UP Breakdown

[UPTRAIN]

Most railroads that UP bought were dieing railroads, UP bailed them out, dusted them off and ran them right. I don't remember one that UP said, "hey, let's go buy some railroads just to **** people off!" Give em a break already.

[kenneo]

It's not going to make any difference what we think. What is going to matter is when the stockholders pull thier collective head out of the sand that reads ROI and understands that management has run the property into the ground. Then, a buyout firm will purchase the remains and sell it off in pieces. You'ss see the KCS in the far west, NS in Seattle and CSX in Los Angeles -- or perhaps, the West Coast and Eastern owned by Cedar American.

[jeffhergert]

This may come as a shock to some, but business, especially the big ones are run for the benefit of the big institutional investors and senior management. One takes care of the other. To them, long term is the end of the next quarter.
Since I work for the UP, I see some of the questionable decisions that are made. They do a lot that hurts them in the long run. I don't understand undercutting the BNSF to get business but they do it. Maybe it made sense at the time when traffic was down, but now it haunts them when traffic is up. Selling their trucking subsidiary for less than they paid for it and spinning it into a profit then using some of the proceeds for bonuses. Yes, a lot could be done differently.
However, I also see them doing improvements. Every summer there is a major track project going on where I work. Some is just to keep up routine maintenance like new rail or wood ties. Others are upgrading to concrete ties, CTC extensions, a new interchange with a short line that receives coal and grain trains reducing the time the main line is tied up. I can't say what's going on elsewhere on the system, but I'd bet there is a lot of the same going on. Last year it was said that the UP couldn't buy all the wood ties it wanted. Yes sir, that sounds like a company that doesn't put money back into the property.
They still maintain 2 steam engines and a few historic diesels plus a business car fleet. Maybe they should scrap these so they can concentrate on the freight business. Would that make anyone happy?
To me, a lot of this UP hostility comes from them merging someone's favorite railroad. Sorry, but the SP was doomed for various reasons. If it hadn't gone to the UP, it would still be a fallen flag today. And 100 years ago the UP and SP were under the same management. The CNW was kept alive by the UP for at least 20 years. It was inevitable that some day it would be UP property. The MP, well who do you think's running the show. It ain't original UP management.
Or maybe it's their trade mark royaltly requirement. For the record, I too think it's dumb. Will cost more to litigate than they'll ever see in royalty payments. Still, they are within the law to do this. When a country produces more lawyers than it needs, this is what happens.
The UP is not perfect, but it's still running and will be probably as long as there are railroads.

[Anonymous]

Phil-

UP is not necessarily a paragon of corporate virtue, however, you strike me as someone who thinks they have all the answers. I can assure you that you don't. Anything that appears obvious to you is probably equally obvious to UP management and there are likely a dozen reasons they won't work. For example, your idea of using the route through Salt Lake City as an eastbound route for empties may have one or many problems such as labor agreements, inadequate numbers of crews to move trains, congestion on other connecting lines or any one or more of many issues. It is always easier to be the armchair quarterback than to sit in the seat.

LC

[UPTRAIN]

Most prime movers are greasy and oily on the inside, I've yet to see a spotless one!!!!

[Anonymous]

QUOTE: Originally posted by philg


[left]The ongoing blundering by the UPRR management has had a recent culmination in the form of the UP giving up business like most the UPS contract which they had to give to the trucks or BNSF, several chemical contracts in Texas and many container agreements out of Long Beach. My contacts also indicate they are in danger of or Ford has given a portion of their traffic into So. California to BNSF and having GM VERY iritated. When the GM contract went to UP, my sources indicated that the UP had underbid the contract in general to a point where there was no profit, likely just to get the business. I know they then laygaged adding capacity to the Mira Loma auto depot for 2 years likely more. Now they have trains backed up to Yuma, AZ and beyond. Why? "Now that we have it, what doi we do?"
They've also been lally gagging completing double tracking across the Sunset Route. Meanwhile, the stockholders are getting a pretty good return on their investment, that I for one, would rather see put into the big picture which is the future. Oh, don't forget Mr. Davidson getting a 7 figure raise and 11 million bonus. FOR WHAT? He and his management (if that's you want to call them) have NO Clue and should get their pick slips! I think the terminology is "penny wise and pound foolish". And howabout the 6 trains a day on the tracks between Yermo, CA (Barstow, CA) and Salt Lake City. Why not use that as a (mostly) one way east for empties, especially auto racks. Oh DAAAH! They likely never thought about that.
In addition, they give Amtrak a red "neck" to the point the Sunset has been reduced to a milk run coming into LAX 12 + hours late, when UP "could" expidite Amtrak and get bonus money instead of paying out fines.
On the positive side: BNSF is the benifactor of the UP screwups. BNSF will likely charge more for expidited service which one would expect, but aren't they in business to make money? To wit, TRIPLE TRACK is being installed from LA to Riverside (CA) in place of double track that now exists and will soon begin installing the third track in the Cajon Pass. I think that's called "plan ahead" for increased capacity.
OH! Do you think the UP could get one of Mr. Davidson's "crew" to get off their "desk chair" and supervise getting a couple of locomotives washed? A clean locomotive is the best advertisement of a well run railroad". Someone said that. If the outside is dirty, what's the inside of the prime mover look like? I saw a brand new loco they other day that looked like it ran through a mud pit. Maybe it did! I think it's their East LA yard.
What do our Forum dwellers think?

