March Quarter-End Safety, Service, and Cost Focus

Sean Ireland

Good morning, everyone. As we head into the final three days of March and the close of the first quarter, I want to start where we always should start, and that is safety. This is the time of the month and the quarter when the pace can pick up, attention can get pulled in a lot of directions, and people can start thinking about getting caught up. Let me be very clear about that: getting caught up will only be achieved by operating safely. There is no version of a strong finish that comes from cutting corners. There is no productivity gain worth taking our eyes off the basics.

Sean Ireland

And this week, we have some added realities outside of work that matter. Easter is next weekend. For many families, spring break is happening right now. That can mean kids at home, travel plans, family commitments, schedule changes, all the normal things that pull at your focus before you ever get on property. I want everybody to acknowledge that for what it is. Distractions do not stay at the front door. They come with us if we let them. So before every shift, take a minute and get your head where your feet are. Be present. Be intentional. Make sure the people around you are doing the same.

Sean Ireland

We are also still working through congestion in many yards and terminals as we transition out of winter and through this spring period. I know that creates pressure. You look at the work, you look at the inventory, you look at the plan, and it is easy to think the answer is to move faster. Usually, the answer is to move smarter and to stay disciplined. Safe execution is what creates fluidity. Safe execution is what reduces rework, exceptions, injuries, and equipment damage. That is how we get the network back where it needs to be.

Sean Ireland

I also want to call out the level of leadership engagement we had this weekend. Test teams were active across the region, and we had senior leadership presence out there as well, especially during the evening and overnight hours. That matters. It sends the right message that safety, testing, and field presence are not daytime-only priorities. Our people work around the clock, and leadership needs to be visible around the clock too.

Sean Ireland

So as we close this month and this quarter, I am asking for sharper focus, not just more effort. Watch for the routine things that can become risky when we get comfortable. Slow down enough to do the job right. Have the conversation before the move, not after the mistake. If conditions are different, if the track is soft, if a switch does not feel right, if the crew is distracted, say something and deal with it. That is what professionals do. We are not chasing a short-term number at the expense of our people. We are going to finish March the right way, and we are going to set the tone for the new quarter with safe, disciplined operation.

Sean Ireland

Now, for the week ahead, there are a few things I need everyone aligned on. Tuesday is a 24-hour regional drone day focused on ERDs and operational testing. Make sure the equipment is ready, make sure batteries are charged, and make sure we are prepared to execute. This is an important part of our field visibility and our testing effort, and I expect strong engagement across the region.

Sean Ireland

Also, our Monday-through-Friday testing plan is in effect and will run through next Friday at 1800. Q2 testing requirements begin this week. The regional change is straightforward, but important: the one shove test per week is replaced by one banner test per week. Everything else still needs the same level of seriousness and follow-through. Testing is not a check-the-box exercise. It is one of the ways we sharpen habits, identify exposure, and reinforce the standards we expect every day.

Sean Ireland

And on the topic of standards, I attached the rule changes effective April 1. One significant change I want everybody to understand clearly is this: in flat yard switching, we will kick only three cars at a time, regardless of whether those cars are loads or empties. The only exception is Cumberland. I do not want confusion around that. Three cars at a time in flat yard switching, loads or empties, except Cumberland. As we move into April, that has to be applied consistently.

Sean Ireland

There are also several field reminders that we cannot afford to get loose on. For RCO assignments, personnel need to be out on the point and not in the cab of the locomotive. Do not protect shove moves from inside a truck or taxi. I am going to say that again because it matters: do not protect shove moves from inside a truck or taxi. Protect the movement correctly. Be where you need to be. See what you need to see.

Sean Ireland

Be alert as well for gapped switches and soft track conditions from thaw and freeze, especially as temperatures change. Little to no tension on the switch is a warning sign. Customer track conditions can also be affected by rain and thawing ground, so do not assume a location that was fine a week ago is fine today. Conditions are changing daily. Snow to rain, back to snow in some places — that kind of pattern creates exposures, especially around shoves and securement, and we have seen an increase there.

Sean Ireland

That is why job safety briefings matter so much right now. If we are working with a crew, perform a briefing. Better yet, get out on the ballast with our people, observe the work, and provide feedback. Those conversations matter. Ask questions. Be curious. What are the exposures? What has changed since the last move? What can we do right now to reduce risk in the field? That applies to assistants observing yardmasters too. We need two ERDs this week on yardmasters, with focus on job briefing books, distractions, radio communication, and overall awareness. Sit back, observe them working, tell them you are there to observe, and have the discussion about exposure reduction.

Sean Ireland

Operational testing remains a major focus. We need one switch card test per shift to be performed on shove moves. And critical rule follow testing is a huge focus for us right now. We have more than 38 people who have had critical rule test exceptions this year that need to be followed up on. That follow-up cannot drift. It needs to happen. The standard is the standard, and our job is to reinforce it consistently and fairly.

Sean Ireland

Let me close with cost, service, and where we need to put our energy this week. From a cost perspective, we are maintaining our focus on CSD, and this week we are taking a deeper dive into car hire. Specifically, we need to move older cars that have been sitting and accruing cost. Those cars hurt us if they stay parked, and they hurt us twice when they also contribute to congestion. So this is not just an accounting topic. It is an operations topic. We need urgency around older cars, and we need disciplined review across the system.

Sean Ireland

We also need to continue driving reductions in overtime and extra crew starts. I know those things can seem like separate conversations, but they are connected. Better planning, safer execution, cleaner yard performance, and stronger train origination all support lower cost. Sloppy operation drives cost up. Disciplined operation brings it down. That is the connection I want everybody thinking about this week.

Sean Ireland

And to support that focus, our Dinner and Development session is this Wednesday at 1700, and car hire is the topic. I expect strong engagement from the team. Come ready to talk specifics, not just broad ideas. We know where the pressure points are, and we need to leave that session with clear action and clear ownership.

Sean Ireland

On the service side, CSD improved last week to 93.7 percent across the region. That is movement in the right direction, but we remain below our 95 percent goal, so the message is simple: good progress, not mission accomplished. We need to continue driving strong first-mile and last-mile service with our customers. That starts with on-time train originations and it absolutely includes reducing our 32-hour car count. The older-car issue and the 32-hour count are tied together. If we want to set the table for Easter weekend, we have to drive down those aged cars now, not later.

Sean Ireland

This coming week, our primary service focus is on-time train performance, especially with our intermodal trains. Intermodal does not leave much room for inconsistency. We need plans that are executable, yards that are ready, crews that are prepared, and leadership that is engaged. That means staying close to the operation all week, not just when something goes wrong.

Sean Ireland

I will end where I began. This is a week where a lot is happening at once: quarter end, month end, spring break, Easter ahead, congestion in the network, testing activity across the region, rule changes taking effect April 1st, and important cost and service targets that need our attention. None of that changes the formula. Stay focused. Operate safely. Test with purpose. Move the older cars. Protect service. Reduce unnecessary cost. And finish the week strong so we are in position heading into Easter weekend.

Sean Ireland

I appreciate the effort across the region, especially the field presence we saw this weekend and the work being done day and night. Let us carry that same intensity into this week, with safety first and discipline in everything we do. Have a good week, and we will keep building from here.