BNSF to Infuse $5 Billion in Capital for 2014 Program

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Researched by Industrial Info Resources (Sugar Land, Texas)--Burlington Northern Santa Fe Railway Company (BNSF) (Fort Worth, Texas) is in the process of infusing $5 billion in capital to improve freight-hauling operations. BNSF is a subsidiary of Berkshire Hathaway (NYSE:BRKA) (Omaha, Nebraska).

BNSF will spend $1.6 billion to buy locomotives, freight cars and other equipment to improve efficiency. In addition, the program includes about $200 million for continued installation of positive train control, a system of functional requirements for monitoring and controlling train movements to provide increased safety.

More than $1.7 billion is expected to be spent on BNSF's Northern Corridor in the Midwest and West Coast regions. Most of the projects are state-wide freight rail network upgrade and rehabilitation programs. The company is planning large $150 million-plus rehabilitation projects on networks in Nebraska, Kansas and California.

Project scope includes work to track, intermodal terminals, rail yards, hump yards, sidings, transloading facilities and automotive distribution, plus supporting equipment and systems to maintain a state-of-good-repair and to improve safety throughout the network.

BNSF will continue to improve safety on rail networks hauling crude oil from the Bakken area. "We never thought we competed with pipeline until four years ago, when we moved our first unit train of crude by rail," said Dean Wise, vice president of BNSF. "Now BNSF is moving eight trains a day."

The company is also seeking bids from railcar makers for up to 5,000 new tank cars with thicker walls and ends; increased protection of safety and pressure valves; and other features that go beyond industry standards adopted two years ago.

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