BNSF Announces 2015 Capital Expenditure Program
Dear BNSF Customer,
Today we announced our planned capital expenditures for 2015 will be $6 billion, which will go toward maintenance and expansion of the railroad to meet expected customer demand for service. The 2015 plan marks the third year in a row that BNSF has committed a record amount for capital investments.
Since 2000 through the end of 2015, BNSF will have reinvested more than $50 billion into our equipment, network and infrastructure for maintenance work that helps to maintain train traffic fluidity and for capacity expansion projects. Our capital investments provide clear evidence of our confidence in a growing economy and our intention to the meet the demand for service from all our customers. Once the new capital program is complete, we expect to further restore the capacity flexibility we have historically enjoyed to manage the periodic demand surges that come from a dynamic economic environment.
The largest component of the 2015 capital plan will be for the renewal of assets and maintenance, which is expected to cost $2.9 billion. Those projects will involve replacing and upgrading rail, ties and ballast that are due for updating. Track replacement projects typically make up the largest percentage of BNSF's annual capital program and are important for ensuring BNSF can operate its rail network at optimum speeds.
BNSF also plans to spend almost $1.5 billion on expansion projects. Nearly $500 million of that expansion work will occur in the Northern Region, which is where BNSF is experiencing the fastest growth. We will also increase the size of our locomotive fleet through the addition of new, energy and fuel efficient locomotives. BNSF will acquire 330 new locomotives to add to our fleet of more than 7,500 and replace others that will soon reach the end of their useful life.
We will announce the details for the various line capacity and maintenance projects we are planning for 2015 early next year.
As always, we thank you for your business and appreciate the opportunity to serve as your transportation service provider.
Executive Vice President and
Chief Marketing Officer