Union Pacific to Spend $1.6 Bln. This Year on Track Upgrades

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nion Pacific Corp. said Wednesday it will spend almost $1.6 billion this year to improve its rail tracks.

The largest U.S. freight railroad will spend $1.3 billion to replace more than 1,000 miles of track, and an additional $295 million to improve its Sunset Route and for other projects around the country.

The Sunset Route leads out of the busy ports of Los Angeles and Long Beach in southern California, running to Texas. The railroad had extensive congestion near West Coast ports last year, frustrating many shippers.

The railroad, which operates west of the Mississippi River, also will spend money to construct eight new side tracks — two each in Texas and Utah, and one each in Oklahoma, California, Iowa, and Arizona.

“We continue to invest in our physical plant to assist with providing a safe infrastructure while at the same time enhancing velocity of our train operations,” said Dennis Duffy, UP's executive vice president of operations.

The spending level is about the same as last year, a company spokesman told Bloomberg.