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HomeMy WebLinkAbout11/05/2008 Council Presentation - Union Pacific Railroad Expanding Capacity BreifingTown of Marana Briefing • Brief Introduction on Union Pacific • Arizona's Footprint • Capital Investments in Arizona • Benefits of Double-Tracking the Sunset Route • Status Update on ACC Process • Example of Public Crossing Improvements - Marana Road • The Public Benefits of Rail • Arizona Contact Information • Questions and Discussion on Proposed Agreement between the Town of Marana and Union Pacific Railroad The Strenath of a Uniaue Franchise 2007 Commodity Revenue $15.5 Billion ~ Vancouver Portland `~ Los ~` Angeles Calexico Twin -- L EI Paso ~~ I Eagle Pass New Orleans Houston ~ Brownsville Mexico Calexico (2%Carloads) Nogales ~_ (11 %Carloads_ (X%) Percent of Carloads at Border Crossing . 1=XE •••^ KCSM Other Railroads & Short Lines Trackage Rights on Other Rail EI Paso (7% Carloads) Eagle Pass (17%Carloads) Laredo (59%Carloads) Brownsville (4%Carloads) Business Mix $1.44 Billion in 2007 Intermodal 20% Automotive 42% Union Pacific in Arizona Arlingto •.~ Rol I • •' ~•• Phoenix Magma Clifton =~ Picacho~ Yuma - Wellton Tucson Bowie • Employees 1222 • Miles of Track 691 • Customers 750 • Annual Spend $130.2 M Payroll & Purchases Investing in Arizona • Over $290 million in Capital Investment in Arizona, 2001-2006 • Over $150 million budgeted for Capital Investment in Arizona in 2007 • Capital Investment includes new sidings, yard capacity, double-track and maintaining existing infrastructure • Double-track project, planned Red Rock Yard and other capacity projects represent $1 billion Capital Investment in Arizona by Union Pacific (2005-2010) Double-Track Project Benefits Status quo of single-track is detrimental to the railroad, customers, communities, and consumers Adding more trains to a single track will increase congestion, slow operations, be inefficient Less efficiency leads to passed on to customers in Arizona Communities will crossings due to impatient drivers crossings delays and higher costs and, ultimately, consumers experience longer waits at slower trains, risking more making ill-advised decisions at State of Arizona .r~•L ~ 1 L ' ~ ~ ~~ ~~ YUMA TO MOBILE PROJECT LOCATION 'o TucsoN LOCATION - PROJECT LOCATION COCHISE TO SAN SIMON Sunset Route 1997-2010 2"d MT Implementation Plan ~O~ God 5~' ~~~~ ~e a~ . ~e Single ML ~ 2"d MT Installed in Current Year 2"d MT Installed in Prior Years 1997 Pre-SP Merger ~~~ roe Q Cumulative 2MT Miles ~ 175 150 ~ 125 N 100 75 3 50 C 25 a o 152 605 ~~~ 5~ ~a v° Sunset Route 1997-2010 Accelerated Design-Bid-Build Plan 2~~7'2~~8 ~O~ O~ G `.Q, e~~ • ,- ,~a ~~ e,~~~f- Qro ,~-~ "' C ~~_~~~~~~,~~~.~ Single M L 2"d MT Installed in Current Year 2"d MT Installed in Prior Years Cumulative 347 410 2MT Miles ~ 175 150 ~ 125 N 100 75 ~ 50 ~ 25 C a o '07 ~~~ ~ ~ ~ch~s ~v ~~ ~~ ~ ~~~ o~ ~ yy ~Z~~ y~ C7 Q~ o~ G~ ~~ Sunset Route 1997-2010 Accelerated Design-Bid-Build Plan 208 0~,~0~ ,~ G des eti Ga~~ ~~~. _` ~-® Grading 4 Niland ~', .' s~, .~ ,- P !' .~ .~ ., ., s i~ ~ai P ~, - _ ~~~ ~~.::= Single ML ~ 2nd MT Installed in Current Year 2nd MT Installed in Prior Years Cumulative 304 2MT Miles 453 ~_, ~ 1 1 N ~, 3 Q c,'~. ~O ~a ~- Grading o' G~ ~~ v ~, ~os Grading • Dirt Work 101 • Contracted in 50-100 mile segments • 3.8 million yards of cut and fill • Diversionary dikes • Issues - Water availability - Quality of fill Bridges & Culverts • 141 bridges = >10,000 If • 60% of wooden ballast deck bridges replaced with concrete ballast deck • Standard bridge design -- Steel H Pile -- Pre-fab or cast-in-place caps - 30' concrete box girders (UP-BNSF Standard) • 730 culverts = > 130,000 If primarily install with jack and bore process • 30% bridges retired and replaced with culverts Track Construction • 1 million concrete ties from CXT Tucson facility • TLM utilized to assemble components including fastener installation • 141 RE CWR unloaded alongside existing main track • Ballasted with 40 car shuttle trains from two pits • Surfaced i n 3 I ifts • Dynamically stabilized • Destressed by stretching ACC Process and Example of Proposed Work ~.,~ M~ ~.