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SEPTEMBER/OCTOBER 2018

2018 SPECIALCONFERENCE

SHOWCASE ISSUE

THE MAGAZINE FOR PRODUCERS & USERS OF TREATED WOOD CROSSTIES & RELATED PRODUCTS

@RTAHQ

For Live

Twitter

Updates

#RTA100th

SPECIAL REPORTS:Industry Updates, Plant News & More

Market Outlook: Tie Forecast For 2018 & Beyond

Annual RTA Conference: Presenters, Award Winners & MoreBe In The Know With Conference App:

Focus On Sawmills & SafetyMonthly Tie Trends & Insights From The Field

Tie Graders Learn, Compete & Excel At 2018 Seminar

RTA's Tie Grading Seminar winners include Eric Baughman of Stella Jones, left; Sean Woody of Norfolk Southern, top left; and Johnny Allison of Koppers Inc., above right.

CROSSTIES • SEPTEMBER/OCTOBER 20182

1 Tru-Core® is manufactured under license from Kop-Coat Inc.

BUILDING GREAT LINES FROM THE GROUND UP.™

www.koppers.com 1-888-567-8437

Koppers Benefits n Nine strategically located treatment facilities in

North America

n Creosote Petroleum Solution (CPS) pressure treated ties or patented Tru-Core®1 dual treated Borate and CPS ties for extended life in the harshest decay zones

n U.S. Treatment plants are AAR M-1003, ISO 14001 and RC14001 certified

CROSSTIES TO YOUR SPECIFICATIONS

Accurate, Measurable and Repeatable Preservative Retention LevelsOur patented Tru-Core® dual pressure treatment process

ensures that the retention levels of Borate and Creosote

Petroleum Solution that you specify for your crossties, are

achieved and verifiable. Koppers delivers quality you can rely

on for every decay zone.

WE DELIVER THE QUALITY YOU EXPECT... EVERY TIME

Koppers-Crossties-Ad-1.18 final.indd 1 1/12/18 11:24 AM

CROSSTIES • SEPTEMBER/OCTOBER 2018 3

Published jointly by:Covey Communications Corp.

P. O. Box 2267Gulf Shores, AL 36547

(251) 968-5300 • FAX (251) 968-4532&

The Railway Tie Association115 Commerce Dr., Ste. C

Fayetteville, GA 30214(770) 460-5553 • FAX (770) 460-5573

www.rta.org • [email protected]

J. Talty O’Connor

Publisher•

Kristen S. McIntoshEditor

•Tanya Hughes

Graphic Designer•

Stephanie EckmanAdvertising Traffic Coordinator

Railway Tie AssociationExecutive Committee

PRESIDENT

Timothy R. RiesKoppers Inc.

•VICE PRESIDENTWilliam L. BehanGross & Janes Co.

•David A. Koch IIWheeler Lumber

•Kenneth E. DaileyStella-Jones Corp.

•Richard A. Gibson

Appalachian Timber Services•

Frank (Skipper) S. Beal.Beal Lumber Co., Inc.

•Kristine N. Storm

Genesee & Wyoming•

Kevin D. HicksUnion Pacific Railroad

•EXECUTIVE DIRECTOR

James C. Gauntt•

ADMINISTRATORDeborah L. Corallo

•WEBSITE & COMMITTEE COORDINATOR

Barbara L. Stacey

Volume 99, Number 4 • September/October 2018

On The Cover: Pg. 14

Participants in RTA’s Annual Tie Grading Seminar took a “hands-on” approach during the intensive three-day event. Hosted by Koppers Inc., the seminar was held in Peoria, Ill., and at the Koppers plant in Galesburg, Ill. See a play-by-play photo description of the event starting on page 14.

CROSSTIES (ISSN S0097-4536) (USPS# 949600) is published bi-monthly (six times per year) by Covey Com mu ni ca tions Corp. in association with the Railway Tie Association (RTA). All rights reserved. Neither RTA nor Covey Communications Corp. assume any re spon si bil i ty for state-ments made or opinions expressed by members or others in articles appearing in this publication. CROSSTIES readers include all active members of RTA plus other individuals and institutions interested in the treated wood crosstie and related industries. Individual subscriptions are available for $35 per year. Subscriptions, advertising rates and other data can be obtained by writing or calling Covey Com mu ni ca tions Corp., P. O. Box 2267, Gulf Shores, AL 36547, (251) 968-5300. Information on membership in RTA is available by contacting the Railway Tie Association, 115 Commerce Dr., Ste. C, Fayetteville, GA 30214, (770) 460-5553. Periodical Postage paid at Gulf Shores, AL and other entry locations. Copyright 2018.

POSTMASTER: Please send change of address form #3579 to the Railway Tie Association, 115 Commerce Dr., Ste. C, Fayetteville, GA 30214.

S P E C I A L R E P O R T SRailway Supply Institute Study Showcases Power Of Rail Industry Products RTA was among several industry associations that partnered on a study quantifying the economic and workforce impact of the products and services produced by the railway supply industry.Safety Minute: iPhone Users, How To Say 'No' To Distracted Driving In a new Crossties column called “Safety Minute,” we learn how to enable the Do Not Disturb function on iPhones.Market Outlook For Ties For 2018 & BeyondRTA’s exclusive tie demand survey, coupled with data from AAR and ASLRRA, explains the demand expectations for wood ties this year and into the future.Sawmill FocusSee hardwood procurement trends as reported by RTA members in the field. Also, learn more about the meetings held on Capitol Hill by representatives of the Hardwood Federation. Talks focused primarily on trade and the Farm Bill.

Learn More About RTA Conference Presenters A field of outstanding industry experts has been lined up to make presentations during the Annual RTA Technical Conference & Symposium. Here’s a sneak peek.RTA Award Winners To Be Honored At ConventionFour wood tie industry veterans have been named RTA’s annual award winners for 2018. Learn more about those who will be honored at the convention for their contri-butions to the industry.Deserving Students To Receive RTA Scholarships Three students have been selected as winners of RTA’s John Mabry Forestry Scholarships. Get to know each of the students and their aspirations for working in the forest products industry.Conference Play-By-PlayRefer to this agenda to see the details of the upcoming RTA Symposium & Technical Conference. You’ll see who is scheduled to speak at what time and learn more about the networking opportunities and fun activities for guests.

News Scope ............................ 4

Sawmill Focus ...................... 19

Tie Trends......................28

Regular Departments

8

10

19

20

22

24

26

6

CONFERENCE SHOWCASE

C O N T E N T S

1 Tru-Core® is manufactured under license from Kop-Coat Inc.

BUILDING GREAT LINES FROM THE GROUND UP.™

www.koppers.com 1-888-567-8437

Koppers Benefits n Nine strategically located treatment facilities in

North America

n Creosote Petroleum Solution (CPS) pressure treated ties or patented Tru-Core®1 dual treated Borate and CPS ties for extended life in the harshest decay zones

n U.S. Treatment plants are AAR M-1003, ISO 14001 and RC14001 certified

CROSSTIES TO YOUR SPECIFICATIONS

Accurate, Measurable and Repeatable Preservative Retention LevelsOur patented Tru-Core® dual pressure treatment process

ensures that the retention levels of Borate and Creosote

Petroleum Solution that you specify for your crossties, are

achieved and verifiable. Koppers delivers quality you can rely

on for every decay zone.

WE DELIVER THE QUALITY YOU EXPECT... EVERY TIME

Koppers-Crossties-Ad-1.18 final.indd 1 1/12/18 11:24 AM


XXXINDUSTRY NEWS

NAM Acquires Manufacturing Leadership CouncilThe National Association of Manufacturers (NAM) announced the successful acqui-sition of the Manufacturing Leadership Council (MLC), which provides industry-leading best practices, data and insights on Manufacturing 4.0 (M4.0).

Across the country, manufacturing profes-sionals from operations, plant management, supply chain and information technology fields turn to the MLC for real-world knowl-edge via their peers, in-depth factory tours, an annual three-day conference, webinars, a bimonthly journal, case studies and exclu-sive survey research on subject matters such as advanced analytics and artificial intel-ligence, predictive maintenance, augmented/

virtual reality, collaborative robotics, addi-tive manufacturing, current workforce digi-tal readiness, cybersecurity, M4.0 cultures and organizational models.

“This acquisition adds another strong portfolio of services to the association,” said NAM President and CEO Jay Timmons. “It complements our existing Leading Edge thought leadership programming that you have come to know—and it will create more value not only for our members but also partner organizations and for their members as well.”

Koppers’ Steve Lish Takes On New RolePITTSUBURGH—Koppers Inc. has appointed Steve Lish as vice president, Recovery Services for M.A. Energy Resources (MAER) business group of Koppers Railroad Products and Services.

Lish joined Koppers in 1989 and has held various leadership roles in operations within both the Railroad Products and Services and Carbon Materials and Chemicals (CMC) business units.

In his new role, Lish will develop and employ capital projects and initiatives while delivering operational excellence in a socially responsible and ethical manner.

NC Awards Short Line RR GrantsRALEIGH , N.C.—Fourteen short line rail-roads will soon be making improvements to their infrastructure thanks to approximately $7 million in matching grant funds being awarded as part of the N.C. Department of Transportation’s Short Line Improvement Program.

“We look forward to seeing the positive impact these grant funds have on North Carolina’s short line rail infrastructure, which plays a key role in our economy,” said Julie White, NCDOT Deputy Secretary for Multimodal Transportation. “These improvements not only spur economic development, but also enhance the safety and reliability of rail operations across the state.”

The Short Line Improvement Program supports short line rail infrastructure health and performance throughout the state, enabling NCDOT to partner with short line rail companies on rail improvement projects. This partnership helps the short lines meet customer needs in an efficient and cost-effective manner while also preparing them for growing service demands and partner-ships with potential customers.

Since 2014, over $28 million in match-ing Short Line Improvement Program funds have been provided toward 66 rail improve-ment projects.

Industry in the Spotlight

NEWS Scope

RTA shirts are showing up on the “Left Coast.” Two fellow RTA guys, Butch Bernhardt, left, and Dallin Brooks of Western Wood Preservers Institute, found themselves coming to work wearing the same RTA gear in early September. Rock on, WWPI peeps! See you soon!

Preserved Wood Brotherhood


ELIMINATE STACK BURNIN MIXED HARDWOODS

WITH

Dip-treating with Cellu-Treat creates a stronger tie, prevents mold growth and penetrates to the heartwood.

WHEN YOU USE CELLU-TREAT, YOU WILL HAVE THE STRONGEST, LONGEST-LASTING TIE IN THE BUSINESS.CONTACT

KEN LAUGHLIN Divisional Vice President, Wood Preservation 520-631-1084 • [email protected] CANON MCDONALD Eastern Regional Sales Manager 865-340-8408 • [email protected]

Cellu-Treat and Nisus Corporation are registered trademarks of Nisus Corporation. ©2018 Nisus Corporation #CT-JA2018

Cellu-Treat saves on splitting. We were seeing 10% of our ties splitting during air season. After we started dipping with Cellu‑Treat, splitting is now down to 1%. Ties are also drying a month or two sooner. That surprised us, and we actually tested three times to confirm.Dipping prior to air season is definitely better. Now we can keep ties in the air longer if needed. We have fewer season checks and ties look new after seasoning.

