1© Transplace 2014.
#TPSS2014
Innovative Solutions for the
Mexican Market
Bernardo Ayala, Union Pacific Railroad
2
Mexico’s Fast Growing Rail Industry
Union Pacific Railroad
Bernardo Ayala – Vice President Mexico Markets May 13, 2014
3
Mexico’s Steel Wheel* Freight Volumes
-
100
200
300
400
500
600
700
2006 2007 2008 2009 2010 2011 2012 2013
* Does not i...
4
Supporting Growth in Mexico
UP Border Investments
*Excludes Santa Teresa and Sunset corridor spend
2004 2005 2006 2007 2...
5
Hermosillo
Chihuahua
Monclova
Torreón
Saltillo
Monterrey
Culiacan
San
Luis
Potosí
Tampico
Querétaro
Veracruz
Coatzacoalc...
6
UP’s Presence in Mexico
Service Beyond the Border*
Sources: Mexico’s Ministry of Economy, Maquila Portal, Banco de Méxic...
7
Tucson
El Paso
Laredo
Hermosillo
Chihuahua
Saltillo
Monterrey
San
Luis
Potosí
Querétaro
Puebla
Aguascalientes
Guadalajar...
8
Railroads
2%
Maritime
2%Air, 7.2%Light Vehicles
63%
Other, 4%
Why Ship Rail?
Advantages of Rail vs. Truck
• Lower enviro...
9
• Union Pacific is a leading
provider of transportation
services to and from Mexico as
well as the border area
• Strong ...
2014 Shipper Symposium - Innovative Solutions for the Mexican Market
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2014 Shipper Symposium - Innovative Solutions for the Mexican Market

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  • 2014 Shipper Symposium - Innovative Solutions for the Mexican Market

    1. 1. 1© Transplace 2014. #TPSS2014 Innovative Solutions for the Mexican Market Bernardo Ayala, Union Pacific Railroad
    2. 2. 2 Mexico’s Fast Growing Rail Industry Union Pacific Railroad Bernardo Ayala – Vice President Mexico Markets May 13, 2014
    3. 3. 3 Mexico’s Steel Wheel* Freight Volumes - 100 200 300 400 500 600 700 2006 2007 2008 2009 2010 2011 2012 2013 * Does not include traffic terminating or originating at the border. Thousand Units Cross Border Steel Wheel Freight between Mex – U.S. 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1995 1998 2001 2004 2007 2010 Total Cross Border Steel Wheel Freight between Mex– U.S. Thousand Tons Source: Union Pacific Internal DataSource: 2012 Annual Railroad Statistic Handbook, Secretary of Communications and Transport
    4. 4. 4 Supporting Growth in Mexico UP Border Investments *Excludes Santa Teresa and Sunset corridor spend 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Border-Area Subdivisions ($Millions) Maintanence Capacity $53 $22 $29 $44 $30 $28 $14 $32 $24 $81 • Mexico traffic growth has helped drive capital investments of $357 Million 2004 – 2013 in the border area to support our NB/SB volumes with Mexico* • Some important projects near the border include: – Double track along Sunset corridor – Santa Teresa Facility – Siding and wye connection at Eagle Pass Eagle Pass South Slot – Looking South Horan Siding
    5. 5. 5 Hermosillo Chihuahua Monclova Torreón Saltillo Monterrey Culiacan San Luis Potosí Tampico Querétaro Veracruz Coatzacoalcos Puebla Salina Cruz Aguascalientes Guadalajara Manzanillo Lázaro Cárdenas Mexico City Mérida Brownsville Nogales Laredo Eagle Pass Calexico El Paso UP Positioned for Mexico Growth Opportunities $2.1 billion in 2013 Exports to Mexico 56% Imports to U.S. 44% FXE 49% KCSM 51% Agriculture, 12% Autos, 47% Coal, 1% Chemicals, 6% Industrial, 11% Intermodal, 23% Mexico Commodity Mix Ferromex (FXE) KCSM Ferrosur (FSRR) Short lines • Mexico connectivity • Growing Population • Mexico’s Macro Drivers – Proximity to U.S. – Production costs – Skilled labor pool
    6. 6. 6 UP’s Presence in Mexico Service Beyond the Border* Sources: Mexico’s Ministry of Economy, Maquila Portal, Banco de México Topolobampo Guaymas Mazatlan Manzanillo Tampico UP Gateways/Offices Announced Customer Investments Carload: Shipments that move only on rail. Origin and destination are rail served. Intermodal: Rail-truck delivery to and from Mexico for shipments moving in containers. Transload: Integrated, multi-modal truck- rail combination. It involves freight that either originates and terminates in multiple trucks, and on the opposite end of the move, is transported in a single rail car Bajio *Service in Mexico is provided through Mexican interchange rail carriers and is not ..directly via UP trains or crews
    7. 7. 7 Tucson El Paso Laredo Hermosillo Chihuahua Saltillo Monterrey San Luis Potosí Querétaro Puebla Aguascalientes Guadalajara Mexico City Torreón Superior Intermodal Market Coverage UP Serves 19 Mexico Markets in Conjunction w/MX Railroads Nogales Celaya Leon Toluca Juarez Union Pacific’s Mexico Products Connect to 47 Markets in the United States and Canada, served with our equipment programs with EMP, UMAX, and rail-owned containers Border Direct: UP rail service to the US border Streamline Passport: Rail-truck delivery to and from Mexico provided by Streamline, a wholly-owned UP subsidiary Mexico Direct*: UP/Mexican rail to a Mexican rail ramp Rio Valley Reynosa FXE Railroad Border Direct Passport Only Transborder & Passport *Service in Mexico is provided through Mexican interchange rail carriers and is not ..directly via UP trains or crews
    8. 8. 8 Railroads 2% Maritime 2%Air, 7.2%Light Vehicles 63% Other, 4% Why Ship Rail? Advantages of Rail vs. Truck • Lower environmental impact – Rail is four times more fuel efficient than truck – Union Pacific can move one ton of freight 470 miles on a single gallon of diesel fuel – Since 1980, volume on America's rails has nearly doubled, but fuel usage has remained relatively flat • Helps decongest border crossings and roads – A rail car can carry up to 4 truckloads – One train can take up to 300 trucks off the road • Lower employee injury rates • Infrastructure maintenance and construction is not a burden on taxpayers • Expedited border clearance Sources: Environmental Protection Agency (EPA), AAR Green House Emissions Percentage of Tons Transported in the U.S. by Transportation Mode Railroads 40% Trucks 30% Maritime 11% Air 0.3% Trucks 22%
    9. 9. 9 • Union Pacific is a leading provider of transportation services to and from Mexico as well as the border area • Strong interline relationships with Mexican carriers and key government agencies • Only railroad to serve all six gateways • Comprehensive transportation options • Excellent customer service • Supporting future growth The Value of UP in Mexico Key Elements Seamless Cross-Border Service Strategic Investments Transportation Solutions Interline Relationship U.S./Mexico Relationship

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