(BNSF issued the following news release on January 24.)
FORT WORTH, Texas — BNSF Railway Company (BNSF) today announced its planned $2.4 billion capital commitment program for 2006, about 10 percent higher than 2005’s spending. For the second consecutive year, BNSF anticipates investing about $400 million in track and facilities to expand capacity — for customers in coal, agricultural products, industrial products and intermodal — to meet increasing demand for consistent freight rail service.
Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer, pointed out that, “We are increasing our capital investment program in 2006 to meet anticipated future volumes because we are confident that our Return on Invested Capital (ROIC) will continue to improve. For 2005, ROIC was 10.1 percent, a significant improvement from 7.9 percent in 2004 and 6.6 percent in 2003.”
“For 2006, BNSF currently expects to spend more than $1.4 billion to keep our infrastructure strong by replacing track, signal systems, structures, rebuilding rolling stock, and implementing new technologies,” Rose said. “Compared with 2005, this represents an increase of about $100 million. Also, we will acquire 310 locomotives at a cost of about $550 million.”
Some of the major 2006 capacity expansion programs are:
* Southern Transcon — Double- or triple-track another 40 miles and start building a second main line across Abo Canyon, a project scheduled for completion in 2007;
* Coal Route — Expand Lincoln, Nebraska, Yard, and add about 50 miles double- and triple-track on the Powder River Basin Joint Line and in Nebraska;
* Intermodal Facilities — Expansions at Alliance, Texas; Houston; Logistics Park – Chicago; Memphis; San Bernardino, California; Seattle; Los Angeles, and St. Paul, Minnesota.
* Other Infrastructure — Extend sidings in Washington, Texas and British Columbia; expand and improve fueling facilities in Nebraska, Texas, Illinois and New Mexico.
A subsidiary of Burlington Northern Santa Fe Corporation (NYSE: BNI – News), BNSF Railway Company operates one of the largest railroad networks in North America, with about 32,000-route-miles in 28 states and two Canadian provinces. The railway is among the world’s top transporters of intermodal traffic, moves more grain than any other North American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway is an industry leader in Web-enabling a variety of customer transactions at http://www.bnsf.com .