Doug Mellott, Vice President Mellott Wood Preserving | Needmore, PA

“

www.nisuscorp.com 800-264-0870


XXXINDUSTRY NEWS

AAR Names Jefferies President, CEO WASHINGTON—The Association of

American Railroads (AAR) has selected Ian Jefferies as the organization’s next president and CEO. Jefferies will begin

his duties on Jan. 1, 2019. Jefferies honed the skills and expertise necessary to steer AAR during his tenure as AAR’s senior vice president of government affairs and as a senior policy advisor on Capitol Hill.

“For years, we have known that Ian understands the policy and priorities of the rail industry, and he has been a proven advocate for our issues,” said Jim Squires, AAR board of directors chair and Norfolk Southern Corp. chair-man, president and CEO. “Ian will extend a legacy of vision, leadership and energy to write an exciting new chapter for the AAR while ensuring that it remains a clear and trusted voice in Washington.”

CORRECTION: In an article in the July/August issue of Crossties showcasing the new Genesee Arch Bridge, it was incorrectly stated that Nisus Corp. provided ties to Norfolk Southern for the project when in fact Mellott Wood Preserving Company was the chosen supplier for the treated material. NS specified Nisus Corp.'s Cellutreat Liquid DOT and QNAP technology for the bridge.

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contact us today and make the commitment to extend your crosstie performance!

Find out more at www.grossjanes.comFind out more at www.grossjanes.com

WASHINGTON—The Railway Supply Institute (RSI), partnering with the Railway Engineering-Maintenance Suppliers Association (REMSA), Railway Systems Suppliers Inc. (RSSI) and Railway Tie Association (RTA), announced the results of a major study quantifying the economic and workforce impact of the products and services produced by the railway supply industry. This report highlights the impor-tance of the industry to the U.S. economy in terms of jobs, tax revenue, and gross domestic product (GDP) on both the state and national level.

Beyond their critical support for a rail-road system comprising more than 1.6 million railcars, 38,000 locomotives, and 140,000 miles of track, the railway supply

industry is also essential to the national economy—generating value, stimulating jobs, and paying taxes. The economic contribution of the railway supply industry in 2017 amounted to more than $74.2 billion in gross domestic product (GDP). Suppliers paid $16.9 billion in taxes to local, state and federal governments.

Workers in the industry are highly pro-ductive and well paid with annual wages of $78,800, on average, placing them +42 percent above the U.S. average income*.

Railway suppliers directly employ more than 125,000 people in manufacturing, repair, maintenance and leasing, among others. In addition, for each worker directly employed by the railway supply industry, a further 4.2 jobs are supported in the

wider economy meaning that 650,000 jobs across America can be tied to a railway supplier, their supply chain or spending of those employed by these firms.

“For years, the economic value that rail-roads deliver to our nation has been well documented. This study is the first of its kind to reveal the power and contribution of the railway supply industry that is driven by investment in our nation’s railroads,” said Mike O’Malley, RSI president. “The results tell a powerful story highlighting the benefit of public policies that support continued growth in both the freight and

passenger rail sector.”

Rail Supply Industry Study Shows Economic Power, Workforce Impacts Of Its Products, Services

Jefferies

The report, completed by Oxford Economics, is available at www.rsiweb.org.

Cahaba Pressure Treated Forest Products, Inc. is back in the crosstie business, and in a big way! Already the largest single plant producer of wood poles,

Cahaba is now a major supplier of hardwood crossties. New processing equipment, new borate dip tank, new tie storage areas, but we kept the same hardworking

dedication built on forty years of manufacturing excellence.

Our team is here for you. Contact us today for more information.

205-926-9888 • 12755 Montevallo Rd. Brierfield, AL 35035 • www.cahabapressure.com

Visit our website, www.CahabaPressure.com, and give us the opportunity to build a long-term relationship to help you Stay On Track!

With 50+ years of wood preservative treatment experience, we o�er Mainline, Branch Line and Industrial Grade crossties with creosote or creosote/borate

dual treatment. We also have CCA, CuNap and Penta treatments available should the need arise. Combining this with dependable service and a commitment to

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Jefferies


istracted driving claimed 3,450 lives in 2016 alone, according to

the National Highway Traffic Safety Administration. Although this number rep-resents a decline of 2.2 percent since 2015,

it is important to avoid texting while driving, one of the big-gest causes of distracted driv-ing.

The follow-ing instructions come from various Apple resources and provide details on how to acti-vate your “Do Not Disturb” while driving feature, which prevents text

messages from coming through on your iPhone when motion is detected. The info below is provided for iPhone users with the iOS 11 operating system.

The “Do Not Disturb” while driving feature is also available on Android phones through the use of a free app called “Driving Detective,” which allows you to customize a variety of preferences.

Do Not Disturb Senses When You Are Driving The first time your iPhone running iOS 11

senses you might be driving, it shows a description of the “Do Not Disturb” while driving feature after you stop. (This descrip-tion appears only in certain countries; if it doesn’t appear, follow the steps below to enable the feature.)

Tap “Turn On While Driving,” and it will turn on automatically when your iPhone connects to your car via Bluetooth1 or when your iPhone senses driving motion. You can change the method your iPhone uses to determine whether you’re driving, or turn the feature on manually.

Turn The Feature On & Off In Control CenterYou can let “Do Not Disturb” while driv-ing turn on automatically, or you can add it to Control Center for convenient manual access:1. Go to Settings > Control Center >

Customize Controls.2. Tap “Add Control” to Control Center

next to “Do Not Disturb While Driving.”Now you can swipe from the bottom of

your screen and tap “Do Not Disturb” while driving icon to turn the feature on or off.

What To Expect While It’s ActiveHere’s what to expect when “Do Not Disturb” while driving is turned on. You can customize many of these features in settings.1. Your iPhone stays silent and the screen

stays dark. If someone sends you a mes-sage, they receive an automatic reply letting them know that you’re driving. If the message is important, the sender can

type the word “urgent” to make sure that you receive a notification. Then, you can pull over to read their important message or ask Siri to read it to you.

2. iPhone delivers some notifications, such as emergency alerts, timers and alarms.

3. iPhone calls are delivered using the same conditions as standard “Do Not Disturb.” You can allow calls only from your favorites, and allow calls to come through if the same person calls twice in a row. If your iPhone connects to your car via Bluetooth, calls will come through as usual, and you can use your car’s buttons, microphones, and speakers to take your call.

4. If you use Maps to navigate, your iPhone still shows lock-screen navigation help and gives turn-by-turn instructions.

5. If you’re a passenger and you try to use your iPhone while the feature is active, you must tap “I’m Not Driving” to turn it off.

Use Restrictions To Keep It OnAre you the parent of a young driver? You can prevent changes to “Do Not Disturb” while driving to make sure that it remains a part of their safe driving habits1. On your child’s iPhone, go to

Settings > General > Restrictions.2. If you haven’t used restrictions

before, enter a new passcode. Remember this passcode for any future changes.

3. Under Allow Changes, tap “Do Not Disturb While Driving.”

4. Select “Don’t Allow Changes.”

SAFETY MINUTE

iPhone Users: Avoid Distracted Driving With ‘Do Not Disturb’ Feature

Richard O’Mara • Dave McCarthy • Pamela Nikolovski

is a new Crossties column that is provided by RTA’s Safety & Material Processing Committee (SMP) designed to assist RTA members in improving safety in all aspects of their lives. Committee Liaison & RTA VP Bill Behan, president of Gross & Janes Co, provided this month’s column.

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• Crosstie pre-plate apparatus USA Patent No. 8,844,786

• Canadian Patent No. 2,782,321


MARKET OUTLOOK

PrologueMother Nature and a 3T (topsy-turvy-tariff) world have created an environment eerily familiar yet seemingly impossible given the pains that 2013-2014 visited upon the tie community and railroads.

Readers may recall between 2013 and 2015 ties were in such short supply that many problems arose. Why then does the industry find itself facing the same (if not worse) inventory-to-purchases imbalance just 3 years hence?

Before getting to the surveys, a review of RTA member-reported data (see sidebar on exciting changes coming to the format of the monthly reports) for production and inven-tory sets the table for what may be served up next.

RTA members’ reported monthly inven-tory and production data is used to calculate a ‘purchases estimate’ and an Inventory-to-Sales Ratio (ISR). This is done by measur-ing the change in inventory from month-to-month vs. the incoming production of ties at treating plants, concentration yards and railroads.

Since 2016, RTA has calculated the purchases and ISR from the change in the three-month moving average (3MMA) of inventory levels. This is done to smooth the data plus account for any inventory adjustments that may arise from quarterly physical counts. Although there shouldn’t be much variance from these counts, when it does happen it skews interpretation of the month-to-month data. A 3MMA helps those reviewing the data not get caught up in micro-analysis.

Resolving that concern, however, also requires readers to assess the information from a slightly different perspective.

Since April 2017, RTA has reported 17 consecutive months of negative inventory change (through August 2018 data). With this in mind, think about how inventory change is calculated using a 3MMA, and then consider the effect on ISR based on that moving average. With so many inven-tory drawdown months, it’s hard to imagine how ISR won’t continue edging down.

During that same time period, the 12-month moving average (12MMA) of tie purchases moved only a little bit. The tie purchases annual rate is down only 1.9 per-cent based on 12MMA.

Even with demand declining some, ISR at 0.66, is now within shouting distance of his-toric lows—lows not seen since 1997.

One reason behind this, 2016 and early 2017 saw too much white and black tie inventory built. Tie procurement and treat-ing remained at a torrid pace beyond the point in 2015 when the market became sated. Couple that with a lower normalized level of demand and ISR skyrocketed to 0.99 in March of 2017—a level seen only twice in the last 30 years.

So, it stands to reason an adjustment was in store. But has the adjustment gone too far? Or rather, perhaps asking how the adjustments were implemented is a better question. If action had been taken earlier, would the result have led to a softer landing sooner for the railroads, suppliers and tie inventories?

Water under the bridge. However, the fear now is that inven-

tory has swung past a tipping point and the industry may have found itself right back in the middle of a 2013-2014 like crisis, pursu-ing material from a sawmill base less pre-pared to be quite so resilient this time. This worry is hard to quantify. It’s dicey, though, to count on ties springing forth with a flick of a switch under the current circumstances mills now face.

So how could future demand expectations affect the situation?

Tie Demand ExpectationsIn the 2017 surveys, Class 1s predicted that 2018 new wood installs would be 15,250,000. It’s encouraging that in this year’s survey (see Table 2) results indicated 2018 will end up with installs of 15,650,000.

Even this small increase in demand could add to tie inventory angst. And, with improved economic activity, and suppliers enjoying a better second half in shipments than they did in the first two quarters of this

year (August purchases up by 16.8 percent over July, for example), inventories seem likely to continue their descent.

The same 2018 surveys predict that 2019 installs will exceed this year to 15.9 mil-lion, bolstered mainly by expected increases from Canada. Plus, there could also be some increase in the eastern U.S.—but only if supply can match up.

