Los Angeles Transportation Club. Eric Butler - April 3, 2012

Transcription

1 Los Angeles Transportation Club Eric Butler - April 3,

2 Building America for 150 Years! Lincoln signs Pacific Rail Act in

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4 Positioned for Growth A Wide Range of Opportunities CONSUMER Consumer goods Construction materials Industrial materials Autos Plastics Pl ti ENERGY Coal Ethanol Wind Turbines Shale Oil 4 FOOD Food/Refrigerated Whole grains Grain products

5 The UP Value Proposition Best Franchise Seattle Eastport Portland Duluth/ Superior Twin Cities Oakland Omaha Salt Lake City Denver Kansas City St. Louis Los Angeles Memphis Calexico Dallas Nogales El Paso New Orleans Eagle Pass Laredo Houston Brownsville The Best Franchise in the Industry Diverse Business Mix Fastest Growing States Port Access Border Crossings 5

6 The UP Value Proposition Strategic Investment : ~17% to 18% of Revenue Annually $3.1 $15 Billion in 5 Years $37 Billion Since 1999 $2.5 $2.6 $3.2 $3.6 Strategic Investments The Best Franchise in the Industry E 6

7 2012 Capital Plan Replacement, Growth & Productivity $3.6+ Billion in 2012 $1,908 $1,920 Safe and Resilient Infrastructure Increased Capacity Spending 200 New Locomotives 2012 vs Capital* ($ In Millions) $1,084 $1,345 $224 $160 Increased PTC Spend $335 Replacement Growth & Productivity PTC *Includes cash capital, leases and other non-cash capital 7

8 Sunset Corridor LA SLC Denver Omaha Kansas City Chicago Joliet St. Louis Memphis Sunset Corridor Investment Continue Double Track Over 70% completion in 2012 Yuma West Colton LA Basin Graded Ahead Double Track Tucson Yuma El Paso Phoenix Eagle Pass Ft. Worth San Antonio Tucson Shreveport Houston New Orleans Santa Teresa, NM El Paso Build Santa Teresa Terminal Fueling facility and new intermodal ramp Expand LA Basin Union Pacific Does Not Provide Earnings Guidance. Information is Part of a Range of Planning Scenarios 8

9 To Coast Line LA Basin Port of Los Angeles Saugus Line Alameda Corridor ICTF Dolores Burbank Jct LATC LATC Intermodal Expansion East LA BNSF Hobart Port of Long Beach SCRRA Alhambra Sub City of Industry To Lathrop / Portland Alhambra Sub DT Los Angeles Sub West Colton Terminal Enhancements To Yermo via BNSF Colton Flyover BNSF UP / BNSF / UP Riverside Yuma Sub To El Paso LA Basin Investment Colton Flyover State, Federal, UP & BNSF participation Alhambra Sub Double Track Working towards full double track between Pomona and West Colton LATC Intermodal Expansion West Colton Terminal Enhancements Union Pacific Does Not Provide Earnings Guidance. Information is Part of a Range of Planning Scenarios 9

10 The UP Value Proposition Excellent Service AAR Velocity (MPH) Midwest Flooding/ Texas Drought Excellent Service Strategic Investments The Best Franchise in the Industry Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Recovered from 2011 s Weather Challenges Positioned for Growth * Through 3/23 10

11 The UP Value Proposition Innovative Products Produce Railexpress Innovative Products Excellent Service Strategic Investments The Best Franchise in the Industry Plant to Port Vehicle co-loading Crude Oil Trains Wind distribution centers Copper Connection 11

12 The UP Value Proposition North America s Leading Intermodal Network Largest Intermodal Network in North America Most Truck-Competitive Services Intermodal Auto Parts Network Capacity for Growth Flexible, Innovative Solutions Mutual Commitment Program Streamline 12

13 The UP Value Proposition Strong Relationship Strong Relationships Innovative Products Excellent Service Strategic Investments The Best Franchise in the Industry 13

14 Focusing On Creating Value for Customers Union Pacific s Value Proposition Strong Relationships GOOD Innovative Products 79 Excellent Service 64 Overall Customer Satisfaction Strategic Investments The Best Franchise in the Industry J/F 14

15 Focusing on Creating Value for Customers Supplier of the Year Rail Carrier of the Year Rail Carrier of the Year Customer Service On-Time Service President sawardfor s Logistics Excellence Rail Carrier of the Year North America Supplier of the Year Rail Carrier of the Year Carrier of the Year Intermodal Carrier of the Year Supplier of the Year Vendor of the Year Carrier of the Year Supplier Excellence Award 15

16 Working Together to Grow Effective communication supports growth yours and ours! Workforce (6-9 months) Resourcing today for future growth Long lead times for resource additions Permitting challenges Freight Cars (12 months) Main Lines (18-36 months) Locomotives (12 months) Terminals (18-36 months) 16

17 Union Pacific... Focusing on creating customer value Providing excellent customer service Investing for growth Offering a wide-range of options and support Working together to grow 17