UP, CSXT Launch RailChem Connect Between Texas and Southeast to Benefit Chemicals Customers

Released: Oct 27, 2009

OMAHA, Neb., and JACKSONVILLE, Fla., October 27, 2009 - Union Pacific Railroad and CSX Transportation (CSXT) are proud to announce the launch of RailChem Connect, a coordinated rail service for expedited transport of chemicals between the Texas Gulf Coast region and the Southeast.

The new RailChem Connect service is the result of increased coordination and re-designed interline service by the two railroads for their chemicals market customers. The service allows shipments to bypass smaller rail yards for expedited transit between major hubs. These changes, along with increased operations coordination between the railroads, increase reliability of east- and west-bound service between Union Pacific-served chemical markets such as Houston, southern Texas and Louisiana, and CSXT-served consumption markets in the southeastern states. RailChem Connect offers more consistent transit times, faster equipment turns and a shorter route than previously available for chemical shipments in this corridor.

"Our teams are coordinating efforts to focus on an improved service product for chemicals customers by reducing transit times and tightening the variability in our delivery, significantly improving reliability for customers," said Diane Duren, vice president and general manager of Chemicals for Union Pacific.

The two railroads have reduced the transit time between major markets by 25 percent in the last three years while improving consistency by 23 percent. The improvements provide more reliable service, enabling chemicals customers to optimize their fleets of privately owned rail cars.

Over the same three-year period, the railroads have made a significant combined investment in RailChem Connect lanes for new capacity and upgrading tracks and facilities. "In addition to the inherent safety and environmental advantages that rail offers shippers, RailChem Connect creates advantages for Union Pacific and CSXT customers that allow them to derive even more value from rail," said Dean Piacente, CSXT vice president-Chemicals & Fertilizer. "The increased coordination between our railroads results in improved transit and consistency, which translates into enhanced supply chain efficiency, a more balanced cycle for private rail equipment and bottom-line cost savings for our customers."

For more information, visit www.railchemconnect.com .

Contact:
Gary Sease
CSX Transportation
1-877-835-5279

Tom Lange
Union Pacific
402-544-3560
tomlange@up.com

About Union Pacific
Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally responsible and safe mode of freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico, making it North America's premier rail franchise.

About CSX
CSX Corporation, based in Jacksonville, Fla., is a leading transportation company providing rail, intermodal and rail-to-truck transload services. The company's transportation network spans approximately 21,000 miles with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports. More information about CSX Corporation and its subsidiaries is available at the Company's web site, www.csx. com.