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To: All Industrial Products Customers

Rail Talk – Quarterly Industrial Products Update

As we move forward into fall, I wanted to take this opportunity to provide a video message about the Industrial Products world and how BNSF is responding to dynamic changes in the marketplace. The following "Rail Talk" video will also highlight the service improvements we've made this year and the record investments we're making on the railroad to expand capacity and drive greater network efficiencies.

We continue to make great progress in completing the more than 30 terminal and line capacity expansion projects scheduled this year. This presentation, which you may have seen at our Industrial Products Summit, provides a more detailed look at our 2015 capital investments, including animations showing how new double-track, sidings and Centralized Traffic Control (CTC) contribute to improved throughput velocity and greater capacity.

I also want to bring to your attention the year-end deadline for Positive Train Control (PTC) and the potential implications for our customers. We have made significant progress in the installation of PTC however, as we have communicated, BNSF and all other Class I railroads will not meet the federal statutory deadline for full implementation by December 31, 2015. We have expressed our serious concerns to Congressional leadership regarding our ability to lawfully operate any train on subdivisions where PTC is mandated, but not yet installed, beginning January 1, 2016. We have publicly stated that we will not willfully violate federal law, nor ask our employees to do so. BNSF would also not expose our customers' companies to the potential liability of operating in violation of the law.

The scope of PTC across our network is significant enough that not operating on PTC-mandated subdivisions will effectively shut down the network. It is imperative that federal legislation is enacted to extend this deadline and prevent this outcome. We will provide additional updates on our operating plans as this deadline approaches to assist you in making the appropriate planning decisions for your business.

As always, we welcome your feedback and questions regarding our efforts to serve you in the best manner possible. Thank you for choosing BNSF as your transportation service provider.


David L. Garin
Group Vice President, Industrial Products

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