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2/22/2024
Union Pacific Railroad yesterday announced its capital budget expenditures will total $3.4 billion in 2024.
The investment is aimed at projects that support safe operations, renew assets and growth with customers across the Class I's 23-state network, UP officials said in a press release.
About 56% of the capital plan, or $1.9 billion, will go toward upgrading and replacing infrastructure, such as rail, ties and ballast, while $600 million will go toward locomotives and equipment.
In addition, UP will continue to modernize its locomotive fleet, upgrading older core units. The plan also includes targeted freight-car acquisitions to support replacement and growth opportunities, company officials said.
Other investments will be made in capacity and technology projects — such as siding extensions — to increase capacity, improve productivity and operational efficiency. Also, the railroad will expand its intermodal footprint by supporting business development in targeted, high-growth areas such as in Southern California, Phoenix and Kansas City, Missouri.
"We invest to keep our railroad and employees safe, and we will never compromise on that,” said CEO Jim Vena. “We also spend capital dollars to provide a quality service product, and strong service, creating a winning environment for our customers."
UP's previous capex budgets totaled $3.7 billion in 2023 and $3.4 billion in 2022.