TransmetriQ Blog

Railcar Health Basics: Contract vs. Running Repairs

Written by Admin | September 4, 2024 at 6:20 PM

Maintaining your railcar fleet’s health is crucial for smooth operations and minimizing costly disruptions that can throw a wrench in your logistics. Understanding the different types of railcar repairs, specifically running and contract repairs, can help you make informed decisions that optimize your railcar maintenance strategies. In this blog, we'll delve into the nuances of these repair types, guided by the Association of American Railroads (AAR) rules, and highlight the importance of proactive monitoring for railcar health.

 

Types of Railcar Repairs and Their Importance

 
Railcar repairs are broadly classified into two categories: running repairs and contract repairs. Each type plays a vital role in maintaining the operational efficiency and safety of railcars. Running repairs are typically performed on site by railroads when a car is found to have safety or operational impairments during interchange inspections. In contrast, contract repairs are pre-planned maintenance activities carried out at designated repair facilities. Understanding these distinctions is crucial for adopting a proactive maintenance approach instead of a reactive one, which can be highly beneficial for car owners and operators.
 

AAR Rules Governing Railcar Repairs 

 
The Association of American Railroads (AAR) sets stringent rules that govern railcar repairs, ensuring that all maintenance activities adhere to industry standards. These rules are designed to maintain the safety and reliability of the rail network. When a railcar is interchanged (transferred from one railroad to another), it undergoes a thorough inspection. Should any safety or significant operational issues be identified, immediate repairs, known as running repairs, are mandated to keep the railcar in service and avoid potential delays.
 

Running Repairs: What They Are, Pros & Cons 

What Are Running Repairs?  

Running repairs refer to maintenance activities performed by railroads during the interchange process. These repairs do not require car owner approval as they address immediate safety concerns, such as loose handholds, broken crossover platforms, or malfunctioning air brakes. The primary goal is to keep the railcar moving safely and efficiently without causing delays. 

 

Pros of Running Repairs: 

 

  • Immediate Action: Addressing safety issues promptly ensures the railcar can continue its journey without significant delays.

  • Minimal Downtime: On site repairs prevent extended downtime, keeping freight moving smoothly.

  • Streamlined Process: Railroads have complete control over the repair process, eliminating the need for approval delays.

Cons of Running Repairs: 

 

  • Higher Costs: Running repairs are billed at AAR rates, which are typically more expensive than contract shop repairs.

  • Limited Control: Car owners have no say in the components or repair methods, which might not align with their preferences and can lead to unexpected outcomes.
A freight train speeds through a crossing, underscoring the importance of running repairs to keep railcars moving without delays.
 
Contract Repairs: What They Are, Pros & Cons 

What Are Contract Repairs?  

Contract repairs involve maintenance and repair activities carried out at designated repair facilities, as approved by car owners. These repairs require an estimate and approval from the car owner before work begins. This approach allows for better control over the repair process and cost management. 
 

Pros of Contract Repairs: 

 

  • Cost-Effective: Contract repairs are typically cheaper than running repairs, as they are not subject to AAR rates.

  • Owner Control: Car owners can specify the components used and request additional maintenance tasks, optimizing the repair process.

  • Work Grouping: Combining multiple repair tasks can save on transportation costs and reduce repeated trips to the shop.

Cons of Contract Repairs: 

 

  • Routing Costs: Transporting a railcar to a contract shop incurs additional costs and time.

  • Approval Delays: The need for owner approval can delay the initiation of repairs, potentially leading to extended downtimes.

Importance of Proactive Railcar Health Monitoring 

Proactively monitoring railcar health is key to minimizing maintenance costs and preventing service disruptions. With the TransmetriQ Platform, you can consolidate essential insights from EHMS, Umler®, and DDCT into a single, user-friendly dashboard. This means fleet managers no longer need to juggle multiple systems, making it easier to access the data they need quickly. By streamlining rail management, our solution empowers you to make smarter, more efficient decisions, ensuring timely repairs and keeping your operations running smoothly.
 

Benefits of Proactive Monitoring: 

  • Cost Savings: Addressing issues early can prevent more extensive and costly repairs. 
  • Reduced Downtime: Proactive maintenance helps avoid unexpected service disruptions and delivery delays.  
  • Efficient Fleet Management: Identifying opportunities for work grouping minimizes the time railcars spend out of service.  
Taking a proactive approach means understanding the differences between running and contract repairs, which is crucial for effective railcar maintenance. The AAR rules provide a foundation for safety and efficiency, but proactive monitoring is essential. By leveraging the TransmetriQ Platform, you can consolidate vital insights, ensuring not only compliance but also the smooth and efficient operation of your railcars.
 

Getting Proactive

Achieve peace of mind with a proactive maintenance plan using the TransmetriQ Platform. Our advanced tools and monitoring systems help keep your fleet in peak condition, reducing disruptions and enhancing operational efficiency. Discover how we can help optimize your railcar health management by exploring the full capabilities of the TransmetriQ Platform or contact our team for personalized support.