Wabtec to Modernise Union Pacific Locomotives in $1.2 Billion Agreement

Union Pacific and Wabtec have signed a landmark agreement that will see a total modernisation of the former’s AC4400 locomotives.

The contract, worth 1.2 billion USD, represents the largest locomotive modernisation investment in rail industry history, and builds on Union Pacific’s 2022 order – which is set for completion in 2026.

Once completed, the newly upgraded fleet is expected to enhance the railroad’s overall operational efficiency, service reliability and network performance.

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.

Wabtec’s modernisation programme will see the lifespan of each locomotive extended, the fleet’s standardisation improved and allow Union Pacific to take advantage of next-generation control and diagnostics technologies.

Each upgraded locomotive will also deliver more than a 5% reduction in overall fuel consumption, a 14% increase in tractive effort and an 80% improvement in reliability.

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.

The locomotives will be equipped with a suite of Wabtec hardware and digital technologies, and each unit will receive the FDL Advantage (FDLA) engine upgrade for enhanced fuel savings; LOCOTROL® Expanded Architecture to support safe, efficient operation of longer trains; and the new Modular Control Architecture, which unlocks the next‑generation data, diagnostics and software capabilities.

Signed in the fourth quarter of 2025; the agreement marks Union Pacific’s fourth major modernisation order from Wabtec since 2018. Once completed, the railroad will have more than 1,700 modernised locomotives at its disposal.

All production will be handled at Wabtec’s US facilities, with deliveries set to begin sometime in 2027.