magazine - Canadian Pacific
Transcription
magazine - Canadian Pacific
HOME PAGE 8 PAGE 4 PAGE 2 Investing in ourselves Fanatical over Frac CP Has Heart CP is reinvesting in its business to make it faster, more reliable and safer. Ever seen CP roll up to Wisconsin’s frac sand mines? We’ve decided to show you. It really hits home for an ES mechanic whose three-year-old nearly died before his eyes. MAGAZ I N E VOLUME 5 — 2014 HOME 8 Steel in the ground From bolstering the North Line to adding CTC, from adding more efficient (and comfortable) engines to buying back stock, we look at the details of where and how CP is investing in itself. 1 LETTER FROM THE EDITOR GETTING MORE OUT, PUTTING MORE IN 15 5 FOUNDATIONS REACHING FOR THE TOP, STARTING WITH THE FOUNDATIONS 18 UPDATING ASSETS BUILDING ON TRADITION, PLANNING FOR THE FUTURE 20SAFETY TRACKING DOWN DEFECTS 24 The linchpin yard Vaughan Intermodal Yard is one of the linchpins of CP’s future. 2210 QUESTIONS GEORGE KISHI 30 SAFETY READY 32 FROM THE ArcHIVES SIGNAL TESTING 4 Fanatical over Frac We take you on a rare tour of our Wisconsin-based, co-located frac shipping compound. 2 CP Has Heart Even if CP’s new community investment program saves the life of one child, it’s a huge success. Just ask Engineering Services mechanic Thomas McCallum. ON THE COVER Photographer Kris Grunert captures a CP engineering services employee stepping over the rail as he gets into position to work on the track in rural Saskatchewan. HOME LETTER FROM THE EDITOR Replacing ties during a misty, midsummer Saskatchewan dawn. Getting more out Putting more in Steven Noble Editor-in-chief Every three months it seems like CP is announcing a new record of some sort: operating ratio, share price, revenue tonne miles, Federal Railroad Administration reportable accidents per million train miles, etc. Some of you might feel like this doesn’t have much to do with you. But it impacts us all in a simple, yet significant way. You’ll see in this issue’s feature article, that CP is investing more dollars in the company than it has in years—and spending it more wisely than ever before. That cash is dedicated to replacing old, worn ballast, upgrading rail and allowing us to extend the engineering work season so they can get more done each year. Yes, trains will run faster. There will be more capacity. And in the coming years, with this reinvestment in the network, CP’s growth will occur more safely and it will be sustainable. If you’re interested in learning more about how this is coming together on the ground, join us as we visit the locomotive shops and talk about CP’s remanufactured, more efficient locomotives. We also take an in-depth look at CP’s North Line, where quite a bit of smart infrastructure improvement is underway. And, we show you where the ongoing addition of Centralized Traffic Control is helping us modernize how we communicate with train and engineering crews. The cumulative result of these efforts is that we provide customers with more reliable service, and the company attracts more business, which ultimately generates more jobs and more money. It’s pretty hard to argue with that. CANADIAN PACIFIC MAGAZINE 1 HOME Cheyanne Mattern wouldn’t be alive right now if it hadn’t been for the support of research, education and training in regard to heart defects and related issues. HEART of LIFE There isn’t anything worse than seeing your three-year-old princess drop to the cement, turn blue and lose her pulse. Thomas McCallum, an Edmonton-based engineering services mechanic, remembers it like it was yesterday. The family was heading out on a road trip for the 2011 August long weekend when his healthy little girl dropped to the ground. “We felt helpless,” says Thomas. “It only took Emergency Medical Services five minutes to get to us, but it felt like forever. When you’re watching your daughter lie there lifeless, every second is an eternity.” One in every 100 babies is born in Canada every year with a congenital heart defect. That’s one of the reasons why CP focused on heart health this past summer when it launched CP Has Heart, a new community investment program. 2 CANADIAN PACIFIC MAGAZINE HOME CP has heart Oxygen shortage Thomas’ daughter Cheyanne suffered from pulmonary hypertension, a condition that normally affects older people who have a history of smoking. The arteries carrying blood away from the heart constrict, reducing the available oxygen. “And as it gets worse, it compounds. So by the time she passed out, she had zero oxygen in her blood and her heart actually shut off.” The family was rushed from one Calgary-based hospital to the next, before determining that Cheyanne must be airlifted to Edmonton because nobody in Calgary could treat her. She was finally diagnosed the next morning at the University of Alberta’s Stollery Children’s Hospital. The fight wasn’t over. Specialists gave Cheyanne a heart catheterization. They inserted a tube through an artery in the groin up into the heart to run tests, and more acutely monitor the heart. Cheyanne suffered repeated violent cardiac arrests. She wound up living in an ECMO machine for nearly two months, which extracts and oxygenates blood cells before pumping blood back into the body. Eventually she needed a heart-lung transplant. BUBBLES, PUZZLES AND SOCCER Today, seven-year-old Cheyanne enjoys playing soccer, making bubbles and doing puzzles, and has recently fallen in love with reading. Her health is still a constant battle though. She takes medication twice daily and fights a type of leukemia every winter, which is a further complication of her condition. She is in and out of the hospital monthly. When Thomas found out that CP was launching a new program to support heart health, he was shocked. “It means a lot. You always hear about how other diseases get support, but for some reason heart health is undersupported. However, it’s as important as it gets,” says Thomas. CP has since donated $2,500 in Cheyanne’s name to the third Annual Hope for Little Hearts Walk/Run, October 18, 2014 in Edmonton. For more details about CP Has Heart, visit www.cpr.ca or RailCity. In June, CP launched CP Has Heart, a new community investment program supporting cardiac care facilities, research and initiatives to improve heart health across North America. The decision was not made lightly. Heart disease will be the leading cause of death in the world by 2020. CP’s campaign, however, is not just about addressing grave facts, but about celebrating heart health and the many methods available to ensuring a happy ticker. “All men, women and children can benefit from understanding the factors that put our hearts at risk, what we can do to improve our heart health, and how simple it is to save a life if the right tools and training are available,” said CEO Hunter Harrison, at the launch of the campaign. And that’s exactly what we’ve been up to. This