Union Pacific Saves Fuel While Increasing Efficiency
April 28 2006 - 12:55PM
PR Newswire (US)
Fuel Reduction Initiatives Save Nearly $7 Million During First
Quarter OMAHA, Neb., April 28 /PRNewswire-FirstCall/ -- As fuel
prices continue to rise, the pain at the pump is leading consumers
to look for ways to improve fuel economy. The same is true for the
nation's largest railroad. Imagine the cost of fueling a 4,000
horsepower vehicle with a 4,900-gallon tank. Union Pacific fuels
nearly 8,000 of these vehicles every day. They are the diesel
locomotives that move the consumer goods, food, energy and
construction materials fueling the nation's economy. Even though
fuel prices are at record highs, and the railroad is hauling more
materials than ever before (four percent more than last year at
this time), Union Pacific was able to shave two percent off its
diesel fuel consumption during the first quarter of 2006 --
resulting in nearly $7 million in savings. The railroad was able to
achieve the savings through a number of energy conservation
initiatives, including: * Creation and deployment of the Fuel
Masters program to reward locomotive engineers for efficiently
operating trains * Acquisition of newer, more fuel-efficient
locomotives * Implementation of changes in traffic flow and
operations to move freight more efficiently. "We all have a role to
play in helping conserve fuel for our nation, and Union Pacific
employees are doing it every day," said Jim Young, president and
CEO, Union Pacific. "In a relatively short period of time, our
employees have made great strides in implementing and creating
world-class energy conservation techniques that are helping us to
move more freight while saving fuel. With their help we will
continue to improve our efficiency while delivering the goods
America needs." Last year, Union Pacific's Fuel Masters program
saved more than 16 million gallons of diesel fuel and $30 million
for the railroad. The program has the potential to more than double
the total amount of fuel savings as it is refined and expanded. On
average, service units using the Fuel Masters program experience a
five percent reduction in fuel consumption. Here's how it works:
The fuel consumption performance of participating locomotive
engineers is compared against fellow engineers operating in the
same territory. (A two-month snapshot of each engineer's fuel
consumption performance is used to calculate individual average
consumption rates.) Each month, engineers in the top 15 to 20
percent of each territory are awarded fuel cards to help them keep
up with the cost of filling up their own vehicle tanks. "This is a
truly great program for everyone," said Tim Brandt, a Union Pacific
locomotive engineer based in Marysville, Kan. "The fuel savings
make it an obvious winner for the company and it is nice the
company is willing to share some of those savings with us." The
creator of the Fuel Masters program was recently honored with the
2005 John H. Chafee Environmental Excellence Award. Wayne Kennedy,
Union Pacific's general director of fuel conservation, was
presented the honor for exhibiting outstanding stewardship of the
environment. The award is named for John H. Chafee, a four-term
U.S. Senator from Providence and a noted environmentalist. Railroad
versus Road In terms of fuel efficiency, railroads are three times
more fuel-efficient than trucks. If just 10 percent of the freight
moved by highway were diverted to rail, the nation could save as
much as 200 million gallons of fuel each year. And, railroad fuel
efficiency has increased by 72 percent since 1980. Prior to 1980, a
gallon of diesel fuel moved one ton of freight an average of 235
miles. In 2001, the same amount of fuel moved one ton of freight an
average of 406 miles. Overall, railroads and rail suppliers have
reduced the weight and increased the capacity of rail cars to
improve fuel efficiency and reduce emissions. Studies also indicate
the diversion of freight traffic from truck to rail can reduce
highway congestion. For example: * One intermodal train can take
280 trucks (equal to 1,100 cars) off our already congested highways
* Trains carrying other types of freight can take up to 500 trucks
off the highway. A study of 50 major U.S. metro areas by
transportation consultant Wendell Cox found that the diversion of
25 percent of truck freight to rail would lead, by 2025, to: * 2.8
billion fewer traveler-hours wasted in congested traffic * A
savings of 16 billion gallons of fuel * Nearly 800,000 fewer tons
of air pollution. "Union Pacific is committed to the development
and use of new technologies to preserve the environment for future
generations," said Young. "Environmental protection is a primary
management responsibility as well as the responsibility of every
Union Pacific employee." To access the "UP and the Environment"
white paper, go to http://www.up.com/ and click on Environmental
Management. Union Pacific Corporation owns one of America's leading
transportation companies. Its principal operating company, Union
Pacific Railroad, links 23 states in the western two-thirds of the
country and serves the fastest-growing U.S. population centers.
Union Pacific's diversified business mix includes Agricultural
Products, Automotive, Chemicals, Energy, Industrial Products and
Intermodal. The railroad offers competitive long-haul routes from
all major West Coast and Gulf Coast ports to eastern gateways.
Union Pacific connects with Canada's rail systems and is the only
railroad serving all six major gateways to Mexico, making it North
America's premier rail franchise. For further information, contact
James Barnes (402) 544-3560. DATASOURCE: Union Pacific Corporation
CONTACT: James Barnes of Union Pacific Corporation, +1-402-544-3560
Web site: http://www.up.com/ Company News On-Call:
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