Union Pacific Modifies Port Operation to Reduce Los Angeles Traffic Congestion

New Container Handling Policy Will Eliminate 500,000 Truck Trips

Omaha, Neb., February 28, 2005 – Union Pacific today announced it is modifying its near-dock container transfer operation near the Port of Los Angeles to reduce truck traffic in and out of downtown Los Angeles. The change will help eliminate an estimated 500,000 truck trips annually from Los Angeles-area highways such as the busy I-710.

Union Pacific’s Intermodal Container Transfer Facility (ICTF), located just four miles from the Port, will load and unload nearly all L.A. Basin international marine containers not handled on dock, eliminating the need to truck international containers to other Los Angeles-area intermodal ramps via busy highways.

International containers will continue to make the short four-mile trip from the Port to Union Pacific’s ICTF via truck, but once at the ICTF, international containers will be transferred to rail cars and then travel through the Alameda Corridor to destinations throughout the United States – favorably affecting traffic congestion and air emissions in the L.A. Basin.

The new container handling policy will consume most of the ICTF’s capacity. To accommodate anticipated growth at San Pedro Bay Ports, Union Pacific and Port Authorities are investigating expanding the ICTF to handle an estimated 1.6 million marine containers annually.

In action last week, the Port of Los Angeles Board of Harbor Commissioners directed its staff to work with Union Pacific on possible expansion and provide the Board with an interim status report. The proposed expansion would be consistent with phases contemplated when the ICTF was planned and constructed in the 1980s.

"An expanded ICTF will support Port growth and promote increased use of the Alameda Corridor," said John Kaiser, vice president and general manager of intermodal -  Marketing and Sales for Union Pacific. "The expansion also would help control highway congestion and truck emissions by eliminating millions of future truck trips annually."

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 more information, contact John Bromley at (402) 544-3475.

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.