UP Earns New Coal Business
Written by Marybeth Luczak, Executive Editor
Last month, UP hauled its first train of metallurgical coal to the Port of Los Guaymas in Mexico for export into the Asian market.
Union Pacific (UP) is onboarding Allegiance Coal’s new mine near Jansen, Colo., as part of a long-term agreement to export metallurgical coal into the Asian and South American markets.
The first shipment out of the New Elk Coal Mine was in July, and UP anticipates hauling more than 8,000 carloads in the first 12 months.
The coal is transported in open-top hoppers to seaborne ports for export, including Mexico’s Port of Los Guaymas. It is a new commodity for UP’s Mexico team, which has traditionally moved auto parts and grains across the border.
“This [new business] success took cross-departmental engagement, relationship-building and market knowledge,” said Kelli Sweet, UP’s Director-Bulk, Marketing and Sales. “Through our tenacity, we secured a win for our company. There was strong teamwork between Operating and Marketing and Sales, with a special thanks to our train crews who take a lot of pride in securing and serving this business.”
“Our Great Plains team is eager to efficiently serve the customer and take on this new growth,” said LT Griffin, Superintendent-Train Operations, Transportation at UP.
Metallurgical or “coking” coal is mined to produce the carbon used in making steel for buildings, tools and trains, as well as cookware, cutlery and surgical tools. Approximately 70% of global steel production today uses metallurgical coal, according to the World Coal Association.
