Union  Pacific  coal  volumes  continued  to  top  year-ago  counts in the second quarter, with 

increased domestic and export thermal demand driving improvements, according to company 

officials. 

The  railroad  reported  Thursday  that  coal  volumes increased 4.9 million st from the same 

quarter last year to 33.5 million st. Powder River Basin tonnage increased 17% year on year 

to 25.9 million st, and volumes from Colorado and Utah mines increased 17% to 7.6 million st. 

Second-quarter  coal  revenues  were  up 25% from the year-ago quarter to $619 million and 

revenue per carload increased 7% to $2,173. 

Building on Q1 gains, UP coal volumes are up 19% compared with the first half of last year to 

60.1 million st. 

Chief Marketing Officer Beth Whited said during an earnings call that stockpiles at utilities the 

railroad  serves have fallen below the five-year average. Whited added that higher natural ga

s  prices  and  continued  export  demand  from the West Coast also have contributed to coal 

gains. 

Looking ahead,Whited said the railroad expects Q3 and Q4 coal volumes to rise sequentially,

but stay  relatively  flat  to  numbers posted last year, when volumes increased as the market 

improved from springtime lows. 

"At this point we haven't considered that we would have significant production shortages in th

e fourth  quarter,  and  we're definitely still thinking it looks flattish," Whited said. "I suppose it 

all  depends  on  what  plays  out  with  third-quarter  demand  and  hot  weather ;  and  if  the 

producers  are in  a place where it makes economic sense to them, I would guess they'll keep 

producing into that." 

UP last year shipped 40 million st in Q3 and 37.5 million st in Q4.