TRANSPORTE INTERNACIONAL & SUPPLY CHAIN INTEGRATION 2008TRANSPORTE INTERNACIONAL & SUPPLY CHAIN INTEGRATION 2008

U.S.-Mexico Chamber of Commerce

Irving, Texas

September 22-24, 2008

Union Pacific Franchise2007 - $15.5 Billion

Industrial Products

$3.1 B

Intermodal

$2.9 B

Energy

$3.1 B

Automotive

$1.5 B

Agricultural Products

$2.6 B

Chemicals

$2.3 B

CP

Fast Facts• Commodity

Revenue $15.5 B

• Route Miles 32,200 in 23 States

• Employees 49,000

• Annual Payroll $3.9 B

• Customers 25,000

• Locomotives 8,700

Mexico Markets Revenue Distribution 2007 Revenue $1.442 Billion

Laredo59%

Brownsville4%

Eagle Pass17%

El Paso7%

Nogales11%

Calexico2%

Energy $1M (<1%)

Agricultural Products

$431M

(30%)

Automotive

$428M

(30%)

Industrial Products

$318M

(22%)

Chemicals $134M (9%)

Gateway Breakdown

(Volume)

By Commodity

Note: Volume data from Border Crossing Reports, ICSC

Intermodal $130M (9%)

UNION PACIFIC AND THE ENVIRONMENT

“At Union Pacific Railroad, we are committed to protecting the environment,

now and for future generations. Our employees, customers, shareholders and the

communities we serve can expect our full compliance with all laws and regulations.

Union Pacific is developing and investing in new technologies that provide for

cleaner air and water, including a locomotive fleet that’s the greenest in the industry.

Our employees understand that protecting the environment is part of every

job, and they are creating and implementing world-class energy-conservation

techniques that are helping us to move more freight with less fuel.

We will continue our leadership in caring for the environment while delivering

the goods that America needs.”

— Chairman and Chief Executive Officer, Jim Young

Focused on Environmental Improvements

• Tier 2 Locomotives

• Smart Start

• Gen-Set Yard Locomotives

Focused on Environmental Improvements

• Green Goats HybridYard Locomotives

• Diesel Particulate Filters

• Oxidation Catalyst Devices

• Reduced Locomotive Idling

GREEN RAILROAD

• UNION PACIFIC CENTER, OMAHA IS ONE THE MOST ENERGY-EFFICIENT BUILDINGS

• REDUCE, RECYCLE, RENEW

• FUEL MASTERS PROGRAM

• EMERGENCY RESPONSE COMMITTEES

Rail – The Green AlternativeEnvironmental Fast Facts

• Railroads are three times more fuel efficient and cleaner than trucks

• If just 10% of the freight moved by highway were diverted to rail, save as much as $1 billion in fuel annually

• Since 1980, Railroads improved fuel efficiency by 72 %

Rail – The Green AlternativeEnvironmental Fast Facts

• Moves 1 ton 436 miles on a gallon of diesel (2007) - three times more fuel efficient than trucks

• UP is part of SMARTWAY TRANSPORTATION PARTNERSHIP

• Reduces Greenhouse Gas Emissions by 67%

• Since 2000, UP

• Reduced NOx 60%

• Reduced Particulate Matter Emissions 40%

INTERMODAL SERVICE

ONE DOUBLE STACK TRAIN CAN HAUL AS MUCH AS 280 TRUCKS

Distribution Center

Distribution Center

Manufacturer

Manufacturer

Retail Store

On Dock International20’,40’,45’

Intermodal Ramp

Off Dock International

Intermodal Ramp

Intermodal Ramp

Domestic48’ & 53’

20’,40’,45’

Intermodal: Flexible and Cost Efficient

Intermodal Ramp

Intermodal Ramp

UP has Superior Routes in Most Major Lanes

• Access

– Route Advantage: • Fast Growing

LA-Texas/Southeast Market

• North/South Lanes

• PNW - Memphis

• Northern California – Chicago

– West Coast Ports

– Mexico Border Crossings

• Infrastructure

– New Terminals

– EMP Box Ownership

Advantage Lane

Neutral Lane

Oakland

Los Angeles

Portland

Seattle/ Tacoma

Chicago

Memphis

New Orleans

Laredo

Dallas

Houston

Shreveport

Atlanta

4 Terminal Expansions

4 New Terminals

4 Planned Terminals

Los Angeles

Dallas

Laredo

El Paso

Chicago

Shreveport

New Orleans

Oakland

Memphis

I-5

Central

Sunset

North-SouthLathrop

HoustonSan Antonio

Salt Lake City

Atlanta

Tacoma

Increasing Capacity to Support Your Growth

Clearing Tunnels for Doublestack

New CTC

Double-Tracking

FXEKCSM

Union Pacific Offers Most Direct and Comprehensive Mexico Access

HermosilloChihuahua

MonterreyCuliacán

Querétaro

Nogales El Paso

Laredo

Torreón

Aguascalientes

Guadalajara

Mexico City

SanLuisPotosí

Saltillo

NogalesEl Paso

Laredo

Houston New Orleans

KC

Chicago

St. Louis

Tucson Dallas

MemphisLA

San Antonio

> 200 Maquilas

> 400 Maquilas

Maquila Source: Twin Plant News