Union Pacific To Buy Battery-Electric Locomotives From Caterpillar, Wabtec

·1 min read
  • Union Pacific Corp (NYSE: UNP) plans to purchase 20 battery-electric locomotives for testing in yard operations. The company expects the combined purchases and upgrades to yard infrastructure to exceed $100 million.

  • The railroad will purchase the locomotives from Progress Rail, a Caterpillar Inc. (NYSE: CAT) company, and Westinghouse Air Brake Technologies Corp (NYSE: WAB) (Wabtec).

  • Union Pacific anticipates the first units to arrive on-site in late 2023, with complete delivery by late 2024. The locomotives will be used in rail yards in California and Nebraska.

  • Union Pacific Railroad has ordered 10 FLXdrive battery-electric locomotives from Wabtec. The ~2.5-MWh locomotives are powered solely by 7,000 battery cells, providing Union Pacific with a zero-emission solution for its yard operations.

  • The 10 FLXdrives will enable the railroad to eliminate 4,000 tons of carbon annually from its rail yards. Wabtec will manufacture the new locomotives in the U.S.

  • Caterpillar will manufacture the locomotives under this order in Muncie, Indiana.

  • Price Action: UNP shares are trading lower by 0.23% at $244.03, WAB by 0.24% at $87.10, and CAT down by 6.16% at $199.12 on the last check Friday.

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