Stories from the field and the surveys suggest that the western roads final 2019 programs are fluid. That’s not to suggest indecisiveness, only that an inflection point could be on the horizon, even if it is only temporary. Maybe by the time of the RTA’s 100th Annual Conference, modifications, if any, will come more into focus.

Given the state of inventory, however, it’s only a coin-toss if increased installs can occur. Final increased tallies in installa-

Survey Says? The World Is Flat For Tie Demand (…at the moment) By RTA’s Economic Team

As RTA looks to step into its second century of service to the treated hardwood crosstie industry and its suppliers and customers, our Economic Team is hard at work preparing a refresh of its statistical reports.

Commentary and graphical representation of the data will receive a significant makeover and will be available in PDF format for download. The underlying data will be still available as an Excel file, though, possibly, slightly reshaped format for readability.

Look for a preview of the first edition in the November/December issue of Crossties. The full report will be available as a separate link on RTA.org/statistics as soon as the October monthly data is received from producers.

RTA Updates Look Of Statistical Reports


MARKET OUTLOOK

tions will only accrue if supply matches the need—2019 installs could thus be a wash versus 2018 due to supply woes once again.

A review of August data provides addi-tional fodder for this concern. Not only did actual inventories decline 250,000 ties, but also the 3MMA is down another 552,000 ties.

In addition, if black tie shipments con-tinue to increase throughout the fall, and with only a couple of more ideal months of procurement ahead, a real inventory and concurrent 3MMA slide seems to have fur-ther to go.

And that doesn’t even take into consideration multiple other factors that play their part.

One of these is increasing traffic and the demand for future maintenance needs this portends. AAR reported that August traf-fic was up 4.5 percent compared to August 2017. Overall, Class 1s are up 2 percent YTD and short lines report a 2.7 percent YTD increase through the end of August.

Add to this that the AAR monthly traffic data table (Figure 1) shows every month in 2018 rail traffic increased over the same months in 2017. And growth in shipments appears to be accelerating.

This most recent jump in traffic could be the result of the “front-loading” effect of already imposed and future potential tariffs. Because of this, it is fair to note that ship-ments could moderate and freight traffic growth decelerate into 2019 as some have

speculated. The questions for railroads sur-rounding tariffs and NAFTA impacts could further moderate any decision to announce increases in programs.

Yet, if traffic is on a sustainable path of slow and steady growth, it would be a precursor for increasing maintenance demands, with the potential for further pressure on supply.

Commercial Markets The words are robust to very robust. The only drag on demand right now is supply, the recurring theme here. It’s interesting to note that some buyers who don’t review the complete data set in context and rely only on snippets of information, executive summaries or headlines for understanding,

Table 1Crossties Laid In Replacement

Or in Addition - 2017Track Operated by

Reporting RRRail Laid In Replacement

Or In Addition - 2016

District & Railroad

New Wood Ties

New Ties(Other than

Wood)

Second-Hand Ties

(All Types)Miles

OccupiedCrosstiesPer Mile

Avg. Spend Per Tie*

New Rail Laid (Tons)

Relay Rail Laid (Tons)

Avg. Weight Rail (lbs/yd)

Eastern District

CSX Transportation 2,908,131 62,824 0 29,786 99.7 $110.5 121,985 4,487 135.9Grand Trunk Corp. (CN) 753,254 164 997 9,275 81.3 144.0 37,037 17,141 135.1Norfolk Southern 2,250,034 38,388 143,270 28,471 85.4 112.3 110,120 13,480 136.0Total Eastern Dist. 5,911,419 101,376 144,267 67,532 91.2 115.3 269,142 35,108 136.0

Western DistrictBNSF 3,683,460 138,933 0 40,140 95.2 $117.1 190,338 2,160 135.2KCS 488,438 30,404 0 4,043 128.3 165.3 14,950 805 134.0Soo Line Corp. (CP) 311,508 0 0 4,478 69.6 180.7 7,445 4,172 132.0UP 4,064,245 418,502 15,695 43,454 103.5 128.2 178,189 22,597 136.0Total Western Dist. 8,547,651 587,839 15,695 92,115 99.3 127.5 390,922 29,734 135.4

Total U.S. 14,459,070 689,215 159,962 159,647 95.9 122.6 660,064 64,842 135.6

Source: Association of American Railroads * Installed Costs

Country Canada United States

Commodities (All) Chemicals Coal Farm and Food Products Forest Products Grain Metallic Ores and Metals Motor Vehicles and Parts Nonmetallic Minerals and Products Other Petroleum and Petroleum Products Total Carloads Total Carloads & Intermodal Total Intermodal Units

Car

load

s an

d/o

r In

term

od

al U

nits

(in

tho

usan

ds)

Source: Association of American Railroads

Figure 1


MARKET OUTLOOK

Table 3 - Short Line Survey Summary 2018Tie Categories 2017 Usage 2018 Projected 2019 Projected 2020 ProjectedNew 6" and 7" Ties 1,872,067 2,350,094 2,134,682 1,966,607Relay 6" and 7" Ties 124,819 50,519 53,858 53,208Grand Total All Wood Ties 1,996,887 2,400,613 2,188,541 2,019,815Switch Ties 51,639 60,948 46,423 42,965Bridge Timbers 48,201 70,629 59,431 60,775Concrete Ties 434 0 8,673 0Steel Ties 499 6,483 1,323 2,168Composite/Plastic Ties 0 0 0 0

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Track Miles Reporting 21,908 26,900 23,232 20,620 24,964 25,391 18,217 21,116 26,696 15,116 14,966 28,516 19,924 17,663 30,648 29,913 23,883

Total Track Miles 47,500 51,584 51,584 51,584 51,584 51,584 51,584 51,584 50,859 50,859 50,859 50,000 50,000 47,889 50,000 50,000 45,002

% Reporting 46.12% 52.15% 45.04% 39.97% 48.39% 49.22% 35.3% 40.9% 52.5% 30% 29% 57% 40% 37% 61% 60% 53%

Total Roads Reported 188 223 206 176 197 192 157 185 191 117 116 139 130 115 170 111 114

Total Short Lines 603 558 558 558 558 572 572 572 572 572 306 455 633 633 633 533 575

% Reporting 31.18% 39.96% 36.92% 31.54% 35.30% 33.57% 27.4% 32.3% 33.4% 20.5% 38% 31% 21% 18% 27% 21% 20%

Table 2—Railway Tie Association Annual Survey Estimated Crosstie Requirements • Class I Railroads

2018-2020 Inclusive

Authorized Crossties for 2018

District and Railroad

Total Track New Wood Crossties Wood Relay New Non-Wood Crossties Switch Ties (Units) Bridge Timbers

Mileage Hardwood Softwood Crossties Concrete Steel Other Wood Other UnitsEastern U.S. 49,286 4,900,000 0 0 0 0 0 130,000 0 30,000Western U.S. 98,723 7,200,000 300,000 25,000 425,000 15,000 1,000 290,000 125 70,000Canada 32,500 3,550,000 0 0 80,000 1,000 0 85,000 0 18,500TOTAL 180,509 15,650,000 300,000 25,000 505,000 16,000 1,000 505,000 125 118,500



Eastern U.S. 49,286 5,300,000 0 170,000 0 0 0 160,000 0 54,000Western U.S. 98,723 6,970,000 400,000 25,000 425,000 5,000 5,000 180,000 125 45,000Canada 32,500 3,600,000 0 0 70,000 1,000 0 90,000 0 20,000TOTAL 180,509 15,870,000 400,000 195,000 495,000 6,000 5,000 430,000 125 119,000



Eastern U.S. 49,286 5,250,000 0 170,000 0 0 0 130,000 0 54,000Western U.S. 98,723 6,920,000 400,000 25,000 425,000 5,000 5,000 180,000 125 45,000Canada 32,500 3,600,000 0 0 77,500 1,000 0 90,000 0 20,000TOTAL 180,509 15,770,000 400,000 195,000 502,500 6,000 5,000 400,000 125 119,000

may not give proper weight to the fact that supply woes will affect actual shipments ofblack ties—down the road.

Simply said, you can’t ship what you don’t have (no matter the demand level) and that could be becoming more of a problem daily especially for the smaller customers.

With markets remaining strong and lead times being extended, it adds to the longer-term pressures—will there be a 2013-2015 déjà vu moment ahead?

The survey of the short lines (see Table 3), the largest part of what is commonly referred to as the commercial markets, offers a little, if incomplete, assistance. The same roads that show a projected 2.4 million tie demand for 2018 said they installed 2.0 million in 2017. That certainly reinforces the robust market reports.

But, with demand for pallet material driv-ing prices to near all-time highs and other markets such as flooring and crane mats

remaining strong, the squeeze is on from the other industrial timber markets and the lower end of the low-grade lumber market.

Not only are 7-inch IG ties tight, pressure is also on 6-inch and reportedly growing. And there really isn’t any place to hide for suppliers. The top end of the grade tie market isn’t keeping pace already, so what do suppliers do? The answer is ship it later—that is, if and when possible.


MARKET OUTLOOK

The Weather ChannelIf the above isn’t enough to think about, have you been watching the Weather Channel lately?

Gordon soaked a number of tie produc-ing states. Florence hit a part of the eastern tie production regions that Gordon missed. Flo’s effects have yet to be fully felt in log procurement as rain continues to march across all these regions.

In addition to the Atlantic, if the Gulf of Mexico storm machine activates further, worry, not just about the coast, but also the inland effects on tie procurement.

Why is this important? Figure 2 illustrates that after August, the two largest procure-ment months for green ties are historically September and October. If that holds true, but Eastern sawmills log decks zero out for

any length of time, it’s going to be a long winter and very tight spring for tie buyers.

And The Biggest Worry For The Hardwood Industry?China. No, not logs to China. With the tariffs and phytosanitary requirements, that’s old news.

The Chinese economy is slowing. Not only is hardwood lumber demand softening for that reason, but also as much as 20-30 percent of the value of U.S. hardwood lumber exported there has been sucked out of that market since spring. With mills now facing proposed 25 percent tariffs effective Oct. 1, what’s next?

Higher-grade lumber is what pays the bills for U.S. hardwood sawmills. Given the sharp declines in hardwood lumber sales volumes and values to China, as well as the potential effects from the impending tariffs, business health and resiliency is at further risk for hardwood sawmills. One recent mill equipment sale came about because the owner was simply fed-up with the entire business model.

U.S. flooring manufacturers are still buying lumber in a few regions, and their business outlook for product demand seems favorable even if their market share in U.S. homes continues to decline. This market sector has absorbed some of the volume pushed back from China. But only some. As these remaining lumber customers'

inventories reach target levels, the interest and ability to purchase lumber displaced by the Chinese marketplace will diminish, if not cease.

One recent conversation with an analyst suggested that not only will some capacity be idled but also some capacity could evaporate. Lenders are rather keen on being paid back. Capital borrowed for capacity and facility upgrades is capital (plus interest) that comes due. If the money isn’t there, then it’s uncertain what may become of less fortunate mills.

Idled or non-existing capacity can’t be tapped for building air-dry tie inventories.

