Running Long Trains in Difficult Geographic Environments

Michael Roney General Manager Technical Standards

Agenda

Overview of Canadian Pacific

Operational Challenges of Difficult Geography

Making Long Trains More Productive and Less Destructive

Technologies That Can Help

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Canadian Pacific

Track kms. 26,800 Total employees: 16,097 Annual revenue tonne-km: 195,544 Million

2012 Revenues: $5.2 Billion 2012 Net income: $570 Million 2012 Adj. EPS: $3.34

Global reach through ports of Vancouver, Montreal, Philadelphia

and New York Prime connections to all Class I US railways

Vision: To be the safest, most fluid railway in North America

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Canadian Pacific’s Network

Geographic Challenges

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Extreme curvature and grades

Extreme cold

Extreme heat

Service outages

Heavy Haul Long Trains and Axle Loads Worldwide

Railway Axle Load (tonnes)

Standard Train Length (wagons)

Future standard train length (wagons)/axle loads (tonnes)

USA (coal) 33 135 wagons

Canada 33 129-140 152-170

Australia (Pilbara iron ore)

• BHPBilliton • Rio Tinto • FMG

37 36 40

204 wagons 236 240

333 wagon

South Africa • Iron ore • Coal

30 26

216 wagons 200

332 wagons

Brazil • Vale iron ore

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330 wagons

37 tonnes

China • Daquin

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210 wagons

36 tonnes

Russia 20 30 tonnes

Sweden • LKAB Iron Ore

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68 wagons

Train Design CP’s long train strategy is underway

Train Type 2008 2010 2012

Export coal 124 129 152

Export potash

124 142 170

Merchandise 86 105 115

Intermodal 63 90 105

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CP has taken a scientific approach to maximizing use of distributed power in an extreme geography

Locomotives: - AC locos: high HP, tractive & retarding capabilities - Driving axles = 12 … highest rating in industry - Low HP/T strategy results in high tractive effort on grades … up to 800 kN (180k) & then 930 kN

(210k) with HTE - Inability to mix lower HP into DP configs & unable to use 36 driving axles due to drawbar/knuckle

limits & track fastening limitations … 30 driving axles sub-optimizes haulage … so robotize with 3-loco tonnage

Geography/Track: - Very challenging geography, grades up to 2.4%, curves up to 11-degrees (150m radius) - Locations where heavy unit trains exhibit repetitive run-in/run-out events, which inflict a

cumulative toll on equipment and infrastructure, weakening both … DP designs mitigate forces - Timber sleepers with elastic fastening on curves sharper than 300m radius

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DP placement is both an enabler and neutralizer for the impact of long, heavy trains, operated with AC power on challenging geography with a tight HP/tonne

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CP has used experience, science and technology to safely increase train lengths in difficult geography …

Work with industry leading suppliers such as TTCI, Wabtec, GE and Rail Sciences to ensure best possible technology

CP’s approach progresses from design to simulation, then field testing before train models are approved - This approach, along with proactive regulator communications was key to avoiding

regulatory intervention on train marshaling in Canada - Result is standard bulk models, plus a variety of base designs for intermodal and

manifest trains to suit operational needs from conventional to 4,300m (powered by 5 locomotives in 4 locations)

2 AC locomotives can be run conventional head end but this caps train size and 3 or more AC locomotives need to be distributed

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Long Trains with distributed power benefit all aspects of railway operations

Lower lateral forces

Reduced friction

Enhanced locomotive and labour productivity

Improved safety

Responds to volume variability

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Lower lateral forces

Lateral force distribution with locomotive placement

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Lateral Force Detector Strategy

Initiated in 2007 … 6 sites in operation

Objective was to validate & quantify field results of design changes

AEI match process electronically links train symbol

Multi-year data base, with thousands of train records

“Gold-mine” of data to confidently implement more productive & less destructive trains … invaluable with regulators as well

Science of locomotive placement can preserve track infrastructure

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Long Intermodal Trains Ascending Albert Canyon

Multiple-remote trains are up to 80% longer/heavier, but have lower destructive lateral forces in curves

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Train 110 at Albert Canyon: 14k @ 2-1-1-1-0 vs 7k @ 2-0-1

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Weight Length LR Lat.Force HR Lat.Force

14k vs 7k

What is TrAM (Train Area Marshalling) ?

- Permits distributed power in intermodal & merchandise designs, beyond traditional use in bulks

- Condenses a lot of science and complexity down to simple field application: • “Pre-build” function allows validation of marshalling, by track or by train, prior to any build activities, to reduce

switching and rework

• “TrAM Check” function is used to verify marshalling for enroute trains that perform work … again, proactive verification checks, results in placement instructions to crews to avoid re-work

• Any TrAM Alerts generated must be have restrictions issued to trains and corrective actions required

• CP has not experienced a train accident due to poor train marshalling since implementation of TrAM in 2005.

