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
- 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.
- 160 miles in CapMetro’s freight network
- $33 million spent to complete the project
- 400,000 freight carloads per year
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