Car fulfillment settled higher, averaging 94% since improved order fulfillment process began. â« Local pull and ... On
STB UPDATE
JANUARY 2, 2018
Network performed well through holiday week
Dwell, velocity, originations and arrivals recovering quickly after holiday Right Car Right Train down slightly due to holiday impacts Crew and power resource levels remain well matched to demand Hump yard performance steady Western terminals performing well Car fulfillment settled higher, averaging 94% since improved order fulfillment process began Local pull and place performance lower as measure does not account for holiday-related local train plan adjustments or customer closures
Customer problem logs lower than normal, typical for holiday week Interchange volumes current and gateways fluid Planning and execution in advance of the holiday allowed for speedy resumption of normal service following customer shutdowns for the long holiday weekend 2
Velocity year in review: full-year 2017 above 2016, up significantly in Q4 Velocity (mph) Improvement Degradation
2016
2016 Full Year Avg
2017
2017 Full Year Avg
20
PSR Implementation
Height of Service Disruption
STB Listening Session
Velocity
18
16
2017 Avg 15.1 MPH 2016 Avg 14.9 MPH
14
12 1
3
5
7
9
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
Week
Full-year average velocity improved versus 2016, and 8 consecutive weeks of velocity performing above both 2017 and 2016 full-year averages
3
Note: Velocity displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Week 37 & 38 velocity excludes specific trains held through Hurricane Irma.
Dwell year in review: full-year 2017 in line with 2016, strong recent trend Dwell Gross(hours) Dwell Degradation Improvement
2016 Full Year Avg
2017
PSR Implementation
15
Dwell
2016
2017 Full Year Avg
Height of Service Disruption
STB Listening Session
13
2016 Avg 11.3 hours 11
2017 Avg 11.3 hours
9 1
3
5
7
9
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
51
Week
Full-year average dwell equal to 2016 and dwell improved YOY for 13 consecutive weeks
4
Note: 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.
Measures recovered quickly after holiday On Time Originations (%)
On Time Arrivals (%) 81%
80% 68% 64%
60%
60%
40%
40%
20%
20%
76% 72% 71% 70% 67% 67% 66% 65%64% 64%63%63% 60%
On-Time 57% 51% 63% 67% 71%
82%
75% 73%
78%
74% 71%
81%
77% 77%
77%
74% 74%73% 74% 73%
78%
81%
100%
61%
85% 83%
68%
80%
88%
76%
84%
81%
Weekly Average 100%
+2 hrs On-Time
2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51
+2 hrs 2016Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51
Dec. 23 – Dec. 29
2017
Weeks
Weeks
10.7 11.0
10.5 10.4 10.5 10.6 10.6 10.7 10.6
10.0
9.8
10.4 10.3
14.0
14.9 14.9 14.9
14.0
10.0
6.0 2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51
2017
Weeks
Dec. 23 – Dec. 29
2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51
2017
Dec. 23 – Dec. 29
Weeks
Note: Dwell and velocity displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Q3 dwell and velocity exclude the Hurricane Irma-impacted period for terminals that held cars and specific trains held through storm, respectively.
17.7
16.2
15.9
16.0
14.5
14.2
15.7 15.4
17.7
12.0
8.0
5
11.8
12.4
12.1
16.2
16.0 14.9
17.1
16.4 16.3
13.9
12.0
11.2 11.6 10.8
9.1
14.0
10.2
16.0
17.7 17.7
18.0 12.9
18.0
20.0 14.6
20.0
17.9
Velocity (mph) 18.4
Dwell (hours)
18.0
2017
Dec. 23 – Dec. 29
Right Car Right Train down slightly due to holiday impacts Holiday-related local train plan adjustments and customer closures impacted measures
Right Car Right Train1 Weekly Average 90% 86% 86%
85% 80%
72%
74%
73%
75%
74%
70%
73%
67%
73%
76% 74%
71%
75%
77%
74%
78% 75% 76% 76%
70%
61%
65% 60% 55% 50% 2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51
2017
1
6
Weeks
Dec. 23 – Dec. 29
75%
82%
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
‘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
12%
10,000 3,763
9,771
3,673
9,690
10%
3,600 9,600
3,376
9,445
8%
3,200 3,182 3,184 3,162 3,165 3,174 3,180 3,192 3,200 3,179
3,200
3,083
9,223
3,013 3,013 2,998
9,200
9,278 9,264 9,247 9,225 9,204 9,189 9,081
2,800
8,986
4% 2%
2,000
0%
8,400 2016 Q1 Q2 Q3 40
2017
41
42
43
44
45
46
47
48
49
50
51
52
2016 Q1 Q2 Q3 40
41
42
2017
Weeks
Locomotive level coming down in concert with network velocity improvement
43
44
45
46
47
48
49
1
50
51
52
Weeks
Recent headcount reduction driven by train staffing efficiency and adjustments to extra boards
Power and crew availability steady in fourth quarter at approximately 99% and 95%, respectively 7
8,953 8,926 8,909
8,800
2,400
6% 9,049 9,028
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
Key hump productivity and efficiency measures performing well, holiday-related local train plan adjustments and customer closures impacted dwell
Total hump yard volumes remain in a consistent band week-over-week, well below capacity of yards
Transitioned to flat-switching operations Hump terminals
Selkirk, NY Toledo, OH Willard, OH
Dwell at Hump Terminals1
Cumberland, MD Cincinnati, OH
Waycross, GA
31.4
30.0 26.0 22.0 18.0
19.9 20.6
19.8 17.2
17.7
18.8 18.7
21.5 20.6 20.8 20.1 20.1
20.8 20.3 17.1 17.7
14.0 10.0
Absolute number of humps not “good” or “bad”; goal is best mix of hump and flat yards for processing efficiency 1
8
6.0 2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51
2017
Dec. 23 – Dec. 29
Weeks
Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Q3 dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.
