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  • Think All Railroads Are Alike? Think Again!

October 2008
Freight cars In our global economy, a good understanding of cultural and regional supply chain differences can positively influence the sales of your products. One area of regional difference is transportation. Around the world, railroads have similar characteristics and advantages, but the fact is, railroads function and operate differently across the globe.

In North America, railroads play a critical role in helping manufacturers distribute their products economically, reliably, and damage-free; and Union Pacific is ready to help!
North America's Railroads
The railroads in the United States and Canada are almost all privately-owned companies, and focused primarily on freight transportation. In other areas of the world, such as Europe, railroads are government-controlled and used more for passenger service and military transport. 		Engine by freight cars
Carloads Originated by Class I Railroads - chart Fueled by 20+ years of government de-regulation and intensive private capital investment, U.S. railroads have become an efficient and low cost option for transporting freight. U.S. railroads move more freight than any other rail system in the world. For example, U.S. railroads move more than four times as much freight than all of Western Europe's freight railroads combined! (The Union of International Railways UIC, March 31, 2008)
Did you know... 70% of all automobiles produced in the U.S. move by rail? Railroads provide reliable, lower cost transportation compared to truck. Because of these benefits, 70% of all automobiles, and many auto parts produced in North America, move by rail. Railroads provide excellent access to all major North American markets for delivery of vehicles and parts to manufacturers and their dealer networks. In North America, almost all auto rail cars (also called rail auto wagons in China and Europe) are fully enclosed. Auto rail cars are either bi-level, holding two tiers of cars, or tri- level, holding three tiers of cars, to help auto shippers maximize cost and capacity. U.S. Freight Rail Rates Are the Lowest in the World - chart
Shipping Products from Asia to Europe - via the U.S.?
The North American freight rail system is so efficient that it is often more competitive than transporting goods by ship through the Panama Canal. Many Asian container ships bound for Europe make port in Seattle or Vancouver, Washington, and offload their containers onto trains. These trains then shoot across the continent to an eastern port, where the containers are reloaded on ships to continue their trip to Europe. 		Sail-2-Rail service by Union Pacific
Mexican Flag The Mexican Connection
Similar to the United States and Canada, most of the railroad system in Mexico is used for freight transportation. Over the last 10 years, as the Mexican economy opened to international markets, the government allowed private investors to operate its railways. With the help of the North American Free Trade Agreement (NAFTA) and other regional trade agreements, Mexico continues to grow its manufacturing and distribution capabilities.
Mexico's central location gives it a natural advantage to reach most of North and South America's largest markets. This has allowed the new Mexican railroad operators to increase trade, connecting with U.S. rail carriers at numerous ports on the U.S. / Mexico border. The railroads now haul many types of freight across the border, including finished vehicles, auto parts, chemicals, and agricultural products.

Rail cars are fully compatible throughout the North American railroad network, and border crossing operations have been streamlined to speed products to their final destinations.

Union Pacific - U.S. Leader of Automotive Rail Transport
Union Pacific (UP) continues to be the largest automotive railroad in the western U.S. and is the largest railroad sharing automotive traffic between the U.S. and Mexico, as well as providing access to the Canadian railroads and markets. 		Union Pacifi c and Ferromex (FXE) are proud to offer U.S. - Mex Connection®, a transportation product designed to remove the barriers that exist for customers shipping to and from Mexico. U.S. - Mex Connection® offers a “single source” pricing tool, designed especially for moving products into and out of Mexico on a through-rate basis.
Union Pacific Railroad:
  • •  Handled nearly 78% of the automotive carload business in the western U.S. in each of the last two years
  • •  Operates the largest automotive railcar fleet in the rail industry with over 18,000 cars currently in service
  • •  Directly serves 7 vehicle assembly plants and 40 automotive distribution facilities
  • •  Services 6 West Coast ports, and the Port of Houston, which receives both imported vehicles and vehicles moving to and from Hawaii and Alaska
Union Pacific Can Help!

UP provides:
  • •  Economical and efficient rail service
  • •  Door-to-door transportation & logistics services for the delivery of cars and trucks
  • •  Transportation and distribution for automotive production and service parts
  • •  Electronic messaging for inventory visibility & control

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