CBP Announces Mitigation Decision with Union Pacific

Washington, D.C. – U.S. Customs and Border Protection (CBP) today
announced its decision to mitigate penalties against Union Pacific—requiring the
company to spend $50 million on supply chain security to directly enhance the
Mexico and United States rail supply chain.

“The facilitation of trade and security of the international supply
chain is vital to both the health of our economy and protecting the country,”
said U.S. Customs and Border Protection Commissioner, Alan D. Bersin. “It is in
the best interest of all stakeholders that all appropriate steps are taken to
secure the U.S. border against the smuggling of contraband and to ensure supply
chain security now rather than years from now.”

“We are pleased that we have reached a resolution that allows Union
Pacific to expand our long-standing relationship with CBP, in which Union
Pacific has already invested tens of millions of dollars in technology,
infrastructure, training, and workforce resources to promote safer and more
secure rail transportation across the border,” said Jim Young, Union Pacific
chairman and chief executive officer. “CBP and Union Pacific teams along the
border have worked exceptionally well together for many years, and this formal
agreement solidifies our commitment to enhance that relationship and involve
others who should be part of this critical work.”

The Mitigation Decision defines the steps that Union Pacific will
take to infuse $50 million to further secure our border, including investing in
security enhancements at critical junctures of the Mexico and United States
supply chain, and partnering with CBP to form a Rail Fusion Center to identify
high-risk shipments. The Mitigation Decision also provides that CBP will
mitigate penalties assessed against Union Pacific if the railroad fulfills its
obligations under the Decision. In recent years these penalties have grown to be
significant as illegal controlled substances were discovered on trains
originating in Mexico and arriving at U.S. -Mexican border crossings.

U.S. Customs and Border Protection is the unified border agency
within the Department of Homeland Security charged with the management, control
and protection of our nation's borders at and between the official ports of
entry. CBP is charged with keeping terrorists and terrorist weapons out of the
country while enforcing hundreds of U.S. laws.