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To: All BNSF Customers

Service Update for Friday, July 25, 2014

For the week ending July 22, the seven-day average for the number of trains BNSF had on the system rose to 1,874, which is an average of 27 more trains than the prior week. This week’s average trains on the system also compares favorably to our baseline period in early February when we had an average of 78 fewer trains on the system. More trains on the system can also mean more congestion and slower train speeds. However, train velocity, on a miles per hour basis, has remained steady and locomotive velocity, which we measure as miles per day, is up slightly week over week. So despite more trains on the system, we have been able to move them faster.

This improving performance is also showing up in our weekly movements. In the period leading up to the July 4 holiday, we were moving volumes of nearly 200,000 units each week. Since the holiday, movements have begun to increase with last week’s result exceeding 197,000 units. Our Industrial Products unit, which hauls everything from building materials to energy products, reached an all-time high for weekly volumes with 42,099 units moved last week.

In addition to experiencing good performance in deliveries, we continue to make good weekly progress on reducing the number of past due orders for grain cars. For the week, past due grain car orders are down more than 10 percent from the prior week and we continue to be focused on coal loadings and customer stockpiles.

Despite this influx in volume, we continue to see service improvements in all our key metrics. Week-over-week performance for the week of July 22 remained relatively flat, but overall our service metrics continue trending positive when compared to the baseline week of February 7.

Key Service Metrics
On-time performance is down slightly, driven by some lingering effects from the outages caused by recent flooding. However, we experienced good improvements across our network in other key metrics.

    For the week ending July 22, overall on-time performance decreased a little over seven percentage points compared to the prior week, but is still six percentage points better than our baseline week in early February.
    System velocity, which is defined as miles per day (MPD), increased to 178 MPD for the week ending July 22 compared to 177 the prior week. The result is close to five percent better than our baseline week in early February when we were at 170.8 MPD.
    Our trains holding average is down 53% when compared to the baseline, but it did trend up slightly (3.7%) week-over-week.

As always, we appreciate the opportunity to serve as your transportation service provider and welcome your feedback and questions.

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