CPKC submits service improvement plan to STB

Canadian Pacific Kansas City has submitted to the Surface Transportation Board a service action plan outlining its steps to address recent service declines in the southern United States.

Since the May 3 consolidation of CPKC’s U.S. IT systems, the Class I's customers in the southern United States have experienced “elevated delays, missed switches and congestion,” CPKC officials said in the report and plan submitted to the STB. The service problems have been reflected in declines in two key metrics — first-mile-last-mile and manifest on-time performance — on which CPKC based its service action plan commitments.

Last week, STB Chairman Patrick Fuchs wrote to CPKC President and CEO Keith Creel to express concern about service disruptions related to the company's technology changeover.

"Compared to CPKC's performance before the changeover, the board's oversight data show higher terminal dwell at key yards, slower average velocity and decreased on-time performance and industry spot and pull," wrote Fuchs.

Submitting a service action plan, when service falls below certain standards, was one of the conditions the STB required as part of its approval of the merger between Canadian Pacific and Kansas City Southern.

In its plan, CPKC outlines a variety of actions to address the current problems, including establishing “hypercare” teams of employees familiar with the new systems to field internal inquiries and assist in troubleshooting.

Also, the railroad has: deployed cross-functional teams to key locations that have experienced acute service problems; modified operations to protect network fluidity, including bypassing the Shreveport Yard; and stepped up communication with customers to keep them informed during the IT transition.

"There are numerous promising signs that CPKC’s remedial efforts are working to prevent further service deterioration and begin achieving a return to normal service levels," the plan states.

To read the plan, click here.