- Fuel-efficient upgrades will cut 350 tons of carbon per
locomotive annually
- Modernization program will recycle 70,000 tons of steel –
equivalent to 51,000 passenger cars
- Investment puts UP on path to net zero greenhouse gas emissions
by 2050
OMAHA,
Neb. and PITTSBURGH,
July 27,
2022 /PRNewswire/ -- Union Pacific (NYSE: UNP) signed
a historic deal with Wabtec Corporation (NYSE: WAB) for 600
locomotive modernizations featuring a suite of digital solutions
and innovations. The agreement, worth more than $1 billion, is the largest investment in
modernized locomotives in rail industry history, and part of Union
Pacific's fleet strategy to move more freight efficiently and
sustainably across its service territory.
"Union Pacific is taking thoughtful, deliberate steps to reduce
our environmental impact and to help our partners improve theirs,"
said Lance Fritz, Chairman,
President and CEO of Union Pacific. "Wabtec's modernization program
helps make our existing fleet more fuel efficient, capable and
reliable. The resulting increased tractive power enables us to move
more freight with fewer locomotives, which improves efficiency and
reduces emissions."
Union Pacific's modernization initiative comes as the industry
looks to sustainably meet the growing demands on the rail network
by maximizing and extending the capabilities of locomotive fleets.
It also helps place Union Pacific on a path to achieve its
aggressive emissions target to reduce absolute Scope 1 and 2
greenhouse gas (GHG) emissions by 26% by 2030 from a 2018 baseline,
and on a path to net zero emissions by 2050. The modernizations
also support UP customers' efforts to meet their own carbon
reduction targets.
"Modernizations are a game changer for our customers offering
the ability to realize significantly more value out of existing
locomotive assets," said Rafael
Santana, President and CEO of Wabtec. "By customizing these
solutions for our customers and installing state-of-the-art
technology, we are helping our customers realize outcomes including
increased tractive effort, fuel efficiency, reliability, and
adhesion, which reduce maintenance, repair and overhaul expenses.
These fleet benefits will support Union Pacific's sustainable
service improvements and long-term growth strategy."
The modernizations will provide approximately 350 tons of carbon
reduction per locomotive per year. The total order will enable
Union Pacific to realize approximately 210,000 tons in annual
emission reductions. The reductions are the equivalent of removing
emissions from nearly 45,000 passenger cars per year. The
modernizations also support the circular economy with more than
half the locomotive's weight being reused. Throughout the order,
approximately 70,000 tons of steel will be reused and recycled –
the equivalent of more than 51,000 passenger cars.
Wabtec will modernize 525 of Union Pacific's AC4400 and AC6000
locomotives, as well as 75 Dash-9 locomotives. The modernized
locomotives will feature a suite of digital solutions and
innovations such as the FDL Advantage engine upgrade and Modular
Control Architecture, a next-generation controls technology that is
applicable throughout Wabtec's locomotive installed base. The
modernizations will extend the locomotive's life and provide
benefits, including a fuel efficiency improvement of up to 18%;
more than 80% increase in reliability; and haulage ability increase
of more than 55%.
This deal is the third major modernization order from Union
Pacific since 2018, with more than 1,030 locomotives upon
completion in 2025. Wabtec will modernize the locomotives at its
plants in the United States. The
deliveries are expected to begin in 2023.
About Union Pacific
Union Pacific (NYSE: UNP) delivers the goods families and
businesses use every day with safe, reliable, and efficient
service. Operating in 23 western states, the company connects its
customers and communities to the global economy. Trains are the
most environmentally responsible way to move freight, helping Union
Pacific protect future generations. More information about Union
Pacific is available at www.up.com.
About Wabtec
Wabtec Corporation (NYSE: WAB) is focused on creating
transportation solutions that move and improve the world. The
company is a leading global provider of equipment, systems, digital
solutions, and value-added services for the freight and transit
rail industries, as well as the mining, marine, and industrial
markets. Wabtec has been a leader in the rail industry for over 150
years and has the vision to achieve a zero-emission rail system in
the U.S. and worldwide. Visit Wabtec's website
at www.wabteccorp.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/union-pacific-signs-largest-locomotive-modernization-deal-in-rail-industry-history-with-wabtec-301594091.html
SOURCE Union Pacific Corporation