Re: 4Q letter from UP Chairman to employees
Author: Jim West
Date: 01-24-2011 - 15:27
My company just got a contract to cut up SD-40-2's because they don't because traffic is dropping off and they don't want to pay for storage anymore expecting that economy will remain slow and with the EPA pledging to go after coal fired power plants and transportation emissions they think that, 1) traffic is going to continue to decline--long term, and 2) government regulations will soon make it impossible to maintain and operate older locomotives. According to several transportation consultants we talked to, (before our company decided to cut up rather than hold units sold for scrap)no one in government, Republican or Democrat, expects to be able to put the brakes on the EPA mandates under development and already in place as the EPA is a "non-accountable" agency by design and it doesn't matter who is elected, the EPA really can't be touched as it is said to be operating for the health and safety of the enviroment and it's people. So, railroads are going to have to cut costs long term to be able to go after what is expected to be an ever shrinking piece of the pie. Raises long term, many railroaders and truckers are going to be lucky to have jobs in another 10 years.