PTC Update ACACSO May 2011 1 Congress mandated

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PTC Update ACACSO May 2011 1

PTC Update ACACSO May 2011 1

Congress mandated PTC implementation by the end of 2015 n Oct 16, 2008 -

Congress mandated PTC implementation by the end of 2015 n Oct 16, 2008 - Railroad Safety Improvement Act signed into law n July 21, 2009 – FRA Published Notice of Proposed Rule Making (NPRM) n Jan 15, 2010 – FRA Published Final Rule n Apr 16, 2010 - Deadline for Railroads to Submit PTC Implementation Plans to FRA n Dec 31, 2015 - Deadline for PTC Implementation FRA is drafting two new NPRMs to address railroad’s concerns 2

PTC legislation requires specific functionality Prevent overspeed derailments Prevent train to train collisions Protect

PTC legislation requires specific functionality Prevent overspeed derailments Prevent train to train collisions Protect track workers Prevent movement through misaligned switches n PTC gauges upcoming signals, authorities, switches, operating conditions, locomotive position & speed n PTC designed to warn engineer of need for action n If the engineer fails to act, PTC system will engage locomotive brakes and bring train to full stop If railroaders do their jobs correctly, PTC should never engage the brakes 3

PTC is required on the following: n All roads providing or hosting intercity or

PTC is required on the following: n All roads providing or hosting intercity or commuter passenger service n Class I roads — Track with one or more PIH (poisonous inhalant) cars annually and — traffic greater than 5 million gross tons annually n Class II and III roads — Must be equipped: § If there is passenger service on the route § in other special circumstances as described in the regulation The final footprint will be determined by the new FRA rules 4

Regulation requires the submission of three plans n PTC Development Plan — Describes the

Regulation requires the submission of three plans n PTC Development Plan — Describes the PTC technology to be implemented n PTC Implementation Plan — Describes when and where the PTC system will be implemented — How interoperability with class I’s, commuters, and short lines will be achieved n PTC Safety Plan required for PTC System Certification — Describes how the safety of the system will be ensured — Contents include: § § § 5 Railroad Training Plan Operations and Maintenance Manual Configuration and Revision Control Measures Initial Implementation Procedures Post Implementation Testing and Monitoring Procedures

PTC System Overview Track Database Speed Restrictions Work Zones Train Consist Movement Authorities Warning

PTC System Overview Track Database Speed Restrictions Work Zones Train Consist Movement Authorities Warning Curve Initialization Braking Curve Predictive Braking 6 • Speed Restrictions • Switches • Work Zones • Signals

Why is PTC so challenging? 7 n Interoperability n Locomotive fleet age and mix

Why is PTC so challenging? 7 n Interoperability n Locomotive fleet age and mix n Wayside plant age and mix n Equipping switches in un-signaled territories n Scale of changes and increase in workload n Compressed timeline n Unproven technology n Heavy reliance on suppliers n Huge capital requirements

PTC legislation requires industry interoperability Class I Railroads 8 Passenger Railroads n Class Is

PTC legislation requires industry interoperability Class I Railroads 8 Passenger Railroads n Class Is agreed to develop standard platform n PTC must be able to recognize and stop foreign locomotives

Wayside installs must be tailored to existing plant. . . 9

Wayside installs must be tailored to existing plant. . . 9

. . . which varies from location to location. . . 10

. . . which varies from location to location. . . 10

. . . including some very old equipment 11

. . . including some very old equipment 11

PTC technology is still in development n Onboard and office system software is still

PTC technology is still in development n Onboard and office system software is still being delivered to railroad test labs — Final software will not be delivered until Sept 2011 n The 220 MHz radio (required for interoperability) is still being specified — Production radios will not be available until after Jan 2012 n Final wayside interface units have not been received from all suppliers — Wayside installations will start in Q 2 2011 12

Delays in software delivery are compressing an already short cutover schedule 13 13

Delays in software delivery are compressing an already short cutover schedule 13 13

FRA places the cost benefit ratio for PTC at 22: 1 n PTC will

FRA places the cost benefit ratio for PTC at 22: 1 n PTC will prevent a small percentage of train accidents n PTC will not prevent: — Track failure related accidents — Equipment failure related accidents — Grade crossing accidents n 14 “FRA recognizes that the likelihood of business benefits is uncertain and that the cost-to-benefit comparison of this rule, excluding any business benefits, is not favorable” – PTC Regulatory Impact Analysis

PTC is challenging. . . n Interoperability across the United States n Magnitude of

PTC is challenging. . . n Interoperability across the United States n Magnitude of wayside installations n Short timeline with mandatory completion in 2015 n Technology still under development n Huge capital requirements 15

Questions ? 16

Questions ? 16