The evolution of Service Planning in Transnet Freight Rail

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The evolution of Service Planning in Transnet
Freight Rail
Rail Planning Workshop and MultiRail Users
Conference Princeton, New Jersey,21-23 October
2008
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1863 to 2008 145 years of evolution
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Agenda
Where is Transnet Freight Rail?What does our
network look like?The role of Service Planning
in the Business ProcessService Planning
challenges in a South African contextService
Planning in the late 1900sNew Service Planning
focus
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South African ports are important links to most
continents
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Southern African Rail Network
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Transnet Freight Rail Network
30 of the core network carries 95 of general
freight tons
Heavy Haul (Iron Ore export)
Heavy Haul (Coal export)
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The role of Service Planning in the Business
Process
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Generic Planning Process Key Elements
Strategy Business Environment
Information-Communication Technology Management
(ICTM) Plan
Safety Plan
Corresponding safety plan for the change in
operational activities
Tons revenue by sector, commodity, OD-pair,
customer, corridor
Train and yard personnel to staff the required
integrated train plans
Marketing Sales Plans
Operations Plan
Human Capital Plan
Required train schedules individual service
designs
Maintenance costs to realise the scheduled train
service
Maintenance Plan
Capacity Plan
No investment
Required number of locomotives, wagons, crew and
network (infra capacity)
Engineering Plan
Investment
Capex required to increase rolling-stock infra
capacity to required levels
Investment Plan
Financial Plan
Pro forma financial statements that highlight
revenue, Opex and impact of Capex on the
bottom-line
Risk Identification Mitigation
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Service Planning Challenges ..
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Transnet Freight Rail Network
Locomotives can only be deployed on certain lines
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Transnet Freight Rail Network
Different maximum axle loads have to be considered
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Transnet Freight Rail Network
Different train authorisation systems affect
point to point running times
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Different services require different operating
models
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Service Planning in the late 1900s

• Up to the mid 1980s services designs were mostly
  based on a push philosophy
• Working timetables were produced to handle wagon
  load traffic
• Wagon loads were pushed from yard to yard in the
  general direction required
• Yard productivity was measured on whether it was
  cleared at the end of a shift
• Transit times were long as there was little focus
  on handling consignments efficiently
• In the late 1990s a pull philosophy were
  slowly introduced (Predictable Service)
• Wagon load trains were serviced by a
  hub-and-spoke network of 32 major hub-yards and
  connecting links
• Trains were scheduled through the network with
  defined trip plans and point to point running
  times based on actual test trains
• Individual highly customised train designs were
  produced from these schedules to suit individual
  customer requirements
• Trains were switched on by a demand trigger
  called the Next Weeks Business
• Consignments were reserved on wagon load trains
• Last system wide analysis and implementation of a
  country wide (national) train plan based on these
  principles was in 1998
• Used RPM (Rail Planning Model)
• Since then only customer specific designs and
  corridor focused changes were introduced without
  redesigning the entire network (incremental
  approach)

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New Service Planning Focus

• Incremental additions to the national train plan
  resulted in
• Sub-optimising of individual service corridors
• Complicated blocking rules linked services and
  shared train slots
• Duplication of trains with insufficient wagons
  per train
• Widely differing daily schedules to accommodate
  customers that do not have daily consignments
• Complicated crew working relying on trains
  keeping to running times
• Excessive yard shunting with resultant high
  costs, risks and transit times
• As part of Transnets growth strategy, a decision
  was taken to redesign the national train service
  plan from a clean sheet perspective (Zero Base
  Operating Plan)
• To have a fixed, simple and repetitive weekly
  time table
• Maximize the number of mandatory trains and
  provide capacity for additional traffic
• Minimize the number of times a wagon is handled
  to improve current train transit and wagon
  turnaround times
• Substantially reduce the number of marshalling
  yards and redesign the blocking rules accordingly
• Quarterly updates on the Zero Base Plan to
  address new market operational requirements

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Design Objectives for Zero Base Operating Plan
Reason
Design Objective

