Union Pacific Corporation (UNP - Free Report) will be investing $15 million for the development of a rail track in Wyoming. The company will use the fund to replace 127,200 railroad ties as well as install over 61,200 tons of rock ballast and renovate surfaces at 18 road crossings.
This upgrade of the rail line between Rawlins and Rock Springs will enhance the transportation infrastructure of this Western U.S. state. The project – which is completely financed by the company – started in mid June and is slated to be wrapped up by September end.
This initiative is part of the many ventures that Union Pacific has in its pipeline to improve its 32,000-mile network this year, resulting in better train operating efficiency, lower motorist wait times at crossings and higher safety. The company aims to cut down on highway congestion with the help of additional freight rail capacity.
Union Pacific remains committed to make investments to enhance transportation services across the nation. For 2013, the company expects to invest about $3.6 billion with more than half of the investments targeted toward infrastructure replacement and improvements at commercial plants. The company aims to invest nearly $1 billion in service growth and productivity projects. Management will put in approximately $450.0 million on positive train control.
We believe that these measures will boost the company’s long-term efficiency and service capabilities. Union Pacific aims to help customers by establishing easy connectivity between them, suppliers and markets. This will enable clients to transport their goods faster and safely, expediting industrial expansion and economic growth.
Canadian Pacific operates with the likes of Canadian National Railway Company (CNI - Free Report) , Kansas City Southern (KSU - Free Report) and Canadian Pacific Railway Limited (CP - Free Report) and has a Zacks Rank #3 (Hold rating).