Linking America Together The partners: Highlights Union Missouri western Pacific Pacific Pacific Total mileage 9,577 11,464 1,719 Car fleet 69,274 55,178 6,117 Locomotives 1,589 1,303 146 Employes 29,163 21,700 3,000 Miles of average haul 711 425 502 The new system: Highlights Total mileage 22,800 Total car fleet 130,569 Total locomotives 3,038 New jobs 237 Gallons of diesel fuel saved per year 10,000,000 States served AR, CA, CO, IA, ID, IL, KS, LA, MO, MS, MT, NE, NM, NV, OK, OR, TN, TX, UT, WA, WY Countries served , Canada, Mexico Invested in Western Pacific track $90,000,000 Increased car availability through more efficient use of equipment 3,368 A new era New links for railroads for America

Most of us recall the Golden Union Pacific, Missouri Pacific Lakes to Southern ; Age of Railroading in terms of and Western Pacific, three his- from the Mississippi River to the giant steam locomotives, the toric railroads, will join their major seaports of the West Coast. excitement of meeting the daily human and material assets, their With combined trackage long , the adventure of pioneering experience and know-how, enough to reach nearly around the American West. in a single new system. the world, it will link vital trade Now another exciting era of They have applied to the In- centers and market areas rail transportation is at hand — terstate Commerce Commission which never before were accessi- an era of new railroad systems, for approval of a consolidation ble to each other on a single with strengths combined to creating a single system nearly rail system. heighten competition, serve rail 23,000 miles long, linking 21 It will be a truly transconti- users better with improved oper- states of the western two-thirds nental railroad, with connections ations and new efficiencies, and of America. to both Canada and Mexico. meet changing national needs. This cohesive network will This is the story of three stretch from the Pacific North- railroads leading the way into the west to the Gulf of Mexico and to new age of transportation, joining Mexico itself; from the Great their resources to link America together. "Reduced transit time to important gateways and seaports." Competition, opportunity, strength Consolidation of Union Pacific, It will strengthen and expand Missouri Pacific and Western the beneficial role the railroads Pacific will provide faster, more play in the communities efficient service and expanded they serve. business opportunities for shippers, improving their access "Strengthening to markets, to seaports and to America's hand in important "gateway" points, world trade." and in many cases significantly reducing the transit time of It will make important their shipments. contributions to the solution It will assure healthier competi- of America's energy problems, tion among strong railroads, to the vital task of re-invigorating and between railroads and other the nation's systems of produc- modes of transportation. tion, distribution and con- sumption, and to strengthening "Increased competitive America's hand in world trade. opportunities." And the consolidation will provide a strong central core to It will bring increased the nation's rail network, adding competitive opportunities to a stabilizing, unifying force in transportation users, giving them our transportation system. attractive new alternatives for the movement of their goods. "New career opportunities."

It will create new career oppor- tunities and strengthen employment security for employes of the three railroads, and add new jobs. The partners: Western Pacific Union Pacific Missouri Pacific Railroad Railroad Railroad Western Pacific is an innovative Union Pacific is known as one Missouri Pacific has attained and aggressive railroad in a of the best-managed railroads one of the fastest growth rates of highly competitive market. in America. Financially, it's one of any major American corpora- Its principal freight is pro- the healthiest railroads. tion. Its return on investment cessed food products from the UP serves 13 western states on a has been one of the highest of rich agricultural areas of Nor- system 9,577 miles long. It's any railroad. thern California. Other important growing rapidly in import-export Missouri Pacific serves 12 cargos on its 1,719-mile system traffic, intermodal, grain and states of the Midwest, Middle are products involved in coal transport. UP serves Pacific South and Southwest on 11,464 foreign trade. ports in Southern California miles of track. It is a major Western Pacific's terminal at and the Northwest. rail link to Mexico and Canada. Oakland, California, serves one of Its freight revenues are Rapid growth of the Sun Belt the nation's main doorways to distributed evenly over five com- has aided its profitability. Its overseas markets. modity areas: farm products, lines run through the heart of soda ash and chemicals, forest the petroleum and petrochemical products, food products and coal. industries in Oklahoma, Texas Over the past 10 years, and Louisiana. UP has invested $3.6 billion in Chemicals top the list of com- modernization and expansion. modities MoPac moves. Grain It is one of the most highly com- ranks second. Other important puterized railroads in the world. shipments on MoPac are coal, automobiles and auto parts. The time is right This consolidation comes at "Most railroad facilities were a time when national transporta- constructed in an earlier, "An effective tion needs, and the means expansionary era with very little pro-competitive impact." by which they are met, are under- competition from other modes. Consolidation of Union Pacific, going a critical assessment. There are now too many miles of Missouri Pacific and Western Today's railroad system is still track and other facilities of based largely on complicated, Pacific meets these challenges the wrong kind or at the wrong squarely. interconnected roads that dupli- location to survive the new com- Because the combined system cate services, pursue different petitive climate. The railroad pools the resources and expertise priorities and compete against industry must make substantial of three railroads, it provides national truck systems and changes in its economic and opportunities for new efficiencies other forms of transportation. physical structure." And: in operations, equipment utilization, administration and "The railroad industry "Since no single company can management which none of the must make substantial control a shipment from begin- three could realize individually. ning to end, service reliability is changes in its economic Because it will operate as unsatisfactory. Time delays and physical structure." a single coordinated system, the result from poorly coordinated new railroad combination will The U.S. Department of Trans- operations in handling inter- eliminate the time delays and lack portation has said: change traffic, especially when of central control which char- three or more railroad companies are involved." acterize a fragmented system. The U.S. Department of Justice has said: "Compete strongly in the "It is clear today that new climate of govern- vigorous intermodal competition ment deregulation." has eliminated any continuing And because the consolidated need for elaborate regulation of the rail industry. Moreover, railroads will operate with unity of purpose under more effi- it is clear that the rigid regulation cient, streamlined procedures, of the railroads has largely crippled them as competitive they will be better equipped forces and, in many cases, has to compete strongly in the new resulted in actual or threatened climate of government deregula- financial ruin." tion, free of many of the competitive disadvantages of the past. 131ue Mountoin, of eastern Oregon

