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Feds tighten scrutiny of UP
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October 31, 1997: 9:18 a.m. ET
Railroad may be ordered to open rails to competitors to ease cargo backlogs
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NEW YORK (CNNfn) - Federal railroad regulators are increasing their scrutiny of Union Pacific Railroad in the wake of two major collisions in Texas over the past week and 20 wrecks systemwide since the spring.
Published reports also say the Surface Transportation Board, which oversees rail service, is expected to make UP tracks available to competing railroads.
The unprecedented move would be aimed at reducing service backlogs that have angered a number of companies, including Chevron Corp., which has filed suit over the delays.
Union Pacific also said it is implementing a new program that will guarantee time off for its 3,500 train and engine employees in Texas, starting this weekend.
Railroad officials said the new initiative was added after discussions with the Federal Railroad Administration and Union Pacific's unions.
It comes after Union Pacific promised regulators that it will improve communications and scheduling with its crew members.
Those problems have plagued the railroad since it took over Southern Pacific in 1996 and have held up deliveries in the Midwest, Northwest and other regions.
The FRA said it will scrutinizing UP beginning Nov. 3 to determine how safety measures can be improved. Safety inspectors will ride along with crews throughout the Southern region affected by the slowdowns to ensure the carrier is operating safely and to review the way trains are dispatched in the company's Omaha, Neb., operations center.
Train crews, local railroad officials and others will be reviewed by safety experts to determine if other problems exist, published reports say.
Ronald Davidson, Union Pacific's chairman and chief executive officer, said the company's recovery plan is working. He said UP will look like a "different railroad" once the initiatives are put into place, which he said will be by Thanksgiving.
UP also said it will expand voluntary safety programs in December. 
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