Economic Impact

Thomas Price, manager-special projects

Delivering Value to Our Customers

We help our customers' goods reach their destinations safely, efficiently and effectively. Part of delivering on that is maintaining open lines of communication.

Customers have multiple means of communicating directly with Union Pacific, including our National Customer Service Center and sales professionals. These one-on-one conversations ensure individual concerns can be appropriately handled.

Customers access to various automated tools through our online, secure MyUPRR portal. Customers use this site to trace and release equipment, report and revise service issues, and subscribe to automated railroad updates.

Through the subscription service, customers receive emails containing critical news such as service interruptions, pricing changes, embargoes, holiday operating plans, weather events and general service updates.

We measure customer engagement through our ongoing Customer Satisfaction Survey. By actively seeking feedback from customers, we are able to understand and address customer concerns.

Investing in the Future

Capital is critical to strengthening Union Pacific's operations. As a company that has been around for more than 150 years, we know that investing for the future is important to ensuring the long-term success of Union Pacific as a strong and competitive company. In 2014, we invested $4.1 billion to renew system infrastructure and support growth. This helps ensure our railroad and heritage live on for another 150 years. Some key investments we made included:

  • 261 new locomotives
  • 880 miles of rail – more than twice the length of Kansas
  • Terminal and facility upgrades
  • Completion of the Santa Teresa intermodal and fueling facility in New Mexico

Financial Performance

For the full year 2014, Union Pacific reported net income of $5.2 billion or $5.75 per diluted share. This compares to $4.4 billion, or $4.71 per diluted share, in 2013, 18 and 22 percent increases, respectively. Operating revenue totaled a record $24.0 billion versus $22.0 billion in 2013. Operating income totaled $8.8 billion, an 18 percent increase over 2013.

$4.1 BILLION CAPITAL* In Millions

Sustainability Report 2015 - Economic Impact Capital Plan

*Includes cash capital, leases and other non-cash capital (excludes buyout of lease on Headquarters building)

Indirect Economic Impacts

Union Pacific's Role in America's Energy Renaissance

In today's evolving landscape, the world's energy needs are being met through a diverse portfolio of traditional and non-traditional sources. Union Pacific works to ensure uninterrupted energy delivery to help foster a strong, stable and resilient economy.

According to the International Energy Agency, the United States may soon pass Russia and Saudi Arabia as the world's top oil producer. This production has helped support an energy renaissance that is creating jobs and lowering costs for consumers at the pump. Union Pacific, along with other U.S. and Canadian railroads, is playing a significant role in helping this revival.

Throughout its history, Union Pacific has been a critical part of the energy infrastructure, hauling commodities including coal, ethanol, wind turbines and solar panels. With the increase in crude production, railroads offer the safest mode of land transportation for hazardous materials, delivering it safely 99.997 percent of the time, according to the Association of American Railroads.

Sustainability Report 2015 - Economic Impact Santa Teresa

Forget Disneyland: I'm Going To Santa Teresa

A year after Union Pacific's intermodal terminal and locomotive fueling facility officially opened in April 2014, Santa Teresa has become one of the state's hottest industrial areas, building upon the momentum that began when the railroad started planning the new facility years earlier.

Jerry Pacheco, who operates the Border Industrial Association (BIA), which represents the industrial base from Santa Teresa to Las Cruces, New Mexico, calls it the "Disneyland Effect."

"Think about all the businesses that popped up around Disneyland," he said. "The curio stores, the T-shirt shops, the gas stations – they're not associated with Disneyland, but they want to be there because it's an attractive place to be."

When it comes to Santa Teresa, there are two Disneylands. One is the Union Pacific facility; the other is computer maker Foxconn, whose factory sits on the other side of the Mexican border just a few miles away.

"We're sandwiched between these industrial zones, between these two projects that have attracted international attention," Pacheco said. "If your company is here, you get superior logistics. You have the capability of doing business on the other side of the border. There's no better place to be, and that's the Disneyland concept."

To prove his point, Pacheco rattled off a list of companies that have either been established or grown since Union Pacific announced its Santa Teresa facility, including:

  • Twin Cities Services, a container hauler and storage company
  • Transmaritime Inc., a transloader and warehouse facility
  • ERO Intermodal Services, a company that maintains and repairs truck chassis and containers that also supplies partsvfor heavy equipment
  • The Santa Teresa Southern Railroad, a private railroad thatvconnects businesses with Union Pacifc's main line
  • Stagecoach Cartage and Distributing, a 10-acre transload,vwarehousing and drop yard
  • W Silver Recycling, which will use rail to transport recycled metals,
  • CN Wire Corporation, which opened a 258,000-square-foot facilityvthat employs 300

And, of course, Penny's Diner and the Oak Tree Inn, which sits in the center of the industrial park. "We've got everything from warehousing to logistics and manufacturing," Pacheco said, "all located within seven or eight miles of the Union Pacific facility."

He said Santa Teresa boasts more than 3.3 million square feet of industrial space, but a year after Union Pacific moved its container business from east El Paso to the new Santa Teresa facility, only 8,000 square feet remained available.

"Union Pacific gave us the opportunity not only to recruit existing businesses that came from El Paso, it allowed us to bring in new regional business," Pacheco said. "We've got a little over 3,000 people working in these parks. Not too long ago, that number was between 1,200 and 1,500, so we've more than doubled the jobs."

Even more dramatic changes could be on their way with the creation of the Westpark Logistics Center, a 166-acre development christened just last month. One of the largest industrial parks in New Mexico – and the closest to Union Pacific's intermodal facility – Westpark's first tenant will be MCS Industries, a U.S. picture frame manufacturer.

"Companies ask me, 'What's my investment going to be worth in 10 years?'" Pacheco said. "Well, it's going to be worth quite a bit because this is a hot place, and if you buy in early and you build your plant here, you're going to be in a sweet, sweet position. The value's not going to go down, and we have so much room around Union Pacific, there's still plenty of time to come in and set up your plant."

Attracting more business to rail also offers environmental benefits. According to the U.S. Environmental Protection Agency, freight trains are nearly four times more fuel efficient than trucks.

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