Union Pacific Chairman and CEO Jim Young announced Friday that the company will invest $1 billion in Nebraska rail upgrades over the next 7 years. Across the state, the funds will be spent on three major projects. First, Union Pacific will use $70 million to expand capacity, add track, and update technology at its North Platte rail yard, which is already the largest railroad classification yard in the world. Another approximately $220 million will go to new rail, ties, and other upgrades on Union Pacific’s main line. This work will help to increase the capacity and fluidity of the main line, noted as the busiest freight rail transportation corridor in the United States with about 125 trains a day passing through. Finally, $206 million will go to new crew change buildings, technology, and track in the area between Fremont and Missouri Valley.
Young says the projects will create about 1,000 jobs in Nebraska. The company wants to give back to the state where it has been based for 150 years. Union Pacific will also receive $100 million in state tax breaks under Nebraska’s incentive program, which allows companies to recover up to 10% of their investments if they reach job creation criteria within seven years. Generating $3.29 billion net income in 2011, Union Pacific has the means to make these improvements throughout the country after an 18 percent growth since last year’s $2.78 net income. Overall, the company plans to spend $3.6 billion in 2012 to upgrade much of its facilities, spanning 32,400 miles of track in 23 states.
No comments:
Post a Comment
Tell us your Railway News!