Union Pacific making $1.3 billion investment in track during 2005
Union Pacific Railroad is spending $1.3 billion this year on track improvements across its 33,000-mile system.
During 2005, crews are:
- Removing and installing 4.4 million ties, of which
- 3.7 million are wood;
- 355,000 concrete; and
- 215,000 composite;
- Spreading 6.8 million tons of rock ballast to ensure a stable roadbed;
- Replacing 1,055 miles of rail; and
- Surfacing 7,800 miles.
“We continue to invest in our physical plant to assist with providing a safe infrastructure while at the same time enhancing velocity of our train operations,” said Dennis Duffy, executive vice president - Operations.
Union Pacific also will spend an additional $295 million to increase capacity on its Sunset Route in Arizona and in the North Platte, NB, area. This spending also includes construction of eight new side tracks - two each in Texas and Utah and one each in Oklahoma, California, Iowa and Arizona.
UP also is spending $220 million this year on commercial facilities including:
- Support tracks for the new Toyota plant in San Antonio;
- Intermodal yards in Wilmer, Texas and Salt Lake City, Utah; and
- Support tracks at ethanol plants in Iowa and Minnesota.
“Supporting our customers with modern and efficient facilities assists with the fluid operation of the railroad and has always been a strategic element of our capital program,” said Jack Koraleski, executive vice president - marketing and sales.
These investments are part of Union Pacific’s total capital budget for 2005, which includes over $2 billion in cash capital expenditures that will be used to maintain or enhance its physical plant. In addition, the company plans to acquire 315 new locomotives and over 4,000 railcars through short or long-term leases.