21.0
Atlanta, GA
27.6
Hamlet, NC
23.3
Birmingham, AL
34.0
22.5
Nashville, TN
Weekly Average
26.2
Louisville, KY
21.4
Avon, IN
Western terminals performing well Western Corridor Key Terminals
Key terminal productivity and performance measures recovered in former “trouble” spots ― Short spike in dwell from holding of cars through holiday due to local train plan adjustments and customer closures
Avon, IN
Train plan changes at Evansville have resulted in very few cars processed, no longer a key terminal
Evansville, IN
Dwell at Western Terminals1
Nashville, TN
Weekly Average
12.1
11.4
12.3 12.5 12.4 11.9 11.7
11.0
11.9 12.1
10.0 6.0
Key Western terminals
2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51
2017 1
9
Dec. 23 – Dec. 29
Weeks
Dwell displayed according to CSX methodology; explanation of CSX methodology can be found in appendix. Q3 dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.
10.4
19.6 14.4 12.6
10.3
14.0
15.6 13.0 13.6 13.4
12.6
Mobile, AL
18.0
13.1
Montgomery, AL
22.0
11.5
Birmingham, AL
23.0
26.0
Car order fulfillment averages 94% following process improvement Weekly Car Orders, Customer Empty Idles, and Fill Rate1 Order Fill Rates
Cars Ordered/Idle 7,000
100%
6,000
90%
5,000
80%
4,000 70% 3,000 60%
2,000 1,000
50%
0
40% 2016 Q1 Q2 Q3
40
41
42
2017 Weekly Orders Order Fill % (Prior Process)
1
10
2
43
44
45
46
47
48
49
50
51
52
Weeks Customer Empty Idles (> 24 hours) Order Fill % (New Process)2
Car ordering and fulfillment process updated as of Week 45 ― Car orders now remain open for 2 weeks for fulfillment; order fill will settle over a 2-week period ― Accordingly, the current week fill rate will be adjusted in the following week for orders filled
Empty car dwell remains elevated at customer locations ― Empty idle cars at a given customer held >24 hours considered available to fill that customer’s orders
Over 250 orders filled in week 52 against week 51 open orders, increasing fill to 95% ― Week 52 impacted by customer shutdowns for the holiday; car flows to recover as customers resume
2017 fill rate normalized for Weeks 14-44 against historical/expected order levels (Q1 2017), as orders were disconnected with demand New process, starting Week 45, leaves orders open for two weeks, counts empty idle cars >24 hours at a customer location as a filled order for that day
Last mile performance measure lower due to holiday week Holiday-related local train plan adjustments and customer closures impacted measure
Local Service Measurement1 100%
Local Service Measurement (LSM) is no longer a metric that CSX uses to manage its operation
94% 95% 90%
90%
86% 84% 84% 83%
84% 83% 85% 85% 85% 84% 85% 81% 77%
80%
71% 70% 60% 50%
― In precision scheduled railroading (PSR), focus on endto-end transit and customer expectations
Accordingly, LSM as a reported metric was discontinued upon start of PSR implementation
40% 30%
― At request of STB, last mile tracking reinstated to monitor through implementation period
20% 10% 0%
2016 Q1 Q2 Q3
2017
1
11
40
41
42
43
44
45
46
47
Weeks
48
49
50
51
52
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 remained at lower levels Customer logs largely back in normal range after network challenges as fluidity has returned
Customer Inquiries Daily Average Log Volume
― Week 52 experienced typical lower volume of logs due to holiday
570 Total Logs in Week 30 at height of service challenges
416
Improved communication allowing for faster, more local resolution
318 269
265
278
266 247 253 254
201
213
258 257 245 238
213
Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51 52 2017
Weeks
Delayed Cars
12
Bad Order
Switching Issues
― Accountability for resolution of customer issues resides with field responsibility ― Escalating and resolving critical issues with senior leadership
Interchanges current and performing to expectations East St. Louis 800
Daily Average Interchange Volume
From
Chicago
To
2,000
Daily Average Interchange Volume
1,600
600
1,200
400
800 200
400
0
0 2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51 52
2017
2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51 52
2017
Weeks
New Orleans 600
Daily Average Interchange Volume
300 200
200
100
Daily Average Interchange Volume
0 2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51 52
2017
13
Memphis
400
0
Weeks
Weeks
2016 Q1 Q2 Q3 40 41 42 43 44 45 46 47 48 49 50 51 52
2017
Weeks
Precision scheduled railroading producing 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
14
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 Terminals’ improved efficiency and traffic flow adjustments recovered service in Q3 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
16
