Service Update from Kenny Rocker, EVP, Marketing & Sales
Announcement Number: CN2018-40
Categories: General Announcements
Posted Date: October 25, 2018
To Our Customers,
It has been about a month since we announced our new operating plan, Unified Plan 2020, and I want to make sure we keep you apprised of our progress. I also want to share with you our future commercial plans and how they are impacting our network overall.
Implementation of Unified Plan 2020
The first phase of implementation for our new operating strategy, Unified Plan 2020, began October 1 in our Mid-America corridor to create more streamlined operations across the eastern third of our network. As we shift our focus from moving trains to moving cars, we have been proactively engaged with our customers, short lines and ports to ensure open communication and a smooth transition. Our bulk network shifted to the new operating plan last week, and we worked closely with impacted customers as changes were made. This week, implementation of the new plan has begun across our intermodal network, and we continue to communicate with affected customers as the rollout process progresses.
Upcoming Accessorial Changes
In the spirit of Unified Plan 2020, Union Pacific is evaluating all aspects of our business, including changes to our accessorial tariffs. In early November, you will receive details regarding modifications to several items in UP 6004 in the near term. Specifically, the intent of these changes is consistent with our Unified Plan 2020 methodology focusing on reliability and efficiency -- for both Union Pacific and our customers. Union Pacific will create universal, simplified tariff language for unit train customers that focuses on forecasting, asset utilization and improved reliability. We will also make changes to our current demurrage program. As these changes go into effect, you can expect to see improved utilization of your rail car assets driven by increased efficiency in your supply chain.
Crew Supply and Inventory
With the fall season in full swing, we are aligning our resources to best support our operating plan and to handle customer and network demands. We are focused on minimizing car dwell and reducing operating car inventory. To accelerate car velocity toward operating a safe, reliable and efficient railroad, Union Pacific will begin storing excess UP-owned rail cars immediately. All excess UP-owned rail cars will be placed in storage by this Thanksgiving and will remain in storage until further notice. We request customers evaluate private equipment fleets in a similar fashion. Our sales team will be engaging customers in a mutual effort to “right size” car inventory needs to match demand and cycle times. We expect customers will see more consistent and reliable service as car utilization improves and velocity increases.
We also have approximately 400 locomotives ready for surge capacity in the event we need to ramp up service quickly across our network. Thanks to our recruiting and hiring initiatives over the past several months, our crew supply has stabilized and we are now able to accommodate fluctuating demand.
Our Future Is Bright
As we continue to roll out Unified Plan 2020 and other important initiatives to improve service, I am confident we are on the right path to providing you more reliable transportation solutions and an excellent customer experience.
Thank you for your business, and I look forward to sharing our progress with you!!
Sincerely,
Kenny Rocker
Executive Vice President, Marketing & Sales