~ ~~ .~ :~~..~ L .. ~~.~ .3 }, ;, .~.P.. W. Marana Road (DOT# 922399X, M.P.961.66) ~ ~ ~ ~ -^ ~ ,~r ~~ ~~~~ E~ F ;~° ~E' t a~ ~l ~'; vE Pr- ~, 4 g'a'y ~# i,q, ~p S 'i`~.. :9'3''"~ n.3.~ v i .'r` ~ 3 ~ f;4 . ~ ap . _..,:n 4 u ~mY S. y bY~ w'~.af~',rc oV~' dL&n ,a /c ~'Yi r.E'h t'4. ~. _~ .r '; } ~-., x .+~ `s i a,~~, ~ ~• UPRR Field Photographs March 1, 2007 Crossing MP 961.66 (Trico-Marana Rd) Looking East UPRR Field Photographs March 1, 2007 Crossing MP 961.66 (Trico-Marana Rd) Looking West ~:,w UPRR Field Photographs March 1, 2007 Crossing MP 961.66 (Trico-Marana Rd) Looking South W. Marana Road (DOT# 922399X, M.P.961.66) ~..~ a ... W. Marana Road (DOT# 922399X, M.P.961.66) ,oos }t1Y0 }~ I!~ fOM 1i82 roue • QQ /sarw T .r HvQONrK r-m •- •- ' '1\ ` - ti ~ ~. _. ~ ~ ~ ~ \ ' \ ~ ~, ~ .S=. ~ ~\ ' I ~ p ~ $ \ \F " ~yy i __ -_ O /~ ~~ -- ----~- ~-~--~- - -~-~- ~- ~-'-- -'-- f - i 4 k~ ~ - > ' ~ q ~, ~ O i ~~ ~+4 E N 1pM/t1 . 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S. Freight Ton-Miles by Mode* 2005 *Source: U. S. Bureau of Transportation Statistics Energy Consumption by Mode** 2005 **Source: U. S. Department of Transportation 790 Miles Per Gallon and a Lot More Leg Room Rail vs. Truck Advantage Inherent Efficiency of Rail Contact Information-Arizona Team Luis A. Heredia, Director Public Affairs for Arizona Union Pacific Railroad-Corporate Relations 1301 E. Harrison Street Phoenix, AZ 85034 (928) 373-8842 (402) 997-3454 L 1~ E l@ u p. c® m Aziz Aman, P.E., Manager of Industry & Public Projects Union Pacific Railroad-Engineering 1301 E. Harrison Street Phoenix, AZ 85034 (480) 415-2364 AAMAN @ up.com Steven Burke, AIA- Regional Manager Industry Development Union Pacific Railroad-Industrial Development, Marketing and Sales 3165 S. Alma School Road, Ste. 29 (PMB 218) Chandler, AZ 85248 (480) 704-3506 (480) 704-3505 fax ~ SBURKE@up.com Questions and Discussion on Proposed Agreement UPRR and Town of Marana have met on several occasions to discuss UPRR's double track construction project and Town's drainage improvement and grade separation projects. Discussions have identified the need to develop a 25 year agreement between the parties The Union Pacific Railroad will: - Cooperate and coordinate with Town's Barnett Channel Project. - Cooperate and expedite the review and approval of utility and right of way easement applications that comply with UPRR's standards. - Cooperate on inspection and maintenance of existing and proposed structures. - Cooperate with the Town on development of New Tangerine Rd Overpass. The Town acknowledges that UPRR will not be expected to make any funding contribution to the cost of this grade separation project unless it includes the closure of an existing public at grade crossing somewhere in the Town. The Union Pacific Railroad will: - Contribute ten percent for non federally funded projects and five percent for federally funded projects of the cost of theoretical structure as defined under federal law and regulation for construction of grade separation projects listed below which will result in the closure of an existing public at-grade crossing. The Town and UPRR will negotiate in good faith at the appropriate time concerning the timing of such funding for the following: - Marana Road Overpass at RR MP 961.33 - Moore Road Overpass at RR MP - Avra Valley Road Overpass at RR MP -Twin Peaks Road Overpass at RR MP 970.18 - Cortaro Road Overpass at RR MP 972.01 - Ina Road Overpass at RR MP 974.03 The Union Pacific Railroad will: - The Town acknowledges that UPRR will not be expected to make any funding contribution to the