summer the new platform was brought to life with exciting initiatives through CP-sponsored events, including the Canadian Pacific Grand Prix at Spruce Meadows equestrian centre, and the LPGA Canadian Pacific Women’s Open golf tournament. CP has already contributed 12 automated external defibrillators valued at approximately $10,000 each to locations Pictured from left: Adalynn Mattern McCallum, Thomas McCallum, and Cheyanne Mattern. where youth learn, play and gather. CP also announced, as a lasting legacy gift to the London community that hosted the Canadian Pacific Women’s Open last month, a $1 million contribution to support paediatric cardiac research and clinical care at Children’s Hospital at London Health Sciences Centre, and Children’s Health Research in London, Ont. Employees should keep their eyes on RailCity and future issues of Canadian Pacific Magazine for further updates about CP Has Heart. CANADIAN PACIFIC MAGAZINE 3 HOME line of business After a half-billion years in the ground, the northern white sand of the Wonewoc formation of western Wisconsin is meeting its destiny. This year, mining companies will release around 50,000 cars of proppants, mostly Wisconsin sand, to CP for shipment to markets across the U.S. and Canada. That’s up from virtually zero a decade ago, and just 20,000 cars four years ago. Gerald Baer, a Portage, Wisconsin-based conductor says the new tracks serving the Wisconsin sand facilities are set up to move a lot of cars, and to do it in a hurry. “You bring a whole unit train of 100 empty sand cars in on one loop, then you cut away from it and they’ve got 100 loaded cars on the other loop ready for you to pick up. You tie onto those, brake test and leave. It doesn’t get any more convenient than that.” Smart Sand’s rail loading facilities include a double track loop and a yard. The company is capable of loading unit trains and individual cars for manifest trains. 4 CANADIAN PACIFIC MAGAZINE A La Crosse, Wisconsin-based local CP crew shoves empty sand cars into Smart Sand’s yard for loading. The facility handles both unit trains and manifest business. Mountains of processed sand grow taller on Smart Sand’s grounds as a plant worker passes. HOME line of business Smart Sand’s dry plant removes water from the sorted sand. From here, sand moves either to stockpile or direct to railcars for shipment. At Smart Sand’s laboratory, samples from each railcar are tested to ensure quality and size. A computer photographs each individual grain of sand from the sample and catalogues their exact dimensions. CANADIAN PACIFIC MAGAZINE 5 HOME Line of Business In this aerial view of Smart Sand’s facility, the wet plant is visible at center-right, the sand stockpiles are at bottom-left, and the yard stretches across the top. Smart Sand’s loop track is to the left (south) of the photo, not visible. A front-end loader deposits sand from Smart Sand’s mine into the conveyor system that begins the process of sorting. The conveyor carries the sand into the wet plant, where it’ll be mixed with water to create a slurry. The slurry will be pumped to the top of the plant, and from there gravity will separate sand and grit. Why frac? Companies that drill for oil and gas have long used proppants (frac sand) as part of the hydraulic fracturing process. They force a mixture of water and sand (pulverized ceramics can also be used) into wells. The water creates fissures in rock and the sand props those fissures open (hence the term proppants), enabling gas or oil to flow to the well. In the past decade, new techniques for drilling oil and natural gas in regions previously inaccessible have caused the demand for high-quality frac sand to skyrocket. CP has been ahead of the trend from Day 1. CP gained access to its first high-grade frac sand mine with our acquisition of the Dakota, Minnesota & Eastern Railroad (DM&E) in 2008. DM&E served Pattison Sand Company in Clayton, Iowa. In the past few years, three new mines have opened on former Soo Line railways in western Wisconsin: Smart Sand at Oakdale, Unimin at Tunnel City, and U.S. Silica in Sparta. CP has exclusive contracts and co-located rail access with each. More sand mines and transload sites are planned for CP rails in the region for the next several years. “It’s really been a collaborative effort,” says CP’s Torrey Swan, a marketing analyst who’s helped develop CP’s sand business. “CP’s network is well positioned to deliver that sand, directly or over interchange.” Canadian Pacific Magazine recently took a trip down into the mines and here’s what we saw: 6 CANADIAN PACIFIC MAGAZINE A Unimin employee oversees railcar loading at the company’s Tunnel City, Wisconsin mine. CP is the exclusive provider of rail service to Unimin, Smart Sand, and U.S. Silica plants in southwestern Wisconsin. HOME Line of Business Conveyors carrying sand hum after sunset at Smart Sand. The facility operates 24/7. Conveyors feed stockpiles where sand will await rail loading. Smart Sand’s mining and sorting operations shut down during winter, but stockpiled sand keeps the plant shipping year-round. CANADIAN PACIFIC MAGAZINE 7 HOME in the CP’s story through our investment plan 8 CANADIAN PACIFIC MAGAZINE HOME Quick: What industry spends the greatest portion of its revenue buying and installing big-ticket items to keep the business running, while expanding into new markets? The answer is, the industry you work in. Broadly, these expensive items constitute what’s known as CP’s “capital spend.” Understand a railroad’s capital spend and you can see into its future. In the pages that follow, we explore where the $1.3 billion we’ve dedicated to the capital plan this year is being spent and why. We’ll also look at what it means for you. Finally, we’ll try to get a line of sight on future capital budgets. What is capital spending? Capital spending refers to money we distribute to update and upgrade property that wears out over time: locomotives, cars, rail, ties, bridges, buildings, etc. What’s not included in the capital spend? Resources we expend in our day-to-day operations, such as fuel, staff time, brake shoes and electricity. So, how does our capital spending figure into our overall budget? Well, in 2013, our customers paid us $6.133 billion to move their freight. We spent $1.265 billion, just over 20 per cent of that on capital items. Deryk Gillespie, CP’s managing director investment analysis says capital budget planning begins with the most costly items and filters down to smaller projects across the network. “The biggest piece,” he says, “is the money spent replacing worn-out track and structures. Ties wear out, ballast wears out, things need to be replaced and renewed.” In 2014, this portion of the capital budget will go towards buying and installing 530 miles of replacement rail, 1 million ties, 400,000 tons of crushed-rock ballast, 200 turnouts, and $80 million