UP streamlines six business units, merges four subsidiaries

Union Pacific Railroad is consolidating six major business units and four subsidiaries as part of a restructuring of its marketing and sales organization to address "evolving customer needs," the Class I announced late last week.

The business units are being consolidated into four: agricultural products, energy, industrial and premium.

The agricultural products team, led by Brad Thrasher, will include all markets previously under the agricultural products business unit, adding fertilizer, according to a UP press release.

Linda Brandl will lead energy, which will include the coal business team as well as the frac sand, liquid petroleum gas, petroleum and wind markets.

Kenny Rocker will lead industrial, which will include markets that had made up the previous industrial products business unit, excluding frac sand and wind. The new industrial team also will absorb the industrial chemicals, plastics and soda ash markets from the former chemicals business unit.

Jason Hess will lead premium, which will include all markets previously served by UP's intermodal and automotive business units.

"These changes more closely align our team structure around the markets we serve, giving us a focused opportunity to provide exceptional transportation products to our customers," said Executive Vice President and Chief Marketing Officer Beth Whited.

Also, UP is changing the name of its National Customer Service Center to Customer Care and Support to align the core focus of that team, which will be led by Kari Kirchhoefer.

"We continue to look for ways to improve the customer experience we provide, and the Customer Care and Support team plays an integral role in that mission," Whited said.

Moreover, UP is expanding its economic and industrial development team to include additional transportation options for customers not served directly by rail.

Effective Nov. 1, UP will merge four subsidiaries — Union Pacific Distribution Services, Streamline, ShipCarsNow and Insight Network Logistics — into one subsidiary called Loup Logistics Co. Shawntell Kroese will lead Loup, which will combine the strengths of all four subsidiaries to provide transportation and logistics services designed to connect shippers to rail.

"As a consolidated logistics company, Loup will be better able to support long-term growth for our customers and Union Pacific," Whited said. "Merging the subsidiaries yields a company with a more robust portfolio of shipping and logistics services and an employee base with a greater breadth of expertise, both of which help us better serve our customers."

Loup will be based at UP headquarters in Omaha, Nebraska.