Los Angeles Transportation Club Eric Butler - April 3, 2012 1 - PowerPoint PPT Presentation

Los Angeles Transportation Club Eric Butler - April 3, 2012 1

Building America… for 150 Years! Building America… for 150 Years! Lincoln signs Pacific Rail Act in 1862 Lincoln signs Pacific Rail Act in 1862 g 2

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

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

The UP Value Proposition Strategic Investment : ~17% to 18% of Revenue Annually $15 Billion in 5 Years $37 Billion Since 1999 $3.6 $3.2 $3.1 $ $2.6 $2.5 Strategic Strategic Investments Investments The Best The Best Franchise in Franchise in 2008 2009 2010 2011 2012 E the Industry the Industry 6

2012 Capital Plan Replacement, Growth & Productivity 2012 vs. 2011 Capital* ($ In Millions) • $3 6+ Billion in 2012 • $3.6+ Billion in 2012 $1 908 $1 920 $1,908 $1,920 • Safe and Resilient Infrastructure Infrastructure $1,345 $1,084 • Increased Capacity Spending $160 $160 • 200 New Locomotives $335 $224 • Increased PTC Spend p 2011 2011 2012 2012 2011 2011 2012 2012 2011 2011 2012 2012 Replacement Growth & PTC Productivity *Includes cash capital, leases and other non-cash capital 7

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

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

The UP Value Proposition Excellent Service Excellent Service AAR Velocity AAR Velocity Midwest Flooding/ (MPH) Texas Drought 26.5 26.2 26.4 26.4 26.2 26.1 25.7 25.6 24.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Excellent Excellent 2010 2011 2012 Service Service • Recovered from 2011’s Strategic Strategic Weather Challenges Investments Investments • Positioned for Growth The Best The Best Franchise in Franchise in the Industry the Industry * Through 3/23 10 10

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

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

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

Focusing On Creating Value for Customers Union Pacific s Value Proposition Union Pacific’s Value Proposition Overall Customer Satisfaction Strong Strong Relationships Relationships 92 92 92 92 89 88 GOOD 83 Innovative Innovative 79 Products Products 72 Excellent Excellent 64 Service Service Strategic Strategic Investments Investments The Best The Best Franchise in Franchise in 2005 2006 2007 2008 2009 2010 2011 2012 the Industry the Industry J/F 14 14

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

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

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