Marketing Strategy & Outlook Jack Koraleski, EVP Marketing and Sales

Marketing Strategy & Outlook Jack Koraleski, EVP Marketing and Sales

Strong Growth Performance Revenue $ Billions 2003-07 CAGR Revenue 8.9% Volume 1.3% ARC 7.5% $12.9 $14.8 $15.5 $10.9 $11.6 GDP 2003 2004 2005 2006 2007 2

Core Price Improvement 6.9% 5.2% 6.0% 5.0-6.0% 0.7% 1.5% 2003 2004 2005 2006 2007 2008E 3

Focus On the Customer Resources Process Improvement Customer Value Customer Satisfaction Capital Investment 4

Customer Satisfaction Key Satisfaction Drivers (2007 vs 2006) Overall Satisfaction at Post- SP Merger Record 15 of 35 Questions at Best Ever Levels 72 79 Corrective Action (Transportation) Competitive Prices Transit Times (Last 12 mos.) Consistency +4 +10 +13 +13 64 Local Switching +9 NCSC Problem Resolution +6 2005 2006 2007 Overall +7 Satisfaction Index Improvement 5

The Strength of a Unique Franchise Vancouver Diverse Business Mix Seattle Portland Eastport Duluth Twin Cities Fastest Growing States Port Access Oakland Salt Lake City Denver Omaha Kansas City St. Louis Border Crossings Los Angeles Calexico Nogales El Paso Eagle Pass Laredo Memphis Dallas New Orleans Houston Brownsville Intermodal 19% Energy 20% Agricultural Products 17% Autos 9% Industrial 20% Chemicals 15% Business Mix 6

Mexico A Key Link Revenue Growth ($Billions) 61% $1.37 $1.44 $0.89 $0.97 $1.11 Calexico Nogales El Paso Hermosillo Chihuahua Torreón Culiacán Aguascalientes Guadalajara Eagle Pass Monclova Saltillo San Luis Potosí Mexico Manzanillo City Lázaro Cárdenas Laredo Monterrey Querétaro Puebla Brownsville Tampico Mérida Veracruz Coatzacoalcos 2003 2004 2005 2006 2007 7

Linking Production and Consumption Agricultural Products $2.61 Billion Revenue (2007) Access Major Grain and Produce Regions Flexibility to Meet Demands of the Market Ethanol Feed/Processors Export Infrastructure Refrigerated Boxcar Fleet Grain Export Produce Dairy, Poultry Produce Dairy Dairy Cattle Cattle, Poultry Grain Export Major Grain & Grain Products Region Cattle, Poultry Grain Export 8

Linking Production and Consumption Chemicals - $2.29 Billion Revenue (2007) Access Chemical Gulf Coast Wyoming Soda Ash / Trona Ore Eastport Line / Canadian Interchange PNW and Gulf Ports Infrastructure Gulf Coast 5 Major Classification Yards 10 Major Terminals 6 Storage-in-Transit Facilities Port Eastport Line Storage-in-Transit Soda Ash / Trona Ore Major Classification Yard Gulf Coast 9

Linking Production and Consumption Energy - $3.13 Billion Revenue (2007) Access Most Abundant, Lowest Cost and Secure Fuel Source SPRB (72%) Colorado/Utah (17%) Other (11%) River Terminals & West Coast Ports Infrastructure Cycle Time Advantage from SPRB to Chicago, St. Louis, and Texas UP Coal Network SPRB Coal Utility Plant CO/UT Coal Utility Plant SPRB & CO/UT Utility Plant Water Port Coal From CO/UT Water Port Coal From SPRB & CO/UT 10

Linking Production and Consumption Automotive - $1.46 Billion Revenue (2007) Access 7 Assembly Plants 38 Auto Ramps Vehicle Ports Mexico Market Infrastructure 30%+ Ownership of Fleet UP Distribution Centers Private Distribution Centers Assembly Centers Gateways to Mexico Ports 11

Linking Production and Consumption Intermodal - $2.93 Billion Revenue (2007) Access Route Advantage: Fast Growing LA- Texas/Southeast Market North/South Lanes PNW - Memphis Northern California Chicago West Coast Ports Mexico Border Crossings Infrastructure New Terminals EMP Box Ownership 12

Linking Production and Consumption Industrial Products - $3.10 Billion Revenue (2007) Access Lifeline of the Economy Over 200 Lumber Mills Extensive Coverage of Mineral Deposits Rock Network Infrastructure Manifest Network & Terminals Aggregates Lumber, Paper Copper & Other Non- Ferrous Minerals Major Terminals Lime, Aggregates Industrial Sand Lime Lumber, Paper 13

Key Opportunities for Growth Global Demand Growing Dependence on Rail Legacy Contracts 14

