Havelock Wheel Plant

NCTA Operations and

Maintenance Conference June 8, 2014

Overview

Introduction BNSF Havelock Shops Overview Havelock Wheel Plant Overview

Safety Quality Production Accomplishments (2008 – 2013) 2014 Initiatives

2

Havelock Shops: Overview

3

Havelock Shops: Overview (continued)

• Opened in 1891, Missouri River Valley Railroad • 315 acres in northeast Lincoln, Neb. • Currently employs more than 400 BNSF Employees • Havelock Wheel Plant • Current freight car operations include BNSF-owned

preventive maintenance: • Coal fleet • Grain fleet • Intermodal • Owned and foreign wreck repair • Many smaller programs include: capital, operating, and

preventive maintenance

Havelock Wheel Plant: Overview

History Opened in 1976 Was intended only as an automated wheel shop with very few employees Today: Currently employs 120 people Milestone: 2,000,000 wheel built Feb. 2008 Five union organizations represented:

Machinists, Electricians, Laborers, Pipe Fitters and Clerical

AAR M-1003 certified wheel shop to include: Wheel Truing Axle Lathe/Qualification Wheel Boring/Press Bearing Press

Havelock Wheel Plant: Safety

Safety most important aspect of all BNSF employees’ activities:

Culture of compliance and commitment; eliminating life-altering serious injuries and employee fatalities

Improve identification of exposure and risk in the workplace

Rules Compliance

Supervisor-with-Employee Safety

Contacts

Peer-to-Peer Interaction and Support

Havelock Wheel Plant: Quality

• Three full-time employees dedicated to quality assurance • 2 AAR mechanical inspections per year

• Internal audits

• Strong AAR WABL representation and involvement

• Havelock team supports the railroad industry with supplier product testing

and approval

• Involved with development/TR&D of industry technology. Examples: • Cracked-wheel detectors • Warm-bearing detection • TADS

• Automated ultra sonic of second hand axles by year-end 2014

• Full compliance with MD11 reporting and AAR Counter Billing

Havelock Wheel Plant: Production

88.1% 83.7%

88.7% 91.3%

77.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2010 2011 2012 2013 YTD 2014

Per

cent

Whe

el P

lant

Pro

d to

Sys

tem

Usa

ge

Whe

el S

ets

Wheel Plant Production

Plan Actual System Usage Wheel Plant Production Prct

Havelock Wheel Production

Havelock Wheel Plant Production

BNSF CEPM

10

Wheel Set ID

1-D barcode

2-D barcode

Havelock Wheel Plant: Accomplishments

2008 • Converted locomotive wheel shop to freight car shop

2009 • New portal wheel lathe

2010 • Built new inbound/demount line to support additional production

2011 • Replaced an automated wheel UT Machine

2012 • Purchased two new axle CNC lathes • Installed and implemented CEPM

2013 • Purchased a new wheel manipulator for the locomotive shop

Havelock Wheel Plant: 2014 Initiatives

2014 • Install three automated axle UT machines

• Install an automated bearing mount at the Havelock locomotive shop

2015 • Continue install of automated bearing mount

• Various facility related upgrades