stb update - csx transportation · pdf filestb update september 13, 2017. 2 ... velocity...
TRANSCRIPT
STB UPDATE
SEPTEMBER 13, 2017
2
Post-Labor Day Highlights
Terminal fluidity largely restored with yards well-equipped to execute the plan
Dwell and >48 hour dwelling cars now below late Q2 levels
Velocity continues acceleration with reduction of train delays while en route
Customer issue logs returning to expected levels as a result of network improvement
The combination of lower dwell, increased speed and reduced train delay will continue to
aid car fulfillment, transit and overall service experience
CSX preparing for sound execution into a period of heavier volume
Hurricane Irma not expected to interfere with broad recovery momentum;
however, will have localized effect on week 37 metrics (to be identified)
3
Sound progression in network performance through holiday week
Dwell improved last six weeks; velocity climbed last three weeks, significantly so last week
Right Car Right Train in a stable range
Crew and power resource levels remain well matched to demand
Hump yards performing reliably as hump volume stays at elevated levels
Western terminals recovered, secondary congestion substantially recovered
Empty car fulfillment remained higher last week
Local pull and place performance stable
Customer problem logs down three weeks in a row and approaching normal levels
Interchange volumes and performance steady
CSX experienced congestion challenges at Western corridor terminals from mid-late July
(weeks 29-31); original terminals now healthy and network recovery progressing
Dwell improved each of the last six weeks; strong velocity performance
4Note: Dwell and velocity displayed according to CSX methodology; explanation of CSX methodology can be found in appendix.
Two disruptive derailments occurred in weeks 31 and 32, detrimentally impacting network performance
Velocity (mph)
48%
52%
57%
61% 7
2%
72%
62%
Sep. 2 – Sep. 8
14.1
14.0
14.1
14.5 15.3
14.8 1
5.8
Sep. 2 – Sep. 8
10.4
11.0 11.9
12.5
12.2
11.3
10.0
75%
69%
72%
73% 82%
74%
76%
15.6 15.5 15.0 15.0
13.5 13.3 13.0 13.2 13.1 13.3 13.6
25 26 27 28 29 30 31 32 33 34 35
Weeks
On Time Originations (%)
Dwell (hours)
75%76%70%
66%58%59%
55%57%55%51%50%
25 26 27 28 29 30 31 32 33 34 35
Weeks
On Time Arrivals (%)
Sep. 2 – Sep. 8
Sep. 2 – Sep. 8
On-Time
+2 hrs
On-Time
+2 hrs
11.8 11.912.3
11.912.8
13.2 13.1 12.8 12.511.8 11.5
25 26 27 28 29 30 31 32 33 34 35
Weeks
86% 87% 85% 82%77% 74% 72% 72% 70%
65% 63%
25 26 27 28 29 30 31 32 33 34 35
Weeks
Weekly Average
71
%
68
% 70
%
69
%
73
%
77
%
75
%
Right Car Right Train holding relatively stable; less relevant in PSR
5
Right Car Right Train1
75%
73%73%
75%
73%72%71%
70%
72%73%73%
25 26 27 28 29 30 31 32 33 34 35
Weeks
Sep. 2 – Sep. 8
1 ‘Right Car Right Train’ is defined as the percentage of cars that departed from a yard in accordance with their car scheduling trip plan
Right Car Right Train is no longer a measure
that CSX uses to manage its operation
― In precision scheduled railroading (PSR), if a car can
be advanced on another train to speed transit or
ensure its on-time arrival, there is not one “right train”
Car priority is to move cars quickly, on next
available train
― Asset utilization a key tenet of PSR
Train priority is blocking integrity and departing
all available, relevant cars from the yard
― Blocking integrity certifies that a train is built correctly
and shipments are headed to the correct location
― Managed through field supervision
Weekly Average
9,2239,338
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
8,900
9,100
9,300
9,500
9,700
9,900
Weeks
6
Resourcing appropriately to meet business needs
Power and crew availability steady in third quarter at approximately 99% and 95%, respectively
