0 George Duggan Vice President, Domestic Intermodal May 19, 2008 BNSF Railway Moving You Forward

1 Topics Current Economic/Industry Environment Providing Services That Deliver Growing Where Youre Going

2 Moving You Forward Economic Landscape Factors Impacting the Transportation Industry Current Economic/Industry Environment

3 Economic Landscape Outlook % 0.8% 2008F1.2% -1.2% 2009F 1.7% 1.4% Real GDP vs. Less-Tech Manufacturing Output Source: Global Insight, BNSF Railway, April 2008 Growth, Percent Change, Year-Over-Year

4 Economic Landscape Housing Market Sources: U.S. Census Bureau, Federal Reserve, BNSF Railway, December 2007 High home inventories and falling home prices mean slump continues

5 Economic Landscape Oil HDF and WTI

6 Source: U.S. Census Bureau, April 2008 Economic Landscape Business Spending & Employment Business capex is cautious; employment is down three months in a row

7 Economic Landscape Consumer Spending Source: Global Insight, April, 2008 High commodity, credit and gas prices are squeezing spending power Year-over-year growth

8 Factors Impacting the Transportation Industry Factors Impacting Your Business G ROWTH Highway Congestion Transpacific Trade Driver Shortage Fuel Efficiency Rail Capacity Environmental Solutions

9 Factors Impacting the Transportation Industry Highway Congestion Source: FHWA HPMS data Highway Congestion, 2000Highway Congestion, 2020 Prediction

10 Source: Global Insight Factors Impacting the Transportation Industry Driver Shortage Millions

11 Shanghai Source: ProLogis Seattle/ Tacoma Oakland LA/ Long Beach Houston Dallas Savannah Charleston Norfolk New York Chicago Lazaro Cardenas Vancouver Prince Rupert Atlanta 8 25 Toronto 7 6 Memphis 7 Factors Impacting the Transportation Industry Trans Pacific Trade Continuing to Favor West Coast Ports

12 Moving You Forward Intermodal Services Environmental Solutions Providing Services That Deliver

13 Competitive Service Alternatives BNSF Intermodal Services Ideal for time-sensitive freight moving more than 1,000 miles Seamlessly integrates road, rail and water transportation for truckload quantities Works best in markets with large concentrated volumes - inefficient in lower-volume markets Service is equivalent to or better than single-driver truck, averaging miles per day

14 Competitive Service Alternatives Best Value for Your Transportation Dollar LONG-HAUL MODETEAM DRIVERS (HIGHWAY) SINGLE DRIVERS (HIGHWAY) BNSF EXPEDITED (INTERMODAL) BNSF PREMIUM (INTERMODAL) Freight Costs $$$$ $$$$$$ Fuel Surcharges $$ $$ Total$$$$$$$$$$$ValueMax Savings METRO DOOR TO DOOR TRANSIT TIME (IN DAYS) Southern California – Chicago344**5.5 Southern California – Kansas City 344**5.5 Southern California – Memphis344**6 Southern California – Atlanta34Not Available5.5 Southern California – DFW233.5*5 Seattle - Chicago344*5.5 (Lowest total emissions) Economies of Intermodal Rail *Expedited Container and Trailer Lane **Expedited Trailer Lane Only

15 Environmental Solutions Improving Fuel Efficiency 2 – 4 times more fuel efficient than trucks on a ton-mile basis Moving a ton of freight an average of 436 miles on a single gallon of diesel fuel (up from 423 in 2006) Increasing fuel efficiency of trains by 80 percent over the past 25 years Source: AAR If just 10% of the freight that currently moves by truck were diverted to rail, fuel savings would exceed one billion gallons a year

16 Environmental Solutions Improving Air Quality Calendar Year NOx Emissions (g/ton-mile) Calendar Year PM Emissions (g/ton-mile) Trains are 2-3 times cleaner than trucks on a ton-mile basis California Statewide with No SCAB Fleet Average-- L. S. Caretto: Updated truck versus rail emissions comparison, August 2007 NOx Emissions per Ton Mile of FreightPM Emissions per Ton Mile of Freight

17 Moving You Forward Growth Markets Creating Capacity Through Investments Growing Where You're Going

18 Growth Markets U.S. Growth Markets

19 Growth Markets U.S. Gateways

20 Growth Markets BNSF Intermodal Network

21 Growth Markets BNSF Intermodal Network Density

22 Growth Markets Distribution Warehouses Top warehouse markets forecasted to grow over 100M sq. ft. for third consecutive year

23 Key Takeaways Growth Markets Gulf Coast Megapolitan Study Population Gulf will add 2.6M people by 2030 driving the need for consumer goods, construction & building products BNSF well positioned Economic Drivers Key origin for energy infrastructure, chemicals & refined products Trade Opportunities Unit growth Train service growth

24 Growth Markets Gulf Coast Megapolitan Study Key Drivers Markets Population Growth Trade Infrastructure for Energy Pipe Wind Towers Aggregates Automotive Cement Steel Agricultural Products Plastic Resins Refining & Fuels Coal Pet Coke Petroleum Products

Capital Commitments Creating Capacity Through Investments Capital Plan $ Millions $2,258 $2,520 $2,265 $1,763 $1,608 $1,505 $1,726 $1,988 $2,179 ROIC 6.6% 7.9% 10.1% 9.5% 9.7% 9.4% 7.2% 8.8% $2,670 $2, % 10.5% $2,575 Capital Commitments with ROIC

26 Year End Creating Capacity Through Investments Adding Road Locomotives

27 Creating Capacity Through Investments BNSF Expansion Projects in Service 2008 * KEENBROOK SUMMIT TT – 14 miles SPRINGFIELD DIVISION Sidings, DT – 3 miles Birmingham Temple-MP 210 DT – 6 miles GULF DIVISION YARD PROJECTS Arcola, TX – Connection Track Bellville, TX – Storage Track Extensions Galveston, TX – Track additions

28 Creating Capacity Through Investments Facility Expansion GARDNER Working with USACE to obtain permit Scheduled to start construction in 2008 Complete late 2009 or 2010 Will include wide-span cranes, adjacent stacking area, and traditional parking SIG Doubled facility capacity Improvements at North SIG yard complete Installation of four wide-span cranes complete Yard fully operational Feb. 1 MEMPHIS Construction continues on new intermodal facility Target in-service date – first half 2009 Will include wide-span cranes, adjacent stacking area, and traditional parking ALLIANCE New/extended lead tracks and support tracks in-service Gate expansion and installation of automated gate system complete Q OAKLAND Planning for expansion Continuing to work with Port to secure property adjacent to OIG Anticipate completing deal with Port this year SCIG Work on permitting continues ATLANTA Parking expansion complete Additional lead capacity complete in Q LA/HOBART Strip track extensions Additional parking capacity Support yard improvements

29 Creating Capacity Through Investments Texas ALLIANCE New/extended lead tracks and support tracks in-service Gate expansion and installation of automated gate system complete Q Temple-MP 210 DT – 6 miles GULF DIVISION YARD PROJECTS Arcola, TX – Connection Track Bellville, TX – Storage Track Extensions Galveston, TX – Track additions Fort Worth Ethanol Facility Increasing capacity to accommodate full unit trains

30 Moving You Forward Especially as the short-term market continues to soften, Intermodal provides a competitive solution to meet your transportation needs and is the best value for your transportation dollar BNSF is: Investing to match future capacity needs identified in the strategic planning process where you are going Providing the most fuel efficient and cleanest form of land transport of bulk goods and materials What more can we do for you?