DALLAS — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
The Dallas area plays a central role in Union Pacific Corp.'s investment strategy, CEO Jim Vena shared from onboard Big Boy No. 4014 as it traveled through Texas on its Heartland of America Tour.
Big Boy — an old-school steam locomotive with a bit of a cult following in the trainspotting world — departed Aug. 28 from Cheyenne, Wyoming, on an eight-week tour across 10 states and traveled through Texas Oct. 4-12.
Vena and other leaders from Union Pacific (NYSE: UNP) spoke about Big Boy and briefed a small group of media members on the company's outlook, strategy and investments on Oct. 9, when the massive locomotive stopped at the company's facility in Hutchins on its way to Fort Worth and West Texas.
Union Pacific's Dallas Intermodal Terminal and Prime Pointe Industrial Park represent much of the company’s investment in the Dallas area. The DIT spans 260 acres, features about 4,000 container parking spots and currently employs nearly 80 full-time contractors. The terminal provides daily domestic service from Port Laredo, daily service to Port Houston and daily service to and from Long Beach, California.
Prime Pointe is a 3,000-acre industrial hub that spans Hutchins, Lancaster and Wilmer in southern Dallas County. The rail-served logistics center offers industrial sites up to 400 acres and houses distribution and warehouse operations for companies including Shippers Warehouse, Biagi Bros and Katoen Natie. A Union Pacific spokesperson said the industrial park added 10 new customers since 2022.
The company declined to disclose specific dollar amounts invested in the site and instead shared that Union Pacific has spent "multi-millions" to develop Prime Pointe since it acquired the land in 2012. It plans to add a new yard office and switching tracks to the site's rail yard by the end of the year.
When Vena returned to Union Pacific in 2023 after a brief retirement, he brought a simple strategy focused on safety, service and operational excellence. This multi-year strategy has meant continued investments in railroad efficiency, technology and workforce, including in other key markets such as Los Angeles and Phoenix.
Union Pacific is the largest railroad in the U.S. by revenue and has a market capitalization of about $147 billion. The company reported in July second-quarter net income of $1.7 billion, slightly up from $1.6 billion in the same quarter last year.
But leaders know the company has some work to do to meet strategic goals, including ongoing negotiations with Canadian rail partners and navigating weak coal demand.
"I'm very comfortable we can grow. Are we going to grow 30%? I wish. No, we're not," Vena said at last week's event. "But a successful business for us is that we grow carloads in the low digits, even with coal. ... Let’s go after the things we can control and quit worrying about the things we can’t control."
