SEARS UP Intermodal. Allison Watson, General Director March 26, 2014

Size: px
Start display at page:

Download "SEARS UP Intermodal. Allison Watson, General Director March 26, 2014"

Transcription

1 SEARS UP Intermodal Allison Watson, General Director March 26,

2 Union Pacific Intermodal $4.0 Billion Revenue 2013 Volume Mix Seattle Tacoma Portland Sparks Minneapolis / St. Paul Council Bluffs Chicago Domestic 47% International Truckload 47% 53% Oakland Lathrop Salt Lake City Denver Los Angeles Long Beach Las Vegas Tucson Kansas City St. Louis Memphis Nogales El Paso Dallas San Antonio Shreveport New Orleans Required Avg. Daily Transit Miles Intermodal Terminals Ports Interchange Points Eagle Pass Laredo Houston International (Marine Containers) Domestic (Domestic Containers and Trailers) Miles per Day 1

3 Intermodal Strategic Outlook Growth potential in all economic scenarios Superior market coverage Continued International growth from off shoring Expand Domestic highway conversion Focus capacity investments to capture growth in target markets Provide reliable and competitive service Deliver financial returns that support reinvestment 2

4 Western Intermodal Industry Overview Largest and fastest growing business in the West Global trade growth Highway conversion Domestic has replaced International as the driver of volume growth Millions of Units Western US Intermodal Volume '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 International Domestic Total Source: IANA; excludes Parcel/LTL 3 Western Intermodal Volume CAGR '01-'07 '07-'13 '01-'13 International 7.5% -4.0% 1.6% Domestic 5.5% 7.0% 6.2% Total 6.8% 0.6% 3.6%

5 UP s Broad International Network Supports Large Vessels 5,000-6,000 TEUs m 12 m Draft 19,000 TEUs 400 m m Draft Western ports have infrastructure in place to support largest vessels First 19,000 TEU vessel to be delivered in November Service to more inland points provides Ocean Carriers more options to fill larger vessels Inland Markets Served From Port Location Port Location UP Competition Pacific Northwest 8 6 Oakland 17 8 LA/Long Beach

6 Traditional Large Importer Supply Chain Overview Northeast Asia Chicago Ohio South Central Asia Kansas City Salt Lake City Dallas Southeast Asia Houston Atlanta Importer must make inventory allocation decision approximately 43 days prior to product delivery at inland destination 40 container 5

7 Transloading Supply Chain Overview Northeast Asia Chicago Ohio South Central Asia Southeast Asia Port Cross-Dock Facility Importer makes inventory allocation decision 9 days prior to product delivery at inland destination Increased handling and transportation cost offset by benefits of improved ability to match demand Fewer lost sales due to out of stock SKUs Less discounting due to overstock inventory One major importer reduced time between payment for goods in Asia and when sold in the US by 8 days Kansas City Salt Lake City Dallas Houston Atlanta 40 container 53 container 6

8 Largest Domestic Western Intermodal Network UP connects twice as many major markets in North America Competitive service in all lanes Connect to the most major markets in Mexico and Canada 7

9 Union Pacific Intermodal Southeastern Market Coverage Seattle Portland Chicago Reno Northern California Los Angeles Salt Lake City Phoenix Denver Nashville Memphis Atlanta Charlotte Charleston Birmingham Savannah Union Pacific Service Point Tucson El Paso San Antonio Laredo Shreveport/ NOLA Tampa/ Orlando Jacksonville Miami Eastern Carrier Service Point Interchange Point 8

10 UP North American Domestic Container Programs Over 53% of the Industry s Capacity Interline program with NS Program began in 1994 Access to over 32,000 rail-owned containers Interline program with CSX Program began in 2010 Access to over 31,000 rail-owned containers 9

11 Union Pacific Offers Unparalleled Mexico Market Coverage Canada Northeast Northern California St Louis Chicago Atlantic Los Angeles Tucson El Paso Memphis Southeast Border Direct: UP rail service to the US border Nogales Hermosillo Juarez Chihuahua Eagle Pass Monterrey Laredo Streamline Passport Service: Door to door Intermodal service into & out of Mexico Mexico Direct: UP/Mexican rail to a Mexican rail ramp Torreón Aguascalientes Guadalajara Saltillo San Luis Potosí Querétaro Toluca Mexico City Puebla Border Direct Passport Only Mexico Direct & Passport 10

12 New Santa Teresa (El Paso) Terminal Provides capacity to Add New Lanes $400 Million overall project 225,000 lift capacity Potential Service Lanes El Paso Southeast, NorCal El Paso Dallas, Portland El Paso Kan City, St Louis August 2013 Opening: April 2014 New SE Services: June

13 Enhanced Website Experience Modern look and feel with complete redesign Responsive design Easier to find links News call-outs Savings Calculator 12

14 Driving Growth: Focus on Creating Value Union Pacific s Value Proposition Strong Relationships Innovative Products GOOD 80 Intermodal Customer Satisfaction Excellent Service Strategic Investments The Best Franchise in the Industry

15 14 Thank you for your business!!