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BNSF outlines $6 billion capex plan

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Written by: William C. Vantuono, Editor-in-Chief

BNSF on Jan. 15, 2015 announced details about the major capital projects it plans to complete in 2015 to maintain and grow its rail network.

These planned capital investments are part of BNSF’s 2015 capital plan of $6 billion, which was announced last November and is the company’s largest planned capital expenditure in its history.

The investments include $2.9 billion to replace and maintain core network and related assets, nearly $1.5 billion on expansion and efficiency projects, $200 million for continued implementation of PTC, and about $1.4 billion for locomotives, freight cars, and other equipment acquisitions.

In BNSF’s North Region (Illinois, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wisconsin), the railroad will invest approximately $1.5 billion across eight states for engineering maintenance and line expansion projects, of which approximately $700 million is planned for projects to expand the rail lines and Positive Train Control (PTC) in that region. BNSF said its North Region has experienced the most rapid growth in recent years. It is the corridor used to move agriculture and coal to export facilities in the Pacific Northwest, petroleum products produced in the region that are destined for refinery facilities, and for consumer products shipped to and from marine ports in the Pacific Northwest. The North Region is also a destination point for materials that support the production of crude oil in the Bakken shale formation.

In BNSF’s South Region (Arizona, Arkansas, California, Kansas, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas), the railroad plans to spend approximately $800 million in nine states for engineering maintenance and line expansion projects, of which $175 million is planned for line expansion initiatives and continued implementation of PTC. The South Region includes BNSF’s high-speed Transcon (transcontinental route) with more than 2,000 miles of double track that allows customers to move freight from West Coast marine ports to interchange facilities in Chicago as well as major rail terminals in Kansas City, Fort Worth, Denver, and St. Louis.

In the Central Region (Alabama, Colorado, Iowa, Missouri, Nebraska and Wyoming), primarily used for the movement of coal, BNSF will invest approximately $650 million across six states for engineering maintenance and line expansion projects, of which almost $260 million is planned for line expansion projects and continued implementation of PTC.

A few specifics:

North Region:

• Continue to install double track on the Glasgow subdivision between Minot, N.Dak., and Snowden, Mont., located in the far western part of the state.

• Extend the siding on the Dickinson subdivision located between Mandan, N.Dak., and Glendive, Mont., and expand the terminal at the Dickinson yard to accommodate expected growth in single-car volumes.

• Convert the entire Devils Lake subdivision, located between Minot and Grand Forks to CTC (centralized traffic control), which will improve capacity for freight operation while improving on-time performance of Amtrak passenger trains.

• Complete implementation of CTC on the Hillsboro subdivision, located in eastern North Dakota. Upgrade the connection track between the Hillsboro subdivision and the Devils Lake subdivision to permit faster train speeds.

South Region:

• Connect two sidings on the Mojave subdivision, which runs from Bakersfield to Mojave, Calif., to create a short double-track segment that will increase capacity.

• Construct double track on the Panhandle subdivision located between Wellington and Avard, Okla., to improve Southern Transcon capacity.

• Construct double track on the Clovis subdivision located between Belen and Clovis, N.Mex., to improve Southern Transcon capacity.

Central Region:

• Construct two new sidings on the northern and southern ends of the Hannibal subdivision located in western Illinois.

• Construct two double-track segments on the Ravenna subdivision, located in Nebraska, which will greatly improve capacity on this heavily-trafficked coal route.

• Extend sidings at six locations on the Brush subdivision, located east of Denver, to improve the velocity of southern coal flows.

“Building on the 2014 capacity increases, we will continue investing in our railroad to make us ever more capable of getting agriculture, energy supplies and a wide range of consumer and industrial products where they want to go,” said BNSF President and CEO Carl Ice. “At BNSF, we believe strongly in working with our customers to help them supply the world with food, energy, and products that grow and build our economy. These unprecedented capital investments demonstrate to our customers how deeply committed we are to building a prosperous future for all of us.”

For more details about the planned projects for 2015, see the map on bnsf.com.


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