“With 430 modernized locomotives currently in the fleet, we will bring the total modernized to over 1,000 by the end of 2025.”

In context

“023, 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 continue to invest capital for growth. On the Intermodal front, we are investing in additional capacity at the Inland Empire terminal and we will be expanding our footprint in Kansas City. And on the capacity side, we will continue to invest in projects like sidings that drive productivity, allow us to handle more car loadings and improve our network efficiency. Wrapping up on Slide 15, we are dedicated to improving our service product in 2023. Slide 15 provides a roadmap of the key activities to achieve that goal. We demonstrated meaningful improvement in our safety results in 2022 through an enha”