MUAR Shipment Quality

Transcription

1 1 MUAR Shipment Quality

2 2 MUAR Mission Statement Continuously improve the automotive rail process for Mexico related shipments that drives timely and damage free transportation of finished vehicles while ensuring the appropriate supply of empty multi-levels & railroad infrastructure to support Mexico demand.

3 3 MUAR Objectives Reduce Damage to Vehicles Increase overall Security Improve Mexico Infrastructure Reduce Mexico Empty Dwell Maintain Empty Supply Listen & Understand OEM Voice Increase Multilevel Velocity

4 4 4 Time Line - Vehicle Production in Mexico VW opens in Puebla Nissan Aguas Opens Ford Cuautitlan Plant Upgrade Ford-Cuautitlan Vehicle Assembly begins GM Silao Opens Chrysler Toluca Plant Upgrade Ford opens Cuautitlan Chrysler opens in Toluca Nissans Cuernavaca Opens GM Rojas Opens Chrysler Saltillo Engine Plant Opens Chrysler Saltillo Opens GM Silao Engine Plant Opens GM Silao Transmission Plan Opens

5 5 5-year Automotive Growth 3 new plants operational in 2014 Honda Mazda Nissan 5 or more New plant and/or plant expansion in the next 5 years GM SLP expansion Audi Nissan Aguascalientes #3 expansion 2017 Toyota Share production time with MAZDA (50k vehicles) 2015 BMW 2018 (Locations TBD) Others + Organic growth existing plants + Raw Material / Parts for new plants and expansion

6 PLANT TIJUANA TBD PLANT HERMOSILLO PLANT CHIHUAHUA PLANT MOTORS RAMOA ARIZPE PLANT SALTILLO PLANT SALTILLO 2013 PLANT RAMOS ARIZPE PLANT AGUASCALIENTES PLANT CIVAC PLANT PUEBLA PLANT S.L.P PLANT 2 AGUASCALIENTES 2014 PLANT EL SALTO PLANT AUDI 2016 PLANT SALAMANCA PLANT CELAYA 2014 PLANT SILAO PLANT MOTORS 2013 PLANT TOLUCA PLANT TOLUCA PLANT CUATITLAN

7 7 7 Mexico Finished Vehicle Production Forecast (in millions) Estimated 1.0 m incremental production growth from 2013 to 2018 Increasing to 4-6 trains per day (avg. 68 railcars per train)

8 8 Demand for Finished Vehicles from Mexico 85% of vehicles produced in Mexico are for Export 65% US & Canada Of the 85% Export: 65% are destined for US/CAN 35% for Rest of the World 15% for Intra-Mexico market Of the 35% exported for Rest of the World: Veracruz exports 70% Lazaro Cardenas exports 20% Others export 10%

9 9 Infrastructure - Mexico Mexico railroads are aware of the incremental volume & preparations are well underway. 36 capital projects started in Mainline New Sidings Sidings Extensions Double Track Switches Bridges Increase Yard Capacity 582,000 million pesos (US $46.5 bill) in investments for Transportation and Infrastructure.

10 Mexico Rail Infrastructure Projects ) Sanchez 2) Sanchez yard 3) Salinas Victoria 4) Ruben Jaramillo 5) Vanegas 6) San Luis Potosi 7) Ahorcado 8) San Cristobal 9) Maravatio 10) Ixtlahuaca 11) Toluca 12) Corondiro 13) Los Chivos 14) Palm Island 15) Mezquital 16) Gavilán 17) Obayos 18) Sierra Azul 19) Ext. 20) Carlos Pereyra 21) Bajan 22) Venus 23) Hipólito 24) Rivas 25) Mezquitillo 26) Pimienta 27) San Jerónimo 28) Guadalupe 29) Carbonera 30) Ext. 31) Ext. 32) Doble 33) Las Cruces 34) Guanajal 35) Ext. 36) Endo Improve Train Velocity Reduce Dwell /9/2014 Information provided by FXE and KCSM

11 11 Celaya By-pass To San Luis Potosi KCSM 22 Jocoqui KCSM MEXICO 45 D Irapuato Highway Celaya 0 15 Queretaro Highway MEXICO 45 D Temporary Celaya Connection Between NB-AM to serve Honda 2013 (100%) Queretaro Freeway MEXICO 45 Honda 5 0

12 12 Shipment Quality Initiatives Collective Effort to Reduce Damage Rate TAG should establish team to create actionable plans Championed by OEMs and Origin Railroads UP and BNSF provides inspection data and support efforts Actionable initiatives for each origin should be established Use the data to drive the direction of the TAG Create proper communication format Members can meet at VEQ to discuss progress Long Term Goals Reduce damage rate to.1, possibly by 2015 Sharing best practices should result in claims cost saving Quality improvements may also reduce the amount of inspections needed

13 13 MUAR TAG Initiatives for Damage Reduction (Mexico Theft and Vandalism) Define Data Base Structure. Clarify RR Liability and Responsibilities. Clarify RR Efforts to Provide a Damage Free Transportation. Identify biggest single exception for each origin. Address to OEMs the request to standardize all inspection and inspection criteria with AIAG and AAR.

