OMAHA, Neb. — Union Pacific says its new operating plan continues to gain traction. “Since September, overall operating inventory has been reduced by 10 percent, car velocity is up 7 percent, and dwell is down 10 percent, all of which in…
The plan cannot be the PSR of EHH - the customers aren’t lined up at the STB about the poor service yet.
I suspect that’s because UP wants to stay in business…
The difference between a pearing knife and a meat cleaver ?
Isn’t UP implementing a sort of Precision Scheduled Railroading “Light” version? True Hunterites would say PSR is an all or nothing proposition… UP appears to be taking a middle ground. Who knows… they could be on to something. No doubt many there still remember the nightmare that was UP shortly after the merger with SP in the 90s. No one wants to go there again.
As I understood the situation, when the UP swallowed the SP, the powers that were knew what the SP was doing, but did not attempt to find out why the SP was doing it, and rushed in with the “right” way of running the railroad–and succeeded in bolluxing too many operations.
As to Mr. Harrison and the CSX, he apparently thought, as the UP heads had thought, that his solution would solve all problems immediately.
I would say that sane, thinking heads now predominate at the UP.
We’ll see how the shareholders like the middle ground in the upcoming months.
I might add, when the split of of CR took placed, CR Operating Management was placed in the top positions at CSX and they implemented a CR style operating plan and quickly brought the CSX System to a gridlocked halt, and FRA Supervision. CSX after gridlock changed the top Operating Management positions to CSX personnel, by showing the CR boys the door, and dug the operation in to a functioning system.
EHH featured CSX didn’t know what they were talking about when he attempted to implement a CR style operating plan.
Likely outcome is some price fluctuation over the short term and a moderate increase over the longer term that is in keeping with historical averages. But who knows… its all speculation regardless of what anyone says…
We’ve adopted a PSR type operation because the customers want the better service it brings. The customers have asked why UP can’t be like those other railroads that have benefitted from PSR. The EVP of operations said so in a letter to employees.
It’s funny that he forgot to mention about how the wall street analysts asked why UP can’t be more like CSX.
Jeff
Quoting Jeff: "It’s funny that he forgot to mention about how the wall street analysts asked why UP can’t be more like CSX. " It’s because the UP learned several years back not to jump in without examining the situation carefully. I’m glad I have nothing to do with the Wall Street analysts.
I think back to that time when the UP jumped in with its solution–my company needed a certain part to releive a machine down situation. I was asked why the shipment could not be stopped (in the middle of nowhere?). I did not try to explain why.
There are some fails, but they are not shipping related…I’m seeing enough evidence of that already. (and then there is the employee stress level)
Perhaps the fact that the STB is shut down is why customers are not lined-up at the door. They would have found the door is locked and the phones are not being answered.