Monday, January 21, 2013

BNSF Railway announces $4.1 billion capital commitment program for 2013, up 12.5% on 2012

Last Friday, 18 January, BNSF announced a planned 2013 capital commitment program of approximately $4.1 billion, approximately a $450 million increase over its 2012 capital spend of $3.6 billion.

The largest component of the capital plan is spending $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.

In addition, the program includes about $250 million for continued installation of federally mandated positive train control (PTC) and $550 million for terminal, line and intermodal expansion and efficiency projects. BNSF’s expansion and efficiency projects will be primarily focused on capacity expansion to accommodate Bakken Shale related industrial products growth, intermodal terminal expansion, such as the completion of BNSF’s Kansas City Intermodal Facility, and other terminal improvements to enhance productivity and velocity.

“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 Matthew K. Rose, chairman and chief executive officer. “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."

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