Union Pacific and Wabtec Seal Industry-Defining Locomotive Deal

Union Pacific and rail technology supplier Wabtec have signed a $1.2 billion agreement to modernise the railroad’s fleet of AC4400 locomotives, marking the largest single locomotive modernisation programme ever undertaken in the rail industry. The deal builds on a previous order placed in 2022, which remains on track for completion in 2026, and is aimed at strengthening the railroad’s long-term performance and resilience.

The investment is designed to boost operational efficiency, improve service reliability and enhance overall network performance across Union Pacific’s system. Once upgraded, the locomotives are expected to achieve more than a five per cent reduction in fuel consumption, a 14 per cent increase in tractive effort and an improvement in reliability of around 80 per cent, extending the working life of the fleet while standardising key systems.

Under Wabtec’s modernisation programme, each locomotive will be fitted with a range of new hardware and digital technologies. These include the FDL Advantage engine upgrade to deliver fuel savings, LOCOTROL Expanded Architecture to support the safe and efficient operation of longer trains, and a new Modular Control Architecture that enables next-generation data, diagnostics and software capabilities.

The agreement was signed in the fourth quarter of 2025 and represents Union Pacific’s fourth major locomotive modernisation order with Wabtec since 2018. When the programme is complete, more than 1,700 modernised locomotives will be in service across the Union Pacific fleet. Production will take place at Wabtec facilities in the United States, with deliveries scheduled to begin in 2027.

Jim Vena, Union Pacific CEO said:

“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. 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.”

Rafael Santana, President and CEO of Wabtec said:

“Our continued partnership with Union Pacific reflects a steady, forward-looking investment that positions the railroad and its customers for continued success. 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.”

Image: Wabtec