Kathy: Hi, everyone. I’m Kathy Ohlhaber, one of the editors of The Signal. I’m really excited to be back with another episode. Today we’re joined by Kari Gonzalez, President and CEO of MxV Rail. We’re going to get into some questions, but first I have to ask this. Ted had this whole idea that we should stop asking people what’s in their cup because everyone keeps bringing water. I said, “Yeah, but it’s supposed to be fun. Maybe Kari won’t have water.” Please tell me you don’t have water. What do you have?

Kari: I don’t have water. I actually watched a few episodes beforehand because I’m a prep person. I thought, “I’m not coming with water.” I held off on my morning drink so I could make it my afternoon drink. Today I have a weird concoction. It’s a mushroom chai tea blend with salted caramel vanilla protein powder. That’s how I get my first bit of protein for the day, so I brought it just for this occasion.

Kathy: I appreciate that so much. Take that, Ted. We’re going to keep asking people. No offense to everyone who brought water before. Water is good for you.

Kari: Hydration is good. But I brought this specifically so we’d have something interesting to talk about. I figured if we talked about my drink, it would take up the whole episode and take the heat off me.

Kathy: Perfect. I have a little Diet Coke on top of the remnants of my coffee.

Kari: It’s like a dirty coffee instead of a dirty soda. My kids are really into dirty sodas. Have you heard of this?

Kathy: No.

Kari: They take a soda and add creamer to it. My son puts coconut creamer in a Diet Dr Pepper, and I’m like, “What are you drinking?” This is a kid who didn’t drink soda for the first 16 years of his life, and then dirty sodas came along.

Kathy: There’s always something. Before we get into the questions and get to know you a little better, I warned you that I had something for you. You haven’t seen it yet. I dug up a clip of you from 12 years ago when you were working at what was then TTCI. I’d like to play it for you. We’re going to do a little “Kari Reacts.”

Kari: It’s like a whole reveal?

Kathy: Exactly. (Video plays.) Now we have video evidence that you’ve been at MxV Rail for quite a while, back when it was TTCI. I know you’ve answered this question many times as president and CEO, but tell us a little about MxV Rail and what you do.

Kari: It never gets old talking about what MxV Rail does because we’re always doing new and innovative things. At our core, we’re problem solvers. When the industry faces big challenges, we’re looking for solutions.

We bring together an incredible amount of expertise. We have decades of experience across our engineering staff, locomotive engineers, welders—you name it, we have it at MxV Rail. We combine all of that expertise to solve the industry’s toughest problems in a collaborative way. Our goal is to move innovation forward while improving safety, reliability, efficiency, and resiliency across North America and around the world.

Kathy: That’s really the thing. MxV Rail has become globally recognized. You mentioned some of the people you have there. What kinds of expertise and disciplines are represented?

Kari: That’s a tough question because there are so many. We have about 250 people at MxV Rail. Around 110 are engineers, including mechanical, civil, electrical, and systems engineers. We also have physicists, metallurgists, and many other specialized disciplines. We have more than 16 Ph.D.s and nine professional engineers. The level of expertise we have in one location is really unmatched anywhere in the industry.

Beyond that, we have the people who support our day-to-day work—locomotive engineers, welders, track specialists, accountants, HR professionals. Really, we’re one passionate family focused on moving the industry forward.

Kathy: I always like pointing out that railroading isn’t just train conductors and locomotive engineers. There are so many different careers, whether you’re doing research or working out on the railroad itself. That’s why I wanted to ask. What are some of the technologies you’re testing today that are now being used on the main line? What are some of the things that have come out of MxV Rail over the years?

Kari: That’s another broad question because we’ve been around for more than 40 years. It’ll actually be 50 years in another couple of years since TTCI was established. Over that time, we’ve worked on everything from individual components to entirely new technologies.

Right now, we’re celebrating 50 years of FAST—the Facility for Accelerated Service Testing. A lot of innovations have come out of that work, whether it’s track infrastructure, mechanical components, new switch designs, or different types of railroad ties. One interesting area right now is composite ties. We’re testing alternatives to traditional wood and concrete ties to make sure they’ll perform as expected in the field and provide the durability the industry needs.

We’re also doing a lot of work to advance wheel impact load detector technology. WILD systems have been around for a long time, but the technology continues to evolve. We’re helping update AAR standards and specifications so the latest technologies can be implemented across the industry. Ultimately, our goal is to work with equipment manufacturers and technology developers, validate their innovations, and always keep a zero-derailment future in mind.

