(The following story by Max Jarman appeared on The Arizona Republic website on February 10.)
PHOENIX, Ariz. — Union Pacific Corp. is raising rates as much as 100 percent for certain goods being shipped in and out of Arizona in a bid to relieve congestion and shipping delays.
The move could result in higher prices for industrial goods and construction materials.
Particularly hard hit are shippers of goods into Phoenix, which has one of the railroad’s most congested freight yards.
“The Phoenix yard is just jammed with traffic, and we have to get our arms around the problem,” Union Pacific spokesman John Bromley said.
He attributed the congestion to a large increase in traffic from growing foreign trade and the improving U.S. economy.
Bromley said the railroad is trying to encourage shippers of certain goods to look at other transportation methods and to consider unloading goods at freight yards outside the Phoenix area. The goods would then be brought into Phoenix by truck.
Effective March 1, the cost of shipping steel, construction products, aluminum, machinery, paper, salt and other products into Phoenix will increase from 8 to 100 percent.
“It’s just another price increase the industry will have to absorb,” said Jason Franz, a spokesman for the Home Builders Association of Central Arizona.
The cost of shipping copper from Arizona mines also is going up.
Copper producer Asarco Inc. said it had been notified of a 50 percent increase and was evaluating its options. Phelps Dodge Corp., the world’s second-largest copper producer, isn’t affected.
The railroad also is working to get freight cars unloaded more quickly in Phoenix.
Union Pacific has been struggling for a year to solve congestion problems on its network that have resulted in shipping delays of 10 days or more.