Summary Of Union Pacific

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Union Pacific Corporation is the leading class 1 railroad network in the US is primarily engaged in freight transportation. It is the core subsidiary of UP serving most of the central and western United States, west of Chicago and New Orleans, covering nearly 23 states. The subsidiary is the largest contributor at the UP with 19%. Main issues: Environmental regulations, rising fuel cost, congestion and technical issues. Climate change is a growing concern. Union Pacific has taken very notable steps towards reducing their carbon emission. By 2013 Union pacific helped their customers to reduce their greenhouse gases by 33.7 million. Changing environment can affect the companies operation as well; natural disasters such as floods and polar …show more content…

Growing demand and traffic requires company’s operation to be more efficient and reliable than ever because it is very easy for customers to backward integrate or seek other modes of transportation. When Union Pacific entered into a merger with Southern Pacific in 1996, the company underestimated many technological requirements. Southern Pacific’s computer system was very different than what employees were used to at UP which resulted in glitches and ultimately lost cars and containers and unsatisfied customer and dropped accounts. This congestion resulted in 2 billions of damage to US economy, and brought upon many lawsuit on UP. UP managed to recover by integrating their computer system with Southern Pacific’s. But this scenario repeated in 2004 when UP’s system could not handle the pressure of growing demand and traffic. The congestion resulted in loss of profitability. Union pacific made a comeback from this too by improving their technology and hiring trained workforce and giving training to the existing one. There are many reasons for congestion such as technical or operational inefficiency, natural or human made disasters, accidents etc. the best way to address this issues and efficiently manage it is to keep track of all the activities at all time. The first step in this direction is to improve their technology to understand the causes and plan for actions. To have updated information about the track conditions UP experimented with accelerometers on trains that feel for bumps, it's also running cameras over tracks and using algorithms to analyze the captured images for cracks and other flaws in railroad ties. The image analysis is catching more than 90% of what human inspectors would, CIO Tennison says. UP is also testing video analysis at higher speeds, via cameras posted along tracks or in rail yards, whose

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