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Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.

Return On Investment – ahh yes, the reason and purpose of capital expenditure -- right? Well, sometimes. Once in awhile the leaders in this industry have capital expenses thrust upon them without a clear means of insuring a reasonable economic ROI. Perhaps such is the case with Positive Train Control. Had the capital expense required for implementing Positive Train Control made sense in the past then PTC would have been implemented long ago. The economics really haven’t changed that much and its still hard to envision a reasonable economic return on investment; but this capital expense has been mandated by the government and it is now in the hands of the carriers and their suppliers to turn this ‘expense” into a infrastructure “investment” with reasonable return.

I can think of a number of ways this investment can see a return; the most obvious is in the overlay of technology that would allow for the computerized pacing of trains where the return is generated through fuel savings.

Let me explain. As a former locomotive engineer when I had a proceed signal without other restrictions my running speed was maximum authorized speed. I neither knew nor cared where the next meet was going to take place. If I was lucky the other train would be in the siding well ahead of my arrival and the dispatcher, being at the top of his game, would have given me the line up without delay. Had it been the other way around I still would have run up and into the siding at the maximum speed the rules allowed, pulled down to the stop, kicked my feet up, and waited for the meet.

In an optimized train pacing process fuel would be conserved by reducing energy losses due to braking and reduced throttle running position on the paced train. There is no reason to run up to the approach in throttle 8, dump the kinetic energy by braking, pull into the siding and wait 30 minutes when a properly designed train pacing process would allow for a timed meet that would optimize fuel consumption with minimum effect on average train velocity.

 Train pacing is nothing new in the industry; the below quoted documentation supports the conclusion that significant fuel savings can be realized by careful attention to the timing of arrivals at the meeting point.

 Quoting from – “DEPARTMENT OF TRANSPORTATION FEDERAL RAILROAD ADMINISTRATION 49 CFR PARTS 229, 234, 235, AND 236

[DOCKET NO. FRA-2006-0132, NOTICE NO. 1]

RIN 2130-AC03

POSITIVE TRAIN CONTROL SYSTEMS

ECONOMIC ANALYSIS”

 “----------------Programs are also being conceived that project arrival at meet points and other locations on the railroad. These types of tools can be consolidated into programs that either coach the locomotive engineer regarding how to handle the train or even take over the controls of the locomotive under the engineer’s supervision. The ultimate purpose of integrating this technology is to conserve fuel use while handling the train properly and arriving at a designated location “just in time” (e.g., to meet or pass a train or enter a terminal area in sequence ahead of or behind other traffic).

 Further integrating this technology with PTC communications platforms and traffic planning capability could permit transmittal of “train pacing” information to the locomotive cab in order to conserve fuel. Like the communications backbone, survey data concerning route characteristics can be shared by both systems.

The diesel fuel use for road operations to the Class I railroads is approximately 3.5 billion gallons annually, which is $8.75 billion at $2.50 per gallon. If PTC helps to potentiate the growth and effective use of train pacing, fuel savings of 5% ($437,500,000 annually) or greater could very likely be achieved. Clearly, if the railroads are able to conserve use of fuel, they will also reduce emissions and contribute to environmental attainment,------”

 Hopefully the railroad suppliers are considering return on investment strategies as they develop Positive Train Control technologies because it is the suppliers and not the carriers that will have the greatest impact on the technology. The carriers will be “stuck” with what is presented to them by the suppliers as the suppliers choose to either meet minimum standards or actively consider future return on investment. Now is the time for the carriers to step up to the podium and let the suppliers know the preferred direction of development. 

 Intuition tells me that a critical juncture in the design process will be the decision whether to base the systems on a Track Integrated Continuous Free Wave Link, probably GPS based; or Track Integrated Programmable Autonomous On-Board Monitoring systems.

 Being outside “the loop” I prefer programmable autonomous systems for reasons of reliability and security. I believe this to be very much against the current of expert thought but remain adamant that GPS based systems are too vulnerable to disruption by numerous means. I understand the rail industry as being a strategic asset of the United States and GPS based systems present an exposure for which there are no practical remedial actions should these systems be lost for any reason. As a nation we have enough of our eggs in the GPS basket. Looking into the future it is one thing to have degraded train pacing capability and an entirely different monster to be limited to limping along or even worse, sitting dead in the water if the GPS system is degraded or taken down. Using GPS for the purpose of determining speed and position for input into a position predictive algorithm might make good sense given no other alternative; but designing systems where the GPS link is a critical operating component does not.

 Cheaper is not always better. There are a number of alternatives that could provide the equivalent single purpose of the GPS system. These alternatives could possibly include triangulation from existing fixed tower transmitters, eLORAN, automated wayside, or signal island updates. Rear of train position could be accurately calculated using the known train length and track profile. Considering that the GPS component only serves to give an accurate position, alternative methods of determining accurate location should be considered.

