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SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) March 24, 1998 Union Pacific Corporation (Exact Name of Registrant as Specified in Charter) Utah 1-6075 13-2626465 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 1717 Main Street, Suite 5900, Dallas, Texas 75201 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (214) 743-5600 Item 5. Other Events. Attached as an Exhibit is the Press Release issued by Union Pacific Railroad Company on March 24, 1998, which is incorporated herein by reference. Item 7. Financial Statements and Exhibits. (c) Exhibits. 99 Press Release dated March 24, 1998 announcing that Union Pacific Railroad will embargo most southbound traffic destined for the Laredo, TX gateway, effective Saturday, March 28, 1998, to clear the backlog of cars waiting to cross into Mexico. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Union Pacific Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. March 24, 1998 UNION PACIFIC CORPORATION By:/S/ Carl W. von Bernuth ------------------------ Name: Carl W. von Bernuth Title: Senior Vice President, General Counsel & Secretary Exhibit Index -------------- Exhibit Description 99 Press Release dated March 24, 1998 announcing that Union Pacific Railroad will embargo most southbound traffic destined for the Laredo, TX gateway, effective Saturday, March 28, 1998, to clear the backlog of cars waiting to cross into Mexico.
EXHIBIT 99
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FOR IMMEDIATE RELEASE
OMAHA, March 24 -- Union Pacific Railroad today announced it will embargo
most southbound traffic destined for the Laredo, TX gateway, effective
Saturday, to clear the backlog of cars waiting to cross into Mexico.
Commodity groups affected by the embargo include grain, chemicals,
industrial products and coal. Together, that traffic comprises less than two
percent of UP annual revenues.
Unaffected by the embargo will be finished automobiles and intermodal
traffic, including auto parts. Also exempt will be northbound traffic into and
through Laredo as well as business moving through other Mexico gateways on the
UP. Notice of the embargo will be filed with the Association of American
Railroads on Wednesday.
The current backup of more than 5,500 cars waiting to move south into
Mexico has congested UP operations along key corridors in Texas and as far
north as Oklahoma and Kansas. About 3,000 Mexico-bound cars on the UP system
are considered normal. The embargo will affect about 200 cars per day destined
for Laredo on the UP.
In the past week, UP crossings at Laredo have averaged 265 per day, a steep
decline from January's daily average of 375 southbound cars, 335 in February
and 305 so far in March.
UP has been working for weeks with officials of Transportacion Ferroviaria
Mexicana (TFM) as well as Kansas City Southern, Texas Mexican and Burlington
Northern and Santa Fe railways to address the severe congestion, but the
backlog has worsened in the past week. Actions have included sending UP
locomotives into Mexico and diverting trains to gateways at Eagle Pass, Texas
and Brownsville, Texas. UP has also agreed to handle empty northbound cars
from TFM for other railroads via the Brownsville gateway.
Union Pacific is the largest rail carrier for Mexico border traffic. More
than 50 percent of the total Mexico traffic moves through Laredo on the UP.
Besides Eagle Pass and Brownsville, other UP gateways are located at El Paso;
Nogales, Arizona and Calexico, California. UP has spent $40 million in the
1990's to expand capacity at the Laredo gateway.