Prototype News

Turnouts, an essential railroad network trackwork component, have numerous complex, costly and labor-intensive maintenance requirements. They also have specific challenges that railroad maintenance-of-way departments have been dealing with for generations. Addressing them is critical to operating a safe, fluid and efficient network, with minimum maintenance downtime. Among these challenges:

• Switch rods, which traditionally reside in cribs, must be removed for tamping.
• Inadequate switch tamping creates an unstable track surface, leading to switch failure.
• Insulation failures can occur between two bolted steel switch rods.
• Wood headblock crossties can fail to maintain gauge and can break under the switch machine due to timber crosstie decay.
• Concrete headblock crossties can break under a switch machine due to reduced cross-section or overhung load vibrations.

As such, railroads are actively seeking opportunities to increase track stability while reducing costs.

The new Universal HST® Hollow Switch Tie from voestalpine Railway Systems Nortrak is designed specifically to address the unique maintenance and structural needs of a turnout. Pairing the Universal HST® with our Unistar HR Switch Machine creates what we believe is the most advanced and seamless turnout control system in the industry.

The HST® is an advanced switch support system consisting of robust, maintenance-free formed steel crossties, high strength composite “Blue Rods,” and an optional rotary assist back-drive assembly. The crossties are redundantly insulated in all areas, ensuring no single path to shunt is allowed. They allow switch rods to be relocated from cribs into the hollow portion of the crosstie, facilitating continuous mechanized surfacing though the turnout without the requirement of removing and reinstalling switch rods. Use of high-strength composite “Blue Rod” insulated switch rods allow for a single fabricated rod to be utilized, removing the insulation failure point between two bolted steel rods. Switch plates attached to the crosstie with permanent Huck fasteners increase gauge widening resistance through the switch, with resistance exceeding 40,000 pounds. A robust, steel switch machine mounting plate is permanently affixed to the crosstie and can accommodate any switch machine.

Now, this innovative system has been vastly improved with the Universal HST®.

“Previous generations of the HST® required a specific design for each turnout size, hand, and machine position (left or right on the field side),” says R&D Engineering Manager Eric Gray. “In a situation where a switch machine was relocated from one side of track to the other, or a left-hand crosstie was needed in a right-hand turnout, the HST® had to be disassembled, reinsulated and reassembled. The Huck fasteners had to be cut off—quite a process for customers. As an example, some of our customers have been in situations where, during installation, they realize there isn’t enough room for the switch machine, and they need to relocate the machine to the other side of the track. A slight change in the field could previously delay a customer’s schedule by weeks. That’s why we developed this new design, the Universal HST®.”

“The Universal HST® provides greater flexibility to maintainers by being adaptable to dynamic installation and maintenance, offering the flexibility to use one unit for all turnout sizes, hand, and machine position,” notes Gray. “It uses a permanent, electrically isolated shim plate attached to the shell of the formed steel crosstie. Adaptable switch plates dependent on the switch size and/or hand can be bolted directly to the shim plate. To convert from one switch size or hand to another, it’s now as simple as unbolting the existing plate and replacing it with a new switch plate of the desired size or hand. This is why the Universal HST® is much more maintainer friendly, giving railroads the ability to easily stock items and convert from hand or size to another without the need to handle insulation. Everything except the running plates the rails sit on is assembled, insulated, and ready to go. The plates are bolted on and easily removed. All a maintainer needs to do is remove the plates, spin the hollow switch ties around and reinstall the plates. If you ordered plates for a No. 20 turnout and then decided you wanted to use that HST® on a No. 15 turnout, instead of having to purchase an entire system, you only need two new running plates. So now, we have one base unit that will work for any turnout.”

The Universal HST® works seamlessly with voestalpine Railway Systems Nortrak’s Unistar HR Switch Machine. The Unistar HR offers mounting flexibility (gauge or field side, and on tunnel walls), is flood safe, and can withstand temperatures as low as -40°C (-40°F) without heater elements. With integrated end position detection, installation time is just 2.5 hours. It weighs 80% less than competitors’ switch machines and no lift assist is required. It’s non-handed design reduces spare parts requirements. MTTR (mean time to replace) is 25 minutes; MTBF (mean time between failures) is 1.5 million hours.

