News & Reviews News Wire BNSF Railway commits to more than $3 billion in capital spending NEWSWIRE

BNSF Railway commits to more than $3 billion in capital spending NEWSWIRE

By Angela Cotey | February 3, 2020

| Last updated on November 3, 2020

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FORT WORTH, Texas — In a regular service advisory, BNSF Railway began telling customers on Jan. 31 that it will spend more than $3 billion on capital projects throughout its network.

BNSF’s statement is as follows:

“BNSF’s 2020 capital investment plan reflects our emphasis on keeping the network in the best condition it has ever been as well as expansion projects aimed at meeting customer demands. Every year, we work to ensure that our capital plan enables us to continue to operate a safe and reliable rail network as well as addresses the needs of our customers today and in the future.

“The largest component of this year’s $3.4 billion plan, approximately $2.55 billion, will primarily be for replacing and upgrading rail, rail ties and ballast (which are the main components for the tracks on which BNSF trains operate) and maintaining our rolling stock. This year’s maintenance program will include approximately 11,000 miles of track surfacing and/or undercutting work and the replacement of approximately 489 miles of rail and nearly 2.7 million rail ties.

“Track bed excavation – Siding extension project at Ash Fork, Arizona (January 22, 2020)
The siding is being extended to 16,000 feet, allowing for longer trains to operate to and from Phoenix.

“Approximately $581 million of this year’s capital plan has been allocated for expansion and efficiency projects. Most of these projects are focused on key growth areas along BNSF’s Southern and Northern Transcon routes, connecting Southern California with Chicago and the Pacific Northwest to the Upper Midwest, respectively.

“We will provide further details on many of the line capacity projects in subsequent updates throughout the year.”

More information is available online

11 thoughts on “BNSF Railway commits to more than $3 billion in capital spending NEWSWIRE

  1. I would suggest that a change in federal and state tax policy should be considered vid a vis rail.
    Considering the cost of building and maintaining roads, I would suggest a tax recision formula should be devised that would return tax monies to the carriers i n direct proportion to the number of ton-milles they take off the nation;s highways. The program would be more than self-liquidating on a cost basis and make non-water ground transport much more efficient. It would also bury PSR deep in the bowels of corporate failures. Give it some thought , fellows, and see if you agreee or disagree.*One caveat: there wouldneed to be a strict prohibition against holding company or hedge fund control, direct or indirect, of the carriers.

  2. Herb: BNSF is well aware of the UP/ex-Spokane International. BNSF wants no one (especially UP) to have any say as to how their traffic is operated on their Northern Transcontinental, especially since such an arrangement would undoubtedly lead to enhancements in UP infrastructure, improving their competitiveness. Burlington Northern did indeed acquire the Milwaukee’s line across Snoqualmie Pass when the Milwaukee bowed out. But that was in the dearth-of-traffic 1980s when late BN not only got rid of the Snoqualmie Pass line, but mothballed the parallel Stampede Pass route. The approach to Snoqualmie Pass might be “the lowest of the three routes”, or rather the less steep. But it’s much steeper than the “4th route” BN/BNSF had/has and that’s the ex-SP&S water level route along the Columbia River where unit trains are routed today. The “ever problematic” Cascade tunnel route remains the only route over the Cascades (in other words, excluding the SP&S) in Washington State in continuous use since it was built. And to rebuild the Milwaukee? How many billions do you have? No track; bridges missing, structures and roadways built over the right-of-way as well as much of the right-of-way being a well-known trail. Good luck!

  3. Paul Bouzide: A follow up to Mark Meyer’s note. In Google Maps you can see the double-track Transcon head off to the northwest at Williams Junction. You are right that there are portions of the Transcon where the two lines are separated, however.

    At Williams Junction, the old mainline, which is now all Phoenix Branch, heads to the west to Ash Fork. If you “fly” over to the southwest corner of Ash Fork, you can see the remnants of the wye where the old main line continued west, and the Phoenix branch headed south on the southeast leg of old wye. You can also see the remnants of a southwest leg of the wye where the trains coming east on the old main line could turn south down the Phoenix branch.

    With the line relocation noted by Mark Meyer, it was possible for the old main line to be abandoned west of that Ash Fork wye all the way west to the point where the Crookton cutoff rejoins the original grade.

    Fascinating stuff to still be able to see the old grade today!

  4. Paul Bouzide: Ash Fork is not on the Southern Transcon. The Crookton cutoff (of 1960) relegated Ash Fork to Phoenix branch line status. The eastward 1.8 percent climb from Ash Fork to Williams Jct. remains.

  5. I understand the Ash Fork project includes a flyover. While almost the entire Southern transcon is 2MT allowing trains to run in any direction on any track, there are some differences in ruling grade between Ash Fork and Winslow that favor the use of one track for eastbounds and the other for westbounds.

    My understanding is that the flyover will allow for changing tracks (and possibly for diverging to/from Phoenix) while minimizing conflict delays.

  6. Looks like BNSF is the anti-PSR company. They re-invest profits into the plant while others dis-invest in plant by siphoning off dividends. Who has the better future? CSX boasts of future opportunities. BNSF builds the future. Who is going to have the greater ability to deliver?
    Different topic. Has BNSF never heard of ther old Spokane International, now a branch of UP? Seems as if a traffic sharing agreement could be devised that would eliminate the need to build added trackage across Pend D’Oreille lake
    Question: why on earth didn’t BNSF buy the abandoned ROW across Snoqualme Pas when the Milwaukee road folded? The tunnel is much shorter than the ever problematic Cascade tunnel and thr approach grades are the lowest of the three routes.. Someone dropped the ball. Maybe it could yet be retrieved?
    .

  7. I’m supposed to allot 4% of my home’s value each year for maintenance? I wish someone had told me that years ago. To fix my home now would require $3B.

    Serious side: I wish some of that capital would put the Empire Builder back on schedule; other than the Lake Pend Oreille (Ponderay) second RR bridge, of course.

  8. With BNSF assets at about $90B spending $3B is reasonable. Homeowners are recommended to spend about 4% of their home’s value each year to maintain their abode. BNSF is doing about the same.

  9. I would suspect that work on the second bridge across Lake Pend Oreille to double track that choke point in the Idaho Panhandle will be in their 2020 capital plan somewhere for the Northern Transcon, as BNSF has recently cleared some permitting hurdles for that project.

    BNSF has also been putting third tracks on long uphill grades over the last several years on the Southern Transcon, and they still have two single track bridge chokepoints on that route, so perhaps we will get some insight in to those types of projects.

  10. Ho-hum. No comments on today’s lead story? Sounds like most of it is routine maintenance which under accounting standards is capitalized. The last sentence says capex details to follow. Until that happens not much to react to.

    So far the only capex detail is the expanded siding on the Ash Fork branch. The last time I recall mention of the Ash Fork branch was I think before I was born. Glad to know it’s still in service and has growing traffic.

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