Bourg, strategic development, Wabtec Corporation. Chris matthews, assistant Vice President , Network Control systems, bnsf of railway, and jim derwinski, chief executive officer and executive director of metro. Todays hearing will evaluate progress in implementation positive train control, ptc, and examine potential challenges in meeting the final implementation deadline of december 31, 2020. As recent Committee Hearings have highlighted, ptc is an Important Technology that has the ability to prevent accidents, including overspeed derailments, such as the tragic derailment in dupont, washington in 2017, as well as preventing traintotrain collisions. Ptc enforcement and implementation act, passed by congress and signed into law by president obama in october 2015, required railroads to implement ptc by december 31, 2018, however it allowed a railroad to apply for an extension of up to 24 months if, and only if, a railroad met important milestones. I am pleased to say that under secretary chao and administrator batorys leadership, this framework has been faithfully implemented as of december 31, 2018, all railroads required to implement ptc by the deadline either submitted documentation to show that they met the requirements for system activation or qualified for an extension for up to two additional years to complete full implementation. As we will hear today, many railroads received such an extension. Since that december 2018 deadline, railroads have continued to make progress on ptc implementation. This hearing provides an opportunity for updates on the current status of ptc implementation across the network and the gains that have been made since the end of last year. Witnesses should discuss how freight and Passenger Railroads are implementing ptc and describe the remaining work needed to achieve full implementation. Full ptc implementation requires, among other things, that railroads be interoperable or, in other words, they must be able to operate seamlessly across tracks owned by different railroads. Achieving interoperability requires coordination across the Rail Industry, including between the federal railroad administration, Host Railroads, tenant railroads, vendors and suppliers, and other stakeholders. This undertaking is particularly complex in regions of this country where multiple railroads interact. I hope witnesses will provide an update on interoperability testing and any successes or challenges identified through such testing. I also invite our expert witnesses to discuss any suggestions they have for further facilitating interoperability throughout the network. With the final deadline for implementation less than a year and a half away, todays hearing will help this committee focus on any other issues that require additional attention. For instance, at past ptc hearings, we heard about challenges related to vendors and software, as well as railroads in the early stages of field testing. So, i invite our witness to update the committee on the availability of vendors to support ptc installation and provide testing services. Witnesses might also identify any other challenges to full implementation as the final deadline approaches. I look forward to a robust discussion of the progress of ptc implementation. I thank all of our witnesses for appearing today. And before we recognize senator duckworth or a special introduction, i will recognize Ranking Member cantwell. Thank you, mr. Chairman, and thanks for holding this important hearing on the next steps for positive train control implementation. I want to thank the panel of witnesses and we look forward to hearing your perspective on how railroads will meet that deadline of 2020 to fully implement ptc. The importance of this lifesaving technology was made abundantly clear in my state of washington, december 2017, when the amtrak cascade 501 derailed around a bend near dupont, washington, and fell into the highway before claiming three lives and injuring 65 people. The National Transportation safety board investigation found that ptc would have prevented this tragedy, but sadly this is just one of many ptcpreventable tragedies. In fact, since the National Transportation safety board first recommended positive train control implementation, ptc could have prevented over 150 different crashes, and many fatalities and injuries. So im pleased that chairman wicker shares my commitment to making sure that 2020 is a full ptc implementation deadline, and that this Committee Takes its oversight role seriously when it comes to positive train control. Its unacceptable that in the year of 2019 we still have not fully implemented this important safety, and even when ptc has been fully implemented, according to the federal railroad administration, there will still be miles of tracks that have not been part of ptc. They will be exempted, including over 1,400 miles of track used by amtrak. Both the ntsb and amtrak expressed concerns about this during a Previous Committee hearing last month, and we followed up that hearing to seek more information from fra about the Safety Measures that should be in place where ptc is not operational. This includes speed limit action plans, adequate crew training, and ptc equivalent technologies. I want to thank administrator batory for the fra response sent to my letter, and for your commitment to ensuring safety everywhere that amtrak operates. This will help prevent another dupont, washington accident from happening again. Even with ptc in place, we have to continue to prioritize safety. No technology is a cureall, or a complete replacement for welltrained engineers and conductors who have strong Safety Cultures