Major Powder River Basin coal producer contemplates mine shutdowns

 

News article: Major Powder River Basin coal producer contemplates mine shutdowns

Arch Resources to slash production by half in next two to three years

  bevans Site Admin

Location: Melbourne, Australia
The once big cash cow for BNSF under threat?

A sign of times to come?

Major Powder River Basin coal producer contemplates mine shutdowns

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  freightgate Minister for Railways

Location: Albury, New South Wales
Union Pacific also service the basin.

Coal traffic has been dropping on the BNSF eastbound and south eastbound trains with power stations and other customers dropping off in the past few years.

Not sure if any of this traffic uses the high line ?
  Sulla1 Chief Commissioner

Union Pacific also service the basin.

Coal traffic has been dropping on the BNSF eastbound and south eastbound trains with power stations and other customers dropping off in the past few years.

Not sure if any of this traffic uses the high line ?
freightgate

A lot of the westbound BNSF coal moves on the Montana Rail Link line (Ex-Northern Pacific) to reach the Columbia River, however most of the Powder River coal goes east to the midwest and southern states, and south to Texas on the BNSF and Union Pacific.

Powder River coal has been in decline since the GFC, but it's coming down from a peak production of nearly 500-million tonnes per annum.
  bevans Site Admin

Location: Melbourne, Australia

Powder River coal has been in decline since the GFC, but it's coming down from a peak production of nearly 500-million tonnes per annum.
Sulla1

That is a lot of coal in a single area.
  Sulla1 Chief Commissioner


Powder River coal has been in decline since the GFC, but it's coming down from a peak production of nearly 500-million tonnes per annum.
That is a lot of coal in a single area.
bevans

It's a huge rail operation and has been BNSF's and Union Pacific's cash cow for decades...



https://youtu.be/vGWH2i5qBzU
  bevans Site Admin

Location: Melbourne, Australia
NS also feeling the coal pinch https://www.railpage.com.au/news/s/coal-puts-pressure-on-norfolk-southern-s-thirdquarter-revenue
  michaelgm Chief Commissioner

Lots of idle capital here.



https://m.youtube.com/watch?v=yU_n8L_qiT0
  nswtrains Chief Commissioner

Lots of idle capital here.



https://m.youtube.com/watch?v=yU_n8L_qiT0
michaelgm
If only we had a decent loading gauge/axle load. Cheap locos.
  Big J Deputy Commissioner

Location: In Paradise
Lots of idle capital here.



https://m.youtube.com/watch?v=yU_n8L_qiT0
If only we had a decent loading gauge/axle load. Cheap locos.
nswtrains
Had a reference to Precision Scheduled Railroading as a contributing factor, as well as the coal downturn. What is that?
  michaelgm Chief Commissioner
  Sulla1 Chief Commissioner

Aurizon is also introducing Precision Scheduling - it has been trialled on the Moura System during 2019, with expecations of a larger trial across all of Aurizon's network during 2020 according to the 2019 Investor Presentation.

The 2020 report shows Precision Scheduling on the Blackwater System resulted in on-time mine arrivals improving from 47% to 86%, and on-time port arrivals improving from 16% to 60%. There has been a 20% drop in cancellations. Aurizon is using these metrics to reduce train turnaround times to provide better fleet and network utilisation.

Speaking to investors in June 2018, Aurizon CEO Andrew Harding was expecting operational savings of $50-million by 2021.
  Big J Deputy Commissioner

Location: In Paradise
Thanks Michael and Sulla.
  nswtrains Chief Commissioner

Thanks Michael and Sulla.
Big J
Precision scheduling was introduced into the CSX railroad when a new President was appointed formerly with one of the Canadian Railroads with dramatic results. There is currently a Trains Magazine special issue on the news stands providing a full history of the CSX which incorporates an extensive explanation of Precision Scheduling. I would recommend anybody interested in Precision Scheduling have a look at this particular special issue. I found it very interesting.

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Subscribers: bevans, Big J

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