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Rail News Home Union Pacific Railroad

April 2016





Part 1 : Part 1: 2016 MOW Spending Report — Survey shows tighter budgets, lighter workloads are the rule

Part 2 : Part 2: 2016 MOW Spending Report — Class Is

Part 3 : Part 3: 2016 MOW Spending Report — Short lines and regional railroads

Part 4 : Part 4: 2016 MOW Spending Report — Passenger railroads

Rail News: Union Pacific Railroad

Part 2: 2016 MOW Spending Report — Class Is



Photo: CN
CN crews will replace or lay 2.1 million wood ties this year.

Class Is
2016 MOW Plans
(By Budget Amount)

BNSF Railway Co.

2016 MOW (roadway maintenance) budget: Capital budget of $4.3 billion, includes $2.8 billion to replace and maintain core network and related assets

2015 MOW (roadway maintenance) budget: Record capital spending of $5.8 billion, included $3 billion to replace and maintain core network and related assets

Reasons for budget decrease: This year’s capital program reflects recently added capacity to support customer demand while keeping investments more in line with current volumes. Each year, the capital plan aims to balance the near-term need to regularly maintain a vast network with the outlook of customers’ longer-term demand.

Rail: Replace or install 820 miles of track, all continuous-welded rail (CWR).

Double track: Construct about 9 miles of double track.

Double-track projects: Build double track near Fort Sumner, N.M.; and construct about 6 miles of double track on the Ravenna Subdivision between Pleasant Dale and Milford, Neb.*

Sidings: Complete 1 siding. Also, extend 1 siding on the Dickinson Subdivision between Glendive and Wibaux, Mont.*

Grinding/surfacing: Grind and/or surface 21,000 miles of track.

Ties: Install or replace 3.6 million wood and 60,000 concrete ties.

Ballast: Install 5.3 million net tons.

Bridge work: A total of 260 bridge projects are planned this year, including the continuing replacement of the Washougal River bridge in Camas, Wash.; a Memphis, Tenn., bridge; and the continuation of the Pecos River bridge project and second track in New Mexico.*

Facilities: Continue a multiyear project to expand and improve BNSF Logistics Park Chicago by adding parking capacity, cranes and track to load or unload containers and handle arriving and departing trains; complete Cadet Yard west of San Antonio, including 10 classification tracks for manifest trains; enhance BNSF Logistics Park Kansas City in Kansas to enable direct rail/carload service from the facility; add parking capacity at the San Bernardino, Calif., automotive and intermodal facility; and start a several-year project at the Stockton, Calif., intermodal facility involving the construction of more track for loading/unloading containers and more parking areas.*

* Information from press releases issued in February and March

Union Pacific Railroad

2016 Engineering Plan: $1.85 billion (infrastructure replacement), also about $650 million for capacity work/commercial facilities*

2015 Engineering Plan: $1.75 billion (infrastructure replacement), also about $650 million for capacity work/commercial facilities**

Rail: Potentially replace/install about 700 miles of rail.*

Ties: Potentially install or replace about

3.95 million ties.*

Bridge work: A total of 22,354 feet of bridge replacements and 18,699 feet of deck replacements are proposed. Bridge plans call for continuing a “strong” replacement program and accelerating a timber trestle replacement program.*

Facilities: The 2015-16 capacity and commercial facility expansion projects include an addition to an East Portland facility and the possible start of construction in 2016 of a new classification yard near Hearne, Texas. The yard would feature 70 to 80 bowl tracks with dual hump leads and four trim leads. Also, continue to expand or begin expanding the Mesquite, Brooklyn and Port of Laredo intermodal terminals, and expand a storage-in-transit yard in Livonia, La.*

* Information from UP’s presentation Jan. 7 at the National Railroad Construction and Maintenance Association Inc.’s (NRC) 2016 conference in San Diego

** Budget figure from UP’s presentation at the NRC’s 2015 conference

CN

2016 MOW budget: $1.5 billion basic capital, Canadian currency

2015 MOW budget: $1.42 billion basic capital, Canadian currency

Reason for budget increase: Budget is consistent with the prior year. Will focus on asset utilization and replacement as required.

Rail: Replace or install 714 track miles, including 614 track miles of new and 100 track miles of partially worn rail.

Sidings: Although none are planned for 2016, going forward, all new and extended sidings are being built to provide 12,000 feet of clear capacity.

Grinding/surfacing: Targets are to grind 20,500 pass miles and surface 10,500 miles.

Ties: Replace or install 2.1 million wood and 58,000 concrete ties.

Ballast: Install 1.2 million tons.

Bridge work: Total budget of $129 million in Canadian currency to be spent on various basic capital projects across the system. Projects include bridge strengthening program in Sault Ste. Marie, Mich., year 6 of 8, $13.65 million; Oliver Bridge strengthening program in Superior, Wis., year 2 of 4, $10 million; and Fraser Bridge strengthening program in Vancouver, British Columbia, year 2 of 7, $6.5 million.

