(Source: Seeking Alpha, January 4, 2012)
Union Pacific (UNP) is one of the leading railroad companies in the United States, with operations west of the Mississippi, a region which covers two-thirds of the country. With this network, the company connects U.S. with six major points of entry for goods into Mexico, which has earned $1.8 billion in revenues or 10% of total revenues, from freight to and from Mexico. This figure increased to 16% in 2011, and we think that Union Pacific’s connections to Mexico will be an important driver of business growth for the company in the coming years. Trade between the two countries is expected to rise as Mexico is forecast to export more goods into U.S. than China by 2018.
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