Kansas City Southern-Mexico has seen significant improvements in key operating performance indicators, due to several efforts including infrastructure, customs and blocking changes at Sanchez Yard; a revised transportation service plan; and the establishment of a new crew change point at Leal outside of Monterrey.

Since June, dwell time per car was reduced 36 percent. Year over year, car cycle time is 17 percent faster, total inventory was reduced 14 percent and average system velocity increased 22 percent. Now that these efforts have proven successful, KCSM is taking velocity improvements to the next level with the organization of a velocity committee.

The velocity committee, led by KCSM director operations Manuel Zulaica, meets monthly to review system velocity, car inventory and system dwell, as well as progress made by its cross-functional subcommittees comprised of customer service, transportation, engineering, mechanical, fleet management and border operations.

The subcommittees have met to establish goals with one of the first steps being to establish measurements that benchmark current railway performance so that adjustments to operations can be properly evaluated for their effect on velocity. The work of these committees is important, because as system-wide velocity improves, so does service to customers and asset utilization, as well as a reduction in expenses, improving the bottom line.