Union Pacific investment plan worth USD 3.4 billion this year to support safe operations, renew assets and grow with customers. That’s the equivalent of spending more than USD 9 million every day to make the railways safer and generate economic and supply chain activity across its 23-state footprint, boosting local, regional and the national economy.
An estimated 56% of the capital plan, or USD 1.9 billion will go toward upgrading and replacing infrastructure, such as rail, ties, and ballasts, along with USD 600 million towards locomotives and equipment.
“We invest to keep our railroad and employees safe, and we will never compromise on that. We also spend capital dollars to provide a quality service product, and strong service, creating a winning environment for our customers,” the CEO of Union Pacific, Jim Vena, said.
Under Union Pacific investment programme, the company will continue to modernise the locomotive fleet, upgrading older core units. In 2022, the railway company signed a framework agreement with Wabtec for the modernisation of 600 locomotives, representing the largest-ever investment in modernised locomotives in the US rail industry history.
The agreement, worth more than USD 1 billion, will apply technology to Union Pacific’s existing locomotive fleet to improve reliability and fuel efficiency as well as reduce emissions. Wabtec will modernise 525 of Union Pacific’s AC4400 and AC6000 locomotives, as well as 75 Dash-9 locomotives. The project will extend the locomotive’s life and provide benefits, including a fuel efficiency improvement of up to 18%, a more than 80% increase in reliability and a more than 55% increase in haulage ability.
The plan also includes targeted freight car acquisition programme to support replacement and growth opportunities.
In addition, we are investing in capacity and technology projects across our network, such as siding extensions, to increase capacity, improve productivity and operational efficiency.
The rail company will continue to expand its intermodal footprint, supporting business development in targeted, high growth areas, such as Southern California, Phoenix, and Kansas City.
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