MARCH 27, 2018 STB UPDATE

Transcription

1 MARCH 27, 2018 STB UPDATE

2 Network service levels improved despite late winter storms Velocity, dwell, originations and arrivals improved Right Car Right Train performance steady Crew and power resource levels well matched to demand Hump yards performing reliably and efficiently Western terminals performing well Car fulfillment settled higher, averaging over 100% year-to-date Local pull and place measure healthy Customer problem logs remained at lower levels Interchange volumes current and gateways fluid 2

3 Measures improved week-over-week On Time Originations (%) On Time Arrivals (%) Weekly Average 100% 80% 60% 40% 20% 80% 81% 84% 80% 84% 84% 81% 83% 84% 80% 77% 78% Weeks 82% 85% 82% 83% 77% 72% Mar. 17 Mar % 100% 80% 60% 40% 20% 69% 73%78% 68%79% 75%70% 68% 70% 67% 61% 63% Weeks 64% 73% 74% 75% 74% 58% Mar. 17 Mar % On-Time +2 hrs On-Time +2 hrs Dwell (hours) Velocity (mph) Weeks 10.0 Mar. 17 Mar Mar. 17 Mar. 23 Weeks 3 Note: Dwell and velocity displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics dwell and velocity exclude the Hurricane Irma-impacted period for terminals that held cars and specific trains held through storm, respectively.

4 Velocity continues to significantly outperform 2017 levels Velocity (mph) 20 Improvement Degradation Full Year Avg 18 Velocity Avg 15.1 MPH PSR Implementation Week Height of Service Disruption STB Listening Session 20 consecutive weeks of velocity performing above 2017 full-year average 4 Note: Velocity displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics velocity excludes specific trains held through Hurricane Irma.

5 Dwell healthy, well below prior year levels Degradation Improvement PSR Implementation Dwell Gross (hours) Dwell Full Year Avg Height of Service Disruption STB Listening Session Dwell Avg 11.3 hours Week Excluding holiday weeks, 26 consecutive weeks of dwell below 2017 full-year average 5 Note: Dwell displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.

6 Right Car Right Train stable 90% 85% Right Car Right Train 1 Weekly Average Right Car Right Train is no longer a measure that CSX uses to manage its operation In scheduled railroading, if a car can be advanced on another train to speed transit or ensure its on-time arrival, there is not one right train 80% 75% 70% 79% 77% 75% 71% 75% 75% 73% 76% 76% 76% 74% 74% 74% 69% 73% 74% 75% 75% 75% Car priority is to move cars quickly, on next available train Asset utilization a key tenet of scheduled railroading 65% 60% 55% 50% Mar. 17 Mar. 23 Weeks 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 6 1 Right Car Right Train is defined as the percentage of cars that departed from a yard in accordance with their car scheduling trip plan

7 Resourcing appropriately to meet business needs Active Locomotives Train & Engine Headcount and Re-crew Rate 1 3,800 9,800 12% 3,400 3,368 9,400 9,365 10% 3,000 2,600 3,025 2,979 2,881 2,857 2,886 2,877 2,871 2,862 2,891 2,906 2,905 2,893 9,000 8,600 8,200 7,800 8,760 8,680 8,612 8,558 8,509 8,461 8,469 8,456 8,442 8,442 8,452 8,474 8% 6% 4% 2,200 7,400 2% 1,800 7,000 0% 2018 Weeks 2018 Weeks Expect locomotive levels to continue coming down in concert with network velocity improvement Expect headcount decline to continue with network improvement; recent uptick reflects coal demand Power and crew availability steady at approximately 99% and 95%, respectively 7 1 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)

8 Hump yard performance steady CSX Hump Terminal Overview Transitioned to flat-switching operations Hump terminals Selkirk, NY Key hump productivity and efficiency measures performing well Total hump yard volumes remain at normal levels, well below capacity of yards Toledo, OH Avon, IN Louisville, KY Nashville, TN Birmingham, AL Willard, OH Cumberland, MD Cincinnati, OH Hamlet, NC Atlanta, GA Waycross, GA Dwell at Hump Terminals 1 Weekly Average Absolute number of humps not good or bad ; goal is best mix of hump and flat yards for processing efficiency Weeks Mar. 17 Mar Dwell displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.

9 Western terminals performing well Western Corridor Key Terminals Key terminal productivity and performance measures healthy, dwell remains below 2017 Avon, IN Nashville, TN Dwell at Western Terminals Weekly Average Birmingham, AL Montgomery, AL Mobile, AL Key Western terminals Weeks Mar. 17 Mar Dwell displayed according to CSX methodology; explanation of CSX methodology can be found at csx.com/servicemetrics dwell excludes the Hurricane Irma-impacted period for terminals that held cars through the storm.

10 Car fulfillment settled higher, averaging over 100% year-to-date 6,000 5,000 4,000 3,000 2,000 1,000 Weekly Car Orders, Customer Empty Idles, and Fill Rate 1 Cars Ordered/Idle Order Fill Rates 110% 100% 90% 80% 70% 60% Over 390 orders filled in week 12 against week 11 open orders, increasing fill to 100% Delivered strong initial fill rate of 88% in week 12 against highest weekly order level year-to-date Empty idle car count trending lower in customer locations, enabling better end-to-end cycles Empty idle cars at a given customer held >24 hours considered available to fill that customer s orders Weeks 50% Weekly Orders 2017 Blended Fill % Order Fill % Customer Empty Idles (> 24 hours) orders and fill rate normalized for Weeks against historical/expected order levels (Q1 2017), as orders were disconnected with demand; starting week 45, improved process leaves orders open for two weeks, counts empty idle cars > 24 hours at a customer location as a filled order for that day

11 Last mile performance measure healthy 100% 90% 80% 70% 87% 74% Local Service Measurement 1 86% 86% 88% 87% 86% 87% 88% 87% 87% 86% 89% Local Service Measurement (LSM) is not a primary metric that CSX uses to manage its operation In scheduled railroading, focus on end-to-end transit and customer expectations 60% 50% 40% However, reliable pull and place expected as part of service to customers 30% 20% 10% 0% 2018 Weeks 11 1 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

12 Customer problem logs remained at lower levels 570 Total Logs in Week at height of service challenges Customer Problem Logs Daily Average Volume Improved communication allowing for faster, more local resolution Accountability for resolution of customer issues resides with field responsibility Escalating and resolving critical issues with senior leadership Enhancing key customer tools and aligning workstreams to allow for easier, more direct connections and self-service 2018 Weeks Delayed Cars Bad Order Switching Issues 12

13 Interchanges current and performing to expectations 800 East St. Louis Daily Average Interchange Volume 2,000 Chicago Daily Average Interchange Volume 600 1, , Weeks Weeks 600 New Orleans Daily Average Interchange Volume 300 Memphis Daily Average Interchange Volume Weeks 2018 Weeks 13

14 Scheduled railroading producing service improvement Operational Focus Service Improvements & Productivity Improvements Balanced Train Plan Improved Frequency Better Reliability Rolling Stock Utilization People Efficiency Terminal Fluidity Faster Transit Quicker Turnaround Fuel Optimization Train Density Improve Service Operate Safely Control Costs Drive Asset Utilization Develop People Accomplishments in 2017: realigned service frequency, balanced train plan, improved terminal efficiency Improved execution on this foundation to drive long-term service and productivity improvements 14