Union Pacific Railroad today reported second-quarter 2022 operating revenue jumped 14% to $6.3 billion and operating income climbed 1% to $2.5 billion compared with the same period a year ago despite service problems that have plagued the major Class Is in recent months.
UP reported Q2 net income of $1.8 billion, or $2.93 per diluted share, compared with $1.8 billion, or $2.72 per diluted share, a year ago.
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Union Pacific Railroad is beginning to "strategically and gradually" return some of its rail cars to the network, as the Class I continues to work on improving freight-rail service, a UP executive informed customers late last week.
In a July 15 letter, UP Executive Vice President Kenny Rocker reported that, minus an expected slowdown over the July 4th weekend, UP’s metrics continued to improve this month compared with performance in April.
"We are in the beginning phases of strategically and gradually returning some Union Pacific-owned cars into the network," the letter stated, which is posted on UP's website. "We will continue to work with each of you to balance the need to bring additional cars online as we increase car velocity and reduce cycle times."
Rocker wrote to customers in April to announce UP would remove 2% to 3% of its own rail cars and would begin metering traffic if customers didn’t voluntarily reduce their inventory. The railroad also announced it has added dozens of locomotives since January to help move cars along.
Rocker's letters to customers are part of a broader effort by the nation's largest freight railroads to improve their service to customers. After being inundated with shipper complaints about freight-rail service, the Surface Transportation Board ordered UP and some other Class Is to correct their service problems and regularly report their progress to the board.
In his July 15 letter, Rocker also reported that UP's hiring efforts are "in full swing" to add train crew members to help step up service levels.
"Year to date, approximately 400 [new hires] have graduated, and approximately 500 more are in training,” Rocker wrote. "In July, we expect to hire enough crew members to offset turnover and then some, and in the third quarter, we expect to see a significant number of graduates."© © Trade Press Media Group, Inc.
Southwest Texas Junior College students huddle around the contribution check from UP. Behind the check are, from left, Ken Kuwamura (in light blue), UP manager of talent acquisition; Raquel Espinoza, UP senior director of public affairs; Esmerelda Arreola, the college's Diesel Technology Program lab assistant; Texas State Rep. Eddie Morales and his wife Helen Morales; and Tom Blevins, UP superintendent of train operations.
Photo – up.com
Union Pacific Railroad has partnered with Southwest Texas Junior College to expand the school's Diesel Technology Program in Eagle Pass, Texas.
UP contributed $380,000 to help the college pay for a 2,100-square-foot addition to the diesel technology training facility, as well as the purchase of hands-on training equipment.
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Union Pacific Railroad today announced it has joined the RailPulse coalition to support its effort to develop, broaden and accelerate the use of GPS and other telematics technologies in North America’s freight-rail industry.
UP is RailPulse’s seventh member. The other six are GATX Corp., Genesee & Wyoming Inc., Norfolk Southern Railway, TrinityRail, Watco and The Greenbrier Cos.
RailPulse was formed in 2020 as a coalition of rail-car owners working together to support the development and use of GPS and other telematics technologies. The goal is to provide real-time information and sustained visibility of a rail car’s status, location and condition to shippers, rail-car owners and railroads.
"The use of technology to increase shipment visibility is critical for ensuring we meet the needs and expectations of our customers who rely upon us for safe and reliable service," said Kenny Rocker, UP's executive vice president of marketing and sales, in a press release.© © Trade Press Media Group, Inc.
The Class I's Mexican franchise was created May 8, 1992.
Photo – UP
Union Pacific Railroad this week marked the 30th anniversary of Union Pacific de Mexico, the Class I's Mexican franchise that was created on May 8, 1992.
UP has been a "protagonist of growth" amid increased trade between the United States and Mexico in segments including beer, grain, automotive, appliances, metals, coal and finished fuels, wrote Vice President of Mexico, Marketing and Sales Beto Vargas Garcia on UP's Inside Track website. The Class I began doing business in Mexico two years before the North American Free Trade Agreement went into effect in 1994, when Mexico's rail industry was privatized.
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