I think that's right.. the whole idea of PSR to to drive cost down through efficiency. Running longer trains is obviously more efficient than running shorter ones so long as other factors like service and safety aren't adversely affected.
I only ask about the relationship of longer trains to PSR because I have read a lot of articles and comments saying that longer trains are a result of adopting PSR. In many cases, these comments are blaming PSR for the problems caused by longer trains. Maybe they are just doing that because they don't like PSR as being the child of EHH.
Euclid What exactly is the relationship between PSR and longer trains? People sometimes indicate that longer trains is one of the facets of PSR. Is it? In a general sense, I would tend to think that longer trains is in conflict with PSR because longer trains tend to be unwieldy and PSR is all about being nimble, just in time, etc.
What exactly is the relationship between PSR and longer trains? People sometimes indicate that longer trains is one of the facets of PSR. Is it?
In a general sense, I would tend to think that longer trains is in conflict with PSR because longer trains tend to be unwieldy and PSR is all about being nimble, just in time, etc.
PSR is more about "sweating the assets" i.e. using locomotives, crew, rolling stock and infrastructure as efficiently as possible than about being nimble and just in time. Longer trains are arguably more efficient than shorter ones where all trains regardless of length require the same crew size... overall fewer crews required. But the flip side of that is that customer service has deteriorated as longer trains require more time to build and handle.
There seems to be a pattern to PSR: at first they (the railroads) buy into it with near religious zeal.. and then after the dust has settled they realize that PSR has to be tempered somewhat to bring customer service back from the abyss. CN is a good example.. 15 years ago it was all about pushing down the OR.. now the OR is nolonger front and center, and they're nolonger concerned about it creeping back up to over 60%.. Their recently hired head of ops doesn't even come from a PSR background.. he's from BNSF, one of the last holdouts on PSR. So at CN at least it appears that they've recognized that PSR isn't quite the magic bullet it was portrayed to be 20 years ago. They're moving to a more balanced approach which involves PSR but where PSR is nolonger front and center as most important.
Overmod, somehow I agree with you. The idea is not to provide good service to customers, but to make money for the investors while quoting Mr. Vanderbilt in the process.
Johnny
EuclidPSR is all about being nimble, just in time, etc.
The whole point of so many recent discussions here is that "PSR" as recently practiced is anything BUT that sort of thing.
The 'precision scheduling' is entirely concerned with knowing where railroad assets are at a given time, and in getting them where the railroad wants by an expected time at an expected cost. To my knowledge, it has little if anything to do with actual 'customer' requirements, or desires: it is strictly for the railroad, by the railroad, and when it is assessed and measured relative to some metric like OR directly, it produces distortions in critical thinking about operations that result in things like the level of 'customer abuse' that is producing such a political backlash.
If, for example, a component of "PSR" was watching and designing efficient response to temporary service interruptions (such as, for example, wrecks or flooding) it would be a Good Thing. But pure-investor stockholders, and managers who think they need to optimize quarterly analyst reports, aren't going to perceive the importance of 'insurance' in the absence of justifying levels of disaster for CYA.
Don't expect this to resolve soon without new regulatory lawmaking. Don't expect it to resolve as a result of any regulatory lawmaking our present or prospective government will make, either.
The railroads have been wonderful for longterm passive investors.. forget about the hedge fund people. If you've been a regular working stiff over the last 20 years and you've diligently saved 10% of your income.. and you've done nothing more than invest those savings in railroad stock and allowed your investment to compound through reinvesting dividends you would be a millionaire today. I guess there is an upside.
