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Bnsf & indian railways logistics
- 1. Ajay Kanithi Akshay Donadkar Anto A Sebastian Chakshu Raj Deep Patel Devansh Dhawan Hardik Madani Lokendra Singh Rathore Raghu Prashant Shivam Jain
- 2. BNSF Logistics Management Profit Strategy Indian Railways Logistics Management Comparison SWOT
- 4. Orig ins 1 8 5 0 - 1 8 8 1 E v o l u t i o n o f E n g i n e s 1 9 3 4 - 1 9 5 2 1 s t M erg er 1 9 7 0 - 1 9 7 3 2 n d Merg er 1 9 8 0 - 1 9 9 0 C u r r e n t s c e n a r i o • B u r l i n g t o n R a i l w a y s f o r m e d i n 1 8 5 0 • C o n n e c t e d A u r o r a t o W e s t e r n C h i c a g o • H i g h t r a f f i c o n t h e r o u t e l e d t o B u r l i n g t o n f o r m i n g i t s o w n d i r e c t r o u t e t o C h i c a g o • S t a i n l e s s s t e e l d i e s e l p o w e r e d s t r e a m l i n e r d e b u t e d • B y 1 9 5 2 , s t e a m l o c o m o t i v e s c o m p l e t e l y r e p l a c e d w i t h d i e s e l e n g i n e s • B u r l i n g t o n N o r t h e r n f o r m e d b y m e r g e r o f C B Q , G N , N P a n d S P S • N e w s c h e d u l e s a d o p t e d w i t h m o r e e x p r e s s t r a i n s t o a n d f r o m F a r w e s t e r n s u b u r b s • B N S F o p e r a t e s t h e c o m m u t e r r a i l s e r v i c e • B u s i e s t l i n e o n t h e s y s t e m • R TA A c t a m e n d e d • M e t r a a n d PA C E c r e a t e d • B N m e r g e d w i t h AT S F t o f r o m B N S F r a i l w a y s
- 5. BNSF railways travelled 300 million miles in 2016, it is equivalent to a round trip to the Sun. Every 10th second a new car is loaded on a BNSF train which means 3 million new car were loaded in 2016. Whole India sells 2 million cars annually. It is consistently ranked amongst the best class I freight rail companies BNSF is using drones to inspect rail tracks. A first in railways globally. Do you know?
- 6. BNSF Logistics BNSF Logistics has deployed i2’s transportation management software suite. i2’s “Transportation Manager” TES is the operational backbone for BNSF Logistics and performs multi-modal transportation management, freight brokerage, value-added transportation services etc. For administrative purposes, BNSF is divided into two regions and ten operating divisions. BNSF Railway has gained trackage rights on more than 8,000 miles Services Truckload Specialized Temperature controlled International export & import Supply chain consulting services Rail car fleet management
- 7. Features of BNSF Logistics Automated communication Competitive rates Superior customer service Capacity when you need it Industry leadership in damage-free shipping Single-source accountability
- 8. How BNSF Turned Profitable Easier Borrowings to invest in the infrastructure Hiring more than 7,000 new workers and spending $5.5 billion on improvements to its 32,500-mile (52,300 kilometer) network Installing a second line, running parallel to its 2,200 mi run from Los Angeles to Chicago Taking control of cargo shipping that otherwise would had gone by road Taking cars off the rail road to create a better flow and reduce lead times.
- 9. Indian Railways Railways were first introduced to India in 1853. IR is the world's eighth biggest employer and had 1.33143 million employees at the end of 2015- 16. In 2015–2016, IR had revenues of ₹1.683 trillion (US$26 billion), consisting of ₹1.069 trillion (US$17 billion) freight earnings and ₹442.83 billion (US$6.9 billion) passengers earnings. It had an operating ratio of 90.5% in 2015-16. The first passenger train in India ran between Bombay (Bori Bunder) and Thane on 16 April 1853. It ran for about 34 kilometers between these two cities carrying 400 people.
- 10. On 3 February 1925, first electric passenger train in India ran between Victoria terminus and Kurla. It ran on 1500V DC overhead traction. The re-organisation of railways in India into regional zones began in 1951. On 14 April 1951, Southern Railway was created. On 5 November, Central Railway and Western Railway were created. In 1986, computerized ticketing and reservation was introduced in India, for the first time, at New Delhi. On 31 March 2017, IR announced that the entire rail network in the country will be electrified by 2022 Indian Railways
- 11. Freight Operations Information System (Indian Railways) FOIS Online real time system for Operations management Foundation for total logistic systemUser driven design & Implementation
- 12. Features of Indian Railways Logistics Rake Management System (RMS): • Wagon supply - date and time • Departure after loading • Running particulars - arrival/departure at stations etc. Terminal Management System (TMS): • Calculation of freight and other charges • Generation of Railway Receipt(RR) • Billing and Accounts of freight earnings Parcel Management System (PMS): • Parcel Booking, Cancellation and Loading • Monitoring and tracking of Parcels • Printing of Parcel labels RFID tags for tracing parcels etc.
