Union Pacific 2009 Annual Report Download - page 35

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35
OTHER OPERATING/PERFORMANCE AND FINANCIAL STATISTICS
We report key Railroad performance measures weekly to the Association of American Railroads (AAR),
including carloads, average daily inventory of rail cars on our system, average train speed, and average
terminal dwell time. We provide this data on our website at www.up.com/investors/reports/index.shtml.
Operating/Performance Statistics
Included in the table below are Railroad performance measures reported to the AAR:
2009 2008 2007 % Change
2009 v 2008 % Change
2008 v 2007
Average train speed (miles per hour) 27.3 23.5 21.8 16 % 8 %
Average terminal dwell time (hours) 24.8 24.9 25.1 - (1)%
Average rail car inventory (thousands) 283.1 300.7 309.9 (6)% (3)%
Gross ton-miles (billions) 846.5 1,020.4 1,052.3 (17)% (3)%
Revenue ton-miles (billions) 479.2 562.6 561.8 (15)% -
Operating ratio 76.0 77.3 79.3 (1.3) pt (2.0) pt
Employees (average) 43,531 48,242 50,089 (10)% (4)%
Customer satisfaction index 88 83 79 5 pt 4 pt
Average Train Speed – Average train speed is calculated by dividing train miles by hours operated on our
main lines between terminals. Lower volume levels, ongoing network management initiatives, and
productivity improvements contributed to 16% and 8% improvements in average train speed in 2009 and
2008, respectively.
Average Terminal Dwell Time – Average terminal dwell time is the average time that a rail car spends at
our terminals. Lower average terminal dwell time improves asset utilization and service. Average
terminal dwell time improved slightly in 2009 compared to 2008 and improved 1% in 2008 versus 2007.
Lower volumes combined with initiatives to more timely deliver rail cars to our interchange partners and
customers improved dwell time in both periods.
Gross and Revenue Ton-Miles – Gross ton-miles are calculated by multiplying the weight of loaded and
empty freight cars by the number of miles hauled. Revenue ton-miles are calculated by multiplying the
weight of freight by the number of tariff miles. Gross and revenue-ton-miles decreased 17% and 15% in
2009 compared to 2008 due to a 16% decrease in carloads. Commodity mix changes (notably automotive
shipments, which were 30% lower in 2009 compared to 2008) drove the difference in declines between
gross ton-miles and revenue ton-miles. Gross ton-miles decreased 3%, while revenue ton-miles were flat
in 2008 compared to 2007 with commodity mix changes (notably autos and coal) explaining the variance
in year over year growth between the two metrics.
Operating Ratio – Operating ratio is defined as our operating expenses as a percentage of operating
revenue. Our operating ratios improved 1.3 points to 76.0% in 2009 and 2.0 points to 77.3% in 2008.
Core pricing gains, lower fuel prices, network management initiatives, and improved productivity drove
the improvement in 2009 and more than offset the 16% volume decline. Price increases, fuel cost
recoveries, network management initiatives, and improved productivity drove the improvement in 2008
and more than offset the impact of higher fuel prices.
Employees – Productivity initiatives and lower volumes reduced employee levels 10% throughout the
Company in 2009 versus 2008 and 4% in 2008 compared to 2007. Fewer train and engine personnel due