BNSF Railway has launched a $3.6 billion capital investment plan for 2026, saying that $2.8 billion of that sum will be devoted to physical maintenance on its freight transportation network.

Those maintenance projects will include replacing and upgrading rail, track infrastructure like ballast and rail ties, and maintaining rolling stock. It will consist of approximately 13,000 miles of track surfacing and/or undercutting work, the replacement of 2.5 million rail ties and more than 400 miles of rail.

According to the Fort Worth, Texas-based railway, investing in existing infrastructure results in fewer unscheduled service outages that can slow down the rail network and reduce capacity.

In addition, the plan calls for $358 million to be designated for expansion and efficiency projects. Within that amount, major facility projects include completing property acquisitions and continuing development activities for the planned Barstow International Gateway project in California and continuing development and starting construction activities for a future intermodal facility in the Phoenix area.

Major line expansion projects include track expansions at BNSF’s Galesburg, IL, and Winslow, AZ, yards to increase switching capacity, supporting network service performance and asset (railcars and locomotives) productivity initiatives.

Class 1 rail operator Norfolk Southern is advancing its fleet modernization plan by adding 40 new locomotives, saying they will provide fuel efficiency, reduced emissions, enhanced reliability, and crew comfort.

The engines from Wabtec mark the railroad’s first new locomotive purchase since 2022, and are expected to be delivered in the second half of 2026.

According to Norfolk Southern, the model ES44AC locomotives add reliability by using the newest generation of control systems, which enable real-time remote diagnostics and live operational views, like an IT department accessing a computer screen. This innovation will help reduce delays by spotting potential issues before they become larger problems.

With about 1,600 high-horsepower locomotives currently active, this investment ensures Norfolk Southern remains highly competitive and continues delivering on customer goals efficiently, the company said.

Railroad giant Canadian Pacific Kansas City (CPKC) said today it had ordered 30 Tier 4 locomotives from Progress Rail to be built in Indiana in 2026, continuing the renewal of its locomotive fleet as part of an ongoing, multi-year $800 million investment.

The order follows a previous order that will see the pending delivery of 70 Tier 4 units built in Texas by Wabtec, and also the purchase of 100 more Wabtec Tier 4 locomotives built in Texas in 2025.

More specifically, in January, CPKC expects to receive the first two of 70 Wabtec Evolution Series ET44AC Tier 4 locomotives being built this year for CPKC at the company's manufacturing facility in Dallas, Texas. And in the second half of 2026, CPKC expects to take delivery of 30 new EMD SD70ACe-T4 Tier 4 freight locomotives to be manufactured at Progress Rail's facility in Muncie, Indiana. These locomotives are part of an order for 65 new Tier 4 locomotives to be built by Progress Rail.

"Our purchase of additional new Tier 4 locomotives, proudly made in the USA, continues CPKC's commitment to renew our locomotive fleet through a more than US$800 million investment in American manufacturing capacity," said Mark Redd, CPKC Executive Vice President and Chief Operating Officer. "We are investing in our road locomotive fleet for growth and to maintain our industry-leading service for our customers and the North American economy, powered by a fleet with improved reliability and fuel efficiency."

A proposed merger between Class 1 railroads Union Pacific and Norfolk Southern is on pause after federal transportation regulators ruled that the companies’ application was incomplete, and instructed them to decide by February 17 if they plan to refile.

The U.S. Surface Transportation Board (STB) said Friday night that “the UP-NS major merger application submitted on December 19, 2025, is incomplete because it does not contain certain information required by the Board’s regulations. Under the law, the Board therefore must reject the application. This decision is solely on the incompleteness of the December 19 application and should not be read as an indication of how the Board might ultimately assess any future revised application.”

Rail sector analysts said they expected Union Pacific to “move swiftly” to make necessary changes and refile its application. According to TD Cowen, the missing details included an analysis of future competitive impacts and a summary of merger agreement disclosures covering issues such as conditions, contracts, and timing. Once the updated application is filed, the STB should issue its final decision in 2027, the firm said.

In the meantime, several voices in the rail industry continued their opposition to the deal, applauding the regulators’ move to delay the deal, and saying they hoped the second version of the application would meet the same fate.

In a statement, shippers trade group the American Chemistry Council (ACC) lauded the STB’s decision, saying the merger would concentrate too much power in a single company. “Decades of experience make one thing clear: excessive consolidation in freight rail drives up costs, erodes service, and undermines the resilience of America’s supply chain. When competition shrinks, affordability suffers. U.S. manufacturers, farmers, energy producers—and ultimately consumers—simply cannot absorb another merger that tightens the grip of a few dominant railroads and leaves shippers with nowhere else to turn,” the ACC said.

Neither Union Pacific nor Norfolk Southern have issued public statements about the decision.