MOW equipment to purchase or lease: Plan to spend $24 million in Canadian currency on various equipment to be used across the system.

Norfolk Southern Railway

2016 MOW budget: $844 million

2015 MOW budget: $945 million

Reason for budget decrease: In line with a strategic plan to streamline operations, reduce costs and drive profitability. The total capital improvement budget of $2.1 billion is $300 million less than the record $2.4 billion set in 2015.

Rail: Install or replace 447.9 track miles, all CWR.

Double track: Install 5 new No. 24 universal crossovers and build 27.4 miles of second mainline as part of Piedmont Improvement Project in North Carolina, including 12.2 miles in Charlotte, 10.2 miles in Kannapolis and 5 miles in Lexington, total program cost of $545.5 million, underway. Also, install 12 control points and build 12.5 miles of third mainline as part of Indiana Gateway Project, including 6 miles in Hammond, 4 miles in Pine and 2.5 miles in Millers, $66.9 million, underway, funded by FRA’s High-Speed Intercity Passenger Rail Program; and build 10 miles of second mainline and a new No. 20 universal crossover in Gretna, Va., $37.1 million, underway and to be completed by 2016’s end, funded by commonwealth of Virginia.

Sidings: Build an 11,000-foot siding in Tennille, Ga.; and construct 2 sidings as part of Piedmont Improvement Project in North Carolina, including a 3.3-mile siding in Clegg and a 2-mile siding in Burlington, to be completed by year’s end.

Grinding/surfacing: Grind 18,000 pass miles.

Ties: Install 2.6 million new and relay wood ties.

Ballast: Install 2.4 million tons.

Bridge work: A $76 million dedicated budget for new and rehab projects, including $13.5 million for the Portageville Bridge replacement in New York to be completed by 2017’s end and $1 million for the continued rehab of the 51st Street bridges in Chicago to conclude by 2016’s end.

Facilities: Build 4 support tracks and 125 parking spaces at a facility in Lafayette, Ind.; construct 4 support tracks and 215 parking spaces at a facility in Calumet, Ind.; extend lead/support tracks and add 270 parking spaces at a Chicago facility; and build 2 support tracks at Airline Yard in Toledo, Ohio.

CSX

2016 MOW budget: $830 million

2015 MOW budget: $860 million

Reason for budget decrease: Adjusted MOW budget to reflect changes in traffic volumes and mix of freight.

Rail: Replace or install 430 track miles, all CWR.

Double track: Expect to spend between $85 million and $100 million on capacity improvements across the network, in addition to supporting continued investment in Chicago CREATE projects. Includes Reams-to-Carson double track that’s part of Richmond, Va., capacity projects set to start in 2016. The work involves 41,000 lineal feet of concrete track with 8 concrete and 1 timber turnout, and 1,800 lineal feet of timber set-off track.*

Other track projects: Acca Yard bypass involving 2 new main tracks around the facility; includes 28,000 lineal feet of concrete track and 25 concrete turnouts, plus 4,600 lineal feet of timber track with 14 timber and 24 steel turnouts. Also, build 3 universal crossovers involving a total of 7,400 lineal feet of concrete track and 14 concrete turnouts. All the work listed is part of Richmond, Va., capacity projects set to start in 2016.*

Unusual trackwork project: Continue to advance the Virginia Avenue Tunnel expansion project in Washington, D.C., which began in May 2015. Through February 2016, more than half of necessary support pilings had been drilled, 4,500 truckloads of soil had been excavated and 4,400 cubic yards of concrete had been poured. Remains on schedule for completion in 2018.

Sidings: Expect to extend a number of sidings over the next few years to provide additional capacity and serve customers along higher-volume core routes. Includes extension of Branchville siding, involving 8,600 lineal feet of timber track and 2 timber turnouts, as part of Richmond, Va., capacity projects set to start sometime in 2016.*

Grinding/surfacing: Grind 18,000 pass miles, surface 3,000 miles and perform out-of-face surfacing on 2,200 miles.

Ties: Replace or install 3 million wood ties.

Ballast: Install 2.7 million tons.

Bridge work: Improvement capital program is budgeted at $80 million and includes replacing and upgrading timber, concrete and steel bridges; replacing steel-pin trusses; improving decks; replacing culverts and improving other drainage; and enhancing the reliability of movable bridges.

Facilities: Total budget of $8.3 million for lease renewals ($2.2 million); yard electrical distribution upgrades ($1.3 million); roof replacements ($800,000); HVAC replacements ($600,000); upgrades to existing buildings ($500,000); and other projects ($2.9 million).

MOW equipment to purchase or lease: 5 tampers, 2 tamper carts and 1 stabilizer.

* Information from CSX’s presentation Jan. 7 at the NRC’s annual conference

Canadian Pacific

2016 MOW budget: $825 million for track and roadway (in Canadian dollars)

2015 MOW budget: $830 million for track and roadway (in Canadian dollars)

Reason for budget decrease: While overall expenditures are down due to significant upgrades completed since 2012, year-over-year funding for MOW activities is relatively flat.

