“The 2015 plan marks the third year in a row that BNSF has committed a record amount for capital investments,” said President and CEO Carl Ice. “Our capital investment program since the beginning of 2013 through the end of 2015 is unprecedented and is clear evidence of our confidence in a growing economy and our intention to meet the demand for service that comes from all our customers. We have made great progress in expanding the segments of our railroad that have been most constrained by rapidly increasing demand. Once these new capital programs are completed, we expect to further restore the capacity flexibility we have historically enjoyed to manage the periodic demand surges that come from a dynamic and fast-paced economic environment.”
The largest chunk of BNSF’s 2015 capital plan, $2.9 billion, will be for infrastructure renewal and maintenance. These projects will go toward replacing and upgrading rails, ties, and ballast that are due for updating. “Track replacement projects typically make up the largest percentage of BNSF’s annual capital projects and are important for ensuring that BNSF can optimize its rail network for ideal speeds for trains that carry a wide range of commodities,” the railroad said.
BNSF also plans to spend almost $1.5 billion on expansion projects. Nearly $500 million of that expansion work will occur in the Northern Region, which is where BNSF is experiencing the fastest growth—as well as the most congestion. That region primarily serves agriculture, coal, crude oil, and materials related to crude oil exploration and production, such as sand for hydraulic fracturing.
BNSF will also increase the size of its locomotive fleet through acquisition of “new, energy- and fuel-efficient locomotives,” adding 330 new units to its fleet of 7,500 and replace others that will soon reach the end of their useful service life.
BNSF added it will announce the details for the various line capacity and maintenance projects it plans to undertake, particularly those in its Northern Region, in early 2015.