Austin Freight Operations and Maintenance Business Plan

Reviewed operations across a 160-mile freight network

Eliminated derailment claims through restructure of freight contractor business model

Freight rail is 3-4 times more fuel efficient than trucks and generates $80 billion per year as an industry

Challenges

CapMetro needed a new and effective business model to contract out freight operations and maintenance of one of the busiest freight corridors in the US.
A comprehensive review of its 160-mile freight network (a portion of which is shared with its passenger rail system) would assist CapMetro in addressing and eliminating significant derailment claims by the carrier.

Conducted stakeholder interviews and a total system assessment to review benefits and constraints of the existing freight operations contract as well as related contracts for passenger service operation, infrastructure maintenance, and passenger rail vehicle maintenance.
Developed a business plan that recommended a restructuring of responsibilities and shifted the risk of performance from CapMetro to the freight contractor.
Prepared technical specifications to define contractor oversight of freight operations and maintenance. Assisted with contractor procurement process by evaluating proposals and responding to technical questions.
Defined additional specifications outlining fee structures, revenue sharing, marketing expectations, and coordination with third parties such as the Class 1 railroads and passenger rail contractors.

Eliminated claims due to track conditions in freight-only territory and effectively increased long-term capital investment in the freight rail network.
Increased CapMetro revenue by implementing new specifications for contractors to manage daily operations.