Thank you for the opportunity to visit with you about one of the oldest companies in America - Union Pacific. We have a rich history that is tied to the building of the West when Union Pacific was critical to the young nation’s growth and development.
22
Building America for more than 150 Years
Presenter
Presentation Notes
Imagine the moment, the country divided North against South. President Abraham Lincoln signs the Pacific Railway Act of 1862, establishing Union Pacific Railroad Company . The race was on – Union Pacific moving west and Central Pacific heading east. Building with their backs and bare hands, more than 20,000 men labored in the most extreme conditions and terrain. With one mighty arc, they drove the spike that anchored a vision – connect the nation. Water stops marked the route every 25 miles – the distance a steam locomotive could travel before needing to refill. And each station held the opportunity for a new community to grow, for immigrant families to settle and for commerce to flourish. Cheyenne, Wyoming ,and Reno, Nevada, are just a couple of examples of towns whose roots are tied to the original route. Through innovation and tenacity, we will continue to meet the needs of our customers, shareholders and the communities in which we live and work.
3
2014Fast Facts
Revenue: $24.0 B
Route Miles:32,000 in 23 States
Employees: 47,200
Annual Payroll: $4.6 B
Customers: 10,000
Locomotives: 8,500
Portland
Los Angeles Calexico
Seattle
Salt Lake City
Eastport
Brownsville
Houston
Omaha
TwinCities
Denver
Dallas
NogalesEl Paso
EaglePass
KansasCity St. Louis
Duluth
Laredo
Memphis
Chicago
New Orleans
Oakland
Presenter
Presentation Notes
This is a snapshot of Union Pacific today. We operate in 23 states, mainly west of the Mississippi River and serve, or run through more than 7,000 communities. As the saying goes, we are a 32,000-mile factory without a roof. This means blizzards, floods, tornadoes and hurricanes are part of our life at the railroad. Our employees are out there in the bitter cold of the Sierra Nevada and the brutal heat of the Mojave Desert. It’s certainly not your average desk job. That’s one of the reasons why we are extremely proud of our 47,200 employees.
44
2014Union Pacific in
WisconsinMiles of Track: 927
Annual Payroll: $46.6 MIn-State Purchases: $67.9 MCapital Investment: $75.2 M
Employees: 488U.S. Jobs Supported*: 2,196Charitable Organizations: 31
5
Union Pacific Hauls . . .
Presenter
Presentation Notes
The work our employees have been doing every day for the past 150 years affects the lives of nearly everyone in this country. Think about this for a minute. When you woke up this morning and turned on the lights, the electricity you used probably came from coal or wind turbines that moved on one of our trains. Before you could use your computer or television to get the news this morning, it probably moved on one of our trains. The automobile you rode in to come here today, probably rode on a Union Pacific train before you ever laid eyes on it. The food you ate for lunch, most likely was on a train, before it was on the table. Many people don’t realize the variety of products we haul.
6*In millons. Includes cash capital, leases and other non-cash capital.
Strengthening the Franchise~$4.2 Billion 2015 Capital Plan*
Presenter
Presentation Notes
Maintaining what amounts to a privately owned steel highway in top condition is an expensive proposition. After oil and gas companies, railroads top the charts as the most capital-intensive businesses today. As a matter of fact, Union Pacific spends more on its infrastructure than all but seven state highway agencies.* For 2015, our capital plan totals a record $4.2 billion. Almost half of that is replacement spending to harden the infrastructure, making the network safer and more resilient. To accomplish that, on average, we replace more than 2 miles of track and install 10,000 ties a day. On top of that, to enhance service, growth and productivity, we’ll spend $1.8 billion on capacity, commercial facilities, 218 new locomotives and equipment (800 freight cars, more than 3,500 containers and 6,500 chassis). We also plan to spend about $450 million this year to comply with the government mandate to install Positive Train Control, which is likely to cost $2 billion or so before its all done. � Union Pacific plans to invest nearly $6 million in 2015 to improve Wisconsin’s transportation infrastructure. From 2010 to 2014 Union Pacific invested $155 million strengthening Wisconsin’s transportation infrastructure. *States in order of highway spending: Texas, Pennsylvania, California, Florida, New York, New Jersey, Washington.
7
DEPOT
920
904
WESTBOUND MAINEASTBOUND MAIN
TO ST. PAUL TO ADAMS
027026
025024
023
PASS TRACK
010
008
003 002
014
032
030029
028
004 Lead + 2400 ft
R&D ~7000 ft Total011
Extend switching lead to avoid track warrants from the dispatcher
+ 2000 ft
006
001
005
007
x
EASTALTOONA
WESTALTOONA
009 3 Loco Tracks
RIP TrackMOW Set-Out Tracks
Altoona Yard ImprovementsAltoona, Wisconsin
xx
x
Legend:New ConstructionTrack RemovalPhase 2 WyeCTC Power SwitchRCL Switch
x
Wye for Turning Locomotives
Benefits:• Improve yard efficiency
• Sort cars by destination away from mainline• Have more destination groups of rail cars• Increased safety with more space between tracks
Project Description:1. Extend nine tracks2. Add five classification tracks3. Create two Receiving/Departure tracks4. Install yard air5. Build three locomotive tracks & one rail car repair track6. Construct tracks to turn locomotives around
8
Ogden Jct.
