聯合太平洋集團 (UNP) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the call to discuss America's First Transcontinental Railroad. (Operator Instructions) And I would like to turn the conference over to Luke Nichols. Please go ahead.

女士們、先生們，早安，歡迎參加本次電話會議，討論美國第一條橫貫大陸鐵路。（操作員指示）我想將會議交給 Luke Nichols。請繼續。

Good morning. Please note that during today's call, we will make certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future performance, which are subject to risks and uncertainties and may differ materially from actual results. Please refer to both Norfolk Southern Corporation's and Union Pacific Corporation's annual and quarterly reports filed with the SEC for a discussion of those risks and uncertainties we view as most important.

早安.請注意，在今天的電話會議中，我們將根據 1995 年私人證券訴訟改革法案的安全港條款做出某些前瞻性聲明。這些聲明涉及未來事件或未來表現，受風險和不確定性的影響，可能與實際結果有重大差異。請參閱諾福克南方鐵路公司和聯合太平洋鐵路公司向美國證券交易委員會提交的年度和季度報告，以了解我們認為最重要的風險和不確定性。

Our presentation slides are available at norfolksouthern.com in the Investors section, along with our reconciliation of any non-GAAP measures used today to the comparable GAAP measures, including adjusted or non-GAAP operating ratio. Please note that all references to our prospective operating ratio to date will be provided on an adjusted basis. A brief question-and-answer session will follow the formal presentation. Starting the presentation on Slide 3, I'll now pass the call over to Norfolk Southern President and Chief Executive Officer, Mark George.

我們的簡報投影片可在 norfolksouthern.com 的「投資者」部分找到，同時也提供我們目前使用的任何非 GAAP 指標與可比較 GAAP 指標的對賬，包括調整後或非 GAAP 營業比率。請注意，迄今為止，我們預期營運比率的所有參考資料均以調整後的數據提供。正式演講之後將有一個簡短的問答環節。從幻燈片 3 開始演示，現在我將電話轉給諾福克南方總裁兼首席執行官馬克喬治。

Well, good morning, and thank you for joining us on today's call. As you saw from this morning's announcement, the focus of today's NS earnings call has changed. Today is a historic day for America with the announcement of our country's first transcontinental railroad. I'm actually in Omaha, Nebraska this morning, and I'm pleased to be joined by Jim Vena, Union Pacific's Chief Executive Officer; Jennifer Hamann, the CFO; Jason Zante, Norfolk Southern Chief Financial Officer. So let me ask Jim to start the call by laying out our vision.

早安，感謝您參加今天的電話會議。正如您從今天早上的公告中看到的，今天 NS 收益電話會議的重點已經改變了。今天是美國歷史性的一天，因為我國宣布開通第一條橫貫大陸的鐵路。今天早上我在內布拉斯加州的奧馬哈，很高興能與聯合太平洋鐵路公司的首席執行官吉姆·維納、首席財務官詹妮弗·哈曼和諾福克南方鐵路公司的首席財務官傑森·贊特一起參加這次會議。因此，請容許我請吉姆先闡述我們的願景。

Thank you, Mark. On behalf of Union Pacific Board and leadership team, I am honored to be with you today to discuss our agreement to combine Union Pacific and Norfolk Southern and a combination valued at over $250 billion. This is a historic transformative moment for our companies, our customers and our great nation. Together, we will create America's first transcontinental railroad. With this transaction, we will generate significant value for our stakeholders and for all Americans. It builds upon President Abraham Lincoln's vision of a transcontinental railroad from nearly 165 years ago, and will usher in a new era of American innovation.

謝謝你，馬克。我很榮幸今天能代表聯合太平洋鐵路董事會和領導團隊與大家一起討論合併聯合太平洋鐵路和諾福克南方鐵路的協議，該協議價值超過 2500 億美元。對於我們的公司、我們的客戶和我們偉大的國家來說，這是一個歷史性的轉折時刻。我們將共同打造美國第一條橫貫大陸的鐵路。透過這筆交易，我們將為我們的利害關係人和所有美國人創造巨大的價值。它以亞伯拉罕·林肯總統在近 165 年前提出的橫貫大陸鐵路的願景為基礎，並將開啟美國創新的新時代。

Union Pacific and Norfolk Southern are two of the strongest operating railroads in the US with a combined 360 years of franchise history. Generations of railroaders at both of our companies have helped build America into what it is today. And today's railroaders will demonstrate that there is no better combined team to deliver America's first transcontinental railroad. Ask you to turn to Slide 4. Lays out how this new seamless single-line service supports US growth. Railroads are the backbone of the US economy. We power industries connect communities and deliver the materials that build homes, grocery stores, factories, and cities. You name it and the railroad likely moved it.

聯合太平洋鐵路公司和諾福克南方鐵路公司是美國實力最強的兩家鐵路公司，共有 360 年的特許經營歷史。我們兩家公司的幾代鐵路工人都為建設今天的美國做出了貢獻。今天的鐵路工人將證明，沒有比他們更好的團隊來建造美國第一條橫貫大陸的鐵路。請您翻到投影片 4。闡述了這種新的無縫單線服務如何支持美國的成長。鐵路是美國經濟的支柱。我們為各行各業提供動力，連結社區，並提供建造房屋、雜貨店、工廠和城市的材料。只要你說出一個名字，鐵路就可能把它運走。

Moving freight safely, efficiently, and affordably keeps American manufacturing competitive and neighborhoods growing. To that end, the United States has the best freight transportation system in the world, and this transaction will make it even stronger. The transcontinental railroad is the right next step toward achieving that goal. Combining Union Pacific and Norfolk Southern to unite the nation from East to West transforms the US supply chain and transportation landscape. Our single-line service will create new routes and increased access across this nation, making freight rail transportation a cost-effective option for more American shippers.

安全、有效率且經濟地運輸貨物可以保持美國製造業的競爭力並促進社區的發展。為此，美國擁有世界上最好的貨運系統，此次交易將使其更加強大。橫貫大陸的鐵路是實現這一目標的正確下一步。聯合太平洋鐵路和諾福克南方鐵路的合併將連接美國東西部，從而改變美國的供應鏈和運輸模式。我們的單線服務將開闢新的路線並擴大全國的交通範圍，使貨運鐵路運輸成為更多美國托運人的經濟高效的選擇。

By eliminating interchanges, customers' products will reach their destination faster, increased speed and reliability, combined with lower freight costs per mile makes rail a more attractive option than truck. And with improved service reliability, we will lower our customers' inventory and equipment costs with reduced cycle times. The impacts of this transaction for American communities can't be overstated. Our merger will reduce highway congestion and road maintenance burdens on American taxpayers. One intermodal train removes more than 550 trucks from the highway and is 75% more fuel efficient than truck. We pay to maintain our networks with focused infrastructure investment to support long-term growth and the safety of our operations.

透過消除換乘，客戶的產品將更快到達目的地，提高速度和可靠性，再加上降低每英里的運費成本，使鐵路成為比卡車更具吸引力的選擇。隨著服務可靠性的提高，我們將透過縮短週期時間來降低客戶的庫存和設備成本。這筆交易對美國社區的影響怎麼強調也不為過。我們的合併將減輕美國納稅人的高速公路擁堵和道路維護負擔。一列多式聯運列車可以從高速公路減少550多輛卡車，比卡車節省75％的燃料。我們透過重點基礎設施投資來維護我們的網絡，以支援長期成長和營運安全。

Together, this will enhance supply chain reliability, support the industrial renaissance and make US manufacturing more competitive and accessible. Rail investments have a broad impact on economic development and job creation. Importantly, Union Pacific and Norfolk Southern are aligned. All of our Union employees who have a job today will have jobs tomorrow in our merged company, and a company that is growing its business and spurring economic development creates even more jobs. The ultimate impact of investment in our combined company infrastructure, talent, and technology will be immense for American communities and businesses nationwide. Union Pacific and Norfolk Southern are committed to finding new ways to drive growth benefit customers and enhance real safety and competitors. I could go on and on, but I'll pause and ask Mark for his perspective on this historic transaction. Mark?

總之，這將提高供應鏈的可靠性，支持工業復興，並使美國製造業更具競爭力和可及性。鐵路投資對經濟發展和創造就業機會有廣泛的影響。重要的是，聯合太平洋鐵路和諾福克南方鐵路是結盟的。今天有工作的我們工會員工明天都會在合併後的公司找到工作，而一家業務不斷成長、刺激經濟發展的公司將創造更多的就業機會。對我們合併後的公司基礎設施、人才和技術的投資最終將對美國社區和全國企業產生巨大的影響。聯合太平洋鐵路和諾福克南方鐵路致力於尋找新的方式來推動成長、造福客戶並增強實際安全性和競爭力。我可以繼續說下去，但我會停下來問馬克對這筆歷史性交易的看法。標記？

Thanks, Jim. It is a historic day, not just for our companies, but for our industry, our country, and all of our stakeholders. This combination brings together two teams with a shared commitment to advancing our nation's economy connecting people, strengthening our communities, and building a stronger, more competitive America. Both Norfolk Southern and Union Pacific have been an integral part of our country's growth for generations. With this transaction, we will extend Norfolk Southern's rich nearly 200-year history alongside Union Pacific, unlocking new opportunities for our customers in our next chapter. We've strengthened our operations and have been disciplined in the execution of our strategy, running an efficient network, improving processes and driving excellence.

謝謝，吉姆。這是一個歷史性的日子，不僅對我們的公司而言，而且對我們的產業、我們的國家以及我們所有的利害關係人而言都是如此。此次合併將兩支團隊聚集在一起，共同致力於推動國家經濟發展、連結人民、加強社區建設、建立一個更強大、更具競爭力的美國。諾福克南方鐵路公司和聯合太平洋鐵路公司幾代以來都是我們國家發展不可或缺的一部分。透過此次交易，我們將與聯合太平洋鐵路公司一起延續諾福克南方鐵路公司近 200 年的悠久歷史，為我們的客戶在新的篇章中開啟新的機會。我們加強了運營，嚴格執行策略，運行高效的網絡，改善流程，追求卓越。

We're championing safety and continuous improvement at every level and have fostered the discipline to continue delivering a service product that's not only competitive, it's compelling for our customers. And with the leaders we have and processes we're instilling, we are now demonstrating network resilience in the face of challenges. In these efforts, they have led us to today a turning point for the industry that's only possible because of the thoroughbreds team commitment, strength and belief in our mission. I'm so proud of everything we've accomplished, and I want to commend our dedicated leadership team and our whole organization for they've all done wonderful things to deliver results.

