CONNECTING INDUSTRY – DELIVERING VALUE
ISSUE 1 • VOLUME 9 • 2013
CHICAGO SOUTH SHORE & SOUTH BEND RAILROAD
ArcelorMittal—Burns Harbor Steel Mill — South Shore tracks at lower left
Integrated steel mill relies on
South Shore Freight for success
ArcelorMittal Burns Harbor facility considers South Shore
Freight a valuable business partner and its lifeline to the west.
With products that ship across the U.S., Mexico and Canada,
ArcelorMittal relies on South Shore to interchange its products with
Class 1 railroads. The railroad is the first leg in product delivery.
Through South Shore, the integrated steel mill successfully services
its entire marketplace.
“The steel industry is competitive because of similar products and
customer placement,” said Ray Johnsen, Manager-Logistics Planning and
Scheduling, ArcelorMittal-Burns Harbor. “Service sets us apart. Rail
plays an important part in this. We’re a better steel mill at Burns Harbor
because we can rely on South Shore Freight for service and equipment.”
ArcelorMittal, the world’s leading steel and mining company
and leader in major global steel markets, attributes a portion of its
success to the railroads they work alongside, including South Shore.
That partnership began in the mid-1960s when the Burns Harbor
facility was constructed. The railroad ships approximately 200 cars
of outbound steel and 250 cars of inbound coal a week for the steel
mill. The finished product is used in railcar manufacturing, pipe
applications, automotive, and heating and air conditioning systems.
Johnsen appreciates the railroad’s flexibility and said the railroad’s employees go above and beyond to accommodate the steel
mill on a regular basis. For example, if the mill produces product
ahead of schedule, South Shore adjusts its plans to bring empties
for loading.
“South Shore Freight connects the mill to the east and west
through our Class 1 railroad partners,” said Andy Laurent, director
of marketing and sales. “Whether it’s handling inbound coal or
outbound steel, we are a vital component of ArcelorMittal-Burns
Harbor’s operations.”
As its business increased, the railroad swiftly responded by increasing service from five days a week to seven days a week. When
the facility requested additional service, the railroad’s leadership and
responsiveness impressed ArcelorMittal. They promised to fulfill
their request, gave a detailed timeline of when extra crews would be
in place and followed through.
“Steel mills can be challenging to work with, but they do a great
job of responding to our needs,” Johnsen said.
From Andrew Fox
Coming off another impressive year at South
Shore Freight, our New Year’s resolution has
been to build upon our success by enhancing our
customer service.
To achieve this, we have realigned our customer service function — which includes Chief
Customer Service Representative Melissa Zdyb
and Customer Service Representatives Eric Arnholz and Brenda Runnels.
This team now reports to Steven Staley, Manager of Operations Support.
For the first time in a long while, we now have a transportation officer in
charge of our customer service team’s daily activities.
This move has evolved our customer service from the excuse department to the commitment department. By reporting to Staley, customer
service no longer explains where a car in question is located; they make
commitments of when service will be performed and follow through on
each promise. By having one person primarily responsible for creating a
daily operating plan, for manifest and unit train business, there will be a
higher level of consistency and less variability in our operations.
We firmly believe this move will catapult South Shore customer service
from good to great in 2013.
In addition to our focus on customer service, we are continuing to
invest to enhance the safety and reliability of our infrastructure. In 2013,
we will invest approximately $1 million in roadway capital improvements.
Despite a weak demand for coal in 2012, we anticipate this demand
to strengthen as the year progresses. We’re excited to see how this will
impact business in 2013.
As we take strides to enhance our service, we appreciate our customers’
continued support and loyalty. We thank our diligent employees, whose
commitment to serving our customers is the backbone of our organization.
You are the reason for our success.
The heart of the railroad
At the center of South Shore Freight’s
success is a three-employee department with
an aim to ensure customers’ needs are met.
Similar to a heart pumping blood through
the body, the team communicates customer
requests, compliments and concerns to the
operations department. They make commitments and ensure they are followed through
by employees.
The experienced Customer Service
Department includes Chief Customer Service
Representative Melissa Zdyb, who leads the
team, and Eric Arnholz and Brenda Runnels,
each known for their exceptional communication skills.
