Right now Union Pacific is investing intensely to broaden its very best expansion business: intermodal freight. So-called intermodal cargoes are usually completed products for instance electronics, outfits, or appliances which have been shipped in corrugated steel containers or trailers.
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In the last decade or so, UP has expended $1 billion to equip 80% with the Sunset Route with double tracks, and designs to reach one hundred% inside the next several years. Consequently 55 trains daily now operate on the Sunset, as opposed with close to forty inside the mid 2000s. It now carries one-fifth of Union Pacific’s full website traffic. UP however lags BNSF in intermodal revenues, but it's getting market share. The double-tracking has assisted elevate the average duration of Union Pacific’s intermodal trains—that are now less constrained by the need to fit on sidings—from 158 autos in 2007 to 170 nowadays, which means that UP is handling much even larger volumes.
For lengthy-distance shipments, rail is winning. A major benefit is gasoline performance. Vans ship a huge amount of freight a mean of one hundred twenty miles over a gallon of diesel fuel; railroads can transfer the same cargo 600 miles on that gallon.