Union Pacific CEO Lance Fritz told CNBC last Wednesday that the railroad operator has reasons to be positive about its business as the U.S. economy recovers from its coronavirus-driven halt.
“Across our markets, we’re seeing a few signs of optimism,” Fritz said in a “Mad Money” interview.
He singled out the following areas: automotive, housing and grain, the last of which is related to the U.S.-China trade deal.
Fritz also was optimistic about the benefits of the new U.S.-Mexico-Canada trade agreement, which is set to go into effect July 1.
In related news, the Canadian National Railway Co. is banking on growth in consumer products and supply-chain diversification in Asia, to revive traffic on its underutilized eastern Canadian rail lines, the company’s chief executive told Reuters on Friday.
Coronavirus, which hit China’s industrial production, along with U.S. tariffs on Chinese goods, are further leading suppliers to eye alternative manufacturing sites in Asia.
“The tariff war and coronavirus have intensified and accelerated these trends,” CN CEO Jean-Jacques Ruest said. “I think, therefore, we are even more bullish today than two years ago.”
