(The following story by Dustin Bleizeffer appeared on the Star-Tribune website on May 6, 2009.)
CASPER, Wyo. — Despite a cutback in coal production in the Powder River Basin for the first time in nearly two decades, Union Pacific Railroad is banking on the long-term viability of the industry.
UP announced Wednesday it will launch a $27 million upgrade project to improve operation efficiencies between Lusk and Henry, Neb., a critical segment of the Powder River Basin coal transportation route.
Work begins today, and by the end of June crews will have removed and installed 76,000 concrete ties and 29 miles of rail, spread 98,000 tons of rock ballast and replace four switches.
The aim is to stabilize the trackbed and essentially modernize operations for one of the busiest railroad segments in the United States.
According to UP, the company spent more than $120 million in capacity improvements in recent years to support the nation’s critical energy route throughout the Midwest. This year, UP plans to spend $1.7 billion in strengthening its track infrastructure across more than 32,000 miles.
Powder River Basin coal mines shipped more than 446.5 million tons of coal via rail in 2008, accounting for about 35 percent of the nation’s coal supply. At peak production last year, the Powder River Basin filled up 75 coal trains per day. The trains are up two miles long and can haul 18,000 tons of coal each.