Status of the Railroad - A Message from Kenny Rocker, EVP, Marketing & Sales

To Our Customers,

This week we will welcome a group of customers to Omaha to talk through our plans for the future and to hear firsthand what matters most as we prepare to merge with Norfolk Southern. These conversations reinforced something I believe strongly: the best decisions get made when we listen. Your feedback is critical as we work to create a simpler, more seamless experience across the combined network. If you have questions, ask them. If you have concerns, share them.

Our integration planning efforts are already underway, and we are committed to engaging customers along the way to help ensure we are focused on what matters most to your business. The discussions this week are just the beginning of an ongoing dialogue. We will continue to share our progress, seek your input, and communicate broadly as we move forward together.

While looking ahead is important, our future is now. We remain focused on building for tomorrow while delivering the strong service performance you count on every day.

Operating Performance
Service held up well in August despite intermittent interruptions across the network, and we did it while handling our highest level of 7-Day Carloadings since December 2018. I want to thank our Engineering and Operating teams for the dedication and collaboration they showed in restoring service quickly and keeping your shipments moving. 

Our key operating metrics year to date through August reflect the consistency and dedication you expect from Union Pacific.

• Freight Car Velocity — 231 miles per day, a 6% improvement versus last year
• Terminal Dwell — 19.8 hours, an 8% improvement versus last year
• Train Velocity — 20.6 miles per hour, a 6% improvement versus last year
• 7-Day Carloadings — 168,582, a 2% improvement versus last year

While there are a few days remaining in September, operating metrics month to date are on track to show measurable improvement over August. Running the railroad well is the foundation for how we compete, and it is worth keeping in mind as you read what our competitors filed this month.

Our Application Moves Ahead
This month, the Surface Transportation Board (STB) denied the motions asking to dismiss our application before it was ever reviewed. That is the outcome we expected, and it means this case gets decided on the record rather than on claims nobody had to back up.

You may also have seen that our Class I competitors, along with a few short line railroads, filed their initial descriptions asking for operating rights across a combined UP and NS network. Let me be direct. Our opponents see this merger as an opportunity to advance their own commercial interests rather than invest their own capital to improve service and compete. They are asking the STB for a commercial advantage that has nothing to do with the merits of this merger. Remember what this transaction is. Union Pacific and Norfolk Southern connect end to end. We do not compete for the same traffic over parallel track.

We welcome the full analysis competitors must provide by Nov. 18. That is when we will finally see the data behind their claims and whether any of it holds up.

Thank You for Your Trust
Thank you for your business and for the trust you place in Union Pacific. We appreciate the opportunity to serve as part of your supply chain and remain committed to delivering the safe and reliable service you depend on. Our team is here to help you compete and win in the marketplace.

Sincerely,

Kenny Rocker
Executive Vice President, Marketing & Sales