As for ***'s raise and bonus, the shortsightedness in infastructure, and stockholders return, I would imagine them to be as intertwined as anyother snakepit, and is a symptom of of a major weakness in the wallstreet oriented american business system.

CEO's are forced to have their performance judged based upon the quarter ahead and the quarter behind.

If you're like me you've seen dozens of companies that made their name selling first rate products redefine their mission statements and are now producing products that are barely adequate.

Of course, the railroads are foolish playing this game as it is their fixed plant that rots away first, not consumer confidence, that comes later

[philg]

One responder would appear to have a high degree of interest in railroads in general. Therefore, they must have an opinion, in regard to the subject, other than your last response. What do we think? Speak up or they think we're ok with their conduct.
Would my submittion be in the catagory "to talk or say in a loud, wild extravagant way"? Maybe! Maybe someone at the UP will pay attention or-- NOT. But at least you know where we stand.

[Anonymous]

............ranter?????????

[bnsfkline]

ranter

[Anonymous]

I have to agree with you 100%.
BNSF railfan.

[philg]

[left]The ongoing blundering by the UPRR management has had a recent culmination in the form of the UP giving up business like most the UPS contract which they had to give to the trucks or BNSF, several chemical contracts in Texas and many container agreements out of Long Beach. My contacts also indicate they are in danger of or Ford has given a portion of their traffic into So. California to BNSF and having GM VERY iritated. When the GM contract went to UP, my sources indicated that the UP had underbid the contract in general to a point where there was no profit, likely just to get the business. I know they then laygaged adding capacity to the Mira Loma auto depot for 2 years likely more. Now they have trains backed up to Yuma, AZ and beyond. Why? "Now that we have it, what doi we do?"
They've also been lally gagging completing double tracking across the Sunset Route. Meanwhile, the stockholders are getting a pretty good return on their investment, that I for one, would rather see put into the big picture which is the future. Oh, don't forget Mr. Davidson getting a 7 figure raise and 11 million bonus. FOR WHAT? He and his management (if that's you want to call them) have NO Clue and should get their pick slips! I think the terminology is "penny wise and pound foolish". And howabout the 6 trains a day on the tracks between Yermo, CA (Barstow, CA) and Salt Lake City. Why not use that as a (mostly) one way east for empties, especially auto racks. Oh DAAAH! They likely never thought about that.
In addition, they give Amtrak a red "neck" to the point the Sunset has been reduced to a milk run coming into LAX 12 + hours late, when UP "could" expidite Amtrak and get bonus money instead of paying out fines.
On the positive side: BNSF is the benifactor of the UP screwups. BNSF will likely charge more for expidited service which one would expect, but aren't they in business to make money? To wit, TRIPLE TRACK is being installed from LA to Riverside (CA) in place of double track that now exists and will soon begin installing the third track in the Cajon Pass. I think that's called "plan ahead" for increased capacity.
OH! Do you think the UP could get one of Mr. Davidson's "crew" to get off their "desk chair" and supervise getting a couple of locomotives washed? A clean locomotive is the best advertisement of a well run railroad". Someone said that. If the outside is dirty, what's the inside of the prime mover look like? I saw a brand new loco they other day that looked like it ran through a mud pit. Maybe it did! I think it's their East LA yard.
What do our Forum dwellers think?