worth of materials for bridges. So basic upkeep consumes more than half the capital plan each year. Although this portion of the capital budget is critical, it tells us little about CP’s priorities. It’s the rest of the capital budget that gives us a glimpse into the crystal ball. CANADIAN PACIFIC MAGAZINE 9 HOME EDMONTON WETASKIWIN LLOYDMINSTER NOR CALGARY SASKATOON TH L INE REGINA PORTAGE LA PRAIRIE MOOSE JAW VANCOUVER ST WINNIPEG .P KINGSGATE AU TO L COUTTS M OO SE THUNDER BAY JA W DULUTH CO RR ID OR MINNEAPOLIS/ST. PAUL TRACY MILWAUKEE CHICAGO KANSAS CITY Growth in the U.S. CP’s corridor between Moose Jaw and Chicago has long been a key route for moving traffic between western Canada and U.S. markets. That traffic continues to increase. Meanwhile, customers are adding and expanding terminals in the North Dakota Bakken oilfield to ship frac sand in and oil out. Toss in North Dakota’s crops of wheat and other grains, and the infrastructure that’s served us well in the past is rapidly approaching its limits. This is most apparent from St. Paul, Minn. westward to the junction with our transcontinental main line at Moose Jaw. “There’s a capacity issue along that corridor,” says Justin Meyer, CP’s chief engineer for the Southern Region. “We are near or at capacity, and if we are going to continue to see growth in oil or sand, investment is needed to support that potential business.” This year, three sidings between St. Paul and the Canadian border will be lengthened to open up capacity on that stretch, and work has begun to lengthen three receiving tracks at 10 CANADIAN PACIFIC MAGAZINE St. Paul Yard. Deryk notes that while lengthened sidings are important, “There’s no point in upgrading all of your sidings to support longer trains if you’ve got no launch pad for them.” Perhaps more critically, we’re extending a key train dispatching and signalling system that promises to dramatically improve safety and train velocity in the corridor (see sidebar, “What is CTC?”). Until early this year, only 129 of the 722 miles between St. Paul and Moose Jaw operated under Centralized Traffic Control (CTC). Last year, we installed 81 miles of CTC over two segments of the route near our terminals at Harvey and Enderlin, N.D. In these locations, CTC went live in early 2014. This year, signal crews are adding 121 miles of CTC in eastern North Dakota and western Minnesota, plus five miles in the St. Paul area. With that, nearly half of this previously “dark territory” route will be operating under CTC, up from 18 per cent a few years ago. “The plan,” says Justin, “is to continue closing the gap to Moose Jaw over the next several years.” WHAT is Centralized Traffic Control? CTC is a system in which a rail traffic controller (RTC), also known as a train dispatcher in the U.S., gives routing instructions to train crews using lineside signals and remotely controlled power switches. With the click of a mouse, the RTC can direct train crews to proceed across main lines, or divert trains onto sidings, yard tracks or branch lines. In places where CTC is not in place, the RTC must issue instructions to crews by radio and crews must stop their trains to line switches by hand. CTC uses track circuits to detect whether a stretch of track is occupied, and displays red signals to trains approaching occupied track blocks. When a rail breaks or a main line switch is left lined for a side track, the track circuit detects the issue and displays red signals; a real safety benefit. Currently, most of CP’s route across Canada is CTC, as is the U.S. route between the Chicago area and Glenwood, Minn. However, train crews on most key secondary routes still rely on radio-issued instructions. HOME “The North Line holds a lot of potential for CP,” says CP President Keith Creel. “For many of those shipments, the North Line offers the most direct path to market, and we recognize that we need to find ways to take advantage of that.” The North rises Prior to 2011, the CP route between Portage la Prairie, Man. and Wetaskiwin, Alta. was little more than a 750-mile-long branch line. Potash and grain traffic originated on the line, but due to its aging infrastructure, this traffic was routed to the nearest junction point and sent towards the main line. Deryk notes that our long-running neglect of the North Line was the result of both the business it handled and CP’s inability to generate cash. “The North Line holds a lot of potential for CP,” says CP President and Chief Operating Officer Keith Creel. “For many of those shipments, the North Line offers the most direct path to market, and we recognize that we need to find ways to take advantage of that.” Rehabilitation work began three years ago, but the pace proved frustratingly slow. Come 2013, CP’s board and senior leadership agreed that it was time to speed things up. “Last year, we experienced some unfortunate derailments in parts of the territory where, quite frankly, the infrastructure was not up to our standards,” Keith told investors this summer. In 2013, to help deal with this issue, “The board supported an advancement of capital of about $100 million for our North Line, where a lot of this grain, potash and crude comes from.” Matt Foot, CP’s general manager of capital planning and projects, elaborated on the North Line focus. “The first aspect is alternatives. If we encounter significant outages on the coal or East-West Line, we can safely and quickly run important traffic up to Wetaskiwin and down the North Line. Second, the improvements enable us to balance traffic flows. The third aspect is about having a reliable, robust infrastructure that ensures the safe transport of customers’ goods and our employees’ safety.” This year’s North Line continuouswelded rail project will leave only one short segment of jointed rail, and it’s set for replacement in 2015. Meanwhile, we’ve started a five-year ballast program on the line that will eventually enable speeds to rise to 50 mph across much of the corridor. Additionally, the line will receive two new sidings and an existing one will be lengthened. This will have a positive impact on our growing crude business. New oil-by-rail terminals are coming online in Kerrobert, Sask., Hardisty, Alta. and in the Edmonton area, and trains originating there are beginning to traverse the robust new infrastructure on the North Line. “The employees executing these projects did a tremendous amount of work to bring this plan to fruition, including winter work on the Prairies,” Matt says. “It’s a great accomplishment.” CANADIAN PACIFIC MAGAZINE 11 HOME Small diesels, big impact You may have noticed that since 2012, the flow of new line-haul diesels into our network, such as General Electric® ES44ACs, has braked to a halt. That’s because through careful planning we’ve been able to operate growing volumes with fewer total line-haul locomotives. That share of the