Status of the Railroad - A Message from Kenny Rocker, EVP, Marketing & Sales
Announcement Number: CN2021-35
Categories: General Announcements
Posted Date: May 27, 2021
To Our Customers,
Earlier this month at Investor Day, we laid out our corporate strategy: Serve, Grow, and Win Together. For the commercial team, it’s all about growing with you, our customers. I’m optimistic that as demand continues to increase across several markets, we will achieve this growth together.
We continue to make progress on the service product we deliver to you. Our key operating metrics for April have improved sequentially from the prior month:
- Freight Car Velocity (daily miles per car) – Car velocity was at 217, up 2% from March.
- Freight Car Terminal Dwell (the amount of time a rail car spends in a Union Pacific rail terminal/yard) – Average dwell time was 22.5 hours, improving 3% compared to March.
- Car Trip Plan Compliance (on-time shipment delivery) – Manifest/auto trip plan compliance improved by one percentage point to 69% compared to March. Intermodal trip plan compliance held flat at 72% compared to the prior month. For May month to date, we are seeing improvements in our intermodal service product as our trip plan compliance has moved up to mid-70%.
Expanding Our Network Reach
Since adding the Twin Cities Intermodal Terminal (TCIT) to our network in January, we continue to give regional shippers and receivers in Minneapolis - St. Paul additional options. We added service between Northern California (Lathrop) and Twin Cities, seven days per week in both directions, giving customers comprehensive coverage between these markets. Additionally, we expanded gate hours last month in response to customer requests and increased volume. We look forward to increasing the capabilities at this terminal to facilitate further optionality for our customers into the Twin Cities area.
And speaking of expanding our network reach, we continue to add Focus Sites throughout our rail franchise as well. The new RCR Hempstead Logistics Park near Houston makes it the sixth site in Texas for developing a location for a rail served business. Focus Sites are shovel-ready locations available for businesses looking to build a new factory or warehouse – with direct access to rail and located in proximity to major interstates. Our sites make it simpler for businesses to connect to rail and increase speed to market. Our commercial team is ready to help you get started.
Thank You
We truly appreciate your business. We will continue to work together with you and other supply chain partners to provide you with a service product that you can depend on.
I hope you and your families have a safe and enjoyable holiday weekend.
Sincerely,
Kenny Rocker
Executive Vice President, Marketing & Sales