The team is in charge of a long list of duties, including completing paperwork, providing switch lists to freight crews, overseeing car
movement, supplying equipment to customers
when ordered and tracking interchange. When
customers request cars in a particular order
through ShipperConnect, a representative
crafts assignment sheets for crews based on
the schedule dictated by the trainmaster.
“When it comes down to it, we’re the
middle man,” Zdyb said. “If there’s ever a
question or problem, we work together with
Transportation to serve the customer in the
manner they expect. We play an important
role and consider it an honor.”
Customer Service employees pride themselves on their communication skills. As issues
arise, they contact the customer because they
understand how changes affect their business.
Because of the department’s small size, the
employees know South Shore’s customers inside and out. When someone contacts Customer
Service, that person doesn’t hear an automated
voice, instead, the individual is assisted by a
person who cares about their business.
“It’s almost like we know them personally,” Zdyb said. “When they call us, they
Staley brings experience to new role
Manager of Operations Support Steven Staley has had his hands
in a little bit of everything since starting his new role March 1. He
manages crew and freight schedules, customer service and IT support.
He earned a bachelor’s degree in multidisciplinary studies from
Grantham University in Kansas City, Mo., before joining South
Shore Freight in 1998. Staley worked as a Brakeman, Locomotive
Engineer and Trainmaster through 2009, when he became Manager
of Operations for Central Illinois Railroad. In September 2011, he
returned to South Shore as a Locomotive Engineer and Conductor. He
was promoted to Assistant Trainmaster prior to his current assignment.
Coming from a transportation background, Staley knows firsthand
the challenges employees face.
“I not only know how things should work, but also understand
From left, Customer Service Representative Eric Arnholz,
Chief Customer Service Representative Melissa Zdyb and
Customer Service Representative Brenda Runnels play a
key role in South Shore Freight’s success.
know their request will be answered. If we
can’t answer it, we find someone who can.”
Representatives enjoy the relationships
they’ve built with their clients. They know
many customers so well that they often can
determine which customer is calling by
voice alone.
“I know all my customers and how each
one expects to be treated,” Zdyb said. “That
one-on-one interaction is something they’re
used to and appreciate.”
the reality of how things actually work,” he said.
Staley’s priority has been to tweak scheduled service. He plans to implement set
service timeframes of daily product delivery.
Customers will know what day their product
will arrive and what time.
Steven Staley, Manager
He is a 26-year Army National Guard vet- of Operations Support
eran. He deployed to Bosnia and Afghanistan
from 2004 to 2007 as a First Sergeant, a job he describes as “the
operations role for the Army.”
The southern Indiana native and his wife, Alyssa, have four
children. In addition to time with his family, Staley keeps busy performing work on his house and working in his yard.
2013 ACE Safety Banquet a success
A big employee turnout served as a highlight of South Shore
Freight’s second annual ACE Safety Banquet Jan. 27 at the
Pottawattomie Country Club in Michigan City, Ind.
Thirty-eight South Shore employees, along with their family
members, attended the banquet.
“I was impressed that everyone brought their families,”
said Superintendent Mike Shore. “It proves they felt it was an
important enough event to share with their families and speaks
to the connection among employees, families and South Shore.”
While dining, guests enjoyed tropical music from special
guest Kent Arnsbarger, a steel drummer.
Door prize winners were Chris Imperato, Conductor; Mona
Pilecki, Executive Secretary; and Herb Tillman, Carman.
Employees received mugs in recognition of their attendance
records and for zero rules violations. The mugs featured the ACE
logo on one side and South Shore Freight logo on the other.
Presentations by President Andrew Fox, Director of Safety
Tom Leopold and Shore explained ACE, 2012 safety performance
and need for employee involvement in safety.
The banquet served as a springboard to kick off the 2013
ACE campaign, an employee-based safety program that empowers people to coach one another. The short line’s 2013 safety
goal is zero personal injuries and human-factor events.
Shore said customers will benefit from the railroad’s safety focus.
What is ACE?
South Shore Freight implemented
ACE — Actively Caring Employees — in
2011. Through this program, employees
monitor one another on their daily tasks
and record potential at-risk behavior on
anonymous observation cards that are
compiled monthly into data used to brief
employees on safety issues consistently
witnessed on the job. Employees also
attend a six-hour class to learn how
to approach one another and be approached in regard to a safety concern.