The Unistar HR features a Single Drive Unit with up to four drive, locking and detection setting levels for switches and MPFs (moveable point frogs)

The Universal HST® “is the ideal foundation for installing a Unistar HR,” says Vice President of Signaling Chris Nordstrom. “Since the Unistar HR is agnostic to the side of the turnout on which it’s installed, it’s a clean, easy process, a clean layout. All the electrical connections and hydraulic lines are protected inside the hollow steel crosstie. We’re getting a lot of positive customer feedback. One installation team told us it took half the amount of time as installing the same machine on a traditional wood crosstie layout, noting that it could be retrofitted into any turnout.”

The Universal HST® and Unistar HR pairing aligns with voestalpine Railway Systems Nortrak’s broader goal of positioning ourselves as a system solution provider. We offer a full range of equipment and services—from fastening products to complete switch panels with integrated monitoring systems. We bring together global expertise and experience while maintaining a strong local presence. Our North American team includes some of the industry’s top experts, and we’re proud to offer Buy America-compliant solutions.

The post Perfect Pairing: voestalpine Railway Systems Nortrak Universal HST® (Hollow Switch Tie) + Unistar HR Switch Machine appeared first on Railway Age.

Union Pacific’s (UP) much-anticipated bid for Norfolk Southern (NS) was announced July 29. Both now embark on a lengthy review process, but we see the potential approval pathway justified due to U.S. supply chain benefits. NS operates well, supporting a pivot in focus to the review process. NS takeout PT moves to $320 in line with the announcement. Reiterate Buy as entry point is attractive while event-based investors remain on the sidelines.

• UP officially announced a bid for NS to create the first E-W transcon Class I as we expected. The Western Class I has agreed to pay $320/share for NS (close to our preprint takeout-based PT of $323) for a total enterprise value of $85 billion with an approximately 72%-28% stock-cash split. Shares of NS traded down on the open despite the announcement, which we believe is due to event-driven investors remaining on the sidelines. Our discussions with this investor group indicates that this is due to the long regulatory timeline (approximately six months to file and another year or so to receive final approval). Additionally, the lack of a voting trust was disappointing for that group as well. Positive developments over the course of the review process could reengage this group in our view.

• UP and NS expressed confidence in navigating the regulatory process with the Surface Transportation Board (STB), but we acknowledge a long process ahead. CEO Vena’s commentary that UP would not have taken the steps without visibility into a path forward is encouraging in our view, though he refrained from comment on the fifth STB appointment. Clarity on growth prospects and competitiveness enabled by a transcon rail supports the political case for a merger in our view. UP expects to file the application in up to six months, which is at the longer-end of the typical timeline; we would not be surprised to see UP come in well before this. While expedited filing would be appreciated by investors, we also note that the STB has recently expressed intent to streamline regulatory procedures. We will continue to monitor developments that could expedite what is usually an approximately 18-month review process. Opposition to the deal is likely from a variety of constituents as many look to receive something for their support. In terms of labor, while they may seek to strike deals, opposition could be mitigated by both Class I’s commitments to either preserve or grow jobs as matters proceed.

• UP and NS highlighted that 1 million carloads interchange between the two networks and a single-line service would slice one to two days off transit time, materially improving service. This represents approximately 6% of the combined carload base for the two Class I’s. More importantly, a unified network would enjoy significant competitive gains. Single line is conducive to OTR conversions in our view as one intermodal train amounts to about 550 trucks and sees a favorable price differential that is only hampered by service consistency. Additionally, UP openly discussed gaining share from Canadian ports as single-line service improves competitiveness into the Midwest.

• Run-rate EBITDA synergy estimates of $2.75 billion (over a three-year period) exceed our conservative assumptions as our view that upside is likely was borne out on the July 29 call. Value creation is weighted toward revenue and service (as we projected in our note here) with $1.75 billion in EBITDA accretion from revenue synergies expected (excluding adjustment from concessions). We estimate this is about 4.5% of the combined revenue base compared to the originally targeted Canadian Pacific-Kansas City Southern figure of about 6%, which we note approximately doubled over the years. We thus acknowledge upside to revenue synergies. Cost synergies are penciled in at $1 billion.

