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1992 ANOTHER SUCCESSFUL YEAR FOR SANTA FE INTERMODAL

 SCHAUMBURG, Ill., Jan. 20 /PRNewswire/ -- In 1992, Santa Fe Railway's intermodal loadings increased 11.6 percent compared to a 6.7 percent growth rate in 1991.
 Broken down by business groups, international business increased 21 percent, shipments from direct marketing accounts grew 19.8 percent and business through our intermodal marketing company (IMC) partners increased 1.4 percent. Additionally, we recorded three consecutive months of record breaking volumes in August, September and October,'' said Ed Zajac, assistant vice
president-intermodal marketing & sales. We've focused on improving our partnerships with customers by providing proactive logistics service, refining our measurement systems and streamlining our operations.''
 Santa Fe's international segment has grown at a compound annual rate
greater than 13 percent for the last four years. During this time we have focused on logistics support for international customers by providing more real time information on the status of loads,'' said Jack Fields, assistant vice
president-international sales and service. Additionally, we have become more operations intensive by enhancing efficiencies at major terminals to provide expedited processing of intermodal traffic.''
 Growth in the international segment was generated from existing
international customers as well as from new contracts signed last year. Our strategy for 1993 is to develop our existing business further and explore other worldwide opportunities that make sense for both the customer and Santa Fe,'' explained Fields.
 According to Paul Nowicki, director-intermodal marketing, The direct marketing volume increase was generated by Quantum, our partnership with J.B. Hunt Transport, mail traffic and additional less than-truckload and auto parts
business.'' Nowicki continued, We expect a comparable increase in 1993 as well, led by continuing growth of Quantum business.''
 Don McInnes, senior vice president-intermodal, sees the industry increasing
its focus on partnerships between carriers. The future will hold an increasingly complex web of relationships among shippers, railroads, intermodal marketing companies, trucking companies and steamship companies,'' said
McInnes. In this environment, the keys to survival and prosperity will be flexibility, creativity and responsiveness. These attributes will continue to strengthen our relationships with other carriers and our customers.''
 Santa Fe's business growth from ICM's was the result of a successful
two-part strategy. We concentrated on expanding eastbound business and converting our traffic from trailers to containers,'' said Owen Zidar, general
director-intermodal. We succeeded on both counts. Eastbound traffic grew 19 percent and 31 percent of IMC traffic moved in containers, a five percent increase over 1991.'' Zidar also commented that currently one-third of all IMC business is generated from three party agreements among IMCs, beneficial owners
of goods and Santa Fe. We plan to double the number of three party agreements over the next five years,'' said Zidar.
 During the year, logistics support played a major role in the success of Santa Fe's intermodal business unit by improving communications and providing more real-time information to customers. To improve IMC communication, Santa Fe
has placed logistics personnel in the offices of select IMCs. We have an off-site logistics specialist at four IMCs. These specialists facilitate effective communication by monitoring shipments and evaluating performance,''
said Mike Parrott, manager-logistics. As a result, our staff develops stronger relationships with key IMC personnel to improve planning and resolve problems more quickly.'' In 1993, the logistics department plans to expand its off-side logistics personnel program to other IMC offices.
 Other initiatives that contributed to improved communication and more real-time information were the introduction of a 24-hour recorded hot line for customers and two new computer programs. The hot line provides customers with current information on equipment status and opening conditions.
 The introduction of Transportation Service Schedule and Service Scheduling, our two new computer programs, was not without its problems. However, in 1993 our customers will begin to see the benefits of these
systems,'' explained Harry Wong, director-logistics. Each customer will be provided with a trip plan for their loads, enabling them to monitor their shipments enroute on a real time basis. Customers will be actively involved in the transportation process by making critical shipment decisions as circumstances, such as bad weather, develop across the system.''
 To ensure Santa Fe maintains its high quality service, the railroad is
planning a substantial investment in plant and equipment in 1993. We have allocated approximately $100 million for terminal improvements to further improve operations,'' said Steve Branscum, assistant vice president-intermodal
equipment and hub operations. These improvements include rebuilding track, acquiring a new travelift and building a new checkpoint for the Los Angeles facility, constructing an intermodal facility at Fort Worth, constructing and expanding container yards at Kansas City and Houston, and planning a new intermodal facility at San Bernardino. Additionally, we'll acquire approximately 2,500 containers and chassis to keep pace with expected volume growth in 1993.''
 -0- 1/20/93
 /CONTACT: Philippa Dworkin, Manager Public Affairs of Santa Fe Railway, 708-995-6224/


CO: Santa Fe Railway ST: Illinois IN: TRN SU:

KD -- NY085 -- 7134 01/20/93 17:21 EST
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Date:Jan 20, 1993
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