我們在各個層面倡導安全和持續改進，並培養了繼續提供不僅具有競爭力而且對客戶有吸引力的服務產品的紀律。憑藉我們現有的領導力和我們正在灌輸的流程，我們現在正在展示面對挑戰的網路彈性。透過這些努力，我們今天迎來了產業的轉捩點，而這一切的實現都離不開純種馬團隊的承諾、力量和對我們使命的信念。我為我們所取得的一切成就感到自豪，我要讚揚我們敬業的領導團隊和整個組織，因為他們都做出了出色的工作並取得了成果。

By joining together with Union Pacific, this transaction will allow us to build on the momentum that we've created and to really create America's true first transcontinental railroad. Delivering more for our customers, our shareholders, our people and the communities we call home. The ability to deliver for all our stakeholders simultaneously was central to my initial conversations with Jim, we share a vision for the rail industry where traffic grows, customers have faster, more reliable shipping. Our nation's economy expands with less emissions and importantly, our people continue to be central to our business. Not only is this an opportunity to strengthen the supply chain, but one where we can deliver something no one else can, a freight railroad that unites our nation.

透過與聯合太平洋公司的合併，此交易將使我們能夠利用我們所創造的勢頭，真正打造美國第一條橫貫大陸的鐵路。為我們的客戶、股東、員工和我們所居住的社區提供更多服務。同時為所有利益相關者提供服務的能力是我與吉姆最初談話的核心，我們對鐵路行業有著共同的願景，即交通量不斷增長，客戶能夠享受更快、更可靠的運輸。我們國家的經濟隨著排放的減少而成長，更重要的是，我們的人民仍然是我們業務的核心。這不僅是加強供應鏈的機會，而且我們可以提供其他人無法提供的東西，即一條團結我們國家的貨運鐵路。

Joining our over 19,000 mile network and powerful franchise with those of Union Pacific will allow us to deliver a more effective and competitive roll road, creating compelling benefits for the iconic American industry and our workers. We will create opportunities for our employees as we grow by delivering reliable and timely service for our customers. We will build value for shareholders who will benefit from both the opportunity to participate in significant upside as holders of the combined organization. Which we believe will be a must-own large-cap stock and should trade at a robust multiple. We will unlock potential for the American economy today and well into the future. And we look forward to all that we will accomplish together. Jim?

將我們超過 19,000 英里的網路和強大的特許經營權與聯合太平洋鐵路結合起來，將使我們能夠提供更有效、更有競爭力的鐵路，為標誌性的美國工業和我們的工人創造顯著的利益。隨著我們不斷成長，我們將透過為客戶提供可靠、及時的服務，為員工創造機會。我們將為股東創造價值，股東將有機會作為合併後組織的持有者參與巨大的收益。我們相信這將是一隻必備的大盤股，並且應該以強勁的本益比進行交易。我們將釋放美國經濟當前和未來的潛力。我們期待著共同取得一切成就。吉姆？

Thank you, Mark. Combining our two great companies creates an impressive rail network as laid out on Slide 5. The Union Pacific Norfolk Southern combined network supported by over 52,000 railroaders will spend 50,000-plus miles across 43 states, reaching nearly every corner of the United States. It connects major manufacturing centers, agricultural region and population center. It also unlocks rail options for shippers in markets where today's real network is currently inefficient, such as gateway operations and connecting short-distance markets on both sides of the Mississippi River.

謝謝你，馬克。我們兩家偉大的公司合併後將創建一個令人印象深刻的鐵路網絡，如幻燈片 5 所示。聯合太平洋鐵路和諾福克南方鐵路聯合網絡由超過 52,000 名鐵路工人支持，線路長度超過 50,000 英里，橫跨 43 個州，幾乎覆蓋美國的每個角落。它連接主要製造中心、農業區和人口中心。它還為目前實際網路效率低下的市場的托運人提供了鐵路選擇，例如門戶運營和連接密西西比河兩岸的短途市場。

Our combined network will connect 10 gateways with Mexico and Canada as well as over 100 ports, opening strong international trade routes and supporting local and cross-border economic growth. Importantly, single-line service reduces interchange points and creates increased fluidity and optionality. It reduces strain at our gateways and interchange points, optimizes handoffs, and eliminates rubber tire interchanges. Today, around 1 million carloads interchange between our two companies. In the future, those million carloads will immediately see a 24- to 48-hour improvement in their transit time. That combination of faster service and greater market reach is powerful making our transcontinental railroad an attractive choice for both current and future customers.

我們的聯合網路將連接墨西哥和加拿大的 10 個門戶以及 100 多個港口，開闢強大的國際貿易路線並支持本地和跨境經濟成長。重要的是，單線服務減少了交換點並增加了流動性和可選性。它減少了我們門戶和交換點的壓力，優化了交接，並消除了橡膠輪胎交換。如今，我們兩家公司之間的貨物交換量約為 100 萬車次。未來，這百萬車廂的運輸時間將立即縮短 24 至 48 小時。更快的服務和更大的市場覆蓋範圍相結合，使我們的橫貫大陸鐵路成為現有和未來客戶的有吸引力的選擇。

Our network will be strengthened by continued capital investment. In 2025, that combined investment will total around $5.6 billion. These investments are critical to support safety, service and operational efficiency improvements. And we're committed to continue those investments to support US economic growth going forward. Now turning to Slide 6. Ultimately, we believe this new combined network enhances competition and increases growth opportunities that are in the public interest, benefiting all stakeholders. For us, this isn't just about winning versus the other rails, which we will. But it's also competing against other modes of transportation, whether that's barge, truck or pipeline to name a few.

我們的網路將透過持續的資本投資而加強。到 2025 年，總投資額將達到約 56 億美元。這些投資對於支持安全、服務和營運效率的提高至關重要。我們致力於延續這些投資，以支持美國未來的經濟成長。現在翻到幻燈片 6。最終，我們相信這個新的合併網絡將增強競爭並增加符合公眾利益的成長機會，使所有利害關係人受益。對我們來說，這不僅僅是戰勝其他對手，我們一定會取得勝利。但它也在與其他運輸方式競爭，例如駁船、卡車或管道等等。

It's providing the transportation product to compete for broader industrial development that supports reshoring manufacturing growth in the US. Our unified transcontinental offering will allow us to compete more effectively with Canadian transcontinental rails, making US ports more competitive and winning back US freight volume in American jobs. With route optionality that creates direct routes East and West will help our customers win in their marketplaces. Single-line service opens up more customer options to and from underserved areas in the Ohio Valley and the Mississippi River watershed.

它提供運輸產品來爭奪更廣泛的工業發展，從而支持美國製造業回流的成長。我們統一的橫貫大陸服務將使我們能夠更有效地與加拿大橫貫大陸鐵路競爭，使美國港口更具競爭力，並在美國就業中贏回美國的貨運量。透過創建東西方直達路線的路線選擇，將有助於我們的客戶在市場上取得成功。單線服務為往返俄亥俄河谷和密西西比河流域服務不足地區的客戶開闢了更多選擇。

By connecting around 100 ports and 10 international gateways, we enable more efficient and cost-effective supply chains. Stepping back, the combined network will capitalize on the strength of Union Pacific's West Coast ports and Norfolk Southern East Coast ports. Merging the strength of both companies' intermodal network facilitates the capture of international trade volumes and domestic truck conversion. The beauty of US ports is the population centers around the ports as well as the inland reach, thus making our ports a more natural destination when paired with excellent service and a wide portfolio of destinations. Slide 7 summarizes a lot of what you've heard so far and why we see this combination as a win for our customers. A couple of things I'd add. First is a question of enhancing competition. One way we're considering addressing this is through a proven framework we've employed in the past. It's a framework used by Union Pacific for select traffic in the Pacific Northwest.

透過連接約 100 個港口和 10 個國際門戶，我們實現了更有效率、更具成本效益的供應鏈。退一步來說，合併後的網路將利用聯合太平洋西海岸港口和諾福克南方東海岸港口的優勢。合併兩家公司的多式聯運網絡的優勢有助於抓住國際貿易量和國內卡車轉換。美國港口的優點在於港口周圍人口密集，並且內陸延伸，因此，如果結合優質的服務和廣泛的目的地組合，我們的港口將成為更自然的目的地。投影片 7 總結了您目前聽到的許多內容，以及為什麼我們認為這種組合對我們的客戶有利。我想補充幾點。首先是增強競爭的問題。我們正在考慮解決這個問題的一種方法是透過我們過去採用過的經過驗證的框架。這是聯合太平洋鐵路公司在太平洋西北地區特定交通中使用的框架。

The results have demonstrated that it has enhanced competition while supporting carload growth that has outpaced the market. While more details will come through the STB application process, we believe it will be a win for our customers. A significant note, with this combination, fewer than 20 customers will go from having two rail providers to just one, and we intend to provide a competitive alternative. Second, the deployment of state-of-the-art technology like Union Pacific's NetControl and CADX systems, along with Norfolk Southern's advanced algorithms that drive digital train inspection will create a safer, more efficient overall network while enhancing customer experience through shipment visibility and tracking. Now imagine steel moving from Pittsburgh, Pennsylvania, The Colton, California seamlessly. -- and then copper moving from Arizona to the east with fewer touch points, increased speed and better customer tracking capability. The possibilities are endless and only increases my excitement about what's possible. I'll now hand it over to Jason to transition the conversation to the financial aspects of the deal. Jason?

結果表明，它在支持超過市場的載貨量成長的同時，也增強了競爭。雖然更多細節需要透過 STB 申請流程才能知曉，但我們相信這對我們的客戶來說將是一場勝利。值得注意的是，透過這種組合，不到 20 個客戶將從擁有兩家鐵路供應商減少到擁有一家，而且我們打算提供一種有競爭力的替代方案。其次，部署聯合太平洋鐵路公司的 NetControl 和 CADX 系統等最先進的技術，以及諾福克南方鐵路公司推動數位列車檢查的先進演算法，將創建一個更安全、更有效率的整體網絡，同時透過貨運可視性和追蹤來提升客戶體驗。現在想像一下，鋼鐵從賓州匹茲堡無縫運輸到加州科爾頓，然後銅從亞利桑那州運輸到東部，接觸點更少，速度更快，客戶追蹤能力更強。可能性是無窮無盡的，這只會增加我對可能發生的事情的興奮感。現在我將把話題交給傑森，讓他討論交易的財務方面。傑森？

Thanks, Jim. This proposed combination creates both scale and balance as laid out on Slide 8. Based on 2024 pro forma results, our combined company has revenue of $36.4 billion, EBITDA of roughly $18 billion, and an operating ratio of 62.1%. This scale, combined with operational discipline, positions us to capture greater value as rail demand continues to grow. And specifically, with the combined operating ratio, there is clearly room for continued improvement.

謝謝，吉姆。如投影片 8 所示，這種提議的組合既能創造規模，又能實現平衡。根據 2024 年的預測結果，合併後的公司營收為 364 億美元，EBITDA 約為 180 億美元，營業比率為 62.1%。這種規模與營運紀律相結合，使我們能夠在鐵路需求持續增長的情況下獲得更大的價值。具體來說，綜合營業比率明顯還有持續提升的空間。

Together, UP and NS handled more than 14 million carloads a year across numerous business lines within our industrial, bulk, intermodal, and automotive segments. You've heard both companies talk separately about how this diversity helps us navigate the ups and downs of economic cycles. This merger only increases our combined company's ability to weather any storm. Importantly, this isn't just about being a bigger railroad.