cost of any grade separation project that does not include the closure of an existing at grade crossing, except for the construction of the Tortolita Blvd. grade separation project at RR MP 959.43, which will not result in closure of an at grade crossing, UPRR agrees to contribute ten percent if non federally funded or five percent if federally funded of the cost of the theoretical structure as defined under federal law and regulation. -UPRR will coordinate its projects with the Town so that in the event that utilities need to be relocated as part of the UPRR project, the utilities will be required to relocate to depths necessary to accommodate future Town projects. The Town of Marana will: - Provide support with the Arizona Corporation Commission (ACC) for UPRR's double track project with regard to additional tracks over and across at grade crossings within the Town of Marana's jurisdiction. -- Promptly review and approve UP's flood plain permit applications. Expedite review and approval of any permit application for UPRR's double track project within the Town of Marana's jurisdiction. - Execute UPRR's typical construction and maintenance agreements or licenses as are customary for projects on ra i I road right of way. z"^P +iaiM4 t 4't2mr+ ~+nh + xwcra~.-av,,:s,r~sk«a~,sw4" ,r,~u, .s vw,, w.',~.~~„,~m,:iz.fw ~u.?Mrv~. ,~,a1-n ~awhri++~"wtrck,»rb,~, r'?~.~,« v~~+~~+.~aa~:+x";~.,:~,wtvtas^#*~4;','.?+:~a~vw i~?;.c«rk,~*l: ..:~ ^d"s~"~~ 5t' e5.'^Nx.~+p+,f~*'~gs.~"T~Sgb, wah ~vp. ~~ ,~^,'~ M1k~~-~ `''an`r~ a~~`>T~'u"N,"~"r'~", +~wvi35'~5,.'.~,("'+~~ e ' r ~~ ~h .!kY x Grassing Hotline Industrial and Pudic Projedts ~ L~-~ergcn~y f1a;f!rnc~ioningSig~rah~ Arn~a Rsugh t1z'.zArnan tv9ar~dg~r Inarst,ialand ~" ~~ •~ ~. ~~~ ° ~ ~rosjir ~ wl~„ked ~~~ sing Pi~lie rro;, ~1:, ^ ' ' , ~ ~ 4 t~~ (800) 845-87 aaman~ ~p.ton3 ~,.. _ ~ ~ ~ y (480') r±1~-23E~4 Grassing Agreements, Right of Entry Parrl Earreli, Sr. i~a~ra, .. ;;ocrtracts Indrsstria6 Gevelop~nent pg`arreq~~~up.coin Steve Eurke, Niana~rr; Incir,strial Ueaelnpment {402) 544-8620 Ss°i rke@up,com ~ Investing in Arizona ~J ~,'~ ~,. (48~1~,7~43;r~6 ~ ~UTI ~ RRIAo Utilii t~cease A ~s~ ~r~esits y ' g "'~ ~r Where Does a Y Jean Pr~Sfe, Mana~>?r, vontracts Public Affairs-Ariznna Railroad Start? t ~~=~prebE~~~p,cam Lu s Here 3 a 0ire~tor f (nlic Flffairs (4C2) d4 z 8566 ianered~t~up.com ' Arizona's Economy 1923;3%3-884'Z Property i.HaSES ~ Proposed Red Rock !~ f7iike Sart'er; .`7r, Manag°r, Peai Estate Rail Switching Facility t ?r msattlerCrsp.com ~,_~ rrr (4~r - . ~.r-R641 ~ protecting Our b Environment a Property Sales E~ nay rZ~~ ~ r Sc'~~or, kfa~z,3er, Pea± E:stste ~ Fual-E(Picient T jiobi50la~uoe~m~ Shipping t b ~, (~t0r;~ `. 44 €553 ~ T ,r Comman~~y Spotlight `.:' Investing in Cammunlties pion Pacific is investing heavily in Arizona to help provide the goods ceded to fuel the state's growing economy. uch of UP's investment centers on adding a second track ta, or double- acking, its historic Sunset Route--the railroad's 760-mile corridor etween Las Angeles and El Paso. This heavily traveled corridor carries bout 20 percent of all UP traffic. he route was originally built by Southern Pacific Railroad. Construction egan in Los Angeles in 1877 and rails reached Tucson in March 1580. he route reached EI Paso in May 188I. Southern Pacific's premier ~ssenger train an the route earned the name Sunset Limited. Copper 'posits in Southern Rrizona were an initial passenger attraction, but 1894 winter resorts in Tucson and Phoenix soon filled the passenger sins with affluent vacationers. day the Sunset Route handles marine containers stacked two high on ruble-stack trains, and construction materials slumber, plywood, steel id cement) that are important to the region's growth, ass than one quarter of the Sunset Route was double-tracked when UP quired it in 1996 as part of its merger with Southern Pacific. By