Q3 locomotive level stable; recently added engines
in response to incremental coal demand
T&E trend tracking normal seasonality; re-crew
rates remain at historic lows and stable
Train & Engine Headcount and Re-crew Rate1Active Locomotives
3,763
3,198
2,000
2,400
2,800
3,200
3,600
4,000
Weeks
1 Re-crew rate is re-crew people starts as a percent of total measured people starts, and it represents incidences of replacing a crew on
the same train ID (generally due to hours of service)
7
Hump yard performance steady
CSX Hump Terminal Overview
Transitioned to flat-switching operations
Hump terminals
Selkirk, NY
Cumberland, MD
Hamlet, NC
Waycross, GA
Atlanta, GABirmingham, AL
Nashville, TN
Louisville, KY
Avon, IN
Cincinnati, OH
Willard, OH
Toledo, OH
19.5 19.020.0
18.0 18.8 19.3 19.019.9
19.020.3
21.4
25 26 27 28 29 30 31 32 33 34 35
Weeks
Dwell at Hump Terminals1
Key hump productivity and efficiency measures
performing well
― Cars per man hour at hump yards accelerating through the quarter,
indicating yard productivity with higher volume at remaining humps
― Dwell up slightly, though expected to return to lower levels (post-
hurricane impact)
1 Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix
Absolute number of humps not “good” or “bad”; goal is
best mix of hump and flat yards for processing efficiency
Weekly Average
20
.0
23
.8
21
.6 24
.5
23
.3
20
.8
19
.3
Sep. 2 – Sep. 8
Key terminal productivity and performance measures
recovered in former “trouble” spots― Dwell recovered and performing well
― Greater yard productivity evident in cars per man-hour processed
Train plan addressed secondary concerns― Leveraged Avon as near-term offset of increased volume flow
through Russell, Columbus and Louisville
― Dwell at these three locations down an additional 12% week-
over-week, and 33% over three-week time period
8
Western performance improved; plan changes alleviating congestion
16.016.9 16.8 17.3
19.9
22.1
19.5
16.0
14.0 13.714.8
25 26 27 28 29 30 31 32 33 34 35Weeks
Dwell at Western Terminals1
Western Corridor Key Terminals
Birmingham, AL
Nashville, TN
Avon, IN
Evansville, IN
Montgomery, AL
Mobile, AL
Western terminals
1 Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix
Weekly Average
11
.3
12
.1
11
.1 13
.6
13
.0
10
.9
11
.4
Sep. 2 – Sep. 8
9
Car order fill slowly climbing; car flows to be interrupted by hurricane
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
2,000
3,000
4,000
5,000
6,000
7,000
25 26 27 28 29 30 31 32 33 34 35 36
Weeks
Weekly Orders Normalized Order Fill %
Weekly Car Orders and Normalized Fill Rate
Q1 Avg. Weekly Car Orders
Orders remain detached from demand
― Car orders up ~40% in Q3 vs. Q1 2017
― Merchandise carload expectations down
slightly in comparable timeframe
Empty car dwell increasing at
customer locations; down on CSX
― Climb of empty customer dwell indicates
improved car supply and availability;
prevention of shutdown situations
― Reduction of empty railroad dwell indicates
improving network flow of empty cars
Normalized fill rate1 ranging 70-85%
― Process evaluation underway to realign order
level with demand and improve fulfillment
accountability
Cars
Ordered
Normalized
Fill Rate
1 Normalized fill rate is a proxy of demand fulfillment against historical/expected order levels,
as current order levels have disconnected with demand
10
Last mile performance stable and returned to levels at end of Q2
Local Service Measurement1
95%90%
84% 83%80% 81% 81% 80% 79% 78%
82%85% 83% 82%
Q1AVG
Q2AVG
25 26 27 28 29 30 31 32 33 34 35 36
Weeks
1 ‘Local Service Measurement’ is defined as the percentage of cars that were pulled or placed at a customer location based upon
daily customer request, the local service plan and available inventory at the local serving yard