• The $320/share takeout price and $85 billion EV implies approximately 9.5x ’26E EV/EBITDA including run-rate synergies and valuation has come in below our expected level. For reference, we estimate CP paid 12.8x in the KCS deal. The deal is structured per 72%-28% stock-cash split and approximately 18-month review process places close in early 2027 when the financing event will occur given no voting trust. Management expects EPS accretion starting year two and reaching HSD by year three.

• Cash component of the bid at $88.82/NS share will be financed with a split of cash on hand and debt. UP expects to relever to 3.3x at closing as a result, which we believe is within comfortable ranges for them, especially considering synergies. Integration to result in a sizeable $2 billion in additional capex but UP sees a 60% all-in increase in FCF off combined ’24 levels by the end of year three. Both Class I’s have suspended buybacks through the merger process.

• NS reported a second-quarter 2025 that was in line today on EPS but with a 63.4% OR, beating our estimate slightly as metrics hold up well. Well-understood macro uncertainty led NS to lower FY OR improvement guide to 100bps and introduced a downside case for top-line growth at 2% year-over-year, keeping the high end intact with prior at 3%. We believe the lowered guide is a modest downward revision and we lower ’25 and ’26 estimates slightly while acknowledging that NS’s operations are in good shape heading into the review process. We lower our takeout-based PT to $320 to reflect today’s announcement.

The post Vena’s Art of the Deal With NS appeared first on Railway Age.

Union Pacific and Norfolk Southern announced on July 29 that the two Class I railroads are merging to create the first single, transcontinental railroad in the United States. The news of the $85 billion deal followed weeks of rumors, denials, and hints that preceded the merger announcement that, if approved by federal regulators, would reshape the railroad industry for decades to come.

Put together, UP and NS would be by far the largest Class I railroad, with more than 50,000 miles of track stretching across 43 states and into every corner of the continental United States. In a news release, UP CEO Jim Vena said the merger would benefit shippers and the nation by having just one railroad that connects both coasts, something that has never happened in the nearly 200-year history of American railroading. 

“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” Vena said in a press release. “Imagine seamlessly hauling steel from Pittsburgh, Pennsylvania to Colton, California and moving tomato paste from Heron, California to Fremont, Ohio. Lumber from the Pacific Northwest, plastics from the Gulf Coast, copper from Arizona and Utah, and soda ash from Wyoming. Right now, tens of thousands of railroaders are moving almost everything we use. You name it, and at some point, the railroad hauled it.”

The new railroad will be called “Union Pacific Transcontinental.” Vena will be the CEO of the combined system. 

Under the terms of the agreement, UP will acquire NS in a stock and cash transaction that values NS at $320 per share, a 25 percent premium to NS’s 30-trading-day volume. UP and NS hope to complete the transaction by early 2027.

The new railroad will be called “Union Pacific Transcontinental.” Vena will be the CEO of the combined system. —Photo by Steve Barry. 

The slow drip of merger news started weeks before the announcement, when on July 16, online news site Semafor reported that UP had hired Morgan Stanley to explore acquiring one of the other five Class I railroads. Later that day, it was reported that UP had been in talks with NS about a possible merger since the beginning of the year. Then, on July 21, Semafor reported that BNSF Railway had enlisted Goldman Sachs for its own merger bid. Reuters later reported that CSX was its target. Initially, the railroads stayed mum on the rumors. But the day after Semafor and Reuters reported that BNSF was considering a bid for CSX, Warren Buffett of Berkshire Hathaway went on CNBC to dismiss those rumors, telling the cable network the story was false. However, while the 94-year-old billionaire wields significant influence over what BNSF does, industry observers said it seemed unlikely that the Class I railroad — UP’s chief rival in the western U.S. — would simply sit on the sidelines if UP made a serious move at NS. Unless, of course, BNSF’s owners believed UP stands no chance of acquiring NS.

BNSF has not given a statement regarding the proposed UP-NS merger. However, if it doesn’t make an offer for CSX — or even a competing offer for NS — it’s likely that the Class I railroad (currently the largest in North America) will vigorously oppose the UP-NS merger. 

