Intermodal stars in Union Pacific 24pc record quarterly profit increase

THE Union Pacific Railroad's (UP), the largest North American freight line, second quarter net profit increased 24 per cent year on year to US$1.7 billion drawn on revenue of $5.2 billion, up seven per cent.

The "best ever" second quarter results were supported by a healthy intermodal freight revenue increase of 10 per cent to make $1 billion with 846 containers moved, an increase of three per cent year on year. Average revenue per carload increased seven per cent to $1,108. This offset the drop in coal volumes of 17 per cent.

By combining solid pricing against efficient networks improving train speed by two per cent and productivity gains, the Omaha-based railway was able to make its "best-ever quarter by nearly every financial measure," said UP chief executive Jack Koraleski.