Union Pacific's Board of Directors approved its 2014 capital spending plan of approximately $3.9 billion, up about $300 million versus 2013, driven primarily by the acquisition of 200 locomotives compared to 100 locomotives purchased in 2013 and somewhat higher capacity investments.
Spending on positive train control (PTC) is also expected to increase to $450 million, versus $420 million in 2013.
Rob Knight, Union Pacific chief financial officer, said, “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.”
In other news, Lance Fritz has been elected president and chief operating officer of Union Pacific. Cameron Scott has been named executive vice president operations, succeeding Fritz. Additionally, Jim Young has retired, but will continue to serve as chairman of the company’s board of directors in a non-executive role.
In his new position, Fritz is responsible for operations, marketing and sales, information technology, continuous improvement, supply and labor relations. He will report to Jack Koraleski, chief executive officer and president.
Fritz joined Union Pacific in 2000 as vice president and general manager of the energy group. He was named regional vice president operations, first for the northern region and then the southern region in 2006. He served as vice president of labor relations prior to being named vice president operations in 2008. He was named executive vice president operations in 2010. Prior to joining Union Pacific, Fritz worked for Fiskars, Inc., Cooper Industries and General Electric.
Scott most recently served as vice president network planning and operations. He joined Union Pacific in 1991 and held a number of operating assignments, including regional vice president operations for the western region.
Young has served as president, chairman and chief executive officer of Union Pacific since 2007. He stepped down as president and CEO in 2012 for medical reasons but remained as chairman of the board.