Union Pacific Announces Preliminary Design And Entrance Of $90 Million State-Of-The-Art Intermodal Terminal In Bexar County

Safety and convenience for residents and motorists drives design decision

San Antonio, Texas, November 29, 2006 – Union Pacific today announced a preliminary layout design of its new $90 million state-of-the-art intermodal terminal in Southwest Bexar County.  The design will provide truck and auto access and egress points at Interstate 35, addressing traffic issues raised by officials of the Southwest Independent School District.

While Union Pacific has made the decision to place the access and egress points for trucks and automobiles at Interstate 35 at an additional investment of several million dollars, the company is currently working on land acquisitions to achieve the design needed to provide the additional convenience for residents and motorists in the Southwest Bexar County area.

"We are very pleased that our preliminary design was able to accommodate the needs of the Southwest Independent School District, the community and TxDot, while still addressing safety and efficiency," said Brian Gorton, General Superintendent of Union Pacific’s San Antonio Service Unit.  "This is truly a win-win solution."

Southwest ISD Board President Mike Frazier and Superintendent Velma Villegas expressed satisfaction that Union Pacific has been willing to recognize the safety issues concerning the bussing of students on Pearsall Road.

"The efforts of the community to change the entrance from Pearsall Road to Hwy. 35 have resulted in a partnership between UP and Southwest ISD that is a positive step for all involved in a project that will impact the south west region of Bexar County for years to come," said Dr. Villegas.

As announced this past July, the new 300-acre rail port will potentially serve as an economic development and job growth catalyst for the area. The new terminal will ship and receive containers and trailers with household goods and other items supporting retailers and distribution centers, as well as auto parts for the new Toyota plant in San Antonio.

The railroad’s intermodal volume has been experiencing substantial growth in recent years, which is a reflection of the many consumer goods, electronics, toys and clothing that are being shipped from Asia via intermodal services.

Intermodal trains are an environmentally friendly option for transporting consumer goods compared to long haul trucks.  Trains are three times more fuel efficient and produce one-third less emissions than trucks without the wear and tear on taxpayer-financed roads and highways.  This year, Union Pacific invested $2.7 billion that included track improvements across the railroad’s 38,000 miles of track.  Last year, Union Pacific invested $56 million in track improvements in San Antonio alone.

Directly creating as many as 200 jobs, the new facility is expected to result in improved, more efficient freight movement and increased safety in the area. Some of the benefits will include the reduction of more than 80,000 trucks per year within the San Antonio city limits, and the reduction of truck traffic on I-10 between San Antonio and Houston.  At the same time, train traffic will be more fluid as additional rail capacity is developed.

A combination of advanced computer systems and technology will coordinate all movement of railcars, trucks, trailers and containers at the facility.  Because of this technology, a truck entering or leaving the facility will be stopped at the gate for only 30 to 60 seconds, compared to the national average of four minutes.

Jobs at Union Pacific

Currently, Union Pacific has job openings at many locations throughout its 23-state operating system.  Opportunities are available in management, train service, and other skilled disciplines such as diesel mechanics and electricians.  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, 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 Joe Arbona at 281-350-7771 or 832-257-4363 (mobile).

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.