capital budget is instead going towards the purchase of Electro-Motive® Diesel (Caterpillar®) GP20 remanufactured locomotives. This year, CP is bringing in 60 of these 2200-series four-axle locomotives, primarily for yard and local freight services. “This is the first major reinvestment in yard locomotives in decades,” Deryk notes. “The industry as a whole, hasn’t built new four-axle locomotives in a long, long, long time.” Technically, the 2200s are remanufactured locomotives. Their trucks, traction motors, air compressors, main alternators and electrical components come from retired CP units. However, their diesel engines, electric generators, operator’s cabs, radiators and long hoods are entirely new. In terms of mechanical reliability and pulling power, these are new locomotives. Tom Lambrecht, CP’s vicepresident mechanical, says the 60 GP20s slated for delivery this year will expand CP’s total fleet to 130. He notes yard-service locomotives are critical to serving our customers, as they operate local, branch line and yard jobs where line-haul locomotives are too big. For more details on the new GP20s, see page 18. Taking the next step The common thread among these projects is this: The money we’re earning from day-to-day operations today supports real investment in our infrastructure tomorrow. We’re making up for lost time, spending our money in a number of areas where we have long wanted to spend, but couldn’t afford to. “Our improved performance gives us some options,” Deryk says. “How we are choosing to exercise those options is accelerating our reinvestment into the business and recommitting our focus to parts of the network that were patiently waiting for investment.” 12 CANADIAN PACIFIC MAGAZINE The result is a virtuous circle. It begins with increasingly efficient train operations, such as more direct routings via the North Line, quicker meets on account of new CTC installations or two GP20s replacing three older diesels. Next comes the cash savings: lower fuel consumption, and fewer locomotives and cars needed to move the same amount of freight. Finally, for decades into the future, a portion of the money we save will be reinvested in capital projects that will continue to make our railroad operate more efficiently. HOME “This is the first major reinvestment in yard locomotives in decades. The industry as a whole, hasn’t built new four-axle locomotives in a long, long, long time.” CANADIAN PACIFIC MAGAZINE 13 HOME Looking forward Sharing the wealth We haven’t committed to any capital funds past 2014, but continued CTC extensions across North Dakota and up to Moose Jaw appear likely. Beyond that, Deryk says some secondary routes elsewhere on the network would benefit from CTC, and that’s on his team’s radar as well. After this year’s delivery of GP20s, we’re looking at the future of our fleet of light-duty six-axle diesels, like the SD40-2 model. So far, we’ve taken delivery of 20 remanufactured SD40-2s that underwent a rebuild similar to that of the GP20 program, and are now known as SD30Cs. “They’ve set a new benchmark for reliability,” Tom says. As a result, he says we’ll be taking a close look at expanding that fleet over the next three to four years. Tom notes that since we’ve been able to use our line-haul locomotive fleet more efficiently, we likely won’t need to procure additional units for several years. There’s an item that doesn’t technically fall under the heading of capital spending, but is perhaps a cousin to it. With our recently improved financial performance, we’ve begun buying back CP stock. By reducing the supply of outstanding shares, those shares that remain become more valuable. It’s hard to ignore CP’s rising share value during the past few years. Maintaining that trend going will be a key priority in the years ahead. Deryk says the network investments will continue to be critical to CP’s plans, but rewarding shareholders is the next logical step. “Generating this kind of financial performance allows you to reinvest in the plan, and allows you to reward your shareholders,” he says. “Anybody who’s a shareholder—and a lot of employees are shareholders—should be very happy with that.” 14 CANADIAN PACIFIC MAGAZINE HOME 5 foundations PROVIDE SERVICE Suresh Kumar Harish Conductor Winnipeg Yard Reaching for the top, starting with the Foundations A building is only as good as its foundation. The same philosophy applies to railroads. Each of the five Canadian Pacific Foundations is a guidepost, designed to support you by providing a standard and a focus you can base your career on as we continue to build a positive and productive culture. Canadian Pacific Magazine asked employees from within our communities to tell us how one of the five Foundations impacts their day-to-day job performance. Stay tuned to RailCity this fall for CP’s Foundations in the Field video series featuring more detailed video interviews with these employees and others. I’ve worked for the railroad for 18 years, 15 of them were spent in India. My father also worked for the railroad in India, so I’m a second-generation railroader and I’ve seen the work done in different ways all over the world. At CP, my job is all about moving customers’ products from one place to another, and making sure the work is done safely and quickly. The changes that I’ve seen around CP have really improved our ability to provide service. The reconfigurations here at Rugby Yard in Winnipeg, for example, are allowing crews to move trains more quickly and think more independently. Now that we’ve gone from using power to manual switches, the customer definitely benefits. It seems counterintuitive to go back to manual; however, there was a time when several crews might have been sitting on their trains indefinitely, waiting for someone else in a different city to align the switches. Now, control has been given to us and we can use our good sense to determine when we can safely move around that part of the yard, and avoid gridlock. CANADIAN PACIFIC MAGAZINE 15 HOME 5 foundations CONTROL COSTS Heather Hanna Director, network services operations, operations system, Network Service Centre, Winnipeg Optimize Assets David Anders Trainmaster, Pacific Region: Crowsnest, Byron Creek, Fording River, and Cranbrook subdivisions I’ve worked for CP for 33 years across a number of departments before taking on my current role in Winnipeg’s new CP Network Service Centre. My team and I provide the paperwork that train crews require to move trains. Controlling costs is a regular part of our day-to-day activities, right down to job performance—how we work with customers on requests, provide timely updates to inventory and ensure fluid interchanges and border crossings. These activities are all linked to specific processes. Controlling costs is all about having the right processes and re-evaluating them often. My team and I recently reviewed a particular process that was put in place four years ago. While this involved two extra hours of work to complete the review, in the long run we identified clear opportunities for improvement that will save our company time and money. This is the kind of accountability that enables each employee to contribute to CP’s transformation. Every day at shift change we have a quick whiteboard session to address the issues of the day and relay important information to the team. This is an important part of how we communicate with one another and helps us prepare for the challenges that come our way. You can’t be afraid to make a change. You can’t be afraid to question everything. 