the id of 2007, 410 mHes, or 54 percent of the route, was double tracked. ~e work has already improved service and added capacity for growth in izona and the region. BUILDING AMERICA 2 COA'iMUNITY TIES WHERE DOES A RAILROAD START? AND WHERE DOES IT FINISH? Every day, Union Pacific trains pull through 23 states and 7,000 communities. Food and crops, fuel and lumber, everything that communities need to survive--and to thrive-rides on our rails. Indeed, many of these cities aril towns were founded when the railroad first laid its tracks. Frain our perspective, the Union Pacific Railroad begins in each community we touch. Every town, your towin, is odr hometown. And the daily concerns and issues you face--from protecting the environment, to ensuring public safety, to economic growth-are our concerns, as well. A relationship that began when the West W8S 5ett~ed. More than 146 years ago, President Abraham Lincoln signed the Pacific Railroad Act. With this historic stroke of a pen, the stage was set for Union Pacific to open the American West to settlers and, in the process, unite a continent. it took an army of 20,000 men, working 12 to 16 hours a day, seven days a week, for six years. They crossed hundreds of miles of desert, pushed into mountains and forded streams and rivers to connect America by rail. It was a remarkable feat, as the system was built primarily by hand. With the driving of the Golden Spike on May l0, 1869, the route was complete, and a vast, largely unpopulated region was poised far growth. The transcontinental route heralded the industrial Revolution and modernized transportation. Today, many communities throughout the railroad's system can trace their origins directly to a Union Pacific depot. 49,000 Union Pacific employees are working, day and night, for the good of those communities, our customers, our shareholders and one anofher. ARIZONA'S ECONODY RASED ON DANOFACTORI G A D DINING. The first thoughts that come to mind about Arizona usually are tourism and retirement, But manufacturing , is the state's prime source of income, with mining a close second. Electronics, fabricated metals, plastics, precision machinery and agricultural chemicals and equipment are al! important to Arizona's economy. PROPOSED RED ROCK R,4IL SWITCHING FACILITY. Union Pacific has proposed to construct a new rail yard to meet the demand for increased freight rail service in Arizona. Since 1999, UP business has increased 46 percent and is driven by growth in lumber, cement, automobiles, ethanol and other critical supplies in Arizona. The railroad's current Arizona rail yards, located in Tucson and Phoenix, are at capacity with no room far expansion. For Union Pacific to meet the growing demand for goods movement in and out of Arizona, more rail infrastructure is needed. The proposed Red Rack Yard would be among the dozens of similar rail yards in Union Pacific's 23-state, 33,000-mile network. Nowever, the new yard will be built with modern best-practices that address noise and environmental concerns. Union Pacific performed an exhaustive search for a location in Central Arizona. Other sites were considered but were ruled out due to the grade and ARIZONA i Ok1NDATION GRANS I ARIZONA. Union Pacific Foundation grants to nonprofit organizations support education, health and human services, and charitable outreach, and reflect Union Pacific Foundation's 49-year tradition of supporting community and civic programs. Arizona Community Foundation, Phoenix Arizona Heart Foundation Inc., Phoenix Arizona Latino Caucus foundation, Phoenix Arizona Railway Museum, Chandler Arizona Recreation Center for the Handicapped, Phoenix Arizona Science Center, Phoenix Arizona Theatre Company, Phoenix Arizona Zoological Society, Phoenix Banner Health Foundation, Phoenix Casa De Los Nines Inc,, Phoenix Catholic Community Services of Southern Arizona inc., Tucson Chicanos