How Do Union Pacific, Norfolk Southern, And CSX Compare In Terms Of Efficiency Of Their Rail Networks?

+2.68%
Upside
244
Market
251
Trefis
UNP: Union Pacific logo
UNP
Union Pacific

In order to compare the efficiency of the rail networks of the three rail companies covered by Trefis, we will look at the following metrics of rail network performance.

Average Train Speed – This metric refers to the average speed of a train between terminals, expressed in miles per hour. Higher train speeds are reflective of more efficient networks.

Average Terminal Dwell Time – This metric refers to the average time that a rail car spends at rail terminals, measured in hours. Lower average dwell time is indicative of higher asset utilization and more efficient networks.

Relevant Articles
  1. Should You Pick Union Pacific Stock At $250 After 20% Gains Last Year And Q4 Beat?
  2. Up Over 2x In 2023 Is AMD A Better Pick Over Union Pacific Stock?
  3. Should You Pick Union Pacific Stock After An 18% Fall In Q3 Earnings?
  4. What To Expect From Union Pacific’s Q3 After Stock Up Only 2% This Year?
  5. Should You Pick Union Pacific Stock Over McDonald’s?
  6. Earnings Beat Ahead For Union Pacific Stock?

In addition, we will also consider the operating ratio, which is a measure of the overall performance of a rail operator’s operations.

Operating Ratio – This metric refers to operating expenses expressed as a percentage of revenue.

Comparative Rail Companies' Efficiency

In terms of average train speed, Union Pacific has the most superior rail network. However, average terminal dwell times for Norfolk Southern are the most favorable. The relative values of these measures of network performance are reflected in the respective operating ratios of the three companies, with Union Pacific reporting the best operating ratio of the three and Norfolk Southern the second best.

Have more questions about Union Pacific? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Union Pacific

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology