Commuter Rail Update October 25, 2018
2 page
page 3 State of Commuter Rail Network, July 2014 The 2014 Commuter Rail network had multiple issues and a history of neglect & under-investment FIRST UP? UPGRADES Fleet Infrastructure People & Experience
FLEET SECTION ONE
page 5 Dealing with the issues: Fleet Driving reliability improvements Invest in solving legacy loco issues Plan comprises of MBTA funded programs Modify programs for all new HSP46 locomotives Implement process improvement program Improve shop floor processes Leverage overseas expertise to accelerate improvement
page 6 Dealing with the issues Fleet Investment Program Program # of Locos Cost Anticipated Completion Actual completion Short-term recovery 14 to date $2M to date Completed Completed UTEX Phase I 5 $6M August 2017 August 2017 UTEX Phase II 5 $6M April 2018 2 completed, 3 in progress: October 2018 F40 Overhaul 10 $27M August 2018 September 2019 GP40 Overhaul 4 $6M September 2018 September 2019 MP36 Top Deck Overhaul 2 $2M February 2018 Pending
page 7 Results: Fleet Availability Improvements Locomotive availability is at its highest level ever, with locomotive production up 26% Average Weekday Locomotive Availability 70 65 60 55 FY14-15 FY15-16 FY16-17 FY17-18
page 8 Results: Coach Car Availability KCS has an average of 28 more coaches available per day in FY17-18 vs. FY14-15 380 Average Weekday Coach Availability 360 340 320 FY14-15 FY15-16 FY16-17 FY17-18
PERFORMANCE SECTION TWO
page 10 Performance: The contract results Contract sets OTP target at 92%, when adjusted for external factors 100% 95% 90% Contractual Target Adjusted OTP Contractual performance is a measure of how the railway is performing when excluding external factors (called adjusted OTP) 85% 80% 75% 70% 65% It excludes things like severe weather, Amtrak conflicts on the Northeast Corridor, and delays due to pre-planned work We use unadjusted OTP as the metric we focus on 60% FY14-15 FY15-16 FY16-17 FY17-18
Factors Affecting On Time Performance OTP changes are based on a balance of service improvements versus performance headwinds Performance Uplifts Line improvement projects Fleet upgrades (e.g. UTEX) Seasonal preparation and delivery Infrastructure investments Mechanical reliability improvements Operational changes to improve service Additional staffing Positive Performance Impacts Performance Uplifts Improvement Strategies Negative Performance Impacts Performance Headwinds Growing Organizational Capability Managing Risks Performance Headwinds Severe weather fluctuations PTC project Ongoing capital works Slippery rail dynamics Increased service on same infrastructure Aging fleet Pan Am/Amtrak conflicts 11 Innovating and Improving
FY 17-18 FY 16-17 FY 15-16 FY 14-15 page 12 On Time Performance Trends: Actual OTP Uplifts Factors to manage 10 Year Average OTP within 5 minutes 83 % - Transportation staffing plan - Right sizing organization & processes - Historic snowstorms in 2015 - Equipment damage (winter storms) - New fleet introduction 87 % 90 % - Very mild winter & slippery rail season - Increased train staffing - Fleet availability not keeping pace with increased schedule - Increases to service (10,000 more trains annually) 89 % - Initial line rapid action group - Performance improvement plan implemented with goal of achieving 90% OTP by line - May 2016 schedule change with additional service - March and April equipment availability issues Q2 2018 OTP within 10 minutes of 96% was the highest in contract history 89 % - Unprecedented availability - Line improvement programs - Large equipment reliability gains - Shop floor process improvements at maintenance facilities - PTC project implementation - GLX project impacts - Historic tidal surge and large snowstorms in close succession
page 13 Performance Uplifts and Headwinds in 2018 2017-2018 Performance Bridge 90% 89% 88% 87% 0.7% 0.3% 0.2% 0.2% 0.1% 0.1% 0.1% 0.1% 0.2% 0.3% 0.7% 0.5% 0.4% 0.2% 89.2% 86% 87.1% 85%
page 14 Creating Line Superintendents Joint Keolis-MBTA program to assign a dedicated manager to each line Instituting best practice to enhance performance Line managers will regularly identify and analyze service and implement action items Line managers will report findings to management to support with resources and other necessary assets Early success already on Worcester and Haverhill lines, which have seen significant OTP improvements
INVESTMENT & INNOVATION SECTION THREE
Investment and Innovation: Safety & Passenger Experience page 16 MAKING THE EXPERIENCE BETTER & SAFER Training Simulator Smart Cars Credit Card Payments
Investment and Innovation: Conductor and AC Headcount page Combined AC and Conductor Headcount (Average end of month position, actives only) 2400 2,400 Total Commuter Rail Headcount 450 2,300 2300 430 2200 2,200 410 2,100 2100 390 2000 2,000 370 1900 1,900 350 2015 2016 2017 2018 Conductors and ACs 1,800 1800 July 1, 2014 July 12, 2018
Cumulative Time Lost (Minutes) 18 page Investment and Innovation: Managing Slippery Rail Slippery rail delays have improved significantly with continued investment Cumulative Minutes Lost due to Slippery Rail (October 1 - November 30) 4000 3500 3000 2500 2000 1500 1000 500 0 41 42 43 44 45 46 47 48 49 Week Number 2014 2015 2016 2017 Significant improvement in 2017 s slippery rail season from 2016 Investment and operational improvement drives slippery rail performance: Ongoing Improvements for Oct Nov 2018
page 19 Investment and Innovation: Dealing with Winter Storms 100% March Snowstorm Performance: OTP within 5 minutes Historic winter of 2015 saw severe operational challenges 90% First Storm and Recovery Second Storm and Recovery Third Storm and Recovery Renewed investment improved winter 80% resilience significantly over 2016 and 2017 70% Winter of 2018 brought four major storms with historic coastal flooding and 60% investments paid off 50%
page 20 Looking Ahead Continue to build on performance gains through investments in infrastructure Significant efforts to destress rail and reduce heat restrictions have reduced the impact of heat related speed restrictions during the summer by 97% from summer 2015 to summer 2017 Continue replacement of ties and rails. 200,000 ties since 2014 10 miles of rail since 2014 New switches, crossings and signaling infrastructure New platform at Worcester Union Station, significantly improving operational flexibility Continue performance gains combating slippery rail. $750,000 in upgrades to wash train.
