(Reuters) - Railroad operator Union Pacific (NYSE:UNP) said on Wednesday it plans to invest $3.4 billion this year to support safer operations, renew assets and increase capacity.
"We invest to keep our railroad and employees safe and we will never compromise on that," CEO Jim Vena said.
Union Pacific will continue to modernize the locomotive fleet, upgrading older core units. The plan also includes targeted freight car acquisitions to support replacement and growth opportunities, the rail operator said.
The Omaha, Nebraska-based company, which runs through 23 states west of Chicago and New Orleans, said it is also investing in increasing capacity across its network.
It will continue to expand its freight footprint, supporting business development in targeted, high-growth areas such as Southern California, Phoenix and Kansas City, Union Pacific said.