This should be tempered with the fact that business is in the tank and that if your performance hasn't improved, there is something horribly wrong.

Less trains make a more fluid network, a more fluid network improves train speed.

Other issue on competition is that Young is much more geared towards customer service than Davidson was.

Of course when you lower your rates your going to get new business too.

Didn't see the rate chop mentioned above.  Everyone's trying to save $.

Will be interesting to see if/when the volume comes back that all the r.r.'s are running so fast with such great OTP.  

BacktotheFuture makes some interesting points, not all of which I believe are correct.

"This should be tempered with the fact that business is in the tank and that if your performance hasn't improved, there is something horribly wrong."  He's, of course, correct here, and a look at weekly AAR service performance data makes it clear that this is so for all the Class 1s.

"Less trains make a more fluid network, a more fluid network improves train speed."  Yep, and nothing more needed from me on that.

"Other issue on competition is that Young is much more geared towards customer service than Davidson was."  And, about time, too.

"Of course when you lower your rates your going to get new business too."  This is one statement I question.  If no one is moving much of anything, it's going to be very difficult to get new business unless it is taken from competitors.  And, if competitors also are providing better service and competitive rates, where would the business come from in the midst of a dismal recession?

"Didn't see the rate chop mentioned above.  Everyone's trying to save $."  Actually, the Class 1s have demonstrated tremendous pricing discipline.  About the only place where they have been willing to shave rates is in certain intermodal lanes where trucks have slashed rates to below sustainable levels in their desperate attempts to stay in business.

"Will be interesting to see if/when the volume comes back that all the r.r.'s are running so fast with such great OTP."  Me too, but I also recall (for those who may not be able to remember back before the start of the recession) that OTP was pretty good before, too.  

Nice write up and responce to BTF and LK, but your right what's gonna' happen when/if we return to normal. Without any new capacity where are they gonna' run. On the UP it'll be like MP75.6 near Global 3 trains stacked both ways delayed for 4-5 hours that's why Global3 is affectionately known as the( money pit,clusterf__k,or maximus Globus).

It was a guaranteed 12 and tow. And if it should return to anywhere near normal status then the whole system will be like Maximus Globus for all T&E employees. Cha Chingggg!

On pricing if one r.r. sticks to the past few years of raising rates (now in hold rate mode), and one will flex, the one that flexes downward with rates can pick up business.  I think the UP has done this and think Young is the reason.   He sees the opportunity in front of him.  I'm sure trucking has cut rates too, it's just from r.r. perspective that the business they pick up for rail was likely a rail opportunity all along.  I think this falls in line with LK point about intermodal lanes shaving rates.  Most interesting is if UP shaved too low and volume picks back up and they get hammered are we going to see 1998 all over again or the last melt down after the RRB changes.

LK I absolutely agree OTP was pretty solid before the depression.    

In regards to James - I don't think continued capital expansion was necessarily needed during a recession/depression.  The rails were fairly fluid during the past few years and with the business disappearing things should, and are, running better.  Once the volumes return to where they were then we'll still be in good shape.  I for one do not think we will return to the past 15 years of insane growth.  Everyone using their house as an ATM to buy more and more toys and stuff.  Banks won't allow.  So if that portion of consumer spending is cut off and unemployment is where it is/was...how can we possibly get back to that.  I don't think we can, not for a long time and then history will repeat itself - and likely we'll all be dead.

In regards to specific terminals, I think all the railroads have at least one or more that get backed up.  When the UP was in the crisis in '98 and lost numerous short term coal business, BNSF was hammered on their coal route.  They handled it alright, but I'm sure the revenue outpaced the DOL's.

With the new business Global I in Chicago is "at capacity." Global II has always been a soup sandwich. Global III was really a non-starter from the beginning.

Global IV should help free up some capacity in Chicago, but it isn't on the E/W main.

I have seen the UP pour millions into mainline capacity with nary a dime for terminal upgrades, at least in Chicago.

The mechanical department infrastructure is really hurting. Using shops designed and built for SD40 sized locomotives isn't working so well with the SD90/ AC44CTE sized fleet.

The five pound bag is now holding about 7 pounds, it's going to be interesting when it breaks.

Culturally, UP always has viewed itself a bunch of big hairy guys running big heavy trains.  Historically, it received blocks at Council Bluffs and had sufficient density that very little work had to be done between the east end of the road and the west end at California, Oregon and Washington.  That led to an attitude that terminal work is for sissies.  As those big hairy guys retire, the next generation hopefully will understand what is needed for the proper running of an otherwise fine rail franchise.

Well with that said and all very interesting and accountable information here at My favorite blog site, I bid you farewell, no more vicious attacks or ludicous rantings from this ex-UPer.

For your information, and I think I owe you guys some explanation, because even though we all don't agree all the time, we discuss enthusiastically railroading.

I need to get a lock on what is going on out there, and perhaps find gainful employment (hopefully railroading). After being fired from the UPRR in Jan 2005 for a rule "G" violation,( if you must know .06 BAC) enough to get fired. And being over the age of 50 seems to have have me hog tied into becoming a ward of the state or a welfare recipient (if only I could be so lucky). Being male,white,childless,spouseless,and over 50 and unemployed, I thought perhaps its time to take a page from history and (especially after losing my house, and my van crapped out and the savings are all gone) set out on a cross country sojourn, and what a better way than trekking along the right of way of my beloved railroad.

Hopefully, with the help of some dear old friends, I'll be able to document with photos and script just what is actually out there. I plan to talk to as many people as I can both along the rail route and rails I hope to encounter. Maybe if for my own needs and maybe for some future fodor for this site.

So, my sojourn begins July 22, after a breif visit at my dad's gravesite past away july 21 18 years ago. And then onward like a wandering hobo of yesteryear (where's Railwayist when ya need him) living from day to day with what ever comes along. Consider it a vision quest of sorts, I can't stay here much longer the county ranger won't let me poach the woods anymore. So remember this day, because I know I won't forget any of you ever.  Peace and may you find Your Peace in God, too.

James A. "UPShrek" Swidergal