(BNSF Railway issued the following on January 21, 2009.)
FORT WORTH, Texas — BNSF Railway Company (BNSF) today announced a planned 2009 capital commitment program of $2.7 billion, which is expected to be approximately $150 million lower than 2008. BNSF currently expects to spend $1.9 billion to refresh track, signal systems, structures, and freight cars, and to upgrade technologies. The Company also anticipates acquiring approximately 350 locomotives at a cost of about $675 million. These locomotives are about 15 percent more fuel efficient than the locomotives they will replace.
“Our 2009 capital program reflects a continued focus on ensuring our infrastructure remains strong and improving the efficiency of our operations,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “Because of the significant volume declines associated with the economy, the expansion portion of the 2009 capital program is minimal, reflecting ongoing work on projects already started.”
For 2008, BNSF’s Return on Invested Capital (ROIC) was 10.7 percent, up from 10.0 percent in 2007 but slightly lower than 2006’s ROIC of 10.8 percent. “Over the last few years we have been able to maintain our ROIC above 10 percent. We recognize the importance of achieving adequate returns for our shareholders, which will allow continued investment in our infrastructure. As we look forward, we continue to believe in the long-term growth potential of our franchise and in our ability to improve returns,” said Rose.
A subsidiary of Burlington Northern Santa Fe Corporation (NYSE: BNI), 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 www.bnsf.com.