Friday, September 15, 2000 (Washington, DC)

Federal Railroad Administrator Jolene M. Molitoris, joined by Association of American Railroads (AAR) President and CEO Ed Hamberger, and Roy Allen, President of the Transportation Technology Center, Inc. (TTCI), today announced a 10-year "Care, Custody, and Control" contract agreement regarding the Transportation Technology Center (TTC) in Pueblo, Colo.

"The FRA is very pleased to make an already strong working relationship even stronger through this contract," said Administrator Molitoris. "Together, we will continue to promote safer rail technologies and processes through testing and other means in order to achieve our goal of zero accidents, zero injuries and zero fatalities."

The TTCI is a for-profit subsidiary of the AAR. The contract applies to the management and operation of the TTC in Pueblo, Colo. on behalf of the U.S. Department of Transportation?s (USDOT) Federal Railroad Administration (FRA) for the 2002-2012 time period. This contract results from a fully competitive solicitation following similar 10-year contracts with the AAR and later with the AAR/TTCI.

AAR President Ed Hamberger stated, "Since AAR first assumed ?care, custody, and control? of the test center in 1982, the railroad industry?s train accident rate has declined by more than half; employee casualty rates have fallen more than 60 percent; and railroad productivity has more than tripled. Work performed at TTC has had a lot to do with these gains in safety and efficiency."

The contract was negotiated over a nine-month period and is an excellent example of a sustained, mutually beneficial public-private partnership. FRA stands to benefit significantly from the new contract?s capital investment and maintenance requirements. Those benefits will increase as TTCI?s net cash from operations increases above a certain level. Also, the FRA will receive preferential rates for use of equipment and infrastructure at the facility for government-sponsored research.

"TTC is the finest railroad research and test facility in the world. As a result of this long-term contract extension, we will be able to further upgrade our capabilities and continue our successful efforts to market TTC to railroads around the world." said Roy Allen, President of TTCI .

The ongoing partnership between FRA and TTCI continues to improve rail safety through research on advanced technology.