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

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.