Union Pacific Intermodal transportation will be promoted through capital investment and a program aimed at encouraging loaded outbound international containers, according to comments made by company executives at UP’s fourth quarter 2021 earnings briefing on Thursday. I’m trying to strengthen it.
UPS (NYSE: UNP) The targeted support of that intermodal franchise comes as a company announcement This week will be Schneider National’s intermodal career (NASDAQ: SNDR) An intermodal business in the western United States that started in January 2023. UP too I have a contract with Knight-Swift ((((NYSE: KNX) We will move the intermodal container from this year.
Corporate leaders said they were optimistic about UP’s domestic intermodal franchise, but the international intermodal segment is experiencing slow marginal growth.
To support the intermodal franchise, UP invested in intermodal lamps in 2022, Twin Cities Terminal From pop-up terminals to full terminals, we’ve put together a multi-year project to add capacity to Inland Empire’s pop-up intermodal terminals and install wide-span gantry cranes at Chicago’s G4 intermodal terminals.
These investments are part of the 2022 UP $ 3.3 billion capital spending plan. The capital investment plan also requires the acquisition of freight cars, investment in capital projects to carry more cargo to the network, completion of about 20 sidings, and locomotive upgrades. To Eric Gehringer, Executive Vice President of Operations for UP.
UP expects its bulk and industrial volumes to support the first half of 2022, but the second half of this year will be further driven by premium volumes as supply chain conditions and chip shortages improve. UP’s premium segment includes intermodal and automotive volumes.
Signs that UP is looking for that point to improve supply chain flow are improved chassis and box street time, and international intermodal to bring the box inland and return it “preferably for export” to outbound. Customers are included. CEO Lance Fritz.
Meanwhile, the partnership with Knight-Swift and Schneider offers customers more options, said Kenny Rocker, Executive Vice President of Marketing and Sales at UP.
The partnership gives UP “the opportunity to densify many networks and actually implement many intermodal excellence initiatives,” Rocker said. “Looking at our IMC we have on our equipment, as there is a great combination to provide private asset players on our network and players who use our equipment. I feel it. “
Union Pacific’s fourth quarter 2021 financial results
UP’s net income increased 24% year-over-year, as a 12% increase in operating revenue offset a 5% increase in operating expenses and a 4% decrease in volume.
Fourth-quarter 2021 net income was $ 1.7 billion, or $ 2.66 per diluted share, while adjusted fourth-quarter 2020 net income was $ 1.6 billion, or $ 2.36 per diluted share. was. $ 278 million in pre-tax, non-cash impairment related to adjusted net income account UP for the fourth quarter of 2020 Brazosyard plan changes In Texas.
Operating revenue increased 12% to $ 5.7 billion and freight revenue increased 10% to nearly $ 5.3 billion. Operating expenses increased 5% to nearly $ 3.3 billion due to higher fuel costs.
Overall trading volume fell 4% in the fourth quarter, but no overall decline was seen across UP segments. Bulk quantities increased by 5% and industrial doses increased by 8%, while premium quantities decreased by 4% due to reduced quantities of automotive products and intermodals.
In 2021, there were many events that affected operational and network liquidity, such as wildfires and supply chain congestion, but UP “finished the year in a more fluid state,” Gehringer said. I am saying.
According to Geringer, crew availability improved in the fourth quarter and operations in the southeastern United States became more liquid, but bulk volume liquidity has not yet reached the level of UP expectations. Hmm.
“The Union Pacific team concludes 2021 with the most profitable year to date. Despite the ongoing global supply chain challenges that impact volume, we leverage our superior rail franchise. Revenues grew by double digits in the fourth quarter by creating a positive business mix and rising core prices, Fritz said in a release: “Improved fuel consumption and carbon dioxide emissions for the third consecutive year. And took steps to meet the goals of the 2021 Climate Action Plan.
“The 2021 safety and operational performance did not meet expectations, but we aim to translate recent advances into sustainable improvements in 2022. We are uncertain about COVID variations and supply chain disruptions. Despite its sexuality, 2022 will see a positive demand environment and continued driving force from the business. Development efforts to drive growth by providing value to all stakeholders. “
Union Pacific Railroad Strengthens Intermodal Infrastructure in Midwestern California
https://www.freightwaves.com/news/union-pacific-will-beef-up-intermodal-infrastructure-in-california-midwest Union Pacific Railroad Strengthens Intermodal Infrastructure in Midwestern California