Operational Transformation-143
The Situation:
A railroad providing inter-modal services to domestic and international shippers had reached the maximum number of eastbound double-stacked trains due to rail constraints, while the volume of international containers is increasing. The Highland Group was asked to assist the client in increasing the railroad’s capacity.
The Driver Goal:
- Increase eastbound train density by 25% within two calendar quarters
- Increase eastbound train density by 33% within one year
Actions Taken:
- Specified the ‘ideal’ types of equipment to be used in the hauling of international container freight to maximize density
- Specified the minimum length of train by origin-destination city and pair to ensure the maximum amount of containers are hauled per train in a lane
- Implemented the use of ‘dedicated’ train sets for international traffic between certain origin-destination city pairs
- Implemented a process for ‘purifying’ car kind sent to international hubs to ensure the proper equipment is in place to construct maximum density trains
- Designed and implemented a system to manage all the above activities at international hub terminals
- Assigned accountability for monitoring and reporting all the above activities to one individual
The Results:
- All targets were met prior to goals
- The increased density of trains reduced the overall number of trains operated in the international lanes and generated in excess of $35,000,000 in savings, and avoided large capital expenditures
- Project payback of 44.8 to 1
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