UP Says Service Almost Back to Normal

Except for about 250 miles from Houston to New Orleans, service on Union Pacific’s 36,000 miles of track is almost back to normal, the chairman of the Dallas-based company said. At the height of the railroad’s congestion, westbound trains were lined up from Los Angeles to Phoenix waiting to get into Southern California. But Union Pacific Chairman Richard Davidson said the congestion has been resolved and trains are moving smoothly through the West. For months, Union Pacific has been plagued by a service backlog that prompted shippers’ complaints. Critics have blamed the delays on the railroad’s merger with Southern Pacific. The railroad also was troubled by a string of accidents last summer that prompted federal investigators to do a systemwide safety check. During an appearance at the Omaha Press Club, Davidson said the final quarter of 1997 was a bad quarter for the railroad, but he declined to say how bad. The company will release its quarterly earnings Thursday.