Union Pacific CEO Jim Vena and Norfolk Southern President and CEO Mark George sign the agreement between the two companies. —Union Pacific

The news that UP is planning a move against another Class I railroad comes just two years after Canadian Pacific and Kansas City Southern completed what many believed would be the “final” merger. That merger between North America’s smallest Class I railroads was not subject to the stricter set of merger rules established in 2001 following the merger mania of the 1990s. However, any future mergers would need to meet those higher standards to ensure they serve the public interest. At the time of the CP-KCS deal, the U.S. Surface Transportation Board appeared cautious about further consolidation, especially with Chairman Martin J. Oberman in charge. But some think Patrick Fuchs, the 37-year-old appointed to the board in 2019 by President Donald Trump who now serves as its chair, might be more receptive to the idea of additional mergers.

—Justin Franz 

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The Railroad Museum of Pennsylvania is breaking ground on a new roundhouse that will be used to protect six Pennsylvania Railroad steam locomotives. 

The roundhouse will be constructed next to a former Reading Company turntable already installed on the museum grounds. It is being built by eciConstruction of Dillsburg, Pa. Construction of the 16,000-square-foot, six-stall exhibit structure is expected to start in earnest by the end of July and should be completed by late 2026 or early 2027. During construction, the Museum’s outdoor yard will be closed to ensure visitor safety.   

“The main purpose of the roundhouse building is to protect and exhibit the six historic Pennsylvania Railroad steam locomotives, which have resided outdoors and experienced deterioration due to exposure to the elements,” said museum director Patrick Morrison. “This new climate-controlled space will showcase these historic steam locomotives in the best possible setting. When the time comes and as resources permit, we will be able to remove each one into the Museum’s restoration shop for more extensive preservation work.”

The museum’s friends group has already raised funds to cosmetically restore PRR E6 Atlantic 460 and is currently collecting money to restore the other five locomotives (B6sb 2-8-0 1670, H10s 2-8-0 7688, L1s 2-8-2 520, K4s 4-6-2 3750, and M1b 4-8-2 6755) for display in the roundhouse.

—Railfan & Railroad Staff

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The Oregon Electric Railway Museum in Brooks, Ore., has taken delivery of TriMet Type 1 101, one of the cars that helped establish light rail service in Portland in 1986. The car made its debut over the weekend and will be on display again during the Great Oregon Steam-Up on August 2 and 3.

TriMet purchased 26 Type 1 cars from Bombardier. The cars were based on models used overseas. Although Bombardier attempted to market them elsewhere, they were the only ones ever built and became the backbone of TriMet’s fleet for nearly four decades. TriMet began retiring the cars a few years ago as new Siemens SD700s (known as Type 6s on TriMet) started arriving.

“Preserving LRV #101 is a profound honor for us and a major milestone for the museum,” said Mark Kavanagh, Community Engagement Manager for the Oregon Electric Railway Historical Society. “This isn’t just a machine; it’s a piece of living history that millions of Oregonians have seen, ridden, and relied on. We are immensely grateful to our partners at TriMet for entrusting us with its care so that we can share its story for generations to come.”

—Railfan & Railroad Staff

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Chicago, Milwaukee, St. Paul & Pacific S3 Class 4-8-4 261 will lead back-to-back excursions over the Twin Cities & Western in October. Tickets for the trips out of Chanhassen, Minn., went on sale last week. 

The Milwaukee Road 4-8-4 will lead a matched train one way, while the Friends of the 261’s E9 32A will lead the return trip. Tickets are available for coach and first class, as well as dome and premium classes aboard some of the Friends’ luxury passenger cars. 

Locomotive 261 was built by the American Locomotive Company in 1944 and served in freight and passenger service on the MILW until 1956. It was donated to the National Railroad Museum in Green Bay, Wis., where it was on display until the 1990s. In 1991, it was acquired by North Star Rail and restored to service two years later. It has been based in the Twin Cities ever since, primarily operating in the Upper Midwest. 

For more information, visit 261.com.

—Railfan & Railroad Staff

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