ConclusionThe potential silver lining, and it’s a thin one, is if the world is really flat for tie demand, as the surveys suggest, inventories may stabilize a little sooner. That is not only in doubt, but also doesn’t provide much solace even if true.

ISR and inventories are likely to decrease further. Plus, sawmills seem likely to face further disruption by competing products, log availability, sawmill output capacity and timber acquisition at a price that makes sense. The effects of tropical events, and the weather in general, from September throughout the winter is an unexpected wild card, which if played at an inopportune time for mills, increases the potential turbulence.

Flat does not mean there won’t be waves.

Figure 2

Average Monthly Pattern Of Production

January 8.0% July 8.3%

February 7.5% August 9.3%

March 8.4% September 8.8%

Apr 8.0% October 9.2%

May 8.3% November 7.9%

June 8.65% December 7.6%

100.0%


Koppers generously sponsored the kick-off reception on Monday. Good food and great conversation!

Kevin Hicks begins the morn-ing with coffee and engineer-ing principles. His delivery sparked great questions from the class.

Education Committee Chairman Marshall Allen starts us off right with a safety briefing.

Thomas the Tank Engine offers some wisdom to begin the Tie Grading Seminar. “A train is only as good as its track.”

After enjoying a Koppers Inc.-sponsored reception on Monday, attendees get down to business on Tuesday. Union Pacific’s Kevin Hicks joined us this year to present an introduction to railroad engineering principles. Then it’s into the nitty gritty of wood species identification with Dr. Terry Conners of the University of Kentucky.DAY 1

TIE GRADING SEMINAR

Terry Conners begins the basics of wood ID, condensing his usual semester-long class into a few hours.

Instructors, loupes, and knives all make wood identification a little easier. Rufus Fontenot of Stella-Jones takes a closer look at Douglas Fir.

Norfolk Southern’s Kevin Conn cuts into a block to look more closely at species characteristics.

Stella-Jones’ Jeffrey Benson dis-covers that red oak is porous. Dipped in bubble solution, it adds a bit of fun to the steep learning curve.

The Railway Tie Association’s (RTA) Annual Tie Grading Seminar took students, instructors and RTA representatives to the Koppers Inc. plant in Galesburg, Ill. The

seminar, a three-day hands-on experience is designed to teach students engineering principles, wood identification and anatomy, defects, inspecting, fungi, drying, procurement and more as the concepts relate to wood ties.

Seminar instructors taught students how to spot defects that could limit tie life and also addressed manufacturing plant hygiene. “Students learned wood treatment practices and how a wood preservation facility works,” said RTA Education Committee Chairman Marshall L. Allen. “We very much appreciate that so many from the Koppers team were on hand to share their knowledge with our students.”

Enjoy the next few pages of photos and captions explaining the ins and outs of the

2018 Tie Grading Seminar. If you haven’t joined RTA for one before, make plans now to attend next year’s seminar.

Top-Notch Tie Grading Students Raise The Bar In Illinois

Watch RTA.org for more information as it becomes available on next year's Tie Grading Seminar.

Covey Communications Corp., publisher of Crossties magazine, joins with Railway Tie Association members in a biennial celebration of 100 years of service to the North American railroad community with the cost-effective and environmentally sound use of treated wood crossties.

As RTA enters its next century continuing its mission to improve the life-cycle performance of the treated wood crosstie, while enhancing its members' potential for market penetration and business opportunities, let us be the first to offer congratulations now and best wishes for the next 100 years.

Keep up the great work providing valuable, independent resources for market statistics, research and product development pathways, plus educational events that help connect the vast network of treated wood tie producers, their customers and their suppliers.

Congratulations from Covey Communications Corp., your friends, associates and partners in publishing RTA's Crossties magazine since 1992.

CROSSTIES CONGRATULATES RTA ON A 100-YEAR MILESTONE

RTA.org • [email protected] 770-460-5553


Species ID gets a wrap-up and then it’s on to Defects 101 with Stella-Jones’ Robert Pearce. Students get a look at cut tie ends and take a tie grading test. Then, it’s off to the Koppers’ Galesburg plant for some hands-on with full-sized ties.DAY 2

After a full day of classroom work, attendees enjoy a reception spon-sored by Brewco’s Mike Goldston, pictured here with UP’s Nate Irby and Stella-Jones’ Kenny Dailey.

RTA President Tim Ries of Koppers Inc. enjoys the reception with Norfolk Southern’s Kevin Conn and Koppers’ Mary Kay Walker and Joe Rosenberg.

Robert Pearce (L) helps students understand what defects look like. Marshall Allen (R) is on hand for discussion.

Students concentrate on species and defects as they consider the ties at the plant. Terry Conners discusses a split tie with Koppers’ Neal Galford.

Norfolk Southern’s Courtney Watts smiles as she discovers the species and decides if this tie is grade, IG, or cull.

Eric Baughman of Stella-Jones is the winner of the first of three Amazon gift cards. He was first to correctly identify the species of the full-sized tie in the classroom breaking a three-way tie between Eric, Stella Jones’ Jeffrey Benson, and voestalpine Nortrak’s Shawn Bryant.

Instructors are on hand to help with species ID and defects in this practice test. Here, Nate Irby helps Eric Baughman of Stella-Jones and Clay Skinner of Koppers with a question.

TIE GRADING SEMINAR


TIE GRADING SEMINAR

Students get right down to species ID with the Big Block test and a chance at another Amazon gift card. A treating demonstration follows a discussion about insects, fungi, and air-drying. Then it’s off to Galesburg to tour the plant and the final Tie Grading Derby.DAY 3

Robert Pearce, right, discusses tie characteris-tics with Stella Jones’ Jeffrey Benson and Rufus Fontenot, and CP’s Wade Ostrander.

Lightning & thunder drove the class inside for the answers to the practice tie grading derby.

Cheryl Ponticello of Applied Testing & Geosicences, a new RTA member, considers species in the Big Block test.

Terry Conners uses his magical mystical pickle juice…

…to demonstrate the pressure treating process.

CP’s Wade Ostrander, UK’s Chad Niman, and Applied Testing and Geoscience’s Craig Joss watch the grading process from the booth at the plant.

Greg Voysey of Koppers Ashcroft wins the practice test. Bragging rights only for this win!

Norfolk Southern’s Sean Woody is the Big Block winner and gets the second Amazon gift card.

UK’s Jim Ringe gets into the basics of air-dry-ing and how insects and fungi can complicate the process of producing a railroad tie.


Special thanks are in order for the TIE GRADING INSTRUCTORS AND OTHER REPRESENTATIVES: Marshall Allen, Terry Conners, Kevin Hicks, Nate Irby, Robert Pearce, Jim Ringe, Tim Ries, Ted Woerle and Barbara Stacey.

RTA TIE GRADING STUDENTS INCLUDE Johnny Allison, Karl Born, Milford Bryant,

Michael Embry, Neal Galford, Caleb Hutcheson, Joe Rosenberg, Marcus Sandman, Mark Siemsglusz, Clay Skinner, Bryan Stout, Jim Thompson, and Mary Kay Walker of Koppers Inc.; Eric Baughman, Jeffrey Benson, Quincy Borderlon, Doug Bryant, Robert Chapman, Craig Cook, Rufus Fontenot, Kendall Greer, Shaun Hollander, William Sensabaugh, Ronnie Travis, and Brad Vaught of Stella Jones

Corp.; Shawn Bryant, Brantley McClendon and Richard Payne of voestalpine Nortrak; Craig Joss and Cheryl Ponticello of Applied Testing & Geosciences; Chad Niman of University of Kentucky; Wade Ostrander of Canadian Pacific Railway; John Swearengin of Dudley Hardwoods; Greg Voysey of Koppers Ashcroft Inc.; and Courtney Watts and Sean Woody of Norfolk Southern.

A unique and effective way to display the ties for the Tie Grading Derby is to put them on rails. It’s usually the other way around!

The Tie Grading Derby winner is Johnny Allison of Koppers with the highest score in memory.

A few more examples of ties before the test begins. Nate Irby goes over what we’ve learned so far with Stella-Jones’ Quincy Borderlon and Robert Chapman.

Plant Manager Jim Evans leads the class on a plant tour.

TIE GRADING SEMINAR

Hats Off To The Tie Grading Crew!


SAWMILL FOCUS

Hardwood Federation Fly-In Focuses On Trade, Farm Bill

ach September, industry leaders visit our nation’s capital to join in our ef-forts on behalf of hardwood businesses

across the country during the Hardwood Federation’s annual Fly-In to Washington, D.C. This year, industry leaders showed up in record numbers. This year, 83 hardwood representatives attended a record 123 meet-ings with members of Congress and staff, as well as important administration meetings.

As in years past, the Hardwood Federation PAC sponsored social events for Republicans and Democrats during the Fly-in, with 35 Republican members attend-ing our Wednesday evening reception. The next morning, 17 Democrats joined us for breakfast. These numbers, and the effort by members of Congress to attend the events, continue to prove that Hardwood Federation and the HFPAC maintain a solid reputation and significant clout on Capitol Hill. These events also provide us with an outstanding opportunity to reconnect with friends on the Hill and establish new relationships.

This year’s Fly-In was all about trade and the Farm Bill. Whereas we have covered as many as five issues in past years, in 2018, it was really about highlighting these two.

TradeOur message on trade was simple: Trade is having a devastating impact on hardwood sawmills, and we asked that the Trump Ad-ministration return to the negotiating table as soon as possible. The hardwood industry relies on export markets for its survival. In 2017, U.S. hardwood producers shipped $4.04 billion worth of U.S. products to glob-al markets; $2.09 billion to Greater China. China, the NAFTA countries and the E.U. make up 82 percent of hardwood exports. In 2017, the United States had a trade surplus of $1.475 billion in hardwood lumber, up from $1.1 billion in 2015.

During the Fly-In, it was stated that the proposed 10-25 percent retaliatory tariffs by China on U.S. hardwood exports was already

having a negative impact on U.S. hardwood companies, workers and consumers and would cause long-term damage to interna-tional markets. Following the Fly-In, China and the United States both dialed back a bit on tariff levels and announced 5-10 percent tariffs on the flow of exports between the two countries, at least until the end of the year. However, there remains the threat of higher, mutual tariffs in 2019. We will be closely watching to see how markets respond to a more certain trading terms.

Farm BillThe Farm Bill is an equally complicated is-sue. The Hardwood Federation advocated for re-authorization of the Farm Bill by Sept. 30 and advocated for the following Farm Bill programs:• Full funding for the Market Access

Program (MAP) and Foreign Market Development (FMD) program in the 2018 Farm Bill;

• New categorical exclusions from NEPA in the House bill that will facilitate federal forest management; and

• Timber Innovation Act provisions in the Farm Bill to develop new markets for wood products using Cross Laminated Timber.

Unfortunately, the Farm Bill was not final-ized by the September deadline, but we will continue to push Congress to pass a final bill by the end of the year in order to continue important forestry related programs.

For information on participating in Fly-in 2019, contact the Hardwood Federation at (202) 463-2705.

Dana Lee Cole

Dana Lee Cole, [email protected], is executive director of the Hardwood Federation, which serves as the voice of 28 associations dedicated to promoting and supporting the hardwood industry.

