2012 Leadership Conference xxxxxxxxx - Union Pacific 0 50 100 150 200 Fertilizer Demand * Publicly...
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1 RailTrends November 21, 2014 Brad Thrasher, VP & General Manager Industrial Products 2 7% 1% 4% 4% 9% 11% 13% TOTAL Chemicals Coal Autos Intermodal Industrial Agricultural 2014 vs. 2013 YTD Carloadings 140 150 160 170 180 190 200 210 J F M A M J J A S O N D 7-Day Carloadings 2013 2006 2007 2011 2012 2010 2008 2009 2014 UP Volume 2014 thru October
Transcript of 2012 Leadership Conference xxxxxxxxx - Union Pacific 0 50 100 150 200 Fertilizer Demand * Publicly...
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RailTrends November 21, 2014
Brad Thrasher, VP & General Manager Industrial Products
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7%
1%
4%
4%
9%
11%
13%
TOTAL
Chemicals
Coal
Autos
Intermodal
Industrial
Agricultural
2014 vs. 2013 YTD Carloadings
140
150
160
170
180
190
200
210
J F M A M J J A S O N D
7-Day Carloadings
2013
2006
2007
2011
2012 2010
2008
2009
2014
UP Volume 2014 thru October
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Key Insights • Economy expected to continue
to strengthen
• Improving unemployment and consumer sentiment encouraging
• Economy and population create strong growth foundation
Strengthening U.S. Economy Adds Potential*
*Source: IHS Global Insight: October 2014 Forecast
•
•
•
y
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North American Manufacturers Becoming More Competitive Globally*
80
85
90
95
100
105
110
115
120
2003 2008 2013
U.S.
Total manufacturing cost indexed against U.S. = 100 Germany France Japan
UK
Canada
Mexico
Russia China Thailand
*Source: Boston Consulting Group
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Industrial Production Growing share of GDP*
-14.0
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
IP vs. GDP IP GDP
*Source: IHS Global Insight: November 2014 Forecast
IP Lagged GDP Growth
IP Leads GDP Growth
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Shale Market Impacts
Primary Shale Markets
Complementary Markets
ry SSShhhallle MMMa
Polyethylene Expansions
(C2H4)nH2
Manufacturing Expansions
Fertilizer Production
Refined Petroleum Products
Pipeline Construction
Construction Products
Frac Sand
Drill Pipe
Crude-by-Rail
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Industrial Expansion
Steel, Pipe, Rock, Trucks
Low Feedstock Costs
Shale Revolution
Low Energy Costs
Demand for Durable Goods
Supporting Rebirth of Manufacturing in North America
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Global Competitiveness
Low Feedstocks
Low Energy Costs
*Source: Waterborne Energy, Inc. Data in $US/MM Btu Includes information and data supplied by IHS Global Inc. *Source: IHS, Platts, McKinsey Analysis
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0
50
100
150
200
Fertilizer Demand
* Publicly announced
• Phosphates / Nitrogen • Strong Domestic Access • Low Natural Gas Prices • Displacement of Imports
Nitrogen Phosphates Potash
Global Fertilizer Demand* (Million Tons)
*Source: IFA, June 2014
Rock Springs, WY Port Neal, IA
Enid, OK
Freeport, TX Donaldsonville, LA Waggeman, LA
El Dorado, AR
North American Nitrogen Expansions*
Wever, IA
Borger, TX
Spiritwood, ND
E Dubuque, IL Lima, OH
Greene County, TN
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Point Comfort, TX
Joffre, AB
Sarnia, ON
Coatzacoalcos, VL
Plaquemine, LA
Monaca, PA
Expansions under construction *Publicly announced expansions
Parkersburg, WV
Plaquemine, LA
Odessa, TX
Point Comfort
VL Corpus Christi, TX
Decatur, AL
Montreal, PQ
Badlands NGL LLC North Dakota
La Porte, TX
La Porte, TX
Odessa, TX
La Porte, TX
La Porte, TX
Baytown, TX
Freeport, TX
Sweeny, TX
North American Expansions* Plastic Resin
Lake Charles, LA
Lake Charles, LA
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Portland
Oakland
LA
Calexico
Seattle
SLC
Eastport
Brownsville
Twin Cities
Denver
Dallas
Nogales El Paso
Eagle Pass
KC
St. Louis
Duluth
Memphis
Chicago
Laredo
Houston
North American Expansions Steel
New Orleans
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Foreign Direct Investment in Mexico Important FDI Announcements
*Source: Company public announcements
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Rail is Critical to America’s Supply Chain
FACILITY
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Scrap
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Increasing Demand for Rail g
St. Louis
Portland
Oakland
LA
Calexico
Nogales El Paso
Seattle
Eagle Pass
SLC
Eastport
Brownsville
Houston
KC
Omaha
Twin Cities
Duluth
Denver
Laredo
Dallas
Memphis
Chicago
New Orleans
Plastics
Bio-Mass
Pipe
Steel Coils
Frac Sand
Frac Sand
Rock
Shale
Shale
Bulk
Crude
Trans load
Bulk / Crude
Bulk
Trans load
Frac Sand
Grain
Grain
Grain
Grain
Grain
Frac Sand
Inter modal
Inter modal
Inter modal
Inter modal
Pipe
Grain
Potential New and Expanded Facilities
YTD Nov 2014
YTD Nov 2013
Var
Construction 505 423 82
New Facility 268 225 43
Facility Expansion 209 184 25
UP Short Line 28 14 14
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• Excellent Network • Strategic Terminal Locations • Broad Port Access • Border and Interchange
Coverage
Growing Opportunity of a Unique Franchise
Automotive Distribution Centers
Intermodal Terminals
Manifest Terminals
Border Crossings, Gateways and Interchanges
Ports
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Value Proposition Pulls It All Together
• Franchise provides opportunity • Population and
economy are favorable • Diverse market
opportunities • Focus on business
development • Generate value for our
customers and shareholders
Strategic
Investments The Best
Franchise
Strong Relationships
Innovative Products
Excellent Service
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RailTrends November 21, 2014
Brad Thrasher, VP & General Manager Industrial Products
