1

NACo PresentationNaperville, IL April 27, 2011

Joe Bateman, VP Public Affairs

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Dir. Public AffairsTX/OK

Clint Schelbitzki

Dir. Public AffairsAR/LA

Drew Tessier

Dir. Public Affairs Northern CA/NV

Liisa Stark

Dir. Public AffairsOR/WA

Brock Nelson

Dir. Public AffairsAZ/NM

Zoe Richmond

Dir. Public AffairsUT/ID

Dan Harbeke

Dir. Corp. Rel. & MediaAaron Hunt

Dir. Port AffairsAndy Perez

Dir. Community AffairsSouthern CALupe Valdez

Public Affairs OrganizationSr. VP Corporate Relations

Bob Turner

VP Public AffairsScott Moore

VP Public AffairsJoe Bateman

VP Public AffairsJoe Adams

Dir. Policy & PartnershipsJoe Arbona

Dir. Public AffairsIL/WI/MN

Mike Payette

Dir. Public Affairs IL/Metra Wes Lujan

Dir. Public AffairsKS/MO

Ben Jones

Dir. Public AffairsNE/IA

Brenda Mainwaring

Dir. Corp. Rel. & MediaMark Davis

Dir. Public AffairsWY/CO

Dick Hartman

Dir. Corp. Rel. & MediaRaquel Espinoza

Dir. Community Affairs Border/San Antonio

Ivan Jaime

AVP Public AffairsHouston

Juan Carreon

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Odell

Dwight

Pontiac

Chenoa

Ballard

Normal

SPCSL Track 2AARRA HSIPR Track 2A Project : Awarded

Woodland Jct.

Chicago

St. Louis

SpringfieldRidgely

Bloomington

Joliet

Villa Grove

Findlay Jct.

E. St. Louis

De Soto

Salem

Mt. Vernon

Benton Jct.

Metropolis

Gorham/Chap

Dexter Jct.

Chester

Springfield

Sub

Joliet Sub

BNSFGalesburg

Nelson

Peoria

Rochelle

MP 126.4

Joliet

Chicago

Bloomington

MP 36.7

Mazonia

Hitt

Wilmington

Joliet IntermodalFacility

CP Justice

CP Canal

Brighton Park

St. Louis

RidgelySpringfield

BloomingtonMP 126.4

McLeanAthol

Lincoln

Elkhart

Auburn

Girard

Carlinville

Shipman

Wann

WR Tower MP 283

Godfrey

Alton

Project Description

1) Track Renewal Train (TRT) Dwight (NS Xing) to St. Louis (Q Tower) - 208 ML mi Concrete Ties & Premium Rail - 13 Sidings - 740K ties, 1.4M TF new Rail, 19K CL ballast

2) Construct 2nd Main Line New Const = 23.7 mi Total 2MT = 32.8 mi

Godfrey - Connect Godfrey & Shipman Sidings (15.8 mi)Girard - Extend Girard Sdg E/W to new CP’s (8.5 mi)Elkhart - Extend Elkhart Sdg E to new CP (8.5 mi)

3) PTC & Grade Crossings Dwight to Q Tower – including road modifications for crossings

4) Stations / Platforms Re-construct several station platforms

5) Passenger Equipment Purchase new passenger equipment

MP 249.32 Start

TRT Completed 4.2 Miles in 2008

MP 72.8

MP 187.65

MP 183.39

MP 168.42

2010 TRT Work Godfrey to Elkhart – 76.64 Mi.

March 5, 2011

New 2nd Main Line2010 TRT Work2011 TRT WorkTRT Work beyond 2011

Project Goals–2011 – Complete Main Line TRT work north of Springfield–July 2012 – 1st Segment 110 MPH track in Service –2014 – Complete Project 2A

2011 TRT Work Elkhart to Dwight – 95.62 Mi.

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Contracted Work

• Contractors to be determined:

– Track Construction

– Bridge / Culvert Work

– Fencing

– Grading

• Bid Packages dependent on Design Process

• General Contractors selected through contract specific pre-qualification process

• Construction Management – utilized for tracking ARRA requirements

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HOW TO DO BUSINESS WITH UP

• All suppliers must first register their business in UP’s database by visiting www.up.com and clicking on the “Suppliers” tab

Supplier Application

•Apply to Become a Supplier•Terms and Conditions•Supplier Diversity

Contacts

•Supply Group by Commodity/Service•Supply Group by Function

Select Link Complete and submit application

• Application is submitted to the supply category manager that handles the material/service type that is selected in the application

• Category manager will contact you to further discuss your organization’s capabilities and opportunities available at Union Pacific

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M / W Numbers Boost Class I Employment

• Continuing a slow, steady rise, employment on U.S. Class I railroads reached 155,842 in mid-March, up 0.87% from February and a 4.42% improvement over March 2010.

• Train crew employment (transportation, train and engine) increased to 62,627, up 0.78% from February and up 7.47% from March 2010

• The only employment group that was down from February was transportation (other than train and engine), which declined 0.41% from February to 6,608, though its numbers were up 2.56% from March 2010.

• A seasonal boost sent maintenance of the way employment to 34,994 in March, up 2.03% and up 3.23 % from March 2010.

11

NACo PresentationNaperville, IL April 27, 2011

Joe Bateman, VP Public Affairs