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Union Pacific, Wabtec sign $1.2 bln locomotive modernization deal

The companies announced on Wednesday that Union Pacific, a railroad operator, and Wabtec - a locomotive parts manufacturer - had signed a $1.2 billion agreement to modernize the AC4400 locomotives of the railway. The companies describe the agreement as "the largest locomotive investment in rail history." It is expected to begin deliveries by 2027. U.S. rail fleet replacement has been accelerated under the Biden administration, with infrastructure investments. Operators are replacing aging locomotives by more fuel-efficient and digitally enabled models.

According to the companies, the fleet upgrade will reduce fuel consumption by more than 5% and increase locomotives' tractive efforts by 14%. It is also expected to improve reliability by as much as 80%. Union Pacific's fleet will include?more? than 1,700?modernized locomotives upon completion of the order. This is its fourth modernization contract with Wabtec.

(source: Reuters)