American freight rail operator Union Pacific and Wabtec have signed a USD 1.2 billion agreement to modernize and redesign AC4400 locomotives.
This agreement represents the largest investment in locomotive modernization in the history of the rail industry, building on Union Pacific’s previous order placed in 2022, which is scheduled for completion in 2026.
Wabtec’s modernization program will extend the useful life of each locomotive, improve fleet standardization, and enable Union Pacific to benefit from next-generation control and diagnostic technologies.
“By enhancing our proven locomotive platforms with advanced propulsion, control, and diagnostic systems, this program delivers significant gains in performance, reliability, and lifetime value, enabling the railroad operator to maximize the efficiency and capacity of its existing fleet,” said Rafael Santana, President and CEO of Wabtec.
The upgraded locomotives are expected to deliver more than 5% fuel savings, a 14% increase in tractive effort, and approximately 80% improvement in reliability.
The modernized locomotives will be equipped with an extensive range of hardware and digital innovations developed by Wabtec. Each unit will benefit from the FDL Advantage (FDLA) engine upgrade for additional fuel savings, extended LOCOTROL architecture, which supports the safe and efficient operation of longer trains, and the new Modular Control Architecture, which opens up access to advanced data, diagnostics, and state-of-the-art software capabilities.
The upgraded locomotives will contribute to increased operational efficiency, service reliability, and rail network performance.
The modernization and redesign of the locomotives will make the vehicles like new, “providing the improved fuel efficiency and increased reliability we need to grow with our customers and attract new business opportunities,” said Jim Vena, Union Pacific’s chief operating officer.
The agreement signed by Union Pacific and Wabtec represents the fourth major modernization order placed by the operator with Wabtec since 2018. Once the program is complete, the railroad will have more than 1,700 modernized locomotives. Production will take place at Wabtec facilities in the United States, with deliveries scheduled to begin in 2027.
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