 Any conceivable system that will generate a return on investment will require a two way communication link. A key component of a smart front end strategy is to design those related communications systems with enough band-width and memory to handle not only the safety data sets mandated but also an immediate or future capability of transmitting work data, train consist updating, and other document generation. This should be considered on the front end if the industry is to optimize the economics of the mandated technology.

 In any and all cases this technology will require careful consideration of regulatory compliance as shown in the title of the earlier quoted document. In part, those suppliers of event recorders will be required to maintain channel and recording capability of the safety data sets mandated as well as meeting other related regulations as they apply to the Locomotive Safety Standards, Grade Crossing Signal Safety, Material Modification of Signal Systems and Installation/Inspection/Maintenance of Signal Systems. 

 All of this must sound very daunting to the suppliers and the carriers, but if careful reflection is given to past and current technologies it is seen that most of the fundamental algorithms and infrastructure technologies are already in use in one form or another. The key is the careful modification and integration of existing technologies into an interoperable system that can generate a good return on investment. I am confident that could happen; I am not so confident that it will happen.

 The industry is stuck with the mandate; it will remain to be seen if the carriers and their suppliers can turn costly regulation into investment opportunity.

 Gavilan 

 


Posted 07-23-2009 5:26 PM by Gavilan

Comments

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-23-2009 6:09 PM

About as comprehensive a discussion as we could want.  You missed one aspect of PTC, though, Gavilan, that might contribute to ROIC.  If you know where your train is at all times and with precision, you may not need the same separation standards that you have with today's dispatch and signal systems.  That can allow for more traffic density withouthaving to make the investments in double-tracking and adding sidings.

Adron Hall wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 10:49 AM

There are definitely some positives to adding PTC, even among the increased burden of the cost.

I like LarryKaufman's suggestion that density could increase.  Just the tracking potential increase the railroads opportunities for safety, data, and even presentation to customers.

Some KPIs.

Presence and sentament tracking of rail usage in towns and areas where the railroad has prospective contention.

Tracking and elimination of tagging/graffiti of vehicles & vandalism (i.e.)

Decrease contention with Amtrak and show customer tracking for Amtrak - which could be provided to Amtrak for a very minimal fee if Amtrak chose to get a developed solution to display this data to customers.  This could be done for a nominal amount of money and integrated into their current systems.

The Class Is could recoup at least a few million this way while raising their their reputation drastically if people knew why and where these trains are traveling while they're on the train - especially while stopped on the train.  It couldn't hurt to turn these often naysayers of the freight rail companies into advocates.

...anyway, the list could go on, one just has to think outside the box a little.

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 10:57 AM

"Adron:  I hope you're sitting down because this may shock you.  I agree totally with your comments on PTC.  Improved customer service - the ability to tell a customer with some precision where the train is and when it will arrive - is an unquantified benefit to railroads.  I suspect that it won't be too long after PTC actually is deployed that the railroads will be singing its praises and some of us will be wondering what took them so long.

Gavilan wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 11:02 AM

Regarding the referencing train location.

"Using GPS for the purpose of determining speed and position for input into a position predictive algorithm might make good sense given no other alternative; but designing systems where the GPS link is a critical operating component does not.

"Cheaper is not always better. There are a number of alternatives that could provide the equivalent single purpose of the GPS system. These alternatives could possibly include triangulation from existing fixed tower transmitters, eLORAN, automated wayside, or signal island updates. Rear of train position could be accurately calculated using the known train length and track profile. Considering that the GPS component only serves to give an accurate position, alternative methods of determining accurate location should be considered."

anmccaff wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 11:20 AM

LK>"the ability to tell a customer with some precision where the train is and when it will arrive - is an unquantified benefit to railroads."

   It's a quantified benefit to a lot of shippers (and end recipients.)  Between retail (volume) customers who may want to know specifically when a package is arriving, to volume customers working on a strict JIT system, providing almost any data on exactly where the goods are has a measurable effect on customer satisfaction, and has real benefits for analyzed inventory management.  There are auto plants that think of parts inventory in terms of hours, not days.

  It also provides outsiders a window into internal operations, for better and for worse, letting UPS (for example) better analyze where a rail carrier can provide excellent TOFC performance, and where there are likely to be problems.

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 12:25 PM

anmccaff:  Absolutely right.  The benefits are quantifiable, as you point out.  I think you'll find, though, that the railroads already provide UPS with the kind of visibility it wants and needs.  Funny how being the largest individual customer focuses the attention of marketing and operating executives at railroads.

anmccaff wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 12:34 PM

LK>"anmccaff:  Absolutely right.  The benefits are quantifiable, as you point out.  I think you'll find, though, that the railroads already provide UPS with the kind of visibility it wants and needs.  Funny how being the largest individual customer focuses the attention of marketing and operating executives at railroads."

