1

George Duggan

Vice President, Domestic Intermodal

May 19, 2008

BNSF Railway

Moving You Forward

2

Topics

Current Economic/Industry Environment

Providing Services That Deliver

Growing Where You’re Going

3

Moving You Forward

• Economic Landscape

• Factors Impacting the Transportation Industry

Current Economic/Industry Environment

4

Economic Landscape2007-2009 Outlook

-2.5%

-2.0%

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2007:Q3 2007:Q4 2008:Q1 2008:Q2 2008:Q3 2008:Q4 2009:Q1 2009:Q2 2009:Q3 2009:Q4

Real GDP Less-Tech Mfg.

2007 2.2% 0.8%2008F 1.2% -1.2%2009F 1.7% 1.4%

Real GDP vs. “Less-Tech” Manufacturing Output

Source: Global Insight, BNSF Railway, April 2008

Growth, Percent Change,Year-Over-Year

5

Economic LandscapeHousing Market

Sources: U.S. Census Bureau, Federal Reserve, BNSF Railway, December 2007

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Jan-

04A

pr-0

4Ju

l-04

Oct

-04

Jan-

05A

pr-0

5Ju

l-05

Oct

-05

Jan-

06A

pr-0

6Ju

l-06

Oct

-06

Jan-

07A

pr-0

7Ju

l-07

Oct

-07

Jan-

08

Q20

8

Q10

9

Q40

9

750

950

1,150

1,350

1,550

1,750

1,950

2,150

2,350

Housing Starts (RHT AXIS) Fed Funds 10-Yr T-Bill

High home inventories and falling home prices mean slump continues

6

Economic Landscape

Oil

$1.000

$1.500

$2.000

$2.500

$3.000

$3.500

$4.000

$4.500

Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08

HD

F (

$ p

er

ga

llon

)

$10.00

$30.00

$50.00

$70.00

$90.00

$110.00

$130.00

$150.00

WT

I ($

pe

r b

arr

el)

HDF and WTI

7Source: U.S. Census Bureau, April 2008

Economic LandscapeBusiness Spending & Employment

Business Capex - Equipment & Software (%Chg y/y)

-13%

-10%

-8%

-5%

-3%

0%

3%

5%

8%

10%

13%

200

1:1

200

1:3

200

2:1

200

2:3

200

3:1

200

3:3

200

4:1

200

4:3

200

5:1

200

5:3

200

6:1

200

6:3

200

7:1

200

7:3

200

8:1

200

8:3

Source: Global Insight, BNSF Railw ay, April 2008

Nonfarm Payroll EmploymentChange from Prior Month (000)

-350

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

300

350

400

Jan

-01

Jul-

01

Jan

-02

Jul-

02

Jan

-03

Jul-

03

Jan

-04

Jul-

04

Jan

-05

Jul-

05

Jan

-06

Jul-

06

Jan

-07

Jul-

07

Jan

-08

Business capex is cautious; employment is down three months in a row

8

Economic LandscapeConsumer Spending

Source: Global Insight, April, 2008

High commodity, credit and gas prices are squeezing spending power

Year-over-year growth

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2005Q1 2005Q2 2005Q3 2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1

Services Non-Durables Durables

9

Factors Impacting the Transportation Industry Factors Impacting Your Business

GROWTHGROWTHHighway Congestion

Transpacific Trade

Driver Shortage

Fuel Efficiency

Rail Capacity

Environmental Solutions

10

Factors Impacting the Transportation Industry Highway Congestion

Source: FHWA HPMS data

Highway Congestion, 2000 Highway Congestion, 2020 Prediction

11Source: Global Insight

Factors Impacting the Transportation Industry Driver Shortage

1.30

1.35

1.40

1.45

1.50

1.55

1.60

1.65

2004 2006 2008 2010 2012 2014

Drivers Needed Driver Supply Trend (optimistic) Projected Driver Supply

Millions

12

Shanghai

Source: ProLogis

Seattle/ Tacoma

Oakland

LA/ Long Beach

Houston

Dallas

Savannah

Charleston

Norfolk

New YorkChicago

Lazaro Cardenas

5

5

5 8

5

6

25

26

13

Vancouver

Prince Rupert

12

19

Atlanta

8

25

Toronto

7

6

Memphis

7

Factors Impacting the Transportation Industry Trans Pacific Trade

Continuing to Favor West Coast Ports

13

Moving You Forward

• Intermodal Services

• Environmental Solutions

Providing Services That Deliver

14

Competitive Service AlternativesBNSF Intermodal Services

Ideal for time-sensitive freight moving more than 1,000 miles

Seamlessly integrates road, rail and water transportation for truckload quantities

Works best in markets with large concentrated volumes - inefficient in lower-volume markets

Service is equivalent to or better than single-driver truck, averaging 400-700+ miles per day

15

Competitive Service AlternativesBest Value for Your Transportation Dollar

LONG-HAUL MODE TEAM DRIVERS

(HIGHWAY)

SINGLE DRIVERS

(HIGHWAY)

BNSF EXPEDITED

(INTERMODAL)

BNSF PREMIUM

(INTERMODAL)

Freight Costs $$$$ $$$ $$ $

Fuel Surcharges $$ $$ $ $

Total $$$$$$ $$$$$ Value Max Savings

METRO DOOR TO DOOR TRANSIT TIME (IN DAYS)

