Union Pacific has approved the 2016 capital plan of USD 3.75 billion, down about USD 550 million compared to 2015. The plan includes USD 375 million to further implement Positive Train Control.
“Given the decline in volume, we have taken a hard look at our capital plan and continue to invest for safety, productivity and where returns meet our threshold of reinvestability. These investments will create value for our customers and strong returns for our shareholders in the years ahead,” Rob Knight, Union Pacific chief financial officer said.
The Board also declared a quarterly dividend of 55 cents per share on the company’s common stock, payable March 31, 2016, to shareholders of record February 29, 2016.