Focused on What’s Possible

Union Pacific team,

It's been a truly remarkable summer on the railroad, and it's not over yet.

A few weeks ago, we had the honor of celebrating America's 250^th anniversary in Philadelphia - the nation's first capital - with the world's largest operating steam locomotive, Big Boy No. 4014. Nearly 100,000 people visited the display and participated in our 4^th of July Block Party with Norfolk Southern. The cross-country tour was attended by millions of people who came together to enjoy America and their neighbors. Hopefully, you enjoyed the celebration of America's 250^th by visiting or tracking the Big Boy from Mile 0 in Sacramento to Philadelphia, which was the capital in 1776.

I want to thank the Steam Crew and everyone who supported Big Boy on its first-ever coast-to-coast tour. Seeing it on eastern rails for the first time since 1941 was a reminder of the role we've played in connecting this great nation for more than 160 years and, more importantly, our responsibility in powering America's future.

And not just on Earth. In early June, our newest commemorative locomotive, No. 4547, was christened in Utah and immediately used in revenue service to haul components for NASA's Artemis III lunar program. It was a spectacular event and there's nothing I like more than a locomotive pulling freight.

Our job is to safely move the goods Americans use every day - and we can do it safer and more efficiently by merging with Norfolk Southern to create a single-line transcontinental railroad. The Surface Transportation Board (STB) accepted our application as complete on May 28. It's a positive step toward enhancing competition for our customers who need better service, more efficient access to ports and gateways, and a rail product that helps them win.

When we improve the supply chain, we strengthen American businesses. When we move more freight by rail, roads are safer and less congested. That is in the public interest, and it is exactly what this merger will deliver.

As we go through the process, we cannot lose sight of the facts or be distracted by other railroads who are speaking loudly against the merger. That should not surprise anyone. In my experience, competitors do not complain this much unless they are worried they will have to compete harder. This merger will create a stronger rail option, and that means others will have to improve their service, sharpen their pricing or both. That's what competition is supposed to do.

We intend to win in the market and help our customers do the same, and that means growth. It's why we made an unprecedented promise: every union employee with a job at the time of the merger will have one for life. No one else has made that guarantee. It goes beyond the standard New York Dock protections and that's important to me. While we have not reached agreement with Teamsters, locomotive engineers keep their seniority as a conductor and are essentially protected by SMART-TD's agreement. We appreciate the unions who understand how it benefits their members and are proud to have formal agreements essentially protecting about 60% of our unionized employees.

On Monday, we will provide the final supplemental information requested in the STB's May filing. We have been clear on questions regarding Terminal Railroad Association of St. Louis (TRRA), Kansas City Terminal Railway (KCT) and TTX Company. These entities are jointly owned with other Class I railroads, operated by an independent management team and governed by non-discrimination policies. In the case of TRRA, a special meeting was called to discuss the path forward, but the other railroads refused to attend. The same thing happened with the ACC - a meeting was scheduled in Omaha and they never showed up. That tells me this isn't about solving real issues.

We're ready for the next step of the process, and I am pleased to share that Canadian National agreed to support the merger. Together, we addressed access questions and provided for better routing around Chicago and to Mexico. We've done our homework and are more sure than ever that this merger will deliver benefits to our customers, employees and America.

I have been railroading for a long time. I have worked with a lot of people who have made a real difference in this industry - people who understand what it takes to operate trains, serve customers and safely maintain tens of thousands of miles of track. People can judge my record. I have no patience for opinions that are not grounded in facts. It is easy to ask questions, speculate or throw around big claims in long-winded essays. It is harder to build a railroad that actually performs and provides clear metrics that prove service, operating and financial success. And that is what this team is doing. Despite all the noise around us, don't lose sight of what's important - running the railroad.

Our results show the strength of our railroad and that our Safety, Service and Operational Excellence strategy is working. We delivered strong operational and financial second quarter results with freight cars moving faster and lower dwell. Our service is strong, and even when intermodal demand came in higher than expected, our operations did not waver. That is an important proof point and it's who we are. It shows our buffer strategy is working, and it shows customers what they can expect from Union Pacific: the safe, reliable service we sold to them.

What is important are facts, not what people think or feel, and employees deserve to hear them directly. At the end of the day, this merger is good for our employees, good for customers, good for America and, frankly, good for our competitors - because it will force everyone to be better. That is what strong competition does. It raises the bar.

I am proud of the work we've accomplished together and our history, from President Lincoln's vision of the first transcontinental railroad to Big Boy's coast-to-coast journey. Now, let's carry that vision forward.

Stay safe, stay focused and hydrated, and keep delivering,

Please review Union Pacific's cautionary note regarding forward-looking statements.