UP 和 NS 每年在工業、散裝、聯運和汽車等多個業務領域共處理超過 1,400 萬車次的貨物。您已經聽到兩家公司分別談論這種多樣性如何幫助我們應對經濟週期的起伏。這次合併只會增強我們合併後的公司抵禦任何風暴的能力。重要的是，這不僅僅是一條更大的鐵路。

It's about being a better railroad, one that is more efficient and creates more value for our customers. Now, I'll turn it over to Jennifer to walk through the financial opportunity our proposed combination creates. Jennifer?

這是為了打造一條更好的鐵路，一條更有效率、為我們的客戶創造更多價值的鐵路。現在，我將讓珍妮佛來介紹我們提議的組合所創造的財務機會。詹妮弗？

Thank you, Jason, and good morning. Slide 9 provides a one-stop shop for the transaction details. Jim has already touched on a few of these points, but let me highlight that under the proposed terms, Norfolk Southern shareholders will receive share of Union Pacific stock and $88.82 cash for each Norfolk Southern common share. This represents an $85 billion headline value based on Union Pacific's July 16 unaffected closing price and a 25% premium to Norfolk Southern's 30-trading day volume weighted average price. In terms of the roughly $20 billion cash portion required for the transaction, I should point out that there will be no voting trust, so no funding will occur until the transaction closes.

謝謝你，傑森，早安。投影片 9 提供了一站式交易詳情。吉姆已經談到了其中的幾個觀點，但我想強調的是，根據擬議條款，諾福克南方鐵路股東將獲得每股聯合太平洋鐵路股票和 88.82 美元的現金。根據聯合太平洋鐵路 7 月 16 日未受影響的收盤價計算，這一總價值為 850 億美元，比諾福克南方鐵路 30 個交易日的成交量加權平均價格高出 25%。關於交易所需的約 200 億美元現金部分，我應該指出，不會有投票信託，因此在交易結束前不會有任何融資。

At close, we will fund that through a combination of cash we generate between now and closing as well as issuance of debt. As part of that, both Union Pacific and Norfolk Southern have suspended share repurchases and but will maintain their respective dividends. For that premium, we are creating a transcontinental railroad that unlocks $2.75 billion in synergies, as illustrated on Slide 10. We see a clear path to achieving these annualized synergies in the third year post close, represented by both revenue growth and productivity. On the revenue side, synergies of $1.75 billion will be heavily driven by modal conversion as single-line service makes rail more competitive versus truck. As Jim laid out, lanes such as the Pacific Northwest to the watershed and Southern California to the Ohio Valley provide great opportunities to win new business.

交易結束時，我們將透過從現在到交易結束期間產生的現金以及發行債務來提供資金。作為其中的一部分，聯合太平洋鐵路公司和諾福克南方鐵路公司都已暫停股票回購，但將維持各自的股息。為了獲得這筆溢價，我們正在建造一條橫貫大陸的鐵路，以釋放 27.5 億美元的協同效應，如幻燈片 10 所示。我們看到了在交易完成後第三年實現這些年度協同效應的明確途徑，以收入成長和生產力為代表。在收入方面，17.5 億美元的協同效應將主要受到運輸方式轉換的推動，因為單線服務使鐵路比卡車更具競爭力。正如吉姆所闡述的，從太平洋西北部到流域以及從南加州到俄亥俄河谷的路線為贏得新業務提供了絕佳的機會。

Beyond intermodal, we see opportunities such as finished vehicles moving nationwide. Food and beverage shipments traveling west to east, industrial chemicals, moving from the Gulf to Eastern markets and tires and steel rod moving east to west. As you saw on Slide 8, both companies bring a diverse business mix to this transaction which gives us a wide aperture to pursue growth opportunities. Cost synergies of $1 billion will result from improved safety and efficiency through shared best practices, reduction of material costs, enhanced asset utilization, routing efficiencies, and rationalization of back office costs. For example, through just the optionality of single-line service will increase locomotive productivity and generate fuel savings through less idle time and gateways.

除了多式聯運之外，我們還看到了諸如整車在全國範圍內運輸等機會。食品和飲料的運輸從西向東，工業化學品從海灣地區運往東部市場，輪胎和鋼筋則從東向西運輸。正如您在幻燈片 8 上看到的，兩家公司為此次交易帶來了多元化的業務組合，這為我們尋求成長機會提供了廣闊的空間。透過共享最佳實踐、降低材料成本、提高資產利用率、提高路線效率和合理化後台成本，將提高安全性和效率，產生 10 億美元的成本綜效。例如，僅透過單線服務的可選性就能提高機車生產率，並透過減少閒置時間和通道來節省燃料。

We'll gain workforce productivity through fewer car touches as well as driving the culture of operational excellence across an expanded footprint. To support these cost synergies, we expect to spend roughly $2 billion in incremental capital to integrate the networks. Finally, the deployment of state-of-the-art technology from both rails will create a safer, more efficient overall network. Looking then to Slide 11. This transaction yields a very compelling financial profile for the combined company as the $2.75 billion in synergies achieved by year three represents more than $30 billion of value creation. We expect adjusted EPS to be accretive early in the second year post close with high single-digit accretion thereafter as the synergies are realized. Annual free cash flow will grow from a 2024 pro forma combined $7 billion to an estimated $12 billion by 2029 with synergies, reflecting 10% annual growth.

我們將透過減少對汽車的接觸來提高勞動力的生產率，並在擴大的業務範圍內推動卓越營運的文化。為了支持這些成本協同效應，我們預計將花費約 20 億美元的增量資本來整合網路。最後，兩條鐵路採用最先進的技術將創造一個更安全、更有效率的整體網路。然後看投影片 11。這項交易為合併後的公司帶來了非常有吸引力的財務狀況，因為到第三年實現的 27.5 億美元協同效應代表著超過 300 億美元的價值創造。我們預計，調整後的每股盈餘將在交易完成後的第二年初實現成長，隨後隨著綜效的實現，每股盈餘將實現高個位數成長。年度自由現金流將從 2024 年預計的 70 億美元增長到 2029 年預計的 120 億美元，並產生協同效應，年增長率為 10%。

With this strong cash generation, we will rapidly delever our balance sheet. In fact, we expect to close the transaction with a debt-to-EBITDA of around 3.3 times and be back to around 2.8 times by 2028, and less than two years post close. With our commitment to prioritizing the balance sheet and discussions with the rating agencies, we would expect to maintain our current A-rated status. The more than 60% increase in run rate free cash flow supports our balanced capital allocation policy, reinvesting in our combined network rewarding our shareholders with a competitive dividend, and resuming share repurchases in 2028. By year three, we expect to be repurchasing more than $10 billion in shares annually. Bottom line, we are very pleased with what this deal represents for both Union Pacific and Norfolk Southern shareholders. We see it as a win today and a win for the future. I'll now turn it back to Jim to discuss the next steps and wrap up.

憑藉強勁的現金產生能力，我們將迅速降低資產負債表的槓桿比率。事實上，我們預計交易結束時債務與 EBITDA 比率將達到約 3.3 倍，到 2028 年將恢復到約 2.8 倍，且交易完成後不到兩年。透過我們優先考慮資產負債表並與評級機構進行討論，我們有望保持目前的 A 級評級。超過 60% 的運行率自由現金流增長支持了我們平衡的資本配置政策，對我們的合併網絡進行再投資，以有競爭力的股息回報我們的股東，並在 2028 年恢復股票回購。到第三年，我們預計每年回購的股票價值將超過 100 億美元。總而言之，我們對這筆交易對聯合太平洋公司和諾福克南方公司的股東的意義感到非常高興。我們認為這是今天的勝利，也是未來的勝利。現在我將把話題轉回給吉姆，討論下一步並結束。

Thank you, Jennifer. Obviously, this is a first major step in this process. I'm on Slide 12. In terms of the timing and path to completion, the transaction is subject to review and approval by the Surface Transportation Board with its statutory time frame. We at Union Pacific do not take steps lightly. We think them through. We make sure we have a strong case. We make sure that the team is ready to move ahead, and we're very comfortable with where we are as we move ahead. As I mentioned earlier, our robust plans not only preserve but also enhance competition and will be filed with the Surface Transportation Board in due course. For all the reasons you've heard today, we're confident that transportation -- the transaction serves the public interest and meets relevant requirements.

謝謝你，詹妮弗。顯然，這是這項進程的第一步。我在第 12 張投影片。在完成時間和途徑方面，該交易須經地面運輸委員會在法定時限內審查和批准。我們聯合太平洋公司不會輕易採取任何措施。我們仔細考慮了它們。我們確保我們有充分的理由。我們確保團隊已做好繼續前進的準備，並且我們對當前前進的狀況感到非常滿意。正如我之前提到的，我們強大的計劃不僅可以保持競爭，而且可以增強競爭，並將在適當的時候提交給地面運輸委員會。基於大家今天聽到的所有理由，我們相信交通運輸交易符合公眾利益並滿足相關要求。

The transaction is also subject to approval by both Union Pacific and Norfolk Southern shareholders, I want to be very clear here. We are both deeply committed to making this a seamless an integration process as possible. We understand that we need to avoid distracting our organizations during this approval process in a way that impacts our customers. And once the transaction is complete, we need to move as quickly as possible to deliver the benefits our stakeholders expect. Now turning to Slide 13. The transaction of this size and scope won't be easy to execute.

我想在此明確指出的是，該交易還需獲得聯合太平洋鐵路公司和諾福克南方鐵路公司股東的批准。我們都堅定地致力於使這個整合過程盡可能無縫銜接。我們明白，我們需要避免在此審批過程中分散組織的注意力，進而影響我們的客戶。一旦交易完成，我們需要盡快採取行動，為我們的利害關係人帶來期望的利益。現在翻到幻燈片 13。這種規模和範圍的交易並不容易執行。

We understand that. Key is having the right strategy and the right team to execute it. At Union Pacific, our safety, service and operational excellence strategy has propelled our company to industry best. We've made significant safety improvements taken service to all-time best levels and the operational efficiency and financial performance speaks for itself as we reported just a short time ago. A big part of our strategy's success has been maintained a buffer of resources to handle the fluctuations of railroading. As we implement this transcontinental railroad, that buffer strategy will remain imperative.

我們明白這一點。關鍵是要有正確的策略和合適的團隊來執行它。在聯合太平洋，我們的安全、服務和卓越營運策略推動我們公司成為產業佼佼者。正如我們不久前報道的那樣，我們已經取得了重大的安全改進，將服務提升到了歷史最佳水平，營運效率和財務業績不言而喻。我們的策略成功很大一部分在於維持了資源緩衝來應對鐵路運輸的波動。當我們實施這條橫貫大陸的鐵路時，緩衝策略仍然至關重要。

At Norfolk Southern, their thoroughbred culture has driven significant improvements over the past year plus. They have great momentum across those same key elements of safety, service and efficiency. It demonstrates that our companies are aligned on the fundamentals of running a great railroad. With the collective talent of both organizations combined with a winning strategy, I'm confident that we'll deliver for our stakeholders. Mark, I appreciate your thoughts on the cultural alignment before we wrap it up.

