Almost one year ago, I returned to Union Pacific. I could not be happier with our progress to become the best in Safety, Service and Operational Excellence.
Note: In this letter to employees, Jim reflects on his first year as Union Pacific CEO.
Looking at our most recent quarterly results, I am very proud of how the team has continued to rise to the challenges that come with operating the largest railroad in North America, always expecting the unexpected, and looking for and delivering what is possible. Thank you for another strong quarter.
Looking back on the past year, the team is clearly proving we have what it takes to achieve what is possible. I’ve shared stories about why we will never compromise on Safety. Year to date, we improved our reportable injury rate 20% and reportable derailment rate 15%. More importantly – more employees went home safe to their families, and our customers and communities experienced fewer disruptions. We rolled out a new safety strategy and are revitalizing our culture, enhancing our training and improving the way we communicate with our teams. All of these efforts are part of our journey to be the best at safety. Nothing is more important, and we will never rest on this goal.
I’ve spent the year speaking with many customers, who rely on us to deliver the Service we sold and keep our promises. They are frank about when we do, and when we don’t. We introduced a new metric, Service Performance Index (SPI), that challenges us to ensure the service customers receive today matches up against our best performance over the last three years. Our goal is to get consistently better, and we are. Over the past 12 months, Manifest SPI improved 7.2 points and Intermodal SPI improved 11.4 points.
Our customers and regulators share our service goals and expect us to keep delivering reliable service, and to prove it over time. I have no doubt we will. They are also counting on Operational Excellence, which means we must have a buffer – with people and equipment ready for inevitable weather events, unexpected outages or supply chain challenges. Over the past year, we’ve recovered from events and incidents more quickly, getting service back on track and keeping the railroad fluid. Cars are moving 6% faster, train speed is up 9% and car dwell is down 4%. Our strong Union Pacific team is at the heart of all of these results. Because of our people, locomotive productivity is up 9% and train size grew nearly 2%. You continue to stretch and prove what is possible.
I’ve met with hundreds of stakeholders since my return to Union Pacific, including elected officials, regulators, shareholders and employees. Our people and our culture are very important. I’ve enjoyed some of our proudest moments in rail yards, offices and on the road, from touring the Big Boy, to celebrating the launch of NetControl, to testing our first-of-its-kind hybrid battery-electric locomotive. I’ve met you working in tough conditions, in temperatures below freezing and over 100 degrees. I know from experience how hard your jobs are, and I appreciate your sacrifices and tremendous efforts.
As I look at the next year ahead, I am listening to your feedback about what we need to do to keep getting better. I said from day one I would ask a lot of you, and demand even more from myself. The year has truly flown by, and I am honored to have the responsibility of leading this great team and this historic railroad. You continue to prove what we can accomplish when we work together – and to show the world what is possible for Union Pacific. I look forward to what we will accomplish next.
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