Por La Causa Inc., Tucson Diocesan Council for the Society of St Vincent de Paul Diocese of Phoenix, Phoenix EI Ria Health Center Foundation Inc., Tucson Foundation for Blind Children, Phoenix Foundation for Senior Living, Phoenix Friends of Saguaro National Park Inc., Tucson Housing America Corporation, Yuma Make a Difference, Phoenix MobiCe Meals of Tucson Inc., Tucson Operation Homefront Inc., Tucson Patrons of the Arts lrr,, Nogales Phoenix Art Museum, Phoenix Phoenix Children's Hospital Foundation, Phoenix Phoenix Theatre Inc., Phoenix Rio Rica Fire District, Phoenix The Salvation Army, Yuma Santa Cruz County Young Audiences Inc., Nogales Sierra Vista Volunteer Interfaith Caregiver Program 1nc., Benson Southwest Human Development, Phoenix St. Andrew's Children's Clinic Inc., Nogales St. Mary's Food Bank, Phoenix Tohano Chul Park Inc., Tucson Tucson Museum of Art, Tucson United Way of Tucson and Southern Arizona,. Tucson United WVay of Yuma County, Yuma Valle DeE Sol Inc., Phoenix Xico Inc., Mesa Yuma Fine Arts Association Inc., Yuma Yuma Reading Council, Yuma THE PRINCIPALS' PARTNERSHIP SCHOOLS IN ARIZONA. Catalina Magnet High School, Tucson Cholla Magnet High School, Tucson Cibola High School, Yuma Downtown Alternative Nigh School, Tucson Howenstine Magnet Nigh School, Tucson Kofa High School, Yuma Luis High School, Yuma Mary Merideth School, Tucson Nogales High School, Nogales PACE Alternative High School, Tucson Palo Verde Magnet High School, Tucson PASS Alternative High School, Tucson Pierson Vocational High School, Nogales Project Moore, Tucson Pueblo Magnet High School, Tucson Rineon High School, Tucson Sabine High School, Tucson Saguaro High School, Tucson Santa Rita High School, Tucson Teenage Parent Program, Tucson Tucson Magnet High School, Tucson University High School, Tucson Vista School, Yuma Willcox High School, Willcox Yuma High School, Yuma Union Pacific has 686 miles of track in Arizona, as shown above. 6 COIv9f~9UNITY TIES IN~ESTIC IN COUNITIES ACROSS THE COUNTRY. The Union Pacific Foundation was established in 1959 as a way to directly give back to the communities that support us. The Foundation awards generous grants for community and civic programs, as well as for fine arts and human services, in cities and towns where our employees live and work. We feel that the best way to invest in a community's future is by investing in its young people. Our signature giving program, The Principals' Partnership, focuses resources on a critical need in education-strong leadership. Union Pacific believes strong leaders build strong schools, and the result is a more highly educated, highly skilled workforce, as well as stronger more viable communities. The Partnership is a network of 1,©00 public high school principals from 21 states, all facing similar challenges, all working together to share their best strategies for success. The principals are supported by The Partnership's team of nationally recognized educators. Through its member principals, the program reaches nearly 71,000 teachers and 1 million students each year. UNION PACIFIC FOUNDATION CONTINUES THE PRINCIPALS' PARTNERSHIP I ARIZONA PUDLIC HIGH SCHOOLS. Union Pacific Foundation is granting $269,628 to fund The Principals° Partnership and projects submitted by na~profit organizations in Arizona. The Principals' Partnership, the signature giving program of Union Pacific Foundation, will continue to serve as a professional resource to 25 public high school principals in Arizona. This is the fourth year the program has been in Arizona. Additionally, the Foundation is providing grants to 40 nonprofit organizations in the state. "Union Pacific is honored to continue our association with the great organizations that help to make the communities in which our employees live and work a better place," said Bob Turner, president of Union Pacific Foundation. °We are