E

WOOD CROSSTIE PROCUREMENT TRENDS

Railway Tie Associaon (RTA) Procurement Trends Dashboard below represents the monthly opinions of "in-the field" woode buyers who procure untreated crosses from sawmills in their specific regions. The data is submi�ed to RTA within thefirst two weeks of the month following the reporng period covered. The output is in two forms - monthly and a 12-monthrunning view (which started in July 2016). You can choose individual regions or grouped regions from the dropdown menusabove for both the monthly and trend data. All the charts on the page will change based on your dropdown selecons.

Since the informaon provided represents a snapshot-in-me-opinion of individuals, each working for a variety of eprocurement companies, RTA does not warrant nor accept responsibility for the accuracy of the data generated. Forquesons or feedback please email us (mailto:[email protected]). ® 2016 Railway Tie Associaon.

1. Compared to last month, the quanty of logs on hand at mill yards is:

Empty

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6. What is your current view of overall hardwood sawmill producon?

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9.Regarding your above answer, please provide context for market, weather or other condions.

North & South Carolina: Lumber prices have finally peaked and crosse prices are looking be�er because of this

Arkansas, Louisiana, Mississippi, W Tennessee: In our region log inventories are being reduced due to very unusualexcessive rainfall in the area in August. Weather trends will play a major role determining log inventories for the winter,because of rainfall received in August.

West Virginia: Most mills sll don't have the log decks that they would like to have.

Virginia: Sll having plenty of rain which is causing some delays on ge�ng logs out. Tie producon seems to be picking upsomewhat but is sll way below normal for this me of year.

Minnesota, Iowa, Wisconsin, Michigan, N Indiana, N Illinois: With the slow down on 1C&Btr Red Oak Lumber, we have seensome mills start to focus on sawing more es. Some new Amish mills starng up.

Pennsylvania: Sll ge�ng too much rain. Low grade lumber demand remains strong.

New England 1: Some areas sll ge�ng heavy rains. Overall be�er log inventories at mills. Red Oak upper grade lumberfalling off on price and demand somewhat.

E Texas, NW Louisiana: The mills have logs it's finaly dried up and hardwood logs have been moving every well .

Kentucky, Tennessee: Demand from the export for #2 and #3 red oak lumber has so�ened. Also seeing demand so�en forhickory lumber. Mills ae begin to shi� producon away from lumber and cu�ng industrial products. If we have a dry wintercrosse producon should increase.

The gauges below represent "snapshot in time" opinions of in-the-field wood tie buyers who procure untreated crossties from sawmills in their regions. RTA does not warrant nor accept responsibility for the accuracy of the data generated. See more on rtastats.org.

Hardwood Procurement Trends Eastern Half U.S. – August 2018

Crosstie Competitiveness vs. Other Hardwood Products

Current.... Previous Issue

Current Demand For Lumber (#2 and #3)

Current Demand For Export

Quantity Of Logs On Hand At Mill Yards

Current Demand For Pallet Lumber

Current Demand For Paper (Chips)

Current Demand For Board/Mat Timbers

Log Availability


800.237.6880www.brewcoinc.com

MADE INAMERICA

HEADQUARTERS

607 Front St. • Central City, KY 42330

From left to right:Richard Piper, Welder/Fabricator for 25 years

Rick Moore, Welder/Fabricator for 32 years

Rick “Killer” Yeomans, Hydraulic Specialist for 34 years, 20 in the US Army

David Piper, Equipment Designer and Sawmiller, 50 years

David “Dave” Broussard, PLC Automation Specialist, 25 years

WEDNESDAY, OCT. 24Following RTA’s Wednesday General Business Session and welcome from RTA President Tim Ries of Koppers Inc., Federal

Railroad Administrator (FRA) Ronald Batory will provide the Keynote Address, opening the conference’s presentations and panel discussions. Batory was confirmed

as FRA Administrator in February and has more than 45 years of rail industry experi-ence, most recently serving as president and COO of Conrail. He retired from Conrail last year.

ECONOMIC IMPACT SESSIONPreceding the Economic Impact Session is railroad consultant Tony Hatch of ABH Consulting. Hatch will provide an analy-sis of the rail industry’s financial health. Hatch is a veteran analyst and financial consultant with decades of experience. A panel of experts has been seated to pro-vide more insight, including Chuck Baker, executive director for the National Railroad Construction and Maintenance Association; Brent McClendon, president and CEO for the National Wooden Pallet and Container Association, with 24 years in the forest products industry; and Nicole Brewin, vice

president of government affairs for the Railway Supply Institute.

CONFERENCESHOWCASE

RTA Presenters Share Experience, Insight With Attendees

Batory

Baker

BrewinMcClendon

Hatch

RTA has convened an outstanding lineup of presenters for the 100th Annual RTA Technical Conference & Symposium. Experts will address a variety of topics ranging from economics and procurement to engineering, research and development, and environmental issues. For detailed biographies, please log onto RTA’s conference app at www.eventmobi.com/rta2018.


CONFERENCESHOWCASE

Cole

Jonathan Mackay Investment Strategist

Career Jonathan Mackay joined Schroders in 2016 as an Investment Strategist working in partnership with Hartford Funds to represent our strategies to financial advisors and intermediaries in the Northeast region.

Jonathan joins us from Morgan Stanley where he was a Senior Market Strategist, providing advice to the firm’s sales force and clients on a variety of investing topics. Jon was also responsible for authoring various in-depth reports and contributing to weekly and monthly investment publications. He traveled frequently throughout the Americas on behalf of the firm’s Global Investment Committee meeting with high net worth individuals and middle market institutions and their Financial Advisors.

Before joining Morgan Stanley, Jon held a number of different roles at Citigroup Smith Barney. He was a Fixed Income Strategist responsible for commentary on the credit markets. Prior to this he was a credit desk analyst working on trade ideas for the High Yield, Emerging Markets and Investment Grade corporate bond desks.

Jon began his career as an analyst at Emerging Markets Securities LLC where he worked on the creation of Structured Trade Credit transactions.

Education Bachelor’s degree in Medical Anthropology, Brown University

Associations & licensing FINRA Series 7, 24 and 63

Mackay

Kessler

Hodson

Fronczak

Douthit

Fisscher

Matthew Hammond Assistant Vice President Chief Engineer, System Maintenance and Planning—Engineering

Matt Hammond was named assistant vice president and chief engineer, System Maintenance and Planning, for BNSF’s Engineering organization in August 2018. In this role, Matt leads the team that is responsible for the planning and proactive maintenance of BNSF’s more than 32,500 route miles of track. Matt joined BNSF in 2005 as a gang trackman in North Dakota and served in several Engineering roles before taking his first supervisory position in 2007 as assistant roadmaster in Gillette, Wyo. Matt was then promoted to a roadmaster position in Tacoma, Wash., and then Lincoln, Neb., prior to being promoted in 2011 to division engineer for BNSF’s Northwest Division, where he oversaw Engineering responsibilities for BNSF in Washington, and Oregon. In 2013, Matt was promoted to general director of line maintenance for BNSF’s Montana Division before moving to Texas in 2016 to serve in his most recent position as general director of line maintenance on BNSF’s Red River Division, which covers all of Texas and portions of Louisiana and Oklahoma. Education Bachelor of Aeronautical Science, University of North Dakota

Personal Matt and his wife, Nicole, reside in Fort Worth, Texas. They have two children, Reagan and Piper.

BNSF BNSF Railway is one of North America’s leading freight transportation companies operating on 32,500 route miles of track in 28 states, and also operates in three Canadian provinces. BNSF is one of the top transporters of consumer goods, grain and agricultural products, low-sulfur coal, and industrial goods such as petroleum, chemicals, housing materials, food and beverages. BNSF’s shipments help feed, clothe, supply, and power American homes and businesses every day. BNSF and its employees have developed one of the most technologically advanced, and efficient railroads in the industry. We work continuously to

BNSF Headquarters BNSF Railway Company 2650 Lou Menk Dr. 2nd Floor P.O. Box 961057 Fort Worth, TX 76161-0057 Phone: 800-795-2673 www.bnsf.com

9/21/2018

Hammond

Lloyd

SingelynHicks

Chambers

Storm

Thomas

Blaise

Irby

Carson

Jones

LUNCHEON KEYNOTEJonathan Mackay, investment strategies for Schroders, will make a presentation during RTA's Working Luncheon. Mackay will address the State of the U.S. and Global Economies. Mackay works in partnership with Hartford Funds to represent Schroders' strategies to financial advisors and interme-diaries in the Northeast region.

CLASS 1 ENGINEERING & ENVIRONMENTAL FORUMThe Class 1 Engineering & Environmental Forum will open with a presentation from James Kessler, senior vice president of North Carolina Railroad Company and pres-ident of the American Railway Engineering and Maintenance-of-Way Association. Kessler has 45 years of experience in the planning, design and construction of rail-road and rail transit projects. Panelists will feature the expertise of Kevin Hicks, AVP engineering - design for Union Pacific; Matt Hammond, assistant vice president chief engineer, system maintenance and planning – engineering; Tod Echler, chief engineer of design and construction for CSX Transportation; and Michael Singelyn, senior manager engineering for Canadian National.

THURSDAY, OCT. 25RESEARCH SESSIONOn Thursday, the RTA Conference will continue with the Research Session, fea-turing Maureen Hodson of EHS Support, with more than 14 years of experience in the environmental field and seven years as an environmental attorney; the Creosote Council’s Patrick Stark, who will report on the council’s Worker Exposure Study; Jeff Lloyd, senior vice president innovation and sustainability for Nisus Corp.; and Tony Chambers, president of ABC Tie Tech International LLC, with more than 40 years working in the treated wood tie industry.

AAR UPDATE & BIOCHAR TECHNOLOGIES FOR TIESNext on the agenda is the AAR Update & Biochar Technologies for Ties session. Participants are Bob Fronczak, assistant vice president environment and hazardous materials for the Association of American Railroads; Charles Hegberg, biochar consul-tant and mid-Atlantic manager and senior environmental consultant for Skelly and Loy Inc.; Mike McGolden, founder of Coaltec Energy; and Henry Brandhorst, managing director of CHZ Technologies LLC.

RAILROAD PURCHASING FORUMThe final session of the 2018 RTA Conference will be the Railroad Purchasing Forum, moderated by Kristine Storm, vice president of purchasing for Genesee & Wyoming and member of RTA’s Executive Committee. Purchasing executives on the panel include Cory Thomas of BNSF Railway; Nate Irby of Union Pacific; Erin Carson of CSX; Bill Blaise of Kansas City Southern; Hamza Founane of Canadian National; and Wade Ostrander of Canadian Pacific.

PROCUREMENT SESSIONThe Procurement Session will follow a brief break and be moderated by Dana Lee Cole, executive director of the Hardwood Federation since 2012. The federation rep-resents trade associations engaged in manu-facturing, wholesaling or distribution of North American hardwood lumber, veneer, plywood, flooring and related products. Procurement Session presenters will be Philip Fischer of Maley & Wertz Hardwood Lumber, who conducts kiln-dried lum-ber sales and serves as manager of export sales; Larry Jones, president of IndusTree Companies and RTA recipient of the Silver Saw Award for 2014; Derek Douthit of Douthit Lumber and this year’s recipient of RTA’s Silver Saw Award; and Paul Gaines, second generation co-owner and vice president of operations for Madison County Wood Products in Fredericktown, Mo.


