BNSF to pump US$4.1 billion into rail network to meet greater US demand

BNSF Railway Company (BNSF) has unveiled a record 2013 capital commitment programme totalling US$4.1 billion designed to increase rail freight capacity in its core network with new equipment purchases to accommodate anticipated demand growth.

The main element of the capital plan apportions $2.3 billion to developing its core network and related assets. Other key components are plans to spend $1 billion on locomotive, freight car and other equipment acquisitions, reports the UK's Transport Intelligence.

"This record capital plan continues our long-term focus on ensuring our network is prepared for the growing US demand for freight rail," said BNSF chairman and CEO Matthew Rose.

An additional $250 million has been set aside for continued installation of the federally mandated positive train control (PTC), plus $550 million for terminal, line and intermodal expansion, and efficiency projects.

The report said the railway's expansion and efficiency projects will concentrate mainly on capacity expansion to accommodate Bakken Shale related industrial products growth, intermodal terminal expansion, such as the completion of BNSF's Kansas City Intermodal Facility, and other terminal improvements to enhance productivity and velocity.

The 2013 capital plan is $450 million higher than last year when the company's capital spend amounted to $3.6 billion.

"Given the importance of our low cost supply chain to the US economy, our privately funded rail infrastructure is well positioned to ensure the US ability to compete in global markets," Mr Rose added.