16 CANADIAN PACIFIC MAGAZINE I’ve been working at CP for 10 years, but I’m particularly proud of the progress we’ve made in the last two years, which has seen us improve service to our coal customers (specifically, Teck®). With fewer resources to pull from, we discovered how to work smarter every single day. The results speak for themselves. We’re experiencing the best cycle times we have ever had. Earlier in the summer, we processed a monthly record of 143 coal trains. The tower loading process at the Fording River Mine (one of the biggest mines we service), which updated how we load coal into the railcars, is a big piece of that success. The CP crew hands an empty train to Teck’s loadout operator, who controls the train during the loading process. Once the train is loaded, the CP crew takes control again. One advantage of this process is that it permits optimal use of people assets. Sometimes a crew will take one train from Fort Steele to Fording River, and then return to the bunkhouse and rest. In peak periods it’s easy for crews to drop off one train and then work one going in the other direction, meaning they can be home the same day. Not long ago, crews would bring a train to the mine and wait for it to be loaded while it travelled at two to three miles an hour. They would burn a lot of hours on duty, without operating their train. The old ways resulted in a depleted crew base and too many trains waiting to depart. Now we’re in a position to move five trains in and out of the valley every single day. HOME 5 foundations operate safely Cindy Ingram Division engineer Quad Cities Division, Davenport, Iowa DEVELOP PEOPLE Tyson Venne Conductor, FPC Smiths Falls Yard I started with the railroad 22 years ago, working as an assistant technician at Toronto Yard. I’ve held 10 jobs in 22 years. My family’s joke is that we don’t clean, we just move. In my current job at the Quad Cities Division, I am responsible for signals, structures, and the track department from Kansas City to Randall Road, which is just west of Elgin, Ill., in the Chicago area. This territory is extremely susceptible to flooding; we experienced a major flood event here this past summer (2014). In my territory we look to keep operations simple and safe. We are not a company that expects its employees to hold off repairing something because, in some technical sense, it meets requirements. We ask our managers and their teams to always keep the big picture in mind. If the railway needs ties, we will install them and not leave it to the last possible minute to replace the old ties. We will not take such risks. No manager can be everywhere at the same time. We coach and train our employees to learn what they need to know to perform their duties safely, and to look out for each other. I’ve worked at CP for 15 years, starting out working on engineering crews. Eventually my supervisor recommended that I apply for the running trades; something I’ve never forgotten. It’s important for employees to feel like they have a future and that someone believes in them. A year ago, I started coaching new hires in the field. That’s not something I take for granted. If they learn that it’s okay to take shortcuts from the start, those bad habits could end up costing them their job one day, or worse. If I see someone doing something incorrectly, I’m not doing them a favour by not pointing it out to them. I make sure to address the issue as soon as it arises. There’s no such thing as a small accident on the railway. I encourage new-hires to believe in themselves, because often, they already know the rules and procedures. Confidence comes with time and experience. I motivate people to think, asking them questions that will help them figure out the answers. This is the best way for people to learn and remember. This pays off. Plus, it’s really satisfying to help new hires learn the job, and then to watch them in the yard and work with them, because I know first-hand that they know the job. CANADIAN PACIFIC MAGAZINE 17 HOME Updating assets BUILDING ON tradition PLANNING FOR THE FUTURE By Matt Gawelczyk, supervisor, production, Alyth and Moose Jaw locomotive repair facilities. 18 CANADIAN PACIFIC MAGAZINE For decades, CP relied on general purpose Electro-Motive Diesel (EMD) locomotives to handle yard and road work. But during the past two years the reinvigorated CP has been updating its locomotive roster with new EMD GP20C-ECO units. In 2008, EMD began developing the technology for a new locomotive set-up—the GP20C-ECO. CP has been the industry leader in acquiring these locomotives. They began pulling freight in 2013. HOME Updating assets Cleaner, STRONGER, faster Innovations and improvements The remanufactured locomotives reuse many components that have been overhauled, including trucks, traction motors, main generators and air compressors. However, their former 567 engines have been replaced with brand new turbocharged eight-cylinder 710 series prime movers that promote 2000 hp with reduced emissions. They also create a better working experience for the engineers. Rich Baxter, a locomotive engineer with 26 years of service out of London, Ont. says comforts like air conditioning actually go a long way towards helping employees stay focused throughout a long shift. Although sharing many similarities with their predecessors, GP20C-ECOs are not just a newer build of the conventional GP9 engine. The GP20s represent an evolution of the GP locomotive. “The GP20 is a world of difference compared to the old-style locomotives,” says Rich. “The new engines keep their feet a lot better, while the former engines would slip on wet rail and keeping momentum would be difficult. They’re also more responsive and user-friendly.” The GP20’s 710 engine has proven to be 25 per cent more efficient than the former GP9 engine due to design features such as Electro-Motive Diesel Engine Control (EMDEC) electronic fuel injection, higher peak firing pressure, turbocharger, etc., as well as other new locomotive system technology such as AESS and AST® engine heating systems, which enable the locomotive to be shut down when not in use. “In combination, these features help improve locomotive fuel efficiency and