Union Pacific Update on Positive Train Control

Announcement Number: CN2015-69
Categories: General Announcements
Posted Date: October 26, 2015

To Our Customers,
 
As a follow-up to our Sept. 9 communication with you regarding our plans to embargo Toxic Inhalation Hazard (TIH) traffic if Congress does not pass an extension of the Positive Train Control (PTC) deadline, the House of Representatives introduced a bill on Friday to extend installation of PTC to Dec. 31, 2018. The bill will be on the House floor tomorrow, and if passed, move to the Senate. While we remain hopeful that Congress will pass the bill, we want to share what we will need to do in the event the PTC deadline is not extended.
 
Union Pacific is on track to spend $2 billion by the end of 2015 and has 1,000 workers dedicated to developing and implementing PTC on our franchise. We already have PTC partially installed on 70 percent of our locomotives, and about 67 percent of our track miles currently have PTC hardware and software installed. While we have made significant progress on this monumental undertaking, Union Pacific will not meet the Dec. 31, 2015 deadline.
 
We understand the impact our ability to transport goods and products has on our customers' businesses and the U.S. economy, and have carefully considered the legal implications of non-compliance with the looming deadline. If the PTC installation deadline is not extended, Union Pacific will issue an embargo on TIH chemicals effective Monday, Nov. 30, 2015, and suspend passenger train operations by the end of December. These decisions have not been made lightly. We believe embargoing TIH traffic and suspending passenger trains, the two types of traffic that necessitate PTC installation, are the most prudent decisions weighing all factors.
 
Union Pacific remains committed to installing PTC as quickly and safely as we can. We will continue to communicate with you as developments unfold.
 
Sincerely,

Original | Eric Butler Signature

Eric Butler
Executive Vice President Marketing and Sales