Aug 28, 2017 - (weeks 29-31); original terminals now healthy and network recovery progressing .... Atlanta, GA. Birmingh
STB UPDATE
AUGUST 28, 2017
Slow progression underway; poised to accelerate
Dwell showing regular improvement; other network metrics stable Right Car Right Train moving higher Crew and power resource levels are well matched to demand Hump yards performing at a consistent level Western terminals fluid, secondary congestion contained Empty car fulfillment remains in similar range over last few weeks Local pull and place performance trending up
Customer problem logs down week-over-week, though remain elevated Interchange volumes and performance stable; however, Hurricane Harvey impacts anticipated 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 improved each of the last four weeks from height of challenges On Time Originations (%)
On Time Arrivals (%) 55%
46%
55%
49%
58% 59% 55% 57%
58%
66%
53%
70%
52%
75% 76%
48%
64%
63%
66%
69%
64%
62%
77% 74% 72% 72% 70%
65%
Weekly Average 86% 87% 85% 82%
On-Time
+2 hrs On-Time +2 hrs
25 26 27 28 29 30 31 32 33
25 26 27 28 29 30 31 32 33
August 19 - 25
Weeks
Weeks
25 26 27 28 29 30 31 32 33 Weeks
August 19 - 25
25 26 27 28 29 30 31 32 33
August 19 - 25
Weeks
Two disruptive derailments occurred in weeks 31 and 32, detrimentally impacting network performance 3
Note: Dwell and velocity displayed according to CSX methodology; explanation of CSX methodology can be found in appendix.
13.5
13.7
12.9
12.9
13.5
13.7
13.5 13.3 13.0 13.2 13.1
12.8
15.6 15.5 15.0 15.0
11
12.2
11.5
12.3
13.1
Velocity (mph) 11.6
12.8 13.2 13.1 12.8 12.5 11.8 11.9 12.3 11.9
11.3
Dwell (hours)
August 19 - 25
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
72% 71%
72% 70%
73%
72%
73%
70%
73% 73%
69%
75%
72%
75%
74%
Weekly Average
76%
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”
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 Weeks
1
4
August 19 - 25
― 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
3,763
10.0% 9.0%
3,600
9,700
8.0%
3,294 3,200
7.0% 9,500
2,800
9,300
9,380
6.0% 5.0% 4.0%
9,223
3.0% 2,400
9,100
2.0% 1.0%
2,000
8,900 Q1 Q2 25 AVG AVG
26
27
28
29
30
31
32
33
34
Q1 Q2 25 AVG AVG
Weeks
Q3 locomotive level stable; recently added engines in response to incremental coal demand
0.0%
26
27
28
29
30
31
32
5
34
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
33
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)
Hump yard performance steady CSX Hump Terminal Overview Transitioned to flat-switching operations Hump terminals
Key hump productivity and efficiency measures performing well ― Arrive-to-hump, a measure of fluidity and processing efficiency, remains stable from prior week ― Cars per man hour at hump yards accelerating through the quarter, indicating yard productivity with higher volume at remaining humps
Selkirk, NY Toledo, OH
― Aggregate dwell time stable, despite elevated volumes at Cincinnati recently
Willard, OH Cumberland, MD Cincinnati, OH
19.5 19.0 20.0
Waycross, GA
Absolute number of humps not “good” or “bad”; goal is best mix of hump and flat yards for processing efficiency 1
6
25
26
27
18.0
28
19.9 19.0 18.8 19.3 19.0
29 Weeks
Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix
30
31
32
33
22.0
August 19 – 25
18.3
Atlanta, GA
19.1
Birmingham, AL
Hamlet, NC
21.5
Weekly Average Nashville, TN
19.7
Louisville, KY
21.2
Dwell at Hump Terminals1 20.8
Avon, IN
Western performance improved; plan changes alleviating congestion Western Corridor Key Terminals
Key terminal productivity and performance measures largely recovered in former “trouble” spots ― Dwell recovered and in line with expectations ― Greater yard productivity evident in cars per man-hour processed
Train plan addressed secondary concerns ― Leveraging Avon as near-term offset of increased volume flow through Russell, Columbus and Louisville ― Dwell at these three locations down 13% week-over-week
Avon, IN
Evansville, IN
Dwell at Western Terminals1
Nashville, TN
Weekly Average
22.1
Western terminals 25
26
27
28
29
30
Weeks 1
7
Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix
31
32
33
August 19 – 25
12.4
14.2
14.0 Mobile, AL
15.8
16.0
13.8
16.9 16.8 17.3
15.9
16.0
19.5
12.2
Montgomery, AL
19.9
12.1
Birmingham, AL
Car order fill to improve with reduced dwell Orders remain detached from demand
Weekly Car Orders and Normalized Fill Rate Normalized Fill Rate
Cars Ordered
90%
7,000
85% 6,000
Empty car dwell increasing modestly
75%
at customer locations; down on CSX
65% 60%
4,000
55% 50%
3,000
― Merchandise carload expectations down slightly in comparable timeframe
80%
70%
5,000
― Car orders up ~40% in Q3 vs. Q1 2017
― Return of empty customer dwell indicates reducing urgency of need; prevention of shutdown situations
― Reduction of empty railroad dwell indicates improving network flow of empty cars
45% 40%
2,000 25
26
27
28
29
30
31
32
33
34
Weeks
Weekly Orders
1
8
Normalized Order Fill %
Q1 Avg. Weekly Car Orders
Normalized fill rate1 ranging 70-85% ― Process evaluation underway to realign order level with demand and improve fulfillment accountability
Normalized fill rate is a proxy of demand fulfillment against historical/expected order levels, as current order levels have disconnected with demand
Last mile performance stable and improving Local Service Measurement (LSM) is no longer a metric that CSX uses to manage its operation
Local Service Measurement1
95%
90%
85% 84% 83% 80% 81% 81% 80% 79% 78% 82%
― 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 AVG AVG
25
26
27
28
29
Weeks
31
32
33
34
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 1
9
30
Customer problem logs beginning to recede Delayed cars have been most frequent concern
Customer Inquiries Daily Average Log Volume
570
563
537
567 499
― Trend in problem logs mirrors timeframe of network challenges and recovery ― Enhanced focus on long-dwell cars ensures all cars benefit from fluidity gains
458 354
Customer service and commercial presence at key field location has aided communication and problem resolution
374
368 286
― New location assignments this week include: Columbus, Russell, Avon, Evansville 25
26
27
28
29
30
31
32
33
Weeks
Delayed Cars
10
Bad Order
Switching Issues
34
Nearly 90% of problem logs have been addressed and closed to-date ― Managing pipeline of customer concerns to full resolution
Interchange volume at gateway locations similar to prior weeks From
East St. Louis Daily Average Interchange Volume
800
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
0 25
26
27
28
Weeks
200
200
100
0
0 27
28
29
30
Weeks
11
300
400
26
31
32
33
34
Memphis
Daily Average Interchange Volume
25
30
Weeks
New Orleans 600
29
31
32
33
34
Daily Average Interchange Volume
25
26
27
28
29
30
Weeks
31
32
33
34
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
