, including Shea McLaughlin, Mark Bremmer and Sam Beck.
McLaughlin, chief commercial officer for CDL Electric, is the new committee chair. He succeeds Erika Bruhnke, chief sales and growth officer for RailPros, who was recently elected to the ASLRRA Board of Directors. Bremmer, senior marketing director for PS Technology, is the new vice chair. He replaces McLaughlin in that role.
Beck, director of rail sales for L.B. Foster, is the new secretary. He succeeds Debbie Taylor, principal of Taylor Transportation Search Group LLC, who resigned her secretary post but remains engaged in the group.
The Supplier Committee is one of the most active of ASLRRA’s 13 committees. Committees are a great way to raise a company’s visibility, network with colleagues and contribute to advancements for the good of the entire industry. Committees and their ASLRRA staff liaison are listed below. Contact the staff liaison with questions about the committee. Please note that while some committees are open to all ASLRRA members, others have specific membership guidelines.
In August, ASLRRA will hold its popular FRA Railroad Accidents/Incidents (Part 225) Training Seminar featuring speakers from the Federal Railroad Administration (FRA) and ASLRRA Vice President, Safety and Compliance JR Gelnar.
This seminar, which takes place Aug. 26 to 27 in Freeport, Maine, will provide attendees with an in-depth review of the section of the Code of Federal Regulations dealing with accidents and incidents. Attendees will leave with an understanding of the requirements related to accident and incident reporting, along with knowledge of the tools, resources, templates and more available to facilitate compliance. The seminar also features robust classroom discussions of rule requirements and valuable networking opportunities.
Space in the seminar is limited, so interested individuals are encouraged to register soon. ASLRRA is also offering training seminars on CFR Parts 215, 243 and 217 in June and July, as well as a professional trainer development course in October. View all upcoming seminars here.
Employees of small railroads are eligible for scholarships to help them attend important industry training. Click here to learn more about ASLRRA’s scholarship opportunities.
Developed by ASLRRA in partnership with the Iowa Northern Railway Company (IANR), the Short Line Training Center provides essential regulatory, compliance, and safety training programs and materials to short line railroads throughout the U.S. The project combines an online Learning Management System (LMS) with in-person classroom seminars and locomotive simulator training delivered on-site to railroad employees.
With the LMS, short line railroads may access custom-built railroad industry training programs, interactive coursework and assessment materials, with new technical training courses expected to be released soon. Watch a Virtual Reality training program demo and view a complete list of planned courses on ASLRRA’s website.
Railroads can also schedule in-person training with the Mobile Technical Training Center, equipped with two Federal Railroad Administration Type II locomotive simulators and classroom space for up to six students. The mobile training center delivers personalized, instructor-led seminars and locomotive simulator training to railroad employees on site and can address a range of requirements from basic train handling to positive train control and distributed power operations.
Learn more about industry training and resources available from the Short Line Training Center or contact ASLRRA’s Senior Vice President, Education and Business Services, Sabrina Waiss for more information and pricing.
The Coalition Heath Plan is specifically designed for ASLRRA members looking for a solution to reduce their medical premiums and simplify the healthcare experience for their employees. As the fifth largest broker in the world with over 500 locations in North America, HUB International is well equipped to provide ASLRRA members with a vast network of benefits experts and best-in-class resources no matter where the member company is located in the US.
Partnering with HUB puts ASLRRA members at the center of a vast network of experts who provide risk services, claims management, and compliance support. Visit ASLRRA’s Member Discount Program page and select Employee Health Insurance to start saving today.
Fred Oelsner is in Montreal, Quebec this week for a meeting of the Association of American Railroads’ (AAR) Rail Information Security Committee (RISC). The group convenes regularly to discuss effective practices and threat, vulnerability and incident response information.
Popular webinars covering legal and communications topics can be found online in ASLRRA’s On-Demand Webinar Library. Look for the following titles:
Visit ASLRRA’s webinar homepage and log in to view all the on-demand offerings in the Association’s webinar library.
The Short Line Safety Institute (SLSI) has issued a Request for Proposal (RFP) for procurement of a highway flatbed trailer that will comprise part of SLSI’s Safety Train Systems. Responses to the RFP are due Aug. 1.
The trailer detailed in the RFP would be a 20-foot heavy capacity utility trailer, ideally with additional railcar components such as protective housings, pressure component and general service component displays and more. The RFP includes a diagram and photographs of a prospective trailer layout.
SLSI’s Safety Train Systems project will comprise a Safety Train that includes a classroom railcar, tank car and a flatcar with tank car valve and fitting configurations. The Safety Train will be used with an SLSI-developed educational curriculum in training for railroad employees and first responders. Participants will be able to see the size and scale of and interact directly with railroad equipment and the valves, fittings, and other railcar components they would encounter on the job or in an emergency situation.
Click here to view the RFP, or click here to ask a question.
Views & News is published by American Short Line and Regional Railroad Association.
Please contact Mariel Takamura, associate editor, with questions or comments.
