BNSF Announces USD 5 Billion Capital Commitment Program
OREANDA-NEWS. BNSF Railway Company (BNSF) announced a new single-year record capital commitment plan of approximately USD 5 billion for 2014, approximately a \\$1 billion increase over its 2013 capital spend.
The largest component of the capital plan is spending USD 2.3 billion on BNSF's core network and related assets. BNSF also plans to spend approximately USD 1.6 billion on locomotive, freight car and other equipment acquisitions. In addition, the program includes about USD 200 million for continued installation of positive train control (PTC) and approximately USD 900 million for terminal, line and intermodal expansion and efficiency projects.
BNSF handled more than 50 percent of the volume increases for the rail industry in 2013. The growth was led by an 8 percent increase in domestic intermodal units, an 11 percent increase in Industrial Products volumes led by crude-by-rail related traffic, a 3 percent increase in coal volumes and a fourth quarter surge in agricultural products. This growth is on top of a 2012 BNSF total volume base of more than 9.6 million units. Much of the capacity expansion in the 2014 capital plan is for infrastructure investment on BNSF's Northern Corridor to put the company in position to meet all customer service expectations, including Amtrak.
BNSF's expansion and efficiency projects will be primarily focused on line capacity improvements to accommodate growth in agricultural products, intermodal, automotive, and industrial products volumes related to crude oil production, and other terminal improvements to enhance productivity and velocity. More than USD 900 million of the capital plan is for expansion and maintenance in the Northern Corridor.
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