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The Union Pacific Thread

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Posted by BaltACD on Monday, December 19, 2022 6:07 PM

Murphy Siding
As an outsider looking in, I wonder if the railroads' immediate plans are to replace two higher trained (and higher paid) people in the cab with one higher trained & paid and one lesser trained & paid? You'd still have those two sets of eyes in the cab. You'd still have somebody to walk the train. It would probably be easier to find someone for the position. Those that showed promise could still become engineers, they just wouldn't have to be forced to. You coul give the position a new name. Maybe fireman?

The railroads immediate plans - if they got their 'dreams' is one minimaly paid pair of eyes in the cab - training; who you trying to kid.  And if they are forced into it, one minimally paid 'utility man' per thousand square miles.

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Posted by zugmann on Tuesday, December 20, 2022 3:32 PM

I like how they have a truck full of tools on that video.  Like most conductors are going to be changing out traction motors on the main.  

 

 

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

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Posted by BaltACD on Tuesday, December 20, 2022 4:56 PM

zugmann
I like how they have a truck full of tools on that video.  Like most conductors are going to be changing out traction motors on the main. 

The video was of a MofW group of employees - don't know what their railroad purpose was that had brought them to the location where they got stuck.  There are myriad of railroad locations that are not routinely accessable by other than rail access.  The 'flying utiltity man' is a figment of cost cutters brain damaged minds.

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Posted by zugmann on Tuesday, December 20, 2022 4:59 PM

BaltACD
The video was of a MofW group of employees

I was referring to the road conductor video and his dod...err...RAM pickup. 

Not Ron's video. 

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

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Posted by SD60MAC9500 on Tuesday, January 24, 2023 8:26 PM
 

UP's Pecos River Bridge at Santa Rosa, NM is currently out.

 

 

https://www.up.com/customers/announcements/customernews/allcustomernews/CN2023-4.html

 
Rahhhhhhhhh!!!!
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Posted by kgbw49 on Tuesday, January 24, 2023 9:21 PM

So there's no service west of the Pecos. Take your complaints to Judge Roy Bean.

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Posted by charlie hebdo on Wednesday, January 25, 2023 10:04 AM
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Posted by jeffhergert on Wednesday, January 25, 2023 4:42 PM

charlie hebdo

The pilot plan was put on hold...for the time being.

https://digitaledition.chicagotribune.com/html5/mobile/production/default.aspx?edid=ecccb5b0-cfa5-498a-b1ce-ae1fa1ac21da

I couldn't get the article, but if it's about the "expediter" test - yes it's been tabled for now.  I guess they have been trying something like that somewhere down on the southern portion of the railroad.  The one who was telling me about it said they were tearing up too many trucks (probably tires) getting to the trains.

Meanwhile, the UP wants to suspend temporarily the signal system out west on a small portion of mainline.

Track conditions on short stretch of main line in Nevada prompt UP to seek permission to temporarily deactivate signals and CTC - Trains

Jeff

 

 

 

 

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Posted by BaltACD on Wednesday, January 25, 2023 5:37 PM

jeffhergert
 
charlie hebdo

The pilot plan was put on hold...for the time being.

https://digitaledition.chicagotribune.com/html5/mobile/production/default.aspx?edid=ecccb5b0-cfa5-498a-b1ce-ae1fa1ac21da

I couldn't get the article, but if it's about the "expediter" test - yes it's been tabled for now.  I guess they have been trying something like that somewhere down on the southern portion of the railroad.  The one who was telling me about it said they were tearing up too many trucks (probably tires) getting to the trains.

Meanwhile, the UP wants to suspend temporarily the signal system out west on a small portion of mainline.

Track conditions on short stretch of main line in Nevada prompt UP to seek permission to temporarily deactivate signals and CTC - Trains

Jeff

The 'bean counter' element that come up with such ideas have no idea what world the real world of railroad actually exists in, with probably 30% of the Class 1 properties being UNACCESSABLE except by rail.

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Posted by CSSHEGEWISCH on Thursday, January 26, 2023 9:55 AM

The accountants would not have any input into the decision-making, their function is to ensure that the data used is accurate.

The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Posted by BaltACD on Thursday, January 26, 2023 1:04 PM

CSSHEGEWISCH
The accountants would not have any input into the decision-making, their function is to ensure that the data used is accurate.