在諾福克南方鐵路公司，他們的純種馬文化在過去一年多的時間裡取得了顯著的進步。他們在安全、服務和效率等關鍵要素方面都擁有強大的發展勢頭。這表明我們的公司在運營偉大鐵路的基本原則上是一致的。我相信，憑藉兩個組織的集體才能和勝利策略，我們一定能為我們的利害關係人帶來利益。馬克，在我們結束之前，我很欣賞你對文化協調的想法。

Sure, Jim. However, you label the strategy, it comes down to the core fundamentals. And from the start of the transaction, it was evident that the DNA of our companies were very similar. We have our core NS spirit values, which represent safety, performance, integrity, respect, innovation, and teamwork and those are very closely aligned with Union Pacific's. And we expect to combine the best of both companies' programs and technology to set a new bar for rail safety and performance advancing our shared commitment to keeping rail the safest way to move freight over land.

當然，吉姆。然而，無論你如何定義這個策略，它都歸結於核心基本面。從交易一開始，我們就可以看出我們兩家公司的 DNA 非常相似。我們擁有核心的 NS 精神價值觀，代表著安全、績效、誠信、尊重、創新和團隊合作，這些與聯合太平洋的精神價值觀非常一致。我們希望結合兩家公司的最佳項目和技術，為鐵路安全和性能設定新的標準，並推進我們共同的承諾，使鐵路成為陸路運輸貨物最安全的方式。

And I just want to reiterate a point that Jim made earlier. Both companies are committed to a seamless integration. We understand that we need to continue to provide our customers with a high level of service throughout this process, avoiding distraction and disruptions. We'll have plenty of time to do thorough integration planning while the transaction is under review and post closing. And we commit, we're going to put the appropriate resources and time in place to assure that we do this the right way.

我只是想重申吉姆之前提出的觀點。兩家公司都致力於實現無縫整合。我們明白，我們需要在整個過程中繼續為客戶提供高水準的服務，避免分心和中斷。在交易審查和結束後，我們將有充足的時間進行徹底的整合規劃。我們承諾，我們將投入適當的資源和時間來確保我們以正確的方式完成這項工作。

Both companies have an immense amount of pride in their histories and how they've shaped our great nation. And if we use that as a foundation, while focusing on what we can control, I'm confident that these groups of real rotors will come together to win for our customers, our communities, our nation, and each other. Jim?

兩家公司都對自己的歷史以及對我們偉大國家的貢獻感到無比自豪。如果我們以此為基礎，同時專注於我們能夠控制的事情，我相信這些真正的轉子群體將團結起來，為我們的客戶、我們的社區、我們的國家以及彼此贏得勝利。吉姆？

Thanks, Mark. Now wrapping up on Slide 14, it summarizes the unprecedented benefits of this merger. This is a historic milestone for the entire rail industry and for America. This transaction will unite the nation connecting businesses, consumers, and communities. It will accelerate growth, enhance competition, spur economic development unemployment and unleash economic innovation.

謝謝，馬克。現在回到第 14 張投影片，它總結了這次合併帶來的前所未有的好處。這對整個鐵路產業和美國來說都是一個歷史性的里程碑。這項交易將使國家團結起來，連結企業、消費者和社區。它將加速成長、增強競爭、刺激經濟發展、減少失業並釋放經濟創新。

Built on our safety, service and operational excellence strategy, we will accelerate improvements in the safety, service and efficiency of our combined network and through significant synergies and free cash flow generation, we will deliver enhanced shareholder value. Our great companies have deep roots and spur in the industrial revolution of the past. With this combination, we take the next step in driving economic growth and prosperity of the future. That concludes our prepared remarks. We will now open the lines to answer your questions. Thank you.

基於我們的安全、服務和卓越營運策略，我們將加快改善合併網路的安全、服務和效率，並透過顯著的協同效應和自由現金流創造，為股東創造更高的價值。我們的偉大公司在過去的工業革命中有著深厚的根基和推動力。透過這項結合，我們將在推動未來經濟成長和繁榮的道路上邁出新的一步。我們的準備好的演講到此結束。我們現在將開通熱線來回答您的問題。謝謝。

(Operator Instructions) Scott Group, Wolfe Research.

（操作員指示） Scott Group、Wolfe Research。

Good morning, Scott, how are you this morning, I get to talk to you twice in a week.

早安，史考特，你今天早上好嗎，我一週能和你聊兩次天。

Hey, thanks. Pretty historic day. I have a question on deal mechanics and then maybe just a bigger picture question. Why no voting trust? And then can you give us the break fee if there is a superior offer that sort of mechanic stuff. And then Jim, just bigger picture. I know you don't have a operating ratio target. But when you think about UP standalone and now this combination, in your mind, as the combined railroad is this a better margin railroad? And as you think about like $2.75 billion of synergies. Is that inclusive of any potential regulatory concessions?

嘿，謝謝。相當具有歷史意義的一天。我有一個關於交易機制的問題，然後也許還有一個更大的問題。為什麼沒有投票信託？然後，如果有更好的報價，例如機械方面的報價，您能給我們違約金嗎？然後是吉姆，這是更宏觀的視角。我知道你沒有營運比率目標。但是當您考慮 UP 獨立運營和現在的這種組合時，在您看來，作為組合鐵路，這是否是利潤更高的鐵路？正如您所想的，協同效應約為 27.5 億美元。這是否包括任何潛在的監管優惠？

Well, Scott, listen, thank you very much. I'll answer the second question in a minute, but I'll pass it over to Jennifer. You can talk about the breakup fee and why no voting trust.

好吧，斯科特，聽著，非常感謝你。我馬上會回答第二個問題，但我會把它交給珍妮佛。您可以談論分手費以及為什麼沒有投票信託。

Yes. So I'll start with the voting trust, Scott. We actually believe that a voting trust would complicate and potentially delay the transaction. So we want to go to the STB with a fully developed merger application that allows us to really lay out the fundamentals of this merger and provide all the necessary detail that supports our position that this will not only enhance competition, but it's absolutely in the public interest. And so again, with the time frame relative to regulatory approval, we also think it's in the best interest to not fund it fully two years before we would have to, which would obviously be required as part of the voting trust. In terms of the deal and the breakup fee, it is $2.5 billion is what's set for that. Certainly, we don't expect to be invoking that. We're very confident in this transaction.

是的。因此我將從投票信託開始，斯科特。我們實際上認為投票信託會使交易變得複雜，甚至可能延遲交易。因此，我們希望向新加坡旅遊局提交完整的合併申請，以便我們真正闡述此次合併的基本原則，並提供所有必要的細節，以支持我們的立場：這不僅會增強競爭，而且絕對符合公眾利益。因此，考慮到監管部門批准的時間框架，我們認為最好不要在必須完成資金的兩年前就完成資金，這顯然是投票信託的一部分。就交易和分手費而言，預定金額為 25 億美元。當然，我們不希望援引這一點。我們對這筆交易非常有信心。

So Scott, listen, I'm going to broaden a little bit the question that you've asked, okay, because I think this is really important to understand, and I've sort of said it a little bit in the prepared remarks. So when I came back to work at Union Pacific, after I was away for a sabbatical for a short time. I came back with a list of things. I carry around a block folder that -- I put my thoughts in on the back of it. And before I showed up, I said to myself, there's something missing in the United States of America, and that is truly a transcontinental railroad. And we limit the capability of customers and manufacturing and supply chains in the US because of the handoffs and what we do.

所以斯科特，聽著，我將稍微擴大你提出的問題，好的，因為我認為理解這一點非常重要，而且我在準備好的發言中已經稍微提到了這一點。因此，當我短暫休假後回到聯合太平洋鐵路公司工作時。我帶著一份清單回來了。我隨身攜帶一個文件夾——我把我的想法寫在它的背面。在我到達之前，我對自己說，美國缺少了一些東西，那就是一條真正的橫貫大陸的鐵路。由於交接和我們所做的事情，我們限制了美國客戶、製造和供應鏈的能力。

The difficulty was always, could you ever get the deal and have a partner. And I'd tell you, it's a partner with Mark and his entire team. We spent all of yesterday together, just crossing T's and dotting I's. But at the end of the day, it was one of my goals. But of course, time and place is important, is do you have the right fundamentals? And what I like is I like the fundamentals and what Norfolk Southern is doing. And I trust that they are going to deliver as we go through this time frame to get to the STB, and the STB, if they look at it, which I think they will, in a very systematic, is it better for customers? Is it better for the country? Is it better to help people win in the marketplace, they'll approve this. We're very confident of that or we wouldn't have taken the step. So Mark and I had a little discussion.

困難始終在於，你能否達成交易並找到合作夥伴。我要告訴你，這是馬克和他的整個團隊的合作夥伴。我們昨天整天都在一起，一絲不苟。但最終，這是我的目標之一。但當然，時間和地點很重要，你是否有正確的基本原理？我喜歡的是諾福克南方鐵路的基本面和它所做的事情。我相信，隨著我們按照這個時間框架推進 STB，他們將會實現這一目標。如果 STB 能夠有系統地研究這個問題，我認為他們會這樣做，這對客戶來說是否更好？這對國家來說更好嗎？這是否更好地幫助人們在市場上獲勝，他們會批准這一點。我們對此非常有信心，否則我們不會採取這項措施。因此馬克和我進行了一點討論。

I always had it on the list of things to do, and we started the ball rolling. And when I look at how we got here, you need to make sure that the fundamentals of both railroads are in the right place. And I'm telling you, the fundamentals I know and I spoke about for, at Norfolk Southern are in the right place. The fundamentals for Union Pacific are also in a great place. We have a strong team right across the board. And you need that and make sure that you have it.

我一直把它列在待辦事項清單上，然後我們就開始行動了。當我回顧我們是如何走到這一步的時候，你需要確保兩條鐵路的基礎都處於正確的位置。我告訴你們，我所了解的和我所談論的諾福克南方鐵路的基本原則都是正確的。聯合太平洋公司的基本面也很好。我們擁有一支實力強大的團隊。您需要它並確保擁有它。

I'm very comfortable with Jennifer who's sitting next to me with Eric, with Kenny, and Mark is absolutely, and I'm going to ask him to jump in and give his view of this in a minute. So we have the right team. Then at the end of it is where are we, time in place? Does this make sense? And we are absolutely sure that when everybody stops and thinks about this in a logical fundamental pattern, it is compelling. It's a case that's compelling for us to move ahead.

我和坐在我旁邊的珍妮佛、艾瑞克、肯尼、馬克相處得很融洽，我當然會請他馬上發表一下他對此的看法。所以我們有合適的團隊。那麼最後我們在哪裡，時間在哪裡？這有意義嗎？我們絕對相信，當每個人都停下來並以邏輯的基本模式思考這個問題時，它是令人信服的。這是一個迫使我們繼續前進的案例。

Now you asked me about the or. I don't give or. All I'll tell you is my goal has always been the best in the industry, and you can go back to when I was at Canadian National, okay? As the Chief Operating Officer, and we had great operations, and we've continued that at Union Pacific. We expect to be the best in the industry. And that's what we're going to drive towards and make sure that we're still the best and be able to return the best service to our customers.

