SPRB Updates - 2009

January 6, 2009

Dear Valued Customers and Business Associates:

As we move into the New Year, I want to take the opportunity to provide an overview of the progress Union Pacific made during 2008. 

Union Pacific ended 2008 setting an all-time SPRB loading record for any year.  We loaded 13,212 trainloads of coal out of the SPRB last year, 496 more trains than in 2007 and an increase of 3.9%.  At the same time, Union Pacific also boosted its average tons per train to 15,489, a 1.1% increase over 2007.  Higher train weight and more trains hauled enabled Union Pacific to load 204,600,000 tons of coal out of the SPRB or 5.0% more than in 2007, also an all-time record.

On the entire Joint Line, both railroads loaded 24,829 trainloads of coal or 1,040 additional trains compared to 2007, an increase of 4.4%. 

Union Pacific loaded 1,118 SPRB trains in December for an average of 36.06 trains per day and met 99.7% of NCTA demand.  On the entire Joint Line, both railroads loaded a total of 2,119 trains in December, an average of 68.35 loaded trains per day.

The railroad loaded 244 trains of coal out of Colorado and Utah mines in December, meeting NCTA demand, but lower than normal due to coal production issues.  For the year, we loaded 3,777 trainloads of coal out of Colorado and Utah, down 4.3% from 2007.  Total tons shipped were down only 3.0% as the result of record-high tonnage per train.  The reduction in year-over-year volume was attributed to geological challenges faced by many of the mines and not due to demand.

Our train velocity and cycle-time performance for coal continue to support increased coal deliveries.  As we enter 2009, we remain committed to further improving train size and productivity.  We appreciate the continuing efforts of our customers, mines and the terminals to reduce delays in loading and unloading, as well as make investments in new loading and unloading systems and more track capacity. This helps all participants in the logistics chain by improving throughput. 

Union Pacific appreciates your business and support and we look forward to a new year and a fresh start with the economy.  As always, your ideas to improve the services we offer our customers are always appreciated. 

If you have any specific questions, concerns or suggestions, please feel free to contact your Union Pacific account manager. 

Our best wishes to all of you in 2009!

Sincerely,