CONFERENCESHOWCASE

From Spokane, Wash., and Superior, Wis., to Minneapolis, Minn., and Fort Worth, Texas, John Bosshart has trekked across the country during his time in the industry—and all for the same company.

This year’s Branding Hammer Award recipient spent the last 40 years working for Burlington Northern Santa Fe Railway (BNSF). During that time, he served in various positions—director of track standards and procedures, inspecting products and plants, and even building track. In fact, one of his first jobs at BNSF was in Minnesota and Wisconsin doing construction

and building tracks and turn outs. “That was a very good foundation for me,” Bosshart said. “I was fortunate to be working for good people, and they taught me a lot.”

Bosshart hadn’t planned to spend his entire career in the industry. Prior to joining BNSF, he had never even worked in the railroad industry. Growing up at the base of Mount Rainier in Washington, he spent his summers and holidays logging for a local paper company. “Many people in the small town where I lived were in the logging industry or something related to it,” he said. “So, that work was a natural fit for me.”

After graduating from the University of Washington with a degree in civil engineering, Bosshart happened to get a job offer from the former Burlington Northern Railroad. “That started my long career in the railroad industry,” he said. “It was never hard for me to want to stay in the industry once I started. I quickly saw that a great career could be enjoyed within the railroad industry.”

His career with the railroad took him to life in six different cities, and it led him to the Railway Tie Association (RTA). “I first

started attending RTA meetings in the late 1980s,” he said. “The great thing about the RTA is that it brings together end users and the people who make, treat and ship the products.”

Though Bosshart has now retired from BNSF—and moved back home to the state of Washington—he continues to stay busy, occasionally doing consulting work and participating on committees. He’s particularly involved in working with Habitat for Humanity. Bosshart got involved with the organization decades ago, and he said it has become a serious passion. “In the small community I grew up in, I was always grateful for the people who did volunteer work in our town,” he said. “So, for me, supporting Habitat for Humanity has been a way of giving back.”

While he’s now taking time to pursue other hobbies and interests—he and his wife, Colleen, just finished building a house for themselves and he’s enjoying downhill skiing—he’s still focused on spending much of his time doing what he can to help others through Habitat for Humanity. “Working with Habitat isn’t just rewarding, it’s also fun for me,” he said. “It really means a lot to me to help people be homeowners who otherwise might not be able to own a home.”

For Derek Douthit, the railroad industry has always been a part of life. When Derek was a kid his father, David, worked for a railroad tie company. Then, when Derek was in his early teens, his father and a business partner bought a one-man sawmill where they did work on the side. Derek would help out as much as

possible after school in the afternoons and on the weekends. “As a kid I was always fascinated by how it all worked.”

In 2003, Derek and his father made the decision to go out on their own. That’s when they formed Douthit Tie and Lumber. “As soon as I was old enough to work, I got into this business,” Douthit said. “I couldn’t see myself doing anything else for a career.”

Douthit Tie and Lumber is based in Camden, Ark. Today, the Douthits operate two hardwood sawmills manufacturing products such as wood ties, pallet cants and graded hardwood lumber.

The company also has a facility to build and produce pipe crating for pipe companies, as well as its own trucking company. “We can ship our own products, and our lumber goes everywhere,” said Douthit, who serves as the company’s vice president and oversees operations.

The company produces approximately 3,400 ties per week. Douthit attributes much of the company’s success and ability to produce so many quality products to its employees. “We are a very family-oriented company,” he said. “We rely on God first, then family and then our job. We take that mentality with all of our employees. We are successful because of our employees, and we never forget that."

Douthit has been named this year’s Silver Saw Award winner and gives most of the credit for the recognition to those who work alongside him at Douthit Tie and Lumber every day. “It’s an incredible honor to receive the Silver Saw Award,” he said. “Everyone here puts in the hard work to achieve the success that we have. I’m extremely honored to be recognized with the

Silver Saw Award.”

Profiles By Paige Townley

Branding Hammer Award Winner Loves to Give Back

It’s All About Family For Silver Saw Award Winner


CONFERENCESHOWCASE

John McGinley—this year’s Broad Axe Award recipient—has served as president and chief operating officer for AmeriTies Holdings LLC since 2005, yet his career has taken him all through the ranks of the rail-road industry.

McGinley first started out in the industry after graduating from Penn State University with a degree in forestry. From there, he went on to get a master’s degree at the University of Pittsburgh, and before gradu-ation had been hired by Consolidated Rail Corporation (Conrail). “I had the opportu-

nity to travel throughout the entire eastern part of the United States while at Conrail and learned a lot about the wood treating industry.”

While still at Conrail, he also worked in the purchasing department for a couple of years. Then, when he left Conrail, he went to work for Perma Treat Corp, a crosstie manufacturer in Connecticut, where he worked in production and manufacturing.

After nine years, he was presented with another opportunity: a job at Kerr-McGee. “They recruited me, and I saw that move as an opportunity to grow in my career,” McGinley explained. “At that time, Kerr-McGee had multiple treating plants and was the second largest supplier of crossties in the industry.”

When Kerr-McGee eventually ceased its railroad tie operations to focus on oil and gas, McGinley, along with a few others, saw an opportunity to start a new company and purchase Kerr-McGee’s crosstie processing equipment at the Union Pacific plant in The

Dalles, Oregon. After those negotiations, McGinley and the other owners founded AmeriTies Holdings LLC, a company focused on providing treating services to the Union Pacific Railroad at that plant for materials and crossties, switch ties, and fab-rication of bridge timbers.

AmeriTies built a second plant—in Hope, Ark.—and today employs approximately 110 people, with McGinley at the helm as president and COO. McGinley has spent his entire career in the railroad industry, and it’s a decision that he’s thoroughly enjoyed. “Many smart folks have dedicated them-selves to our industry and are producing products that will serve for many years to come."

Part of what helps the industry continue improving is involvement in the Railway Tie Association (RTA), McGinley said, add-ing that he has long appreciated the work of the association and even served on its Executive Committee and as president in the early 1990s. “It’s so important for our indus-try to have a vehicle like the RTA to con-tinue developing processes and procedures for the betterment of our products,” he said.

Many people don’t get second chances at life. But, when Bill Moss did, he took full advantage.

Years before joining the railroad industry, Moss worked as an ironworker, setting steel on various skyscrapers and other projects. He had worked on projects in Chicago and New York, and one day was working on a bridge in St. Charles, Mo., when the unthinkable happened. “It was a bridge out across the St. Charles River, and one

Saturday afternoon when I was working, I fell about 40 feet, and it almost killed me,” Moss said. “It was the worst day of my life. I had a 50/50 chance of survival, but I lived.”

After recovering, Moss met someone in the railroad supply industry who convinced him to take a chance on making a career change. “Gordon Matlock had a patent pending on the end plate,” Moss explained. “I decided to go into business with him.” For seven years Moss worked with Matlock on the end plate before the company was sold to Robbins Engineering. After a few years, Moss left Robbins Engineering and worked in wood treating before returning to the end plate business soon after. “We had a great product,” Moss said. “It wasn’t very long, and Dan Moss and I joined MiTek USA. That was one of the best things that ever happened to me.”

It was then that Moss became a sales rep for MiTek. “It was wonderful working for MiTek,” Moss added. “MiTek is the

company I always hoped to end up working with, and I’m so glad I did.”

MiTek took Moss all over the country—into eight provinces of Canada and even into Mexico—one part of his job he thoroughly enjoyed. Another part of the job he enjoyed was the friendships. “One of my favorite parts of my job was that I got to meet and get to know so many people,” he said. “To me, it’s friends first and then business. I was given the chance to make many new friendships, and they could trust me.”

As a supplier, Moss found it important to be a part of the Railway Tie Association (RTA), even serving as one of the earliest suppliers on the RTA Executive Board. “To me it was so important to be involved with RTA, because that’s a great avenue to contact customers and share products,” Moss said. “The product I sold was used almost exclusively by the railroad industry, so it was great having the opportunity to get in front of other RTA members to share information and get their opinions.”

Broad Axe Winner Spends Career In The Wood Tie Industry

Supplier Award Winner Appreciates Friendships


CONFERENCESHOWCASE

he Railway Tie Association awarded three John Mabry Forestry Scholarships

to deserving college students: Daniel Eaton, an undergraduate student at University of Kentucky; Ethan Harris, who is attend-ing Oregon State University; and Savolia Spottswood, who is a student at West Virginia University.

Daniel EatonWith a 3.98 grade point average in forestry, Daniel Eaton has earned numerous academic honors. He has been named to the Deans List and is a University of Kentucky Patterson Scholar, National Merit Scholar and Eagle Scout.

It was on a canoeing trip with his Boy Scout troop in the Minnesota Boundary Waters when Eaton realized he was meant to work in the outdoors and was driven to protect America’s forests. He was 17 on that trip.

“When I arrived at University of Kentucky as a freshman, I had very little idea what forestry actually was, but I chose to major in it anyway. Over my three years as a forestry major, I have a much firmer grasp on what forestry is and how it is that we go about protecting forests. My perspective on what ‘protecting a forest’ means has changed quite a bit over these three years.

Eaton is a double major in Natural Resources and Environmental Science, a program that has given him a broader perspective on the natural resources issues that face the world.

Eaton has participated in two research projects at UK, one that involved tree-ring research and another analyzing reforestation on abandoned strip mines in eastern Kentucky.

Eaton said he has learned the importance of forests having an economic value. “Before coming to UK, I saw wood products industries solely as a threat to forests, but that is rather shallow view. Rather, these industries provide forests with an economic value, persuading society to value forests and protect them, as opposed to turning them into parking lots, subdivisions, etc.,” he said. “My exposure to forest economics has sharpened that drive to protect; I now believe my role in society is to maximize the economic value of forests in an ecologically sustainable manner so that Americans will value their forests as a source of livelihood as well as natural beauty. These are the means by which I am called to protect the forests I was so moved by as a 17-year-old.”

Eaton said his career path involves pursuing an MBA through UK’s one-year program following completion of his bachelor’s degree. “I believe that the business knowledge provided by the MBA coupled with the technical knowledge from my forestry and NRES degrees will better enable me to contribute to the growth of Kentucky and America’s forest industry.”

Ethan HarrisStudying forest management at Oregon State University, Ethan Harris is also

the owner/manager for E. Harris Timber Consulting, where he is responsible for measuring trees and their attributes for inventory and appraisal purposes as well as budget planning and contract acquisition. He has also performed a variety of duties for J.A. Mantle Consulting in a team leader role. He is a member of the Society of American Foresters, Rocky Mountain Elk Foundation and Umpqua Community College Forestry Club.

