Southern Pacific Railroad History Center


Peter Baumhefner

Post UP purchase of SP I do know that APL/Pacer was UP’s single largest revenue customer, bringing in over $1 billion of top line revenue to the UP balance sheet. They always stated we gave them a lot of revenue, but they made nothing on the book of business. Typical UP response. If I recall correctly, the former SP portion of the lanes (El Paso, San Antonio, Dallas, Memphis, Houston, New Orleans and beyond, plus the Hermosillo auto parts) accounted for about 35-40% of the total payout to rail providers. APL/Pacer had excellent underlying rates with the SP prior to merger. We seriously thought about ways we could use the SP contractual rates to enhance the bottom line for APL/Pacer.

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