Record Trainloads Of Coal Moving To Nation's Utilities

Union Pacific Sets Records for Monthly and Daily Performance

Omaha, Neb., December 6, 2006 – With winter energy needs nearing their peak, Union Pacific is moving record trainloads of coal from Wyoming’s Southern Powder River Basin (SPRB) and coal-producing mines in Colorado and Utah.

During November, Union Pacific moved 20 million tons of coal from the SPRB and Colorado and Utah, an increase of nearly 8 percent over November 2005. The railroad posted its third best average daily performance in the SPRB, averaging 35.7 trains per day. The movement of Colorado and Utah coal posted its best daily train numbers of the year in November, averaging 11.6 trains per day.

Union Pacific also set train size records during the months of October and November. UP trains moving coal out of the SPRB averaged 15,135 tons each—an increase of 200 tons over last year’s annual average. A new wheel-changing process at Bailey Yard in North Platte, Neb., helped UP achieve the increased tonnage record. Wheels are changed without removing cars from a train, saving handling and processing time. The enhancement has the potential to increase train tonnage out of the SPRB by more than 750,000 tons next year with no additional train starts.

"These records and process improvements are just two more examples of how committed Union Pacific employees are to meeting our customers’ needs," said Jim Young, president and CEO.  "Every day our employees are on the job to meet the nation’s demand for coal, food, construction equipment, and other items. And we will continue to look for new ways to handle rising demand."

Additional rail line improvements are expected to boost the railroad’s coal capacity in 2007. The completion of a third main line south of Reno Junction, Wyo., and five new train landing tracks just completed at the mines will help boost capacity on the Joint Line owned by UP and BNSF to more than 375 million tons. During 2006 the Joint Line is expected to support more than 350 million tons of coal.
Future improvements, including construction of a third main line north of Reno Junction, and a fourth main line south of Nacco Junction, Wyo., are expected to boost Joint Line capacity to more than 400 million tons per year. Grading is already underway on both of these projects and completion is expected in late 2007.

Jobs at Union Pacific

Currently, Union Pacific has job openings at many locations throughout its 23-state operating system. Opportunities are available in train service, skilled disciplines (e.g., diesel mechanics and electricians) and management. Interested applicants are encouraged to visit www.up.com and click on “Jobs at UP.”

About Union Pacific

Union Pacific Corporation owns one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, is the largest railroad in North America, covering 23 states across the western two-thirds of the United States. A strong focus on quality and a strategically advantageous route structure enable the company to serve customers in critical and fast growing markets. It is a leading carrier of low-sulfur coal used in electrical power generation and has broad coverage of the large chemical-producing areas along the Gulf Coast. With competitive long-haul routes between all major West Coast ports and eastern gateways, and as the only railroad to serve all six major gateways to Mexico, Union Pacific has the premier rail franchise in North America.

For further information, contact James Barnes at (402) 544-3560.

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.