Boston & Maine Achieves Control over Railroad Performance

Between 1977 and 1982, the Boston & Maine Railroad made extensive efforts to improve its operating performance, especially in the areas of freight service, terminal control, and freight-car utilization. Major changes were made in the organizational structure, in information systems, in the decision-making processes, and in physical facilities. As a result, significant improvements in service and costs were achieved. The railroad saved more than $3 million annually, or roughly three percent of total operating expense, which helped the B&M to achieve the first income-based reorganization in the rail industry in more than 20 years. Operations planning played a major role. The MIT service planning model was developed in order to evaluate alternative operating plans and establish origin-to-destination trip-time standards.