UP boosts 2014 capex, installs Fritz as president and COO

Union Pacific Railroad yesterday announced a 2014 capital spending plan of $3.9 billion, up about $300 million compared with the 2013 capex budget.

The year-over-year increase primarily is driven by a plan to acquire 200 locomotives in 2014 versus the 100 locomotives purchased in 2013 and somewhat higher capacity investments, UP officials said in a press release. Spending on positive train control implementation will increase to $450 million versus $420 million in 2013.

"Our capital investments serve a critical role in supporting future cash generation and returns. The increased capital spending plan for 2014 also highlights our expectation of future volume growth across a wide range of markets in 2014 and beyond," said Rob Knight, UP's executive vice president and chief financial officer.

UP also announced that Lance Fritz has been elected president and chief operating officer, and Chairman Jim Young retired on Jan. 31, but will continue to chair the Class I's board in a non-executive role.

Fritz now will be responsible for operations, marketing and sales, information technology, continuous improvement, supply and labor relations. He will report to Jack Koraleski, chief executive officer of the railroad and president and CEO of Union Pacific Corp.

Fritz joined UP in 2000 as vice president and general manager of the energy group. He later served as regional VP of operations, first for the northern region and then the southern region, VP of labor relations and VP of operations. Fritz most recently was executive VP of operations, a role that now will be filled by Cameron Scott.

Most recently VP of network planning and operations, Scott joined UP in 1991 and since has held a number of operating assignments, including regional VP of operations for the western region.

Young became chairman, president and CEO of UP in 2007, but stepped down as president and CEO in 2012 for medical reasons. He remained chairman until his recent retirement.