The Board of Directors of Union Pacific approved its $3.1 billion capital program for 2017.
The program is down approximately 11 percent, $400 million, from the Class 1’s 2016 capital plan of $3.5 billion.
“The 2017 capital plan reflects our continued commitment to safety, productivity and future profitable growth,” said Rob Knight, Union Pacific chief financial officer. “Our capital investments serve a critical role in adding value for our customers and shareholders.”
The bulk of the anticipated 2017 spend, $1.860 billion, will go toward infrastructure replacement, $435 million will to toward locomotives and other equipment, $300 million will go toward Positive Train Control, $255 million toward capacity and commercial facilities and $240 million toward technology.
The biggest change year-over-year is the railroad’s planned spend on locomotives and equipment. Cameron Scott, executive vice president and chief operating officer, noted during Union Pacific’s 2016 Fourth Quarter earnings call that the railroad had planned to acquire 100 locomotives in 2017 per a previous purchase commitment, but the plan has been revised to include 60 locomotives in 2017 with the remaining 40 to be delivered in 2018.