Major Programs: Improved Planning for Maintenance Facility Upgrades Could Help the Company Better Meet Its Fleet Goals

We found that the company has started upgrading its maintenance facilities to support its major fleet acquisitions, but challenges in planning and managing this effort have delayed its progress. As a result, some facilities will not be ready in time to service the company’s new trains, which could hinder its ability to fully operate the new equipment at their intended service levels. Instead, the company may need to store some new trains intermittently, which could postpone the capture of additional revenue. Further facility delays—which remain a risk—would add to the existing delays in fully operating its new fleets.

Two factors contributed to these circumstances. First, the company’s facility planning has significantly lagged behind its fleet planning despite the two efforts being closely interconnected. Second, the company is separately managing dozens of facility projects rather than managing them as a single, coordinated effort, as called for by company and industry standards.

We recommended that the company continue to develop a joint strategic fleet/facilities plan that defines company goals, timelines, and next steps. We also recommended that the company develop a management framework for its facility upgrades, including a risk management process.