TrAM automates & simplifies complex marshaling rules that were formerly more restrictive as they needed to apply to all trains generically

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Train marshalling factors reviewed by TrAM

1. Trailing tonnage - Flags cars for which draft forces behind wagon could produce an excessive L/V ratio based on

physical characteristics of track (grade and curvature) - Based on wagon length, wagon type, and gross weight of car or platform - Separate results for each TrAM area - Reason for this check – prevents derailments caused by excessive L/V ratios

2. Draft forces - Calculates maximum draft forces behind each locomotive position in train - Flags those locations in train where maximum allowable draft forces are exceeded (>2AC’s) - Reason for this check – prevents train separations (broken knuckle, broken drawbar) caused by

excessive draft forces, as well as excessive forces on the track structure (lateral forces) 3. Buff forces

- Calculates maximum buff forces ahead of each remote locomotive position in train - Flags those locations in train where maximum allowable buff forces are exceeded (>1AC) - Reason for this check – prevents excessive forces on the track structure and prevents

derailments caused by excessive buff forces acting on very light wagons surrounded by heavier wagons (jackknifing derailments)

4. Remote Zone - Reviews weight of a group of wagons ahead of each remote locomotive position in a mixed train - Size of group of wagons depends on number of remote locomotives at that location - Flags those wagons which do not meet minimum weight requirements for this position in the train - Reason for this check – prevents derailments caused by buff forces acting on very light wagons

immediately ahead of the remote locomotive(s) (jackknifing derailments)

Remote Zone Remote Zone

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Train marshalling factors reviewed by TrAM

5. Cushioned drawbars - Reviews train make-up based on number of wagons with cushioned drawbars in train, and where they are

located in the train relative to wagons without cushioned drawbars - Flags trains for which a speed restriction is required in certain locations with undulating track

characteristics, or which must be remarshalled - Reason for this check – prevents derailments and lading damage due to excessive in-train buff and

draft forces caused by added slack action generated by cars with cushioned drawbars

6. Maximum train length to last remote locomotive - Calculates train length to last remote locomotive, and flags trains which exceed the maximum length - Reason for this check – ensures that in a situation of loss of communication between the controlling

locomotive and the last remote locomotive, a 20 lb brake pipe reduction will cause the remote locomotive to return to idle

7. Dynamic brake - In a train with DP, calculates the maximum allowable dynamic brake that the locomotive engineer may

use to ensure that the additive effect of dynamic brake between sections of the train does not cause the retarding force to exceed 890 kN (200,000 lbs) anywhere in the train

- Reason for this check – prevents excessive forces on the track structure, and excessive buff forces in the train that may lead to derailments

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Train marshalling factors reviewed by TrAM

8. Ascending grade weight zone - Reviews head end of a conventional train and determines if the head end cars on a train meet the

minimum weight requirements for an ascending grade weight zone - Flags conventional trains for which locomotive consist is restricted at certain locations because head end

cars do not meet minimum weight requirements for an ascending grade weight zone - Reason for this check – prevents stringline type derailments in certain areas of ascending grades and

high curvature

9. Maximum locomotive haulage - Calculates locomotive haulage capacity at each location on a DP train - Flags those locations on a train where maximum locomotive haulage is exceeded - Reason for this check – prevents excessive forces on the track structure

10. Long/short car combination - Compares length of each car or platform with adjacent car or platform - Flags locations where the difference in length between cars coupled together exceeds maximum

permitted - Also reviews any short 2-axle scale test cars for correct placement at rear of train - Reason for this check – prevents derailments on curves caused by excessive lateral forces introduced

by a long car/short car combination

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Modular and easily adapts to origin traffic requirements

Long Intermodal Train Strategy

»Long trains are a cornerstone operating strategy for CPR

Smart Railway Technologies enhancing CP’s safety and service reliability with long trains

Equipment and track infrastructure health - Equipment Health Monitoring System

(EHMS) - Technology Driven Train Inspection

(TDTI) - Automated track inspection - Winter gauge restraint track

measurement

Operational Efficiency - Distributed Power (DP) - TrAM 2 - Electronically Controlled Pneumatic

Brakes (ECP) - Trip Optimizer technology - Use of hot and cold wheel detectors in

place of manual brake inspections

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Enhanced locomotive, crew and train slot productivity, as well as fuel consumption

Improved train handling, air flow and brake propagation

Reduced buff and draft forces, lowering risk of train separation or accident

Reduced average and peak forces on infrastructure, lowering risk of geometry loss and reducing maintenance expense

Extending life of rail, ties, ballast and equipment, lowering replacement capital

Creates safer operations

Distributed Power & Proper Long Train Design

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AC power, locotrol, wayside monitoring and TrAM are all integrated components that have unlocked bigger, safer trains with multiple benefits:

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Other Technologies that Improve Long Train Service Reliability

Modernized and standardized motive power Networked wayside detectors with trending Micro-alloyed wheels and rails Preventive rail grinding to conformal wheel/rail profiles Setting train speeds with consistent HP/tonne and running

at 10% underbalanced cant deficiency. Maintain rail friction at < 0.4 Maintain traffic density at no greater than 80% of line

capacity, or 70% in extreme weather conditions. Implement driver advisory systems with intermediate

timing points Run at 10% underbalanced superelevation Automated brake shoe measurement and management

systems. Address optimal weight to tare ratio ahead of axle load

increase. Address rail weld quality, bridges and weak embankment

locations before increasing axle loads.

Running Long Trains in Difficult Geographic Environments

Michael Roney General Manager Technical Standards