Status of the Railroad - A Message from Kenny Rocker, EVP, Marketing & Sales
Announcement Number: CN2024-28
Categories: General Announcements
Posted Date: September 25, 2024
To Our Customers,
One of my favorite aspects of my role here at Union Pacific, is engaging with our customers and understanding how we can best meet your needs. I was thrilled to meet with many of you at our Bulk and Premium executive forums, and I look forward to connecting with many of you on the Industrial side next month. Earlier this month, I had the opportunity to discuss our growth strategy with our regulatory and investor communities. Our customers are at the center of this strategy, and Union Pacific is committed to delivering the safe and reliable service we sold you, investing in our network, and innovating with technology and new product offerings to better serve you.
In 2023, we spent $3.7 billion on infrastructure, including renewal, equipment, technology, and network expansion. This equates to investing about $10 million per day. Over the past five years, we have invested $3.4 billion specifically on long-term growth projects. These initiatives have allowed us to introduce nine new intermodal service products and add 11 new lanes out of Port Houston. On the carload side, we have extended our reach through industrial parks and transload sites. We’ve also deployed and enhanced our suite of Application Program Interfaces (APIs) and will soon roll out Customer Vision to improve visibility, allowing you to better manage your shipments.
Our volumes are strong and while service metrics are solid, we recognize there are pockets of opportunity. Notably, we have seen progress in the Southern region. However, service into Mexico with Ferromex remains a challenge. Union Pacific continues to collaborate with Ferromex across all levels of the organization, with daily meetings between senior operating personnel and regular executive operating committee meetings. Additionally, we are working to improve fluidity, facilitate smoother crossings, and reduce congestion at the border.
Service Metrics:
- Freight car velocity – 213 miles per day
- Train Velocity – 19.1 miles per hour
- Terminal Dwell – 21.7 hours
Thank you for choosing Union Pacific as your trusted transportation provider. We truly appreciate your business and are excited about the opportunity to grow together.
Sincerely,
Kenny Rocker
Executive Vice President, Marketing & Sales