Rail: Replace or install about 250 miles of new rail and 50 miles of relay rail.

Sidings: Build a 10,000-foot siding on the River Subdivision in Cottage Grove, Minn.

Grinding/surfacing: Grind about 15,000 pass miles and complete 7,000 spot grinding events.

Ties: Replace or install about 1.2 million hardwood and 8,700 concrete ties.

Ballast: Install about 240,000 tons.

Bridge work: Similar to last year, bridge work is planned systemwide, including replacing bridges, upgrading bridge components and completing designs for future bridge work.

Facilities: Complete St. Paul, Minn., yard expansion project.

MOW equipment to purchase or lease: Tampers and drone tampers, regulators, speedswings, spikers, spike pullers, adzers, hi-rail backhoe/excavators, rail heaters and anchor snubbers.

Kansas City Southern Railway/Kansas City Southern de Mexico S.A. de C.V.

2016 MOW budget: About 10 percent of annual revenue is targeted for roadway capital maintenance in the U.S. and Mexico

2015 MOW budget: About 11 percent of annual revenue was invested in roadway capital maintenance in the U.S. and Mexico

Rail: Replace 122 track miles of rail in the U.S. and Mexico.

Major rail projects: Build two classification tracks in Jackson, Miss.; mechanical and storage tracks at Kansas City, Mo., intermodal facility; and new switching lead at Kendleton, Texas, intermodal shipper facility. In Mexico, construct support tracks inside the API Lazaro Cardenas port and build double track in the industrial area of Quirio and La Costura.*

Sidings: Complete siding construction and expansion projects at Quirio and La Costura.*

Ties: Install about 723,000 ties in the U.S. and Mexico, both wood and concrete. Includes about 500,000 ties in the U.S.* From March 8-22, replaced 37,000 ties and improved more than 20 public and private grade crossings in Shreveport, La., $5.6 million.**

Bridge work: From Jan. 12 to Feb. 29, improved a number of bridges and replaced 25 miles of rail between DeQuincy and DeRidder, La., $15 million.***

Facilities: In the U.S., continue constructing a storage-in-transit yard in Mossville, La., and build a new classification yard for KCSR operations. In Mexico, pursue expansion projects at Interpuerto San Luis Potosi and Salinas Victoria Nuevo Leon, and begin Phase 2 work for the Sanchez Yard project involving new classification tracks and improved mechanical repair space. The yard project is designed to improve network fluidity, relieve congestion at the Monterrey and Nuevo Laredo facilities, and improve cross-border traffic flow.*

* Information from “State of the Railroad” letter released by CEO David Starling and President Patrick Ottensmeyer on Jan. 4, 2016
** Information from press release issued Feb. 24
*** Information from press release issued Jan. 11

Ferrocarril Mexicano S.A. de C.V. (Ferromex)

2016 MOW budget: $134.2 million

2015 MOW budget: $73.6 million

Reason for budget increase: Like last year, plan to focus on locomotive acquisitions and car leasing, but also on acquiring MOW equipment.

Rail: Replace or install 42.1 miles, including 28.2 miles of 115-pound and 13.9 miles of 136-pound rail.

Double-track projects: Build 4.7 miles of double track between Piedra Negras and Rio Escondido at Coahuila, $8.2 million, start in May; and build 1.2 miles of double track at Juarez-Meseta at Chihuahua, $1.7 million, start in June.

Sidings: Build a 1.7-mile siding in Amargos at Coahuila.

Grinding/surfacing: Grind or surface 1,720 miles.

Ties: Replace or install 230,647 concrete and 20,130 wood ties.

Ballast: Install nearly 800,000 tons.

Bridge work: Release metal girders for concrete slabs in Nacozari, $4.3 million; manufacture concrete slab and adapt support and assembly in Frontera, $566,200; structural reinforcement of steel bridges in Paredon, $541,900; release metal girders for concrete slabs in Bachimba, $400,000; structural reinforcement of steel bridges in Linares, $380,700; structural reinforcement of steel bridges in Tepic, $353,400; structural reinforcement of steel bridges in Nogales, $206,100; release metal girders for concrete slabs in Camacho, $124,000; bridge reconstruction work in Papaloapan, $102,100; and structural reinforcement of steel bridges in Sufragio, $101,100.

Facilities: Build or improve yards at the following locations: Irapuato at Guanajuato; San Francisco de los Romo at Aguascalientes; Victor Rosales at Aguascalientes; Tabalaopa at Aguascalientes; Rio Escondido at Coahuila; and Ciudad Frontera at Coahuila. Also, perform work at the Rio Escondido car shop at Coahuila.

MOW equipment to purchase or lease: Purchase 1 Track Star, 1 geometric defects detector, 5 Brand trucks, 5 all-in-one MOW systems, 2 pieces of automated weed-control equipment, 4 automatic tie/sleeper finders, 4 dynamic track stabilizers and 1 tamper.

Editor's note: This information from Ferromex was not included in the print version of the 2016 MOW Spending Report.

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