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NE Kansas | A lot of what UP is doing is because of their pressure to move to precision railroading. Norfolk Southern just announced they'd be moving in that direction as well. Investors are putting the pressure on to reduce operating ratio (the amount of cost relative to every dollar you earn, lower is better), which isn't always the best measure for how efficient a railroad is running. The process closes hump yards, sets train departure/arrival schedules, and promotes shorter hauls.
BNSF and KCS are now the only Class I's who are not using precision railroading methodology. The layoffs at UP aren't a product of the economy, they are a product of the precision railroading process. | |
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