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Author Topic: UP cancels UPS contract
RRCHINA
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Union Pacific announced cancellation of the "bullet train" contract which, with CSX,
was expedited service between Los Angeles and New York Citing lack of crews and congestion along the Sunset Route.

Perhaps this will help the Amtrak Sunset operation although it is probably unlikely.


Posts: 467 | From: Prescott, AZ USA | Registered: Mar 2002  |  IP: Logged | Report this post to a Moderator
CG96
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What would help Amtrak's Sunset Ltd along this route would be increased investment in the capacity of the physical plant, i.e., double-tracking considerable portions of the route. It would also help to install something like ATC for the traffic control. Both of these options cost money, and, In order to raise the required funds, Union Pacific must be able to sell bonds, shares, float loans, etc., in order to generate the cash that will pay for these route improvements. With the US RR's not being able to pay for their cost of capital, it looks as though UP will continue to be stretched for the cash to make large-scale improvements in their physical plants. They still have to upgrade the ex-CRIP Tucumcari line to be able to deal with the large amount of freight that they anticipate, so any sort of improvements along the Sunset Route will most likly be coming in bits & pieces, and not all at once. UPRR still has to hire employees to compensate for the rash of early retirem,ents they've had, and those folks won't be coming on-line for at least the next several months. All in all, it looks as though it will be another summer season meltdown for the UP in TX & NM. I'm tempted to tell folks not to take the Sunset untill the UP can make some of the improvements listed above.

One question, though: granted, the UPRR has been so congested that they put the UPS shipments in trucks between CHI & LA. If there is that much congestion along the ex-MoPac & the Sunset Route, why couldn't the UP route the trains across the Overland Route to the ex-LA & SL?

[This message has been edited by CG96 (edited 05-10-2004).]


Posts: 506 | From: Wisconsin | Registered: Mar 2002  |  IP: Logged | Report this post to a Moderator
RRCHINA
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Perhaps from CHG to OGD they could handle it but the LA & SL has track capacity constraints similar to the Sunset Route. If
not it seems certain they would have avoided the embarissment caused by advising one of their best customers that they made a mistake by outbidding BNSF for business BNSF was handleing very well.
BNSF has been investing all across their system to increase capacity, ie, Stampede Pass, double track in NM and CTC from Belen to LA and have been doing most of it from funds generated by revenues.

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CG96
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Actually, there are several other rumors floating around out in the Net ether that UP is now commencing upon the double tracking project for the Sunset Route. There have already been several segments of double track laid down in certain parts of AZ. The next area to be double tracked is west of El Paso, into NM. See link here.
Posts: 506 | From: Wisconsin | Registered: Mar 2002  |  IP: Logged | Report this post to a Moderator
   

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