A healthy supply industry needs cooperation - Brief Article

Railway Age, August, 2000 by Robert A. Matthews

During my 19 years as president of the Railway Progress Institute, the oldest trade association representing the railway supply industry, I have had the privilege of being part of an atmosphere of close cooperation between the railroads and railway supply industry, often bringing home just how interdependent our industries really are. Under the leadership of Ed Hamberger and Chuck Dettmann at the Association of American Railroads and Frank Turner and Alice Saylor at the American Short Line and Regional Railroad Association, our relationship has never been better.

While it's true that the railroads are the suppliers' customers and, as such, are the reason supply businesses exist, the suppliers also play an integral part in the railroads' survival. Whether it's lobbying on Capitol Hill, lending our voice to rail-related regulatory issues, contributing financially to railroad causes, or working to make the railroads safer and more technologically advanced, the railway supply industry works for and with the railroads for our mutual benefit.

Just a few examples: By working together through avenues like the RPI/AAR Tank Car Safety Research Project, we have significantly reduced incidents and accidents involving the transport of hazardous materials by rail. Through our cooperative efforts in the past 10 to 15 years, we have made railroads the safest in their history. In the spirit of cooperation, we tackled the powerful trucking lobby and helped win a freeze on long-combination vehicles in 1991. Together we have supported passenger rail projects, grade crossing safety, Amtrak, and Operation Lifesaver. Throughout our history, suppliers have stood beside the railroads on numerous legislative issues like competitive access, elimination of the deficit reduction railroad diesel fuel tax, transit funding, and limits on truck sizes and weights.

Taking the railroads' lead, the railway supply industry associations have been working to consolidate their efforts to provide more effective and economic services to their members and to the railroads. In the last year and a half we have seen greater cooperation between RPI, the Railway Supply Association (RSA), Railway Engineering & Maintenance Suppliers Association (REMSA), Railway Systems Suppliers, Inc., (RSSI), Railway Tie Association (RTA), and National Railroad Contractors Association (NRC). In fact, RPI and RSA are holding a joint annual dinner in September.

When asked, the railway supply industry has always been there for the railroads. Whether it's helping fund the activities of the Coalition Against Bigger Trucks (CABT), contributing time and money to Operation Lifesaver, providing grassroots support from supply companies on legislative and regulatory issues, or working with the AAR Technical committees to bring the most advanced, safest equipment to the industry, we have responded, and for good reason: The supply industry needs a healthy railroad industry to prosper.

I am concerned with a recent development that will severely impact our ability to respond as an industry. I am talking about the recent move by the American Railway Engineering and Maintenance of Way Association (AREMA) to take over the annual exhibits of signal and maintenance-of-way suppliers in 2002. Formed in 1997--the result of a merger of three railway engineering support associations and the functions of AAR's Communications and Signal Division--AREMA's goal is to promote the communications and signaling and maintenance-of-way specialties.

But in seeking new revenue, AREMA wants to sponsor trade shows that have been the lifeline for RSSI and REMSA. It doesn't serve our two industries very well

to undermine the survival of these supply industry associations when we are being threatened by frustrated shippers, onerous safety regulations, and an ambitious trucking industry.

I have a difficult time understanding one segment of the rail industry asking suppliers to donate to CABT, while another segment cuts off our ability to do so. I believe the AREMA decision to sponsor equipment exhibits needs to be reviewed. A healthy supply industry is important to the railroads. There are well-organized, well-prepared groups ready to lobby their causes--the trucking industry is an excellent example. And, my friends, if we don't stay together, you can be sure they will eat our lunch when the time comes.

What will benefit the industry most is if we seek more avenues to work together, not against one another for the benefit of one association or business. More cooperation and well-directed motivation are needed. It's time to get back on track.