April 24, 2023 - TRA Newswire -
A second cross-border rail alliance is born this month
Hot on the heels of the recent merger of Canadian Pacific and Kansas City Southern, now called CPKC, which created a North America funnel for freight rail traffic, Union Pacific, Canadian National and Grupo Mexico Transportes (GMXT) have formed an alliance to compete for cross-border rail traffic.
The creation of Falcon Premium intermodal service, announced today, will offer a Mexico-US-Canada seamless rail connection in Chicago, Illinois. It will directly connect all CN origin points within Canada and Detroit, Michigan to GMXT terminals in Mexico: Monterrey, Nuevo Leon, and Silao, Guanajuato funneled through Union Pacific routes in Texas. This service can benefit intermodal customers shipping automotive parts, food, FAK (freight all kinds), home appliances, and temperature-controlled products.
Bad weather and inflation contributed to an off first-quarter
This week Union Pacific Corporation reported 2023 first quarter results with business volume, measured in revenue carloads, down 1% over the same period last year.
“We delivered greater network fluidity and resiliency in the first quarter even as we faced a series of significant weather events,” said Lance Fritz, Union Pacific chairman, president, and chief executive officer. “In addition to the impact of weather on carload volumes and costs, higher inflation also reduced our operating income and more than offset our record first quarter operating revenue. Despite a continued challenging environment, our strengthening service product, bolstered by a strong pipeline of new employees, gives us confidence we can capture available demand and improve efficiency the remainder of the year.”
Operating revenue of $6.1 billion was up 3% driven by higher fuel surcharge revenue and core pricing gains, partially offset by a negative business mix and volume declines. Operating income of $2.3 billion declined 3%. The company repurchased 2.9 million shares in first quarter 2023 at an aggregate cost of $0.6 billion. Quarterly freight car velocity was 196 daily miles per car, a 1% decline. Quarterly locomotive productivity was 123 gross ton-miles (GTMs) per horsepower day, a 5% decline. Average maximum train length of 9,159 feet was flat. Quarterly workforce productivity decreased 6% to 991 car miles per employee.