reliability. And, the EMDEC allows for better operation and monitoring of the engine’s performance in real time,” says Matt Gawelczyk, who has worked as supervisor, production for a locomotive repair facility in Calgary and Moose Jaw since 2011. “This enables it to reduce component wear, fuel consumption and engine oil use in comparison to the GP9.” The old relay logic analog control system has been replaced with a new Electro-Motive EM2000 Control System, a microprocessor-based system that provides improved performance, reliability and diagnostic capabilities. Also, a big deal for operators and mechanics is the Functionally Integrated Railroad Electronics (FIRE) system. “FIRE helps all of the cab electronics communicate with one another. It provides our Train & Engine (T&E) personnel with improved management of locomotive operation and performance, and it displays relevant operating data for the locomotive engineer on a computer screen.” This is important for the mechanics because FIRE enables locomotive system information and fault history to be quickly and reliably accessed. “We can pinpoint defects quickly and more accurately,” adds Matt. “When something does go down in the engine locomotive, the FIRE system makes for a faster, straightforward repair.” This integrated approach in turn reduces maintenance costs and repair times. The event recorder, also known as the little black box, is also integrated with the FIRE system. “Numerous other upgrades, including improved cab space built to meet the existing crashworthiness specifications, new car bodies, and microprocessor controls have also been fitted, making the engines safer and more reliable,” says Matt. “We now have a fleet of engines that are more reliable for our customers and safer for our T&E guys to drive.” More fuel efficient engines IntelliTRAIN remote satellite UPGRADED AIR BRAKE SYSTEM Expected savings of more than This capability makes it easier for CP’s The new New York Air Brake CCB II air $40,000 in fuel per engine per year. mechanical managers to troubleshoot brake system also offers improved reliability, faults and access operational data. and self-diagnostic capability. CANADIAN PACIFIC MAGAZINE 19 HOME Safety TRACKING DOwn DEFECTS 1 Turnout inspection 2 The hammer test 3 Checking the underside Gary stops to inspect the north wye switch Departing yard limits, Gary scans for Farther north, Gary notices another at Ramsey, at the junction of the Jackson potential trouble spots between the left- shadow, adjacent to where some flow Subdivision. It’s one of 76 main track hand and right-hand jointed rails. North of (mushrooming of the railhead) is occurring. switches in his territory. All the switches town, he finds one: a light shadow on the The flow isn’t a problem, but the shadow must be checked monthly to ensure they railhead at the site of a gravel road crossing. might be. He uses a mirror on a stick, meet Federal Railroad Administration and Such shadows can indicate that the ball of similar to a dentist’s tool, but larger, to view CP standards. the rail (the wide part at the top) could be the underside of the ball. This time, he sees separating from the web (the skinny vertical the start of a separation. He consults the part of the rail).To test his suspicion, Gary Red Book, CP’s book of track standards, drops the head of a hammer on the ball. and finds that the emerging separation is It bounces several times, indicating that the in compliance and doesn’t compromise rail has retained its integrity. If the hammer safety. Gary scribbles down the location had fallen with a thud and failed to bounce, of the issue, which he’ll watch closely in it would indicate an emerging separation. coming months. 20 CANADIAN PACIFIC MAGAZINE HOME Safety The spring thaw had just gotten underway when Canadian Pacific Magazine joined Gary Wagner, a Southern Region-based track inspector on his rounds. 4 Looking for a low spot Gary’s task on this day was to watch for emerging issues within a segment of his territory; a 147-mile route in southern Minnesota and northern Iowa. Gary started his railroad career with CP predecessor Milwaukee Road in 1979, and has been inspecting and maintaining track 5 Clearing the track ever since. Today, the routes Gary covers include a mix of 40-mph welded rail and 25-mph jointed rail. Problems can emerge at rail joints, culverts, crossings and just about anywhere else. It’s Gary’s job to spot troublesome developments before they evolve into major complications. 6 CreaTing THE Report Approaching Blooming Prairie, Minn., Gary Near Lyle, Minn., Gary stops to check a slight Gary completes his inspection southward notices that a bolt is missing from an angle sag in the track. He removes two clamps across the Iowa border, watching for potential bar, the piece that holds the ends of rails tied together with a 62-foot length of string signs of trouble, like disturbed ballast, which together. He says that between the heaving from his truck and attaches each clamp to can indicate that the track is moving, there and settling that results from the freeze-thaw the rail. By measuring the distance between are missing tie clips or ballast is eroding from cycle and the motion from passing trains, the railhead and the string at the midpoint between ties at culverts. The only issue he turns “It’s amazing how quick it can turn a nut off.” compared to the distance at each end, he up is a crossbuck that’s fallen over and is lying Gary installs and tightens a new nut and bolt. can determine if the rail is sagging enough in the ditch. Gary reports the issue to the local to create a defect. In this case it’s not. He track maintenance crew, and will hold onto his also checks cross-level (the difference in track warrant until the task is complete. Upon height between the two rails) and gauge (the returning to Austin, Minn., Gary logs into his distance between the two rails) and finds both digital track notebook and reports everything to be well within compliance. he’s inspected. On this day, it was 51 miles of track in 6 hours, 30 minutes. The program will automatically notify him if any section of track or any switch is approaching its mandated inspection interval. CANADIAN PACIFIC MAGAZINE 21 HOME QUESTIONS CP employees interact with our track evaluation cars (TECs) in many ways, including the scheduling and dispatching of these cars. Yet, few CP employees have had a chance to ride them and see what they actually do. Canadian Pacific Magazine caught up with George Kishi (who oversees the TEC program) to learn about the cars’ purpose and why they’re so important. The motorsports enthusiast and all-around handyman talks about how the cars work, what role they play in the company’s track maintenance and planning programs, and what he finds most gratifying about his job. George has nearly 30 years of service with CP. 22 CANADIAN PACIFIC MAGAZINE HOME 10 questions 1 What do you find most gratifying about working in Track Evaluation? 