14 14 Define Data Base Structure. FXE and KCSM have agreed to use UP and BNSF data to base action items on reported damage frequency and vandalism: - AIM Laredo, TX - AIM, SOS Eagle Pass, TX - AIM, Merchant Security El Paso, TX

15 15 Clarify RR Liability and Responsibilities RR personnel, (in most cases) do not manipulate keys, key fobs, batteries and other accessories. RR serves as Transportation to ensure delivery of commodity in a timely manner. RR inspection of vehicle in focused mostly on the outside damage to the car body.

16 16 Clarify RR Efforts to Provide a Damage Free Transportation Security measures which are currently in place Rail Inspection Portal Scanning of Seals on Security Filters Technology Tools Used Door Protection

17 17 Proposed Joint Efforts Vandalism Theft needs to be addressed in a joint effort with Plant Security, RR Security & other Damage Prevention measures. (inspection procedures) OEM & RR need to communication to state and local government entities for support to improve security in known problem areas in transit routes. Notice to general public that keys are only possible to be programmed once to vehicle. Make them less attractive. Recommend for keys fobs and other accessories to go in trunk or accessory bag.

18 18 Rail Inspection Portal In some areas, trains pass through a system of digital imaging high speed. Using portals inspection, the rail cars are monitored throughout the route: and when delivered, RR documents the conditions of the cargo and its seals. Train Rider Detection System (TRIDS) automatically captures, inspects, and processes the images in real time of freight trains moving at speeds up to 70 miles per hour, looking for strange people, and vulnerable cargo, this is to reduce the need to stop the trains for inspections. And to keep the train speed along the route.

19 19 Scanning of Seals on Security Filters Placement of Security Red Flag seals on Rail Cars. Scanning of seals Seals Monitor by Security Filters.

20 20 The Application of Technology Tools The National Dispatch Center in Monterrey, NL. allows a real tracking of trains along the line. VACIS scanning system running in Lázaro, Nuevo Laredo and Laredo - X-ray pictures of the cargo. - Radiation scanning. CCTV MCS System High-speed Digital Images System on the B-line in Saltillo And San Luis Potosi. DUOS System. Scanning of High Security Seals.

21 21 Security Door Protection Door Protection Wiring on upper vertical bars 50 cm Wiring on upper horizontal bars 95 cm Wiring on upper horizontal bars Wiring on left side panel Wiring on upper vertical bars Wiring on right side panel Wiring on lower vertical bars Amarre aldaba

22 22 Califas Door Protection Ironman (Only used from Lechería to Veracruz).

23 23 Door Protection Additional actions to prevent and avoid vandalism and theft -Application of Monitoring Stickers on top of the racks covering the open space on the upper end of the door and the upper body of the rack. This sticker allows security inspectors to clearly note a manipulation of the doors if the sticker is broken or missing at the check points or detentions of train and immediately notify and ask for detailed inspection to confirm if there are missing parts. Train and racks are monitored at different points of detention defined to change train crew or yard:

24 24 Railcars are Susceptible to Vandalism Multi-levels are arriving to destination or border interchanges with origin intact seals and found with missing items. Theft in Mexico has been targeted mostly to multi-level type doors which may have wide side opening between the ladder and the side panel as well as those which have opening in which a baffle plate or chain can be removed or some have opening in which people can fit into. 49.9% (8,777 tri levels and 18,797 bi levels) of the Reload fleet is equipped with the radial door design. However, we understand that not all these multi-level doors have wide side openings or areas in which can people can fit into.

25 25 25 What additional preventative measures is RR taking to eliminate theft and vandalism? When identified that theft occurred due to door type or side opening, request to customer service and/or fleet distribution, to remove these from Mexico service and help prevent from these railcars being loaded if possible b/c they are not secure. We follow up and communicate with origin and destination (Security) when we detect railcars that have been tampered in order to avoid vandalism. When we detect missing items we communicate with all protection teams, to reinforce inspection and escort in route to locate where theft is occurring. Surprise audits and inspections

26 Example: Railcars with Wide Side Openings 26 26

27 These Railcars are Susceptible to Vandalism 27 27

28 These Railcars are Susceptible to Vandalism 28 28

29 These Railcars are Susceptible to Vandalism 29 29

30 These Railcars are Susceptible to Vandalism 30 30

31 These Railcars are Susceptible to Vandalism 31 31

32 32 Address to OEMs the request to standardize all inspection and inspection criteria with AIAG and AAR. Standardized Damage Identification Codes Standardized Damage Severity Codes M22 Finished Vehicle Transportation Damage Standards and Guidelines Multi-level Manual Section III