Majority of Locomotives Assigned to Union Pacific Commerce Yard Will Be Ultra-Low Emission By July

Environmentally Friendly Locomotives Cut Up to 80 Percent of Diesel Emissions

Genset Locomotive

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UP and the Environment

Commerce, CA, June 27, 2007 – Union Pacific today announced that the majority of switch locomotives used at its Commerce rail yard will be replaced with new environmentally friendly ultra-low emission diesel locomotives by the end of July. This is part of Union Pacific’s ongoing efforts to continue reducing air emissions in cooperation with federal, state and local environmental agencies.

The new 2,100-horsepower locomotives are called "Generator-Set," or "Genset," switchers. Each locomotive is powered by three 700-horsepower ultra-low emissions

U. S. Environmental Protection Agency (EPA) non-road Tier 3-certified diesel engines projected to reduce emissions of both oxides of nitrogen (NOx) and particulate matter by up to 80 percent, while using as much as 16 percent less fuel compared to current low-horsepower locomotives.

Union Pacific announced in January the delivery of the first of 60 Genset switcher locomotives the railroad had purchased for use in California. These new locomotives will be used to serve customers and sort rail cars for outbound trains and will replace many of the 95 older low-horsepower locomotives currently being used in Los Angeles Basin rail yards.

"Ten of the 60 ultra-low emission yard locomotives will be working at our Commerce rail yard as part of our voluntary efforts to reduce emissions that go beyond air quality regulations," said Bob Grimaila, Union Pacific's vice president-environment and safety. "Union Pacific is committed to preserving our environment by reducing emissions to help improve air quality and conserve fuel."

Of the ten Genset locomotives that will be working at the Commerce yard, four of these locomotives will work moving rail cars to tracks for loading or unloading intermodal containers or move rail cars onto a track to assemble an outbound train. The six remaining Genset locomotives are used to sort rail cars for outbound trains and deliver rail cars to local Los Angeles-based customers.

The Genset locomotives have helped UP reduce overall emissions in its Commerce, LATC (northeast Los Angeles) and Mira Loma yards by 28 percent while accommodating unprecedented growth in the volume of goods and materials moved through the yards. The railroad achieved these reductions using a combination of new technology, operational changes and new equipment and working closely with the California Air Resources Board (CARB) in a cooperative effort to improve California's air quality.

In the future, Union Pacific will continue to reduce its emissions. Since the 2005 baseline year evaluated in the CARB's Health Risk Assessments for UP's Commerce, LATC and Mira Loma yards, the company has already achieved more than a 17 percent reduction in emissions. By 2010, those same facilities evaluated in the CARB's Health

Risk Assessments will achieve a 30 percent reduction in emissions, from 2005 levels. Taken together with projected emission reductions of an additional 25 percent over the next 10 years, UP expects to achieve an overall emissions reduction of approximately 55 percent for the period from 2005 to 2020 at these three yards.

"Through our work with CARB, we've been able to analyze our operations to determine the most efficient ways to reduce emissions by focusing on specific areas of our very complex system and yard operations," Grimaila said. "We're taking a comprehensive approach to emission reduction that we hope will be the model for the entire rail industry."

Union Pacific has reduced emissions through the following efforts:

  • Fleet Turnover, Reducing Emissions - Since January 2000, UP has purchased more than 2,600 new fuel-efficient locomotives that comply with new, stricter USEPA Tier 0, Tier 1 and Tier 2 standards. At the same time, more than 1,700 older units were retired, and another 1,800 locomotives were overhauled (remanufactured) to meet the stricter standards.
  • Auto Start-Stop Installations - UP now has more than 3,000 locomotives, or 34 percent of its fleet, with computer-controlled devices that limit engine idling to only the time necessary to ensure safe and reliable operation. Approximately 75 percent of the locomotives permanently assigned to the Southern California area are now equipped with this technology.
  • Fuel Efficiency Improvements - Through fleet turnover and other improvements, UP has achieved more than a 12 percent improvement in fuel efficiency since 1995. Lower fuel consumption means fewer emissions.
  • Fuel Quality – more than 99 percent of all fuel dispensed into locomotives in California is Ultra Low Sulfur Diesel (ULSD), which is much cleaner than regular diesel used in many other applications.

Future actions the company will take to reduce emissions include:

  • Expanded use of technologically advanced yard locomotives such as Genset or Hybrid locomotives
  • Expected reduction of nitrogen oxide and particulate matter emissions by as much as 80-90 percent
  • Expected fuel consumption reduction of 16 percent

About Union Pacific

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 more information, contact Mark Davis at (402) 544-5459.

The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.