Robert M. Knight: As we improve our profitability we have capacity on the balance sheet. We have not given the target since what we are aiming for other than being a solid triple B flat rated kind of metrics is how we look at it.

John Barnes (BB&T Capital Markets): Have you seen the competitive environments pull over into any other commodity type other than intermodal in terms of more aggressive truck pricing for other types of commodity?

James R. Young: We have seen it in our industrial product.

John Barnes (BB&T Capital Markets): Is your bulk franchise doing a little bit better than you would have expected because of some market share gains from the barges?

John J. Koraleski: We do not see the market share shift from barges being significant as they do the export market demand that is out there today and the cheap US dollar.

James R. Young: There were some impact on our coal business because of the high waters on the rail routes where we ended up backups and trains.

John Barnes (BB&T Capital Markets): Have you started to rethink your strategy in terms of how you approach your fuel-cost?

James R. Young: At the end of the day our best strategy is on the fuel surcharge. We have locked in a future price and it falls and then we have got the worst of both worlds. we are refunding, you are cutting your revenues side and you lock the high price and it can work both ways.

John Barnes (BB&T Capital Markets): Is there a price level that does become attractive from the standpoint of doing something on a hedge basis?

James R. Young: Yes. The only time we might look at it is where you get down to where we have the base coverage, which is probably in more of the $50, $60 range.

Randy Cousins (BMO Capital): On the Ag business, comment on the relative advantages of shipping out of the PNW versus the Gulf and whether more attractive shipping rate kind of PNW imply to the strength of the Union Pacific versus shipping out of the Gulf?

John J. Koraleski:The determinant is really the freight factors as we look at it today we did see a significant increase in the PNW. And that works out fairly well for us. But what we are looking at right now is the balance between the Gulf and the PNW and the markets will shift depending on ocean freight rates and things like that.