BNSF Railway Company has announced that it plans $6bn of capital expenditures and investments for 2015 for the maintenance and expansion of its rail network. BNSF also updated its planned capital expenditures for 2014, which now are expected to amount to $5.5bn.
“BNSF’s capital investment programme since the beginning of 2013 through the end of 2015 is unprecedented and is clear evidence of our confidence in a growing economy and our intention to meet the demand for service that comes from all our customers,” said Carl Ice, BNSF President and Chief Executive Officer. “We have made great progress in expanding the segments of our railroad that have been most constrained by rapidly increasing demand.”
The largest component of the 2015 capital plan will be for the renewal of assets and maintenance, which is expected to cost $2.9bn. These projects will focus on replacing and upgrading rails, ties and ballast that are due for updating.
BNSF also plans to spend almost $1.5bn on expansion projects. Nearly $500m of that expansion work will occur in the BNSF’s northern region, which is where the company is experiencing the fastest growth. That region primarily serves agriculture, coal, crude oil and materials related crude oil exploration and production.
In addition BNSF is set to increase the size of its locomotive fleet through the addition of new, energy and fuel efficient locomotives. BNSF will acquire 330 new locomotives to add to its fleet of 7,500 and replace others that will soon reach the end of their useful life.
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