SLIDE 1
Los Angeles Transportation Club
Shawntell Kroese
July 2018
Vice President – Loup
Agenda
Union Pacific Update Loup Introduction Key Market Influencers Innovation At Loup Q&A Session
2
Los Angeles Transportation Club Shawntell Kroese Vice President - - PowerPoint PPT Presentation
Los Angeles Transportation Club Shawntell Kroese Vice President - - PowerPoint PPT Presentation
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
SLIDE 2
SLIDE 3
Portland LA Calexico Seattle Salt Lake City Eastport Brownsville Houston Omaha Twin Cities Denver Dallas Nogales El Paso Eagle Pass Kansas City
- St. Louis
Duluth Laredo Memphis Chicago New Orleans Oakland
3
Union Pacific
2017 Fast Facts
143 on Fortune 500
Freight revenue $19.8 billion Operations in23 states
32K route miles 42K employees 10K customers >8K locomotives 64K freight cars
Capital spending $3.1 billion
c
SLIDE 4
Marketing & Sales Organization
Agricultural Products Energy
(formerly “Coal”)
Industrial
(formerly “Industrial Products”)
Premium
(formerly “Intermodal” and “Automotive”)
+ Fertilizer + Frac Sand + Wind + LPG + Petroleum Products + Intermodal + Automotive – Frac Sand – Wind + Ind. Chemical + Plastics + Soda Ash
c
SLIDE 5
140 145 150 155 160 165 170 175 180 185 J F M A M J J A S O N D
7-Day Carloadings
2.8% 3.9% 4.0% 2.5%
- 2.5%
TOTAL Premium Industrial Energy Agricultural
YTD Carloadings
2018 vs. 2017
UP Volume
June YTD 2018
Updated 07/06/2018
2018 2017 2016
c
SLIDE 6
Introducing Loup
Your Supply Chain Powerhouse
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SLIDE 7
Before Loup
7
Union Pacific’s Heritage Subsidiaries
Logistics Transloading Intermodal auto parts shipping Equipment, gate and drayage supply networks Door-to-door intermodal Combine rail, truck and drive- away services to meet automotive shipping needs Vehicle inventory visibility from plant to dealer
UPDS ShipCarsNow Streamline Insight Network Logistics
Cold Connect
SLIDE 8
What We Do
8
Full-Service Meets Extensive Expertise
Supply Chain Optimization Warehousing Transloading Door-to-Door Just-in-Time Cross-Border Expertise Shipment Visibility Market Reach
SLIDE 9
Delivering Almost Any Commodity
… and More
9
Auto Parts
47%
Intermodal Wholesale
24%
Carload
16%
Cold Connect
13%
Intermodal Wholesale
41% Q1 2018 Revenue
Bulk Intermodal Traditional Rail Time Sensitive
Delivering Almost Any Commodity
Large
SLIDE 10
What are we seeing in the marketplace today?
A Rapidly Changing Industry
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Key Marketplace Influencers
11
Consumer Behavior Influences Technology Advancements Focus on Cost Management Legislation Impacts
SLIDE 12
Impact of ELD’s on the Market
- ELD Impact Affecting Rates & Staffing Costs
- Demand Expected To Continue For Foreseeable Future
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Source: FTR May 2018
SLIDE 13
+ 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
Premium Market Drivers
Automotive and Intermodal Markets
+
?
+ + +
? ?
SLIDE 14
Intermodal Volumes
Demand continues to be strong
2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 5,500,000 6,000,000 6,500,000
Union Pacific Terminal Lift Volumes
Full Year YTD thru Jun Data Source: TTX
SLIDE 15
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
- ne yet.” Les - Gate tech
̶ “This is handy, it will be much faster”
Driver Experience
Using technology to enhance interchange - UPGO
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How Are We Innovating?
Total Supply Chain Management
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SLIDE 17
Domestic Reload Program
Reloads 40’ ocean containers Value-added service to steamships Incremental container capacity in constrained markets
SLIDE 18
Tier Auto Parts Expansion
Growth beyond the big three manufacturers Target rich environment, competitive opportunity Expands availability of just-in-time market solutions
SLIDE 19
Premier provider classification Enhanced customer experience Improved competitiveness and quality
Transload
SELECT CONNECT
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Cold Connect
Developing multi-modal portfolio solutions Creating real time inventory visibility Technology enables market opportunity
SLIDE 21
Expanded portfolio Innovative Focus Expert Solutions Excellent Experience