Union Pacific Coal Volumes Set a Record in May

Milder Weather, Capital Investments Enhance Year-over-Year Performance

Omaha, Neb., June 14, 2006 – During the first five months of 2006, Union Pacific loaded a record 5,304 coal trains. Union Pacific Railroad loaded 1,090 coal trains in the Southern Powder River Basin (SPRB) in May 2006. This was the best May performance ever. This is an increase of 205 more trains compared to May 2005 when derailments and unstable track conditions occurred after severe weather.

In Colorado and Utah, Union Pacific loaded 347 trains during May 2006, the most loadings in the past six months and the company set a record in May for coal trains off the North Fork branch in Colorado, with 160 trains loaded.

"We value our coal franchise and are working hard to move our customers’ goods during a period of unprecedented demand for coal," said Jack Koraleski, executive vice president – Marketing and Sales. "Our strategic investments in our railroad infrastructure, equipment, people and technology are helping us to move more trains for our customers."

Total SPRB Joint Line loadings for May of this year averaged 65.4 trains per day, compared to 53.5 in May 2005 – an 11.9 train increase year-over-year. And, Joint Line train loadings for the first five months of 2006 increased by 500 trains -- from 9,248 trains in 2005 to 9,748 trains during the same period this year. The SPRB Joint Line is owned by Union Pacific and BNSF Railway.

As part of its infrastructure development strategy designed to increase capacity for coal trains and improve coal-delivery reliability, Union Pacific is installing additional Centralized Traffic Control signals along its lines across Iowa and making interchange improvements with eastern connections at East St. Louis. In mid-February, Union Pacific completed the bypass project in Marysville, Kansas. This was a multi-year project that moved the company’s double main line out of downtown, added six passing tracks and closed 11 grade crossings. This project will improve public safety and velocity for approximately 70 trains per day from 20 to 50 miles per hour.

In Colorado, capacity projects include the Winter Park grade separation, and sidings at Yarmony and Tolland.

In May, the company announced with BNSF Railway a $100 million capacity expansion plan on the jointly owned rail line serving the Southern Powder River Basin coal fields.

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, 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 James Barnes (402) 544-3560.

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