Union Pacific Moves Pay Off

Union Pacific Moves Pay Off

Union Pacific is one of the largest railroads in the United States based on track miles, with more than 32,000 miles serving the western two-thirds of the country.. Railroads make large investments in fixed assets, which require a large amount of traffic in order to maximize profitability through a return on those assets, requiring speed and efficiency.. In addition to making new investments in its fixed assets, the company seeks to better utilize them through the Unified Plan 2020 -- Union Pacific's version of the industry's move to "precision scheduled railroading," which seeks to improve operating margins and overall efficiency.. The company's plan includes safety initiatives as well as offering logistics support to customers in the form of streamlined interfaces, better notifications, and improved local inventory reporting.. The company has continued to increase capital investment the past three years, including investment net of depreciation amounting to almost $3.7 billion.. Overall, Union Pacific has positioned itself for long-term success through investment in its capital base, and implementing the Unified Plan to maximize the profitability of those assets..