Ozark Mountain area of southern Missouri.

Western Pacific train in California's Canyon. "Faster hauls over longer distances with central control." A competitive single system Together the Union Pacific, This combination will fill the • Time gained and costs saved Missouri Pacific and Western unmet needs of shippers by in reducing freight interchanges Pacific form an end-to-end providing single-system service among different railroads. system, a logical combination for the first time among some • More reliable transportation, with central control over an lengthening and extending areas of the most important transpor- of service, rather than dupli- tation centers and richest entire haul. cating or paralleling them. producing regions in America. • Healthier competition among Why is a single system so all kinds of freight carriers. important? Here are some of its Union Pacific advantages: Missouri Pacific SEATTLE • Faster hauls over longer dis- EASTPORT tances, making the most of the railroads' fuel efficiency. Western Pacific

NORTH PLATTE

OMAHA

SACRAMENTO

SAN FRANCISCO

OAKLAND

LOS ANGELES

NEW ORLEANS

GALVESTON SAN ANTONIO CORPUS CHRISTI

BROWNSVILLE Export grain in California. Paper in Arkansas. Coal in Wyoming. "Single-system benefits for a wide variety of shippers." Wider market horizons The UP-MoPac-WP single have single-system access to service will mean significantly system will broaden and extend Gulf and Pacific ports, an impor- faster freight movements the market reach of its users, tant factor in boosting exports on long hauls. creating new business opportuni- to Asia and Western Europe. For example, the combined ties and benefiting consumers • Utilities and industry in the railroads can cut transit time be- by introducing new competitive South and Southwest will have tween Los Angeles and the alternatives in transportation. a direct competitive rail link Mississippi River by as much as to Western coal supplies. 20 hours; between New Orleans "New business • Food producers in the Pacific and the Pacific Northwest opportunities." Northwest and Intermountain by almost a day; between Seattle- area will have single-system rail Portland and St. Louis by as Here are some of the advan- links to transportation gateways much as 17 hours for important tages this new single system will along the Mississippi River. "piggyback" intermodal service. make available for the first time: • A new, highly competitive Improved intermodal • Grain growers on the Great system of rail service will service will be stressed through- Plains will have single-system be available in the prosperous, out the system, as increasing access to major seaports on the growing Sun Belt. fuel costs divert more traffic to West Coast and most of the Besides creating wider hori- energy-efficient railroads. Gulf Coast. zons for its users, single-system • Western coal producers will

