Union Pacific Orders 10 "Green Goat" Hybrid Locomotives for Southern California Rail Yard Operations

Omaha, Neb., August 15, 2005 – Union Pacific Railroad has ordered 10 low-emission, hybrid locomotives for use in its Southern California rail yard operations.

Costing $8.2 million, this is Union Pacific’s largest purchase of the hybrid-technology locomotives called "Green Goats." They are designed to cut air emissions by 80 percent and reduce diesel fuel use by 16 percent compared to conventional diesel-powered locomotives used in switching service. They operate in rail yards, sorting out rail cars from inbound trains and assembling outbound trains.

"These hybrid locomotives are part of the company’s commitment to air quality in California," said Bob Grimaila, vice president-environment and safety. "Union Pacific is taking significant steps to improve and protect the environment, including our recent agreement with the California Air Resources Board (CARB)."

In addition to the emissions reductions that will be achieved by the Green Goats, the Memorandum of Understanding (MOU) among CARB, Union Pacific and BNSF Railway will reduce diesel emissions in and around the state’s rail yards. The important new agreement calls for reductions that will be greater and quicker than any that could have resulted from regulatory or state processes.

CARB has estimated the MOU will reduce particulate emissions by approximately 20 percent at rail yards by June 2008 when all the program’s elements are phased in. Union Pacific expects to spend $20 million implementing the program.

Delivery of the hybrid locomotives is expected to begin late this year and continue into early 2006. UP based its first Green Goat in Fresno earlier this year under a cooperative plan with state and local environmental agencies.

The 2005 Green Goat hybrid locomotives meet the Environmental Protection Agency’s most stringent "Tier 2" locomotive emissions regulations and have been designated by CARB as "ultra-low emitting locomotives" because their nitrous oxide emissions are significantly less than the federal limit.

Hybrid switcher locomotives are powered with large banks of batteries. When energy stored in the batteries is depleted to a pre-set level, a small, low-emission diesel engine automatically starts to power a generator that recharges the batteries. The Green Goats will be built by RailPower Technologies of Vancouver, British Columbia.

"These hybrid locomotives are part of the important progress we’ve made during the past several years to modify our operations and continue implementing what we’ve learned from our aggressive work in our Roseville, Calif., rail yard," Grimaila said.

Previously, Union Pacific announced an emissions reduction plan in October 2004 to achieve a goal of 10 percent reduction in emissions by the end of 2007 in its J. R. Davis Yard in Roseville, using a combination of new technology, operational changes and new equipment. Since 2000, Union Pacific has reduced emissions from the Davis Yard by 15 percent, so the company actually will reduce emissions by up to 25 percent in just seven years.

Union Pacific Corporation owns one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada’s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America’s premier rail franchise.

For further information, contact Kathryn Blackwell, 402-544-3753.

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