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Economic Benefits of Improved Security at a Railroad Piggyback Yard

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Economic Benefits of Improved Security at a Railroad Piggyback Yard If you have issues viewing or accessing this file contact us at NCJRS.gov. DOT P 5200.12 ECONOMIC BENEFITS OF IMPROVED SECURITY AT A RAILROAD PIGGYBACK YARD AUGUST 1974 i ! : \ ! Prepared for Department of Transpartation Office of Transportation Security Washington, D.C. 20590 ~------------,-~-~---- -~-,~ t f.-dNAL REPORT "", ~'·,.~f","_~:,~:;;".,,,,,,,;,, <."""::,,-,"""I<.~~",, .. .E~9NorHC BENEFITS.oF "'\ IM"PROVED SECURITY AT A ) RAILROAD PIGGYBACK YARD by Albert W. Hartkorn Prepared for U. S. DEPART~1ENT OF TRANSPORTATION OFFICE OF TRANSPORTATION SECURITY by AMERICAN MULTI-LERT CORPORATION HERSHEY, PA. ~.. --~------- 'i'.' \ ~ INTRODUCTION This report documents a successful effort to control theft at the Erie Lackawanna Railway Croxton Yard, a railroad piggyback terminal, during the period October 1971 to IVlay 1973. There, was a dramatic t'eduction in actual dollar losses of 95%, with theft incidents reduced by 78%. As a result of shipper satisfaction with the improved security, the terminal had increased revenue by 24% over a six month period. In terms of reduc­ tion, theft losses dropped from a monthly average of $8,550 to an average of $386. The additional cost of security, plus losses, amounted to a monthly total of $923, for a net dollar savings of $8,319 per month. This translates into a monthly profit increase of about $4,159.5Q, using the established formula -- $.50 profit for every $1.00 in claims reduction. For air, truck and maritime terminal facilities" it has been estimated that as much as 85% of theft losses go out the "front gates" during normal opera­ ting hours, in the posses~ion of persons and in vehicles authorized to be on the facility premises for legitimate purposes. In rail facilities, however, this pattern is aggravated by the high percentage of contractor employees on the property who owe little allegiance to the railroad. In addition, a high proportion of rail cargo theft -loss is the work of "out­ siders" -- people who do not have a legitimate right to handle freight. In some cases, people have literally descended on sidings, railyards, and slow moving freight cars, looting them at will. The simple and inexpensive response to this is to lock the cars -- as a minimum, those containing high value cargo. This report outlines the steps taken to overcome the piggyback related theft problems at the Croxton Yard. It also contains detailed discussions of the impact of the follo~ing activities on the overall success of the project: Top management awareness and support of the theft reduction program. --- ---------- ii PREFACE Design and installatian af an electranic system specifically tai1ared to' the aperatianal enviranment and to' the cargO' theft American Multi-Lert Corparatian is under cantract to' the Erie Lackawanna and lass prablem. Railway Campany to' pravide consulting service, systems engineering and , , management, and to' supply equipment far upgrading security levels at the Integratian of electranic and palice functions to' achieve an Craxton, T~ailer Off Flat Car (TOFC) Yards. Under cantract to' the Depart­ impraved level af security. ment of Transportatian (DOT), American Multi-Lert Corparation made a detailed ana lys i s af the rai 1raad I s theft 1asses at the pi ggyback fac.i 1i ty i·n Jersey Impraved accountability af high-value cargO' as a result af th~ City, New Jersey (Croxton Yards) bath priar and subsequent to' the intraduc­ manitaring af trailer lacatian and integrity. tian afelectronic security systems. The results af this praject appear to' reinfarce the cantentian that the The primary gaals of ' this pragram were to': key to' dramatic reductian in theft-related cargO' lasses is preventian -­ making it harder far peaple to' steal. This repartreemphasizes the fact Determine the nature of the security problems at a rail piggyback faci 1ity, that the basic initiative for preventian must came fram shipper and transpartatian management. It is aur hape that the informatian cantained Apply madern security management and procedures to salve these in this repart will add impetus to' industry actians to' reduce theft-related problems, cargO' lasses. Achieve solutians within a strict cast-effective rationale, and Measure the effectiveness af salutians in terms af theft lass histary, cast af the new security systems and examinatian of the effects af improved security an revenue. The security programs initiated and described herein would not have been possible without the funding and management suppart af the Erie Lackawanna Railway-Campany. The significant cantributions made by William A. Kinney, Captain of the Pal ice and the support of Thomas R. Barrett, Superintendent of Praperty Protectian, Erie Lackawanna Railway Company are gratefully acknowledged. ABBREVIATIONS AND DEFINITIONS The following abbreviations and definitions are utilized in this report. · . AMC American Multi-Lert Corporation CCTV Closed Circuit Television Croxton Refers to the Erie Lackawanna Railway Company yard in Jersey City, New Jersey. Generally