July 2018 Los Angeles Transportation Club Shawntell Kroese Vice President – Loup
Agenda Union Pacific Update Loup Introduction Key Market Influencers Innovation At Loup Q&A Session 2
Seattle Eastport c Duluth Portland Twin Union Pacific Cities 2017 Fast Facts Omaha Chicago 143 on Fortune 500 Salt Lake City Kansas Denver City Freight revenue $19.8 billion Oakland St. Louis Operations in 23 states 32K route miles Memphis LA 42K employees Dallas Calexico 10K customers El Paso >8K locomotives Nogales New Orleans 64K freight cars Houston Eagle Pass Capital spending $3.1 billion Laredo Brownsville 3
Marketing & Sales Organization c Agricultural Energy Industrial Premium Products (formerly “Coal”) (formerly “Industrial Products”) (formerly “Intermodal” and “Automotive”) + Fertilizer + Frac Sand + LPG – Frac Sand + Ind. Chemical + Intermodal + Wind + Petroleum + Automotive – Wind + Plastics Products + Soda Ash
UP Volume c June YTD 2018 7-Day Carloadings YTD Carloadings 2018 vs. 2017 185 2018 180 Agricultural -2.5% 175 2017 170 Energy 2.5% 165 2016 160 Industrial 4.0% 155 Premium 3.9% 150 145 TOTAL 2.8% 140 J F M A M J J A S O N D Updated 07/06/2018
Introducing Loup Your Supply Chain Powerhouse 6
Before Loup Union Pacific’s Heritage Subsidiaries UPDS Streamline Equipment, gate and drayage Transloading supply networks Logistics Door-to-door intermodal Intermodal auto parts shipping Cold Connect ShipCarsNow Insight Network Logistics Combine rail, truck and drive- away services to meet Vehicle inventory visibility automotive shipping needs from plant to dealer 7
What We Do Full-Service Meets Extensive Expertise Supply Chain Warehousing Transloading Door-to-Door Optimization Market Reach Cross-Border Shipment Just-in-Time Expertise Visibility 8
Delivering Almost Any Commodity Delivering Almost Any Traditional Rail Time Sensitive Commodity Cold Connect 13% Intermodal Bulk Auto Carload Parts 16% Q1 2018 47% Revenue … and More Intermodal Large Wholesale Intermodal 24% Wholesale 41% 9
What are we seeing in the marketplace today? A Rapidly Changing Industry 10
Key Marketplace Influencers Consumer Behavior Influences Technology Advancements Focus on Cost Management Legislation Impacts 11
Impact of ELD’s on the Market • ELD Impact Affecting Rates & Staffing Costs • Demand Expected To Continue For Foreseeable Future 12 Source: FTR May 2018
Premium Market Drivers Automotive and Intermodal Markets + + Strong economy and consumer sentiment + e-commerce growth + + ELDs and driver shortages + + Consumer preference for trucks and SUVs + ? ? NAFTA and Trans-Pacific Trade ? Flat to declining sales of finished vehicles ? ? On-going ocean carrier uncertainty ?
Intermodal Volumes Demand continues to be strong Union Pacific Terminal Lift Volumes 6,500,000 6,000,000 5,500,000 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 Full Year YTD thru Jun Data Source: TTX
̶ ̶ ̶ ̶ ̶ Driver Experience Using technology to enhance interchange - UPGO Goal Improve the Dray Driver experience by decreasing gate processing time, eliminating dry runs, and increase gate throughput. Driver and Field Feedback “This is the best thing yet to help us improve processing” -John Yettaw “My buddy was telling me about this. You can update the parking spot? I’m really excited to use it!” “We’ve made a lot of transitions, This is the best one yet.” Les - Gate tech “This is handy, it will be much faster”
How Are We Innovating? Total Supply Chain Management 16
Domestic Reload Program Reloads 40’ ocean containers Value-added service to steamships Incremental container capacity in constrained markets
Tier Auto Parts Expansion Growth beyond the big three manufacturers Target rich environment, competitive opportunity Expands availability of just-in-time market solutions
Transload SELECT CONNECT Premier provider classification Enhanced customer experience Improved competitiveness and quality
Cold Connect Developing multi-modal portfolio solutions Creating real time inventory visibility Technology enables market opportunity
Expert Solutions Welcome Home. Expanded Innovative portfolio Focus Solutions Live Here. Excellent Experience
Recommend
More recommend
