Union Pacific Update September 22, 2016 North East Association of Rail Shippers Conference

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Marylou French
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1 Union Pacific Update September 22, 2016 North East Association of Rail Shippers Conference I Sam Calabro Assistant Vice President Domestic Intermodal Sales 1

2 Seattle Eastport Portland Twin Cities Duluth Chicago 2015 Fast Facts Oakland Salt Lake City Denver Omaha Kansas City Freight Revenue: $20.4 billion Route Miles Over 23 states: 32,000 St. Louis Employees: 47,500 Memphis Annual Payroll: $4.6 billion LA Intermodal 20% Industrial Products 19% Coal 16% Agricultural Products 17% Calexico Autos 11% Chemicals 17% Nogales El Paso Eagle Pass Laredo Dallas Houston Brownsville New Orleans Purchases Made: $9.7 billion 2015 Capital Spending: $4.3 billion Locomotives: 8,500 For the year ending 12/31/15 2

3 2016 Volume Outlook Updated April 2016 Agricultural Products - Global Grain Supply + Domestic Grain Demand + Import Beer Automotive? Sustained Consumer Demand + Parts OTR Conversion Coal - Price of Natural Gas - High Inventory Levels? Weather Chemicals + LPGs + Industrial Chemicals? Fertilizer - Crude Oil Industrial Products - Minerals + Construction + Lumber? Metals Intermodal + Domestic Highway Conversions - Retail Inventories - Transpacific Market 3

4 Strengthening the Franchise Replacement, Growth & Productivity, and PTC Targeting a Capital Plan of ~$3.75 B in 2016* Pending Final UP Board of Director Approval Infrastructure Replacement $1,825 Locomotives / Equipment $965 PTC $375 Technology / Other $190 Capacity / Commercial Facilities $395 *Includes cash capital, leases and other non-cash capital. Safe & Resilient Infrastructure Capacity Investments Southern Region Network Strategies Equipment Acquisitions 230 New Locomotives 450 Freight Cars Positive Train Control 4

5 Union Pacific Intermodal Seattle Tacoma Portland Twin Cities Fast Facts 2015 Units: 3.8 million LA Sparks Salt Lake City Lathrop Oakland Las Vegas Long Beach Tucson Nogales Intermodal Terminals Ports El Paso Denver Eagle Pass Council Bluffs KC San Dallas Antonio Houston Chicago St. Louis Memphis Shreveport New Orleans 2015 Volume: 44% International 56% Domestic 2016 Terminal Capital Plan: ~$100 million Expansions Underway: Dallas, Los Angeles, Portland, Laredo Service to nearly twice as many markets as competition Double tracking our line between Los Angeles and El Paso, improving speed and reliability Interchange Points Laredo 5

6 Intermodal Strategic Outlook Superior market coverage Increase Domestic highway conversion Focus capacity investments to grow in target markets Provide reliable and competitive service 6

7 $95M Approved YTD Annual Investment Cumulative Investment Intermodal Capital Investment ($MM) Significant Terminal Investment - $1.69B Cumulative Spend $250 $1,800 $1, Capital Spend $200 $150 $100 $50 $1,400 $1,200 $1,000 $800 $600 $400 $200 Portland Expansion Wrapup (Dec 16) Dallas/Mesquite Expansion Wrap-up (Sep 16) LATC Expansion Planning (2017) $0 $0 Pt. Laredo Expansion Continuance Spending Cumulative 7

Intermodal Domestic* -3% 428.7 414.3 International* -3% 383.6 373.

8 Intermodal Domestic* -3% International* -3% Volume Mix International 47% Domestic 53% Quarterly Drivers High Retail Inventory Levels Transpacific Market Challenges *Volume in thousands of loads 8

Rail Container Programs Provide The Broadest Saskatoon Market Coverage Calgary Interline Program with NS and Agent Roads Over 40,000 containers Serves US, Canada and Mexico Interline Program with CSX

Winnipeg Minneapolis Omaha Denver Kansas City Dallas Rio Valley San Luis Potosi Albany Syracuse Boston Toronto Buffalo Detroit Taylor New York Harrisburg Bethlehem Chicago Philadelphia Pittsburgh

9 Rail Container Programs Provide The Broadest Saskatoon Market Coverage Calgary Interline Program with NS and Agent Roads Over 40,000 containers Serves US, Canada and Mexico Interline Program with CSX Over 40,000 containers Serves US and Mexico Vancouver Seattle Tacoma Portland Reno Oakland Lathrop Los Angeles Las Vegas Tucson Salt Lake City Phoenix El Paso San Antonio Silao Laredo Monterrey Winnipeg Minneapolis Omaha Denver Kansas City Dallas Rio Valley San Luis Potosi Albany Syracuse Boston Toronto Buffalo Detroit Taylor New York Harrisburg Bethlehem Chicago Philadelphia Pittsburgh Baltimore Greencastle Chambersburg Cincinnati Norfolk St. Louis Memphis Huntsville Birmingham Houston Nashville New Orleans Tampa Montreal Charlotte Atlanta Charleston Savannah Jacksonville Titusville Orlando Miami EMP locations UMAX locations Both EMP and UMAX locations Moncton Halifax Auburn Toluca Mexico City 9

markets; Monterrey, Bajio Region and Mexico

Los Angeles Interline service to Canada and

the border and major Eastern and Western US

10 Mexico Intermodal Market Reach Canada Service between Chicago and major Mexican markets; Monterrey, Bajio Region and Mexico City Service from major Mexico markets to Los Angeles Interline service to Canada and the Eastern US via Chicago Service between the border and major Eastern and Western US markets Los Angeles El Paso Eagle Pass Monterrey San Luis Potosi Mexico City Chicago Houston Laredo Memphis Northeast Atlantic Southeast 10

Investing For Intermodal Growth Dallas total expansion ~$110M which

~$50M for over 30% increase in parking and over 60% increase in

and additional parking Dallas To Be Completed July 2016 Port Laredo

11 Investing For Intermodal Growth Dallas total expansion ~$110M which will increase both parking and track by 60% Portland (Brooklyn) ~$50M for over 30% increase in parking and over 60% increase in track capacity Port Laredo Phase I ~$40M includes new entrance, gate and additional parking Dallas To Be Completed July 2016 Port Laredo Phase I To Be Completed 4Q16 Portland (Brooklyn) To Be Completed December

12 Intermodal Summary Strong volume growth potential Highway conversion Superior market coverage Focus on high quality service Investing for growth Well positioned for the future Thank You 12

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