11

Railroad at the Border Zoe Richmond, Public Affairs DirectorUnion PacificNovember 2012

22

Union Pacific US Map

Portland

Oakland

LACalexico

Nogales El Paso

Seattle

Eagle Pass

SLC

Eastport

Brownsville

Houston

KC

St. Louis

Omaha

Twin Cities

Duluth

Denver

Laredo

DallasMemphis

Chicago

New Orleans

Port accessBorder

crossings

2010 Fast Facts (Year End)

• FreightRevenue $16.1 B

• Route Miles 32,000 in 23 States

• Employees 43,500

• AZ Employees 1,269

• Annual Payroll $3.6 B

• Customers 25,000

• Locomotives 8,000

33

Ferromex Mexico Map

44

Arizona Rail lines (courtesy MAG)

55

Union Pacific Hauls . . .

66

Agriculture Products

19%

Autos8%

Chemicals15%

Energy22%

Industrial Products

16%

Intermodal20%

2010 Business MixFreight Revenue $16.1 Billion

77

Delivering Value to Customers

• Excellent service drives satisfaction

• Year-over-year improvement

• New record

2005 2006 2007 2008 2009 2010

64

72

7983

88 89

GOOD

Customer Satisfaction Index

88

0%

25%

50%

75%

100%Potential Truck to Rail Conversions

National Rail Plan’s Projected Modal Shift

Rail Intermodal Market

Projected Market Shift (Intermodal Conversions)

Truck Market

Market Share

Distance (Miles)

0-249 250-499 500-749 750-999 1000-1499 1500-2000 >2000

99

Key Economic Indicators: IHS Global Insight

0.4%

1.3%

1.8%

2.8%

2.2% 2.3%

1.6%

2.0% 2.1%

2.6%2.8%

3.5%

Gross Domestic Product

9.0%

3.5%

1.5%

3.3%3.9%

8.0%

6.4%

4.5%

2.4%

4.6%3.8% 3.7%

Imports of Goods less Petroleum

0.58 0.57 0.62 0.66 0.69 0.72 0.76 0.79 0.84

0.92

1.06 1.14

Housing Starts(millions)

4.8%

0.7%

6.3%

3.1%

4.7%

3.6%3.2%

2.0%

2.7%3.1% 3.3%

3.6%

Industrial Production10.6%

2.5%

4.9% 5.0%4.1%

3.5%

6.8%

8.8%9.6%

8.8%

7.5%

8.9%

Export of Goods

13.0

12.112.4

13.4 13.713.4 13.6

14.014.3

14.7 15.0 15.0

Light Vehicle Sales (millions)

red line = prior month forecast 201202Forecast

1010

J F M A M J J A S O N D120

140

160

180

200

220

7-Day Carloadings

UP VolumeImproved Economy and UP Value Proposition Drive Growth

2011 2012

1,406

1,463

Units (000)4.0

2012

2007

2008

2009

2010

2011

1111

Future Plans for the railroad

• Mexico will continue to get more international focus.• Railroads upgrading infrastructure to meet demands.• Lobby for mitigation efforts for local communities.• Support more Customs human resources and the

ability for extended hours.• Build infrastructure to

mitigate safety & security issues.

1212

Thank you. Questions?