Posts Tagged ‘CSX service metrics’

CSX Service Metrics Were Mixed in June

July 8, 2017

CSX has encountered growing pains in implementing the precision scheduled railroading operating philosophy of its new CEO E. Hunter Harrison.

Trains magazine reported that although average train speed has improved since Harrison took over in March, it fell last month compared to what it was in May.

The magazine reported that terminal dwell time is slightly higher than when Harrison took over with some yards showing significantly higher dwell times than during the last week of May.

“As CSX implements Precision Scheduled Railroading across our network, some variation in performance metrics such as train velocity and terminal dwell are expected,” CSX spokeswoman Laura Phelps said. “CSX will continue to make adjustments as we identify new opportunities to improve asset utilization and control costs, while maintaining a relentless focus on serving our customers.”

She noted that the speed of intermodal and merchandise trains has improved when compared with what it was a year ago.

In the first few months of Harrison’s administration, transit time was down and on-time performance was up due to trains moving faster, stopping at fewer terminals, and cars spending less time in yards.

But in June CSX gave up some of those gains. Intermodal train speed fell nearly 1 mph, to 28 mph and the speed of manifest freights was down to 19.9 mph versus 20.4 mph in May.

Unchanged was the average speed of coal trains, 18.3 mph. Grain was moving  at 17.9 mph versus 18.4 mph in May

The overall system velocity was 21.3 mph compared with 22.2 in May.

Terminal dwell time through late June had risen to 26.6 hours on average versus 23.7 hours in May and 25.1 hours in the second quarter of 2016.

Among the CSX terminals reporting increases in dwell times were  Baltimore; Buffalo, New York; Cincinnati; Corbin, Kentucky; Indianapolis; Louisville, Kentucky; Montgomery, Alabama; Nashville, Tennessee; Russell, Kentucky; Toledo, Ohio; Waycross, Georgia; and Willard, Ohio.

On competitor Norfolk Southern, terminal dwell has increased system wide to 26.8 hours, up from 24.7 in May and 23.1 in the second quarter of 2016.

CSX Says On-Time Performance is Up 52%

May 19, 2017

A CSX executive this week touted improving performance metrics over the past two months, including a 52 percent improvement in on-time performance.

“We’re at the beginning of an amazing transformation,” CSX Chief Financial Officer Frank Lonegro said at the Bank of America Merrill Lynch 2017 Transportation Conference.

Lonegro said train velocity has risen by 14 percent and terminal dwell time has fallen by 11 percent.

On-time originations rose 16 percent to 91.6 percent while on-time arrivals jumped to 87.6 percent from just 57.8 percent.

Lonegro largely credited the improving metrics to new CEO E. Hunter Harrison’s precision scheduled railroad operating philosophy.

Harrison has been at CSX for 10 weeks. “He really has hit the ground running and has begun to implement precision scheduled railroading across our railroad,” Lonegro said.

During his presentation, Lonegro said CSX has become more efficient by hauling the same amount of tonnage on fewer trains.

Although its revenue-ton miles have held steady while the active train count has fallen by 15 percent, Lonegro said that will continue to improve.

He said CSX is creating a train plan that keeps terminals fluid and reduces the need for handling en route.

“Hunter’s philosophy is move the freight as far as you can as fast as you can and touch it as few times as you possibly can,” Lonegro said.

One highly visible change at CSX has been a reduction in hump yards. That is at odds with how CSX has operated.

“At CSX historically we have been a big believer that the most efficient way to class[ify] traffic is through a hump yard,” Lonegro said. “Hunter has totally debunked that.”

CSX has converted hump yards in Toledo, Ohio; Louisville, Kentucky; Hamlet, North Carolina; and Atlanta to flat-switching.

Reports have surfaced that yards in Cumberland, Maryland; and Selkirk, New York, will also lose their humps.

Lonegro said CSX is evaluating its eight remaining hump yards and expects to convert some to flat switching in the second quarter of this year.

In doing this, CSX has changed is operating plan so that traffic bypasses the yards except for cars destined for that location.

CSX will likely have between two and four active humps by the time the evaluation process is completed.

Lonegro also reported that CSX has stored 551 locomotives and parked, scrapped, or returned more than 22,000 freight cars.

He said the operating changes have thus far not prompted shippers to shift their business to Norfolk Southern.

“We’re really not seeing any market share shifts,” Lonegro says, although he acknowledged that there is a potential for service missteps that could anger some shippers.

Nonetheless, he said CSX expects to satisfy customers by providing faster transit times, improved on-time performance, and better cycle times of freight cars.

The better service and lower costs, he said, should enable CSX to grow its business, particularly at the expense of trucks.