UP’s current capital program: $2.6 billion

Despite deteriorating traffic conditions earlier this year, Union Pacific is maintaining its capital spending program at a high level.

In a filing with the Securities and Exchange Commission late in July, UP said it had revised its program for capital improvements slightly downward to $2.6 billion.  That’s only 7% less than the $2.8 billion UP spent last year.

In this year’s first half, UP’s capital expenditures added up to $1.079 billion, compared with $1.324 billion in the corresponding period last year.

Track spending in this year’s January-June period totaled $839 million, compared with $884 million in 2008. Spending on capacity and commercial facilities was $130 million, down from $300 million. Spending on locomotives and freight cars declined to $52 million from $65 million. Spending on technology and other improvements was $58 million, down from $75 million last year.