• To achieve minimum 30 wagon train size for 1
  train in and out per day
• To achieve daily service (At least 5 days/week)

• Must handle at least 60 wagons per day

Ops Yard

• To achieve maximum efficiency for 24 hour
  operation
• Originates and terminates 1 train per hour (20
  trains in, 20 trains out per day

• Must handle at least 600 wagons per day

Hub Yard

• Simplifies planning and execution
• Maximizes utilization of ring-fenced locomotives
  and wagons

• Must handle minimum 30 wagons per train
• Must operate at least 3 times per week

megaRAIL Trains

• Simplifies and standardizes plan
• Provides better utilization of locomotives and
  wagons
• Concentrates management focus on handling
  deviations to plan

• S1 and S2 average train size of 30 wagons
• Must operated at least 5 days/week

accessRAIL Trains
Repetitive Plan

• Manage the exceptions
• Predictable safe working environment

• Daily Service

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Example Combine irregular wagon load traffic
into regular full trainsThe new plan will move
traffic more regularly and reliably

• The objective of the new plan is to improve
  service and reduce costs through
• Improved train capacity utilization on the vacuum
  brake network
• Improved locomotive and wagon utilization on all
  trains, with a particular focus on the vacuum
  brake train network

Old Schedule

• Timber from MAM to RCB and/or MWI 11 trains/week
• Ferro-manganese from COR to RCB a few days/week.
• Any day 2 or 3 short trains operating between MAM
  and RCB.

New Plan

• One train daily to handle all three flows.DAILY
  OPERATION!

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Example Densification of the core networkFocus
train density on core network to improve train
capacity and locomotive utilization
Vacuum Traffic Flows
TFR Network to Bypass BFX

• Cape Corridor becomes main trunk
• Increased time partially offset by elimination of
  1 locomotive change
• Improved network density
• Lower maintenance costs
• Reduction in overheads
• Better asset utilization
• Larger train sizes

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Operating Plan Implementation To achieve the
Zero based Plan benefits, a well conceived
implementation plan PLUS an operate to plan
culture is needed requiring 2 cultural shifts
1. Plan Driven Operating Results
2. 100 Operate to Plan

• Issue mandatory fixed train plan for
• - megaRAIL AND accessRAIL
• Pre-allocate all
• Locomotives - Crews
• Slots - Wagons
• Minimum 5 days/week
• Simplifies resource planning AND plan execution
• Maximizes asset utilization
• Conditional flexiRAIL trains
• Operate only AFTER resources to mandatory trains
  allocated (plus sufficient slack)
• Planned 7 days in advance and updated up to 48hrs
  in advance (as markets require)
• Quarterly review of mandatory fixed train plan to
  accommodate market and operational changes

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Operating Plan Implementation To achieve Zero
based Plan benefits careful implementation plan
PLUS an operate to plan culture is needed
requiring 2 cultural shifts
1. Plan Driven Operating Results
2. 100 Operate to Plan

• All TRAINS must run to plan regardless!
• This positions resources correctly for ongoing
  maximum utilization for
• Locomotives
• Wagons
• Crews
• Enables management of exceptions only
• Predictable, safer working environment

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Operating Plan Implementation (Our credo)To
achieve the cultural shift - perseverance and a
methodical approach is required

• We require persistence to address
• Geography
• Scope of activities, and
• Cultural change
• All work will be aligned with existing TFR work
  streams and initiatives
• We will communicate early and clearly so everyone
  understands the plan, its objectives and their
  individual responsibilities
• We will measure performance constantly to ensure
  success
• We must be prepared for when deviations occur
• Create Recovery-to-Plan capabilities
• Position spare resources strategically to
  facilitate recovery-to-plan
• Assess and eliminate root causes, through process
  analysis and improved designs
• Schedule to typical, achievable running times,
  not the best possible running times
• Consistent, repetitive trains are preferred to
  minimum transit times with high variability

Implementation will not proceed to the next route
until all agreed upon targets have been met
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Our new baby is here . Wish us good luck!
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Thank youAny questions?