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To: BNSF Industrial Products Customers

Network Update for Friday, June 23, 2017

Operational Performance
The operation experienced some decreases in overall performance this week. Car, train and locomotive velocities were reduced by a few percentage points compared to the previous week. The number of total trains held also remains at an elevated level versus the average from the previous June.

As we have reported, BNSF maintenance crews remain very active throughout the network with several significant projects in both our North and South Regions. Customers can review the current track maintenance schedule and map here for more information regarding these projects and potential delays. The work being conducted, which includes rail replacement, new rail tie installation, track undercutting and bridge construction, is essential to ensuring the safety and fluidity of the railroad. We continue to implement procedures, such as the re-routing of some traffic, to minimize service disruption.

Severe weather also impacted operations in our Heartland Division last weekend, specifically in central and eastern Nebraska. More than 20 trains were delayed after high winds of nearly 100 miles per hour Friday night downed multiple trees on our main lines in the Lincoln and Omaha areas. Some subdivisions remained congested into the start of week but have since normalized through the affected locations.

Independence Day Holiday Operating Plan
BNSF’s Carload 2017 Independence Day operating plan will remain focused on meeting customers’ expectations while matching operations to any reductions in traffic volumes. Trains will operate normally on Monday, July 3. We will minimize the number of yard, local and road-switch assignments at terminals on Tuesday, July 4, resuming normal operations at 6:30 a.m. on Wednesday, July 5. Connecting carriers who have reduced operations for the holiday may cause delays on interline traffic. Customer Support will provide normal coverage on the days around the holiday and will maintain a limited staff on July 4.

Service Expectations for the Week Ahead
During the next several days, no significant service interruptions due to weather are expected. Extreme heat warnings will remain in place across the desert Southwest through Monday, as high temperatures in some areas will approach 120 degrees. Intense heat causes metal to expand, which can lead to a track misalignment. We are monitoring these conditions closely and will conduct more frequent inspections as necessary to ensure safety.

Below is a look at the key operational performance categories for the week ending June 22:

Total trains held for the week increased by more than 20 percent with an average 80.0 trains held versus 66.1 trains held during the prior week.

    Versus the June 2016 average: up by 118.6%

Total trains on the system was up by more than one percent versus the prior week with an average of 1,449 trains on the system.

Locomotive velocity, measured in miles per day (MPD), was 277.1, which is down by nearly three percent from the 285.8 MPD recorded the prior week.
    Versus the June 2016 average: down by 8.2%

Car velocity was down by more than four percent at 206.0 MPD versus 215.0 MPD recorded the prior week.
    Versus the June 2016 average: down by 9.2%

Train velocity, measured in miles per hour (MPH), was down by nearly four percent versus the prior week at 17.9 MPH.
    Versus the June 2016 average: down by 12.0%

Total volume was up by nearly one percent from the prior week with 199,991 units moved in Week 24 (ending June 17) versus 198,966 units in Week 23 (ending June 10).

Terminal dwell was up by more than two percent from the prior week at 26.7 hours.
    Versus the June 2016 average: up by 14.0%

As always, we thank you for your business and appreciate the opportunity to serve as your transportation service provider. We welcome your feedback and questions.

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