Union Pacific on Feb. 5, 2016 announced a 2016 capital plan of approximately $3.75 billion, about $550 million lower than 2015. The plan includes $375 million for Positive Train Control. At the same time, UP announced a new safety program based on evaluating grade crossings where incidents are more likely to occur.
"Given the decline in volume, we have taken a hard look at our capital plan and continue to invest for safety, productivity and where returns meet our threshold of reinvestability," said Rob Knight, Union Pacific Chief Financial Officer. "These investments will create value for our customers and strong returns for our shareholders in the years ahead."
The UP Board declared a quarterly dividend of 55 cents per share on the company’s common stock, payable March 31, 2016, to shareholders of record Feb. 29, 2016. UP has paid dividends on its common stock for 117 consecutive years.
Additionally, UP reported that is has improved public safety by reducing railroad crossing accidents 3% in 2015 to 2.28, which is the total number of Federal Railroad Administration reportable grade crossing accidents per million train miles.
Launched in 2015, UP’s Crossing Assessment Process (CAP) focuses attention on crossings with certain characteristics where incidents may be more likely to occur. “While all UP crossings that comply with company maintenance standards are safe for the traveling public, drivers continue to make mistakes at some of them,” UP said. ”CAP helps identify those crossings and find safety enhancements.”
"Our initial review showed 25% of accidents happen at just 4% of grade crossings," said Cameron Scott, UP’s Executive Vice President-Operations. "As we find ways to enhance safety at these crossings, we create some real leverage to improve safety."
For private crossings, the company works with landowners to find alternative access that doesn't cross the railroad.
Union Pacific's UP CARES public safety program allows the company to work with communities through a variety of outreach channels. Thousands of UP CARES events are held annually across Union Pacific's 23-state network to educate pedestrians, motorists and truck drivers about how to stay safe around railroads and grade crossings.
In 2015, the company drew positive national attention with the launch of two social media campaigns targeting photographers, motorists, joggers and millennials. The campaigns generated social media engagement on channels such as Facebook and YouTube as audiences viewed and shared videos, images and rail safety ideas.