Short Lines Have Mixed Feelings About PSR Moves

Short line railroads are having mixed feelings about the general move of Class 1 railroads toward adopting the precision scheduled railroading operating model.

During his company’s third quarter conference call, Genesee & Wyoming CEO John C. Hellmann said he sees short-term pain, but long-term gain for short lines.

Hellman  said there will be some operating uncertainty as the Class 1 railroads with whom G&W railroads interchange traffic .

“While there may be a long-term benefit to the fluidity of the Class I network, there is the risk of interchange disruptions for our short lines,” Hellmann said.
G&W’s president of North American operations, Michael Miller, said some G&W railroads experienced disruptions during a Class 1 operations changes.

Miller cited the problems that CSX had in implementing PSR in 2017. G&W interchanges more traffic with CSX than any other Class I railroad.

However, Miller said operating conditions with CSX have since become much better.

G&W expects to see an initial period of disruption followed by improved service as Union Pacific and Norfolk Southern transition to their own forms of PSR.

Both Class 1s have said they plan to implement changes to their operating procedures slowly.

Miller expects that G&W’s cost will rise as it has to adopt to the PSR models of its Class I interchange partners. This could occur because G&W railroads might have to do more switching and pre-blocking of cars for UP and NS.

“But long term, it’s going to be more volume, more predictability, more reliability, which means we can price higher for the service,” Miller said. “And I think long term, it’s a great thing.”

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One Response to “Short Lines Have Mixed Feelings About PSR Moves”

  1. Jonathan Caswell Says:

    Reblogged this on By the Mighty Mumford and commented:
    GOOD TO KNOW!

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