Profile: Union Pacific Corp (UNP)
28 Oct 2016
Union Pacific Corporation, incorporated on February 3, 1969, operates through its principal operating company, Union Pacific Railroad Company. Union Pacific Railroad Company links approximately 20 states in the western two-thirds of the country by rail, providing link in the supply chain. Its business mix includes agricultural products, automotive, chemicals, coal, industrial products and intermodal. The Company operates from West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and serves approximately six Mexico gateways. The Company is a Class I railroad operating in the United States. The Company's network includes approximately 32,080 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways and providing several corridors to Mexican gateways. It owns approximately 26,060 miles and operates on the remainder pursuant to trackage rights or leases. It serves the western two-thirds of the country and maintains coordinated schedules with other rail carriers for the handling of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada and Mexico. Export and import traffic is moved through Gulf Coast and Pacific Coast ports and across the Mexican and Canadian borders.
The Company's freight traffic consists of bulk, manifest, and premium business. Bulk traffic primarily consists of coal, grain, soda ash, ethanol, rock and crude oil shipped in unit trains-trains transporting a single commodity from one source to one destination. Manifest traffic includes individual carload or less than train-load business involving commodities, such as lumber, steel, paper, food and chemicals. The transportation of finished vehicles, auto parts, intermodal containers and truck trailers are included as part of its premium business.
The Company accesses most grain markets, linking the Midwest and Western United States producing areas to export terminals in the Pacific Northwest and Gulf Coast ports, as well as Mexico. The Company also serves domestic markets, including grain processors, animal feeders and ethanol producers in the Midwest, West, South and Rocky Mountain states. Unit trains, which transport a single commodity between producers and export terminals or domestic markets, represent approximately 42% of the Company's agricultural shipments.
The Company is an automotive carrier west of the Mississippi river and operates over 40 vehicle distribution centers. The Company's franchise serves approximately five vehicle assembly plants and connects to West Coast ports, Mexico gateways and the Gulf of Mexico to accommodate both import and export shipments. In addition to transporting finished vehicles, it provides handling of automotive parts in both boxcars and intermodal containers for Mexico, the United States and Canada.
The Company's franchise serves the chemical producing areas along the Gulf Coast, where approximately 60% of the Company's chemical business originates, terminates or travels. The Company's chemical franchise also accesses chemical producers in the Rocky Mountains and on the West Coast. The Company's chemical shipments include over six categories, such as industrial chemicals, plastics, fertilizer, petroleum and liquid petroleum gases, crude oil and soda ash. These products move primarily to and from the Gulf Coast region. Fertilizer movements originate in the Gulf Coast region, the western United States and Canada (through interline access) for delivery to agricultural users in the Midwest, western United States, as well as abroad. Soda ash originates in southwestern Wyoming and California, destined for chemical and glass producing markets in North America and abroad.
The Company's network supports the transportation of coal and petroleum coke to independent and regulated power companies and industrial facilities throughout the United States. Through interchange gateways and ports, the Company's reach extends to the eastern United States utilities, Mexico, Europe and Asia. Water terminals allow the Company to move the western United States coal east through the Mississippi and Ohio Rivers, as well as the Great Lakes. Export coal moves through West Coast ports to Asia and through the Mississippi River and Houston to Europe. Coal traffic originating in the Southern Powder River Basin (SPRB) area of Wyoming is a segment of the Company's coal business.
The Company's industrial products group consists of various categories, including construction products, minerals, consumer goods, metals, lumber, paper and other miscellaneous products. Commercial, residential and governmental infrastructure investments drive shipments of steel, aggregates (cement components), cement and wood products. Oil and gas drilling generates demand for raw steel, finished pipe, frac sand, stone and drilling fluid commodities. Industrial and light manufacturing plants receive steel, nonferrous materials, minerals and other raw materials. Paper and packaging commodities, as well as appliances, move to metropolitan areas for consumers. Lumber shipments originate primarily in the Pacific Northwest and western Canada and move throughout the United States for use in new home construction and repair and remodeling.
The Company's intermodal business includes two segments: international and domestic. International business consists of import and export container traffic that mainly passes through West Coast ports served by the Company's terminal network. Domestic business includes container and trailer traffic picked up and delivered within North America for intermodal marketing companies (primarily shipper agents and logistics companies), as well as truckload carriers. Less-than-truckload and package carriers with time-sensitive business requirements are also a part of domestic shipments.
The Company competes with Burlington Northern Santa Fe LLC.
Union Pacific Corp
1400 Douglas St Stop 310
OMAHA NE 68179-1001
Company Web Links
- Falling freight hurts Union Pacific third quarter profit; stock slides
- Despite U.S. campaign rhetoric, Union Pacific CEO upbeat on TPP
- UPDATE 4-Falling freight hurts Union Pacific 3rd-qtr profit; stock slides
- BRIEF-Union Pacific Q3 EPS $1.36
- Union Pacific Q3 profit falls as freight volumes drop 6 percent