BNSF Railway Co. yesterday announced it has budgeted a single-year record $5 billion for capital expenditures in 2014, up about $1 billion compared with the 2013 capital spend.
Last year, the Class I budgeted $4.3 billion for capex, but about $300 million will actually be spent in 2014, reducing the 2013 capital spend to about $4 billion, said BNSF spokesperson Amy Casas in an email.
The largest component of the 2014 budget is $2.3 billion allocated for the core network and related assets. BNSF also plans to spend about $1.6 billion to acquire locomotives, freight cars and other equipment; $900 million on terminal, line and intermodal expansion/efficiency projects; and about $200 million to continue installing positive train control.
Much of this year's capacity expansion involves Northern Corridor upgrades to position the Class I to meet all customer service expectations, including Amtrak, BNSF officials said in a press release.
Expansion and efficiency projects primarily will be focused on line capacity improvements to accommodate growth in agricultural products, intermodal, automotive and industrial products related to crude-oil production, and other terminal improvements to enhance productivity and velocity, they said.
"Our capital plan continues to focus on improving our ability to meet our customers' service expectations, increasing our capacity where there is growth and strengthening our railroad to help ensure it remains the safest means of ground transportation for freight," said BNSF President and Chief Executive Officer Carl Ice.
Source: Progressive Railroading Daily News
