1. Dan Harbeke, Director Public Affairs, March 23 2011
Union Pacific Railroad – ‘Building America’ for Economic Growth and Development in Nevada
Dan Harbeke, Director Public Affairs, March

2. The Strength of a Unique Franchise
Operate in 23 States
32,000 Miles of Track
43,500 Employees
Over 7,000 Communities
Vancouver
Seattle
Eastport
Portland
Duluth
Twin Cities
The Union Pacific is a unique franchise with a diversified commodity mix that we manage as six business units, all with good growth prospects.
(BUILD)
I’ve often said, if you were going to build a railroad, you’d build the Union Pacific, with our tracks covering 8 of the 12 fastest growing states in the country.
Add to that our extensive coverage of West Coast and Gulf ports…
and our unparalleled access to Mexico border crossings and our gateways to Canada, UP is positioned to be a vital transportation link - not only in the U.S., but for international trade as well.
Omaha
Oakland
Salt Lake City
Denver
Kansas City
St. Louis
Agricultural Products 19%
Los Angeles
Memphis
Intermodal 20%
Dallas
Calexico
Autos
Nogales
El Paso 8%
New Orleans
Industrial
Houston
Eagle Pass
16%
Chemicals
Laredo
Brownsville
15%
Energy
22%
Business Mix 2

3. Union Pacific Railroad in Nevada
Fast Facts
1,193 Miles of Track
558 Employees
$39.1 M Payroll
$26.4 M In-State Purchases
$73.7 M Capital Spending
$165,000+ Community Giving
28 Principal’s Partnership Schools
18 Non-Profit Organizations
Historical Significance
Est via Central Pacific
Acquisition of Western Pacific and Southern Pacific Railroads 3

4. Union Pacific Railroad in Nevada
TOP FIVE COMMODITIES SHIPPED IN 2009
(BY VOLUME)
Total Cars Originated in Nevada (000)
TOP FIVE COMMODITIES RECEIVED IN 2009
(BY VOLUME)
Total Cars Terminated in Nevada (000) 4

5. Capital Investment Supports Volume Outlook 2011 Estimate
$3.2 Billion Capital Plan
Safe and resilient infrastructure
Increased capacity spending
Sunset Corridor
Blair double track
100 new locomotives
Increased PTC spending
(In Millions)
Infrastructure Replacement $1,665
We make capital investments to enhance safety, improve customer service, increase productivity and add capacity to handle our customers’ growth.
Keeping what amounts to a privately owned steel highway in top condition is an expensive proposition. As a matter of fact, roughly 80 percent of our capital spending at Union Pacific goes to replacing assets that are worn out. After oil and gas companies, railroads top the charts as the most capital-intensive businesses today.
For example, our engineering replacement plan is almost $1.7 billion and includes replacing or installing more than 4.4 million ties and about 1,000 miles of rail. These improvements boost both reliability and network fluidity. As proof of that, in 2010, we reduced slow order miles by 58 percent since 2006, driving record velocity.
PTC $250
Capacity/ Commercial Facilities $580
$415
$165
Technology/ Other $125
Locomotives/ Equipment $580
PTC
Replacement
Growth and Productivity

6. UP Capital Spending Trends In Billions
~$31 Billion since 2000*
*Includes Cash Capital, Leases and Other Non-Cash Capital