at a railroad, and for the track maintenance and the structurallysound Railroad Cars that are needed. That said, implementing ptc is truly a major step forward for safety, and i know it has been a Long Time Coming to get where we are today. Railroads, and especially Commuter Railroad systems, have faced many challenges, so i look forward to the opportunity to hear from the witnesses about the steps to have ptc fully implemented everywhere, and to make sure it is required on our National Rail system. And, look forward to asking specific questions about that implementation and the 1,400 miles of track that wont be covered. Thank you, mr. Chairman. And now i turn to our friend, senator duckworth, for a special introduction. Thank you, mr. Chairman. It is my pleasure to introduce meca cl and executive director mr. Jim derwinski has success led the Organization Since 2017. Every weekday metro operates newly seven upgrades that transport nearly 290,000 passengers. Metra provide service to and from Downtown Chicago with 242 stations on 11 lines covering more than 1200 tracks, miles of track. Physics incident experts at the complex person is mentally one of the largest and most complex Commuter Rail systems in the nation while squeezing every drop of value out of the limited real estate resources that metra receives. A few months ago jim invite me to tour the 47th st. Coach and diesel shop and watch its highly skilled mechanics and electricians install, test and finetune ptc components aboard the rolling stock. Jenna explained how to able to stretch every dollar just a little bit further by doing much of the work inhouse. It was there that he gained a real and deep appreciation for the complexity of ptc. Metra has been nearly 215 million on positive train control efforts while receiving less than 50 million in federal grants or supported efforts. Metra expects its implementation to cost between 350 350 400 million, with an additional 1529 per year and increased operating costs. While these costs are a challenge unconfident metra customers are getting the most bang for the buck with jim at the helm. Welcome, jim. Angst of being here today. We stand here a lot from you and i thank you, mr. Chairman. I yield back. Thank you, senator. We now will proceed to hearing summaries of five minutes or less in each of the witnesses. We will begin with administrator batory. You are welcomed. Good afternoon, all. Chairman wicker, Ranking Member cantwell, and members of the committee. Thank you for the opportunity to testify about one of the fra highest priorities, railroads full implication of fra certified and interoperable ptc systems as soon as possible and by december 31, 2020. Fra commends the industry towards notable progress to date. As of march 31, ptc was in operation on 83 of the 50,000 miles subject to the statutory mandate. Nevertheless, railroads still complete extensive work in the next 70 months including activating ptc on the remaining required mainline and achieving interoperability with tenant railroads. Notably, railroads reported the full implement ptc on the record mainlines in 2018. 2018. The other 37 railroads request an alternative schedule which the statutory mandate required. Fra to approve if the railroad qualified by law. As of march 5, fra approved all applicable alternate schedules will be for the statutory ninetyday deadline. Fra continues to actively monitor railroads progress including the reports do today. Preliminary reports indicate ptc was in operation on 87 of the required mainlines nationwide as of june, 2019 including 91 of the Class One Railroads required mainlines. Post Commuter Railroads were conducting Revenue Service demonstration or operating ptc on 37 of their required miles as of june. A 12 increase since quarter one. Amtrak a Host Railroad on and off the northeast Quarter Report ptc is an operation on 99. 8 of its required mainlines. In addition, six other railroads must intimate ptc on the mainlines that host Passenger Rail service. One class has been operating its full implement implemented ptcm since 2015 at the other five are conducting field testing. Currently, fra is directing its focus to the ptc mandated mainline that have a high concentration of host and tenant railroads including Commuter Railroads with significant remaining work. On july 12 i initiated not less than monthly meetings with executive leadership of amtrak and the Commuter Railroads that operate on the northeast corridor, excuse me, or their own ptc required mainline in the northeast. As this committee is aware, interoperability remains the primary challenge to railroads full implementation of ptc by december 31, 2020. Approximately 101 tenant railroads operate on ptc mandated mainlines, because railroads operate on multiple Host Railroads there are 227 host tenant relationships where interoperability must be achieved. As of march 31, 17 of the of the ten railroads achieve interoperability and 38 were conducting testing. Since may ive met with leadership 61 of the 71 freight nonclass one tenant railroads to discuss next steps for interoperability. Fra also hosts four additional collaborations over the next 70 months focusing on best practices to achieve the ultimate statutory deadline. Railroads continue to cite the ptc vendors and suppliers are resource constrained. In part due to increased demand as the deadline approaches and certain railroads late engagement. After being confirmed as administrator, i met with the ten major vendors and suppliers to stress the Critical Role they play. This year i sent letters that underscore issues that require some suppliers immediate resolution, including the recall of the equipment due to manufacturing defects and capacity limitation hindering railroads interoperability. Fra continues to engage with vendors and suppliers as they are integral to the railroads ability to meet the deadline. In addition to technical assistance, dot has awarded 2. 