View 2008 Fact Book - Union Pacific

Company OverviewUnion Pacifi c Corporation owns one of America’s leadingtransportation companies, the Union Pacifi c Railroad Company(Company, UP or Railroad). The Railroad links 23 states in thewestern two-thirds of the country and serves the fastest-growingU.S. population centers. The Company maintains coordinatedschedules with other rail carriers to move freight to and from theAtlantic Coast, the Pacifi c Coast, the Southeast, the Southwest,Canada, and Mexico. The Railroad serves the East through majorgateways in Chicago, St. Louis, Memphis and New Orleans. Inaddition, UP is the only railroad serving all six major Mexicangateways and operates key north/south corridors for interchangetraffi c with the Canadian and Mexican rail systems. UP reachesnorth into Canada through the Eastport gateway in Idaho, aswell as through exchange points in Minnesota, Wisconsin andIllinois. That network, combined with a well-balanced and diversetraffi c mix, makes UP the premier rail franchise in North America,generating $17.1 billion in freight revenue in 2008.Union Pacifi c’s freight traffi c consists of bulk, manifest andpremium business. Bulk traffi c is primarily the shipment of coal,grain, rock and soda ash in unit trains. Access to the SouthernPowder River Basin (SPRB) coal fi elds of northeastern Wyomingis a key franchise strength. UP also provides direct routes frommajor grain-producing areas in the Midwest to domestic markets,Mexico and ports in the Gulf Coast and Pacifi c Northwest (PNW)for export.Traffic Classification - 2008 CarloadsBridged 3%Forwarded21%UPDestination15%Local61%Local = UP Origin + UP DestinationForwarded = UP Origin + Other DestinationUP Destination = Other Origin + UP DestinationBridged = Other Origin + UP Intermediate + Other DestinationFreight Traffic - 2008 CarloadsPremium41%Bulk34%Manifest traffi c is individual carload or less-than-trainloadbusiness, including commodities such as lumber, steel, paper andfood, transported from thousands of locations on Union Pacifi c’svast network. Union Pacifi c also accesses the large chemicalproducingareas along the Gulf Coast.The Railroad’s premium business includes the transportationof fi nished vehicles, intermodal containers and truck trailers.UP’s extensive automotive network handles 75 percent of therail-shipped automotive traffi c west of the Mississippi River.The Railroad also serves the international import market with itscompetitive long-haul routes connecting the West Coast ports andeastern gateways, particularly along the Sunset Corridor from LosAngeles to El Paso.The strength of this diverse franchise and effi cient utilization of theRailroad’s capacity enables the Company to provide its customerswith excellent service, which generates solid fi nancial returns forour shareholders.Business Mix - 2008 Freight RevenueIntermodal18%IndustrialProducts19%Manifest25%Energy22%Agricultural18%Automotive8%Chemicals15%3