7. Donner Pass Project and Nevada Investment
(9 of 13)
Donner Pass Project and Nevada Investment
Need double stack economies from Tom Haley
Route Comparison N
Feather River
Donner Pass
Diff Btr/(Wrse)
Miles (Weso to Roseville)
387
312 75
Ruling Grade
1.0%
2.65%
(1.65)
Weso
To Salt Lake
Feather River Route
Tunnel Notching
NEVADA INVESTMENT
UP has spent $150 Million in Nevada in last two years
Donner Pass Tunnel Clearance – Phase I
Sparks Yard Improvements
Surveilliance System
Track Improvements for Distributive Power
Nevada Siding Extensions
Federal TIGER application
We have two routes from Salt Lake City to Northern California. The former SP route over the Sierra Nevada mountains offers us a 75-mile route advantage versus the Feather River Route.
Very strategic UP advantage – 250 miles shorter than BNSF Chicago to Northern California. However, not cleared for double stacks so it forces us to use the longer Feather River route
Operating and Engineering came up with an innovative plan to open a route by raising the clearance of 15 of the tunnels by “notching” the ceilings
We can essentially double the capacity of an intermodal train and offer premium service in this competitive Northern California corridor.
In fact, UPS is very intrigued and has verbally committed to begin moving Northern California business to UP on January 1, 2010, because of our_ success and our ability to offer premier double stack service.
Donner Pass Route
15 Tunnels
Reno
Roseville
Sacramento
NEVADA
CALIFORNIA
Stockton
Oakland
WESO – ROSEVILLE
Feather River
Donner Pass
Donner vs Feather Fav/(Unfav)
% Var
Miles (to Roseville)
387
312 75
19%
Feet of Rise /Fall
8,576
11,326
(2,750)
(32)%
Ruling Grade
1.00%
2.65%
(1.65%)
(165)%
Degrees of Curvature
21,121
20,462
659
3 %
Avg Siding Length
6,230
9,055
2,825
45%
Percent 2MT
0.0%
55%
n/a
TPS Run-Time
10-12 Hours
8-10 Hours
2-4 Hours
15-20%
Fuel (EB-WB): IMDL
6,200-3,100
5,400-3,200
~1,800 RT
MFST
4,900-3,200
4,600-3,500
300-(300)
Even
Grain
3,800-3,400
3,100-4,100
700-(700)

8. Freight Car Terminal Dwell
Velocity Measures
AAR Train Speed
Freight Car Terminal Dwell
Good
Good
January
2003
January 2011
January
2003
February 2011
Measured from train departure at its originating terminal to train arrival at its destination terminal. All time is counted, including time at intermediate locations. All train categories are measured.
Average hours cars sit in terminals. They are measured from train arrival to train departure. All cars are measured.

9. Customer Satisfaction Index
Create Customer Value!
Customer Satisfaction Index
Our customer satisfaction results improved in 2008 to a best-ever 83, significantly better from where we were just a few years ago. It’s the proof that creating customer value is a win-win strategy for us and customers, and a better solution to facing the current economic challenge.
In no way are we content with our current level of customer satisfaction – it’s merely a strong foundation for further improvement.
GOOD 9

10. Economic Uncertainty 7-Day Carloadings (000)
2007
2008
2011
2010
2009
While 2008 was a great year in terms of service performance and customer satisfaction, the economy continued to impact volume across many of our markets. We anticipated that volumes would start off slow in the first half of the year, but gain strength in the second half. Instead, as the economy weakened further, volumes were considerably below our initial expectations. For 2008, we averaged 180,000 carloads on a 7-day average, compared to 190 in 2007 and about the same level we saw in 2003.

11. 2011 UP Volume
2011 vs MTD Carloadings
2007
2008
2011
2010
2009

12. Performance Sustainability
Volume Variability
Service Excellence
Upside Leverage
Furloughs/Stored*:
Service Performance & Volume
Train Capacity and Locomotive Practices
Surge Capabilities
Process Discipline
Capital Investments
Infrastructure Condition
1,502 TE&Y
1,128 Locomotives
35,000 Freight Cars
*As of 1/3/2011 12

13. Armour Yellow Outside – Green Inside
One train takes up to 300 trucks off congested highway
Rail is almost four times more fuel efficient than trucks
UP can haul one ton 830 miles on one gallon of diesel fuel
Rail transportation is three times cleaner than trucks on a ton-mile basis
There are additional benefits railroads bring to the communities beyond the goods we haul. Currently, drivers spend four billion hours a year caught on crowded roads, which wasted 2.9 billion gallons of gas Not to mention the emissions impact of idling cars and trucks.
The good news for those who fight the rush hour is that a single UP intermodal train can take up to 300 trucks off our highways.
Union Pacific can move one ton more than 830 miles per gallon of fuel. To put that in perspective, that means an average car could travel about 400 miles on one gallon of gasoline.
And in terms of emissions, the EPA estimates that for every ton-mile, a typical truck emits roughly three times more oxides of nitrogen and particulates than a locomotive does.
Union Pacific is aggressively working to become even “cleaner and greener.” Our employees understand that protecting the environment is part of every job, and they are creating world-class energy conservation techniques to move even more freight with less fuel and emissions.
UP Genset Yard Locomotive 13

14. Thank You & Questions