UP to implement Precision Scheduled Railroading

[Shortline614]

http://trn.trains.com/news/news-wire/20 ... ailroading" onclick="window.open(this.href);return false;

UP is implementing E. Hunter Harrison's Precision Scheduled Railroad, only two months after Wall Street asked CEO Lance Fritzs why UP isn't more like CSX, ie: having a low operating ratio.

[Wayside]

There is a momentous struggle in Omaha these days. What to do, what to do, after you manage to pour ice-cold cold water over the morale of what was a dynamic work culture a few short years ago under Jim Young. A title of this story could be "The Big Squander."

[Shortline614]

https://www.railwayage.com/freight/up-more-like-csx/" onclick="window.open(this.href);return false;

New article up from railway age. Most of it isn't all that interesting, mostly just giving us info that we allready know.

The only new infomoation in the article is that Union Pacific implementing Precision Scheduled Railroading might be apart of a larger strategy of binging about an eventual UP-CSX merger. Considering how Hunter Harrison's people have atemped mergers at other railroads in the past, CN-BNSF, CP-NS, CP-CSX, so I could very well see this being the case. On the other hand UP has made it very clear in the past that they will oppose any more mergers between Class 1's, as they think that it will bring about the re-regulation of the railroading industry though things like reciprocal switching.

The article states that the next round of mergers will be UP-CSX-CP and BNSF-NS-CN, with KCS staying independent. However I tend to believe that the next round, will be UP-CSX and BNSF-NS, with CN, CN and KCS remaining independent. KCS because in any merger scenario, they would probably be forced to devest their Mexican and Panamanian holdings, and CN and CP because the sheer regulatory challenges of having a cross border mega merger. Same goes with KCS to some extent.

[Wayside]

I had a dream recently in which I learned that UP and CSX had merged. I recall a very clear conversation (in the dream) with my former supervisor at UP about it. My main contention was "What will they call it? They surely won't abandon the UP brand!"

Interesting times. I'm glad I'm retired, though.

Thanks for posting the article. Bill Vantuono is an excellent writer and very atstute about the current scene.

[Shortline614]

http://cs.trains.com/trn/b/fred-frailey ... oment.aspx" onclick="window.open(this.href);return false; Another great article about UP implementing PSA, this time from Fred Frailey.

I do agree that UP has a lot of excess trackage that they need to shed off in order to become an efficient railroad, as they are plagued by lower-density lines that would make perfect ground for a new shortline or regional. We could see the revival of the western/midwestern regional thanks to UP. They are in the early process of evaluating what lines to keep and what lines to sell, as evident by this line in the original Trains article, "UP declined to provide additional details but had said it was in the early stages of reviewing its operating plan on a corridor-by-corridor basis." This is very similar language that CSX used when they first announced their line sales back in January.

While the Steam Program and the Business Car Fleet are expensive burdens on UP, I highly doubt that they will be downsizing or shutting them anytime soon, as both are sources of major pride for the railroad. As for the hump yards, whether or not they will be shut down remains to be seen. Do expect a lot of employees to be laid off though.

UP is currently in the process of streamlining their network through the implementation of PSA, while also reinvesting money back into the remaining network. Unfortionly CSX back east is only doing the former, which, in a time of unprecedented economic growth, is not the right action to take. CSX, take notes.

[John_Perkowski]

UP is currently in the process of streamlining their network through the implementation of PSA, while also reinvesting money back into the remaining network. Unfortionly CSX back east is only doing the former, which, in a time of unprecedented economic growth, is not the right action to take. CSX, take notes.

Here in Kansas City I get to see UP and BNSF hard at work. You’re right, both systems are very, very good about reinvesting capital. I am a shareholder, and I am delighted.