Western Railroad Discussion > UP consolidates Pacific Northwest management

Union Pacific today announced it is consolidating five management positions in its Pocatello Service Unit with the Utah and Portland service units.  No other details were released.

 

More centralized management, I'm sure that will help?!?! (Sarcasm)

Eliminates 1 Service Unit.

Expect to see one each eliminated from the other 2 regions.
That's how it usually goes.

BNSF just did the same.

More "streamlining."  Ok.

Streamlining management and operations was part of what EHH was hired to do on CSXT. Western roads my be trying to get ahead of the curve to prevent themselves from becoming the next target.

BNSF can't be a target, already privately owned.

      Still find it interesting that the railroads so calledd management know or think they know what need to be done but have to hire some clown to come into the company for millions of $$ to get it done. So, are they gutless or just stupid?

CP, CN, CSXT management did not invite EHH to come aboard to tell them what they were doing wrong. It was a small group of financial speculators who bought their way into the boards of directors to remove millions of dollars from improved stock value on their way out the door.

Indeed, Warren Buffett's large holdings of BNSF stock may protect that railroad from an unfriendly take over.

The BNSF is not a publicly traded company ... Buffet and Monger (aka Berkshire Hathaway} control all of the BNSF.  They acquired it because it is an unique business and could not be replaced essentially at any cost ... not to say that the existing BNSF management does not strive to modernize and proactively improve performance.  But any kind of "takeover" is sort of a pipe dream ...

Odyssey
Evergreen, CO

dcfbalcoS1 Wrote:
-------------------------------------------------------
>       Still find it interesting that the
> railroads so calledd management know or think they
> know what need to be done but have to hire some
> clown to come into the company for millions of $$
> to get it done. So, are they gutless or just
> stupid?

Most (with few exceptions) are just sheeps following orders from above, then use their position against the real workers for a power trip. When "the above" wants to eliminate the sheeps, they turn to "outside help" to deflect blame, to preserve loyalty. It's not just railroad management that's gutless and stupid, by the way.

fbe Wrote:
-------------------------------------------------------
> CP, CN, CSXT management did not invite EHH to come
> aboard to tell them what they were doing wrong. It
> was a small group of financial speculators who
> bought their way into the boards of directors to
> remove millions of dollars from improved stock
> value on their way out the door.
>
> Indeed, Warren Buffett's large holdings of BNSF
> stock may protect that railroad from an unfriendly
> take over.

And an organization doesn't need an outsider (or EHH) to reorganize or "downsize." Their own greed is enough motivation, for example, UP's insider trading patterns the past few years (reported and legal) that I've mentioned. In fact, I pointed out one such insider who ended up retiring after selling large blocks, even though the apologists claimed it was done simply to "diversify." (laugh)

It remains to be seen if UP is looking out for the long term on this one. Maybe their business in the PNW isn't doing so well.

At the end of the article there is this interesting (at least to me) information. . .

"=12pxThe Pocatello Service Unit's transportation, engineering, mechanical, maintenance and other operations necessary to continue running a safe and efficient railroad will remain in place. The realignment will result in an operating structure similar to pre-2005 in Idaho.The Pocatello Depot will remain an operational structure where UP crews will continue to go on and off duty while carrying out normal operations."

So the Pocatello Service Unit remains, it's just managed from afar? Even though I was in the Northwest in 2005, I don't remember exactly what changes were made.