VEQ & MUAR Updates Moderator: Kelly Smith, Kansas City Southern
Speaker: Wesley Hitt, Nissan/WWL
Mexican Automotive Production Growth
• 7th Largest Automotive Manufacturer
• 4th Largest Automotive Exporter
• In 2014 80% of Finished Vehicles Exported
• No. 2 Supplier of Vehicles to the U.S.
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Mexico Finished Vehicle Production Forecast(in millions)
2010 2011 2012 2013 2014 2015 2016 2017 2018
2.32.7
2.9 3.03.2
3.5
3.9 3.94.0
“Overall, the reality is that production growth is estimated to reach upwards of 5 Million Units in Mexico by 2010”
Finished Vehicle Logistics
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Automotive Production 4
Pesos Per Hour
Theft and Vandalism Initiatives Org Chart Mission Statement Identified Supply Chain Gates and Actions Idea Sharing
Web Portal developed for improved communication flow Chock Series Codes OEM In-Op procedures to support theft and vandalism initiatives
http://www.aar.com/standards/OEMInopProcedures.html Under review: Various US rail ramp procedures
Created OEM Teams to meet with Mexican governments Individuals for each OEMs identified for expedited adjudication Mexican Railroads coordinating timely communication to create an
immediate response and resolution to theft and found gaps Tag initiated for data collection at rail ramps
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MUAR Theft & Vandalism Sub TeamOEMs & Railroads
Wesley Hitt / Scott Crail
Sub Team Leaders
Scott BoucherStewart Kessler
VW
Gavin MendozaHonda
Omar MendozaHonda
Mark OwenNissan
Jorge EspirituNissan
Ronald ThomasToyota
Mauricio RiosToyota
Mike RobinsonMazda
Raul LopezMazda
Jon UrbanFCA
Mauricio FavillaFCA
Brent WillisGM
Carlos MonsivaisGM
Eric Humphrey Union Pacific
Kelly SmithKCSM
Leslie Garth Union Pacific
Nick Archuleta
BNSF
Marlon Escamilla
KCSM
Jorge Fernandez
FXE
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Mission Statement
Collaboratively work to address best practices and opportunities to reduce multi-level theft and vandalism for Mexico shipments. Develop processes and support timely communication and remediation of vehicles on rail cars with theft and vandalism issues.
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Developed Improvements for Gates/Checkpoints for Supply Chain
Portal to Share Ideas and Documents for implementationTemplate to Standardize Trials and Results Rail Road and OEM Meetings established
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Gate Actions Implemented
Metal detectors and wanding of employees
Use of poly carbonate shoes instead of steel toe
Elimination of aluminum foil in lunchboxes. Replaced with clear plastic bags
Individual tracking of handling of vehicles
Random inspection of employees and lockers
Eliminated pockets on uniforms
Prior to DepartureOrigin Handling Loading Process Border Interchange InspectionRailroad Intransit to Border Destination
Data collected and used for results in various actions to support reduced theft
VEQ Tag developed to collect theft and vandalism data for measured results
Created unit trains for improved velocityHot zones
identified for improved security
Exterior wiring added to reduce top deck door clearance
Special locks designed to prevent top deck entry
Under consideration: technology improvement with positive alert of train breach
Adjudication process developed and involvement of local government affairs
Interior wiring added in areas of large gaps
Roof closure assembly fastener nuts must be tack welded to bolts
Keys mailed to destination where applicable
Relocation of keys to alternate location
Hiding of one key
Expedite closing of rail car doors after vehicles have been loaded
Trunks sealed for better visual of vehicle entry
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These Railcars are Susceptible to Vandalism
Propose to SEFCC alternative to change 14
A motion was made, seconded, and approved to add another bullet to M-970 Section 2.5.8 as follows: 2.5.8 Radial End Doors• Inspect, repair, or replace components of radial end doors as follows:• Roof Closure Assembly fastener nuts must be tack welded to bolts.
A motion was made, seconded, and approved to add another bullet to M-992, Section 2.5.1 as follows:2.5.1 Radial Style End Doors• Inspect, repair, or replace components of radial end doors as follows:• Roof Closure Assembly fastener nuts must be tack welded to bolts.
15SEFCC – Radial Style End Doors
SEFCC – Radial Style End Doors
So basically, we now have wording in place for M-941, M-970 and M-992 to help reduce theft into Multi-levels and help provide more secure equipment.
Theft in Mexico has been targeted mostly to multi-level type doors whichmay have wide side opening between the ladder and the side panels as wellas those which have openings where a roof closure assembly or chain canbe removed.
49.9% (8,777 tri-levels and 18,797 bi-levels) of the Reload Fleet is equippedwith the radial door design; we know not all cars can be diverted, but tryingto identify those with the greatest propensity for theft because of design.
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AAR Communication Web Portal
http://www.aar.com/standards/OEMInopProcedures.html
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Adjudication Process
Adjudication ProcessSuccess Dependent Upon Timely, Accurate Filing
Capture Criminal OEM or Power of Attorney Notified
OEM Files Charges• Property Linked to
Crime• Denuncia Filed• KCSM or FXE Support
Authorities Review CaseOEMs Follow up on with Authorities
Within 2 hours Within 12 hours
1 to 2 DaysOn-going
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VEQ Data Collection
VEQ TAG- Destination Theft and Data Collection
Today
Not all Units get inspected at interchangeClaims Data does not always reflect true impact of theft
VEQ Tag Group
Rail Road QualityOEMsVarious Inspection Companies
Future Objective
A more reliable and accurate recording of theft and vandalism as units arrive at destination ramps.
PURPOSE
Key Goals of VEQ TAG
Data
Collection
Recording of Codes Example – 28-08-06 08 being Theft Key in Coding
DPU – Defects per Unit Units received against
number of vehicles with theft or missing items
AAR to aggregate data AAR to report Metrics
Consistency
Metrics
1 - Country of Origin – to country of Destination by Ramp 2 - OEM – country of origin
destination by ramp
Presentation of Data ?