Customer problem logs at lowest level seen in measurement period. â« Interchange volumes ... be advanced on another tra
STB UPDATE
OCTOBER 24, 2017
Network performance levels consistent Highlights ̶
̶
Dwell reaches new measurement-period low of 10.5 hours
̶
Willard hump transition complete, with four humps remaining
̶
Customer problem logs at lowest level in measurement period and in normal range
2
Resolution of recent customer logs occurring more quickly
* Normalized
fill rate
Dwell further improved and velocity steady Right Car Right Train stable Crew and power resource levels remain well matched to demand Hump yards performing well; Willard converted to flat switching with no network disruption
Western terminals fully recovered from Hurricane Nate impacts seen in prior week
Empty car fulfillment remained above 80%* Local pull and place performance moving higher Customer problem logs at lowest level seen in measurement period Interchange volumes current and gateways fluid
Dwell and velocity performance at or better than 2016 levels On Time Originations (%)
On Time Arrivals (%)
64%
59%
60%
59%
64%
68%
70%
62%
68%
62%
81% 80%
67%
100%
63%
73%
73%
74%
74%
74%
74%
80%
75%
88%
76%
81%
73%
84%
73%
Weekly Average 100%
On-Time
60%
60%
+2 hrs
40%
40%
On-Time
20%
20%
0%
0%
2016 Q1
Q2
Q3
40
41
+2 hrs 2016 Q1
Oct. 14 – Oct. 20
Weeks
2017
Q2
Q3
2017
Oct. 14 – Oct. 20
Velocity (mph)
16.0
10.0
12.0
8.0 6.0
10.0
2016 Q1
Q2 2017
Q3
40
41
Weeks
Oct. 14 – Oct. 20
2016 Q1
Q2 2017
Q3
Oct. 14 – Oct. 20
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.
15.2
14.8
41
15.0
40
14.0
14.0
14.5
14.2
15.0
15.4
15.4
15.7
14.9
14.7
10.1
16.0
9.9
11.6
11.0
16.2
11.0
10.7
10.3
10.8
9.2
11.2
11.6
12.1
11.7
18.0
14.0
3
41
Weeks
Dwell (hours)
12.0
40
Right Car Right Train holding stable; 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%
75%
73%
70%
77%
77%
76%
76%
75%
75%
72%
80%
75%
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 2017
1
4
Q3
40
41
Weeks
Oct. 14 – Oct. 20
― 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
10,000 3,673
3,763
10% 9,771
3,600 3,200
3,200
8%
9,600
3,376 3,182
3,184
9%
9,690 9,445
3,162
7% 9,278
9,223
9,264
9,247
6% 5%
9,200 2,800
4% 3%
8,800
2,400
2% 1%
2,000
0%
8,400 2016
Q1
Q2 2017
Q3
40
41 Weeks
Locomotive level stable; engines in place to support grain harvest season
42
2016
Q1
Q2 2017
Q3
40
41 42 Weeks
Re-crew rates remain at historic lows and stable
Power and crew availability steady in fourth 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
Total hump yard volumes remain in a consistent band week-over-week, well below capacity of yards ― Willard transitioned to a flat switching operation
Transitioned to flat-switching operations Hump terminals
Selkirk, NY
Key hump productivity and efficiency measures performing well
Toledo, OH Willard, OH Cumberland, MD Cincinnati, OH
Waycross, GA
19.9
20.6
19.8 17.7
17.2
18.0
18.8
14.0
Absolute number of humps not “good” or “bad”; goal is best mix of hump and flat yards for processing efficiency 1
6
10.0
2016 Q1
Q2 2017
Q3
40
41
Oct. 14 – Oct. 20
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.
20.6
22.0
16.6
Atlanta, GA
20.8
Hamlet, NC
19.3
Birmingham, AL
Weekly Average
19.7
Nashville, TN
26.0
17.8
Louisville, KY
Dwell at Hump Terminals1
16.9
Avon, IN
Western terminal performance recovered, dwell better than 2016 Western Corridor Key Terminals
Key terminal productivity and performance measures recovered in former “trouble” spots ― Dwell improved this week after cycling New Orleans gateway traffic held in the prior week due to Hurricane Nate
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 24.0
14.4 12.6
12.0 9.0 6.0
Western terminals
2016 Q1
Q2 2017
1
7
Q3
40
41
Oct. 14 – Oct. 20
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.
11.2
13.4
10.1
13.6
11.8
Mobile, AL
13.0
12.0
15.0
15.6
13.1
18.0
15.0
Montgomery, AL
21.0
11.5
Birmingham, AL
Weekly Average
Car order fulfillment remained above 80% Empty car dwell remains elevated at
Weekly Car Orders and Normalized Fill Rate Normalized Fill Rate
Cars Ordered
90%
7,000
85% 80%
6,000
75% 70%
5,000
65% 60%
4,000
55% 50%
3,000
45%
― Indicates improved car supply and availability ― Customers maintaining buffer stock, which elongates total asset turn times
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
40%
2,000 2016
Q1
Q2
Q3
2017 Weekly Orders
1
8
customer locations
Normalized Order Fill %
40
41
42
Weeks 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 performance stable Local Service Measurement (LSM) is no longer a metric that CSX uses to manage its operation
Local Service Measurement1
94%
100%
95%
90%
90%
81%
84%
83%
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 Weeks
42
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 at lowest level in measurement period Delayed cars have returned to normal levels (