Union Pacific Moves Pay Off
Union Pacific (NYSE: UNP) is in the midst of a two-year process of implementing its Unified Plan 2020, which is an initiative announced in late 2018 and designed to improve efficiency on its lines and "secure our place as the industry leader in safety, service and financial performance."
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. It operates from all major West Coast and Gulf Coast ports, and has links to the Canadian rail system. It is also the only railroad serving all six major "gateways" between the U.S. and Mexico.
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.
Source Fool.com