A special thanks to our ACE
leaders:
• Dave Luchene, Carman
• Don Buford, Locomotive Engineer
• Brenda Runnels, Customer Service
Rep/Accounting Clerk
“Safety and service are synonymous,” he said. “You can’t
have one without the other.”
Harbor Services partnership begins
Jose Gonzalez of Harbor Rail Services Company, a
Chicago area mechanical contractor, is one of the many
helping hands from this company who are partnering with
South Shore Freight on car repairs and inspections.
The quicker damaged cars are repaired,
the faster they move for customers.
To reduce dwell time, South Shore
Freight enlisted help in December from
Harbor Rail Services Company, a Chicagoarea mechanical contractor.
The company partners with the South
Shore Mechanical team for car repairs and
inspections, especially for customers at the
western end of the railroad. Harbor Services
has been inspecting cars as they are received
in interchange from our connecting carriers.
Harbor Services works out of Burnham
Yard and responds to issues as they arise. If
a bad order car is discovered at a customer’s
site, it is either moved to the yard for repair
or repaired on-site if it cannot be moved.
Bad orders previously had to be moved
to Michigan City for repairs by South Shore’s
own Michigan City-based forces or our people were required to drive long distances to fix
something. With a nine-member mechanical
team, these situations proved challenging.
Acquiring additional hands on deck has
helped South Shore catch more bad orders
when they first come to our railroad at the
west end.
“Our carmen aren’t looking at every car
we interchange,” said Superintendent Mike
Shore. “But, with Harbor Services, we’re
finding more potential hazards. It’s lessening
the possibility of an incident and providing
our customers with a better quality car. We’re
enhancing the safety of our customers’ freight
and our employees. It’s a win-win situation.”
South Shore chose Harbor Services because of its flexibility, quality and service diversity. The company has been in the railroad
business since 1986 and boasts an outstanding
track record of quality and performance. In
addition to short lines, Harbor Services also
works with Class 1 and regional railroads.
Chicago South Shore & South Bend Railroad Company
505 North Carroll Avenue • Michigan City, IN 46360-5082
219.874.9000 • Fax: 219.879.3754
www.SouthShoreFreight.com
Chicago South Shore &
South Bend Railroad Company
505 North Carroll Avenue
Michigan City, IN 46360-5082
PRSRT STD
U.S. POSTAGE
PAID
MAIL U.S.A.
South Shore Freight service increases from three
to five days per week to serve New Carlisle,
Indiana, customers.
Service increase
spurs growth
Increasing service days from
three to five days a week with South
Shore Freight’s New Carlisle customers is truly a win-win situation.
The change, which went into
effect Dec. 3, spawned additional
business for the short line’s largest
customer in this territory, which
equates to an additional 40-50 cars
per month.
South Shore Freight serves
four customers in the town and
ships various products, including
paper, minerals and chemicals.
“These customers have been
pleased with the change to five
days of service,” said Mike Shore,
Superintendent.
Beyond increased business,
this move also improved cycle
times and capacity.
“Velocity is capacity,” Shore said.
Personnel changes
Two South Shore Freight
managers transitioned to new roles
effective Jan. 1.
Chuck Compton, previously Vice President-Business
Development, is now Chief
Administrative Officer. His new
duties include managing contracts,
budgets, Human Resources, vendor
relationships and fleet management. From left, Andy Laurent, Director of Marketing and Sales, and Chuck
He also will have account manage- Compton, Chief Administrative Officer
ment for NIPSCO.
Andy Laurent, previously Manager-Growth Initiatives, is now Director of Marketing
and Sales. He is responsible for pricing, sales/business development and most of South
Shore Freight’s account management.
On-duty point debuts in Burnham
Burnham Yard’s new trailer is yet another effort by South Shore Freight to enhance productivity and crew utilization.
The first crew reported for duty there on Jan. 6. The move places employees
closer to their job, which will benefit customers in the port of Illinois.
Previously, crews often used a locomotive for transport to the yard, which could
require up to three hours of travel time, congested the railroad and wasted fuel.
The 24-feet-by-60-feet trailer contains four offices, two bathrooms, a common
area and a kitchenette and is shared with Harbor Services.