Called “precision-scheduled railroading,” or PSR, this new concept is cascading through the industry. Under pressure from Wall Street to improve performance, Norfolk Southern and other large U.S. freight carriers, including Union Pacific Corp. and Kansas City Southern, are trying to revamp their networks to use fewer trains and hold them to tighter schedules.
The moves have sparked a stock rally that has added tens of billions of dollars to railroad values in the past six months as investors anticipate lower costs and higher profits. The new approach was pioneered by the late railroad executive Hunter Harrison, who engineered turnarounds at two major Canadian railroads and Jacksonville, Fla.-based CSX Corp. by radically revamping their logistics.
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Enjoying Her Kaleidoscope
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