Public Benefit Partnerships

1
Public Benefit Partnerships
Scott D. Moore General Manager - Public
Partnerships

2
Union Pacific is committed to be a company where
Customers want to do business Employees are
proud to work Shareholder value is created
3
Union Pacific Railroad
Fast Facts
Seattle
Eastport

• Miles of Track 33,000
• Annual Revenue 11 B
• States Operated 23
• Employees 47,000
• Annual Payroll 3 B
• Customers 25,000
• Daily Trains 2,500
• Locomotives 7,000
• Freight Cars 87,000
• Capital Spending 2 B

Duluth
Portland
Twin Cities
Chicago
Omaha
SLC
Oakland
Denver
KC
St. Louis
Memphis
LA
Dallas
Calexico
Nogales
El Paso
New Orleans
Houston
Eagle Pass
Laredo
Brownsville
4
Business Dimensions 2003 - 11.0 B
5
Public/Private Partnerships
Union Pacific Believes There Are Many
Opportunities to Work With Public Agencies on
Mutually Beneficial Projects . . .

• Which Have a Clearly Defined, Direct Public
  Benefit
• Whose Outcomes Are a Clear Win-Win for Public
  Railroad

Win Means Gaining Something of REAL VALUE
6
Public Interest

• Rail Investment may be Best Bang for Taxpayers
  Buck When Solving Transportation Problems
• Efficient Movement of Goods
• Freight Traffic off Highways
• Environmentally Friendly
• Pollution
• Efficient Use of Fuel
• Economic Development Vehicle

7
Public Interest (continued)

• Vehicle Traffic Benefit
• Reduced Auto, Truck and Emergency Vehicle Delays
• Reduced Train-Vehicle Accidents
• Quality of Life
• Relocate Rail Facilities Out of Urban Core and
  Densely Populated Areas
• Passenger Rail
• Light Rail
• Commuter Rail

8
Concerns with Public Investment

• Passenger Operations
• Consume Scarce Capacity Without a Fair Return to
  Shareholders
• Strings Attached
• Blurred Ownership
• Open Access / Reregulation
• Trust Funds
• Skew the Economic Playing Field
• Grade Separation Projects
• Large Benefit to Motoring Public
• By themselves add no capacity

9
Union Pacifics Public Partnership Principles

• Partnerships must be voluntary for all parties.
• Public entities pay for the public benefits that
  are enjoyed by the public at large, and such
  public funds must come from public or general
  revenue sources.
• Union Pacific will pay for the private benefits
  that UP agrees will accrue to our company.
• Union Pacific will coordinate the planning of
  projects with public entities and provide
  reasonable input into this process.
• Public entities must not spend public funds to
  alter the existing competitive relationships
  among railroads.

10
PublicAgency WIN
PrivateRailroad WIN