Local Service Measurement (LSM) is no longer
a metric that CSX uses to manage its operation
― In precision scheduled railroading (PSR), focus on
end-to-end transit and customer expectations
― Last mile performance must be in combination with, not
independent of, overall performance
Accordingly, LSM as a reported metric was
discontinued upon start of PSR implementation
― At request of STB, last mile tracking reinstated to
monitor through implementation period
― Data reflects passive information flow, lacking prior
focus on field reporting to ensure LSM capture
Reliable pull and place expected as part of
service to customers
11
Customer problem logs down more than 50% over last three weeks
354 368
286
374
458
570 563537
567
499
374
281
25 26 27 28 29 30 31 32 33 34 35 36
Weeks
Delayed Cars Bad Order Switching Issues
Customer InquiriesDaily Average Log Volume
Delayed cars remain most frequent concern
― Trend in problem logs mirrors timeframe of network
challenges and recovery
― Enhanced focus on long-dwell cars ensures all cars
benefit from fluidity gains
Customer service and commercial presence at
key field location has aided communication and
problem resolution
Nearly 90% of last two weeks’ problem logs
have been addressed and closed to-date
― Leaving more logs open through final destination
― Managing pipeline of customer concerns to full resolution
Westbound interchange ticked down in week 36, steady performance
0
200
400
600
800
25 26 27 28 29 30 31 32 33 34 35 36
Weeks
East St. LouisDaily Average Interchange Volume
From To
0
200
400
600
25 26 27 28 29 30 31 32 33 34 35 36
Weeks
New OrleansDaily Average Interchange Volume
0
400
800
1,200
1,600
2,000
25 26 27 28 29 30 31 32 33 34 35 36
Weeks
Chicago Daily Average Interchange Volume
0
100
200
300
25 26 27 28 29 30 31 32 33 34 35 36
Weeks
MemphisDaily Average Interchange Volume
12
13
Precision scheduled railroading to produce service improvement
Improve
Service
Operate
Safely
Control
Costs
Drive Asset
Utilization
Develop
People
Operational Focus
Terminal
Fluidity
Balanced
Train Plan
Service Improvements
Rolling Stock
UtilizationPeople
Efficiency
Fuel
OptimizationTrain
Density
Improved
FrequencyBetter
Reliability
Faster
TransitQuicker
Turnaround
Productivity Improvements&
Realigned service frequency in second quarter
Set the groundwork of a balanced train plan in early July
Currently balancing between terminals’ improving efficiency and modest adjustments in traffic
flows to recover near-term service
Improved execution on this foundation to drive long-term service and productivity improvements
APPENDIX
15
Velocity
Former Line of road miles per hour
Current
Total miles traveled per hour,
including intermediate dwell of
the train
Change
Reason
Includes full trip of a train and
ability to diagnose overall speed
profile (in support of
improvement in asset cycle)
Effect on
MetricReported velocity will be lower
CSX has changed methodology on some metrics reported publicly
Dwell
FormerCar time at terminal, excluding
cars on the same train ID
Current
All car time with a terminal work
event, including through cars on
same train ID (e.g. crew change)
Change
Reason
Includes all dwell with ability to
diagnose all events impacting car
movement (in support of
improvement in asset cycle)
Effect on
MetricReported dwell will be lower
Restated historical data in new methodology available on csx.com/servicemetrics
Cars Online
FormerAll cars on CSX, as determined
by RailInc
Current
RailInc cars on CSX, excluding
cars stored, under repair, sold,
and private cars ex online
inventory
Change
Reason
More accurate measurement of
active cars on line, i.e. cars for
which CSX is focused on real-
time, efficient movement
Effect on
Metric
Reported cars online will be
lower