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Author Topic:   UP cuts intermodal traffic
Mr. Toy
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Posts: 1344
Registered: Dec 2000

posted 07-15-2004 09:08 PM     Click Here to See the Profile for Mr. Toy     Edit/Delete Message   Reply w/Quote
I saw a reference to this UP bulletin on another board. http://dx01.my.uprr.com/pubdir/inetbull.nsf/bdaf570788c7121d06256450007c2df0/9138ed5e418a5cc486256ed00073a496

If I read this correctly UP is eliminating intermodal freight on the I-5 corridor. What does this mean for UP's stockholders, customers, and Amtrak? What does it say about UP's business operations?

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MPALMER
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Posts: 809
Registered: Aug 2000

posted 07-16-2004 12:03 PM     Click Here to See the Profile for MPALMER     Edit/Delete Message   Reply w/Quote
I read somewhere that these "hot" intermodal trains were too disruptive to the schedules of all the other trains along the route.

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George Harris
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Posts: 216
Registered: Nov 2002

posted 07-25-2004 06:18 PM     Click Here to See the Profile for George Harris     Edit/Delete Message   Reply w/Quote
It is basically saying that as a business they consider the cost of keeping the business higher than the return they would get from it. That is the polite version.

More accurately, it is showing that many years of short term thinking is killing the company's long term survival prospects. It is really showing that many years of underinvestment in the facilities needed to move traffic results in traffic increases strangling the system. Somehow, someone must find the courage to tell the stockholders that dividends and unnecessary expenses must be cut so the money can be plowed back into the system for the purpose of prosperity in the long term, not just manipulated to produce a nice showing in the short term by financial ledgermain.

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