3 Track inspectors check these lines more frequently than TEC visits. What is it that TECs detect that 7 Does CP’s capital planning team use data from the TEC to evaluate when track components might I started my CP career with Track track inspectors might not? need to be replaced? Evaluation in 1988, right off the street. Track inspectors are out there every day Yes. CP allocates about $600 Aside from brief stints in engineering, and TECs can’t replace the important million per year to track structure operations and track scheduling, jobs they perform. However, TECs test replacement ($690 million in 2014), I have worked with track evaluation track underload to detect developing and where and how CP spends that cars for most of my career. My problems that track inspectors might money is heavily based on the results fulfillment comes from the variety miss. We’re one of the only railroads TECs provide. Headquarters reviews of duties, including working cross- that tests in the winter; most railroads data constantly, to evaluate the life functionally with different levels of don’t start testing until springtime. There cycle of track components. engineering and operations. I have are details that track inspectors may always been fortunate to work with miss as a result of heavy snow cover, quality people. It is rewarding to know which the TECs will not miss. So, TECs that the company depends on the are a valuable complement to our track work we do to keep the railroad safe inspection team. and to plan track programs. 2 4 5 8 We have two TECs: TEC-63 and TEC-64. We’ve talked about how these cars are equipped with the latest technology, despite their age. Tell us about their history. What’s life like aboard TECs? TEC-63 was built in 1931 and rebuilt Our staff comprises three to four people by CP in 1971. TEC-64 was built in who live on board: supervisor, geometry 1947 and rebuilt by CP in 1987. Both of the TECs? operator, joint bar editor and in the case cars were rebuilt from passenger We use tonnage and class of track to of TEC-63, gauge restraint monitoring cars. As part of the rebuilds, our determine the frequency of testing. system operator. Each staff member is shops retrofitted them with modern We’re out on the various subdivisions provided with a bedroom, and each car running gear. They’ll soon be joined within the network a minimum of is equipped with a dining room, kitchen by a third car, an automated track twice a year—more than what the and TVs for off-hours. This is unique geometry measurement car, which government requires of us. to CP. Other Class 1 railroads put their will be the first of its kind on any personnel up in hotels at the end of the Class 1 railroad. How often are your main line subdivisions evaluated by one How do TECs work, and what day. When track evaluation crews are specifically do they check? out testing for the day, they’re usually Both cars measure track geometry accompanied by the division engineer (low, high, narrow and wide spots), and roadmaster, and sometimes other rail wear and joint bar inspection. local engineering people. One car, TEC-63, is also equipped 6 9 How will the automated car function? This car, the CP60, is a boxcar we’ve equipped with software and hardware that’s required to check track When TECs spot defects, geometry and convey results to the how do you respond? team at Head Office. CP60 will move It depends on the severity of the in conjunction with freight trains. Each underside will immediately detect defect. TECs are capable of detecting year, along with TEC-63 and TEC-64, defects, including those that do even the smallest variances from it’ll help us cover more track miles not yet exceed Transport Canada, optimal conditions, and in these cases, than before. TEC-63 and TEC-64 Federal Railroad Administration or CP roadmasters note the emerging issue can’t travel with freight trains. specifications. Whenever we explore and monitor it during the months ahead a segment of track, data from the for possible worsening conditions. last time we explored that track is When the defect goes beyond accessible. That way, we can identify specifications for the class of track in deterioration, as well as sections question, we’ll immediately contact the TECs on CP’s network, allowing that have been fixed up, or that are the dispatcher and issue a slow order us to test more often. holding firm. that limits train speed within that with a gauge restraint measurement system, which assesses fastener effectiveness. Sensors on the car’s 10 Have the TECs ever been loaned to other railroads for testing? Yes, up until this year. Now we keep troublesome spot, and then dispatch engineering crews to repair the track. CANADIAN PACIFIC MAGAZINE 23 HOME PHOTO JOURNAL 24 CANADIAN PACIFIC MAGAZINE HOME During the 1990s, the City of Vaughan ran a marketing campaign promoting it as “the city above Toronto.” The irony is there wasn’t much there. In 1991, the Township of Vaughan renamed itself as the City of Vaughan. The newly minted city featured a handful of homes, a nearby amusement park and CP’s recently opened Intermodal Yard. Since then, Vaughan has become one of Canada’s fastest growing cities. Roughly 300,000 people now call this North Toronto suburb home. As domestic intermodal business has become a more significant element of our growth, Vaughan Intermodal Yard has followed a similar trajectory to the city. Today, Vaughan Yard is a tightly run ship overseen by Jeff Allen, director intermodal operations, and his management team of James Mason, Matt Wiatrowski, Joe Rigato, Kevan Proudlock, Michael McDonald and Cory Gauther-Romaniuk. Vaughan is a 24/7 operation employing roughly 150 people who handle an average of 1,800 containers per day, including all 12,000 feet of the 101, one of our priority trains. The 101 departs the yard at 2100 every day, racing across our main line in Canada, covering the distance between Toronto, Calgary and Vancouver faster than any other railroad. That train carries containers bound for customer distribution centres and retail outlets, including Costco®, The Home Depot®, Lowes®, The Real Canadian Superstore® and Canadian Tire®. See Vaughan Yard featured in the animated Port to Purchase video on our new website: www.cpr.ca/en/choose-rail. Vaughan Intermodal Yard The yard operates on 350 developed acres. The entire terminal has 700 acres within its boundaries. CANADIAN PACIFIC MAGAZINE 25 HOME In the cockpit Right: Al Bellchamber is one of the many vital top-lifter operators whose work ensures that CP’s cross-country intermodal trains, such as the westbound 101 and 119, leave on time every day. Making moves Left: This RTG, electricdiesel hybrid top-lifter is the only one of its kind in Canada. Watch for more information on this cost-saving machine in the next issue of Canadian Pacific Magazine. Line ’em up Left: Vaughan Intermodal Yard has over 17 miles of track; 31,400 feet of working track and 51,780 feet of storage track. 