Monday, February 10, 2014

UP: $3.9 billion capex, key management changes

Written by  William C. Vantuono, Editor-in-Chief
Lance Fritz, UP President and COO Lance Fritz, UP President and COO
Union Pacific has announced a capital spending plan worth $3.9 billion, and has installed Lance Fritz and Cameron Scott in new leadership positions following Jim Young’s retirement as Chairman.

UP’s 2014 capital plan of approximately $3.9 billion represents an increase of about $300 million from 2013. The increase, UP said, is driven primarily by acquisition of 200 locomotives—a doubling of the units purchased in 2013—and larger investments in additional capacity. Spending on Positive Train Control (PTC) is expected to increase to $450 million, vs. $420 million in 2013.

“Our capital investments serve a critical role in supporting future cash generation and returns,” said UP CFO Rob Knight. “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.”

Jim Young retired as UP’s Chairman at the end of January 2014, but will stay on as non-executive Chairman. Lance Fritz is UP’s new President and Chief Operating Officer, and Cameron Scott replaces Fritz as Executive Vice President Operations. Jack Koraleski remains as CEO. “Our entire management team is focused on safely providing great service to our customers while providing strong financial results to our shareholders,” said Koraleski. “These appointments reinforce this commitment, and I am looking forward to our continued success in 2014 and beyond.”