I am happy about what we have accomplished and where we are headed – our progress proves our Safety, Service and Operational Excellence strategy is working. Recent results show our resilience as a railroad and demonstrate the strength of what is possible when our Union Pacific team works together, focused on a united strategy.
Note: In this letter to employees, Jim recaps Union Pacific's third quarter results.
When presented with factors not of our own making, we responded with strength. As the Canadian rail system and East and Gulf Coast ports grappled with workforce outages, our buffer kicked in. We deployed our resources, leaning into the strength of our operation and team to handle supply chain pressures and take on a 33% increase in international intermodal volume. Addressing these unanticipated challenges wasn’t easy, and it came at a price. The entire supply chain dealt with pressure points at inland and port terminals. For Union Pacific, this meant the cost of overtime and additional equipment, and an imbalance in our operations to handle the influx – but we did it. I think it is fair to say everyone did their part to handle an increase not forecasted by anyone. That is what it means to deliver what is possible. I am very proud of the team and everything we were able to do. Thank you.
Railroading means expecting and handling the unexpected while balancing the many moving parts of our strategy. Our first strategic priority is always Safety. While railroads are the safest and most sustainable way to move goods on land, we must never stop finding ways to be safer. We continue making critical progress – our year-to-date derailment and personal injury rates improved 14% and 21%, respectively, compared to this same time last year. However, these numbers fall short when we remember the team members we lost this year. We must remain vigilant, ensuring everyone returns home to their families and the people counting on them.
Our Service continues to grow stronger, with our Operational Excellence as its foundation. Several operational vectors – including productivity in yards, reducing touch points when handling cars, shop turn arounds and more – demonstrate our ability to make substantial productivity strides. This great work on the fundamentals is at the heart of what will differentiate Union Pacific from the marketplace and fuel Growth.
While our business is measured by quarters and years, I look at where we need to be for long-term success. We have a clear plan, and as we continue to execute it together, we will continue to grow the company over the long term.
As we say goodbye to summer and the cold takes hold, the historic Big Boy tour just ended. We drew crowds as large as 64,000, with dozens of communities excited to see the beauty of history in motion as they followed the steam engine across our system. We used it as a storytelling and goodwill machine to connect with many stakeholders, including local governments, community officials, investors, customers and media – but most importantly, you. I wanted to personally ensure employees and their families were able to experience this piece of living history. I am so excited that thousands of you took the opportunity to show off the Big Boy to your families, and I thank you for your continued work to keep us moving forward.
Thank you all.
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