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

Los Angeles Transportation Club

Eric Butler - April 3, 2012

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

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Positioned for Growth

A Wide Range of Opportunities

CONSUMER CONSUMER

• Consumer goods
• Construction materials
• Industrial materials
• Autos

Pl ti FOOD ENERGY

• Coal
• Plastics
• Food/Refrigerated

Coal

• Ethanol
• Wind Turbines
• Shale Oil

Food/Refrigerated

• Whole grains
• Grain products

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The UP Value Proposition

Best Franchise

Seattle Eastport Portland Omaha Twin Cities Duluth/ Superior Oakland Los Angeles Calexico Memphis Denver Dallas

• St. Louis

Salt Lake City Kansas City Calexico Nogales El Paso Eagle Pass Laredo Brownsville Houston New Orleans Dallas

• Diverse Business Mix
• Fastest Growing States

The Best Franchise in the Industry The Best Franchise in the Industry

• Port Access
• Border Crossings

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The UP Value Proposition

Strategic Investment : ~17% to 18% of Revenue Annually

$15 Billion in 5 Years $37 Billion Since 1999

$3.1 $ $3.2 $3.6 $2.5 $2.6

Strategic Investments Strategic Investments The Best Franchise in the Industry The Best Franchise in the Industry

2008 2009 2010 2011 2012 E

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2012 Capital Plan

Replacement, Growth & Productivity

$1 908 $1 920

2012 vs. 2011 Capital*

($ In Millions)

• $3 6+ Billion in 2012

$1,908 $1,920 $1,345

• $3.6+ Billion in 2012
• Safe and Resilient

Infrastructure

$1,084 $160

Infrastructure

• Increased Capacity

Spending

$224 $335 $160

2012 2011

• 200 New Locomotives
• Increased PTC Spend

2012 2011 2012 2011

Replacement Growth & Productivity PTC

2012 2011

p

2012 2011 2012 2011

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*Includes cash capital, leases and other non-cash capital

Sunset Corridor Investment

Sunset Corridor

Sunset Corridor Investment

• Continue Double Track

Kansas City

• St. Louis

Chicago

Omaha SLC Denver

Joliet

– Over 70% completion in 2012

• Build Santa Teresa

LA El Paso

• Ft. Worth

San Antonio Tucson Yuma Memphis

Shreveport

Terminal

– Fueling facility and new intermodal ramp

Eagle Pass Houston San Antonio New Orleans

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• Expand LA Basin

Yuma Tucson El Paso Phoenix West Colton LA

Santa Teresa, NM Graded Ahead

Basin

Double Track 8

Union Pacific Does Not Provide Earnings Guidance. Information is Part of a Range of Planning Scenarios

LA Basin Investment

LA Basin

LA Basin Investment

• Colton Flyover

State Federal UP & BNSF

To Lathrop / Portland To Yermo via BNSF

– State, Federal, UP & BNSF participation

• Alhambra Sub Double Track

Burbank Jct

BNSF / UP

SCRRA To Coast Line

Alhambra Sub

Saugus Line

Cit f LATC

Yuma Sub

Alhambra Sub DT Colton Flyover LATC Intermodal Expansion

UP / BNSF

Alhambra Sub Double Track

– Working towards full double track between Pomona and West Colton

Riverside

Alameda Corridor

Los Angeles Sub

To El Paso

City of Industry BNSF Hobart East LA

West Colton Terminal

• LATC Intermodal Expansion
• West Colton Terminal

ICTF Dolores Port of Long Beach Port of Los Angeles

Enhancements

Enhancements

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Union Pacific Does Not Provide Earnings Guidance. Information is Part of a Range of Planning Scenarios

The UP Value Proposition

Excellent Service

AAR Velocity

Excellent Service

26.2 26.4 25.7 26.5 26.2 26.1 24.6 25.6 26.4

AAR Velocity

(MPH)

Midwest Flooding/ Texas Drought

Excellent Service Excellent Service

2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* 2011 2012

Strategic Investments Strategic Investments

• Recovered from 2011’s

Weather Challenges

The Best Franchise in the Industry The Best Franchise in the Industry

• Positioned for Growth

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* Through 3/23

The UP Value Proposition

Innovative Products

• Produce Railexpress

Innovative Products Innovative Products

• Plant to Port
• Vehicle co loading

Excellent Service Excellent Service

• Vehicle co-loading
• Crude Oil Trains

Strategic Investments Strategic Investments

• Wind distribution centers

C C ti

The Best Franchise in the Industry The Best Franchise in the Industry

• Copper Connection

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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

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The UP Value Proposition

Strong Relationship

Strong Relationships Strong Relationships Innovative Products Innovative Products Excellent Service Excellent Service Strategic Investments Strategic Investments The Best Franchise in the Industry The Best Franchise in the Industry

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Focusing On Creating Value for Customers

Union Pacific’s Value Proposition Union Pacific s Value Proposition

Strong Relationships Strong Relationships

92 92 Overall Customer Satisfaction

Innovative Products Innovative Products

79 83 88 89 92 92 GOOD

Excellent Service Excellent Service

64 72

Strategic Investments Strategic Investments The Best Franchise in the Industry The Best Franchise in the Industry

2005 2006 2007 2008 2009 2010 2011 2012 J/F

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Focusing on Creating Value for Customers

Supplier Customer Service On-Time Service President’s Award for Rail Carrier Rail Carrier Supplier

• f the Year

President s Award for Logistics Excellence Rail Carrier

• f the Year

Rail Carrier

• f the Year

Rail Carrier of the Year Rail Carrier of the Year North America Supplier of the Year Intermodal Carrier of the Year Carrier of the Year Supplier of the Year S f Intermodal Carrier of the Year Carrier of the Year Supplier of the Year C f

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Supplier Excellence Award Vendor of the Year Carrier of the Year

Working Together to Grow

• Effective communication

t th supports growth – yours and ours!

Workforce

(6-9 months)

• Resourcing today for

future growth

Main Lines

(18-36 months)

– Long lead times for resource additions

Freight Cars

(12 months)

– Permitting challenges

Terminals Locomotives

(12 months) 16 16

Terminals

(18-36 months)

Union Pacific . . .

• Focusing on creating

customer value

• Providing excellent

customer service

• Investing for growth

Offering a wide range

• Offering a wide-range
• f options and support

Working together to

• Working together to

grow

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