OMAHA, Neb. (AP) — American freight railroads are planning to spend $29 billion this year on upgrades to their tracks, locomotives and other equipment.
The Association of American Railroads said Monday that this year's capital spending will be higher than the $27 billion the railroads spent last year.
Railroads are investing in their tracks to make sure they can keep up with increased demand as the economy continues to improve.
But major railroads have also faced pressure in the past year to improve service, especially in the Northern Plains, because agriculture shipments were delayed while crude oil shipments surged.
The trade group says railroads are also planning to hire roughly 15,000 people this year to help handle growing rail traffic and replace departing rail workers.
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