This post got me thinking while reading through it. I agree that now is a great time to pick up more business. I don’t think that it will happen. Having boots on the ground, plus a lifetime in logistics, both in motor freight and rail, there are some observations which I’d like to share. First, the railroads have been cutting staff since PSR started. It has not just been by furlough. One tactic has been to discipline workers for petty and often arbitrary infractions. After a couple of these things get escalated, having had multiple “infractions “ in a row. Then they dismiss the worker, and after a month or two offer the job back. The terms are any additional infraction will result in dismal, but without the benefit of an investigation, nor grounds to appeal. This creates a de facto at will workforce. This is at such an extreme that many newly hired employees get a taste of the workplace toxicity, and seek employment elsewhere. There was a new hire class on a interchanging carrier where everyone quit. With the numerous employment opportunities available now, who in his right mind would stay?
A second detriment to increased business is that capacity has been eliminated. You can read on these forums how countless yards and lines have been closed. Where are these extra cars going to be handled? Many remaining facilities are now at capacity.
A third point is about the extreme train lengths. One poster above said that the solution is to simply add more power to each train. That’s fine. Why didn’t they think of that? The problem is that lines and yards weren’t designed for these monsters. On the main lines many of the sidings aren’t long enough. Sometimes a train has to hold at a meeting point for hours, just because the next 2-3 sidings cannot hood the length.
Yard capacity for long trains is another major drawback. Instead of digesting 2- normal sized trains, twice as many cars need switching at once. Sometimes there isn’t room to make the necessary classifications. If smaller, more frequent trains were run, then an inbound train could easily be classified, and the cars added to outbound trains, clearing up space for the next train. With less frequency, a missed connection means extended dwell time.
Right now is the end of the fiscal quarter. I’m seeing train frequency diminished, which reduces train crew and locomotive starts. In order to make the operating metrics look good, cars are held just before the yard’s AEI reader. This makes the dwell time in that particular yard not look so bad.
PSR is a smoke show to make the numbers look better to investors. I’ve heard that its purpose was partially due to the curtailed demand for some commodities, like coal. This was mentioned above. I know that railroad carriers are under pressure from investors, as well as to make the cost of capital. I’ve been saying for years that you don’t get a home run every time at bat. On the same token a large unit unit train doesn’t come about 100% of the time. The STB chairman has stated that a happy medium needs to be found. The operation needs to cater to investors, workers, and customers.
