Bus

CTA implements further management efficiencies

Posted on September 15, 2010

As the Chicago Transit Authority (CTA) prepares its 2011 Budget, CTA President Richard L. Rodriguez identified $53.6 million in management efficiencies designed to help the agency weather the continued economic challenges without adversely impacting the current level and quality of service provided to customers.

Rodriguez directed CTA's departments to streamline costs while maintaining CTA's core mission of providing on-time, clean, safe, courteous and efficient service.

Approximately $36 million of cost savings will be a result of personnel efficiencies. CTA will save approximately $7.2 million in salaries and benefits by eliminating more than 70 positions — including more than a dozen at manager level. A savings of $13.7 million in salaries and benefits will be achieved by delaying hiring for open positions that are deemed necessary, but are not safety related or directly impact service.

Continuing to manage and control overtime is expected to save an additional $5.5 million in next year's budget. In 2011, non-union employees will again forgo wage increases and will be required to take up to 18 unpaid days for an additional savings of $9.7 million.

In addition, CTA will save approximately $17.5 million as departments continue to aggressively streamline operations and reduce expenditures such as fuel, power, materials and contracts in 2011.

CTA also continues to realize savings through the reduction of fuel consumption by its bus fleet. By retiring older buses from its fleet and replacing them with more fuel efficient buses, most recently hybrids, CTA saves approximately $7 million per year in maintenance, parts, and labor costs, including more than $900,000 annually in fuel costs.

By using a long-term, layered fuel hedging strategy, the CTA is now spending $30 million for fuel versus a budgeted amount of $36.5 for the first seven months — resulting in a savings of $6.5 million to date.

"The financial challenges we're experiencing are not exclusive to the CTA," added Rodriguez. "Just like other businesses around the nation, we continue to strive for ways to be fiscally responsible and maintain operations until the economy recovers."

 

 

View comments or post a comment on this story. (0 Comments)

More News

VIA debuts first of 400-plus new CNG buses

The new 40-foot buses, manufactured by Nova Bus, feature a 67-passenger capacity.

Lane Transit District seeks $30M from state for BRT

LTD is hoping to get the money in the form of Oregon Lottery-backed bonds, to use as matching funds for a federal grant it plans to apply for.

REV Group acquires Midwest Automotive Designs

The acquisition enhances REV’s product offerings in the commercial segment of its bus division, by adding multiple products for the luxury limousine, charter and tour bus markets.

NJ Transit awards MCI 2nd year of 6-year Commuter Coach contract

The company’s three-decade relationship with NJ TRANSIT continued in November 2015 with the company winning a competitive procurement to manufacture and deliver up to 1,222 commuter coaches.

ARBOC releases Ford Spirit of Independence model

The vehicle features a 96-inch width and a flat floor design that allows stress-free maneuverability for up to fifteen ambulatory and five wheelchair passengers, according to the company.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close