What Would Be The Impact Of A 100 Basis Points Decline In Union Pacific’s Share Of U.S. Rail Intermodal Shipments?

+9.46%
Upside
229
Market
251
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UNP
Union Pacific

The completion of the Panama Canal expansion in 2016 is expected to boost container traffic at East Coast ports at the expense of West Coast ports, adversely impacting rail companies operating in the Western U.S., such as Union Pacific. As a result, every 100 basis points decline in the share of U.S. rail intermodal shipments by 2020 from the base case, would lower intermodal freight revenue and total revenue for Union Pacific by around 4% and 1%, respectively.

100 BPS Decrease In Inetrmodal Market Share 1

100 BPS Decrease In Inetrmodal Market Share 2

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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

 

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