APPENDIX
page 22 Investment & Innovation: Increasing Service Keolis operated10,000 more scheduled trains for MBTA in 2017 than in 2014 155,000 Trains Scheduled per Year 150,000 Service has increased on the Greenbush, Needham, Kingston, Fairmount, and Worcester Lines 145,000 140,000 2014 2015 2016 2017
23 page Annual Cancellations and Terminations Cancellations at very low levels through last three years 100% 90% 80% 98.8 % 99.7 % 99.5 % 99.6 % 70% 60% 50% 40% 30% 20% 10% Scheduled: 139,428 Cancelled: 1466 Terminated: 186 Scheduled: 150,430 Cancelled: 290 Terminated: 182 Scheduled: 152,858 Cancelled: 563 Terminated: 241 Scheduled: 150,282 Cancelled: 380 Terminated: 258 0% FY14-15 FY15-16 FY16-17 FY17-18
page 24 Line by Line OTP (within 5 Minutes) past 4 years 14-15 15-16 16-17 17-18 Greenbush 91% 96% 96% 94% 16-17 to 17-18 Commentary on 17-18 performance Historic tidal surge and flooding during Winter 2018; strong recovery, with OTP of 96.0% in Q2 2018 Worcester 86% 78% 78% 86% Worcester Line improvement plan delivering results Middleboro 90% 94% 93% 90% Historic tidal surge and flooding during Winter 2018; strong recovery, with 91.7% Q2 OTP Stoughton 83% 87% 86% 87% Reduction in Engineering related failures Franklin 82% 84% 88% 86% Improvements in slippery rail counterbalanced by loco signal interface issues due to PTC, increasing Amtrak conflicts. Double tracking plan in place. Needham 81% 91% 91% 91% Amtrak conflicts increasing; working group established Providence 78% 85% 88% 88% Amtrak conflicts (working group established) winter resilience issues on Amtrak corridor (plan being developed to mitigate)
page 25 Line by Line OTP (within 5 Minutes) past 4 years 14-15 15-16 16-17 17-18 16-17 to 17-18 Commentary on 17-18 performance Fairmount 87% 94% 97% 97% Performance remains very high Kingston/ Plymouth 90% 95% 95% 92% Historic tidal surge and flooding during Winter 2018; strong recovery, with 92.4% OTP in Q2 2018 Haverhill 84% 91% 85% 85% Lowell 82% 94% 92% 89% Newburyport 83% 93% 88% 89% Rockport 80% 93% 90% 88% Fitchburg 70% 91% 82% 85% Haverhill Line improvement plan delivered strong results of 92.5% OTP in Q2 2018 Performance impacts of the GLX capital works had an impact in past year, improvement plan being developed Historic tidal surge and flooding during Winter 2018; Q2 2018 recovered to 92.5% Historic tidal surge and flooding during Winter 2018; Q2 2018 recovered to 92.9% Improved slippery rail and improved equipment reliability, counterbalanced by the impact of Winter 2018
page 26 Line by Line Approach Early Signs of Success The joint KCS-MBTA approach to line improvement is delivering results Worcester OTP Haverhill OTP 95% 95% 90% Started Improvement Project 90% Started Improvement Project 93% 89% 85% 83% 87% 87% 85% 85% 88% 83% 85% 80% 79% 80% 80% 75% 75% 74% 70% 2017 - Q1 2017 - Q2 2017 - Q3 2017 - Q4 2018 - Q1 2018 - Q2 70% 2017 - Q1 2017 - Q2 2017 - Q3 2017 - Q4 2018 - Q1 2018 - Q2
Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 page 27 Investment and Innovation: Creating Value Commuter rail revenue up 25 percent over the last three years $21,000,000 Commuter Rail Revenue 2014-2018 $20,000,000 $19,000,000 $18,000,000 $17,000,000 $16,000,000 $15,000,000