Union Pacific Awards Wabtec $1.2B Locomotive Modernization Contract

Union Pacific and Wabtec have executed a USD 1.2 billion agreement focused on the modernization and redesign of AC4400 locomotives. The contract is the largest single investment in locomotive modernization within the rail industry’s history. Deliveries of the upgraded units are scheduled to commence in 2027.

This agreement is an extension of Union Pacific’s ongoing fleet strategy, building upon a previous order placed with Wabtec in 2022. That prior program is scheduled for completion in 2026. The new contract represents the fourth major modernization order issued by the railroad operator since 2018. Upon completion of all programs, Union Pacific’s fleet will contain more than 1,700 modernized locomotives, creating a more standardized and reliable asset base.

The modernization program is projected to yield substantial performance improvements. Expected outcomes include fuel savings exceeding 5% and a 14% increase in tractive effort per locomotive. A significant operational benefit is the anticipated 80% improvement in reliability, which directly impacts service availability and reduces maintenance-related downtime. The program’s core objective is to extend the useful life of each locomotive while elevating its performance to near-new specifications.

Technical enhancements are central to the agreement. Each AC4400 unit will undergo engine upgrades specifically to reduce fuel consumption. The locomotive architecture will be modified to support the safe and efficient operation of longer trains, a key factor in network capacity. A new control architecture will be installed, providing access to advanced data, diagnostics, and software capabilities that were unavailable on the original platform. These digital innovations are intended to improve fleet management and predictive maintenance.

Production and assembly of the modernized locomotives will take place at Wabtec facilities located in the United States. The program’s result will be vehicles with improved fuel efficiency and reliability, contributing to Union Pacific’s goals for increased operational efficiency and rail network performance.

The integration of next-generation control and diagnostic technologies is a primary component of the upgrade. These systems will provide Union Pacific with deeper operational insights, enabling more effective asset utilization and maintenance scheduling. The modernization effectively transforms existing assets into units capable of meeting current and future network demands.