In a press release announcing the hearing, Board Chair Martin Oberman blamed Precision Scheduled Railroading, an obsessive desire to lower operating ratios and drastic workforce cuts for the . Jul 22, 2021 By now, precision scheduled railroading has become the new religion the Class 1 railroads have axed 33% of their workers through layoffs Admin and maintenance service is falling behind in the age of Precision scheduled railroading (PSR) is a railroad strategy that uses departure schedules and point-to-point delivery methods to achieve low operating ratios and consolidate railroad networks. Precision Scheduled Railroading keeps making appearances (in life and in discussion here) like an insidious game of Whac-A-Mole. and carriers are regularly operating trains up to three miles long. Control Costs: Eliminate unnecessary costs. Meanwhile the time allowed to turn the cars went from 48 to 24 hours. Luke SharrettBloomberg via Getty Images. . Precision railroading or precision scheduled railroading (PSR) is a concept in freight railroad operations pioneered by E. Hunter Harrison in 1993, and adopted by nearly every North American Class I railroad.It shifts the focus from older practices, such as unit trains, hub and spoke operations and individual car switching at hump yards, to emphasize point-to-point freight car movements on . Photo by Justin Franz. Harrison introduced the practices of precision scheduled railroading (PSR) that he had used successfully at the Illinois Central Railroad, Canadian National Railway and Canadian Pacific Railway. The rail industry in North America is in the throes of tumultuous changes, collectively known as "Precision Scheduled Railroading" (PSR). Gravity carries great sway over train speeds on river (level . Compared to the 2019, overall shipment speed in key corridors from Kansas City and Chicago to the west coast has increased by 2.6 - 3.9 days. The problem is, those guys live in a 'perfect world'. This is a railfanning trip out to see if I can understand the effects of Precision Scheduled Railroading on CSX in my area. But of late, the gains in the CSX stock price have slowed noticeably. Precision Scheduled Railroading FRCA Position FRCA supports legislation that would examine how certain rail carrier operating practices, such as Precision Scheduled Railroading (PSR), are impacting freight rail shippers including their effect on demurrage and accessorial charges and overall service problems. At one railroad, the 2013 the fine was $50 a day per car. PSR has grown in popularity, already being implemented at most Class I railroads across North America including Canadian National Railway (CN), Canadian . VIA's Canadian is an extreme victim of CN's PSR program. Precision scheduled railroading (PSR) has introduced a new dimension and meaning to the old adage, "Uphill Slow, Downhill Fast, Profits First, Safety Last ," too wit. The implementation of PSR is clearly due to pressure from Wall Street, and their short-term thinking. A worker looks at equipment. However, a new problem is coming down the track from the opposite direction - the macro environment is cancelling . Things began to change at CN in the latter part of 1999 when precision railroading kicked in. On April 26, SMART Transportation Division President Jeremy Ferguson and three members of the union shed light April 26 on the devastating effects Precision Scheduled Railroading (PSR) has had on customers and labor alike before the Surface Transportation Board (STB). Harrison introduced the practices of precision scheduled railroading (PSR) . If you measured in hours everything got more precise. On Demand. While politics is part of the PSR idea and its subsequent problems, it is, at this time, much more an infrastructure and supply issue. JOC Inland Distribution Conference Panelist and Knichel Logistics President Kristy Knichel discusses 2020 customer budget concerns, opportunities, and the ups and downs of precision scheduled railroading. Friday, October 15, 2021. . precision scheduled railroading on freight shippers or passenger railroads. 8 min read. CSX shares have been the best of any railroad over the past three years, rising 134% against the Dow Jones U.S. Railroads Index's 88% gain. I caught some new EMDs and some o. Issue Background But CEO Jim Foote says its operating system implemented five years ago, called Precision Scheduled Railroading, is not the problem. Precision Scheduled Railroading or PSR is defined as "the operational method of running a railroad for maximum asset utilization by which freight movements are scheduled and managed on the individual carload (rather than entire train level)." In layman's terms, the goal of PSR is to keep cars moving, reduce dwell and operate a balanced . A problem with this reality is that frontline workers are not receiving adequate training on how to safely operate these . The second chapter is the so-called Pivot to Growth, in which the lean-and-mean railroad