Support from shippers Shipper preference for single- tic about the ability of the con- efficient interchange and system rail service is emphasized solidated system to have an competitive service system." by the 60 statements of support effective pro-competitive impact for the consolidation which on the transportation "Efficient interchange the Interstate Commerce Com- marketplace. and competitive mission now has before it. For example, a transportation service system." The statements come from official of a grain company is shipper associations, port "extremely enthusiastic about A food shipper calls the proposal officials and businesses across a the prospect of having single- "a tremendous benefit," and wide spectrum of the economy, system access to both the West a beverage shipper looks forward to "increased fleet control" and including manufacturing, food Coast and the Gulf ports." growing and processing, mining, An industrial shipper says the "greater equipment availability." utilities, retailing and others. consolidation "would be a posi- These rail users are enthusias- tive step towards establishing an Union Pacific rail yard in North Platte, Neb. Missouri Pacific's Centralized Traffic Control Center in Little Rock. Ark. "Increased car availability throughout the new system:' Combined for efficiency Operating as a single system, full interchange of computer "Saved: 10 million Union Pacific, Missouri Pacific capability. and Western Pacific can attain Consolidated traffic depart- gallons of diesel efficiencies not available to them ments will simplify and expedite fuel per year." as individual railroads. ratemaking and development Now, in this consolidation, an of new services; shipper service "Increased car will be concentrated in one even greater energy saving is promised: 10 million gallons of availability." system, rather than three. diesel fuel per year. Seven million The three railroads' strengths Together they have more than will be combined in maintenance gallons of that saving will result from the diversion of truck 130,000 freight cars of all kinds. and modernization. More That means increased car avail- traffic as 25,000 more truck trail- than $90 million will be spent ers a year ride "piggyback" on ability throughout the system. over five years to upgrade routes Movement of empty cars will of the Western Pacific, and other the energy-efficient new rail system. That not only saves fuel; be greatly reduced. The combined capital expenditures are planned system will be better able to make a smooth transition it helps preserve our deteriorat- to allocate cars to meet peak to consolidation and streamlined ing highway system. demands. The long-haul, single-system operations. Consolidating terminal and railroad has a critical role to other services at some common play in moving coal and other points in the system will improve A boost for energy resources to where they're operations and reduce costs. needed. It's a vital artery in Shop capacity can be used to energy our nation's energy distribution better advantage through system. sharing of facilities. independence. A stronger, longer rail system, such as the UP-MoPac-WP, also A competitive, robust rail "Circuitous routes is essential to the re-invigoration system is essential to our coun- can be shortened." of our economic system. And it try's thrust toward energy will strengthen America's hand Circuitous routes can be short- independence. Railroads have big in world trade, speeding the jobs to do in conserving energy ened. For example, UP traffic movement of goods between and in moving vital energy between Omaha and Kansas City the seaports and the producing will use a MoPac route 106 supplies. The steel wheel on the steel rail and consuming areas of miles shorter. our country. delivers up to four times as "Full interchange much freight per fuel consumed of computer capability." as a truck on the highway.

Management information systems will be shared, providing

More jobs Together, these three railroads "Rail service has two years in which to conduct employ more than 53,000 men communities can count hearings. During this time all and women, sharing a century's interested parties will have oppor- heritage of accomplishments on for the future." tunities to express opinions. and hard work. The strength of the combina- Following the hearings, the Commission has another six "New opportunities in a tion means long-range continuity, with rail service months to render a decision. competitive, stimulating communities can count on for This process should be completed environment." the future. A strong feature by May 1983, and the consolida- Employes of the combined of the consolidation is that tion could be consummated by system will find new job satisfac- it does not call for any line January 1984. In the consolidation, Union tion in building a strong part- abandonments. Pacific and Missouri Pacific will nership, and new opportunities There'll be greater potential for in a competitive, stimulating new business in small towns be sister railroads, operated environment. and large cities, because good rail under the overall management While there will be some local service is a big factor in locating and ownership of a new company job adjustments, overall the a new business or industry. to be called Pacific Rail System, new system will need more people And a stronger, healthier rail- Inc. Pacific Rail will be a wholly- than before — 237 new jobs, road will mean more economically owned subsidiary of Union Pacific calling for the same skills to the communities it serves Corporation, presently the and dedication that built these — as a provider ofjobs, purchaser parent company of . Western Pacific great railroads. of goods and services, taxpayer To insure fair treatment of all and contributor to civic efforts. will become a wholly-owned employes, the three railroads subsidiary of Union Pacific Railroad. expect to spend nearly $52 How it works million over five years on person- Managements, boards Past into future nel protection, including reloca- of directors and stockholders tion costs and displacement allowances. have approved the consolidation Histories of Union Pacific, plans, which were announced in Missouri Pacific and Western Good neighbors January 1980. Pacific have often intersected in Request for approval of the the past, as each provided With these railroads pulling plans was made to the Interstate leadership and strength in the together, communities they serve Commerce Commission opening and building of the West. will see them playing an even on Sept. 15, 1980, in two separate Now their proud pasts are stronger role as good citizens and consolidation applications — projected into an exciting future, good neighbors. Union Pacific with Missouri as their resources and talents Improved service means a Pacific, and Union Pacific with unite to provide leadership and healthier local business climate Western Pacific. strength once again — in wherever the new system will The Commission has formally the new era of railroads, linking operate. accepted the applications, and America together. Union Pacific Railroad Department of Public Relations 1416 Dodge Street Omaha, NE 68179 (402) 271-3475

Missouri Pacific Railroad Department of Public Relations 210 North 13th Street St. Louis, MO 63103 (314) 622-2233

\**0.1

Western Pacific Railroad Department of Public Relations 526 Mission Street San Francisco, CA 94105 (415) 982-2100