Union Pacific Corporation (NYSE:UNP) is the largest publicly traded railroad company in the world. The company commands over 31,000 miles and is strategically well placed to take advantage of transportation network in the western US. Crude-by-rail has been the choice of transport while the pipeline infrastructure is still being built. Over the course of last few years, crude has become one of the largest commodities transported on railroads. The current downturn in crude prices may result in capex cuts from oil companies in North America – resulting in some short-term headwinds for the railroad industry. However, railroads still remain the pulse of the economy and are excellent long-term investments.
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