現在你問我有關或的事情。我不給或。我只想告訴你，我的目標一直是成為業內最佳，你可以回到我在加拿大國家鐵路公司的時候，好嗎？作為首席營運官，我們的營運非常出色，並且我們在聯合太平洋鐵路公司也延續了這一做法。我們期望成為業界的佼佼者。這就是我們要努力的方向，確保我們仍然是最好的，並且能夠為我們的客戶提供最好的服務。

In the last quarter, Union Pacific service level was close to 100% on both the Manifest and Intermodal and that is service that we measure what we deliver -- what we agreed to with our customers. So high service, great efficiency, build on that for these combined companies, I'm telling you I'm very comfortable. I do not make decisions lightly, and I gave it a lot of thought and the entire team did. And I'm absolutely, Mark, you did the same thing. Mark, any comments to add to what I just said?

上個季度，聯合太平洋的貨運和聯運服務水準接近 100%，這是我們衡量所提供的服務——也是我們與客戶達成一致的服務。如此高品質的服務、如此高效率，對於這些合併後的公司來說，我告訴你，我感到非常放心。我不會輕易做出決定，我和整個團隊都經過深思熟慮。我確信，馬克，你也做了同樣的事情。馬克，對於我剛才所說的還有什麼要補充的嗎？

No. I mean we've spent quite a while talking about this. And I think the most important part was fit and whether the fit was there. And I do believe, like I mentioned in the prepared remarks, culture was very much aligned I think our joint mission and vision for our country is 100% aligned. This is good for America to try to link our networks, independent networks.

不。我的意思是我們已經花了很長時間討論這個問題。我認為最重要的部分是適合以及是否合適。我確實相信，就像我在準備好的演講中提到的那樣，文化非常一致，我認為我們對國家的共同使命和願景是 100％ 一致的。這對於美國嘗試連接我們的網路、獨立的網路是有好處的。

We can only go so far independently. And let's face it, this industry has faced contraction in deck over the last couple of decades in terms of volume growth. We've been losing share to truck, and this is one way to reverse that trend. So I'm supremely confident that we've got the right partnership that we're culturally aligned and that we're going to execute brilliantly on integration to ensure that there's no disruption.

我們只能獨立走這麼遠。讓我們面對現實吧，過去幾十年來，這個產業在產量成長方面一直面臨萎縮。我們的市場份額一直在輸給卡車，這是扭轉這一趨勢的一種方法。因此，我非常有信心，我們擁有正確的合作夥伴關係，我們的文化一致，並且我們將出色地執行整合，以確保不會出現中斷。

Thanks, Scott. Appreciate it. Sorry for the long answer.

謝謝，斯科特。非常感謝。抱歉回答太長。

Alright. I appreciate that. Thank you.

好吧。我很感激。謝謝。

Jonathan Chappell, Evercore ISI.

喬納森·查佩爾（Jonathan Chappell），Evercore ISI。

Good morning, Jonathan.

早安，喬納森。

Good morning, Jim, thank you. Good morning, Mark. Jim, you're going to get a lot of questions that you had on Thursday that you couldn't answer. So let's start with the DC environment. You've said very clearly you're not going to take steps lightly, you thought this through. I assume you've had some conversations with the administration, with the Department of Justice, with the STB. What can you tell us about the feedback you received from those initial conversations? What have you heard about adding the fifth member to the STB? And how does that fit into the time line that you've laid out?

早安，吉姆，謝謝你。早上好，馬克。吉姆，你將會遇到很多周四你無法回答的問題。那麼讓我們從 DC 環境開始。你已經非常明確地表示你不會輕易採取行動，你已經仔細考慮過了。我認為你已經與政府、司法部、STB 進行了一些對話。您能告訴我們您從最初的對話中得到了什麼回饋嗎？您聽說過在 STB 中新增第五名成員嗎？這和您制定的時間軸有什麼關係？

Well, as the largest railroad in the United States of America, we have continuous discussion and dialogue with all facets of government and regulatory agencies in Washington. We continue to do that. So we would not have taken the step if we don't feel comfortable that we can deal with any of the issues that come forward. And that's the best way to describe any discussions we've had, and we'll continue to make sure that everybody understands what we're doing and how we move ahead.

作為美國最大的鐵路公司，我們與華盛頓各級政府和監管機構進行了持續的討論和對話。我們將繼續這樣做。因此，如果我們不確定能否解決出現的任何問題，我們就不會採取這項措施。這是描述我們所做的任何討論的最佳方式，我們將繼續確保每個人都了解我們正在做什麼以及我們如何前進。

Do you know anything about the fifth member, the timing there?

您對第五位成員的情況和時間安排有什麼了解嗎？

No, you probably know more than me on that. So if you know something, let me know. I think there's quite a backlog nominee. So it may take a little bit of time. That's kind of what we're hearing. But – thank you very much.

不，你可能比我更了解這一點。所以如果你知道什麼，請告訴我。我認為提名人選積壓了相當多。所以可能需要一點時間。這正是我們所聽到的。但是——非常感謝。

Thank you.

謝謝。

Brian Ossenbeck, JPMorgan.

摩根大通的 Brian Ossenbeck。

Morning, Brian.

早安，布萊恩。

Good morning, guys. Jim, for Jason as well. Thanks for taking my questions, congrats on the announcement today. I wanted to ask a little bit more about the strategy to grow and enhance competition. So I guess, two parts. First one, if you have a view on intermodal service, combining these two networks? Is it still something where you need IMCs? Will you provide more on your rail-owned boxes? And then the second one, I guess, is really thinking through the approval process, how are you going to be able to come up and improve and quantify that these benefits are achievable through the merger and not through some other means? Thank you.

大家早安。吉姆，對傑森來說也是如此。感謝您回答我的問題，祝賀今天的公告。我想進一步詢問有關發展和增強競爭力的策略。所以我猜是兩個部分。首先，您對將這兩個網路結合起來的多式聯運服務有何看法？您是否仍需要 IMC？你們會提供更多鐵路專用箱嗎？然後我想，第二個問題是真正思考審批流程，你將如何提出、改進和量化這些好處，以確保這些好處是透過合併而不是透過其他方式實現的？謝謝。

Well, listen, you know what, Mark, why don't you start on the intermodal. You guys do a spectacular job of that. And you guys -- I'm always envious when I look at how well you guys have done on that. So why don't you talk about the intermodal piece?

好吧，聽著，馬克，你知道嗎，為什麼不開始研究多式聯運呢？你們在這方面做得非常出色。而你們──每當我看到你們在這方面做得這麼好時，我總是很羨慕。那為什麼不談聯運部分呢？

Look, here's an interesting thing. With our interchange with UP today, 95% of our interchange is over 2,000 miles, meaning only 5% is under 2,000 miles. We see an enormous opportunity to grow in lanes where we would be in that 1,000 mile or 1,500-mile range. So that's just one example and that kind of touches upon the entire watershed story. So again, you've got this interference in the center of the country with these interchanges that creates friction -- and you've got 500-mile moves, 1,000-mile moves on each side of the Mississippi. And when you're going from west of it to east or east to west, rail has never even contemplated because it's just too much hassle too much extended time and frankly, too much cost. So these are the areas where we see tremendous growth. And that's part of what you see in the revenue synergy number. So we're supremely confident as we look at the growth, and I think, Jim would tell you the revenue synergies here were supremely confident in.

看，這是一件有趣的事。今天我們與 UP 的換乘里程中，95% 的換乘里程超過 2,000 英里，這意味著只有 5% 的換乘里程低於 2,000 英里。我們看到了在 1,000 英里或 1,500 英里範圍內的航線上存在巨大的成長機會。這只是一個例子，它觸及了整個分水嶺的故事。所以，再說一次，這些交換站在美國中部地區造成了乾擾，從而產生了摩擦——密西西比河兩岸各有 500 英里、 1,000 英里的移動。當你從西部前往東部或從東部前往西部時，你從來沒有考慮過使用鐵路，因為它太麻煩、太耗時，而且坦白說，成本太高。這些是我們觀察到巨大成長的領域。這就是您在收入協同效應數字中看到的一部分。因此，我們對成長非常有信心，我認為，吉姆會告訴你，我們對這裡的收入綜效非常有信心。

You bet. What I could add, [Scott], if you had a case where we was not thought through and was not compelling, you'd have a hard time being able to get anything done. When we look at what this combination delivers, it delivers truly better service for our customers. Think about this you've been following us, Brian, for a long time, and I could go on -- this is one of those white board exercises that we could be at for two hours. But just to give you a little snippet, when a railcar moves non intermodal and it meets the goal from east to west or west to east, we can get across the country.

當然。我可以補充一點，[斯科特]，如果我們沒有仔細考慮並且沒有令人信服的案例，那麼你將很難完成任何事情。當我們看到這種組合帶來的好處時，我們發現它確實為我們的客戶提供了更好的服務。想想看，布萊恩，你已經關注我們很久了，我可以繼續說下去——這是我們可以進行兩個小時的白板練習之一。但我僅舉一小段例子，當一輛火車以非聯運方式行駛，並且從東向西或從西向東達到目標時，我們就可以穿越整個國家。

We get across all the way from LA to Dallas in less than two days with an intermodal train. It's a little longer with a freight train. We will remove touch points. And every time there's a touch point, you add 24 to 36 hours even at the best while you're switching the railcar. That's gone. On top of that, at the interchange points where we used to stop and hand off, those are removed. So every customer that today when we are finally approved. And that's what the STB is going to look at is what's the advantage? How is service? Is it better for America? And what they'll look at is we're going to cut a day or two off of every transit time. That means less cost for our customers.

我們乘坐聯運列車，在不到兩天的時間內從洛杉磯到達達拉斯。貨運列車的運行時間會稍長。我們將消除接觸點。每次有一個接觸點，在切換火車車廂時，即使在最好的情況下也要增加 24 到 36 個小時。那已經消失了。除此之外，我們以前停車和交接的轉乘點現在都被拆除了。因此，當我們最終獲得批准時，每個客戶今天都會知道。這就是新加坡旅遊局要關注的，它的優點是什麼？服務如何？這對美國來說更好嗎？他們所考慮的是，我們將每次運輸時間縮短一兩天。這意味著我們的客戶將節省更多成本。

They'll have to have less cars, less leases less -- the congestion on the railroad will be less because there will be less railcars that are needed to move the same amount of business. That's something we've done at UP already within our own network. The amount of carloads, okay? Cars per carload that we operate is improved by 20%. The velocity has improved and this combination moves it. So given all that, I trust what the STB Chair has said that he wants to live up to commitments and time line and make sure that the process of anything that they look at is clean, and that's why we're very confident that we'll be in the timeline, unless we make a mistake in what the information that they require to look at our transaction, but I'm very confident that we've done the homework and we're in the right place.

他們需要減少車輛數量、減少租賃——鐵路擁堵情況將會減少，因為運輸相同數量的業務所需的火車車廂數量將會減少。我們已經在 UP 自己的網路中完成了這項工作。車廂裝載量可以嗎？我們營運的每車載重量提高了 20%。速度已經提高，並且這種組合可以推動它。因此，考慮到所有這些，我相信新加坡旅遊局主席所說的，他希望履行承諾和時間表，並確保他們審查的任何流程都是乾淨的，這就是為什麼我們非常有信心我們會在時間表內，除非我們在他們審查我們的交易所需的信息上犯了錯誤，但我非常有信心我們已經做好了準備，我們處在正確的位置。

Thank you.