- 13. Data for 2017
- 14. Wagon types based on freight for Indian Railways For the transportation of bulk goods that are not moisture-retentive To transport loose bulk commodities such as coal, ore, grain, and track ballast To carry general freight For loads that are too large or cumbersome to load in enclosed cars such as covered wagon
- 15. BNSF and Indian Railways Size • Similar in terms of revenue generation • Different holdings (IR – Government, BNSF – privatised) BNSF • Warren Buffet acquired BNSF (2nd biggest rail operator in the US) • Exclusive focus on freight transportation Cater To • Indian Railways run 65000 km, not very far away from the 36,000 route miles as BNSF and Union Pacific. • Indian Railways also carries passengers, others do not. • OPERATING RATIO: BNSF = 64%, Indian Railways = 92% Employment • BNSF employs 44,000 people while Indian railways employ 1.3 Million and also provides for the pension to 1.4 million people.
- 16. Different Business Focus • BNSF is a champion of cost cutting and driving efficiency, the Indian Railways is constrained by social obligations, but recently becoming customer centric and business oriented. • IR: Subsidised passenger fares and heavy freight charges Efficient Freight • 50% of what tariffs used to be before • Thanks to cost cutting, innovation and efficiency improvements. Why Roads? • Inflection point: the U.S. has it around 700 miles, whereas in India we have this around 700 kms. • The multi-modal arrangement in U.S. creates a giant hub & spoke around almost every commodity.. Economies Of Scale. • The length of the train could vary typically from 0.6 km to 2.8 km Preferred Transport Mode • 75% of all movement happens by road and rail share is just 10%. BNSF and Indian Railways
- 17. • Operating Ratio-92% • USA Freight on rail-10% • Tariff down by 50% in 30 Y • Innovation-Mobile App BNSF • Operating ratio-64 % • USA Freight on rail-35 % • Tariff up by 52 % in 10 Y • Innovation-FOIS IR Features Comparison of Indian Railway and BNSF Logistics
- 19. References – http://www.businessinsider.com/r-berkshires-railroad-revamps-service-with-billions-fewer-cars-2015-3?IR=T – http://elite-league.com/node/113017/devel/token?page=56 – https://www.bloomberg.com/gadfly/articles/2016-11-11/berkshire-hathaway-bnsf-railroad-deal-shines-bright-in- hindsight – http://www.businessinsider.in/Warren-Buffett-Made-A-Deal-In-2009-That-Was-So-Good-You-Could-Say-He-Stole- It/articleshow/45126810.cms – https://www.linkedin.com/pulse/rail-vs-road-economics-transportation-around-world-procyon-mukherjee – https://metrarail.com/about-metra/our-history/bnsf-history – https://www.fois.indianrail.gov.in/FoisWebsite/html/About_Us_New.htm – https://www.linkedin.com/pulse/rail-vs-road-economics-transportation-around-world-procyon-mukherjee – http://www.bnsflogistics.com/mobile-app/features/ – http://www.livemint.com/Industry/zqJyyadQNaOj3HA1CZx60N/Prices-of-goods-moved-by-freight-trains-may- rise.html – http://www.thehindubusinessline.com/economy/budget/aim-is-to-reclaim-market-share-in-freight-movement- says-rail-minister/article6937723.ece
Editor's Notes
- To support the operations, BNSF Logistics has deployed version 6.1.5 of i2’s transportation management software suite. i2’s “Transportation Manager” is being used to support the transportation management operations of three major accounts. It’s primarily function is to consolidate less-than-truckload (LTL) shipments into rail, intermodal, and truckload shipments. It then automatically tenders loads to carriers and provides supply chain visibility. i2 has been integrated with BNSF Logistics proprietary operations system to share information with BNSF Logistics’ Transportation Execution Services group (TES). TES is the operational backbone for BNSF Logistics and performs multi-modal transportation management, freight brokerage, value-added transportation services, and transportation exception handling services. TES incorporates the acquired operations of the various acquisitions and operates out of 15 U.S. offices. According to Wolfe, it will account for approximately 95% of BNSF Logistics revenues in 2004. Value-added services include: cross-docking, transloading, expedited truck/rail service, pool distribution, and supply chain network analysis and re-design. Frito Lay, Wal-Mart de Mexico, U.S. Borax, and the Home Depot are current BNSF Logistics customers. For Frito Lay, BNSF Logistics is managing intermodal moves of bulk potatoes. This service involves loading TOFC refrigerated trailers near the border of Minnesota and providing intermodal rail transportation to Chicago. The trailers are offloaded in Chicago and travel by highway to the processing plant in Frankfort, IN. For administrative purposes, BNSF is divided into two regions and ten operating divisions. The North Region includes the Montana, Northwest, Twin Cities, Heartland and Powder River divisions. The South Region includes the Red River, California, Chicago, Kansas and Southwest divisions. Each division is further divided into subdivisions, which represent segments of track ranging from 300-mile (482 km) mainlines to 10-mile (16 km) branch-lines. The former Texas and Gulf divisions were combined into the Red River Division, and the former Springfield and Nebraska divisions were combined into the Heartland Division, in the spring of 2016. Additionally, BNSF Railway has gained trackage rights on more than 8,000 miles (12,875 kilometers) of track throughout the United Statesand Canada. These rights allow the BNSF to operate its own trains with its own crews on competing railroads' main tracks.
