Union Pacific 2002 Annual Report Download - page 8

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6
UNION PACIFIC
increased market share and higher
prices are driving revenue growth.
For customers, UP is building
value with breakthrough service
levels, allowing the railroad to
compete with trucks in more
service-sensitive and profitable
markets. By creating new prod-
ucts and using quality processes
to improve service reliability, UP
is delivering value.
The company is promoting
industry alliances that give cus-
tomers seamless service to all
parts of North America.
For example, in 2002 Union
Pacific introduced new intermodal
train service to Mexico for ship-
pers in the eastern United States.
Partnering with Norfolk Southern
(NS) and Canadian National
(CN), the new expedited service
trims up to three days from previ-
ous rail transit times. NS and CN
hand off eastern shipments to UP
at Memphis for delivery to Laredo,
Texas, Mexico City and other
major Mexican markets.
To improve efficiency, UP is
working with U.S. Customs and
the Mexican railroads –
Ferrocarril Mexicano (FXE) and
Transportacion Ferroviaria
Mexicana (TFM) – to streamline
border crossings. For their part,
FXE and TFM continue modern-
izing their systems.
With the Automated Manifest
System now in place at the six
UP/Mexico gateways, U.S.
Customs can electronically review
documentation from carriers and
brokers before rail cars reach the
border. This replaces a slower,
labor-intensive paper process that
did not allow for pre-clearance.
Service breakthroughs depend
on productivity and technology
improvements. For example, a key
(continued on page 8)
Brakeman
Mike Gonzalez operates a
remote-control switch to realign track
and permit smooth train operations in
the rail yard.
Union Pacific’s Yield Strategy is Building Value for shareholders.
The strategy focuses on growing revenue faster than GDP,
controlling costs and improving asset turns. Expanding markets,
Outdated
locomotives have
been replaced
by new, more
reliable models
that reduce
maintenance
costs.
building value