uses its lower costs and more Union Pacific's decision to begin precision scheduled railroading this month marks a turning point for the industry: A majority of Class I railroads in North America now operate under this model. And precision scheduled railroading was a big reason why. In recent years, most major U.S. railroads have adopted Precision Scheduled Railroading (PSR), a new operating model intended to streamline rail operations. usageassuming that massive trains don't suffer more frequent problems that cause . But the railroads also use these "demurrage and accessorial" fees as a form of price-gouging. That is, you know exactly how a car is supposed to move - which trains - which yards - what connections - and when it will arrive at the customer or interchange. Although almost all of the Class I railroads have been deploying precision scheduled railroading (PSR), an operational model that seeks to . It went on to say that short, frequent services got over the road easier. Since the first U.S. freight trains departed from Baltimore nearly 200 years ago, the freight rail industry has served as the backbone of domestic commerce, providing reliable, safe and responsive service and in the process creating and sustaining good union jobs. The actual point of Precision Scheduled Railroading is to run only the 'train you need', at the time you and your customers need, so that it makes best use of your assets and plant and arrives when you (and your customers) expect.. Not as quickly as possible, not as directly as possible, not necessarily as cheaply as possible, but with very careful control over the equipment and assets and how . Harrison figured you should be able to find problems, track them . Finished vehicle traffic moved with other freight on longer, slower trains. Precision Scheduled Railroading (PSR) is a duplicitous term substituted for Precision Stock Manipulation (PSM). . PRECISION SCHEDULED RAILROADING: UNDERSTANDING HOW IT IMPACTS RAILROAD SAFETY, SERVICE, AND INFRASTRUCTURE INVESTMENT THIS MEANS: Total railroad employment has declined, with railroads slashing tens of thousands of jobs, even before the COVID-19 pandemic. Precision scheduled railroading "has led to significant operational problems for U.S. manufacturers and exposure to unavoidable charges," says Jeanne. How the railroad will fair in 2020 is less certain due to dips in freight volume that have affected all Class I railroads to . On June 25, 2019, FRCA participated in a House Railroad, Pipeline and Hazardous Materials Subcommittee Railroad Shipper's Roundtable. 2019 JOC Inland Distribution Conference, Chicago LOMBARD, Ill. Precision-scheduled railroading (PSR) is an outdated phrase, Union Pacific Railroad CEO Lance Fritz told the Midwest Association of Rail Shippers' Winter Meeting in Lombard, Illinois, Wednesday. Covid had a huge effec. "Precision Scheduled Railroading" (PSR) is a euphemism for a railroad industry practice that ensures short-term profits for the benefit of the "Wall Street Jackals", at the expense of the safety and vitality of a great American railroad. Many of Amtrak's delays can be blamed on this. That makes sense if shippers use railroad yards as free warehouse space, a problem that has plagued ports. Every railroad practices a form of Precision Scheduled Railroading. Wall Street's support of precision scheduled railroading is less about efficiency than it is a money grab, writes Rep. Peter DeFazio. View 24/7. If you believe the storyline, Precision Scheduled Railroading has two chapters. In a recent report, Moody's concludes the shift "may lead to service improvement." Railroads service levels lagged in 2017, due to high freight demand . Three times in the past month I have heard rail executives utter the same phrase about Precision Scheduled Railroading: "It's not rocket science." And when you listen to skeptics of PSR, you get the feeling that the operating model is nothing more than Railroading 101. . Under PSR, railroads are seeking to cut or offload their costs . In a commentary . America needs an efficient rail network. In fact, shares are down 7% over the last year while the . If a train was scheduled to leave at 8am, Harrison wanted it to leave at 8am, whether there were 60 or 100 cars. The shippers outlined a gamut of issues, including railroads not picking up carloads in a timely manner, skipping scheduled switches, and customer service departments that are hard to reach or feel non-existent. In 2018, the Class 1 railroads collected $1.2 . The heart of it is having an operating plan that allows you to schedule shipments. Five Foundations of Precision Scheduled Railroading. With the implementation of Precision Scheduled Railroading, some dedicated vehicle trains no longer operated. It has become clear the past few months that Precision Scheduled Railroading is now becoming the industry standard, with all but one the Class 1 railroads, either fully implementing PSR, or implementing parts