US railroad firm Union Pacific will make investments $3.4bn into its infrastructure, rolling inventory and know-how over the following yr, the corporate revealed within the particulars of its 2024 capital plan.
Greater than half of the funding, $1.9bn, will go in the direction of upgrading and changing infrastructure, whereas $600m can be spent on each rolling inventory and gear, and capability and industrial services, with the opposite $300m earmarked for know-how investments.
CEO Jim Vena, who stepped into the function within the second half of 2023, mentioned: “We make investments to maintain our railroad and staff secure, and we’ll by no means compromise on that. We additionally spend capital {dollars} to offer a high quality service product, and powerful service, making a profitable surroundings for our clients.”
Additional particulars of the corporate’s capital investments for the yr forward come after the $3.4bn determine was revealed in its annual earnings report for 2023, when it additionally reported a 9% lower in internet earnings, citing quantity declines and decrease revenues from gasoline surcharges.
The numerous funding into rolling inventory continues a significant fleet modernisation push from the corporate that started in 2022 when it signed a $1bn contract with Wabtec for the modernisation of 600 locomotives.
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Union Pacific mentioned that along with the modernisations, its newest rolling inventory investments will embody freight automotive acquisitions to assist “alternative and progress alternatives”.
Different investments will embody siding extensions to extend capability and enhance effectivity, and growth of the corporate’s intermodal footprint in excessive progress areas similar to Southern California, Phoenix, Arizona and Kansas Metropolis, Missouri.
