Union Pacific losing market share over capacity problems.

Los Angeles Business Journal | August 1, 2005| | Copyright

Once again, capacity problems are causing Union Pacific Corp. to turn away cargo headed east from local ports.

The bottleneck is the 760-mile "Sunset Route" from L.A. to El Paso, Texas, which the railroad inherited with its purchase of Southern Pacific Rail Corp. a decade ago.

To keep up with demand, Union Pacific needs to add a second set of tracks to more than half the route that doesn't now have them. But the line is saddled with long-term contracts that pay low rates, so Union Pacific can't afford to invest the $600 million it would take to complete the ...

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