Port of Tacoma Intermodal "Finding the Good in Goods Movement' Insights and Strategies from U'S' Gat

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Port of Tacoma Intermodal"Finding the Good in
Goods Movement. Insights and Strategies from U.S.
Gateways."
Jeannie Beckett Sr. Dir, Inland
Transportation May 4, 2005
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1 Goal for the Port of Tacoma

• The Port of Tacoma to be the most efficient and
  reliable intermodal gateway in North America
• 70 of the Cargo is moved by Rail to the
  mid-west and upper east coast

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Land Use 2004
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Land Use 2020
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Metropolitan Freight CentersMajor Population
Areas
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Port of Tacoma Niche Rail Destinations
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Challenges

• Growth Outpaces Expectations
• Infrastructure takes up to 10 years to build
• Who should pay for the infrastructure?
• Who truly benefits from the infrastructure?
• Funding is Always an Issue

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Total Port Intermodal Lifts
?
Took 13 years to double now doubling in 4-5 years
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Port of Tacoma Total Weekly Lifts
Thousands
2005 Orig Plan 646,300 lifts
10273 10035 10921
2005 Orig Plan 646,300 2005 Q1 Plan
720,000 lifts
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What we do know!

• China Continues to Grow
• Mainlines are selling PNW as alternative to PSW
  for Chicago Traffic
• Shipping Lines are asking about our ability to
  take more intermodal cargo
• Shippers are looking for alternative supply
  chains to get their cargo to market

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Assumes Build outGrounding and Less Dwell
2003 2004 2005 2010
Courtesy of SSA
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Assumes Build outGrounding and Less Dwell
2003 2004 2005 2010
Courtesy of SSA
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Todays Rail Capacity

• Described multiple ways
• On Dock Ramp Capacity
• Support Track Capacity
• Tideflats Capacity
• Connector Capacity
• Mainline Capacity

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Todays Rail Capacity

• Total Port On-Dock Ramp Capacity
• All Yards working 24/ 7 1.3 M Lifts
• 5 year Forecast 2008-9 1.0 M Lifts
• Balanced Flow East and West bound
• Support Yard Capacity
• 11 Support track to Loading
• Tideflats Capacity
• TMBL Crews and Engines
• Ability of Partners/ Connectors meet Productivity
  Goals
• Open Running Track

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Todays Rail Capacity

• Bull Frog Junction Capacity
• (The Connection to the Outside World)
• Currently Allocated 5 intermodal Contract Train
  slots per day 2 Daily mixed small volume
  Destination Trains each way, for a total of 14
  slots per day
• Mainline Capacity
• Windows/ Spacing of Trains on to the Mainline
• Assets Utilization including Power and Crew
• Lengths of Trains
• Mainline Track Capacity in Northern Tier
• Off-Port AD Tracks
• Length of Sidings

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Solutions for the Future

• Participate in FAST Corridor 15 Puget Sound
  Grade Separations Projects with 20 public/
  private Partners
• Working with our State Port Association to
  review Statewide Road and Rail Capacity
• Develop Intermodal Line of Business Strategic
  Plan
• Study Capacity issues on the Tacoma Tideflats

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Are we ready for the volume?

• Yes, we are proactively managing our rail flows
  each terminal has productivity goals
• Documenting our Processes and looking for
  opportunities for improvement VESA
• Measuring current activities- developing a
  dashboard reporting system
• Forecasting for the Future
• Building redundancy into our systems

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What does VESA do?

• Vision
• Our Vision is to cultivate a corporate
  environment where Six Sigma, Lean and other
  continuous improvement techniques are the
  standard for enhanced decision-making and problem
  solving that result in increased stakeholder
  value.

Mission Our Mission is to collaborate with
cross-functional project teams to provide
effective solutions for improving integral
processes. This enhanced level of problem
solving and data analysis will help teams achieve
their goals in reducing bottomline costs and
growing topline opportunities.
VESA Project Goals
Increased Revenue
Reduced Cycle Time
Operational Cost Reduction
Increased Customer Loyalty
Greater Productivity
Predictable Outcomes
Increased Utilization
Reduced Defects
On-Time Delivery
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What does VESA do?

• Value Engineering (Process-focused)
• Variation Defects Non Value-Added Activity
• Define the problem Understand the value stream
• Measure the system Identify waste in process
• Analyze data/identify root cause Remove
  constraints/optimize flow
• Improve the root cause as a team Develop
  incremental change
• Control the process Set up control mechanism
• Monitor results Monitor results
• Strategic Analysis (Decision-focused)
• Data Analysis that leads to a long-term financial
  decision
• Examples
• Proposed reallocation of resources
• Effect of new regulations or technology
• Validity of a metric

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Port of Tacoma Throughput
Problem Statement Port of Tacoma is struggling
to keep up with increased demand resulting in
train delays, congestion and loss of
business. Goal/Objective Remove barriers in
order to increase Intermodal Train throughput to
10-14 trains per day. Benefit Commitments BNSF
Crew Hours TMBL Switching Time Team
Members Steve Goodall Project Champion (817)
352-0132 Mike Burke Project Champion (817)
352-6556 Ron Jackson Project Owner (206)
272-3719 Tom Rowley Team Member (206)
272-3719 Dan Burns Team Member (253)
591-2556 Dennis Gustin Team Member (206)
658-1659 Deron Amans Team Member (206)
658-1659 Rick Wilson Team Member [phone]
Carole Elston Team Member [phone] Andy
Katz Team Member [phone] Rich Cotton Team
Member [phone] Tom Chmielowski Team
Leader [phone] Defect Total number of
trains arriving and departing Port of Tacoma less
then 10 Baseline Measurement DPMO, Days when the
Number of Intermodal Trains arriving or departing
the Port of Tacoma is below 10 ( 2.13.05
3.14.05) 133,333
Current Status (4.13.05) Defining scope and
issues Set up workshop High level Value Stream
Current Processes Toured Facilities Conducted 3
day workshop Next Steps Complete action
items Report out to champions Complete follow up
on action items and progress Analysis of Future
Capital Investments
2005-02-00259
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Port of Tacoma Throughput
Lets review this information as one.Control
chart reviewing total trains, departing and
arriving into the Port of Tacoma.Once again,
there is lots of consistency in the process with
an average of 8.03 trains a day. Our highest day
had 15 trains arrive or depart.
15 trains (7 In / 8 Out) (3/13/05)
Average 8 trains a day
4 trains (2 In / 2 Out) (2/14/05)
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Port of Tacoma Throughput
Looking at the current process capability of the
Port of Tacoma, we see that currently we reach 10
trains a day 13 of the time. Since our process
is relatively in control, we have to attempt to
change the current process and shift the average
up towards 10 trains a day.
Upper limit of 10 (set at 9.9 in order to include
days with 10 trains)
Observed Performance 13 above 10 trains a day
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Port of Tacoma Throughput
Port of Tacoma overall process Right click on
the link provided below and choose Open Hyperlink
to view the complete action item list Process
Flow
2005-02-00259
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Port of Tacoma Throughput
Action Items GeneratedRight click on the link
provided below and choose Open Hyperlink to view
the complete action item list Complete action
items list
2005-02-00259
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Port of Tacoma Throughput
Joint Application Design Team
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Tacoma Command Center Phase I opens May 1
Port Business Center
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2005 Creating Solutions
Respond to Customer Growth and Success
Bullfrog Junction
Chilcote Junction
Adding Redundancy Increasing Capacity
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Port of Tacoma

• Help our Current Customers Grow
• Prepare for the Future
• Be a Good Neighbor