謝謝。

Brandon Oglenski, Barclays.

巴克萊銀行的布蘭登‧奧格倫斯基。

Good morning, Brandon.

早上好，布蘭登。

Hi, good morning, everyone. Congrats on the deal, Jim and Mark. Jim or Mark, I mean, if we go back in the history of STB merger approval or unapproval, I think integration service risks come up quite a bit, especially with integrations that happened decades ago. You guys talk about some of your strategies to maybe mitigate those integration risks and what the service plan would be in the first year or two of the integration of the two networks? Thank you.

大家好，早安。祝賀吉姆和馬克達成交易。吉姆或馬克，我的意思是，如果我們回顧 STB 合併批准或不批准的歷史，我認為整合服務風險相當大，尤其是幾十年前發生的整合。你們談了一些可能減輕整合風險的策略，以及兩個網路整合後的第一年或第二年的服務計畫是什麼？謝謝。

Mark, do you want to start?

馬克，你想開始嗎？

Yes. I think like I mentioned in my prepared remarks, Brandon, we're very aware of what led to the merger moratorium back in 2000, 2001 time frame, and it was just a bunch of bad integrations. And we are committed to make sure that, that doesn't happen in this case. And we're going to use this two years of review process to start getting our teams together to talk and think and learn about the way our systems communicate, what platforms we want to be on to ensure that we have a running start when we close on this deal in two years' time. And we're not going to turn any switches on unless we're 100% confident that we're going to be disruption free. So we're -- we've learned -- we're learning from the lessons of the past, and you have our commitments there.

是的。布蘭登，我想就像我在準備好的演講中提到的那樣，我們非常清楚是什麼導致了 2000 年、2001 年合併暫停，那隻是一系列糟糕的整合。我們致力於確保這種情況不會發生。我們將利用這兩年的審查過程，讓我們的團隊聚在一起討論、思考和了解我們的系統通信方式，以及我們希望使用的平台，以確保我們在兩年後完成這筆交易時有一個良好的開端。除非我們 100% 確信不會發生中斷，否則我們不會打開任何開關。因此，我們——我們已經學會了——我們正在從過去的教訓中學習，並且我們對你們做出了承諾。

So I agree with Mark 100%. We're going to be very prudent in how we do things. But you know what words are easy, and people can talk about things and what -- and say this is what they're going to do. I'm not into talking about things. I am at the showing and then being able to replicate that. So shutdown, everybody remembers, and we talked lots about our implementation of NetControl. That change -- that was -- that is the fundamental system that runs our railroad, keeps track of every railcar movement, sets up for billing, and we shut it down, replaced the old one with NetControl, and it was a nonevent. It was like nobody knew it actually happened. I was hoping I'd get more questions and give us a little pat on the back for Rahul and his entire IT team about how well Union Pacific did, but I never got any positive remarks from anybody. Rahul is still waiting for some.

所以我完全同意馬克的觀點。我們做事會非常謹慎。但你知道哪些詞很容易，人們可以談論事情以及什麼——並說這就是他們要做的。我不喜歡談論事情。我正在觀看演示，然後能夠複製它。所以關閉，每個人都記得，我們談了很多關於 NetControl 的實作。那個變化——那是——那是運行我們鐵路的基本系統，跟踪每節車廂的移動，設置計費，我們關閉了它，用 NetControl 替換了舊系統，這並沒有發生什麼。就好像沒人知道這件事真的發生了一樣。我希望能得到更多問題，並對拉胡爾和他的整個 IT 團隊表示讚賞，感謝他們為聯合太平洋鐵路公司所做的貢獻，但我從未收到任何人的正面評價。拉胡爾仍在等待一些。

Welcome to the world. (laughter)

歡迎來到這個世界。（笑聲）

Yeah. Exactly. So at the end of it, I could go on the things. But fundamentally, the fundamental strategy that we are going to partake in this is having a buffer of resources so that we do not get ourselves in a place where we can handle because you're always -- it's an outdoor sport. You're always going to be confronted with something. And you need to make sure that you have a buffer of locomotives and a buffer of assets and a buffer of people at the right level so that you can win. So I'm very confident.

是的。確切地。所以最後我可以繼續做這些事。但從根本上說，我們要參與其中的基本策略是擁有資源緩衝，這樣我們就不會陷入無法應對的境地，因為你總是——這是一項戶外運動。你總是會遇到一些事情。你需要確保你擁有適當等級的機車緩衝、資產緩衝和人員緩衝，這樣你才能獲勝。所以我非常有信心。

I really am that we will take it, like Mark said, take the right steps, don't get too carried away. Don't think -- I don't know Norfolk Southern like I know Union Pacific. And if anybody thinks first day, we're going to go out there and start slashing and burning, that's not going to happen. We need to learn and get the team together to build the right plan that wins. I'm being very verbose this morning. I think we're going to have to cut off some of these I'm going to try to do three word answers from now on.

我確實相信我們會接受它，就像馬克說的那樣，採取正確的步驟，不要太過分。別想了——我對諾福克南方鐵路的了解不如對聯合太平洋鐵路的了解。如果有人認為第一天我們就會出去開始砍伐和焚燒，那是不會發生的。我們需要學習並讓團隊齊心協力製定正確的致勝計畫。我今天早上說了很多話。我認為我們必須刪除其中的一些內容，從現在開始我將嘗試用三個字來回答。

Thank you, Brandon.

謝謝你，布蘭登。

Thank you, both. Congrats.

謝謝你們兩位。恭喜。

Fadi Chamoun, BMO Capital Markets.

蒙特利爾銀行資本市場的 Fadi Chamoun。

Hey, Fadi. How is everything in Canada this morning, Fadi?

嘿，法迪。法迪，今天早上加拿大的情況如何？

It's great up here, Jim. We miss you. So I want to say congrats on the deal first. And just a follow-up on an earlier question. Does the synergy numbers and the cash flow numbers that you've outlined in any way, accounts for any potential concession in the -- My main question, though, is there's two ways this could have gone kind of transcontinentally. And I understand what you outlined in terms of team alignment and culture but are there other network synergy consideration and mix, commodity mix or kind of business mix consideration then went into why would NS and UP make the best transcontinental combination versus potentially another one? And lastly, Jennifer can give us what's the gross revenue number underlying the $1.75 billion.

這裡太棒了，吉姆。我們想你。因此，首先我想對這筆交易表示祝賀。這只是對先前問題的後續回答。您概述的協同效應數字和現金流數字是否考慮了任何潛在的讓步——但我的主要問題是，有兩種方式可以跨大陸進行。我理解您在團隊協調和文化方面所概述的內容，但是否還有其他網絡協同考慮和組合、商品組合或業務組合考慮，然後又談到了為什麼 NS 和 UP 會成為最佳的跨大陸組合，而不是潛在的其他組合？最後，珍妮佛可以告訴我們 17.5 億美元的總收入數字是多少。

So I'm probably not going to give you that gross number, Fadi, but I will tell you that the synergy numbers themselves are growth synergies. So $1.75 billion is what we're looking at for revenue. And as you heard Mark say and you hearing the enthusiasm from the group, we think that there's more opportunity there and then $1 billion on the cost side. So that's that part. In terms of the returns and the cash flows that we talked about, we have taken into account the fact that there will likely need to be some concessions made. We're not going to size that. So when you hear us talk about the economics of the deal, know that that's taken that into consideration, but the synergies that we're talking about are on a gross basis.

因此，法迪，我可能不會給你這個總數，但我會告訴你，協同效應數字本身就是成長協同效應。因此，我們預期的營收是 17.5 億美元。正如你聽到馬克所說的，以及聽到團隊的熱情，我們認為那裡有更多的機會，而且成本方面有 10 億美元。這就是那部分。就我們所談論的回報和現金流而言，我們已經考慮到可能需要做出一些讓步。我們不會去衡量這個尺寸。因此，當您聽到我們談論交易的經濟效益時，請知道我們已經考慮到了這一點，但我們談論的協同效應是基於整體的。

Fadi, you said why NS, I think they're a great company. Mark, why Union Pacific?

Fadi，您說為什麼是 NS，我認為他們是一家很棒的公司。馬克，為什麼是聯合太平洋公司？

I think we've got the largest interchange only.

我認為我們只有最大的轉乘站。

We do.

是的。

Million carloads of interchange -- you bet. We've got a really strong cultural alignment. So it's a beautiful complementary fit.

數百萬輛汽車的換乘——沒錯。我們的文化契合度非常高。所以這是一個完美的互補搭配。

You bet. Thanks, Fadi.

當然。謝謝，法迪。

Thank you.

謝謝。

Tom Wadewitz, UBS.

瑞銀的湯姆·韋德維茨（Tom Wadewitz）。

Hi, guys, good morning. Jim and Mark, yes, congratulations on the deal. Let's see. Wanted to ask if you could help frame a little bit more on the revenue synergies? And then I don't know if you think like there's more likely to be upside on cost to revenue synergies. But I think you mentioned Canadian opportunities and taking business from Canadian ports. You mentioned the watershed markets. Can you give any more perspective like how large are those pieces of the $1.75 billion -- is it -- is Watershed, the biggest piece? Is intermodal biggest piece? How much is Canadian ports. Just any maybe high-level perspective on how you think about the bigger opportunities within that $1.75 billion number? Thank you.

大家好，早安。吉姆和馬克，是的，恭喜你們達成交易。讓我們來看看。想問一下您是否可以幫助進一步闡述收入綜效？然後我不知道您是否認為成本收入協同效應更有可能實現上升。但我認為您提到了加拿大的機會以及從加拿大港口獲取業務。您提到了分水嶺市場。您能否再多說一些，例如這 17.5 億美元中有多少是「分水嶺」？它是最大的那部分嗎？多式聯運是最大的一塊嗎？加拿大港口多少錢。您能否從高層角度談談您如何看待 17.5 億美元中蘊藏的更大機會？謝謝。

You know what, you did a great job of sort of framing the opportunity. You really did. You covered it all. So let me just say this is -- at Union Pacific, we have always been very prudent about what we put out for goals, okay? And Jennifer is not sitting close enough. She's worried that I'm going to say blow by. So I'm not going to say blow by, but what I will say is we're prudent on what we see for revenue synergies and we've done a detailed study, and I'm very comfortable that we're going to deliver what we said because we're prudent people. Mark, anything you want to add?

