2016Q1 Q2 Q3 40 41 42 43. On Time Arrivals (%). On-Time. +2 hrs. On-Time ... 1 'Right Car Right Train' is defined as the
STB UPDATE
NOVEMBER 7, 2017
Network performance levels consistent
2
Dwell and velocity performance steady Right Car Right Train stable Crew and power resource levels remain well matched to demand Hump yard performance steady, four humps remaining Western terminals performing well Empty car fulfillment above 80%1 Local pull and place performance moving higher Customer problem logs remain near lowest level in measurement period and in normal range Interchange volumes current and gateways fluid
1 Normalized
fill rate
Dwell and velocity performance steady
60%
60%
40%
40%
20%
20%
68%
60%
64% 63% 63%
68%
74%
68%
70%
64%
64%
80%
69%
81%
64%
76%
81%
100%
62%
80%
Weekly Average
72%
74% 74% 73% 74% 73%
On Time Arrivals (%) 80%
88%
80%
84% 81%
73%
100%
75%
On Time Originations (%)
On-Time +2 hrs On-Time +2 hrs
43
2016 Q1 Q2 Q3 40 41 42 43
Oct. 28– Nov. 3
2017
Dwell (hours)
Velocity (mph)
14.9 14.9
14.0
15.8 14.2
14.2
14.4
15.7 15.4
14.9
14.0 12.0
8.0
10.0
6.0
2016 Q1 Q2 Q3 40 2017
3
10.3
10.4
16.0
9.8
10.0
16.2
11.5
10.7 11.0 10.5 10.4
11.9
12.1
9.2
11.2 11.6 10.8
10.4
14.0
15.2
18.0
16.0
12.0
Oct. 28 – Nov. 3
Weeks
41
42
Weeks
43
Oct. 28 – Nov. 3
2016 Q1 Q2 Q3 40 41 42 43 2017
Oct. 28 – Nov. 3
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.
14.5
42
14.8
41
Weeks
2017
15.2
2016 Q1 Q2 Q3 40
Right Car Right Train down slightly; less relevant in PSR Right Car Right Train is no longer a measure that CSX uses to manage its operation
Right Car Right Train1 Weekly Average
― 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”
90%
86% 86%
68%
73%
70%
77%
74%
75%
77%
72%
75% 76% 76%
74%
80%
76%
82%
78%
85%
Car priority is to move cars quickly, on next available train ― Asset utilization a key tenet of PSR
65%
Train priority is blocking integrity and departing all available, relevant cars from the yard
60% 55% 50%
2016 Q1 Q2 Q3 40 2017
1
4
41
42
Weeks
43
Oct. 28 – Nov. 3
― 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 3,673
3,763
12% 9,771
3,600 3,376 3,200
3,200
9,690
9,700 3,182
3,184
3,162
3,165
3,174
10% 8%
9,500
9,445
6% 2,800
9,300
2,400
9,223
9,264
9,247
9,204
Q1
Q2 2017
Q3
40
41
42 Weeks
43
Locomotive level stable; engines in place to support grain harvest season
44
0% 2016
Q1
Q2 2017
Q3
40
41
42 Weeks
43
44
Re-crew rates remain at historic lows and stable
Power and crew availability steady in fourth quarter at approximately 99% and 95%, respectively 1
4% 2%
8,900 2016
5
9,225
9,100
2,000
9,278
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
Total hump yard volumes remain in a consistent band week-over-week, well below capacity of yards
Key hump productivity and efficiency measures performing well, four humps remaining
Transitioned to flat-switching operations Hump terminals
Selkirk, NY Toledo, OH Willard, OH Cumberland, MD Cincinnati, OH
Waycross, GA
18.0
19.9 20.6
20.6
19.8 17.2
17.7
18.8 18.7
25.1
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
6
6.0
2016 Q1 Q2 Q3 40 2017
41
42
43
Oct. 28 – Nov. 3
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.
19.3
22.0
18.3
Atlanta, GA
26.0
19.7
Birmingham, AL
Hamlet, NC
23.0
Nashville, TN
Weekly Average
30.0
21.1
Louisville, KY
Dwell at Hump Terminals1
19.1
Avon, IN
Western terminals performing well Western Corridor Key Terminals
Key terminal productivity and performance measures recovered in former “trouble” spots ― Dwell remains well below 2016 levels
Train plan adjustments have recovered service ― Leveraged Avon as offset of increased volume flow through Russell, Columbus and Louisville
Avon, IN
Evansville, IN
Dwell at Western Terminals1
Nashville, TN 22.0
Weekly Average
Birmingham, AL
10.0
6.0
Western terminals
2016 Q1 Q2 Q3 40 2017
1
7
41
42
43
Oct. 28 – Nov. 3
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.
11.8
11.4
11.2
12.1
12.4
12.6
Mobile, AL
12.5
14.4
12.4
14.0
13.0 13.6 13.4
11.6
15.6 Montgomery, AL
13.9
18.0
Car order fulfillment above 80% Empty car dwell remains elevated at
Weekly Car Orders and Normalized Fill Rate1 Normalized Fill Rate
Cars Ordered
100%
7,000
90%
6,000
80% 5,000 70% 4,000 60% 3,000
50% 40%
2,000 2016
Q1
Q2
Q3
40
41
2017 Weekly Orders
1
8
Normalized Order Fill %
42
43
44
customer locations ― Indicates improved car supply and availability ― Customers maintaining increased buffer stock, which elongates total asset turn times and reduces asset pool available to fill other customers’ requests
Improvements to car ordering process being introduced ― Intended to improve accountability in ordering and fulfillment to better capture demand in a timely manner ― Active communication underway and to continue over coming weeks to ensure customer understanding/alignment
Weeks Q1 Avg. Weekly Car Orders
Normalized fill rate is a proxy of 2017 demand fulfillment against historical/expected order levels (Q1 2017), as order levels disconnected with demand beginning in Q2 2017; 2016 orders and fulfillment do not warrant normalizing
Last mile performance moving higher Local Service Measurement (LSM) is no longer a metric that CSX uses to manage its operation
Local Service Measurement1
95%
94%
100%
90%
90%
81%
84%
83%
85%
85%
85%
80% 70%
― 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
60% 50%
― 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
40% 30% 20% 10% 0%
2016
Q1
Q2 2017
1
9
Q3
40
41
42 Weeks
43
44
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 stable at lower levels Delayed cars have returned to normal levels (
