(The following article by Stacie Hamel was posted on the Omaha World-Herald website on May 12.)
OMAHA, Neb. — For the first time since Union Pacific’s 1998 service crisis, the railroad’s chairman and chief executive will conduct a forum for rail customers on congestion and service delays.
The railroad – the largest in North America – has been dealing with train crew shortages and congestion amid burgeoning demand since last fall. Some of areas hardest hit have been California and the Southwest.
To cut congestion on its 23-state system, U.P. recently canceled a United Parcel Service contract for cross-country express trains twice a week.
U.P. Chief Executive Dick Davidson agreed to the forum, which was requested by a 600-company shippers association, the National Industrial Transportation League.
John Ficker, NITL president, said the group requested the forum after hearing from members about declining service. He said he hopes shippers will be told when service will be back on track.
“There are no magic bullets, but what can we expect for the next six months and when can we expect some improvement?” he asked. “The typical peak shipping season is end of summer and into fall.”
The forum is one more means of communication, a U.P. spokeswoman said.
“Obviously, we’re keeping in constant communication with our customers during this, whether it’s on a group or individual basis,” said Kathryn Blackwell.
U.P. President Jim Young “has been out meeting with customers constantly,” she said.
At the forum, rail shippers will be allowed to ask questions and express concerns. U.P. will describe the current service situation and what steps are being taken to improve.
Marty Durbin of the American Chemistry Council said he expects some members of that shippers group to attend the forum.
“We are hearing that, yes, there are slowdowns in the system,” he said.
Most of the council’s members are “captive customers,” meaning they are served by one railroad, with no competition.
“They’re already getting poor service because they’re captive,” he said.
Roger Nober, chairman of the Surface Transportation Board, will participate, along with Jack Koraleski, executive vice president of marketing and sales, and other senior managers.
About 10 companies had registered so far for the forum, to be held at the San Francisco Airport Marriott at 1 p.m. Monday. Blackwell said she expected more to register.
Ficker said he hoped for an “open and constructive dialogue.”
Davidson “is working hard to rectify this, he and the whole U.P. team, but sometimes you just need to get it all out in the open,” Ficker said.