26 CANADIAN PACIFIC MAGAZINE HOME CANADIAN PACIFIC MAGAZINE 27 HOME 28 CANADIAN PACIFIC MAGAZINE HOME Right on time Top left: Since March 2014, the 101 departing daily from Vaughan Yard has a near perfect on-time departure record. On the spot Top right: It used to take Vaughan’s car shop 24-48 hours to pull a bad-order car, change a wheel set and get it back to work. Now, the Vaughan carmen can do it in less than an hour. Take them in, turn them around Left: Vaughan Yard sees between 1,200 and 1,900 trucks per day, picking up and dropping off containers. The yard turns those trucks around in an average of 34 minutes. CANADIAN PACIFIC MAGAZINE 29 HOME Safety 30 CANADIAN PACIFIC MAGAZINE HOME SAfety While only six per cent of the commodities CP moves yearly are classified as dangerous commodities, their safe shipment is a top priority. “We are to the point where our hazmatresponse equipment is industry-leading,” says Scott Croome, a CP hazmat field specialist based in Toronto who has an extensive background as a firefighter. Scott took a few minutes during a hazmat equipment and emergency education day at a British Columbia fire department to talk about why the CP equipment is such a big deal. “In Canada, there aren’t even any contractors who have this calibre of equipment. We discovered that gap in the industry about 10 years ago and have been working towards a solution ever since. But we really got the support needed to develop and expand our equipment during the last two years.” This equipment includes five fire trailers, which essentially have the capabilities of a fire truck, but are smaller and more mobile, as well as four 53-foot trailers equipped with everything someone could need in a hazmat rail emergency. “The equipment is currently stored in locations throughout the network, based on volume of traffic, population density and of course, the volume of dangerous goods travelling through an area.” Ed Dankbar, one of Scott’s U.S. counterparts who works out of Minneapolis and St. Paul, says that with the ever-increasing number of crude shipments, developing and expanding our capabilities is the responsible thing to do. “Having come up through the crafts as a mechanical employee I have a unique understanding of how sometimes things can go wrong,” says Ed. “Now, we don’t have to rely on someone else to react in those situations.” Mobile hazmat trailer can do everything a fire truck can, and can go more places. in action Ed explains that if a crew derails, they’ll call the operations centre, who will call 911 and dispatch CP’s first responders. “We’ll get there by helicopter if we have to,” says Ed. “Obviously trains don’t always travel in conveniently accessible locations. This is one added bonus of our equipment—everything can actually be transported by helicopter and dropped into the middle of nowhere if required.” Once equipment arrives on scene, the team can fight a fire—just about everyone on the hazmat team is a licenced firefighter—drain a leaking tank car and reload its contents to a fresh car, or cap a leaking valve. Now that our equipment is up to speed, the big focus for the hazmat team is education and training. Scott has completed more than 75 public first-responder training events in the first quarter of 2014 alone, and trained more than 1,000 first responders on our equipment and procedures during that same time. “It’s the kind of thing that makes you feel like your job counts for something,” says Scott. Ed Dankbar, CP hazmat field specialist CANADIAN PACIFIC MAGAZINE 31 HOME FROM THE ARCHIVES Signal testing Signal maintainer Walter Beckstead is using the standard 2A electrical test metre to test a dwarf signal in Windsor Station. He is making sure that the signal operates correctly, since it is one of the signals governing train movements in and out of what was once one of CP’s busiest locations. These signals and associated track switches were controlled from the lever-operated mechanical interlocking machine in the control tower. A dwarf signal is used between tracks when there is no room for the standard high signal on a pole. 32 CANADIAN PACIFIC MAGAZINE Photographer Nicholas Morant, 1938 HOME CEO AWARDS of EXCELLENCE Last year CEO, Hunter Harrison launched his CEO Awards of Excellence to recognize our best. The winners were treated to a lavish, five-star vacation for two in Florida. This year we’re going back, and we are looking for a new group of employees to take with us. We are looking for employees whose efforts to execute through CP’s five Foundations have shone the brightest this past year. If you know someone who has gone above and beyond to satisfy a customer without sacrificing the integrity of our business, found a way to reduce or control costs, improved a process, prevented a problem before it happened, or gone out of your way to develop the next generation of CP’s employees, then we want to know about it. Don’t let someone’s extraordinary efforts to produce results for CP go unnoticed. Provide as much detail as possible about the employee’s efforts and achievements. It’s beneficial to attach a typed document that thoroughly provides senior leadership with the context warranting the nomination. Nomination forms must be filled out and submitted by Dec. 1, 2014. Scan and submit nomination forms to [email protected], or fax to: 403 319 6081. For more details on the awards categories visit RailCity. HOME Nomination form nominee NAME EMPLOYEE ID PHONE DEPARTMENT TITLE REGION E-MAIL DIRECT SUPERVISOR nominator NAME EMPLOYEE ID PHONE DEPARTMENT TITLE REGION E-MAIL DIRECT SUPERVISOR CATEGORY PROVIDING SERVICE CONTROLLING COSTS OPERATING SAFELY OPTIMIZING PEOPLE ASSETS Please summarize the effort for which you are nominating this person, its impact, uniqueness, innovation, etc. Attach a separate page if you need more space to do this appropriately. HOME EDITORS Breanne Feigel, Steven Noble Writers Andy Cummings, Matt Gawelczyk, Erin Randles, Nick Richbell, Steven Noble, Jade Wong Photographers Andy Cummings, Kristopher Grunert, Tomas Kraus, Nicholas Morant, Steven Noble, Ewan Nicholson, Jade Wong SPECIAL THANKS Tina Sheaves, Jeff Allen, Kevan Proudlock, Morris Prychitko, Michael McDonald and everyone at Vaughan Intermodal Yard who works so hard day in and day out to make intermodal a successful building block at CP. Thanks for putting up with the cameras and the questions. Also, Canadian Pacific Magazine would like to thank Rhea Adama, Brent Bichard, James Cranney, Dave Courville, Matt Gawelczyk, Deryk Gillespie, Neil Greenslade, Bob Hatfield, Heather Hannah, Tim Majcik, Danny Melo, Torrey Swan, Kevin Francis, Steve Doyle, Patrick Giosi, Drew Primrose, Aaron Twomey, Real DeCarufel and David Braun. HOME