Sep 26, 2017 - Dwell improved last eight weeks; velocity held at high point over last five weeks*. â« Right Car Right T
STB UPDATE
SEPTEMBER 26, 2017
Impact of hurricane continued last week, now fully recovered from Irma
Dwell improved last eight weeks; velocity held at high point over last five weeks* Right Car Right Train stable Crew and power resource levels remain well matched to demand Hump yards performing reliably as hump volume has stabilized to planned levels Western terminals recovered, secondary congestion recovered as well Empty car fulfillment recovering as car flows normalize after the storm Local pull and place performance recovered to prior levels after hurricane service annulments Customer problem logs down week-over-week, despite some lingering storm issues 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
2
* Dwell and velocity citations exclude terminals that held cars through storm-impacted period and specific trains held through storm, respectively
Dwell lower, velocity stable, excluding localized hurricane impacts
55% 57% 55%
61%
69%
66%
60%
58% 59%
65% 63%
70%
66%
66%
73%
70%
66%
75% 76%
63%
70%
72%
75% 78%
72%
74% 72% 72% 70%
On Time Arrivals (%) 71%
77%
76%
82%
78%
Weekly Average 86% 87% 85%
79%
On Time Originations (%)
51% 50%
On-Time +2 hrs On-Time +2 hrs
25 26 27 28 29 30 31 32 33 34 35 36 37
25 26 27 28 29 30 31 32 33 34 35 36 37
Sep. 16 – Sep. 22
Weeks
Weeks
25 26 27 28 29 30 31 32 33 34 35 36 37 Weeks
Sep. 16 – Sep. 22
13.5 13.3
13.3 13.0 13.2 13.1
16.0
13.6
25 26 27 28 29 30 31 32 33 34 35 36 37
Sep. 16 – Sep. 22
Weeks
Hurricane Irma impacts largely confined to terminals in FL, GA, and AL, and specific trains in the region 3
Note: Dwell and velocity displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Week 37 & 38 dwell and velocity exclude terminals that held cars through Hurricane Irma-impacted period and specific trains held through storm, respectively
15.3
15.0
14.7
14.6
14.9
15.0 15.0
14.7
15.6 15.5
15.3
Total measure including hurricane impacted trains
Velocity (mph)
14.1
10.8
10.6
12.4 11.8 11.5 11.3 11.2
11.1
11.9
9.9
13.2 13.1 12.8 12.5
10.1
11.8 11.9
12.8
11.1
Total measure including hurricane impacted terminals
Dwell (hours)
12.3
Sep. 16 – Sep. 22
Right Car Right Train holding relatively stable; less relevant in PSR Right Car Right Train is no longer a measure that CSX uses to manage its operation
73% 72%
73% 73% 72%
71%
72%
76%
78%
75%
75% 73% 73%
74%
75%
72%
76%
75%
Weekly Average
78%
Right Car Right Train1
― 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”
70%
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 25 26 27 28 29 30 31 32 33 34 35 36 37 Weeks
1
4
Sep. 16 – Sep. 22
― Blocking integrity certifies that a train is built correctly and shipments are headed to the correct location ― Managed through field supervision
‘Right Car Right Train’ is defined as the percentage of cars that departed from a yard in accordance with their car scheduling trip plan
Resourcing appropriately to meet business needs Train & Engine Headcount and Re-crew Rate1
Active Locomotives 4,000
9,900
10%
3,763
9%
3,600
9,700
8% 7%
3,194
3,200
9,500
6% 9,314
2,800
9,300
5% 4%
9,223
3% 2,400
2%
9,100
1% 2,000 Weeks
0%
8,900
Q3 locomotive level stable; engines available to meet impending grain harvest season
Weeks
T&E trend tracking normal seasonality; re-crew rates remain at historic lows and stable
Power and crew availability steady in third quarter at approximately 99% and 95%, respectively 1
5
Re-crew rate is re-crew people starts as a percent of total measured people starts, and represents incidences of replacing a crew on the same train ID (generally due to hours of service).
Hump yard performance steady CSX Hump Terminal Overview
Hump yard volumes remain in a consistent band week-over-week, within plan range and well below capacity of yards
Total hump dwell higher due to hurricane, as expected; will move lower in coming week(s)
Transitioned to flat-switching operations Hump terminals
Selkirk, NY Toledo, OH Willard, OH Cumberland, MD Cincinnati, OH Louisville, KY
Absolute number of humps not “good” or “bad”; goal is best mix of hump and flat yards for processing efficiency
6
18.8 19.3 19.0
19.9
19.0
19.3
25 26 27 28 29 30 31 32 33 34 35 36 37
Sep. 16 – Sep. 22
Weeks
Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Week 37 & 38 dwell excludes terminals that held cars through Hurricane Irma-impacted period
16.2
18.0
21.4 21.9
17.9
19.5 19.0 20.0
20.3
19.3
Atlanta, GA
19.0
Hamlet, NC
Waycross, GA
1
Including Hurricane Impact
19.2
Birmingham, AL
Weekly Average
18.6
Nashville, TN
Total measure including hurricane impacted terminals
Dwell at Hump Terminals1
18.5
Avon, IN
― Dwell lower excluding impact of storm (i.e. Waycross) ― Cars and trains held at Waycross through storm period
Western performance recovered; plan changes alleviated congestion Western Corridor Key Terminals
Key terminal productivity and performance measures recovered in former “trouble” spots ― Dwell recovered and in line with expectations ― Birmingham held cars during the hurricane; remainder unaffected
Avon, IN
Train plan addressed secondary concerns ― Leveraged Avon as offset of increased volume flow through Russell, Columbus and Louisville ― Dwell at these three locations down an additional 10% weekover-week, down 46% from high point, and in expected range
Evansville, IN Total measure including hurricane impacted terminals
Dwell at Western Terminals1
Nashville, TN
Weekly Average 22.1
12.6
25 26 27 28 29 30 31 32 33 34 35 36 37
Sep. 16 – Sep. 22
Weeks 1
7
Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Week 37 & 38 dwell excludes terminals that held cars through Hurricane Irma-impacted period.
