Posts Tagged ‘UPS’

UPS Endorses Chicago Bypass Proposal

May 31, 2017

The proposal to build a freight-only bypass rail route around Chicago has picked up a big endorsement from UPS.

The package delivery and logistics company supports the proposed 261-mile line that would begin in northwest Indiana and end in southern Wisconsin.

Comments filed with the U.S. Surface Transportation Board show that many shippers favor the bypass while some railroads, notably Norfolk Southern and Union Pacific, have gone on record opposing it.

NS and UP said in comments submitted to the board that they would not use the route, preferring instead to use their existing tracks.

Comments are being taken through June on the plan by Great Lakes Basin Transportation to build the bypass, which also has aroused some NIMBY opposition along its proposed path.

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One UPS Conveyance Approaches Another

December 20, 2016

ups-truck-and-ns-tracks-x

UPS is one of America’s foremost shippers by rail. How formidable?

Consider that every day UPS ships more than 1 million containers and trailers by rail at a cost of $1 billion a year. That translates to 6 percent of U.S. gross domestic product.

Those trailers and containers hold packages, which is the backbone of the UPS business. In 2015, it delivered 4.7 billion packages and documents.

Some of those items moved by rail and many, if not most, reached their destination aboard a package car, such as the one show here near Oak Harbor.

The vehicle is about to cross the Chicago Line of Norfolk Southern, which is critical artery used by UPS in shipping containers and trailers by rail.

Could some of the packages and documents aboard this package car have traveled the rails that they are about to cross?

Article and Photograph by Craig Sanders

New CP Website Touts Benefits of Merging With NS; UPS Comes Out Against it in Letter to STB

February 12, 2016

Now there’s a website designed to drum up support for the proposed consolidation of Canadian Pacific and Norfolk Southern.

CP on Thursday launched the site CPconsolidation.com to lay out the benefits of the merger, which NS has fiercely resisted.

Canadian PacificIt is the latest CP ploy to try to get the attention of NS stockholders, shippers and others. Earlier this week CP CEO E. Hunter Harrison and CP director Bill Ackman talked about offering a resolution at the annual meeting of NS shareholders that would direct the NS board of directors to talk with CP about a merger.

CP said its new website “highlights the benefits of its pro-customer, end-to-end, competition-enhancing business combination proposal with NS.”

The site also strikes a more conciliatory tone while downplaying the fact that CP has proposed a hostile takeover of NS.

“Together, CP and Norfolk Southern would make a transcontinental railroad with the scale and reach to deliver unsurpassed value to shareholders,” says the site’s introduction. “We invite NS leadership to sit down with CP to discuss the offer, and consider the full range of options — together.”

In the meantime, UPS has come out against CP taking over NS.

One of the continent’s largest intermodal shippers, UPS wrote to the U.S. Surface Transportation Board in opposition to the merger, which has yet to be formally proposed to regulators.

“UPS is concerned that this combination would lead to diminished rail intermodal service levels and increased costs for all segments of rail customers,” UPS said. “In addition, UPS is concerned about potential industry consolidation as a reaction to a NS-CP merger, which would only further negatively impact freight rail shippers.”

UPS noted in its letter, dated, Feb. 9, that it ships 3,000 trailers and containers by rail each business day.