Union Pacific 2002 Annual Report Download - page 10

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8
BUILDING VALUE
part of the yield strategy is
improving locomotive and car
utilization.
Outdated, inefficient locomotives
have been retired and replaced by
new, more reliable models, helping
to reduce maintenance costs.
UP is developing a long-range
“Freight Car of the Future” strategy
that would standardize freight car
types and increase carrying
capacity, resulting in more reload
opportunities, lower inventory
requirements and reduced costs.
In addition, UP has reduced
installation costs for rail and ties
by using quality processes and
technology for planning, schedul-
ing and installation. More than
offsetting inflationary increases,
unit costs for rail have declined 6
percent since 1999, with concrete
and wood tie costs down 12 percent
and 13 percent, respectively.
Efficiency is another yield strategy
driver, made possible through
evolving technology.
In 2002, Union Pacific began
using remote-control locomotive
technology in rail yard switching
operations. Employees on the
ground use radio signals to direct
onboard computers that control
locomotive movements. This
proven technology increases safety
and productivity.
Web-based technology is
enabling UP customers to perform
all business transactions and ship-
ment inquiries in a secure, online
environment.
UP Customer Service
Representatives remain available
to assist with routine transactions,
but Web-site applications offer
customers more flexibility.
Customers performed nearly 6
million secured Web transactions
in 2002, more than doubling year
2000 levels. Customer phone calls
to the National Customer Service
Center have declined by 40 percent
during the same time frame, giv-
ing its representatives more time
to personalize customer service
for those who need it.
Improvements made in 2002 to
“MyUPRR.com,” a customized
business applications portal,
include: expanded price inquiries,
bill of lading correction capabili-
ties, rail car switching schedules,
and voice recognition for ordering
or releasing rail cars.
n
Secured Web Transactions
Union Pacific Railroad
1,626,911
00 01
3,178,748
02
5,756,572
Intermodal’s
container business is a growth opportunity, aimed at tapping into the truck
transportation market.
UP has reduced
installation
costs for rail
and ties by using
quality processes
and technology
for planning,
scheduling and
installation.
Working with alliance partners, Union Pacific introduced
new intermodal train service to Mexico for shippers in the eastern
United States that trims up to three days from previous
rail transit times.