Service delays sour the sweeteners
The Sweeteners Users Association (SUA), a trade group representing companies that purchase sugar for use in foods and beverages, is the latest group asking the Surface Transportation Board to address rail service issues.
SUA’s letter comes as a number of stakeholders, such as the National Feed and Grain Association, have pressed STB to act on recent service delays and other disruptions. The board will hold a hearing on April 26 and 27 to ask the U.S.-based Class I railroads to respond to those service concerns.
In a Wednesday letter to the board, SUA said it is concerned about slow and consistent train movement for members’ bulk shipments of sugar. It can sometimes take twice as long to get bulk rail cars because of intermittent switches at manufacturing plants, or the switching might be inconsistent at the plants, the letter said, adding that sometimes the issues are due to a lack of labor.
Members can use bulk trucks instead of rail, but the trucks aren’t always available and it’s a costly option, according to SUA President Richard Pasco. Furthermore, it can be challenging for some companies to schedule the production of certain products because of uncertainties over when they might receive sugar supplies.
“Issues with switching have forced companies to reduce production in key product lines and shut down manufacturing facilities,” Pasco said. “To compensate, companies have tried to supplement transportation logistics with trucks where possible, adding additional costs and strain on a fractured truck market. [But] where trucking is not an option, companies have added more cars to account for the slower turn times. This has created bunching of cars, increased dwell times and demurrage at destinations.”
SUA blamed precision scheduled railroading, an approach adopted by the Class I railroads that seeks to streamline operations, as causing “total communication breakdowns.” For instance, facilities aren’t told when the daily switch will not happen as planned until customers call to report that a car did not arrive, Pasco said.
Pasco advocated for STB to take “more urgent action” as a result of these service disruptions, such as requiring the railroads to submit service improvement plans and weekly updates on how service is improving. He also asked the board to consider ways to increase competition.
“We stress that the need for solutions to the ongoing rail logistic issues is urgent. The legitimate needs of companies that produce America’s food supply should be a priority that is brought to the immediate attention of railroad firms,” Pasco said.
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Union Pacific broadens approach to ESG strategy to include focus on health, safety and well-being
Union Pacific’s latest Building America report, which is published annually and details how the company is rolling out its social, environmental and governance strategy, now includes an additional focus, or “pillar,” on promoting health, safety and well-being within the company.
This focus, which UP (NYSE: UNP) is naming Building Responsible Foundations, is the fifth pillar of UP’s Building a Sustainable Future 2030 strategy. The four other pillars are investing in UP’s workforce; driving sustainable solutions; championing environmental stewardship; and strengthening UP’s communities.
The creation of this fifth pillar resulted from a second materiality statement, in which internal and external stakeholders were surveyed to gauge what specific ESG topics were of utmost importance. Health, safety and well-being were determined to be the most important issues, UP said.
This fifth pillar will also include business ethics and conduct, cybersecurity and risk management.
“Building Responsible Foundations lays the blueprint for continued progress toward our ESG goals,” said Beth Whited, UP executive vice president of sustainability and strategy, in a Wednesday release. “The broader strategy underscores our commitment to important human capital and environmental considerations, and we look forward to working together with our stakeholders to continue our mission.”
In its report, UP describes this fifth pillar as the following: “The health and safety of employees is at the foundation of everything we do. We are committed to engaging with employees to discuss and understand the risks they may encounter in their daily work so that we can address them. We continuously monitor our dynamic risk management process to identify and address potential concerns, including those arising in the ever-changing economic, political, legal and technological environments in which Union Pacific operates.”
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Norfolk Southern seeks to entice aspiring conductors with bonuses
Norfolk Southern is offering conductors a starting bonus of $5,000 at priority locations.
Priority locations expanded to Bellevue, Ohio, and Elkhart and Fort Wayne, Indiana. Other locations that are a priority for NS (NYSE: NSC) are Birmingham and Sheffield, Alabama; Louisville, Kentucky; Binghamton and Buffalo, New York; Cincinnati; Linwood, North Carolina; Conway and Harrisburg, Pennsylvania; Chattanooga, Tennessee; and Manassas and Roanoke, Virginia.
NS is offering a starting bonus of $2,500 at other locations.
NS and other Class I railroads have been seeking to increase their ranks of train conductors and engineers so that they have enough crews available to meet demand and ensure adequate network capacity.
“Our conductors move the goods that power our nation’s economy,” said Brad Dodd, NS director of talent acquisition. “Norfolk Southern is a great fit for those who want responsibility, autonomy and pride in the work they do. We offer competitive compensation, best-in-class health care benefits, technical training and professional growth opportunities.”
NS says that careers in railroading offer a minimum of $52,000 in annual pay, health care benefits, participation in a federal retirement program and opportunities for advancement.
More information is available here.
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Commtrex completes acquisition of Precision Rail Management Group
Commtrex, a freight rail logistics platform provider, has completed the acquisition of Precision Rail Management Group (PRMG), which provides managed rail logistics services for shippers, short line railroads, transloaders and trading firms.
Commtrex says the acquisition will enable the company to provide a new service offering for shippers that are seeking to make their supply chain program more flexible. Other services will include managed rail shipping solutions, short line railroad and transload support, and customized reports and dashboards, Commtrex said.
“Shippers today are facing increasingly complex and volatile supply chains, capacity constraints and rising transportation costs,” said Commtrex CEO Martin Lew. “As organizations look to integrate rail within their multimodal logistics strategy, many don’t have the logistics teams or technology to support these efforts. The acquisition of PRMG immediately allows Commtrex to offer comprehensive managed services to rail shippers. Commtrex serves as an extension of their team and allows them to focus on their core business.”
Said PRMG CEO Peter Sheldon: “Commtrex adds another dimension of resources, partnerships and technology that we are confident will be valuable for our customers. I believe that our combined capabilities will further strengthen Commtrex’s ability to provide self-serve and now full-service solutions that simplify shipping by rail for customers within North America.”
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