Tuesday, October 27, 2009

UP, CSXT launch RailChem Connect between Texas and Southeast

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Union Pacific and CSX Transportation launched RailChem Connect, a coordinated rail service for expedited transport of chemicals between the Texas Gulf Coast region and the Southeast. The new RailChem Connect service is the result of increased coordination and re-designed interline service by the two railroads for their chemicals market customers. The service allows shipments to bypass smaller rail yards for expedited transit between major hubs. These changes, along with increased operations coordination between the railroads, increase reliability of east- and west-bound service between Union Pacific-served chemical markets such as Houston, southern Texas and Louisiana, and CSXT-served consumption markets in the southeastern states. RailChem Connect offers more consistent transit times, faster equipment turns and a shorter route than previously available for chemical shipments in this corridor.

"Our teams are coordinating efforts to focus on an improved service product for chemicals customers by reducing transit times and tightening the variability in our delivery, significantly improving reliability for customers," said Diane Duren, vice president and general manager of Chemicals for Union Pacific.

The two railroads have reduced the transit time between major markets by 25 percent in the last three years while improving consistency by 23 percent. The improvements provide more reliable service, enabling chemicals customers to optimize their fleets of privately owned rail cars.

Over the same three-year period, the railroads have made a significant combined investment in RailChem Connect lanes for new capacity and upgrading tracks and facilities.

"In addition to the inherent safety and environmental advantages that rail offers shippers, RailChem Connect creates advantages for UP and CSXT customers that allow them to derive even more value from rail," said Dean Piacente, CSXT vice president-chemicals & fertilizer. "The increased coordination between our railroads results in improved transit and consistency, which translates into enhanced supply chain efficiency, a more balanced cycle for private rail equipment and bottom-line cost savings for our customers."

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