EJ&E
Global IIKedzieMP 3.6
Proviso
Eola
BRC
ElburnCoachYard
PeckMP 38.20
KressMP 32.10 Park
MP 15
ValeMP 10
Coach Yard
Global I
ProvoJct.Turner
MP 29.5
Riv
er
Fore
st
Oak
Pa
rk
May
wo
odMel
rose
Pa
rk
Bellw
ood
Berk
eley
Elm
hur
st
Villa
Pa
rk
Lom
bard
Gle
n El
lyn
Col
lege
Av
e
Whe
aton
Win
fiel
d
W.
Chi
cag
o
Gen
eva
La F
oxElburnMP 44.00 West
Chicago
MP 24.5MP 19.4 Melrose Park
MP 11.3
UP/Metra West Line Project$165 million, split 50/50
Ogilvie
CostProject Elements $MM Comments1) Station and Safety upgrades $24 Wheaton / Lombard improvements remain2) Signal System modernization $20 Operational in July 20113) 2 new Universal Crossovers $32 Lombard-June 2015, Wheaton-Apr 20154) 3rd ML construction $89 Design 2015, Construction 2016-17
$165
9
Ogden Jct.
KedzieMP 3.6
Proviso/Global II
BRC
ElburnCoachYard
PeckMP 38.2
KressMP 32.1
ParkMP 15
ValeMP 10 Coach
Yard
ProvoJct.Turner
MP 29.5 Oak
Pa
rk
May
wo
od
Mel
rose
Pa
rk
Bellw
ood
Berk
eley
Elm
hur
st
Villa
Pa
rk
Lom
bard
Gle
n El
lyn
Col
lege
Av
e
Whe
ato
n
Win
fiel
d
W.
Chi
cag
o
La F
oxElburnMP 44.00 West
Chicago
MP 24.5
MP 19.4
Melrose ParkMP 11.3
Gen
eva
Riv
er
Fore
st
• Remove 2 critical bottlenecks (gaps)
• Fluid movement between Elburn – Kedzie Unrestricted use of all 3 tracks for the full distance 50% reduction in freight train idling time 10% reduction in train delay, 11% reduction in “gate down” time
• Critical Incident Recoverability 57% delay recovery improvement from a major outage (crossing accident, broken rail etc.) 10% On time performance improvement on days with an outage
1.6 mile gap6.2 mile gap
UP/Metra West Line Project3rd Main Track benefits
Ogilvie
10
Key Areas of Focus in 2015• Construction of the South St. Paul Yard Improvements• Design of the Geneva Subdivision 3ML with Metra• CREATE Program 75th Street Corridor Improvement Project - $75 million for Design• Westminster Trench – St. Paul, MN• Terminal Railroad Association - Merchants Bridge Project – St. Louis, MO• Construction of the CREATE B1 Project
11
Safety is Top Priority
Reportable Derailments Per Million Train Miles
2004 20142004 2014Reportable Injuries
Per 200,000 Employee Hours
44%EMPLOYEE
38%DERAILMENT
12%PUBLIC
2004 2014Grade Crossing Accidents
Per Million Train Miles
GOOD
1.75
0.98
4.80
3.00
2.672.34
Presenter
Presentation Notes
There are additional benefits railroads bring to the communities beyond the goods we haul. Not only is rail the safest mode of transportation, it is one of the safest industries. At Union Pacific we have a diligent focus on three key areas -- employee, customer and public safety. We have reduced employee reportable injuries by 44 percent over the last 10 years. Our goal is to send everyone home safely, every day. At a minimum, we need to set annual records on the way to zero. To achieve the 38 percent reduction in reportable derailments of customer goods, UP employs state-of-the art technology. � In the area of public safety, we’ve experienced a 12 percent reduction in crossing accidents. �
1212
1/2V E H I C L E - T R AI N C O L L I S I O N S C U T I N
OVER THE PAST 20 YEARS
Presenter
Presentation Notes
The area you are probably most interested in is public safety. U.S. government statistics show that vehicle-train collisions at highway-rail intersections have been cut in half over the past 20 years. UP has more crossings than any other U.S. railroad. (31,300 crossings on our system, including almost 11,000 equipped with gates.) We concentrate on three areas -- education, enforcement and engineering. UP employees are actively involved in Operation Lifesaver – a non-profit organization dedicated to public education about safety at railroad crossings and around railroad property. Together, our presentations were given to more than 600,000 people in 2014. Also in 2014, UP held 13,600 CARES-related events across the country. CARES stands for Crossing Accident Reduction Education and Safety. During CARES events, law enforcement officers and media are invited to ride trains to get a first-hand look at unsafe activity around crossings. At the same time, Union Pacific volunteers provide rail safety presentations to the general public, including school children, truck and bus drivers, and law enforcement officers. Our engineering team continues to research and apply innovative techniques to improve the safety of railroad crossings. And new video cameras and event recorders (black boxes) are now on 90 percent of our lead locomotives. They monitor crew performance and train handling, as well as vehicle driver behavior around crossings. 90 percent of our lead locomotives have train image recorders (TIRs). From 1980 through 2012, the rail industry's number of grade crossing collisions fell 82 percent. A 100-car train going 55 mph takes a mile to stop. States evaluate public crossings and decide what type of warning devices to install.
13
Wisconsin International Trade Conference
Wes Lujan
May 7th, 2015
Assistant Vice President, Public Affairs
Presenter
Presentation Notes
Thank you for the opportunity to visit with you about one of the oldest companies in America - Union Pacific. We have a rich history that is tied to the building of the West when Union Pacific was critical to the young nation’s growth and development.
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