UP

“The Union Pacific team concluded its most profitable year ever in 2021,” UP Chairman, President and CEO Lance Fritz said during a Jan. 20 earnings announcement. “We produced double-digit fourth-quarter revenue growth by leveraging our great rail franchise to generate positive business mix and core pricing gains, despite ongoing global supply chain challenges that impacted volumes.”

UP’s Fritz: 2021 ‘Most Profitable Year Ever’ (UPDATED)

Union Pacific (UP) on Jan. 20 reported fourth-quarter 2021 results, including operating revenue of $5.733 billion, up 12% from the same period in 2020 and 10% from 2019. This was driven by “higher fuel surcharge revenue, a positive business mix, and core pricing gains,” which were partially offset by a 4% decrease in business volumes, as measured by total revenue carloads. The Class I railroad also posted results for full-year 2021, which Chairman, President and CEO Lance Fritz called the “most profitable year ever.”

Union Pacific will be Schneider’s primary intermodal rail provider in the western U.S., starting in January 2023.

UP Lands Schneider Business

Schneider has signed a long-term agreement with Union Pacific (UP) to be its primary intermodal rail provider in the western U.S., effective January 2023, the companies reported on Jan. 19.

Recent cargo thefts from UP trains have left the railroad’s property littered with debris.

For UP, Cargo Thefts Spike in L.A. County

Following a recent spike in cargo thefts from its trains in Los Angeles County, Union Pacific (UP) has not only increased the number of special agents assigned to protect targeted areas, but also contacted L.A. County District Attorney George Gascón for support.

UP-Served Savage Gulf Rail Facility Opens

A grand opening was held earlier this month for the Savage Gulf Rail Facility, which supports the plastics manufacturing joint venture of ExxonMobil and SABIC in San Patricio County, Tex.

Commentary

Reciprocal Switch Peril Grows

No two words torment railroad executives and their investors more than “reciprocal switching”—a potential Surface Transportation Board (STB) decree that a railroad with sole physical access to a shipper facility transfer (switch) a shipper’s cars to a junction point with a second (competing) railroad. The second railroad pays a compensatory per-car switching fee whose reasonableness is determined by the STB.

UP Taps Miller as VP, Treasurer

Michael Miller, a 28-year Union Pacific (UP) veteran, has been appointed Vice President and Treasurer, effective Feb. 1, 2022, succeeding Gary Grosz.

UP Issues Climate Action Plan

Union Pacific (UP) on Dec. 6 published a 2021 Climate Action Plan addressing its efforts to reduce greenhouse gas (GHG) emissions.

STB Eyes Private Railcar Rulemaking

The Surface Transportation Board will consider a proposal by private railcar owners to adopt regulations updating the demurrage and accessorial rules governing the railroads’ use and handling of their equipment.

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