Union Pacific Engineers Rewarded for Saving Fuel

OMAHA, Neb., May 2 - Like all motorists, Union Pacific is feeling the economic pinch of rising fuel prices. The railroad uses an estimated 3.25 million gallons of diesel fuel every day and has seen its fuel costs grow by hundreds of millions of dollars over the past year. To control these costs -- and help employees fill their own gas tanks -- the railroad is expanding a conservation program that rewards the fuel-saving efforts of locomotive engineers.

Called "Fuel Masters," the program rewards fuel-saving engineers with $50 fuel cards that they can use to offset their own rising fuel costs. An engineer's conservation efforts are determined by comparing monthly fuel consumption performance against fellow engineers on the same territory. A one-to-two-month snapshot of each engineer's fuel consumption performance is used to calculate individual average consumption rates. Engineers are grouped by pool or specific run to eliminate variances such as flat versus hilly terrain, and each month engineers in the top 10 to 15 percent of each pool are awarded a fuel card.

"'Fuel for Fuel' is more than a dollar saving program, it's also an important conservation initiative for the railroad," said Wayne Kennedy, director of Union Pacific's Six Sigma program. "Whether finding new ways to stretch a gallon of diesel fuel or employing the latest technology to cut locomotive emissions, we are working very hard to protect the environment and our natural resources."

Since its introduction in April 2004, Fuel for Fuel has decreased fuel
consumption by ten percent on the run between North Platte and South Morrill, Neb. Other locations piloting the program have experienced improvements between five and eight percent. Education is an important part of the program. Engineers are provided a fuel conservation help sheet that offers tips for improving fuel consumption, and in several locations, engineers work on simulators that offer instruction on fuel saving techniques. In addition, engineers are counseled on fuel saving methods by engineer peer trainers who are the top performers in their pool.

More than 1,000 engineers on 12 routes are participating in the Fuel Masters conservation program. The routes are located in Wyoming, Nebraska, Kansas and Missouri. Union Pacific is committed to protecting the environment for its customers, employees and the communities it serves. The railroad strives to meet the highest principles of environmental responsibility in its role as a leader in transportation. To meet its commitment, Union Pacific is piloting programs such as "Fuel for Fuel" and testing new technology such as diesel-hybrid switching locomotives.

Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across the western two-thirds of the United States. A strong focus on quality and a strategically advantageous route structure enable the company to serve customers in critical and fast growing markets. It is a leading carrier of low-sulfur coal used in electrical power generation and has broad coverage of the large chemical-producing areas along the Gulf Coast. With competitive long-haul routes between all major West Coast ports and eastern gateways, and as the only railroad to serve all six major gateways to Mexico, Union Pacific has the premier rail franchise in North America.

Source : Union Pacific