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Next year, Union Pacific Railroad’s capital spending budget likely will go up — enough to reach the $3 billion mark.

Although the 2011 capex budget hasn’t been finalized, the Class I is projecting a $3 billion spending plan compared with 2010’s $2.6 billion capex budget, said UP Executive Vice President and Chief Financial Officer Robert Knight Jr. during the railroad’s analyst conference Nov. 4 in Chicago. About $250 million of the $3 billion budget would be dedicated to positive train control development, said UP spokesman Tom Lange in an email.

The proposed budget also would include funds to acquire 100 new high-efficiency locomotives, said Knight. During the next few years, UP plans to acquire 100 to 200 new locomotives annually.

Overall, UP expects to maintain capital spending in a historical range of 17 percent to 18 percent of total annual revenue, said Knight. Capex decisions will be based on infrastructure needs, traffic volumes, and efficiency and service requirements.

— Jeff Stagl