你知道嗎，你很好地把握住了這個機會。你確實這麼做了。你把一切都講清楚了。所以，我只想說，在聯合太平洋鐵路公司，我們對於所設定的目標一直非常謹慎，好嗎？而詹妮弗坐得還不夠近。她擔心我會說「吹過去」。所以我不會說我們忽視了這一點，但我要說的是，我們對收入協同效應持謹慎態度，並且我們已經進行了詳細的研究，我很有信心我們會兌現我們所說的，因為我們是謹慎的人。馬克，您還有什麼要補充的嗎？

Yes. I think, again, we talked about the watershed opportunities, you've got markets like we can really attack in the watershed like Houston to Charlotte, for example. Dallas to Columbus, Laredo, Denver to Columbus. There's an awful lot of opportunity here where there's virtually no rail moves -- it's all truck moves. And those are big markets we can start to exchange. So there's -- I think there's opportunity well, well, well in excess of the numbers there. But we've made estimates and approximations that get us to the $1.75 billion. But frankly, like Jim is saying, and I'm saying there's a lot of confidence in that number and most likely a lot of upside. And on the Canadian side --

是的。我認為，我們再次討論了分水嶺機遇，例如，我們可以在分水嶺上進攻像休士頓到夏洛特這樣的市場。達拉斯到哥倫布、拉雷多、丹佛到哥倫布。這裡有很多機會，這裡幾乎沒有鐵路運輸，全是卡車運輸。這些都是我們可以開始交換的大市場。所以，我認為那裡的機會遠遠超過數字。但我們透過估算和近似計算得出的數字是 17.5 億美元。但坦白說，就像吉姆所說的那樣，我認為人們對這個數字很有信心，而且很可能會有很大的上升空間。加拿大方面--

Just a detail, a little bit about the competition and why this is great for America, and great for the industry, and great for customers. Intermodal comes in at Halifax, comes in at Montreal, comes in at Vancouver, comes in at Prince Rupert and single-line haul they have, the Canadians to be able to come into the US, deep into the US, and deliver, and we're going to be competitive on that. We're going to be able to come out of the East Coast ports and the West Coast ports and compete.

只是一個細節，一點點關於競爭以及為什麼這對美國有好處，對行業有好處，對客戶有好處。多式聯運從哈利法克斯進出，從蒙特利爾進出，從溫哥華進出，從魯珀特王子港進出，還有單線運輸，加拿大人能夠進入美國，深入美國境內進行運輸，我們將在這方面具有競爭力。我們將能夠走出東海岸港口和西海岸港口並參與競爭。

That's what we want to do. All we care about is let's get -- whoever has the best service, best price, best model to win, and I think it's wonderful for us moving ahead. And then you have to look at the fact that you just can't really -- our opportunity to take share against long-haul truck is really amplified here when you start to eliminate the friction of interchanges. So eliminating a lot of those friction points and being able to build blocks and move traffic without an interchange is going to help us take share from truck on the long-haul side. Thank you very much.

這就是我們想要做的。我們所關心的只是──誰擁有最好的服務、最好的價格、最好的模式，誰就能獲勝，我認為這對我們的未來發展很有好處。然後你必須看清事實，當你開始消除交換的摩擦時，我們與長途卡車爭奪市場份額的機會就真正被放大了。因此，消除許多摩擦點並能夠在沒有換乘站的情況下建立區塊並轉移交通將有助於我們在長途運輸方面從卡車中奪取份額。非常感謝。

One component within that. Is it primarily intermodal that we're talking about? Or is it a big mix of carload as well?

其中的一個組件。我們討論的主要是多式聯運嗎？或者說也是一大堆貨車？

It's carload as well.

也是滿載一車。

Yes, it's carload as well. Absolutely.

是的，也是滿載的。絕對地。

Absolutely. We described the touch points. Yes.

絕對地。我們描述了接觸點。是的。

Yes. Thank you.

是的。謝謝。

Jason Seidl, TD Cowen.

傑森·塞德爾（Jason Seidl），TD Cowen。

Jim, Mark, and team, congratulations I wanted to dive a little bit more into the synergy side of things and talk about the conversions. Clearly, the rail industry has lost share to the truck market over the last couple of years. How much has been lost at least in your estimation in the longer length haul lanes. And then when you look at the synergy numbers that you've given us, does that assume that there's no reaction by the other two to create another transcontinental railroad to compete with you? Or is that on a combined basis as well?

吉姆、馬克和團隊，祝賀你們，我想更深入地探討事物的協同作用方面，並談談轉換。顯然，過去幾年裡，鐵路業的市場份額已被卡車市場蠶食。您估計在較長的運輸航線上至少損失了多少。然後，當您查看提供給我們的協同效應數字時，是否假設其他兩家公司沒有做出反應來建造另一條橫貫大陸的鐵路來與您競爭？還是這也是綜合性的？

Listen, the truck market is huge. And we're not saying that we have the capability to take trucks out of everywhere. There's certain length of haul where the truck has an advantage. There are certain types of business that need a truck. And I think, were mutually we can work together to win even more business and help with the transformation that's happening on the industrial side in the United States of America right now. So the way we look at it is the opportunity is there for us to be able to sell that model and end-to-end closer to what the customers have, extend the reach and not have that hand off. I give the example for people that aren't railroaders.

聽著，卡車市場非常巨大。我們並不是說我們有能力把卡車從任何地方運走。在一定的運輸距離內，卡車具有優勢。某些類型的業務需要卡車。我認為，我們可以共同努力贏得更多業務，並幫助美國工業領域目前正在發生的轉型。因此，我們認為，我們有機會銷售該模型，並以端到端的方式更貼近客戶，擴大覆蓋範圍，而不是放棄這種模式。我為非鐵路工人舉了這個例子。

I know I've read a lot of your articles lately. So you're a railroader, just like I am, okay? And at the end of the day is -- I would like to have in the United States of America that if you cross the Mississippi and you were flying from one end of the country to the other, you'd have to get on the plane in New York, get up in Chicago at O'hare, change plans change carrier and go to another airline to go to LA. And that's what we do.

我知道我最近讀了很多你的文章。所以你和我一樣，是鐵路工人，好嗎？最終，我希望在美國，如果你穿越密西西比河，從這個國家的一端飛往另一端，你必須在紐約上飛機，在芝加哥奧黑爾機場起航，更改計劃，更換航空公司，然後轉乘另一家航空公司飛往洛杉磯。這就是我們所做的。

And book two tickets to do it.

並預訂兩張票來做這件事。

Book two tickets to do that.

預訂兩張票來做到這一點。

With two different companies.

屬於兩家不同的公司。

Exactly. So but that's how we treat freight in our country.

確切地。但這就是我們國家對待貨運的方式。

My interchange is Newark. So it's pretty bad. (laughter)

我的轉乘站是紐瓦克。所以這很糟糕。（笑聲）

Sorry about how I apologize. (laughter) Mines Omaha, it's very simple to get to. Thank you very much for the question.

抱歉，我的道歉方式很糟。（笑聲） 到達奧馬哈礦區非常簡單。非常感謝您的提問。

Thanks, guys.

謝謝大家。

David Vernon, Bernstein.

大衛‧佛農，伯恩斯坦。

Hey, guys. Thanks for taking my questions. First of all, congratulations and Jim, for what it's worth, I'm a big fan of NetControl. So good job on that. (laughter) So with the revenue synergy number of $1.75 billion, I know Jennifer, you said it's a mix of carload and intermodal. Van you kind of put a finer point on what percentage is carload versus intermodal? And should we be thinking about this as all sort of incremental industry -- incremental revenue to the railroad industry? Or is there also some diversion contemplated in the revenue synergy number?

嘿，大家好。感謝您回答我的問題。首先，恭喜你，Jim，不管怎樣，我是 NetControl 的忠實粉絲。做得很好。（笑聲）因此，對於 17.5 億美元的收入協同效應，我知道詹妮弗，你說這是整車運輸和多式聯運的混合。您能更詳細地說明一下整車裝載量與聯運裝載量的百分比嗎？我們是否應該將其視為鐵路業的增量產業——增量收入？或者收入協同效應數字中是否也考慮了一些偏差？

Yeah, I appreciate the question, but you know that I'm not going to give you that level of specificity. But you heard in Jim's remarks, I mean, we're expecting to convert traffic, certainly bring new business onto the rail. That's a very big part of this transaction. But we also think it will position us very well competitively against our peers as well.

是的，我很感謝你的提問，但你知道我不會給你那麼具體的細節。但是你聽到了吉姆的講話，我的意思是，我們希望轉換流量，肯定會為鐵路帶來新的業務。這是此次交易中非常重要的一部分。但我們也認為，這也將使我們在與同行的競爭中佔有有利地位。

Jason, anything to add? Like we kept you out of this discussion, anything else?

傑森，還有什麼要補充的嗎？就像我們讓你遠離這個討論一樣，還有什麼嗎？

No. I think Jennifer hit it really well. A lot of opportunities on the revenue side. And I think -- we haven't talked much about the cost side, but there's great opportunities there. I think two of the biggest areas in our purchasing strategies as well as our technology and how we combine that.

不。我認為珍妮佛打得非常好。收入方面有很多機會。我認為——我們還沒有談論太多成本方面的問題，但那裡有很大的機會。我認為我們的採購策略中最重要的兩個領域是我們的技術以及我們如何將其結合起來。

Thank you very much for the question.

非常感謝您的提問。

Stephanie Moore, Jefferies.

史蒂芬妮摩爾，傑富瑞集團。

Good morning, Stephanie.

早安，史蒂芬妮。

Good morning. Thanks, everybody. Maybe just continuing on the conversation in terms of the revenue synergies. If you could talk a little bit about any conversations that you've had with customers either leading into this deal? Or do you plan to have coming out of this deal and how your -- maybe looking to just address any potential concerns around network issues post close, but also to really come after and kind of take this incremental share from truck as well.

早安.謝謝大家。也許只是繼續討論所得綜效。您能否談談在達成這筆交易之前您與客戶進行過哪些對話？或者您是否計劃退出這筆交易，以及您的計劃——也許只是想解決交易結束後有關網路問題的任何潛在擔憂，但同時也真正地從卡車中獲取這部分增量份額。

Let me just start by saying, I think we're both coming from a wonderful position of strength right now when it comes to our service product. I know on the NS side, our Net Promoter Score is as high as it's ever been. Our customers are quite pleased, and I know we hear the same thing on the UP side with regard to customer satisfaction. So I think that customers generally are going to feel as though this is going to provide them more opportunity to leverage that good service product that they've been receiving. And give us more share going forward. Jim?

首先我要說的是，我認為就我們的服務產品而言，我們現在都處於非常有利的地位。我知道在 NS 方面，我們的淨推薦值達到了前所未有的高水準。我們的客戶非常滿意，我知道我們在 UP 方面也聽到了有關客戶滿意度的同樣評價。因此我認為客戶通常會覺得這將為他們提供更多機會來利用他們一直在接受的優質服務產品。並在未來給予我們更多的份額。吉姆？

Mark, you know what, I think you've done a great job of summarizing that the way we're moving forward. So thank you very much for the question.

馬克，你知道嗎，我認為你對我們前進的方向做了很好的總結。非常感謝您的提問。

Bascome Majors, Susquehanna.

巴斯科姆梅傑斯，薩斯奎漢納。

Good morning, Bascome.

