Banner Year for Industrial Development on Union Pacific Rail Lines

The railroad industry has long served as a catalyst for economic growth and prosperity. Last year, Union Pacific supported more than 200 industrial development projects designed to help rail-served customers start or expand their business. These facilities involved investments of $2.6 billion by Union Pacific customers and are expected to create more than 8,500 jobs.

“Industrial Development activities along Union Pacific Railroad were very robust last year,” said Steven J. McLaws, general director – Industrial Development. “We worked very closely with state and local economic development authorities on projects involving new site location and development of infrastructure to provide customers access to our rail system.”

For example, last year Union Pacific assisted Railex, a produce distribution company, with the location of a new refrigerated produce distribution facility in Wallula, Wash. From this new state-of-the-art distribution facility apples, pears, onions, potatoes and other perishable items originating in eastern Washington are being transported efficiently to the East Coast region.

The location of the new perishable product distribution facility provides shippers from several communities within Washington the advantage of the economies of rail with service equal to that of trucking, saving an estimated $4.5 million annually in transportation diesel fuel costs alone.

The 210 facilities supported by Union Pacific in 2006 included new ethanol facilities in Iowa, Nebraska, Kansas, Texas and Colorado; lumber distribution centers in Colorado, Idaho, Oklahoma, Texas and Washington; food and produce distribution centers in Washington, Arkansas, Idaho, Utah and Oklahoma; glass manufacturing facilities in Washington and Colorado; and a rail car manufacturing facility in Louisiana. Other industries that located along Union Pacific rail lines include facilities for chemicals, building products, fertilizers, plastics, food products and aggregates.

“Union Pacific welcomes business opportunities that can be accommodated at locations on our railroad where we can provide efficient service for a new customer without unreasonably affecting service to existing shippers and receivers,” said McLaws.

The Union Pacific industrial development team offers specialized services related to site and location analysis for business development. For more information about guidance, support and project specific assistance for customers desiring rail service on Union Pacific, please visit www.up.com and click on “Ind. Dev./Real Estate” at the bottom of the homepage. To assist customers in making their decisions to locate on the Union Pacific, our guidelines for new service locations can be found on our Web site at http://www.uprr.com/customers/updates/2006/industry_access.shtml.

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.