Once Harris earns his bachelor’s degree in forest management, he will pursue a master’s degree in business. “I hope that by going this route, I will be prepared for a full management position in a company and/or be better prepared to continue my own business and make something good out of it. I want to be able to manage the forests we have left in the United States in a way that is sustainable yet profitable. This will allow us to have places to recreate and have fun, yet still have a living workplace that can benefit us all. If that means I have to specialize in fir management to make sure our forests will be around for generations to come, I will. By making sure our forests are managed properly, it will cause other businesses to be sustained as well, including the railroad industry all the way down to our homes. Our forests and ecosystems are very important to me as a forester, hunter and citizen of this beautiful country.”

Harris is married to wife Maygen and father two young daughters, Harlow and Coralee.

RTA Awards Forestry Scholarships To 3 Deserving Students By Kristen McIntosh

Eaton Harris Spottswood

T


Savolia SpottswoodMajoring in wood science and technology at West Virginia University in Morgantown, Savolia Spottswood has assisted her professors for projects on several occasions: a teacher’s assistant for dendrology course, where she was responsible for 18 students during pre-walks in the field and for preparing samples for lab the next day; a field research assistant responsible for recording the diameter at breast height of trees; and a research assistant responsible for testing and research sample presentation as well as maintaining lab space organization and cleanliness.

As a senior wood science and technology major with an emphasis on wood processing and a minor in sustainable design, Spottswood said her educational focus is in pursuit of a bio-economy and its full implementation in the United States.

“When I first came to West Virginia University, I enrolled as a forest resource management undergraduate student, not sure what I was going to do with it but intrigued by the forest. By the end of my first year…I realized the application of wood products sparked my interest more than the study of forest management, and since then I’ve been a wood science student.”

Post-graduation, Spottswood said she plans to be involved in the development of sustainable treated wood products for outdoor application. She met Tony Chambers, a member of the Railway Tie Association at the West Virginia University Forestry and Natural Resources Alumni Banquet. Chambers shared information on dual treatment of wood using borate and creosote. “He said the treatment is more environmentally friendly yet just as effective as a creosote-only treatment.”

Spottswood did her own follow-up research on the subject of dual treatment and sparked an interest in finding long-term solutions for wood products treatment. “This is exactly the kind of thing I want to involve myself in. Not only is it related to my field of study, but it also incorporates a bio-based treatment that can be really beneficial for the environment and the economy. Using sustainable practices is exactly where my passion is, and I aspire to see the wood preservative industry more widely adopt a bio-friendly approach.”


XXX2018

T U E S D A Y , O C T O B E R 2 38:30 am RTA Golf Tournament Raptor Bay Golf Club (Air Boat Tour for Attendees during Golf Outing – See Below)3:00-6:00 pm RTA Guest Sponsored Hospitality Suites5:30-7:00 pm RTA President’s Reception

2:45-4:30 pm Class 1 Engineering & Environmental Forum James Kessler, Sr. VP North Carolina RR Co., AREMA President Kevin Hicks, AVP, Union Pacific Matt Hammond, AVP & Chief Engineer-System Maintenance & Planning, BNSF Tod Echler, AVP Engineering, CSX Transportation Michael Singelyn, Sr. Mgr. Engineering, Canadian National (invited) Vendor-mercials: 3 minutes each

6:50-10:50 pm Annual RTA Banquet & Awards Recap A black tie/formal event. Doors open at 6:45 pm, with awards at 7:20 pm

7:45-8:00 am RTA GENERAL BUSINESS SESSION AND WELCOME

8:00-8:30 am Keynote - Ronald Batory, FRA Administrator 8:30-9:00 am Tony Hatch, ABH Consulting 9:00-10:15 am Legislative Importance of Economic Impact Data Chuck Baker, Executive Director, NRC Brent McClendon, NWPCA Nicole Brewin, RSI 10:15-10:45 am Networking and Exhibition Break 10:45–12:00 pm Procurement Session Dana Cole, Moderator, Hardwood Federation Philip Fischer, Maley & Wertz Hardwood Lumber Darrell Beasley, Beasley Forest Products (invited) Larry Jones, IndusTree Companies Derek Douthit, Douthit Lumber Paul Gaines, Madison County Wood Products

12:00-2:45 pm RTA Working Luncheon with Keynote Address, Scholarship Presentations and Mini-Workshop Jonathan Mackay, Schroders, State of the U.S. & Global Economies

SYMPOSIUM & TECHNICAL CONFERENCEOct. 23-25, 2018 | SCHEDULE AT A GLANCE*

T H U R S D A Y , O C T O B E R 2 5

W E D N E S D A Y , O C T O B E R 2 4

W E D N E S D A Y , O C T O B E R 2 4

#RTA100th for 2018 Conference Tweets

7:45-9:15 am Research Session Maureen Hodson, EHS Support Patrick Stark, Creosote Council Worker Exposure Study Jeff Lloyd, Nisus Tony Chambers, ABC Tie Tech International, LLC

9:15-11:00 am AAR Update & Biochar Technologies For Ties Bob Fronczak, AAR Charles Hegberg/Mike McGolden, Biochar Consultant/CoalTec Energy Henry Brandhorst, CHZ Technologies

11:00-12:45 pm Railroad Purchasing Forum Kristine Storm, Genesee & Wyoming (Presenter/Moderator) Cory Thomas, BNSF Nate Irby, Union Pacific Erin Carson, CSX Transportation Bill Blaise, Kansas City Southern Hamza Founane, Canadian National Wade Ostrander, Canadian Pacific

OCTOBER 23, 2018Optional - RTA Golf Tournament – Raptor Bay Golf Club8:30 am - 3:00 pm on October 23, 2018$225 pre-event - $275 at eventEach hole of the Raptor Bay Golf Club was carefully created to blend with the environment, leaving a beautiful course with natural surroundings. Under the guidance of Audubon International, they have developed an ecological design that preserved the most valuable habitats on-site and restored nearly 25 acres of wetlands. With no residential sites on the property, the natural surroundings encourage the appear-ance of protected wild creatures including the American Bald Eagle, Great Blue Herons, Snowy Egrets and even the very shy Whooping Crane. The tournament quality course features wide fairways with one height of cut throughout and five sets of tees to give players of every level a memorable outing.

Optional – Air Boat Tour (Minimum 20 – Maximum 40) 9:45 am - 2:45 pm October 23rd $185 pre-event - $235 at event You’ll experience an adventure aboard our nature-based airboats. You’ll glide through the Lake Trafford in the north-eastern portion of the Everglades. You’ll explore areas only accessible by air boat, while a knowledgeable guide pro-vides a brief narration about the natural and human history of the area. Keep an eye out for gators, native birds, and other swamp creatures. Have your cameras ready for some fantas-tic photo opportunities and guaranteed alligator sightings.

OCTOBER 24, 2018 SOLD OUT Optional Exclusive Glass Blowing Experience $295 pre-event no at-event9:30 am - 4:00 pm (Minimum 6 – maximum 12)

Experience the art of glass in motion with Chihuly trained art-ist, Conrad Williams. A Florida native, he has been creating with glass since 1998. After receiving his BFA from California College of the Arts in glass and sculpture, he settled in the Northwest after completing a yearlong internship with Ben Moore and Dale Chihuly. Shortly after the birth of their first son, Conrad and his wife Erin returned to their hometown, Naples, FL to pursue their creative endeavors.

You will learn the basic steps it takes to make an orna-ment or paperweight. You will be introduced to the tools, equipment and given a brief history of glassblowing. With Conrad’s help, you will shape, cut and blow out your form. You will be able to select from a variety of colors. Lessons include all the materials you need to create your work.

Conrad’s studio will accommodate 6 people at a time, so while one class is creating, the other will be able to enjoy the shopping and dining located in Venetian Village.

Optional - Private Guided Tour of the World Class Naples Botanical Garden followed by Naples Shopping & Lunch on your Own, 9:30 am - 3:00 pm, Cost $125 pre-event - $175 at Event, Light Continental Breakfast at hotel at 8:30am (minimum 20 – maximum 50)Naples Botanical Garden is a world class paradise that com-bines delightful cultivated tropical gardens with beautifully restored natural habitats. A guide will take visitors through seven different gardens.

• The Asian Garden • The Brazillian Garden • The Caribbean Garden • The Children’s Garden • The Florida Garden• The Preserve • The Water Garden

OCTOBER 24, 2018 RTA Banquet Black Tie 100th Conference Celebration 6:45 pm - 10:50 pm on October 24Banquet and President’s Reception EntertainmentVocalist Extraordinaire Jean Frye Sidwell & Acoustic/Pic-colo Bassist, Composer and Producer, Chris Sidwell will perform during the President’s Reception and also during dinner at the Banquet on Thursday evening. Jean is truly a jazz singer’s, jazz singer. Partnered with husband, Chris, she is co-creator & co-owner of Pacific Coast Music, an independent record label. Due to the overwhelming success of her CD’s and Pandora Radio Station, Jean is recognized as an international recording artist. Chris has produced and recorded multiple CD’s under the successful record label that he co-owns with wife, Jean.

Rocky LaPorte – With his unmistakable accent and his hilarious and endearing delivery, Comedian Rocky LaPorte is becoming more well known by the day. His performance on “The Tonight Show with Jay Leno” brought him a standing ovation, and he’s been featured on his own “Comedy Central Presents” special.

Rocky’s opened for the likes of Louie Anderson, Garry Shandling, Drew Carey, Tim Allen, Hootie and the Blowfish and the Righteous Brothers, just to name a few. He’s done an enormous amount of charity work also for St Jude’s for Chil-dren, N.F.L. Charities, Homeless shelters, cancer research and Police and Fire Dept fundraisers. Rocky has won numer-ous awards for his clean corporate-client-friendly humor:• Top 5: Last Comic Standing 2014 – NBC • Winner: Stand Up of the Year Award –

Las Vegas Comedy Festival• Winner: Johnnie Walker National Comedy Search,

Hollywood

OPTIONAL ACTIVITIES FOR ATTENDEES AND SPOUSES/GUESTS. THESE EVENTS REQUIRE ADDITIONAL REGISTRATIONS.The Golf tournament and Air Boat tour are on Tuesday, October 23rd. The Naples Botanical Garden Visit and Limited Glass Blowing Activity are on Wednesday, October 24th (both during the business sessions and luncheon). All of these activities are optional and require additional registrations.

Download the Conference App

with this QR code and at

www.eventmobi.com/rta2018

*Subject To Updates


Tie Statistics& TrendsSEPT-OCT 2018

ties - SHORT TERM TRENDS

In August, YTD tie production was 20.3 percent down from year-ago levels.

August inventories were 24.9 percent below year-ago levels.

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

1 2 3 4 5 6 7 8 9 10 11 12

Crosstie Production - 12 month rolling total (000)

2015

2016

2017

2018

12,000

14,000

16,000

18,000

20,000

22,000

24,000

1 2 3 4 5 6 7 8 9 10 11 12

Crosstie Inventories (000) - 3-month Moving Average

2015

2016

2017

2018

In August, YTD tie production was 20.3 percent down from year-ago levels.

August inventories were 24.9 percent below year-ago levels.

