(The Associated Press circulated the following article on May 9.)
DALLAS — Union Pacific Railroad and BNSF Railway Co. on Monday announced plans to expand their jointly owned rail line in Wyoming’s Southern Powder River Basin coal fields.
The railroads, which have been under fire for delays in delivering coal to power plants, will build more than 40 miles of third and fourth main line tracks. The project will cost about $100 million over the next two years.
The new project is in addition to the construction of 14 miles of a third main line track completed in spring 2005 and an additional 19 miles of the third main line under construction and scheduled to go into service later this month.
Total cost of the 75-mile capacity expansion will be about $200 million, split between the lines two owners, Omaha-based Union Pacific and Fort Worth, Texas-based BNSF.
“The investment in the joint line is a strategic part of Union Pacifics coal network operations,” UP president and chief executive Jim Young said. “Ongoing infrastructure development improvements in the Southern Powder River Basin will enhance our ability to serve our customers and meet this nations energy demands.”
Said BNSF chairman, president and CEO Matthew K. Rose: “This Joint Line project and the magnitude of our investment underscores BNSFs commitment to this country’s coal and power industries.”
The 40-mile project was recommended by Montreal-based rail engineering firm CANAC, which has evaluated Wyoming coal demand the past decade. The increased capacity should help meet the annual projected growth in demand for Southern Powder River Basin coal in 2007 through 2009.
“I’m very pleased at this investment in Wyoming infrastructure,” Wyoming Gov. Dave Freudenthal said. “I’m also encouraged by the action, which reflects a new level of responsiveness to our need for more rail capacity to move Wyoming coal to market. This project could have a significant impact on our ability to sell Wyoming coal.”
In 1985, the Joint Line handled 19 million tons of coal. To meet the growing demand for western coal, volume grew steadily and, in 2005, the Joint Line capacity had grown to handle an all-time record 325 million tons.
The improvements announced Monday will enable the Joint Line to handle in excess of 400 million tons.