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

Maine's Greater Portland Transit adds pass for high school students

The Transit Pass allows free and unlimited use of METRO bus routes during the academic school year, including weekends and break periods.

San Francisco introduces interactive, online performance dashboards

The site contains results from 13 key areas, including the percentage of on-time performance, mode share, crime stats, the agency’s carbon footprint, collision data and other information aligned with the SFMTA’s strategic plan.

ABC founder, industry icon Clancy Cornell passes

The founder of ABC Companies, Clancy grew a small transport service — Faribault Bus Service — into an industry force leaving an indelible list of accomplishments and memories in his path.

Chicago to buy 125 new buses per Mayor's 'modernization' plan

The new bus order is part of a contract CTA awarded to Nova Bus in January 2013. The new buses will replace the oldest vehicles in the fleet – the Nova 6400-series buses, which were purchased between 2000-2002.

Allied Specialty Vehicles names Furman to VP sales post for ASV Bus

Shawn Furman has been named southeast regional VP of sales for ASV Bus. Furman will represent ASV’s commercial, transit and school bus brands and report to John Walsh, vice president of sales and marketing for ASV Bus.

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 resource for managers of class 1-7 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