Union Pacific Corporation
Business Description
Union Pacific Corporation operates primarily as a rail transportation provider
through Union Pacific Railroad Company, its principal operating company, which
is the largest railroad in North America, covering 23 states across the western
two-thirds of the United States. Union Pacific Corporation was incorporated in
Utah in 1969 with its principal executive offices located at 1416 Dodge Street,
Omaha, NE 68179.
The Railroad, along with its subsidiaries and rail affiliates, is our one reportable
business segment.
The Railroad is a Class I railroad that operates in the United States. We have
approximately 33,000 route miles linking Pacific Coast and Gulf Coast ports
with the Midwest and eastern United States gateways and providing several north/south
corridors to key Mexican gateways. We serve the western two-thirds of the country
and maintain coordinated schedules with other rail carriers for the handling
of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast,
the Southwest, Canada and Mexico.
Competition – We are subject to competition from other railroads, motor carriers
and barge operators. Our main rail competitor is Burlington Northern Santa Fe
Corporation. Its rail subsidiary, The Burlington Northern and Santa Fe Railway
Company, operates parallel routes in many of our main traffic corridors. In
addition, our operations are conducted in corridors served by other competing
railroads and by motor carriers. Motor carrier competition is particularly strong
with respect to five of our six commodity groups (excluding energy), due to
shorter delivery times offered by such carriers. Because of the proximity of
our routes to major inland and Gulf Coast waterways, barge competition can be
particularly pronounced, especially for grain and bulk commodities. Competition
can pressure both transit time requirements and pricing, as well as place a
greater emphasis on the quality and reliability of the service provided. While
we must build or acquire and maintain our rail system, trucks and barges are
able to use public rights-of-way maintained by public entities.
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