Union Pacific and Pacer / Contract

[CAZEPHYR]

• Does anyone know if this contract has anything to do with the Double Stacks over Donner starting up soon???

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• Companies:

  • Pacer International Inc.

CONCORD, Calif.--(BUSINESS WIRE)--Pacer International, Inc. (Nasdaq: PACR - News), the asset-light North American freight transportation and logistics services provider, today announced that it has entered into new arrangements with Union Pacific Railroad (UP) that will further accelerate Pacer’s transformation into a fully-integrated, door-to-door intermodal service provider. In addition, Pacer reported today its financial results for the three- and nine-month periods ending September 30, 2009.

NEW ARRANGEMENTS BETWEEN PACER AND UNION PACIFIC

Related Quotes

Symbol	Price	Change
PACR	3.92	+0.15

{"s" : "pacr","k" : "c10,l10,p20,t10","o" : "","j" : ""}

• Multi-year arrangements provide continued access to the entire UP intermodal rail network and establishes a new rate structure.
• Pacer increases focus on door-to-door integrated intermodal services with seamless coordination and control of equipment, technology, and service delivery.

[Paul_D_North_Jr]

Not really.  From other reports I gather that this contract is mainly to replace an existing one from the 1990s that is due to expire in 2011 or so - so it's just the 'next contract' being put into place - planning ahead before it's actually needed or used.  If you look at the timing, the double-stack modifications started long before this deal was finalized or announced. 

I'm not saying that Pacer double-stack traffic will never go over Donner - and it may have been a forseeable or expected traffic factor in UP's plans - but Pacer is not the only or even a major reason for those clearance improvements, as I understand it.

- Paul North.