There is a element of 'top level' operating management that considers themselves 'bean counters'.  Real accountants need not apply even though they have no more understanding of real operations than do the 'bean counters' I have mentioned.

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Posted by tree68 on Thursday, January 26, 2023 1:49 PM

BaltACD
There is a element of 'top level' operating management that considers themselves 'bean counters'.  Real accountants need not apply even though they have no more understanding of real operations than do the 'bean counters' I have mentioned.

Accountants count, simple as that.

I suspect a better moniker for the top level folks would be "financial analysts."  They look at the numbers and try to figure out how to make them look better (ie, cutting services, etc).

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Posted by BaltACD on Thursday, January 26, 2023 2:32 PM

tree68
 
BaltACD
There is a element of 'top level' operating management that considers themselves 'bean counters'.  Real accountants need not apply even though they have no more understanding of real operations than do the 'bean counters' I have mentioned. 

Accountants count, simple as that.

I suspect a better moniker for the top level folks would be "financial analysts."  They look at the numbers and try to figure out how to make them look better (ie, cutting services, etc).

They only know the numbers.  Not what the numbers represent.

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Posted by MikeF90 on Thursday, January 26, 2023 7:54 PM

tree68
I suspect a better moniker for the top level folks would be "financial analysts." They look at the numbers and try to figure out how to make them look better (ie, cutting services, etc).

With the obligatory MBA degree, a.k.a. MBAhole.

In public 'Wall Street' facing companies, their tools seem to be limited to cost cutting and stock buy-backs. Anything else would upset the generic outside 'analyst' and cause a stock price disruption.

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Posted by Erik_Mag on Thursday, January 26, 2023 9:55 PM

tree68

I suspect a better moniker for the top level folks would be "financial analysts."

My take is that an accountants primary job is to produce an accurate report that accounts for where the money came and where it went out. Part of that role is to keep the folks who sign the checks honest. Sophisticated bookkeeping, bt a job that needs to be done.

A financial analyst would be more like an actuary in trying to get a better idea of where the profits and losses are coming from. FWIW, my daughter started college working on a degree in actuarial math and decided to switch to financial math after meeting a few actuarials. One application for financial analysis is trying to get an accurate number for the incremental costs in running a train - which is much easier said than done.

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Posted by SD60MAC9500 on Friday, January 27, 2023 11:22 AM
Rahhhhhhhhh!!!!
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Posted by Overmod on Friday, January 27, 2023 2:29 PM

Here is UP's list of embargoes:

https://www.up.com/customers/embargo/list/index.htm

and for reference here is AAR Circular TD-1, with its list of all the things an embargo can't be:

https://public.railinc.com/sites/default/files/documents/TD-1.pdf

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Posted by SD60MAC9500 on Sunday, February 26, 2023 3:47 PM
 

Investor looking to boot Lance Fritz. Chasing 55 looks to be chasing Lance out the door..

https://www.trains.com/trn/news-reviews/news-wire/union-pacific-to-seek-new-ceo-after-hedge-fund-prods-board-of-directors/

 
Rahhhhhhhhh!!!!
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Posted by kgbw49 on Sunday, February 26, 2023 5:25 PM

Soroban’s presentation makes some compelling points.

Fred Frailey recognized this in his epic October 20, 2019 blog post “Whatever Happened To UP?”

It is true that underlying the volume growth performance of UP (and BNSF) that has been referenced by Soroban has been the continued precipitous decline in PRB coal loads and Colorado coal loads as more and more coal plants are retired each year. This was high-volume-low-operating-cost business that was a significant double-digit percentage of all UP loads not all that long ago.

But it is up to management to figure out how to make the transition to a low-coal-loads world, which necessitates figuring how to generate volume in other load categories of the railroad.

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Posted by jeffhergert on Sunday, February 26, 2023 7:17 PM

They kicked Vena out allegedly because he refused some westbound grain business.  All because it would've required more people and equipment than his (and EHH's) vision of running a balanced system allows.  Only have on hand enough people and equipment to run a set, predetermined amount of volume in each direction.  Don't have any reserve for temporary upswings or new business.  Nevermind that it would bring in revenue and more money in their pocket.

