Union Pacific will increase its capital spending by 25 percent to $3.25 billion in 2011, reports the Journal of Commerce.

UP capital exenditures in 2010 totaled $2.6 billion.

UP said it will be purchasing as many as 200 new locomotives in 2011, upgrade numerous corridors to accommodate double-stack container cars, and replace a 100-year-old bridge across the Mississippi River at Clinton, Iowa, the Journal of Commerce reported.