Union Pacific's plan to spend $1 billion on Nebraska rail projects in the next several years could help spark other investments from businesses, Gov. Dave Heineman said Friday.
The Omaha-based railroad will distribute the money on projects across the state, ranging from $70 million for track expansions and technology upgrades at North Platte's Bailey Yard to $206 million for a new bridge, crew change buildings and track improvements on the line between Fremont and Missouri Valley, Iowa.
An additional $220 million is slated for work on the section of U.P.'s main line that runs through Nebraska — a stretch that sees about 125 trains each day.
The announcement came a day after the company released record earnings reports for the fourth quarter and for all of 2011, the most profitable year in U.P.'s 150-year history. The company also said it plans to spend a record $3.6 billion on capital investments in 2012 across its 23-state network.
Speaking at the railroad's downtown headquarters, the governor praised the company's plans and noted the company's unusual longevity. He said he expects other firms to take note of U.P.'s commitment to Nebraska.
"The Union Pacific is a top employer, and when they see it willing to invest a billion dollars ... they also want to invest," Heineman said.
The railroad has 1,068 miles of track in Nebraska and some of the system's key facilities are here. The rail yard in North Platte, which covers 2,850 acres and runs eight miles in length, is the world's largest.
Jim Young, U.P.'s chairman and CEO, said most of the projects planned for Nebraska have been in the works for years. It won't be long, he said, until many communities start noticing workers making improvements to tracks, buildings and bridges.
Some investments, however, will be a bit harder to spot.
Systemwide, Young said, the railroad is always looking for new ways to make trains run more efficiently and safely — and to keep customers happy. It now uses GPS systems and other high-tech gadgets to track shipments, down to constant monitoring of the temperature and moisture levels in rail cars. There's research under way on hybrid locomotives, among other long-term projects.
Some of that work is done in Nebraska. And here, there also will be other kinds of upgrades that seem a bit less high-tech but are just as important. Young said the steel used in railroad tracks, for example, is now specifically designed to hold up years longer than the type used in the past.
In total, the work should help create more than 1,000 jobs, Young said. That includes both U.P. employees and other contractors and suppliers who will help with the projects. The company currently has about 8,000 employees in Nebraska.
Heineman said the railroad's presence in the state is something that catches the attention of businesses looking to move here.
"It's a very big selling point for the state," he said
Young joked that the announcement about Nebraska projects is likely to garner interest from others in states served by the railroad.
"I will have 23 governors calling to say: 'What are you doing in my state? How many jobs?' " he said.
Contact the writer:
402-444-1543, erin.golden@owh.com
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