Union Pacific CEO Sees Significant Headwind on Coal

The video discusses Union Pacific's performance in 2019, the implementation of Unified Plan 2020, and the outlook for 2020. It highlights the impact of trade deals, particularly the US-China phase one deal, on the company's operations. The decline in coal and opportunities in the petrochemical industry are examined. Efficiency improvements in train operations and the role of technology in employment are also covered. The video concludes with a discussion on pricing power and market strategy.

What was a significant factor that turned from a headwind in 2019 to a tailwind in 2020 for Union Pacific?

• Higher natural gas prices

• US-China phase one deal

• Rising coal prices

• Increased truck capacity

What industry is expected to offset the decline in coal transportation for Union Pacific?

• Automotive

• Petrochemical and plastics

• Agriculture

• Textile

What is a key opportunity for Union Pacific in the petrochemical industry?

• Exporting finished goods

• Both inbound and outbound product opportunities

• Importing raw materials

• Only inbound product opportunities

What is a major challenge for Union Pacific in the coal industry?

• Rising coal prices

• Lack of transportation options

• Secular headwinds leading to decline

• Increasing demand

How has Union Pacific improved its service product according to the transcript?

• By increasing the number of trains

• By redesigning the network for consistency and reliability

• By hiring more employees

• By reducing train sizes

What is the expected impact of technology on Union Pacific's workforce?

• Increase in the number of conductors

• Reduction in the importance of conductors' roles

• No impact on employment

• Complete automation of all jobs

What is one of the three legs of Union Pacific's strategy to improve margins?

• Pricing to the value of service

• Expanding into new markets

• Reducing employee numbers

• Increasing train sizes