早上好，巴斯科姆。

Good morning. Good morning, Jim; good morning, Mark. Can we go back to an earlier question, I know we'll get the detail from the lawyers on the origin story here when you file the proxy for the shareholder votes. But how long have you been talking beyond the sketches in your notebook, Jim, more seriously here? And did you speak to the other Eastern rail and what ultimately pushed you into this one being the right one, the biggest one or two reasons? Thank you.

早安.早安，吉姆；早安，馬克。我們可以回到先前的問題嗎，我知道當您提交股東投票代理時，我們會從律師那裡獲得有關起源故事的詳細資訊。但吉姆，除了筆記本上的草圖之外，你還有多久沒有認真談論這些事情了？您是否與其他東部鐵路公司談過，最終是什麼促使您選擇這家公司，這是最合適的選擇，最大的一兩個原因是什麼？謝謝。

Well, I tried to clear this up at the very start about how this -- all this started. But Bascome we have been talking and our Board, and I'm absolutely sure and Mark can jump in here. Our Board, when we started to talk about this internally and what we saw the benefits for customers, benefits on service and benefits for America, my Board really went through it in detail to make sure that we were doing the right thing for Union Pacific. And we wanted to also make sure that whoever our partner was, was the best partner for us that we saw the best capability moving forward. And that's what we've done. And it took months not years, but it took months from when we first talked.

好吧，我試著在一開始就澄清這一切是如何開始的。但是我們一直在和董事會討論巴斯科姆，我非常確定馬克可以加入。當我們的董事會開始內部討論這個問題，並看到它為客戶、服務以及美國帶來的好處時，董事會確實詳細地討論了這個問題，以確保我們為聯合太平洋公司做了正確的事情。我們還希望確保無論我們的合作夥伴是誰，都是我們最好的合作夥伴，並且能夠看到其向前發展的最佳能力。我們也確實這麼做了。這花了幾個月而不是幾年的時間，但從我們第一次交談開始就花了幾個月的時間。

And I give Mark credit he came in for a top-to-top and he said, growth, and what do you think? And that sort of spurred something that we already had. So we're talking months away. And when we start to work through, I'm not going to get into any detail about any other conversations with anybody. That's just not the way business should be handled. But we worked through this, Mark and I, hand-in-hand and their boards and our Board, and we've had a lot of discussions about this to get it to the finish line. It's amazing how much -- even with a small team well, I guess, maybe a little larger team than I thought originally that we had on it, that it didn't matter as soon as we said something in the last couple of weeks, something would come out. So we needed to move fast, which we did. Mark, anything you want to add?

我很欣賞馬克，他從上到下地推動了公司的發展，他說，成長，您覺得怎麼樣？這在某種程度上刺激了我們已經擁有的東西。所以我們談論的是幾個月後的事情。當我們開始解決問題時，我不會詳細談論與任何人的任何其他對話。這不是處理業務應該採取的方式。但是，馬克和我以及他們的董事會和我們的董事會攜手努力，共同解決了這個問題，並且我們對此進行了大量討論，以期最終解決問題。令人驚訝的是——即使我們的團隊規模很小，我想，也許比我最初想像的要大一點，但只要我們在過去的幾周里說了些什麼，就會有結果，這並不重要。所以我們需要快速行動，我們也確實這麼做了。馬克，您還有什麼要補充的嗎？

No, that's -- you nailed it.

不，那是——你成功了。

Thank you very much.

非常感謝。

Thank you, Bascome.

謝謝你，巴斯科姆。

Walter Spracklin, RBC Capital Markets.

沃爾特‧斯普拉克林 (Walter Spracklin)，加拿大皇家銀行資本市場部。

Thanks very much. Hey, good morning, everyone. congrats on the deal. I want to start with the CapEx question. I know you mentioned your run rate for free cash flow. Can you give your implied annual CapEx run rate that drives that free cash flow? And Jennifer, did you say $2 billion in one-time CapEx to achieve the $2.75 million in synergy I guess my question there is where are the pass-through points here? And how much investment has to be made for you to avoid Chicago or push through within Chicago or not Chicago at all -- is there short lines that you are contemplating to make that more fluid? Just curious as to the level of project investment that would be required to increase the connectivity between the two companies.

非常感謝。嘿，大家早安。祝賀交易達成。我想從資本支出問題開始。我知道您提到了自由現金流的運行率。您能否給出推動自由現金流的隱含年度資本支出運作率？詹妮弗，您是說要投入 20 億美元的一次性資本支出才能實現 275 萬美元的協同效應嗎？我想我的問題是這裡的傳遞點在哪裡？您需要投入多少資金才能避開芝加哥或在芝加哥境內推進，或者根本不去芝加哥——您是否正在考慮採用短線方式來讓流程更加順暢？只是好奇增加兩家公司之間的連通性需要多少專案投資。

Well, thank you for that question. So first of all, we're spending about $5.6 billion this year. That's the combined between the two companies. I think, you've seen us both be very disciplined in terms of our CapEx approach. We're going to invest for growth. We're going to invest for safety and service. And we will stick to those principles throughout the next 22 months or so that it takes to have this transaction approved, and then going forward.

嗯，謝謝你的提問。首先，我們今年的支出約為 56 億美元。這是兩家公司的合併。我想，您已經看到我們在資本支出方法上都非常嚴謹。我們將為成長而投資。我們將在安全和服務方面進行投資。在接下來的 22 個月左右的時間裡，我們將堅持這些原則，直到這筆交易獲得批准，然後繼續前進。

That's always our first use of capital dollars, cash dollars is to invest it back into the business. That's our best investment, as I think you know. In terms of the $2 billion, we see that largely around tech integration because that will be extremely, extremely important to connect this NetControl system that we've just been talking about with NS system, leverage some of their systems with ours. Think about our progressive gate technology that you've heard us talk about. NS, I think, has 50-plus intermodal ramps.

這始終是我們對資本和現金的首要用途，即將其重新投資到業務中。我想您知道，這是我們最好的投資。就 20 億美元而言，我們認為這主要用於技術集成，因為這對於連接我們剛剛談到的 NetControl 系統與 NS 系統、利用他們的一些系統與我們的系統極為重要。想想您聽我們談論過的漸進式門技術。我認為，NS 有 50 多個多式聯運坡道。

That's a huge opportunity for us to deploy that system and gain productivity through that deployment. And then, of course, you think about siding extensions, I think when you think about the length of the trains that we run and how we want to seamlessly interchange and run those intermodal trains and manifest trains, East, West, that will be an important part of that. Obviously, there's still a lot of details to work out there. But at a high level, that's really how we're thinking about it.

這對我們來說是一個巨大的機會，可以部署該系統並透過部署來提高生產力。然後，當然，你會考慮側線延伸，我認為當你考慮我們運行的列車的長度以及我們如何無縫地交換和運行這些聯運列車和顯示列車時，東西方，這將是其中的一個重要部分。顯然，還有很多細節需要解決。但從高層次來看，我們確實是這樣思考的。

I think sometimes people are mistaken about the discussion about Chicago, and Memphis, and New Orleans and interchange points. So Chicago works for us, it really does. But you're interchanging and you're sitting there with railcars having to sit. What we're talking about is, Walter, is you take a train and you run it between our combined network, and it's just a crew change and you keep on going. That's the big benefit.

我認為有時人們誤解了有關芝加哥、孟菲斯、新奧爾良和換乘點的討論。所以芝加哥確實對我們有用。但是您正在換乘，並且您坐在那裡，而火車車廂也必須坐著。沃爾特，我們討論的是，你乘坐火車，在我們的聯合網路之間運行，只需要換乘一次車組，然後就可以繼續前進了。這就是最大的好處。

We don't see a huge amount of business changing from Chicago to go to Memphis, or go to New Orleans because the outer route miles just don't add up, don't make a particle of sense. But if we can be smoother, cleaner the way we interchange, Walter, that's what is the real important piece of it. And on capital, everybody always thinks about capital and they think about it on what are we doing with locomotives, what are we doing with this?

我們並沒有看到大量的業務從芝加哥轉移到孟菲斯或新奧爾良，因為外圍航線里程根本不合理，毫無意義。但是如果我們能夠讓我們的溝通更加順暢、更清晰，沃爾特，那才是真正重要的部分。關於資本，每個人都會考慮資本，他們會思考我們用機車做什麼，用這個做什麼？

We have developed systems at Union Pacific and so has Norfolk Southern, some really good systems that improve productivity and how we handle ties, how we give track work time, how we replace rail and do that. So those are the things that you combine and put together. And we've identified $2 billion that from technology and everything else that we think to be able to combine these two companies and make sure that it's truly operate seamlessly as one railroad when we're moving our products is -- in the best way possible. So we've done, again, a lot of work to get to that number. I'm hoping we can do it for $1.7 billion. Thank you very much.

我們在聯合太平洋鐵路公司開發了系統，諾福克南方鐵路公司也開發了系統，這些系統確實非常好，可以提高生產率，改善我們如何處理枕木，如何安排軌道工作時間，如何更換鐵軌等等。所以這些就是你要組合和放在一起的東西。我們已經確定了 20 億美元，用於技術和我們認為能夠合併這兩家公司的其他所有方面，並確保在我們運輸產品時，它能夠像一條鐵路一樣真正無縫地運行——以最好的方式。因此，為了達到這個數字，我們又做了很多工作。我希望我們能以 17 億美元完成這件事。非常感謝。

I appreciate the time.

我很感激你抽出時間。

At this time, I would like to turn the call back over to Jim.

現在，我想把電話轉回給吉姆。

Okay. Well, listen, everyone, thank you very much. We appreciate you all taking the time this morning to come in and join Mark and I. Mark, sorry for jumping on your quarterly call. But at the end of the day, Mark, I'm very pleased with this combination, this merger. I'm really pleased to get through this in the next 22 months and get it done. And we will deliver railroad that is like none other in North America that provides the best service for customers, best cost-effective way to move products across the country. and I'm very excited. Mark, any last words?

好的。好吧，聽著，各位，非常感謝你們。非常感謝大家今天早上抽出時間來參加我和馬克的會議。馬克，很抱歉打擾了你的季度電話會議。但最終，馬克，我對這次合併感到非常滿意。我很高興能在接下來的 22 個月內完成這項任務。我們將提供北美獨一無二的鐵路，為客戶提供最好的服務，以最具成本效益的方式在全國範圍內運輸產品。我感到非常興奮。馬克，還有什麼要說的嗎？

Yeah. Look, we're really excited to be combining two great railroads, the two greatest in the country to create the first Intercon Transcontinental railroad, I should say. And I'm extremely proud of where we've come just in these past few months to arrive at a deal. And I think we're going to transform industry. So we were making history together here, and thanks for joining us on the call. Thank you very much, everyone. Have a good day.

是的。聽著，我們真的很高興能夠合併兩條偉大的鐵路，我應該說，這兩條鐵路是全國最偉大的鐵路，來創建第一條洲際鐵路。我對我們在過去幾個月達成的協議感到非常自豪。我認為我們將改變行業。所以我們在這裡共同創造歷史，感謝您參加我們的電話會議。非常感謝大家。祝你有美好的一天。

Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we ask that you please disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。再次感謝大家的出席。此時，我們請求您斷開線路。