Pittsburgh-based Wabtec announced it has signed an historic agreement with Union Pacific to modernize the railroad’s AC4400 locomotives.
The $1.2 billion agreement represents the largest locomotive modernization agreement in rail industry history, building on Union Pacific’s previous 2022 order that is scheduled to be completed in 2026. The upgraded fleet will enhance the railroad’s operational efficiency, officials said, as well as its service reliability and network performance.
“Our continued partnership with Union Pacific reflects a steady, forward-looking investment that positions the railroad and its customers for continued success,” said Rafael Santana, President and CEO of Wabtec. “By enhancing our proven locomotive platforms with advanced propulsion, controls and diagnostics, this program delivers substantial gains in performance, reliability and lifecycle value — allowing the railroad to unlock maximum efficiency and capability for its existing fleet.”
The modernization program will extend each of the locomotive’s useful life, improve fleet standardization and equip Union Pacific to take advantage of new technology. The upgraded locomotives are expected to deliver a more than 5 percent reduction in fuel consumption, a 14 percent increase in tractive effort and an 80 percent improvement in reliability.
The locomotives that are part of the order will feature Wabtec hardware and digital innovations, officials said. The agreement marks the fourth major modernization order from Wabtec since 2018 and will mean the railroad will have more than 1,700 modernized locomotives in its fleet. Production will take place in Wabtec’s U.S. facilities and locomotives should be delivered starting in 2027.
“We are committed to delivering the service we sold to our customers and one way we do that is having great American-made locomotives that can get the job done,” said Jim Vena, Union Pacific CEO. “These redesigned locomotives will be just like new, providing the improved fuel efficiency and enhanced reliability that we need to grow with our customers and to win new business.”