Price Announcement: Construction Products - January 1, 2013
Announcement Number: IP2012-35
Categories: Construction Products
Posted Date: November 27, 2012
Union Pacific has a proven commitment to enhance our rail network and support growth in our business, investing $15 billion in the last 5 years and an anticipated record $3.6 billion in 2012. Customers across the network - in all lines of business - benefit from these investments in safety, service, growth and productivity.
Approximately half of the investment in 2012 is being spent to harden our rail infrastructure, making the network safe and resilient. Spending for service, growth and productivity will total over $1 billion dollars, with major projects including additional double track on the Sunset Corridor and the Blair Project to improve transit across our Central Corridor, as well as numerous new sidings throughout the PNW, and various projects in the South to improve capacity and velocity. This year, we're also planning to acquire 200 new road locomotives, and close to 1,600 freight cars. These equipment acquisitions not only serve as replacements for older, less efficient assets but are also to meet expected business growth.
Maintaining service excellence and building capacity for your future growth is critical to us, however, like most companies, we also have a responsibility for the investments we make in our network. As a result, we must review our transportation rates and make adjustments where necessary to ensure we are generating a fair return on that investment for our shareholders.
Effective January 1, 2013, Union Pacific Railroad will be making adjustments to the following Construction Products rate documents reflective of current market conditions.
UPRR 3241 - Cement will increase by an average of 4% - 6%. Individual rate increases will vary on a lane by lane basis.
UPRR 3295 - Fly Ash, Slag, Gypsum, Pumice, Calcined Plaster, and various other construction products will increase by an average of 4% - 6%. Individual rate increases will vary on a lane by lane basis.
UPRR 3251 - Brick & Concrete Products will increase by an average of 4%. Individual rate increases will vary on a lane by lane basis.
Rates currently maintained in UPRR 9001 (Boxcars), UPRR 9002 (Covered Hoppers), UPRR 9003 (Flatcars), UPRR 9004 (Gondolas), and UPRR 9005 (Open Top Hoppers) will be reissued at market rate levels.
If you have any questions please contact your Union Pacific representative.