UP expands partnership for freight services

STG and Union PacificSTG and Union Pacific Railroad signed an extension to their long-term partnership to provide better rail services to clients to deliver goods and products to consumers, while ensuring continuity and excellence within the nation’s supply chain.

“We are extremely excited about this partnership. This new contract will help STG with our growth trajectory while continuing a relationship that reflects our values and our vision for the future of intermodal,” Tyler Holtgreven, Senior Vice President of Operations at STG Logistics said.

Moving freight by rail offers a variety of benefits, including reduced carbon emissions, making it an environmentally responsible option. Rail transport also offers cost-effective solutions for long-distance freight hauling, leading to economic efficiency and sustainability for customers.

“We are proud of the long and successful history we share with STG Logistics. Our partnership is a reflection of our mutual commitment to providing safe, reliable and environmentally responsible service to our customers,” said Kari Kirchhoefer, Senior Vice President – Marketing and Sales, Union Pacific Railroad.

STG and Union Pacific have been collaborating for more than three decades to deliver better services on an expanded network. STG is a leading national containerised logistics services provider including asset-based intermodal transport, marine and rail.

To provide its clients with increased services and quality, Union Pacific recently announced it will invest USD 3.4 billion by the end of this year to maintain its infrastructure and facilities. The US rail operator will invest USD 1.9 billion (representing 56% of the capital plan) to upgrade and replace the rail infrastructure (rail, ties, and ballasts) and USD 600 million will be used to acquire and modernise its locomotive fleet, including equipment.

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.


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