   This might be out of date, but I'd say the class 1s provide UPS with the amount of visibility they can without further expenses, which UPS is smart enough to know would somehow be passed on to them.  Same for some of the auto manufacturers.  If the railroads had better data themselves, they'd demand it, but they're not going to push the envelope on their own dime.

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 3:24 PM

Probably right, anmccaff, but I know of a consultancy that gets raw data on car location based on passage by wayside detectors, and then sells its information to its clients, which may be shippers or consignees.  As a given car number gets closer to its destination, the firm has an algorithm that allows it to provide constant updates of when the consignee can expect to see the car.  The closer the car gets, the more certainty there is that it will arrive when forecast.  So, I think you'll find that there is a wealth of data available; it all depends on how you massage it and who pays for that massaging.  

UPS may be a special case.  It's huge.  It is a most demanding customer, although in fairness to it, it never demands more than the carrier agrees to sell it.  UPS may have 50 or more drivers and tractors awaiting the arrival of a train, and it gets very testy, I can assure you, when it has to pay overtime to those drivers because the railroad failed to keep it fully informed.

The biggest problem with automated car identification and wayside readers is that it isn't in real time.  It tells you when a car passed a detector, but the train could suffer a breakdown 1,000 yards down the line and no one would know for the better part of a day.  That's where technology can be upgraded.

anmccaff wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 3:50 PM

LK>"Probably right, anmccaff, but I know of a consultancy that gets raw data on car location based on passage by wayside detectors, and then sells its information to its clients, which may be shippers or consignees."

  Just so it's clear, I'm agreeing with you. I can see this becoming simpler and more transparent (hence, cheaper) if it's integrated into something that tracks whole trains in real time.  Less massaging, closer alignment between the data the railroad uses itself, and what the customers might want, hence easier deliver of the information.  I can also still see a massive datamining potential for third part analysts, so I don't see this as breaking anybody's ricebowl.

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-24-2009 4:44 PM

Dead right on, anmccaff.  Again, the railroads may have more capability than they realize.  If train line-ups are accuratge - and almost all are - all you need to know is the location of a train and its speed and you have the same data for each car in that train.

Adron Hall wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-25-2009 1:51 AM

Damn LarryKaufman... I fell right over and out of my chair and squished the cat.

I'm in the analytics and data business, so I often see ways to use data that others haven't.  It keeps me entertained, and as of late closer to my secondary occupation (transportation/transit) than I ever imagined.  It seems the railroads (and transit agencies) are stumbling into this world of being knowledgeable to modern Internet Standards.  :)

anmccaff wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-25-2009 2:08 AM

LK>"all you need to know is the location of a train and its speed and you have the same data for each car in that train."

  ....and if you don't, then late shipments are the least of your troubles.   Anyone else thinking about the joke about C-123s?

   (A collection of rivets and aluminum sheets, moving roughly in the same direction.)

    Humor is good, especially if it contributes to flatter cats.

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-25-2009 11:59 AM

Adron Hall:  Are you cursing me, or did you simply exclaim and leave out a comma?

railwatcher wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-27-2009 11:21 AM

This discussion requires the injection of some facts.

1) The horse is out of the barn relative to the location determination system.  It will be GPS based, on PTC systems away from the NEC, that decision has basicly been taken and it would reuire some major backpedalling to change it.

2) All proposed PTC applications on signaled lines are to be overlays on the existing signal system.  Overlay systems by their very nature degrade not increase capacity/density.  It takes a stand alone, moving block PTC system to achieve capacity improvements and ain't nobody got one of those for the freight environment at this time.  So the 2015 roll-out of PTC is unlikely to yield much in the way of economic benefits in this area.

Adron Hall wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-27-2009 11:49 AM

No cursing you LarryKaufman, was just expounding without a comma.  My grammatical error - whoops.  :)

I was basically expounding how I was amazed you agreed with me.

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-27-2009 12:21 PM

I'm not that sensitive; I was simply having a bit of humor at your expense.  Hope you didn't hurt yourself falling out of the chair.

Gavilan wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-27-2009 9:26 PM

Thanks for the comment Railwatcher -

"This discussion requires the injection of some facts.

1) The horse is out of the barn relative to the location determination system.  It will be GPS based, on PTC systems away from the NEC, that decision has basicly been taken and it would reuire some major backpedalling to change it.

