Union Pacific Corporation (NYSE:UNP) Q4 2022 Earnings Call Transcript

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Jason Seidl: Thank you, Operator. The anchorman position, I won’t make any Ron Bergan you referenced this year. I wanted to get back to domestic Intermodal, guys. I am assuming the positive growth outlook is basically the Schneider business and some of the freight that you guys lost last year that’s more of a natural rail fit flowing back to the network. But I want to look a little bit longer term, sort of as you look to the competitive marketplace with the trucks, where do you think the visibility needs to be and will RailPulse help you improve that? And then where do you think trip plan compliance needs to be and what else do you need to do to get that up there?

Kenny Rocker: Yeah. I will tell you. Thanks for that question, Jason. We have been encouraged as the management team with all the investment that we put into the railroad to support growth and we have talked about those products here a little bit today. We do think that Inland Empire is transformative for us. We do think that the Twin Cities Intermodal facility is transformative for us. We do think that the focus on technology, some of which Lance mentioned a little bit earlier that will help drive our experience. What ultimately helps our customers reduce their costs with their drivers will have an impact. And then, Jason, everything you just said, RailPulse is for our carload business and we put a lot of focus on making sure we can do ease of business and know exactly what our customers are asking for.

Eric Gehringer: And on the performance side, from the service product, Jason, we have been very consistent over the last handful of years that our Intermodal trip plan compliance, starting with an eight, like, 80%, 85% is where we want to be. But or and we are also very close to our customers over the last two years to continue to make sure that what we are measuring is most reflective of their experience and what’s most important to them. So stay tuned because we continue to evolve how we think about customer service in line with the customer’s voice.

Jason Seidl: And is there — if you guys get to that 85% or above, is that when it starts inflecting in a normalized demand market in terms of getting more freight on the network?

Eric Gehringer: The way to think about that is really when you get to 85%, what we are recognizing as we are an outdoor factory. We are 32,000 miles. We do deal with winter, et cetera, et cetera. There’s nobody here that gets to 85%, because we have done our job, but it’s a place to strive to get to and then reevaluate even within the challenges of being an outdoor factory with 32,000 miles, hey, what’s the next opportunity still?

Jason Seidl: Fair enough. Appreciate the commentary as always.

Lance Fritz: Yeah. Thank you, Jason.

Operator: At this time, we have reached the end of the question-and-answer session and I will turn the floor over to Mr. Lance Fritz for closing comments.

Lance Fritz: Rob, thank you very much for your help this morning and thank you all for your questions, we are looking forward to talking with you again in April about our first quarter results, until then please take care.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time. We do thank you for your participation.

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