also very proud of our award-winning program that supports public high school principals, called The Principals' Partnership. Union Pacific created The Partnership because we believe strong leaders build strong schools and, uhimately, stronger communities." of opportunities, including research, networking and workshops. Instead of aone-size-fits-all approach, the Partnership starts with the professional needs of each principal and offers an individuahy customized program to maet those needs. The program is offered at no cost to the school, the district or the principal. The Principals' Partnership was created seven years ago and is offered to public high school principals in key communities served by Union Pacific. The program extends to principals in Arkansas, Arizona, California, Colorado, Idaho, Illinois, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, Ok{ahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. The Principals' Partnership assists approximately 1,000 principals with responsibilities for more than 1 mil9ion students. The six-year-old program helps fulfill principals' leadership needs through a number Mefallic ores-copper, silver, gold and zinc-make up the largest commodity group shipped by rail from Arizona, while some 10 million tans of coal are shipped in to run the state's power plants. The Sunset Route, across the southern portion of Arizona, is the state's busiest. with its Los Angeles-EI Paso-Houston-New Orleans cmrr~ections. proximity of waterways including canals; homes, schools, a cemetery and existing roadways. It was determined that the Red Rock Yard site was the best location because it met the requirement of being between Phoenix and Tucson and si#uated along UP's Sunset Route, the main east-west rail corridor. The added rail capacity will enable Union Pacific to provide rail service to new and existing business, spurring the creation of more jobs and more capital hwestments. Insight Research Corporation conducted an economic employment and tax revenue impact analysis far the proposed Red Rock Yard. The study found that, as new rail-served businesses locate or expand in the AR12rJN'p 3 The principal terminal in Arizona is at Tucson, with a yard, and mechanical and locomotive maintenance facilities. (Phoenix is served by a branch line,) state, the total direct and indirect tax revenue over 2fl years will total $2.3 billion. A total of b,276 new and retained direct jobs; and 6,206 indirect jobs, were cited in the study. The cumulative economic impact is estimated at $25.6 billion, Union Pacific initially submitted an application wi#h the Arizona State Land Department far 1,463 acres but, after numerous public hearings and stakeholder conversations, the Red Rock Yard has been reduced to 917 acres. The application initiates the public bid process for State Trust Land. an ARIZONA 5 F.~FFNT ~SPPNz ONITY SPOTLIGHT, ^ In the iaSfi tQ yBar5, i(11!OCl pBCitl~ has InCVed 27 percent ITiDre ~.reighi, uSing 0171y 15 petGBn~ Across its operating system, Union Pacific has been singled out for its commitment to employees and I110re tlt@. the communities it serves. ^Trai~ts- haviltg it~~reased effieie~~y by 72 perven~ since Ia80-are three times more A Tap Military-Friendly Employer. feel eifleient than trookS For the fourth time in five years, G.t. Jabs magazine named UP one of the nation's top Military-Friendly Employers in 2007. UP placed second on the annual list of 50 companies, Criteria for the rankings ,:mr ~ , ,,~, .