Trains – September 2019

(C. Jardin) #1

bill comes from the Alliance for American
Manufacturing. Its membership includes
the United Steelworkers union, also a key
member of the Rail Security Alliance.
Olson tells Trains that no Class I rail-
road is a member of the RSA, formed three
years ago. He says, “We were founded main-
ly by the freight industry and its suppliers.”
As outlined in a study written by retired
U.S. Army Brig. Gen. John Adams, the
group’s greater concern centers on Ameri-
ca’s freight-car manufacturers. The report
contends that CRRC used underbidding
and other tactics to displace Australia’s do-
mestic railcar manufacturers, and that the
same could happen here.
The RSA study depicts a future where
China would have “early and reliable warn-
ing of U.S. military mobilization and logis-
tical preparations for conflict” and warns
that gaining intelligence about freight-car


movements could “provide China with a
destabilizing economic competitive edge.”
Olson asks, “Do we want the Chinese
government having a bird’s-eye view
because of all the technology that’s on
freight cars now?” The group spent
$640,000 lobbying last year, according to
the Center for Responsive Politics, while
the Alliance for American Manufacturing
put $730,000 into Washington lobbying.
Robert Puentes, president of the Eno
Center for Transportation, contends “issues
around unfair trade and national security
seem to be getting conflated.” Downplaying
hacking concerns, he notes transit agencies
conduct inspections and retain independent
vendors to vet hardware and software. A
more helpful federal government role, he
says, would be to provide resources for these
agencies to step up their ability to conduct
cyber audits and inspections.

Popovic says cybersecurity is an issue
for any railcar manufacturer, not just
CRRC. The company is meeting with
cybersecurity experts, and the CTA will
have inspectors on site during assembly.
Puentes also points out that when
CRRC delivers railcars at a lower cost, it’s
“a boon to these [transit] agencies and to
the taxpayers.” He says, “The real issue is
the economic one around unfair trade and
what the Chinese government has said is
their very clear economic ambition to
dominate the world’s railcar market.”
He’s referring to the country’s “Made in
China 2025” plan that targets 10 advanced-
manufacturing industries it wants to domi-
nate. No. 5 on the list: high-end rail trans-
portation equipment. — Dan Zukowski

Note: An expanded version of this article
originally appeared on Trains “News Wire.”

12 SEPTEMBER 2019

NEWS


CRRC Sifang’s plant in South Chicago is building cars for the Chicago Transit Authority. CRRC Sifang America


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