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Union Pacific Railroad

Washington Transportation Commission Meeting – July 15, 2014

Brock Nelson Director of Public Affairs

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Portland

LA

Houston

Denver

Chicago

New Orleans

SLC

Twin Cities

MemphisSt. Louis

1996

1995

1988

1982

1982

Mergers Expand Union Pacific’s Service

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Portland

Oakland

LA

Calexico

Seattle

SLC

Eastport

Brownsville

Houston

Omaha

Twin Cities

Denver

Dallas

Nogales El Paso

Eagle Pass

KC

St. Louis

Duluth

Laredo

Memphis

Chicago

New Orleans

2013 Fast Facts (Year End)

• Revenue $22.0 B

• Route Miles 32,000 in 23 States

• Employees 45,000

• Annual Payroll $4.3 B

• Customers 10,000

• Locomotives 8,300

Union Pacific

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Union Pacific in Washington

2013 Fast FactsMiles of Track 532

Annual Payroll $26 M

In-State Purchases $100.1 M

Capital Investment $18.6 M

Employees 336

U.S. Jobs Supported* 1,512

Charitable Organizations 38*Each American freight rail job supports 4.5 jobs elsewhere in the U.S. economy.

(Association of American Railroads)

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2013 Business Mixby Freight Revenue $20.7 Billion

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U. P. Commodities Carloads

Intermodal 3.6 million

Coal 2.0 million

Chemicals .9 million

Industrial .9 million Agricultural .8 million

Automotive .4 million

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Key U. P. Intermodal Corridors

Oakland

LA

St. Louis

Chicago

Omaha

Eastport

Twin Cities

Duluth

Denver

Powder River Basin

West ColtonLA

Calexico

Nogales

Eagle Pass

Laredo

Brownsville

Houston

Memphis

DallasFt. Worth

Phoenix

Shreveport

West Colton

San Antonio

El Paso

New Orleans

Seattle

Omaha

Eastport

Twin Cities

Duluth

Denver

San AntonioSan Antonio

El Paso

St. Louis

Dallas

Oakland

LALALALA

Sunset Route

Central Corridor

I-5

North – South Gulf

SLC

DenverN. Platte KC

Portland

JOLIET

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Passenger Service on Union Pacific Today

Weekly Riders

Weekly Trains

On-Time %

UP Commuter (incl Capitol Corridor) 647,000 1,450 94%

Amtrak on UP 89,000 328 85%

Total UP 736,000 1,778 92%

LA

El Paso

Seattle

Twin Cities

Duluth

Ft. Worth

Denver

Portland

Bay Area

LA

San Antonio

Salt Lake City

KC

Austin New Orleans

Amtrak on UPCommuter Services

North Platte

Memphis

St. Louis

547,000Weekly Riders

47,000Weekly Riders

53,000Weekly Riders

Chicago

Houston

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UP Capital Spending TrendsIn Billions

~$42 Billion since 2000*

*Includes Cash Capital, Leases and Other Non-Cash Capital

$2.3 $2.2 $2.3$2.0

$2.4

$2.8 $2.7$3.0 $3.1

$2.5 $2.5

$3.3

$3.7 $3.6~$3.9

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E

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Strengthening the Franchise

* Includes cash capital, leases and other non-cash capital.

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Operating Infrastructure of Union Pacific

• 32,006 mi route • 112 Million ties

• 12,245 mi of yards, sidings, & industry leads

• 31,434 Turnouts• 18,031 Bridges (417 mi)• 296 Tunnels (62.2 mi)• 26,441 Active public crossings• 6,793 Buildings• 62 Auto or intermodal ramps• 62 Car and loco shops• 45 Major switching yards• 12,500 Signal facilities

1111

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How We Built Track Over 150 Years Ago

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Today’s Track Design & Construction• Foundation• Drainage• Concrete ties • Continuous welded rail

293/27/2008

CrosstieCrosstie

Compacted Subgrade 12-18 InchesCompacted Subgrade 12-18 Inches

EarthEarth

Sub-Ballast 6 - 8 Inches Sub-Ballast 6 - 8 Inches

Ballast 12 Inches Below Bottom of TieBallast 12 Inches Below Bottom of Tie

Roadbed Construction Roadbed Construction

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141#2003136#

2003115#1925

75#1890

90#1900

133#1940

56#1869

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UPRR – Capacity Projects in the PNW

• Install Centralized Traffic Control (CTC) • Install CTC on eleven (11) sidings between Eastport and Hinkle.

• Sidings• Union Pacific will extend the sidings at Cheney, WA, and Wells, WA and install a

new siding at Sun Harbor , WA( Burbank)

• Mosier, OR Double Track Project• Construct 5.8 miles of 2nd main track

• Milam – Gibbon – Bonifer Double Track Project• Construct 3.8 miles of 2nd main track

• Brooklyn Intermodal Yard ( Portland) Modernization • Modernize the yard including new loading tracks, additional parking, and a new

AGS inbound gate.

• Argo Intermodal Yard (Seattle) Automated Gate System (AGS) • Freight Mobility Strategic Investment Board (FMSIB)