2) All proposed PTC applications on signaled lines are to be overlays on the existing signal system.  Overlay systems by their very nature degrade not increase capacity/density.  It takes a stand alone, moving block PTC system to achieve capacity improvements and ain't nobody got one of those for the freight environment at this time.  So the 2015 roll-out of PTC is unlikely to yield much in the way of economic benefits in this area."

Your announcement that the existing suppliers have this thing all sewed up may be a bit premature. Of anytime in recent history - now is the time for some new players in the game.

If a carrier could have signaled track, with rolling blocks, near real time position, and PTC for about the cost of an GPS overlay which way do you think they would go?

Lets hope your horse can find its way back to the barn long enough to get the shoes it needs to make the horizon.

Maybe now is the time for the rest of the industry to show the big boys what efficiency is really all about.

railwatcher wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 07-27-2009 10:47 PM

Gavilan wrote

>Your announcement that the existing suppliers have this thing all sewed up may be a bit premature. Of anytime in recent history - now is the time for some new players in the game.

You said that you are out of the loop and you really are.  Shortly after RSIA was passed last year there was pressure to agree on an interoperability standard and the Class Is focused on the only existing system, WABTEC.

The protocals for this interoperability standard were presented to the commuter and shortlines at Dallas earlier this month so consider it a done deal.

>If a carrier could have signaled track, with rolling blocks, near real time position, and PTC for about the cost of an GPS overlay which way do you think they would go?

First of all signaled track (in the conventional sense) with rolling blocks is a contridiction in terms, but skip that.

Of course they would go with a rolling block system BUT it is a frictionless system, great in theory but just doesn't exist right now.  What you don't seem to appreciate is that the RSIA requires an implementation plan to be filed with the FRA by 4/15/10.  Do we file a plan based on a system tham that might or might not exist by 2015??? Of course the existing system will dominate (Note that ATKs 9 aspect system will probably dominate in the east).

>Lets hope your horse can find its way back to the barn long enough to get the shoes it needs to make the horizon.

No chance

>Maybe now is the time for the rest of the industry to show the big boys what efficiency is really all about.

And who is the "rest of the industry"? They don't have a dog in this hunt!

dmitzel wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 08-02-2009 12:06 PM

While the meat of this discussion has focused upon the PTC application-technology in and of itself, much more can be gained by a broader look at PTC as a real-time source of operational data. This data will be rich with information that can be selectively mined or aggregated, depending upon the application and organizational unit or departmental need.

Several of us at EDS, an HP company, have been looking at this opportunity presented by  PTC implementation since shortly following the Chatsworth incident, and we continue to engage with the Class 1 and regional carriers, the AAR and the FRA to see how (what many within the industry view as) lemons can be effectively turned into lemonade.

By taking the long-view towards PTC as an enabling technology, integrating communication-based train control with (legacy) transportation management systems will provide the initial foundation to build the intelligent (i-)railway of the future – a fully-networked system that allows for in-depth, real-time visibility into the operational state of the railroad, with decisions enabled using predictive technologies to effect optimal efficiency.

To read more about our viewpoint on PTC, please see my white paper at www.eds.com/.../positive-train-control-it.aspx or visit our rail freight practice page at www.eds.com/.../rail for more information. We are eager to continue the exchange of ideas on the longer-term benefits of this technology, as well as assisting the rail community in meeting the short-term needs generated by this Federal mandate.

Dan Mitzel, PMP

Project Manager

EDS, an HP company

Larry Kaufman wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 08-02-2009 12:35 PM

Data mining.  What a novel idea.  Seriously, most in or close to the railroad industry know that PTC is not cost effective from a purely safety perspective.  At the risk of seeming cold and uncaring, the fact is that the number of collisions that would be prevented annually, assuming 100% performance, just does not justify an investment of the magnitude of PTC.  If it is to have economic value, it is going to have to prevent train-to-train collisions and provide significant operating efficiencies.  Good luck, Dan Mitzel.

railwatcher wrote re: Optimizing The Economics of Positive Train Control By Technology Overlay – Thinking It Through On The Front End.
on 08-02-2009 7:54 PM

Dan,

Some the points in your are interesting and valueable, but I believe that there are 2 sticking points to moving farther forward on them in the near future.

One is FRA's requirement (actually in the statute) that an implementation plan be filed with the FRA 4/15/10.  FRA's proposed rule is requireing a rather high level of detail in the plan.  This has the effect of freezing the first generation PTC to what we have now (with some room for some additional tweeking).

Second is the size of the data pipe.  One of the problems with the IDOT project was the capability of the data radios.  One reason the new PTC generation is focused on 220 rather then the 900MH used in earlier systems.  Its still not clear how well this will work on high density lines and if there will be room for the transfer of much data above and beyond the train control requirements.  It will be interesting to see how this plays out.