Kathy: When you talk about detectors, can you explain a little more about those types of sensors and wayside systems? Are you doing a lot of testing with those? Do some of the technologies now being used on the main line come out of MxV Rail?

Kari: Absolutely. Going back a number of years, some of the first wayside inspection systems focused on bearings, so we did a lot of work on acoustic bearing detection. Today, you’re seeing many more of those systems across the network.

As technology advances, the techniques we’re using continue to evolve. We’re not just looking at wayside systems anymore—we’re also looking at onboard sensing technologies. One important project we’re working on right now involves onboard sensors for obstruction detection. That work is helping create a pathway toward better restricted-speed enforcement by leveraging Positive Train Control.

There are a lot of interconnected technologies involved, and I really appreciated when you picked up on the word system because that’s really who we are. We see the railroad as one integrated system. North America’s rail network is unique because of the amount of interchange, so we’re always thinking beyond an individual component and asking how it’s going to affect the entire system.

Kathy: System is such a perfect word because even something like Positive Train Control is an interconnected technology system. It’s a backup for the locomotive engineer and another layer of safety.

We talk a lot about people plus technology.

Kari: Absolutely. I think the interesting question right now is figuring out the right balance between people and technology because that balance continues to evolve. The way people work is going to keep changing, but I don’t think there’s ever going to be a world without people. Even with all the technological advances we’re seeing across industries, there’s always going to be a human element. The real question is: What skills will people need in those future roles, and how do we help them develop those skills?

Kathy: That leads into the next big question. We can’t have this conversation without talking about AI, automation, and all the buzz around it. What does AI actually look like at MxV Rail? What does it mean in your day-to-day work?

Kari: That’s an interesting one because everybody wants to say they’re doing AI, but I think most people are still figuring out what AI really is and what it can actually do. There are different levels of automation in every organization. Even something like Microsoft Copilot has become part of my daily routine. Copilot and I are best friends. When I’m walking my dog in the morning, I’ll use it as a thinking partner to work through ideas. I’m a big fan.

But beyond that, the bigger opportunity is understanding where AI can truly make a difference across the railroad industry. One thing that’s unique about our industry is how collaborative it is. At the same time, introducing new technologies creates a lot of different perspectives, so we’re all working to determine the best path forward.

At the component level, we’re looking at how AI can help us better understand the enormous amounts of data we’re already collecting. It may simply mean adding AI capabilities to existing technologies so people can make faster, better-informed decisions.

We have several projects focused on wheels, wheel seals, and wheel performance where AI helps make the initial assessments before passing that information to skilled employees who make the final decisions.

AI is becoming part of everything we do, but we’re also being intentional about how we use it. If you aren’t using it, you risk falling behind, but you also have to be careful because things can get out of hand quickly if you adopt it without thinking through how it should be used.

Kathy: And when you say decision-making, there’s still a person making that final decision.

Kari: Absolutely. AI is helping process enormous amounts of data and surface information more efficiently, but it’s still the skilled engineer, the experienced railroad employee, the person who understands railroading, who makes the final decision. I think of AI as a human enhancer, not a human replacement.

Whether I think about my own job, my team’s work, or technology across the industry, the question is always: How do we enhance the human element? How do we make people more effective? Our industry has always been driven by efficiency. We want to do things faster without ever compromising safety. AI allows people to spend less time on repetitive tasks and more time applying their expertise where it matters most.

Kathy: Next year marks 200 years of the rail industry. Railroads were the cutting-edge technology when they first began, and they’ve continued to evolve ever since. We were using the internet long before many other industries. Freight railroads had mainframe computers back in the 1970s. So it’s really no surprise that the industry is figuring out how to use AI safely and efficiently as the next wave of technology.

Kari: It really is impressive. When I talk about our history, I always emphasize the importance of research. Research has been a core part of AAR from the very beginning. It’s amazing to see how much the industry has evolved while still staying true to its roots. You look at things like track gauge or wheel profiles, and many of those foundational concepts have remained remarkably consistent for nearly 200 years. The early railroaders came up with some brilliant ideas, and we’ve continued building on that foundation to do what we do today.

Kathy: It’s interesting because AAR is celebrating its 90th anniversary while the rail industry is approaching 200 years. As we’ve been preparing for Rail 200, I was looking through old materials and found advertisements from the 1940s and 1950s talking about research, innovation, and the importance of continually improving the industry. It really has always been part of who railroads are.

