KKO is often called upon to bring its technical expertise and specialized industry knowledge to bear on strategic planning questions for transportation organizations. KKO provides cost models, verifies forecasts, conducts sensitivity analyses, and develops strategic options for clients who are about to make critical choices about the future of their organization.

MBTA Customer Support Services

Over the last three years, KKO has been working with the MBTA on technological and organizational strategies to improve its management of customer correspondence and service delivery. KKO is presently consulting to senior management on strategies to strengthen the connection between customer feedback and the management of service delivery.

KKO is working with MaineDOT and the Northern New England Passenger Rail Authority (NNEPRA) to define the costs that are generated from the Downeaster service between Portland, Maine and Boston and to determine the funding that will be required to maintain operations.

MBTA Commuter Rail Contract

KKO worked with the MBTA on the development of a Request for Proposals and an Operating Agreement for the procurement of transportation, customer service, mechanical, and engineering services for its commuter rail network. KKO also assisted the MBTA in the mobilization phase for the new contractor.

Macedonian Railways Strategic Financial Plan

For the Macedonia Railway, KKO supported a strategic planning effort to establish freight and passenger profit centers within the railway. KKO developed a financial model to assist in the evaluation of 5-year traffic forecasts and a system of Public Service Obligation payments to the Macedonian Railway for unprofitable passenger services which the Government wishes to continue for social reasons.

MBTA Labor Relations Support

KKO provided support to the Massachusetts Bay Transportation Authority's Labor Relations department in costing contract proposals with various bargaining units at the agency. The goal of KKO's involvement was to provide accurate estimates of costs and/or savings resulting from changes in work rules, benefits, and assignment practices. KKO developed a custom spreadsheet application for quickly evaluating contract proposals during negotiations and assisted the department in budget adherence and service contracts analysis.

Working with Mercer Management Consulting and Arthur Andersen, KKO contributed to a feasibility study to provide recommendations on the privatization of Perumka (Indonesian National Railway). Perumka maintains a rail network on the islands of Java and Sumatra for freight and passenger services. KKO's role was to develop passenger forecasting models that would be integrated in a general financial planning model used to evaluate alternative scenarios for railroad privatization and operation.

Hong Kong Transit Railway Privatization

KKO assisted the team of Mercer Management Consulting and Price Waterhouse with the privatization of the Hong Kong Mass Transit Railway. KKO was responsible for reviewing the concessioning documents. KKO recommended elements of the operations and service planning components to ensure that a high level of service would be provided by the concessionaire.

 

Florida Airports Model

Mercer Management Consulting worked with a public airport authority in Florida to assess opportunities for restructuring and privatization. KKO developed a costing model to evaluate alternative organizational and operational structures.

Metropolitanos, operator of several successful commuter rail lines in Buenos Aires, worked with a team that included KKO and Mercer Management Consulting to plan an upgrade to its operation in order to provide greater capacity with faster, more frequent and more comfortable trains. KKO, working with Argentinean economists, reviewed demand projections and forecast demand revenue projections and then identified improvements in analytical techniques to satisfy foreign investors.

KKO was part of a multifirm team setting up a concession to build and operate a proposed 19 kilometer, two branch, light rail line for Cali, a city of 1.8 million in southern Colombia. The team worked with the national and local government to develop the tender documents and evaluate bids from construction/operation teams for the proposed line. KKO's role in the project was to evaluate and coordinate demand studies, provide ridership forecasts, and develop financial models.

KKO developed a Windows-based, PC budgeting tool that was subject to a nationwide roll-out for Amtrak within 4 weeks of notice to proceed. The PC database tool uses historic data on expenses by function (i.e. train crew, fuel) and operating statistics (i.e. crew hours, locomotive miles) to populate a financial model of Amtrak operations that is used to forecast future budget requirements for each train service or family of trains based on input data concerning service levels. The system generates projected financial profit and loss statements for each train to be used by planning analysts in evaluating options for the operation of each route and train (e.g. Empire Builder, Meteor). The system was used for the first budget Amtrak developed after the enterprise was reorganized into strategic business units comprised of various product lines.

To assist with the historic, 1994 restructuring of Amtrak into three separate business units (Northeast Corridor, West Coast , Intercity Service), KKO managed a project with Mercer Management Consulting to provide Amtrak's Chief Financial Officer with planning and forecasting models to predict the financial impacts of the various strategic alternatives contemplated by the restructuring team.

KKO was part of a team that helped the Chicago Regional Transportation Authority (RTA) consider its options for improving the financial performance of its urban bus and rapid transit service board, the Chicago Transit Authority (CTA). The project developed and evaluated alternative, implementable, and achievable strategies to reduce costs and improve financial performance at the CTA. KKO was responsible for the financial analysis of alternatives using a model based on one which KKO developed for a similar assignment in Chicago in 1989.
 

Polish Rail Privatization Study

Working with Mercer Management Consulting, KKO contributed to a feasibility study to provide recommendations on the privatization of the Polish National Railroad (PKP). KKO's principal role in this project was the development of a financial planning model that allowed rail management and private investors to evaluate alternative operating and privatization strategies. KKO was also responsible for user documentation and training for application of the model. In support of this project, KKO provided aspects of service on-site in Poland.

 

Transit Institutional Analysis

With Mercer Management Consulting, KKO provided analysis of the institutional options available to local authorities in a rapidly growing North American city for operation and financing of public transportation services including continued private operation, subsidized contract carrier operations, and formation of a public entity to own and operate new transit services.

KKO developed a financial planning model for the Chicago RTA with Temple, Barker, & Sloane and DRI. This model allows RTA budget staff to predict how changes in economic and demographic forces will effect the financial and operating conditions for the Chicago Transit Authority, Metra, and Pace.

 

 

 
MBTA Real Estate Services Procurement Support

KKO worked with the MBTA to develop the procurement documents for solicitation of real estate management services for the MBTA's portfolio of holdings. KKO developed the scope of services for the request for proposal and for the contract, prepared the evaluation criteria and assisted the MBTA and the MBTA's outside counsel with the selection process and with the contract negotiations.

KKO and Associates, L.L.C. Five Vine Street Andover, MA 01810 Phone:   978-475-4079 Fax:   978-662-3282