11.4
11.9
Mobile, AL
Western terminals
14.8
12.8
14.0 13.7
13.0
16.0
11.1
16.9 16.8 17.3
13.7
16.0
19.5
13.3
Montgomery, AL
19.9
10.3
Birmingham, AL
Car order fill recovering after hurricane impacts Holding of cars through storm caused
Weekly Car Orders and Normalized Fill Rate Normalized Fill Rate
Cars Ordered
90%
7,000
temporary backlog of regional flows ― Waycross a key distribution point of cars ― Close to get steady flows fully reestablished
85% 80%
6,000
75% 70%
5,000
65% 60%
4,000
Empty car dwell continues to rise at customer locations ― Customers maintaining buffer stock, which elongates total asset turn times
55% 50%
3,000
45% 40%
2,000 25
26
27
28
29
30
31
32
33
34
35
36
37
38
Weeks
Weekly Orders
1
8
Normalized Order Fill %
Q1 Avg. Weekly Car Orders
Normalized fill rate is a proxy of demand fulfillment against historical/expected order levels, as current order levels are disconnected with demand
Last mile returned to prior range after hurricane service delay Local Service Measurement (LSM) is no longer a metric that CSX uses to manage its operation
Local Service Measurement1
95%
90% 84% 83%
80% 81% 81% 80% 79% 78% 82%
85% 83% 82%
79%
84%
― In precision scheduled railroading (PSR), focus on endto-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 Q1 Q2 25 AVG AVG
26
27
28
29
30
31
Weeks
1
9
32
33
34
35
36
37
38
Reliable pull and place expected as part of service to customers
‘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
Customer problem logs down week-over-week Delayed cars remain most frequent concern
Customer Inquiries Daily Average Log Volume
570 563
537
― Trend in problem logs mirrors timeframe of network challenges and recovery, followed by Hurricane Irma ― Continued reduction in long-dwelling cars reflects overall fluidity improvements
567 499
458 374
354 368
374 330
286
281
294
Customer service and commercial presence at key field location aided communication and problem resolution Nearly 90% of last two weeks’ problem logs have been addressed and closed to-date
25
26
27
28
29
30
31
32
33
34
35
36
37
Weeks
Delayed Cars
10
Bad Order
Switching Issues
38
― Leaving more logs open through final destination ― Managing pipeline of customer concerns to full resolution
Interchanges are current and performing to expectations East St. Louis 800
Daily Average Interchange Volume
From
To
Chicago 2,000
Daily Average Interchange Volume
1,600
600
1,200
400
800 200
400
0 25 26 27 28 29 30 31 32 33 34 35 36 37 38
0 25 26 27 28 29 30 31 32 33 34 35 36 37 38
Weeks
Weeks
Memphis
New Orleans 600
Daily Average Interchange Volume
400
200
200
100
0
11
300
Daily Average Interchange Volume
0 25 26 27 28 29 30 31 32 33 34 35 36 37 38
25 26 27 28 29 30 31 32 33 34 35 36 37 38
Weeks
Weeks
Precision scheduled railroading to produce service improvement Service Improvements & Productivity Improvements
Operational Focus Balanced Train Plan
Improved Frequency
Better Reliability
Rolling Stock Utilization
People Efficiency
Terminal Fluidity
Faster Transit
Quicker Turnaround
Fuel Optimization
Train Density
Improve Service
Operate Safely
Control Costs
Drive Asset Utilization
Develop People
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 12
flows to recover near-term service Improved execution on this foundation to drive long-term service and productivity improvements
APPENDIX
CSX has changed methodology on some metrics reported publicly Velocity
Dwell Former
Car 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 full trip of a train and ability to diagnose overall speed profile (in support of improvement in asset cycle)
Effect on Metric
Reported velocity will be lower
Former
Line of road miles per hour
Current
Total miles traveled per hour, including intermediate dwell of the train
Cars Online Former
All 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
Includes all dwell with ability to diagnose all events impacting car movement (in support of improvement in asset cycle)
Change Reason
More accurate measurement of active cars on line, i.e. cars for which CSX is focused on realtime, efficient movement
Effect on Metric
Reported dwell will be lower
Effect on Metric
Reported cars online will be lower
Restated historical data in new methodology available on csx.com/servicemetrics
14
