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UP forecasts 4-6% volume increases in 2021 except coal

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  • Member since
    January 2021
  • 3 posts
Posted by StStephen on Tuesday, January 26, 2021 7:55 PM

Reading more of the transcript from the call around the service metrics, one sees that the analyst asking the questions pressed more on if that wasn't a way to improve overall. The UP team basically said they felt it was close to where it needs to be. Translation: we don't need to provide truck-competitive service: our low rates are what supports our customers' needs. Some of the transcript from the call:

 

David Vernon -- Bernstein -- Analyst

 

And is there any sort of tension between enterprise clients number and train length I guess know like operationally I would think that there might be a little bit of tension there, but I mean this is OK a situation where we are right now where we're maximizing efficiency and may be leaving some growth on the table, is that the way to think about it or is that not the way to think about it.

 

Lance M. Fritz -- Chairman, President and Chief Executive Officer

 

No, I don't think that's the right way to think about it, David, although you're right that we have moved virtually all I think all of our critical operating KPIs in 2020 favorably in comparison to 2019 both the efficiency and productivity measures and the service measures. So we've demonstrated we can't move them both in the same direction, it's not easy, right, that's not a layup because if we don't think about our network right, we can't get into a place where we're making those false trade-offs between productivity and efficiency in the service product. I label on false trade-offs because I think they are -- we think about our network right, we can do the hard work of both.

As long as you take the "Precision" and the "Scheduled" out of PSR, UP is doing okay. Add those in and, well, looks like a fail to me. That is, if long-term market relevance matters.

  • Member since
    May 2003
  • From: US
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Posted by BaltACD on Tuesday, January 26, 2021 2:40 PM

jeffhergert
That's funny.  A conductor I worked with a few trips back met one of the big wigs of the Northern Region out on a tour.  He told my conductor UP expected a 5% decrease in business for 2021.

I admit my co-worker may have heard wrong.  I know he got pretty upset over the "visit."  After hearing this guy talk about how they have plans on reducing head count among the TE&Y, they really want one person crews but have other "options" in the wings, that my co-worker told this guy that he was a "non-revenue" employee.

Jeff 

Off the record statements by secondary Officials tend to be much more accurate than on the record statements by the big wigs.  They are playing to two different audiences.

Never too old to have a happy childhood!

              

  • Member since
    September 2002
  • From: Sterling Heights, Michigan
  • 1,691 posts
Posted by SD60MAC9500 on Tuesday, January 26, 2021 12:28 PM
 

jeffhergert

That's funny.  A conductor I worked with a few trips back met one of the big wigs of the Northern Region out on a tour.  He told my conductor UP expected a 5% decrease in business for 2021.

I admit my co-worker may have heard wrong.  I know he got pretty upset over the "visit."  After hearing this guy talk about how they have plans on reducing head count among the TE&Y, they really want one person crews but have other "options" in the wings, that my co-worker told this guy that he was a "non-revenue" employee.

Jeff 

 

I'll give credence to your co-worker.

 
Rahhhhhhhhh!!!!
  • Member since
    July 2006
  • From: KS
  • 999 posts
Posted by SFbrkmn on Friday, January 22, 2021 6:46 PM

UP has recently cracked the PSR game here in Wichita. Just about all classification work gone, only road job originating is a LBV59 local, yardmasters were abolished last yr and carman jobs also have also been whacked. RIP track is still in place but w/a skeleton crew five days a wk. Common site to see both MP and Katy yards to be mostly empty.

  • Member since
    March 2003
  • From: Central Iowa
  • 6,901 posts
Posted by jeffhergert on Thursday, January 21, 2021 7:04 PM

That's funny.  A conductor I worked with a few trips back met one of the big wigs of the Northern Region out on a tour.  He told my conductor UP expected a 5% decrease in business for 2021.

I admit my co-worker may have heard wrong.  I know he got pretty upset over the "visit."  After hearing this guy talk about how they have plans on reducing head count among the TE&Y, they really want one person crews but have other "options" in the wings, that my co-worker told this guy that he was a "non-revenue" employee.

Jeff 

  • Member since
    September 2003
  • 21,669 posts
Posted by Overmod on Thursday, January 21, 2021 6:21 PM

charlie hebdo
Rail-related news instead of Canadian oil and what ifs.

Except now I'm wincing, getting ready for Powder River coal and PSR what ifs... Tongue Tied

It was a fine good-faith effort, though, and I applaud your having made it.

  • Member since
    September 2017
  • 5,636 posts
UP forecasts 4-6% volume increases in 2021 except coal
Posted by charlie hebdo on Thursday, January 21, 2021 5:45 PM

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