used to indicate the piggyback operation or operational area of the yard. Cx Abbreviation for Croxton East Eastbound, refers to traffic entering Croxton via rail from points west ELRC or EL Erie Lackawanna Railway Company Grounded Trailer off-loaded from flat car In Westbound IR Infrared LLLTV Low Light Level Television (camera) Mechanized A yard utilizing mechanical equipment to on-or-off load trailers from the side of flatcars. Out Eastbound Police, or ELRC Police Department or Personnel Police Department Pig, or Tr,ailer designed for over-the-road or rail movement Piggyback TOFC Trailer Off Flat Car! Generally used to indicate the piggyback operation or operational area of the Croxton, Yard TTX Rail Flat Car for carrying pigs VTR Video Tape Recorder West Westbound refers to traffic entering Croxton via trucking for points west Wholesale Wholesale figures of theft losses based on substantiated claims Dollar , Value i, j' ------~~ CONTENTS INTRODUCTION PREFACE ABBREVIATIONS AND DEFINITIONS REPORT Chapter Page I. Executive Summary 1 II. The Piggyback Yard 3 III. Croxton Yard - Pretest Period 4 IV. Croxton Y~rd - Test Period 8 V. Croxton Yard - Post-test Period 12 VI. Economic Benefits 13 Appendices - January 1970 to May 1973 A. Theft Loss History I B. Trailer Activity vs. Incidents of Theft I. FIGURES I l. Croxton Yard Layout 5 I 2. Theft Losse~ - Croxton 7 3. Effects of Electronic Security 11 4. Entrance, Police Gate House Changes 14 5. IN/OUT Bound Gate Detail 15 6. 1973 Actual and P~ojected Losses 16 7. Theft Losses; Known Locations Other Than Croxton A-23 8. Theft Losses, Unknown Locations Other Than Croxton A-24 I ! I ~ i t \ 1: 1 ! CHAPTER I EXECUTIVE SUMMARY This report documents the results of a company initiated cargo security improvement program to counter cargo thefts and losses at the Erie Lackawanna (EL) Croxton piggyback railyard in Jersey C'ity, New Jersey. The American Multi-Lert Corporation contracted with the EL to install and integrate an electronic security system with existing railyard police functions anq physical facilities.' Initially, program 'effectiveness was measured in terms of the magnitude of thefts and losses for comparable periods prior to and after electronic system implementation. System operation led to development I' of a series of reconmendatiotls to upgrade physical security. The test system was temporarily dismantled to accomplish ~he suggested improvements, with the results that cargo theft and losses exceeded even pretest conditions. An integrated e'lectroi'l1c and physical sec.urity system was fully operational in July 1973 and cargo losses decreased accordingly. This summary focuses on the time period between October 1, 1971 through May 31, 1973. This time frame is divided into three operational segments: Pretest Period: October 1, 1971, to February 28, 1972 ~ prior to implementation of an operat'ional electronic security. system. Securi ty Sys tern Tes t Pe'rioq: March 1, 1972, to December 31, 1972 - an electronic security system was operational and integrated with existing police functions and physical security facilities. Post-test Period: January 1, 1973 to May 31, 1973 - the electronic security system elements were temporarily dismantled to upgrade physical security and operational layouts within the railyard. As noted, the integrated electronic secur"jty system was fully operational on July 1, 1973. The cargo theft history ,within the Croxton piggyback railyard during the system test periods is summarized in the following data. Dollar figures represent wholesale or invoice values. i.: 1 -2- -3- Monthly Security System Operating Cost $ 537.60 Pretest Period: = October 1, 1971 to February 28, 1972 Net Monthly Reduction in Theft Loss $ 8,318.97 Theft Loss - Total Claims Paid $42,749.36 Theft Incidents - Total 20 The EL has since publicized the Croxton cargo security improvement program Average Monthly Loss $ 8,549.87 through the media and with on-site inspections and demonstrations for the Average Monthly Theft Incidents 4 shipping public. EL management has credited the cargo. security program with Security System Test Period: an overall increase of 24% in revenue by this rai1yard (period unspecified). March 1, 1972 to December 31, 1972 Theft Loss" Total Claims Paid $ 3,856.50 In summary this project demonstrated that management support and active Theft Incidents - Total 8 participation are vital to the establishment and implementation of a successful Average Monthly Loss $ 385.65 cargo theft and loss reduction effort. The electronics are merely the hardware Average Monthly Theft Incidents 0.80 portion of the man-machine system responsible for the effectiveness of this Post-test Period: security program. The operating system was designed to. integrate the personne1/ January 1, 1973 to May 31, 1973 electronic control and surveillance procedures and to maximize the combined Theft Loss - Total Claims Paid $49,672.86 effectiveness of the ~olice officer and his electronic support. Theft Incidents - Total 19 Average Monthly Loss $ 9,934.57 The ultimate success of this program can be measured by railroad management Average Monthly Theft Incidents 3.8 commitment to expand cargo security measures.
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