Commentary

CEO PERSPECTIVE: Regaining Momentum, Re-establishing Credibility

Written by Jack Hellmann, CEO, Genesee & Wyoming
Jack Hellmann, CEO, Genesee & Wyoming

Jack Hellmann, CEO, Genesee & Wyoming

As part of a special series in Railway Age’s April 2023 issue, 13 chief executives of leading North American companies answer the single-most critical question: What is the biggest challenge facing the North American rail industry? Jack Hellmann of Genesee & Wyoming is the fourth to share his perspective.

The biggest challenge facing the North American rail industry in 2023 is to regain our momentum and re-establish our credibility after a period of turmoil that has included inconsistent rail service, workforce uncertainty, new public concerns around the safety of rail transportation, and persistent regulatory scrutiny. Rising to meet these challenges, we will need to not only embrace pragmatic operational enhancements but also target new technologies that make us even safer, even more environmentally friendly, and even more committed to providing our customers with the transparency and ease of rail experience that they deserve. 

The magnitude of opportunity for rail freight is immense, and I can’t recall a more compelling outlook for the North American industrial economy. Whether it is due to increasing customer focus on low-carbon transportation, de facto U.S. industrial policy that is supporting infrastructure investment, massive new semiconductor facilities, accelerated development of the electric vehicle industry, or customers focused on shorter, simpler supply chains with increased local investment, we have profound reasons for optimism. 

But to achieve this promising future amidst a revitalized North American economy, the challenges of this moment must be addressed with unwavering commitment: commitment to safety, which is a prerequisite for attracting great people and guaranteeing our social franchise in the communities in which we operate; commitment to our people, showing the next generation of railroaders that we are the employer of choice; commitment to our customers to provide reliable and transparent service worthy of the digital age; and commitment to innovation, embracing technologies that make us safer, smarter and more efficient. 

Thankfully, we have some critical attributes on our side. Rail is the safest and most environmentally friendly form of surface transportation. Moreover, the low-friction physics of the steel wheel on steel rail already generates an economic efficiency that is superior to even the grandest visions of autonomous long-haul road transport. And with innovations in the fuel used in our locomotives (e.g., G&W’s Freightliner in the U.K. now runs a train for a major ocean carrier that is powered by green biofuels) as well as advances in locomotive technology (whether battery, hydrogen or both), the inherent advantages of rail should only strengthen in a carbon-reduced world. 

At G&W, we also believe that rail can successfully compete against short-haul trucking, filling our short lines with new traffic, adding rail jobs, and increasing road safety, which is why we are a strategic investor in a start-up company called Parallel Systems that would introduce autonomous, battery-powered bogies to handle container movements from ports. 

Finally, we’ve all seen the importance of supply chain visibility over the past three years, and that is why we are partners in the RailPulse coalition, which aims to provide customers accurate real-time updates on the location, health and status of their railcars across the North American freight rail network. 

The future for rail is bright, and as we address the challenges of 2023, we will prove that adversity only makes us stronger for the journey ahead.  

Read more of Railway Age’s special CEO Perspectives series:

Katie Farmer, BNSF

Tracy Robinson, CN

Joe Hinrichs, CSX

Alan Shaw, Norfolk Southern

Lance Fritz, Union Pacific

Patty Long, Railway Supply Institute

Dan Smith, Watco

Keith Creel, Canadian Pacific

Ian Jefferies, Association of American Railroads

John Newman, Progress Rail

Marc Buncher, Siemens Mobility

Peter Gilbertson, Anacostia Rail Holdings

Tags: ,