September 15, 2008
Letter from Jack Koraleski - Regarding Impact of Hurricane Ike
To our Customers,
Following the landfall of Hurricane Ike, I wanted to give you an update on our railroad. Union Pacific track inspectors and signalmen continue to assess our rail infrastructure in Houston and other impacted areas. While at this point they are not finding much evidence of major structural damage, downed power lines and trees are blocking tracks from Houston to Arkansas and Louisiana. Inspectors are also still unable to access some areas due to flooding and debris, including Dayton, Baytown and Freeport, Texas, where some facilities have reported up to 15 feet of water on their property.
With power still out across much of the Houston area, Union Pacific is deploying many of the 1,000 generators we staged in advance of the storm. Our employees are also working in the state's hurricane emergency center in Austin, Texas, to help coordinate UP's recovery efforts with the major utility companies.
Crews Work to Clear Debris and Restore Service
Over the weekend, trees and other debris were removed from the track between Longview, Texas and Little Rock, Arkansas, as well as between Big Sandy, Texas and Pine Bluff, Arkansas, to restore service to those routes. Our engineering crews are working around the clock to restore service west and south of Houston, and the north-south route between Hearne and Longview, Texas. As additional generators are placed, and crossing warning devices become operational, trains will be able to move west to San Antonio and beyond, and south to Angleton, Bloomington and Brownsville. The route to Corpus Christi from San Antonio remained open throughout the storm.
Traffic to Beaumont and Port Arthur, Texas will be rerouted or held until trees are cleared from that line. Damage reports are still coming in from lines south of Palestine and on the line between Shreveport and Houston. Crews are also working to restore service at Union Pacific's Houston-area Settegast and Englewood yards, where track remained under water until this morning.
Inspection of Cars at Flooded Facilities
As we reach out to customers, we are finding many of their facilities remain out of service today as well, due to flooding, wind damage and lack of commercial power. As the flooding recedes and service is restored, our operations employees will be working with customers on their plans to resume operations. As part of that recovery, they will be helping customers identify any rail cars held at any their facilities that were flooded in the storm and will need to be inspected for damage. Depending on the water level, the axle roller bearings or air brake valves may need to be replaced - in accordance with AAR requirements - prior to movement. Rail cars that are damaged will be placed in a mechanical hold status until repairs can be made. For more details about this process, please see the guidelines provided on our web site.
Embargo to Remain in Place; Rerouting Continues with CSX
For the time being, as inspections continue and we work to restore service, the embargo will remain in place on all shipments - with the exception of automotive and intermodal - into and out of all areas from Orange, Texas (just east of Houston) through Houston and south to Sinton and Gregory, Texas.
Officials in New Orleans have reopened the Huey P. Long Bridge into the city, allowing us to resume interchange there with the NS. We will continue to reroute some traffic normally interchanged with the CSX at New Orleans over the Memphis and St. Louis gateways, as CSX continues to repair damage on its line following Hurricane Gustav earlier in the month.
The good news is that our railroad was in great shape prior to this storm. This momentum certainly helps in our efforts to restore service.
We anticipate having a complete assessment of the impacted areas over the next few days and will provide further updates on our web site as information is available.
