Cargo Business Newswire

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Friday, January 20, 2012

Union Pacific freight revenue up 24 percent

In the fourth quarter of 2011, freight revenue rose 24 percent for Union Pacific Corp, exceeding Wall Street expectations, mainly due to a jump in prices and from transporting materials to and from shale oil drilling sites.

Volume increased 3 percent, year on year. Shale oil sector shipments accounted for up to half of the gain. UP carries steel, sand and pipe to sites that extract oil and gas from shale rock, then hauls out the crude oil. Volume in the sector doubled to 200,000 carloads in 2011.

UP’s chemical sector volumes rose 10 percent, and the industrial sector increased by 7 percent. Coal shipments rose 8 percent, driven by the nation’s demand for energy. Auto shipments rose 10 percent, reflecting increasing sales and production.

- Wall Street Journal

Read the complete story: online.wsj.com