of it. Their testimony came on the first day of STB's hearing on "Urgent Issues . The study request letter and accompanying T&I Committee press release can be read here. CSX shares have been the best of any railroad over the past three years, rising 134% against the Dow Jones U.S. Railroads Index's 88% gain. Precision scheduled railroading (PSR), also referred to as precision railroading, is a concept in freight railroad operations that arose in the 1990s. . There were more connections for a car to make. Today, it is $200. "Even with an operating model based on precision scheduled railroading, railroads will periodically experience . (Photo: Jim Allen/FreightWaves) Although almost all of the Class I railroads have been deploying precision scheduled railroading (PSR), an operational model that seeks to streamline operations, for several years already, a number of issues keep the debate over its value alive. Precision Scheduled Railroading: Define, Measure, Forecast. Faster trains and better service resulted in better market share - and yield followed." Precision Scheduled Railroading Threatens to Gut America's Freight Rail System. Jim Foote Speaking at a June 2 investor conference sponsored by Bernstein Research, Foote said the Jacksonville-based railroad company's workforce has not recovered from the impact of the coronavirus pandemic. Precision Scheduled Railroading (PSR) looks a little different from railroad to railroad, but at its core it's intended to benefit customers by providing consistent, reliable, predictable . Washington Metro on possible track issues behind rail car wheel problems: 'WMATA is treading carefully' . As relayed during the STB Oversight Hearing on The . They are: Provide Service: Do what you say you're going to do. And precision scheduled railroading was a big reason And precision scheduled railroading was a big reason . And House Transportation Committee . There is a lot of talk about Precision Scheduled Railroading, or PSR, in the industry. In his book, "How We Work and Why," published while he was chief executive at CN, Harrison outlined five guiding principles. The first is an obsession with costs and efficiency that ultimately results in a railroad that moves its tonnage with far fewer locomotives, freight cars, shops, yards, and people. The fraudulent concept of Precision Scheduled Railroading, which has the real goal of pumping railroad . The high powered units were chosen to speed up the schedule over what the older power could muster, since a typical 3 unit set of GP40s offered 3000 more horsepower than the 3 unit sets of GP38s. Despite its name, PSR: Optimize Assets: Use assets more efficiently and . The only real problem with . But unwise cuts threaten safety, harm rail customers, and jeopardize economic growth. This operating plan has been propelled into the forefront in recent years by the . Canadian Pacific (TSX: CP) (NYSE: CP) today released a white paper detailing how the precision railroading philosophy - which has been used successfully to elevate CP from industry laggard to leader over the last four years - would transform Norfolk Southern Corp. (NS) and eventually build a leading transcontinental railway in North America. "Precision Scheduled Railroading is just doing less with less." An autorack train pulls into Whitefish, Mont. Precision scheduled railroading is not a panacea for service problems, however. . And precision scheduled railroading was a big reason . Railroads have closed switch yards and other facilities, and reduced infrastructure . View Now Only $149. All the day-to-day obstacles such as bad . The short answer is it's a new service model many North American Class I railroads have adopted or are adopting in an effort to streamline operations. Probably the worst idea railroading has ever seen. However, a new problem is coming down the track from the opposite direction - the macro environment is cancelling out any gains made by PSR . The takeaway from a Washington Examiner article published Nov. 16 regarding recent supply-chain snarls is that rail labor's desire to maintain the current standard level of personnel a certified conductor and a certified engineer aboard the monster freight trains brought by the rail industry's Precision Scheduled Railroading (PSR) scheme will make things worse [] It's designed to make rich Wall Street types even richer. The Government Accountability Office recently began a study into precision scheduled railroading. Executives from Canadian Pacific, Canadian National and Kansas City Southern are also invited to partake in the hearing, scheduled for April 26 and 27. As of late 2018, there is no major rail carrier that is immune from the convulsions that are taking place in our industry. Although it's called Precision Schedule Railroading, it is neither precise nor scheduled. and vitality of the US economy, environment, or even of the rail industry itself. 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