DuPont Co. of Wilmington, Del., has joined Dow Chemical Co. in filing suit against Union Pacific Railroad Co. to recover losses caused by congestion on UP's lines.
``We expect a continuing adverse impact on our operations until Union Pacific is restored to `pre-crisis' levels,'' DuPont global logistics director Charles Beinkampen said in a news release.
``We acknowledge Union Pacific's continuing effort to resolve its service problems, however, we believe this lawsuit is an entirely appropriate measure to mitigate our losses,'' he said.
DuPont Texas facilities in Victoria, Orange, La Porte, Fort Worth and Deer Park, along with its Lake Charles, La., site, all have been affected by the slowdown.
``Both upstream and downstream products have been affected,'' DuPont spokeswoman Diane Currie said. ``It's also affected intermediate or finished products and polymers.''
DuPont is the leading North American nylon producer.
UP has struggled with rail congestion and delivery times after merging with Southern Pacific in 1996.
UP officials have declined to comment on the DuPont suit, according to company spokesman John Bromley.
DuPont, which did not reveal how much it has lost to date, filed its suit March 17 in Harris County District Court in Houston.
Dow, which estimates it has lost more than $25 million, filed a similar suit the same day in Brazoria County District Court in Angleton, Texas.
DuPont saw no need to publicize the suit, Currie said. In comparison, news of the Dow suit received national attention, including a story in the March 17 Wall Street Journal.
``UP's problems are well-documented,'' Currie said in explaining DuPont's decision to take a more low-key approach to its lawsuit.