In the summer of 2017 the Union Pacific Railroad (UP) and MGM Business Partners, Inc. aligned to create an outsourcing agreement. The new entity Rail Resources, Inc. was ushered in to handle and fast track the risk assessment, marketing, and accounting on all formal rejections. Rail Resources manages and monitors the rejections throughout the entire process from rejection to payment collection.
The agreement simplifies the salvage process for the UP and frees up their resources for other endeavors while maintaining, and in some cases, increasing the UP’s return. The turnkey solution provided by Rail Resources to the UP requires minimal time and effort from the UP.
The process begins when a formal rejection has occurred. From this point the reliable and veteran staff at Rail Resources goes to work finding the best possible marketing solution while minimizing risk and handling all of the logistics. The innovative solutions from Rail Resources provide a remarkable success, giving the UP desirable returns, reducing their costs, and allowing them to redirect their time and effort to more important business matters.
Our Proven Business Model
Once we are notified of the formal rejection we implement a regimented internal process from discovery through execution:
- Inspect the salvage for quality or count when necessary.
- Determine the proper fitness for consumptive use.
- Have an internal group discussion to determine the best plan of execution.
- Identify the best sale opportunities, including a contingency plan.
- If the best sale opportunity doesn’t meet predetermined minimum criteria, return to step 3 for additional discussion.
- Sell the product then issue a sale contract that includes all terms and conditions agreed upon between buyer and seller.
- Transfer or recover product if necessary, deliver product to buyer, and monitor disposition throughout the process.
- Immediately collect payment from the buyer, complete all accounting functions and reconcile the file.
- Report predetermined segments of information and provide payment to rail partner (both handled electronically).
- Retain a completed file with all supporting documents which are available for audit at any time upon request.