Union Pacific Reports Logjams Easing

Union Pacific Corp. said its rail-freight service “improved sharply” in the last two weeks as the company works to resolve a logjam that has plagued its 36,000-mile system for more than a year. The Dallas-based company, which runs the nation’s largest railroad, made the claim in its first report to federal regulators since it was freed from an emergency service order that let competitors use some of its tracks in the Gulf Coast region. Union Pacific Chairman Richard Davidson said the worst problems on the railroad remain in Southern California. The railroad is reducing its backlog at the Ports of Los Angeles and Long Beach, however, and the situation is much better than last summer, he said. Davidson said Union Pacific will reorganize into three regions with vice presidents running each almost like a separate railroad. Planning and oversight of the northern, southern and western sections will continue to take place in Omaha, but the regions will be given the resources and authority over how best to carry out overall goals, he said. Shares of Union Pacific rose 63 cents to close at $38.25 on the NYSE.