~~ ~ ,a ~ _ include assets dedicated to miEitary hiring, ReservelGuard policies, percentage of total new hires in the past two years who are veterans, and veteran recruitment, training and promotional programs. PROTECTING O~JR EN~iRON~ENT, NOW AND FOR THE FOTURE. Trains are already one of the nation's most environmentally-friendly modes of moving freight-and are three times more fuel-efficient than over-the-road trucks. But Union Pacific is aggressively working to become even cleaner and greener. In fact, we have the cleanest locomotive fleet of any of the North American railroads. To reduce yard emissions, Union Pacific pioneered the Genset switcher, which uses a modified low-emissions, EPA-certified, off-road diesel engine. We are also evaluating experimental technology, such as the Oxicat- equipped, long-haul locomotive and the DPF-equipped low-horsepower yard locomotive. The railroad also has developed a comprehensive plan to reduce unnecessary locomotive idling time. All new locomotives have Automatic Engine Stop-Start (AESSj equipmen# and older locomotives are being retrofitted with it. Approximatefy 40 percent of our locomotive fleet is now equipped with this technology which can save up to 24 gallons of fuel, per locomotive, per day, Since 2000, more than 3,000 new fuel-efficient, long-haul, high-horsepower locomotives have been added to Union Pacific's fleet. More than 2,000 older locomotives were retired, and almost 2,300 locomotives' diesel engines were overhauled or rebuilt. About half of our 8,700 locomotives are certified under existing U.S. Environmental Protection Agency Tier 0, Tier 1 and Tier 2 emission standards. Employees understand that protecting the environment is part of every job, and they are developing warld- class energy-conservation techniques to move more freight with less fuel. Since 1994, Union Pacific has improved fuel efficiency by more than 20 percent. In 2007, the railroad saved more than 21 million gallons of diesel fuel, mostly through Fuel Masters, an innovative program that rewards locomotive engineers for efficiently operating trains. Union Pacific's conservation efforts aren't limited to locomotives. For example, the company has recycled nearly 150,000 pounds of electronic equipment and nearly 6 million pounds of batteries since 2004. We operate and maintain numerous wastewater treatment facilities across our system. And Spill Prevention Control and Countermeasure plans have been prepared and implemented at 135 Union Pacific facilities that store, transferor use ail products. 2008 CALSTART Blue Sky Merit Rward. Union Pacific recently received the 2008 CALSTART Blue Sky Merit Award far the railroad's development of its second-generation Genset switcher locomotives. The annual award recognizes outstanding marketplace contributions to clean air, energy efficiency and a clean transportation industry. The Gensets are expected to reduce emissions of oxides of nitrogen and particulate matter by up to 80 percent and achieve a similar 16 percent reduction in fuel consamption. Union Pacific deployed more than 160 Gensets in 2007. UP Employee Receives Industry's Top Environmental Award. Debra Schafer, general director of maintenance of way -Environmental, recently received the John H. Chafee Environmental Excellence Award. Named after the late Senator from Rhode Island, a strong environmentalist who promoted the environmental advantages of rail transportation, Schafer received the award for developing innovative environmental management tools, creating and implementing the air emissions compliance audit program and leading UP's involvement in a federal Endangered Species Act planning permitting process. 100 Best Corporate Citizens. CRO (Corporate Responsibility Officer) magazine recently named Union Pacific one of the 100 Best Corporate Citizens for 2008. Large-cap companies in the Russell 1000 Index were ranked based on their efforts and performance in these areas: climate change, employee relations, environment, financial, governance, human rights, lobbying and philanthropy. ~ ~ ~ ~~~~ ~ .,,...~n,a.,,~ ;~ .~~.~~~ ~~arr,., ,,~. A w.«,~~«.,.~,~M~ FAST FACTS R~~~ . ~~ ^ Mifes of Track: 686 d Employees; 1,477 Annual PayroN: $109.2 M • Purchases Made: $24 M ^ Community Giving; $278,415 ~~ ~~._~'