Kari: Exactly. You can see the results. Last year we had the safest year in the industry’s history, and that didn’t happen by chance. It reflects years of intentional work and the technologies we’ve introduced to improve safety.

When I talk internationally about U.S. freight rail, I always say we’re really a gem. People around the world want to understand how we operate so efficiently. Being able to pair that efficiency with such strong safety performance is something I’m incredibly proud to talk about. It’s exciting to be able to explain what we do and why we’re able to do it so well.

Kathy: That leads perfectly into my next question. Here we are talking about technology and innovation, but many people still look at a train and picture an old steam engine. In reality, today’s locomotive is basically a supercomputer on wheels. What’s one thing you wish people better understood about the rail industry? Is there a misconception you’d like to change?

Kari: First and foremost, you’d be surprised how many people ask me, “Railroads still exist?”

For those of us who work in the industry, that’s hard to believe. How do you think your Amazon packages get here? Rail really is the backbone of our economy, quietly moving goods in the background. Honestly, that’s probably a good thing. If people aren’t constantly thinking about railroads, it usually means things are working the way they’re should.

But whenever I have the chance, I like talking about how innovative the industry is and, even more importantly, the people who make it all happen. When we’re looking at bringing new people into the industry, what stands out to me most is how willing everyone is to help each other. We all share the same goal: moving freight safely across the country.

Nobody wants derailments. Nobody wants anyone to get hurt. Everyone is willing to work together to achieve that vision. That shared purpose is what makes this industry so special. It’s where the innovation comes from. It’s where the passion comes from. And it’s what drives the incredible level of care people bring to their work every day.

Kathy: I also think about the generations of railroaders. One statistic that always stands out to me is that the median employee tenure is 14 years. People stay in this industry, and many come from families with generations of railroaders.

Kari: And it’s not just that—it’s also the opportunities within rail. I’ve been with MxV Rail for almost 24 years. I started as an intern and have worked in many different parts of the organization. I started as an engineer, worked in standards, spent time in the business office, and eventually became president and CEO.

That’s very reflective of the railroad industry as a whole. People can start in a craft position and work their way into leadership. You see that all the time, and I think that’s something really unique about our industry.

So that’s my plug for anyone who’s not in rail but is thinking about a career change or looking for a place to build a meaningful career. Rail is where it’s at—whether you’re working for a railroad, on the supply side, in research, or with AAR. There are so many opportunities.

And I can honestly say there’s never a dull day in railroading. Whether you’re doing research or working on a railroad, there’s always something interesting and exciting to be part of.

Kathy: That leads to my last question. You mentioned starting as an intern nearly 24 years ago. Looking back on that journey to becoming president and CEO of MxV Rail, what’s one lesson you’d want to share with people?

Kari: That’s a hard one because there are so many lessons. I could probably write a book. But I think the biggest one is this: be gritty. Get in there and learn. Become an expert. Enjoy the journey because there’s always something new to learn, no matter what role you’re in.

For me, being persistent and dedicating yourself to what you’re passionate about has created incredible opportunities and brought tremendous rewards. I genuinely love what I do. I think it’s the coolest job ever. And the people I get to work with make it even more special. So be gritty. Go after what you want to do. And don’t let anybody tell you no.

Kathy: You just gave us the perfect title for this episode—and probably all of the social media posts around it.

“Be gritty.” I love that. Anything else? Anything I missed or anything you’d like to add?

Kari: Anytime I have the opportunity to speak to an audience, I always want to recognize the people of MxV Rail. What we do is really special, and it’s because of the passionate people who work there. They provide incredible support to the rail industry every single day. Without them, this research program wouldn’t exist, and I wouldn’t get to come out and talk about all the cool things we’re doing.

Kathy: I’m so grateful you came to talk with us today. This has been a lot of fun, and hopefully you’ll get to enjoy the rest of your drink.

Kari: I’ll finish my protein drink and make sure I get my daily dose of protein.

Kathy: I also want to give you your very own Coffee Break mug so you can put your super fancy drink in it next time.

Kari: I know! I’ll have to mix it first and then pour it in. This little frother travels with me everywhere. It’s the one thing I never leave home without.

Kathy: So fancy. Meanwhile, I have Diet Coke on top of the remnants of coffee. We’ve all got to do what we’ve got to do to get through the day. Thank you so much, Kari, and thanks to everyone for watching. We’ll be back soon once we figure out who our next guest is.

Kari: Thank you.