Fuel Masters Program - Fact Sheet
Union Pacific 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 several years. To control these costs the railroad is expanding Fuel Masters, a conservation program that rewards the fuel-saving efforts of locomotive engineers.
The program rewards fuel-saving engineers with 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 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 15 to 20 percent of each pool are awarded a $100 fuel card.
For example, since 2004, the Fuel Masters Program has decreased fuel consumption by six percent on the 175-mile run between North Platte and South Morrill, Neb. Other locations participating in the program have experienced improvements between four and eight percent.
Fuel Masters Program Deployment
The Fuel Masters program currently is available in approximately 30 crew runs across a dozen different states:
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Education
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.
Participation
More than 3,000 engineers on 30 routes are participating in the Fuel Masters conservation program. The program will be expanded to more than 4,000 engineers in 2006 with a systemwide deployment by 2007.
Key Benefits
- Average improvement overall is currently at a 5 percent lower consumption rate.
- Program saved approximately 16 million gallons or $30 million by end of 2005.
- Potential to more than double total amount of savings in 2006.
- Fuel conservation enhances locomotive engineer focus thus increasing safety.
- Rewarded engineers typically operate at a higher velocity than their peers.
- Fair reward system increases employee engagement.
- Increased engagement improves decision-making at work.
- Healthy competition promotes increased pride and job satisfaction.