Thursday, February 02, 2012

BNSF sets $3.9 billion capex for 2012

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Warren Buffett and Matt Rose Warren Buffett and Matt Rose BNSF

BNSF Railway Co. on Wednesday announced a planned 2012 capital commitment program of approximately $3.9 billion, up $400 million, or about 11.4%, from its 2011 capital spend of $3.5 billion.

The largest component of the capital plan is spending $2.1 billion on BNSF’s core network and related assets, the company said. BNSF also plans to spend approximately $1.1 billion on locomotive, freight car, and other equipment acquisitions.

The program also includes about $300 million for federally mandated positive train control (PTC), and $400 million for terminal, line, and intermodal expansion and efficiency projects. BNSF’s expansion and efficiency projects will be primarily focused on coal routes to improve velocity and throughput capacity and the new intermodal facility at Kansas City.

“Investment in BNSF’s rail freight infrastructure is an investment in American jobs and competitiveness. It will ensure our infrastructure remains strong and improve the efficiency of our operations,” said Matthew K. Rose, BNSF chairman and chief executive officer. “BNSF remains committed to making the necessary investments to maintain and grow the value of our franchise’s capacity to meet customers’ needs and to provide the nation’s supply chain with more efficient freight transportation.”

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