Letter to Stakeholders
Union Pacific’s sustainability story began when Abraham Lincoln signed the Pacific Railway Act of July 1, 1862.
We take seriously our role in the nation’s economy to provide a safe, reliable, fuel-efficient and environmentally responsible mode of transporting the goods Americans use every day. As we celebrate 150 years in 2012, we acknowledge our past and recognize the importance of planning for future generations of railroaders, customers and the communities where we live and work.
Our growth strategy is to provide customer value, and part of that equation is ensuring our customers’ sustainability efforts are enhanced by using rail. In fact, many customers highlight rail as a key element of their own supply chain sustainability metrics.
A cornerstone of Union Pacific’s growth and sustainability platforms is our record level of capital investment, reflecting our commitment to providing efficient and responsible freight transportation. This year alone we expect to spend $3.6 billion on capital projects, planning years in advance as we build UP’s rail network to meet the growing needs of our 10,000 customers and help them compete in the global marketplace. These projects - such as Colton Crossing in Southern California and our Santa Teresa, N.M., intermodal and fueling facility - frequently include positive social and economic impacts on communities.
Hiring is part of our growth story. Based on anticipated attrition rates and business growth, Union Pacific expects to hire roughly 4,000 people in 2012. This is in addition to the 4,500 employees we hired in 2011. These are good-paying, American jobs - and the Association of American Railroads estimates that every railroad job supports another 4.5 jobs elsewhere in the economy.
Technology is important to our sustainability efforts and Union Pacific leads the way with many technology firsts. We developed and implemented the industry’s only ultrasonic wheel crack detection system, allowing us to find flaws in rail car wheels before they reach the surface.
Not a single train has derailed from a cracked wheel since we started using this technology two years ago. Another way our technology keeps trains operating safely is through the 4,000 wayside signal detectors we deploy, which process 40 million data points per day from our trains and identify known historical failure patterns in wheels.
Union Pacific’s innovation plays a key role in making rail the most environmentally responsible form of ground freight transportation. We pioneered Genset switching locomotive technology that reduces greenhouse gas emissions by as much as 37 percent compared to older switching locomotives. Gensets are now operated by railroads around the world, and the EPA recognized our efforts with a Clean Air Excellence Award in 2011. Union Pacific was the first railroad to use video gaming technology to develop video simulation training. This technology provides employees with a solid understanding of how to operate remote control yard locomotives or inspect rail cars before they set foot in a rail yard, creating a safer environment and a more effective training process. We even made this technology available to other railroads.
Our sustainability efforts align with the Global Reporting Initiative’s definition of sustainable development, which is meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Looking to the future certainly was on President Lincoln’s mind when, at the height of the Civil War, he sought a way to connect and secure the great expanse of our nation. Our challenge today is to envision the possibilities of what tomorrow could be. I can’t think of a better way to honor our founder or to create a sustainable future.
Jack Koraleski
President and CEO