BaltACD tree68 zardoz I never could understand that mentality. If I invested in something, I would do what I could to ensure that my investment stayed in good shape, so it could continue to provide me with returns. See, now, you're thinking long term. These folks could care less about the long term - they want max return, now. In a way, they're like gamblers - think slot machines. They know that a machine is due to pay off soon, so they play it, and once it pays off, move on. In this case, it's actually easier. You get an EHH in the top seat, under proper control, buy in, then cash out before the sky falls. That is the hedge fund philosphy - get in, loot the teasury, get out and dump the failure on those that remain. I am amazed that Mantle Ridge is still involved with CSX.
tree68 zardoz I never could understand that mentality. If I invested in something, I would do what I could to ensure that my investment stayed in good shape, so it could continue to provide me with returns. See, now, you're thinking long term. These folks could care less about the long term - they want max return, now. In a way, they're like gamblers - think slot machines. They know that a machine is due to pay off soon, so they play it, and once it pays off, move on. In this case, it's actually easier. You get an EHH in the top seat, under proper control, buy in, then cash out before the sky falls.
zardoz I never could understand that mentality. If I invested in something, I would do what I could to ensure that my investment stayed in good shape, so it could continue to provide me with returns.
See, now, you're thinking long term. These folks could care less about the long term - they want max return, now.
In a way, they're like gamblers - think slot machines. They know that a machine is due to pay off soon, so they play it, and once it pays off, move on. In this case, it's actually easier. You get an EHH in the top seat, under proper control, buy in, then cash out before the sky falls.
That is the hedge fund philosphy - get in, loot the teasury, get out and dump the failure on those that remain. I am amazed that Mantle Ridge is still involved with CSX.
Especially since their boy has been pushing up daisies for a year now. How much longer before the STB says enough is enough on this bull. From what I have been told from our larger customers that also use railroads is that they are about to all sue them for failing to meet contract obligations. We're talking massive amounts of money in legal action that is about to hit the fan. Companies like Sabic plastic Huntsman Chemical Shell BP GM Ford they are all wanting to see the Class 1 railroads in court.
Never too old to have a happy childhood!
....will never make the pages of Barrons, Wall Street Journal or any other financial rag.
Trust me we have had a few people like EHH in the OTR industry also. Trouble is by the time they get caught by the carrier and FMCSA the carrier normally is bankrupt and forced out of business.
Arrow Jevic Falcon and many other companies have all been killed by short term greedy leadership. Except in our industry normally when the driver's find out is when their paychecks bounce and their fuel cards are shut off. Arrow stranded almost 1200 driver's all over the USA when they shutdown right before the holidays.
zardozI never could understand that mentality. If I invested in something, I would do what I could to ensure that my investment stayed in good shape, so it could continue to provide me with returns.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
zardoz tree68 Just think - if the money being paid to hedge fund investors was being used to better the railroad... I never could understand that mentality. If I invested in something, I would do what I could to ensure that my investment stayed in good shape, so it could continue to provide me with returns. I guess that's why I'm not an investor.
tree68 Just think - if the money being paid to hedge fund investors was being used to better the railroad...
Just think - if the money being paid to hedge fund investors was being used to better the railroad...
I never could understand that mentality. If I invested in something, I would do what I could to ensure that my investment stayed in good shape, so it could continue to provide me with returns.
I guess that's why I'm not an investor.
Sounds similar to the shippers arguments on paying excessive demurrage or car hire charges because the railroad claims the car is available before it is even on their siding. Which I read the judge in that case asked "Can you as a shipper charge the railroad a demurrage charge if the car is delivered or picked up late". The response was no and the judge said....."I think I can fix that". So lookout ,some more regulations are on their way....heh-heh.
What I found rather disturbing about that whole exchange was the car incurring the extra fees by the railroad was not railroad owned but was privately owned in many cases by the shipper being charged. Not sure how the railroads get away with that twist but it does sound like shippers and the patience of the civil court system is wearing thin.
You get what you pay for - that goes to both the customer and to the company that employs the work force.
Customers always think they get overchaged and company's always think their work force is over paid.
What a pyramid to build good customer relations upon!
SAN ANTONIO, Texas – Rail service has been poor more often than it’s been good during the past five years because railroads run too lean and get caught short of crews, locomotives, or both and can’t recover quickly from the impact o...
http://trn.trains.com/news/news-wire/2019/05/24-analyst-penny-pinching-is-behind-prolonged-service-problems-at-class-i-railroads
Brian Schmidt, Editor, Classic Trains magazine
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