Grain Car Allocation System (GCAS) Program and Guaranteed Freight Pool Renewal
Announcement Number: AG2014-22
Categories: Domestic Corn Feed Grains and Soybeans,Export Corn Feed Grains and Soybeans,Wheat and Food Grains
Posted Date: June 17, 2014
In anticipation of the expiration of Union Pacific's current Guaranteed Freight Pool Program on September 30, 2014 we would like to share our plans for the next GCAS program which will begin on Oct ,1 2014.
The structure of the existing GCAS program and each car supply component (Vouchers, Guaranteed Freight and General Distribution) will remain basically unchanged. There will a few minor changes to the program which are outline below. Click GCAS Rules to view a draft copy of the new rules.
The Guaranteed Freight Pool portion will be a 3 year commitment as it has been it the past. Click GF Pool Request Form to view and print a copy of the "Guaranteed Freight Pool Program Grain Car Placement Request". Forms should be completed by prospective pool participant and returned by July 15, 2014. The Guaranteed Freight Pool Program best positions both the Railroad and the customers for reliable, timely supply of grain cars. The Grain Car Voucher Auction and General Distribution Programs will continue to be available under the Grain Car Allocation System. These programs are also described in the Grain Car Allocation System tariff. Based on the size of the next Guaranteed Freight Pool Program and the number of shuttle trains allocated, the grain car capacity available in those programs may change.
Summary of Program Changes:
- Unit Train Vouchers - All unit train vouchers will be offered as 100 car units. Premium and deposit will be based on 100 cars. Voucher can be used to order 75, 100 or 110 cars. The entire deposit will be refunded at the time the unit train is shipped. The new "generic" unit train voucher will have more liquidity in the secondary market.
- Voucher Minimum Bid - will be increased from $1 per car to $10 per car. Minimum bid in the shuttle auction will remain at $0.
- Origin Transfer Fee - will be increased from $25 to $35 per car
- General Distribution Order Cancelation Fee - will be increased from $70 per car to $100 per car - this applies to GD car orders that are cancel within 30 days
Program Renewal Timeline:
- Today - Program announcement and beginning of the GF pool sign up period
- Jul 15 - GF pool participation sign up deadline
- Aug 1 - Signed agreements completed
- Sep 22 - FH Oct orders due
- Oct 1 - Agreement term begins
If you have any questions please contact your Union Pacific representative or Dave Muck (402) 554-6264, DPMUCK@UP.COM or Darren Wisniski (402) 544-4190, DJWISNIS@UP.COM.