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

1 2 3 4 5 6 7 8 9 10 11 12

Crosstie Production - 12 month rolling total (000)

2015

2016

2017

2018

12,000

14,000

16,000

18,000

20,000

22,000

24,000

1 2 3 4 5 6 7 8 9 10 11 12

Crosstie Inventories (000) - 3-month Moving Average

2015

2016

2017

2018

Crosstie Production - 12 Month Rolling Total (000) Crosstie Inventories (000)

In August, YTD tie production was 20.3 percent down from year-ago levels. August inventories were 24.9 percent below year-ago levels.

30,000

28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000J F M A M J J A S O N D J F M A M J J A S O N D

(In thousands of ties)NOTE: This report is compiled from non-duplicating information furnished by major railroads and supplier companies.Data and analyses are based on reports from RTA members

RTA MEMBER TIE PRODUCTION & INVENTORY

——2015 —2016 —2017 —2018 ——2015 —2016 —2017 —2018

2012 2013 2014 2015 2016 2017 2018

Prod. Inven. Prod. Inven. Prod. Inven. Prod. Inven. Prod. Inven. Prod. Inven. Prod. Inven.

JAN 1,920 17,074 2,061 20,043 1,563 17,987 2,013 16,122 2,226 19,314 1,901 23,141 1,286 17,692

FEB 1,967 16,688 1,701 19,706 1,428 17,931 1,876 16,127 2,166 19,241 1,795 22,108 1,407 17,081

MAR 2,164 17,045 1,725 19,269 1,642 17,105 2,034 16,703 2,502 19,567 1,859 22,184 1,467 16,914

APR 2,031 16,609 1,722 19,072 1,558 16,525 2,190 16,006 2,313 19,381 1,764 21,338 1,347 16,379

MAY 2,275 16,873 1,751 18,074 1,501 16,707 2,122 16,081 2,241 19,238 1,891 20,860 1,522 16,242

JUN 2,279 17,076 1,609 17,978 1,711 15,769 2,212 16,009 2,540 19,277 1,800 20,119 1,544 14,857

JUL 2,127 16,885 1,805 17,579 1,786 15,269 2,396 15,997 2,213 19,286 1,640 19,524 1,409 14,836

AUG 2,536 17,888 1,916 17,024 1,816 15,311 2,507 16,406 2,495 19,635 1,999 19,310 1,695 14,587

SEP 2,088 18,027 1,753 16,809 1,892 15,501 2,542 17,031 2,304 20,275 1,707 18,844

OCT 2,277 18,505 2,073 16,634 2,049 15,605 2,634 17,765 2,159 21,330 1,492 18,588

NOV 1,900 19,022 1,717 16,326 1,671 15,567 2,103 18,196 2,061 20,409 1,391 18,365

DEC 1,701 19,357 1,526 18,267 1,884 15,955 2,269 18,769 1,933 21,976 1,262 18,030


Regional Pricing Trends Graphs are available online at www.rta.org.

• Tie production and inventory is shown in a 12-month moving average format. This results in minimizing monthly devia-tions, more clearly illustrating long-term trends.

• “Green” 4/4 2A Red Oak is sometimes considered a benchmark to compare historical tie price move-ments. This data represents a trend line developed from composite data of from the reporting regions, compiled with permission from the Hardwood Market Report.

• The tie trend price line is only a “trend” line. The graph shows a “composite” number that is a consistent ratio of the high & low prices reported by HMR for all regions. Thus, the line is only representative of trends, not actual pricing.

• I n the real marketplace for hardwood lumber and ties, prices fluctuate often, sometimes significantly. Information presented in these graphs should be considered in that light. For the most current pricing available, reported weekly, we encourage you to sub-scribe to: Hardwood Market Report (901) 767-9126.

Crosstie Production/Inventory/Hardwood Trend Pricing with 4/4 2A RED OAK Pricing*

NOTES: Crosstie Production and Inventory(12 month moving averages)

Mo

nth

ly P

rod

uct

ion

(00

0)

Inve

nto

ry (

000)

4/4

2A

Red

Oak

Tie

Tre

nd

Pri

ce L

ine

ties - RR INVENTORY/DEMAND

ties - LONG TERM TRENDS

$14

$16

$18

$20

$22

$24

$26

$28

$30

$32

$200

$300

$400

$500

$600

$700

$800

Jan-9

5

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6

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7

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8

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9

Jan-0

0

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1

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3

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4

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5

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6

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7

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8

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Jan-1

8

Ties 7

x9 -G

reen T

rend P

rice L

ine

Gree

n Red

Oak 4

/4 2A

Hardwood Ties 7x9 - Green Trend Pricing with Green Red Oak 4/4 2A Pricing

Green Red Oak 4/4 2A

Ties 7x9 - Green Trend

6,000

8,000

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Jan-9

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Inven

tory (

000)

Month

ly Pr

oduc

tion (

000)

Crosstie Production and Inventory (12 month moving averages)

Production InventoryInventoryProduction

“Green” 4/4 2A Red Oak Tie Trend

CLASS 1 RR CONSOLIDATED MONTHLY TIE REPORT US ECONOMIC DATA

Source: BNSF, CN, CP, CSX, NS, UPClass I Inventory Commitments Class I Black Tie Demand Estimate Real US

GDP RateFed Funds

RateBlack Tie Green Tie 6 Month 12 Month

3rd Quarter2017 Total (Avg.) 2,551,872 9,697,260 7,176,667 15,686,667 3.3% 1.15%

4th Quarter 2017 Total (Avg.) 2,587,937 9,721,390 7,427,000 15,744,000 2.6% 1.20%

1st Quarter 2018 Total (Avg.) 2,566,683 9,128,203 7,646,333 15,943,333 2.2% 1.45%

2nd Quarter2018 Total (Avg.) 2,914,291 9,946,370 7,694,667 15,589,333 4.2% 1.74%

July 2018

Eastern Division 619,938 1,533,095 2,554,000 5,108,000

1.91%Western Division 1,334,000 5,200,000 3,650,000 7,300,000

Canadian Division 193,681 1,067,138 1,350,000 3,550,000

Total 2,147,619 7,800,233 7,554,000 15,958,000

August 2018

Eastern Division 609,063 1,834,820 2,554,000 5,108,000

1.91%Western Division 1,300,000 5,000,000 3,650,000 7,300,000

Canadian Division 257,865 1,137,735 900,000 3,550,000

Total 2,166,928 7,972,255 7,104,000 15,958,000

Hardwood Trend Pricing with 4/4 Red Oak Pricing


Trend lines in the four graphs below are 4 quarter moving averages.Trend lines in the four graphs below are 4 quarter moving averages.

Final estimate of the 2nd quarter GDP growth was 4.2%.

Source: Surface Transportation BoardRevenue freight was up by 3.51% in the 2nd quarter versus last quarter,and was up 4.93 percent from year ago levels.

In the third quarter of 2018 short line freight was up by 11.6 percent from year ago (estimate).

Crosstie purchases were up 10.6 percent in the second quarter of 2018 versus last quarter.

12,50013,00013,50014,00014,50015,00015,50016,00016,50017,00017,50018,00018,50019,000

2005

2Q

3Q

4Q

2006

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2007

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Real GDP (billions of chained 2012 dollars)

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Q2

US Class 1 Freight (billions of ton-miles)

0

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2,500,000

2005

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2006

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RailConnect Freight Car Data - Carloads

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(000)

Quarterly Tie Purchases





ties - BUSINESS TRENDS

Used with permissionClass 1 Freight Source: Association of American Railroads

RailConnect Index Source: RMI


Source: Surface Transportation Board. Revenue freight was up by 3.51% in the 2nd quarter versus last quarter, and was up 4.93 percent from year ago levels.

YTD Housing starts are 6.6 percent higher than last year; permits are up 3.8 percent.

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2017

2018


In September, diesel prices have increased by 17.1% from year ago levels.

Normalization of interest rates is in progress as measured by LIBOR (interest rate).In September FOMC meeting 2018, the FED increased the FED funds by 25bp to 2.25%,and signaled one more hike this year.

0

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US Diesel Prices - cents per gallon

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perc

en

t

LIBOR 30 day


Normalization of interest rates is in progress as measured by LIBOR (interest rate). In September FOMC meeting 2018, the FED increased the FED funds by 25bp to 2.25%, and signaled one more hike this year.


Normalization of interest rates is in progress as measured by LIBOR (interest rate).In September FOMC meeting 2018, the FED increased the FED funds by 25bp to 2.25%,and signaled one more hike this year.

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US Diesel Prices - cents per gallon

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perc

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LIBOR 30 day

Trend lines in the four graphs below are 4 quarter moving averages.





12,50013,00013,50014,00014,50015,00015,50016,00016,50017,00017,50018,00018,50019,000

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(000)







12,50013,00013,50014,00014,50015,00015,50016,00016,50017,00017,50018,00018,50019,000

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(000)







12,50013,00013,50014,00014,50015,00015,50016,00016,50017,00017,50018,00018,50019,000

2005

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2007

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2018

2Q


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(000)



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2016

2017

2018

Quarterly Tie Purchases RailConnect Freight Car Data - Carloads

US Diesel Prices - cents per gallon LIBOR 30 Day

US Housing Starts (saar) US Housing Permits (saar)

2015 2016 2017 2018 2015 2016 2017 2018

CHOOSE A TRACK RECORD THOUSANDS OF MILES LONG

TRUST THE ONLY ANTI-SPLIT PLATES PROVEN TO PERFORM SINCE 1970.

MiTek’s Anti-Split Plates are specifically designed for end grain applications, with patent features that ensure penetration at the end of the tie for maximum holding power. Extend the Life of Your Crossties. Contact Shea Zeiser, 1-800-325-8072.

INCLUDED IN AAR CROSSTIE TESTING FOR 45+ YEARS

WORKS WITH ALL CURRENT END PLATE MACHIENS

MEETS OR EXCEEDS RAILROAD SPECIFICATIONS

MITEK® ANTI-SPLIT PLATES

1-800-328-5934 MiTek-US.com

COPYRIGHT © 2018 MITEK INDUSTRIES, INC. ALL RIGHTS RESERVED

CHOOSE A TRACK RECORD THOUSANDS OF MILES LONG

TRUST THE ONLY ANTI-SPLIT PLATES PROVEN TO PERFORM SINCE 1970.

MiTek’s Anti-Split Plates are specifically designed for end grain applications, with patent features that ensure penetration at the end of the tie for maximum holding power. Extend the Life of Your Crossties. Contact Shea Zeiser, 1-800-325-8072.

INCLUDED IN AAR CROSSTIE TESTING FOR 45+ YEARS

WORKS WITH ALL CURRENT END PLATE MACHIENS

MEETS OR EXCEEDS RAILROAD SPECIFICATIONS

MITEK® ANTI-SPLIT PLATES

1-800-328-5934 MiTek-US.com

COPYRIGHT © 2018 MITEK INDUSTRIES, INC. ALL RIGHTS RESERVED

®

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We are

Stronger together.

Crossties & Switch Ties

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Borate Pre-Treatment

Highway Grade Crossings

QNAP Bridge TimbersVisit www.Stella-Jones.com or call

1.800.272.8437

We’re ready to work with you today; across North America and in your backyard.

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