Union Pacific Hurricane Recovery and I d n ustry Overview TTI hort Course Tyson Moelle General Director Netwo Development

Transcription

1 October 17, 2018 Union Pacific Hurricane Recovery and Industry Overview TTI Short Course Tyson Moeller General Director Network Development 1

2 Seattle Portland Oakland Los Angeles Eastport Calexico Salt Lake City Nogales Denver El Paso Eagle Pass Omaha Laredo Duluth Twin Cities Kansas City Dallas Chicago St. Louis Memphis New Houston Orleans Brownsville Strength of a Unique Franchise Operating Revenue: $21.2 B Route Miles: 32,100 in 23 States Employees: 42,000 Annual Payroll: $4.1 B Customers: 10, Locomotives: 8,600 Port Access Border Crossings 2

3 2017 Union Pacific in Texas Miles of Track: 6,306 Annual Payroll: $692.3 M In-State Purchases: $1.7 B Capital Investment: $825 M Employees: 7,315 U.S. Jobs Supported*: 65,835 In Houston Complex: Employees*: 1,875 *Each American freight rail job supports 9 jobs elsewhere in the U.S. economy. (Association of American Railroads) 3

4 October 17, 2018 Union Pacific Hurricane Harvey: Impact and Recovery Brownsville to Beaumont, Galveston to Palestine 4

5 Hurricane Harvey Preparations Implemented hurricane protocol Protect employees, customers and communities Position generators, crews and recovery supplies Implemented Corpus to Houston-area embargos Clear cars and locomotives from key areas Secure safe accommodations for employees Establish dedicated UP command center Assign UP personnel to County EOC s Proactively shut down routes and facilities Identified alternative and shared route options Moved Spring Dispatching to Omaha (unprecedented) Communications with customers via dedicated Hurricane Hotline, , up.com, Twitter, etc. TxDOT Program Developed from this to power up grade crossings 5

6 Houston Area Outages Longview Shreveport Out of service Bridge out of service Taylor Waco Hearne Palestine 1,750 miles Out of service Laredo Kingsville Flatonia Victoria Corpus Christi Navasota Angleton Bloomington Houston Freeport Beaumont Galveston 2,440miles Route miles impacted 10 Days 97% of route re-established Harlingen Brownsville 6

7 Hurricane Harvey 150 Track/bridge outages 28 Subdivisions affected 12 Facilities temporarily closed 7

8 Hurricane Harvey Recovery Conference calls around the clock with all UP departments to discuss impacts and develop strategies Maintained a dedicated Customer Hotline Relocated crews to affected areas: provided Omaha relief teams for managers Added locomotives to handle surge of return traffic Secured necessary fuel to serve customers Visually inspected 35,000 cars in the affected area for exposure to flood water Pi Prioritized iti repairs to quickly open key routes Collaborated with other railroads to accelerate recovery Coordinated with TxDOT, Port, and County to open back up 8

9 Brazos River Bridge 2016 Memorial Day Flood: bridge washed out 2017 Hurricane Harvey: new bridge held 9

10 San Jacinto River Five span bridge washed out: Installed wider spans 10

11 Real-time community support Maintained communications with elected officials and EOC s throughout the storm Responsive to community concerns and questions Worked with Federal Railroad Administration and cities to address repairs to quiet zones 11

12 Rail Industry spend: $600 Billion since 1980 Private investments UP Annual Spend $2 to 4 Billion since /17/18 12

13 Strengthening the Franchise ~$3.3 3 Billion 2018 Capital Plan Infrastructure Replacement $1,970 M Locomotives & Equipment $460 M Technology & Other $240 M Capacity & Commercial Facilities $445 M PTC $160 M Capital Spend Approximately 15% of Revenue 13

14 Texas Railroad Tons Compare to ~1 Billion Tons moved on Trucks in Texas ~190 M Tons ~322 M Tons Source: AAR /17/18 14

15 IT WOULD HAVE TAKEN NEARLY 23 MILLION TRUCKS TO HANDLE THE 412 MILLION TONS OF FREIGHT THAT ORIGINATED IN, TERMINATED IN, OR MOVED THROUGH TEXAS BY RAIL IN Source: AAR 15

16 THE TEXAS FREIGHT ADVISORY COMMITTEE PREDICTS RAIL FREIGHT GROWTH WILL DOUBLE BY

17 Texas Population and Freight Growth 17

18 TEXAS HAS LOTS OF IDEAS SO FAR, FREIGHT RAIL IS NOT PART OF THOSE SOLUTIONS 18

19 Public Benefits from Rail Projects What should the qualifications for public private project be? Potential Public Benefits Improved capacity and mobility for vehicles Example: Reduced pavement and bridge repairs on roads Adding capacity to Avoided reconstruction/new construction costs on roads UP s Strang Sub will Air quality improvements convert at least xx,xxx Trucks off the roads trucks from Hwy 288 Rail Benefits Operational flexibility Pulls conceptual projects in to reality Rail Project Considerations Has to meet today s engineering standards Takes years not months to develop Takes millions not thousands of $ s annually. This creates capacity for xxx,xxx passenger vehicles. Reduced pavement damage will be $Y million and emissions reduction will be zzz tons. 10/17/18 19

20 TxDOT, MPO, County & City Involvement Potential public projects with rail components in Texas Potential Projects in Texas Beaumont Neches River Bridge 2 nd ML (TxDOT/Port) Dayton TxDOT Hwy 90 grade separation (TxDOT/HGAC/County) El Paso - TxDOT I-10 improvements and UP Lordsburg Sub relocation Houston 2 nd main line bridge at Broadway St. (TxDOT/HGAC/Port/PTRA) Houston UP rail consolidation Eliminates 18 at grade crossings (Central Houston) Harlingen UP track relocation (Cameron County/City) Kyle Siding relocation reduces congestion (CAMPO/City) Laredo I-35 expansion and freight mobility planning (TxDOT) Brazos Yard This is not an inclusive list 10/17/18 20

21 RAIL SOLUTIONS THAT CREATE PUBLIC BENEFITS SHOULD BE CONSIDERD FOR STATE FUNDING IN THE FUTURE 21

22 Public Affairs Contacts UP Southern Region Southern Region AVP Brenda Mainwaring East Tx Drew Tessier South & West Tx Ivan Jaime Houston & Gulf Coast Tx Richard Zientek

23 Public Project Managers UP Southern Region - Texas Clay Mcmanaman CAMCMANA@UP.com Andrew Hudanish ADHUDANI@UP.com Steven Thomas SETHOMAS@UP.com Doug Woods Southern Region Mgr. DGWOODS@UP.com Todd Harris STHARRIS@UP.com Brandon Kasper BMKASPER@UP.com Dale Hill DRHILL@UP.com

24 Union Pacific: Building America for more than 150 Years g May 10,