- The operating ratios are so different is because BNSF employs 44,000 people while Indian railways employ 1.3 Million and also provides for the pension to 1.4 million people. The former is a champion of cost cutting and driving efficiency, the latter is constrained by social obligations, but recently becoming customer centric and business oriented. The passenger fares are subsidized to such an extent that it has the lowest fares on purchase power parity basis in the whole world, while it is exactly the opposite for freight movements. During the last 10 years, the Indian Railways has increased freight charges five times with a cumulative increase of 52%, while these nine revisions in rail haulage charges levied on container train operators have resulted into a cumulative increase of 120% in the base category and a whopping 230% to 265% in the heaviest weight slabs The Indian Railways’ market share in freight movement which was once 90 per cent has come down to nearly 35 per cent The railways have been traditionally doing business in major bulk cargo, that too in ten major commodities including ore and cement among others. It is important now that over a period of time, we need to develop and diversify the freight basket and to do that we need for small quantities of freight. And so now we will have to find out smaller quantity of cargo, which needs to be integrated, and for that the best way it can happen is through public private participation,The market share that we have lost to road sector is not because of the freight rates, it is because investment in roads has been three times more than in Railways. Today, even if we want to reclaim 5 per cent of the share, we don’t have capacity,” Railway minister said, while defending the increase in freight charges. Although we maintain a strong relationship with BNSF Railway, we remain an unbiased, rail-neutral 3PL provider The BNSF Logistics Mobile App will save you time and reduce the hassle involved with completing a load. Plus, if you sign up for our Supplier Incentives Program, it will help you save money while you’re out on the road too. Here are a few of the features & benefits the app promises to deliver: Complete schedule for pickups and dropoffs including special instructions for each location. Instant notifications whenever a new load has been assigned to you. Instant map directions to get you to your next stop. Automatic location updates instead of check calls. One tap confirmation for stop arrivals and departures. Upload & send photos of documents. Supplier incentive program for discounts on fuel, tires and additional services. FOIS - A Strategic Advantage to both IR and its customers. The implementation of the system is envisaged to eventually achieve the following:- -Extension of the current business practice of bulk movement in train load formation to piecemeal traffic to increase the market share by clubbing and moving together similar type of stock of "Hub & Spoke" arrangement. -Global tracking of consignments in real time whether in rakes or in individual wagons. The insight and pipeline of consignments would be seamlessly available for timely planning and just in time inventory management. -Facilitate acceptance of customer's orders, billing and cash accountal from identified nodal customer centres which, may not necessarily be the handling terminals. These facilities could even get extended to customer's premises and alongwith introduction of e- commerce benefit both by reducing the burden of logistics management. FOIS comprises two major subsystems : -Rake Management System (RMS) for handling the operational aspects of IR. -Terminal Management System (TMS) for handling the commercial aspects of IR. The other important subsystems for better Decision Making: MIS Reporting, Rake Allotment/Allocation System (RAS), Terminal Pipeline Management System (TPMS) FOIS provides improvement in existing business practices and consequently reduction in the operating costs while enhancing the quality of service. A full fledged Domestic Terminal Management System (DTMS) for CONCOR is already in place. Thus FOIS provides: -Convenience and Transparency to Customers -Optimum Utilization of Resources -Handling of Commercial and Operational aspects of Rail and Freight Movement -Better Decision making tools -Help for better logistics management.