Innovation will continue to drive change in the North American rail industry this year, both in how railroads operate and serve customers.
New technology applications allow railroads to increase fuel efficiency, safety and reliability. High-tech systems now provide real-time information about locomotive and train performance through remote measurement and reporting of data, including precise fuel consumption, and notification of potential locomotive problems so they can be fixed and avoid failures affecting customer service.
We are testing new technology that uses the acoustic signature of a wheel over an engineered rail joint to detect defects. We are linking wayside inspections systems to a central database to allow us to match inspection information with freight car repair history, again to get ahead of the curve and ensure consistent service.
Innovation also is creating better customer service. Railroads are reaching out to customers, employees and other stakeholders and extending their view and actions up and down the supply chain. They’re developing first-mile, last-mile initiatives that respond effectively to customer needs at origin and destination and help all stakeholders obtain an end-to-end view of service quality. And they’re developing service targets and monitoring measures that ensure shared accountability for supply chain success.
We believe the success of North American and international supply chains will be based on innovation by, and collaboration among, all logistics chain participants. The objective must be to help rail customers compete more effectively in their end markets and win more market share. Customers, in turn, will reward the industry with increased discretionary business, one carload or containerload at a time. That’s a virtuous cycle, and we believe progress on this front can be best achieved through strong commercial relationships between carriers and customers.