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UP: Fritz succeeds Koraleski; capex set at $4.3 billion

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Written by: William C. Vantuono, Editor-in-Chief
Lance Fritz has succeeded Jack Koraleski as President and Chief Executive Officer at Union Pacific effective immediately, and was also elected to the railroad’s board of directors. Koraleski is now Executive Chairman. UP also set its 2015 capital investment program at $4.3 billion, about $200 million higher than 2014.

Fritz had been President and Chief Operating Officer since Feb. 6, 2014. He was Executive Vice President Pperations from 2010-2014 and previously served as Vice President Labor Relations. Prior to that, he was Regional Vice President Southern Region after serving as Regional Vice President Northern Region. He began his career with Union Pacific in marketing and sales as Vice President and General Manager-Energy.

Koraleski (pictured below), who joined UP in 1972, was appointed President and CEO in March 2012, succeeding the late Jim Young. An Omaha native, he was elected to the board of directors in July 2012 and as Chairman of the Board in March 2014.

“Lance has the right combination of leadership skills, experience, and expertise required to lead one of America’s largest and most successful companies,” said Steven Rogel, UP’s lead independent director. “The board regularly reviews and updates its robust management succession plan and we are confident Union Pacific will continue to deliver industry-leading customer service and strong shareholder returns under Lance’s guidance.”

Fritz said that he is “humbled and privileged to have the opportunity to lead Union Pacific. Our experienced leadership team is unparalleled and will continue to play a key role in shaping UP’s strategy. They join me in sharing all of our employees’ passion for our mission to serve customers, shareholders, and communities.”

Jack KoraleskiRogel added that Koraleski “helped guide Union Pacific to unprecedented financial performance with 12 consecutive quarters of record earnings results. More important, Jack steered Union Pacific through an unexpected and challenging leadership transition period. We are incredibly grateful for his energy, efforts, and dedication.”

UP said the railroad’s $4.3 billion 2015 capital program is driven primarily by equipment acquisitions and infrastructure investments. Spending on Positive Train Control is also expected to increase to $450 million, vs. $385 million in 2014.


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