6 2. 6 billion in Grant Funding and Loan Financing to support ptc implementation representing 18 of the 15 billion Industry Cost for implementation. Specifically, 42 of of the 4. 1 billion estimated importations costing the Commuter Railroads. The industry also estimates Operation Maintenance cost will be substantial with aar citing hundreds of millions of additional dollars per year in maintenance and operation costs. Fra appreciates congress prioritization of safety and the continued funding it provides for ptc. Fra will continue to work with all stakeholders to open sure that railroads full development ptc systems quickly and safely as possible. If any railroad fails to meet the deadline, fra plans to enforce statutory mandate by assessing the maximum terms offered by congress. Thank you and im here to answer your question. Thank you very much. Director. Is good afternoon chairman wicker, Ranking Member cantwell and members of the committee. Thank you for the opportunity to provide an update on Passenger Railroads implementation and operates oversight of ptc, which is when the most promising technological advances in real safety in decades. Over the years we have reported a on railroads progress in preventing ptc which has been a complex and lengthy process involving nearly all major rail lines animals every aspect of railroads operations. While railroads were carting of ptc by last december, fra was like to grant extensions up to december 2020 if railroads met specific requirements. While four four relative full implement ptc, the others continued to work to achieve full implementation. Railroads progress in terms of installing equipment and testing, but much work particularly with respect to interoperability remains to full implement ptc. Today i will focus on two main issues railroads implementation progress and remaining challenges, and fra approach to meeting the 2020 deadline. Turning to the of limitation update, since december many railroad support making progress on testing and limitation of the own ptc systems. Six railroads reported in fomenting ptc compared only one commuter being in this stage in december. However, 11 river to board they remain in field testing which is an early stage of implementation. Regarding interoperability, as of march 11 of the 31 Host Railroads that must have interoperable ptc systems reported they achieve interoperability with a least one of the tenant railroads. Collectively, of the two and 27 unique host tenant relationships that require interoperability can railroads have achieved this for only 17 of these relationships. Turning now to implementation challenges, in response to question her most railroads reported vendor and Software Issues were still a significant problem. These issues are more acute now because as 2020 deadline nears, last time remains to address these issues and associated delays. And the limited supply of vendors and high demand for services continues to pose problems. More than half of the railroads also reported that interoperability was a major challenge and can be complicated by Software Issues and coordinating host and tenant schedules. For example, one railroad said Certain Software functionality still have to be developed, tested and implement it to address reliability issues that a cause system disruptions. Interoperability challenges also differ across systems and geographic areas and can be take a difficult and dense urban areas like the northeast or chicago where railroads are at different stages of implementation. In the northeast eight Commuter Railroads, amtrak and most freight i have many a form of the trento system on at least a portion of equipment and track. In some cases to make different ptc assistance will be operate concurrently which adds to the complexity of interoperability. Moving on to my second point, fra plans to meet the 2020 deadline. Fra can to provide assistance and support to railroads on interoperability and the Testing Process but workload challenges for the agency process. Fra will continue to pay substantial workload through 2020. Overseeing railroads ptc invitation everything documents including lengthy safety plans. As such it remains important for fra to prioritize resources based on risk as we recommended last year. While fra has made improvements come the extended 2020 deadline for full ptc implementation is less than 18 months away and fra to railroads have substantial work to complete and challenges to address before that deadline. Going forward, fra needs to transition to overthink ptc as a routine part of routine operations after the 2020 deadline. Railroads would will need to transition from implementation largely done by contractors, to operating in making their ptc systems. Therefore, december 2020 represents that on the deadline for full ptc implementation but also a point after which railroads and fra will face a a new operational and oversight environment. Mr. Chairman, this concludes my statement and i would be pleased to answer questions that you are members of the committee may have. Thank you very much. Mr. Bourg. Good afternoon, chairman wicker, Ranking Member cantwell and all the members of this committee. Thank you for holding this important hearing on next steps for ptc implementation. My name is robert bork and im Vice President of strategy and growth Wabtec Corporation