“We are targeting 2023 capital spending of $3.6 billion, pending final approval by our Board of Directors.”

In context

“pliance did improve 11 points sequentially, as supply chain congestion alleviated, resulting in less stack containers at the inland ramps. Near the end of the quarter, we successfully onboarded the Schneider Intermodal business and remain actively engaged to manage that transition. Turning to Slide 13 to review our network efficiency metrics, which also like 2021’s fourth quarter measures, locomotive productivity, workforce productivity and train length all declined sequentially driven by lower volumes in the back half of the quarter and winter weather challenges. Entering 2023, the team remains focused on strengthening the network while recovering lost productivity. Moving to Slide 14, we continue to exercise discipline in our capital spending, while delivering value to our shareholders. We are targeting 2023 capital spending of $3.6 billion, pending final approval by our Board of Directors. While the projected increase from last year, we expect capital spending to remain in line with our long-term guidance of less than 15% of revenue. As always, our first capital dollars will support our existing infrastructure. This spending will harden our infrastructure, renew older assets and support safe operations. For 2023, in addition to a higher inflationary environment, the elevated capital spending will be driven by increased locomotive spending of $175 million. With 430 modernized locomotives currently in the fleet, we will bring the total modernized to over 1,000 by the end of 2025. These modernizations not only help build resiliency into the network through enhanced reliability and productivity, but also further the progress towards our carbon emission reduction goals. We conti”