1 Rail Infrastructure Spending Railroad investments to meet growing demands Brian Sweeney BNSF Railway International Legislators Forum Deadwood, SD June.

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Presentation transcript:

1 Rail Infrastructure Spending Railroad investments to meet growing demands Brian Sweeney BNSF Railway International Legislators Forum Deadwood, SD June 26, 2015

BNSF Volumes Source: Association of American Railroads (AAR) data

3 BNSF Volumes 2014 TOTAL BNSF VOLUME 10, % 2014 TOTAL UNITS AND % CHANGE FROM 2013 In Thousands 1 ST QUARTER 2015 AND % CHANGE FROM 1 ST QUARTER 2014 * 1 ST QUARTER 2015 TOTAL BNSF VOLUME 2, % *Source: Association of American Railroads (AAR) CS54 data through week 13

4 BNSF Aggressively Deploying Capital to Meet Service Expectations BNSF CAPITAL INVESTMENT OF $53B FROM $ Billions $2.3 $1.9 $2.1 $2.0 $2.6 $3.1 $3.8 $3.4 $3.3 $3.6 $2.7 $4.0 $3.6 $5.5

5 $5.5B Record Capital Investment in 2014 $2.4 billion Core Network and Related Assets $1.8 billion Loco, Freight Car, & Other Equip $1.1 billion Expansion & Efficiency $200 million PTC 4

Expansion of All Key Resources 613 locomotives (leased and purchased) +7,000 people added Track More than 70 Miles of Double Track 11 New Sidings & 16 Siding Extensions 108 Miles CTC Intermodal Facilities - $156M in Expansion Logistics Park Kansas City – Fully Operational Alliance & Houston Hubs – Track & Parking Phoenix & Stockton Hubs – Track Tower 55 - Velocity improvement through Dallas/Ft. Worth

BNSF’s 2015 Capital Commitment $6B $2.9 billion Core Network & Related Assets $1.4 billion Loco, Freight Car, & Other Equip $1.5 billion Expansion & Efficiency $200 million PTC BNSF Spending Even More in $6B 7

8 BNSF’s 2015 $6 Billion Capital Plan

9 Double Track and CTC Miles Added Category P DT Miles Added82129 CTC Miles Added72806 New Sidings126 Extended Sidings1115

10 Transcon – Vaughn, New Mexico

11 Transcon – Vaughn, New Mexico

12 Transcon – Vaughn, New Mexico

North Region – 2015 Projects Bellingham sub: one double-track project Glasgow sub: complete three double-track projects started in 2014, and begin one additional double-track project Dickinson sub: one siding extension Jamestown sub: completing CTC signaling project started in 2014 Devils Lake sub: CTC signaling Noyes sub: one new siding Hillsboro sub: CTC signaling and connection upgrade Staples sub: one CTC signaling project and three double-track projects Midway sub: one double-track project Monticello sub: subdivision connection and track upgrades St. Paul sub: one triple-track project Aurora sub: CTC signaling project with crossover plants, plus begin construction on two more double-track segments St. Croix sub: CTC signaling project with crossover plants Beardstown sub: five siding extensions plus CTC signaling on the north end of the subdivision 13

14 Locomotive Fleet Meeting Demand for Power Source: BNSF internal data TOTAL TRAINS HOLDING FOR POWER

15 Service Expectations Looking Forward North Region Improved performance compared to 2014, particularly Fargo west to the Pacific Northwest ports. Gradual velocity improvement along key route between Twin Cities and Chicago as new capacity is installed throughout the year. Majority of new capacity in service by end of 3Q2015. Central Region Improved reliability and consistency compared to Additional capacity to address congestion and improve the throughput into/out of Denver. South Region Improved performance compared to Expansion projects targeting last remaining bottlenecks on Southern Transcon; only seven miles of single track will remain on the Southern Transcon going into 2016.

Intermodal Facilities Expanding ( ) Facility Description Alliance, Los Angeles, Phoenix, Stockton, St. Louis, St. Paul Strip track & parking LPC, Corwith Strip track, support track & parking Houston, San Bernardino Strip track, lead, & parking LPKC Strip track, support track, parking & crossover SpokaneStrip track StocktonSupport track South Seattle, Willow Springs Parking SCIGNew facility Planned Between 2015 and 2019 EXPANSION PROJECTS In Process / Approved (2014) STOCKTON SOUTH SEATTLE ALLIANCE HOUSTON ST. PAUL SAN BERNARDINO LOGISTICS PARK KANSAS CITY (LPKC) PHOENIX CHICAGO (CORWITH) WILLOW SPRINGS LOGISTICS PARK CHICAGO (LPC) ST. LOUIS SCIG LOS ANGELES SPOKANE 16

17 Maintenance ensures an optimized, safe and reliable network Approximately $2.9 billion in 2015 for: 950 miles of rail relay 950 miles of rail relay 3.5 million ties 3.5 million ties 1,300 turnouts 1,300 turnouts 775 miles of undercutting 775 miles of undercutting 6,200 miles of high speed surfacing 6,200 miles of high speed surfacing PTC PTC Heavy bridges and structures Heavy bridges and structures

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