Global Demand: Energy Quadrillion BTUs World Demand for Coal 225 200 175 150 125 100 75 50 25 0 57% 1980 1990 2000 2010 2020 2030 Million Kilowatt Hours U.S. Electric Power Generation by Fuel Type 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Coal Nuclear Natural Gas Renewables Petroleum 1980 1990 2000 2010 2020 2030 Source: Energy Information Administration Energy Outlook 2007 15

Global Demand: Energy Coal Seattle Far East Export Growth Oakland Western Market Development Base Midwestern Growth Chicago St. Louis Renewed Eastern Demand for Western Coal Memphis Long Beach Mexico Market Eagle Pass New Orleans Europe Export Growth via River 16

Global Demand: Energy Transmission Pipeline North American Pipeline Expansion (Miles) 4,753 Pipeline Express 3,974 1,460 1,152 1,781 2,410 3,353 UP Pipeline Express (Carloads) 6,054 8,490 1,960 2005 2006 2007 2008E 2009E 2010E 2011E 2005 2006 2007 Industry Sources 17

Global Demand: Energy Frac Sand Frac Sand (Carloads) 27,334 20,809 9,950 13,333 17,366 U.S. Rig Count 1,303 1,415 1,108 2003 2004 2005 2006 2007 2005 2006 2007 Source: Baker Hughes 18

Global Demand: Energy Wind Turbines Wind Turbine Carloads 2,700+/- 743 921 2006 2007 2008 Outlook 100 80 60 40 20 0 Estimated Wind Electrical Generation (Billion KW Hrs) 2005 2007 2009 2011 2013 2015 Source: Energy Information Administration, 2008 19

Global Demand: Energy Ethanol Origin Base 68% of U.S. Ethanol Production Destination Unit Train Development Flexible Franchise Unit vs. Manifest Interior vs. Forward Plants Billion Gallons per Year U.S. Ethanol Production Capacity 16 12 8 4 0 1999 2003 2007 2011 2015 Production Conventional RFS Source: USDA Projected Production Capacity 20

Global Demand: Grain and Food Drivers Increasing Population Changing Diets Biofuels Opportunity Flexible Ag Franchise Food vs. Export vs. Fuel Meat and Poultry Exports Fertilizer Potash Exports Millions of Metric Tons World Wheat and Coarse Grains & Milled Rice 2,200 2,100 2,000 1,900 1,800 1998/99 2001/02 2004/05 2007/08 Production Consumption Source: USDA, 2008 21

Global Demand Diverse Franchise Creates Opportunity Throughout Economic Cycles Strong Dollar Drives Imports and Overall Economic Growth Weak Dollar Spurs Export Growth and Substitution of Domestic Production for Imports Freight Revenue First Quarter 2008 Domestic 72% Other Imports 11% Mexico Imports 3% Other Exports 9% Mexico Exports 5% 22

Growing Dependence on Rail Highway Congestion Driver Shortages Highway Infrastructure Rail The Green Alternative Three Times More Fuel Efficient Than Trucks One Intermodal Train Can Take Up To 280 Trucks Off The Highway 2035 Source: FHWA HPMS data Source: FHWA HPMS Data 23

The Opportunity for Growth Total Western Market*: $103 Billion Truck/ Other 71% Western Rails 29% *Truck, rail, barge and air traffic haul lengths over 500 miles Source: Company Reports and Reebie Data 24

Auto Parts Intermodal Service Detroit Mexico Bi-directional Service Daily Seamless Interline Service Between Detroit and Mexico More Capacity Available to Handle Business Growth Equivalent to 35,000 Trucks Off the Highway Chicago Salem Detroit Laredo Mexico 25

Produce Railexpress Links Growers and Shippers with Retail and Food Service Distribution Currently One 55-Car Train Per Week Only Railcar Service in the U.S. Which is Faster than Refrigerated Trucks Starting Late 2008 Delano, CA Facility Wallula, WA Delano, CA Success Factors Train Starts Transit Days Truckload Equivalents Delivered On-Time Performance 78 4.4 15,015 99.9% So. Schenectady, NY 26

Legacy Contracts Total Percent of Revenue Re-priced 74% 6% 3% 3% 6% 8% 2008 2009 2010 2011 2012+ Percent of Legacy Revenue Chemicals 8% Autos 10% Intermodal 36% Industrial Products & Agricultural 2% Energy 44% 27

Going Forward Franchise Provides Opportunities for Growth in All Market Conditions Well-Positioned to Move the Resources the World Needs Legacy Contracts Customer Value Drives Growth and Price Improvement 5-Year Outlook CAGR Revenue 6-8% Volume 2-3% Price 5-6% 28