Southern California – Chicago 3 4 4** 5.5

Southern California – Kansas City

3 4 4** 5.5

Southern California – Memphis 3 4 4** 6

Southern California – Atlanta 3 4 Not Available 5.5

Southern California – DFW 2 3 3.5* 5

Seattle - Chicago 3 4 4* 5.5

(Lowest total emissions)

Economies of Intermodal Rail

*Expedited Container and Trailer Lane **Expedited Trailer Lane Only

16

Environmental SolutionsImproving Fuel Efficiency

2 – 4 times more fuel efficient than trucks on a ton-mile basis

Moving a ton of freight an average of 436 miles on a single gallon of diesel fuel (up from 423 in 2006)

Increasing fuel efficiency of trains by 80 percent over the past 25 years

Source: AAR

If just 10% of the freight that currently moves by truck were diverted to rail, fuel savings would exceed one billion gallons a year

17

Environmental SolutionsImproving Air Quality

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2005 2010 2015 2020 2025 2030

Calendar Year

NO

x E

mis

sio

ns

(g

/to

n-m

ile

)

0.000

0.010

0.020

0.030

0.040

0.050

0.060

0.070

2005 2010 2015 2020 2025 2030

Calendar Year

PM

Em

iss

ion

s (

g/t

on

-mil

e)

Trains are 2-3 times cleaner than trucks on a ton-mile basis

California Statewide with No SCAB Fleet Average-- L. S. Caretto: Updated truck versus rail emissions comparison , August 2007

NOx Emissions per Ton Mile of Freight PM Emissions per Ton Mile of Freight

18

Moving You Forward

• Growth Markets

• Creating Capacity Through Investments

Growing Where You're Going

19

Growth Markets

U.S. Growth Markets

20

Growth Markets

U.S. Gateways

21

Growth Markets

BNSF Intermodal Network

22

Growth Markets

BNSF Intermodal Network Density

23

Growth Markets

Distribution WarehousesTop warehouse markets forecasted to grow over 100M sq. ft. for third consecutive year

24

Key Takeaways

Growth Markets

Gulf Coast Megapolitan Study

Population Gulf will add 2.6M people by 2030 driving the need for consumer

goods, construction & building products BNSF well positioned

Economic Drivers Key origin for energy infrastructure, chemicals & refined

products Trade

Opportunities Unit growth Train service growth

25

Growth MarketsGulf Coast Megapolitan Study

Key Drivers Markets

Population Growth

Trade

Infrastructure for EnergyPipe

Wind Towers

AggregatesAutomotive

CementSteel

Agricultural ProductsPlastic Resins

Refining & Fuels

CoalPet Coke

Petroleum Products

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008F

Program Maintenance Expansion Mechanical Other Locomotive

Capital CommitmentsCreating Capacity Through InvestmentsCapital Plan

$ Millions

$2,258

$2,520

$2,265

$1,763$1,608

$1,505

$1,726

$1,988$2,179

ROIC

6.6% 6.6%

7.9%

10.1%9.5% 9.7%

9.4%

7.2%

8.8%$2,670 $2,593

11.4%10.5%

$2,575

Capital Commitments with ROIC

27

3,851

5,1835,1645,025

4,7644,512

4,243

2002 2003 2004 2005 2006 2007 2008P

Year End

Creating Capacity Through Investments Adding Road Locomotives

28

Creating Capacity Through Investments BNSF Expansion Projects in Service 2008

* 2007 - 2008

KEENBROOK SUMMIT

TT – 14 miles

SPRINGFIELD DIVISION

Sidings, DT – 3 miles Birmingham

Temple-MP 210DT – 6 miles

GULF DIVISION YARD PROJECTSArcola, TX – Connection Track

Bellville, TX – Storage Track Extensions

Galveston, TX – Track additions

29

Creating Capacity Through Investments Facility Expansion - 2007

GARDNERWorking with USACE to obtain permit

Scheduled to start construction in 2008 Complete late 2009 or 2010 Will include wide-span cranes, adjacent stacking

area, and traditional parking

SIGDoubled facility capacity

Improvements at North SIG yard complete Installation of four wide-span cranes

complete Yard fully operational Feb. 1

MEMPHISConstruction continues on new

intermodal facility Target in-service date – first half 2009 Will include wide-span cranes, adjacent

stacking area, and traditional parking

ALLIANCE New/extended lead tracks and support

tracks in-service Gate expansion and installation of

automated gate system complete Q1 2008

OAKLANDPlanning for expansion

Continuing to work with Port to secure property adjacent to OIG

Anticipate completing deal with Port this year

SCIGWork on permitting continues

ATLANTA Parking expansion complete Additional lead capacity

complete in Q1 2008

LA/HOBART Strip track extensions Additional parking capacity Support yard improvements

30

Creating Capacity Through Investments

Texas

ALLIANCE New/extended lead tracks and support

tracks in-service Gate expansion and installation of

automated gate system complete Q1 2008

Temple-MP 210 DT – 6 miles

GULF DIVISION YARD PROJECTS Arcola, TX – Connection Track Bellville, TX – Storage Track Extensions Galveston, TX – Track additions

Fort Worth Ethanol Facility Increasing capacity to

accommodate full unit trains

31

Moving You Forward

Especially as the short-term market continues to soften, Intermodal provides a competitive solution to meet your transportation needs and is the best value for your transportation dollar

BNSF is: Investing to match future capacity needs identified in

the strategic planning process where you are going Providing the most fuel efficient and cleanest form of

land transport of bulk goods and materials

What more can we do for you?