Sunday, January 20, 2013

BNSF unveils 2013 capital commitment program

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BNSF Railway Co. late Friday announced its 2013 capital commitment program of approximately $4.1 billion, which the railroad said was "approximately a $450 million increase over its 2012 capital spend of $3.6 billion."

The largest component of the capital plan is a projected $2.3 billion on BNSF's core network and related assets. BNSF also plans to spend approximately $1 billion on locomotive, freight car,and other equipment acquisitions.

The program also includes about $250 million for continued installation of positive train control (PTC), as mandated by Congress, and $550 million for terminal, line, and intermodal expansion and efficiency projects. Many of those projects will be primarily focused on capacity expansion to accommodate Bakken Shale-related industrial products growth in North Dakota, South Dakota, and eastern Montana. Intermodal terminal expansion, such as the completion of BNSF's Kansas City Intermodal Facility, and other terminal improvements to enhance productivity and velocity are also listed.

"This record capital plan continues our long-term focus on ensuring our network is prepared for the growing U.S. demand for freight rail," said BNSF Chairman and CEO Matthew K. Rose. "We are focused on investing to meet our customers' expectations and to expand capacity where growth is occurring. Given the importance of our low cost supply chain to the U.S. economy, our privately funded rail infrastructure is well positioned to ensure the U.S. ability to compete in global markets."