PITTSBURGH — Union Pacific and Wabtec have signed a $1.2 billion agreement to modernize UP AC4400 locomotives, which Wabtec says is the largest locomotive modernization investment in rail industry history.
The deal follows a $1 billion order in 2022 to modernize 600 locomotives, the last of which is slated to be delivered this year [see “UP plans major locomotive rebuild program,” Trains.com, July 27, 2022]. While the announcement today (Feb. 4) does not specify the number of locomotives involved, it says that upon its completion, UP will have more than 1,700 modernized locomotives in its fleet.
The agreement, reached in the fourth quarter of 2025, is the fourth major UP modernization order for Wabtec since 2018. Deliveries from the new order will begin in 2027.
“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,” Union Pacific CEO Jim Vena said in a press release. “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.”
The upgraded locomotives are projected to deliver a reduction in fuel consumption of more than 5%, a 14% increase in tractive effort, and an 80% improvement in reliability.
“Our continued partnership with Union Pacific reflects a steady, forward-looking investment that positions the railroad and its customers for continued success,” said Wabtec CEO Rafael Santana. “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.”
Locomotive features will include the FDL Advantage engine upgrade, Locotrol expanded architecture to support operation of longer trains, and Modular Control architecture featuring next-generation data, diagnostics, and software.
The UP deal is the latest in a burst of locomotive orders that has seen new locomotive orders from CPKC for both Wabtec and Progress Rail [see “CPKC announces 135-unit locomotive order …,” Trains.com, Jan. 21, 2026] and a Wabtec order from Norfolk Southern [see “Norfolk Southern orders 40 …,” Jan. 22, 2026].
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