The rumors were that BlackRock was the single largest investor, that they had Vena brought in.  After they sold some of their holdings and Vanguard became the top dog, they wanted to see more volume and revenue growth.  That's when Vena was "allowed to walk away" by not renewing his contract. 

I was hoping once Vena was out they would've actually tried to go after more business and increase volumes.  They talked, and still talk, about needing growth, but mostly it's still cuts where ever they can.  Any new business seems to be the "low hanging/easy to handle" type.

The kind of performance that Soroban Capital cares about is purely financial.  Vena won't improve the railroad, except maybe by running off more customers.  

Jeff

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Posted by SD60MAC9500 on Sunday, February 26, 2023 7:55 PM
 

jeffhergert

They kicked Vena out allegedly because he refused some westbound grain business.  All because it would've required more people and equipment than his (and EHH's) vision of running a balanced system allows.  Only have on hand enough people and equipment to run a set, predetermined amount of volume in each direction.  Don't have any reserve for temporary upswings or new business.  Nevermind that it would bring in revenue and more money in their pocket.

The rumors were that BlackRock was the single largest investor, that they had Vena brought in.  After they sold some of their holdings and Vanguard became the top dog, they wanted to see more volume and revenue growth.  That's when Vena was "allowed to walk away" by not renewing his contract. 

I was hoping once Vena was out they would've actually tried to go after more business and increase volumes.  They talked, and still talk, about needing growth, but mostly it's still cuts where ever they can.  Any new business seems to be the "low hanging/easy to handle" type.

The kind of performance that Soroban Capital cares about is purely financial.  Vena won't improve the railroad, except maybe by running off more customers.  

Jeff

 

 

+1

 
Rahhhhhhhhh!!!!
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Posted by kgbw49 on Sunday, February 26, 2023 8:15 PM

CN's new CEO recently said (paraphrasing) that they were focusing on volume growth and less so on operating ratio going forward. Time will tell.

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Posted by mudchicken on Sunday, February 26, 2023 8:44 PM

With all the dubvious finger pointing by the political knotheads and know-nothings, why not just throw the SEC into the mix and investigate Soroban and Vena? 

Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west
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Posted by kgbw49 on Sunday, February 26, 2023 9:45 PM

Just for the heck of it I pulled a couple of key pieces of data from 2022 Financial Reports:

CP

Total Revenues $8.814 Billion, Net Income $3.517 Billion, Net Income % of Revenues 39.90%, Operating Ratio 62.2, Carloads 2.782 Million (Net Income includes some one-time items related to KCS aquisition)

CN

Total Revenues, $17.578 Billion, Net Income $5.118 Billion, Net Income % of Revenues 29.12%, Operating Ratio 60.0, Carloads 5.697 Million

NS

Total Revenues $12.758 Billion, Net Income $3.270 Billion, Net Income % of Revenues 25.63%, Operating Ratio 62.3, Carloads 6.835 Million

CSX

Total Revenues $14.986 Billion, Net Income $4.166 Billion, Net Income % of Revenues 27.80%, Operating Ratio 59.5, Carloads 6.218 Million

UP

Total Revenues $25.301 Billion, Net Income $6.998 Billion, Net Income % of Revenues 27.66%, Operating Ratio 60.1, Carloads 8.169 Million

BNSF

Total Revenues $25.888 Billion, Net Income $5.946 Billion, Net Income % of Revenues 22.97%, Operating Ratio 65.9, Carloads 9.549 Million

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Posted by SD70Dude on Sunday, February 26, 2023 11:34 PM

Vena decided he didn't want the CN CEO job after TCI nominated him for it a year or so ago.  Was he holding out for this UP position, or does he just want to stay retired and enjoy his golden parachutes?  

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Posted by Overmod on Tuesday, February 28, 2023 4:02 PM

Some additional reading material:

https://www.railwayage.com/wp-content/uploads/2023/02/Soroban-PresentationtoUnionPacificsBoardofDirectors.pdf

I for one will be interested to see where decarbonization enabling comes in with maximizing shareholder return.

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Posted by kgbw49 on Tuesday, February 28, 2023 9:54 PM

Perhaps the new regulations for diesel truck engines that became effective on December 20, 2022 just before Christmas will have some impact on modal shift.

https://www.epa.gov/regulations-emissions-vehicles-and-engines/final-rule-and-related-materials-control-air-pollution

 

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