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To: BNSF Consumer Products Customers

Network Update for Friday, May 6, 2016

Operational Performance
The operation experienced relatively steady performance this week with good fluidity across the network. The average of total trains held increased by less than one train and remains at a very low level. While overall train velocity was down a fraction from the prior week, velocity for both cars and locomotives held essentially unchanged and remain close to their highest levels of the year to date.

While maintaining our core network constitutes the largest component of our 2016 capital plan, we are completing certain key expansion projects that were started last year. One of those projects, 11 miles of new double-track on our Ft. Scott Subdivision in eastern Kansas, was completed and put into service yesterday. In addition to providing greater capacity into/out of Kansas City, the new double-track will also facilitate improved velocity for traffic moving through the area.

Last week, BNSF released its 2015 Annual Review that recaps our performance in key areas, including safety, service, environmental stewardship and our support of nonprofit organizations that help make communities stronger. The digital version, now available here, includes multimedia elements that illustrate new service offerings and capabilities along with the results of our 2015 capital investments.

Key Expansion Projects Near Completion
We continue to make progress on double-tracking the entire length of our more than 2,200-mile Southern Transcon route. With just three bridges and seven miles remaining, crews working on the Pecos River Bridge project in Fort Sumner, N.M. have made significant progress. The project team has now installed 16 out of 18 pier footings that will support the second main line in that area. Some 1.4 million cubic yards of embankment is now in place and the 2.7 mile long bridge is expected to be operational later this summer.

As a result of increased demand in our automotive business, BNSF invested in expanded facilities and operations at our Alliance automotive yard in Fort Worth, Texas. The 15-acre expansion began in the fall of 2015 and we now have 1,100 of 1,600 planned new parking bays in operation. The remaining 500 spots will be completed this summer. We also enhanced the function of four support tracks with asphalt pads to allow them to serve as unload track as needed. Operationally, the Alliance automotive facility has also moved from one shift per day to two, increasing throughput and making vehicles available for pickup faster than ever. This added capacity means our Alliance automotive operation is now able to unload 800 automobiles per day with the capability to scale up to 1,200 as needed.

Service Expectations for the Week Ahead
Nearly all of the network continues to experience favorable operating conditions for early May. We are monitoring the return to a more active weather pattern expected to bring an extended period of rain and stormy weather to the central and southern Plains. Severe storms are likely in the region during the early part of the upcoming week, and we will notify affected customers should any significant service interruptions occur.

Below is a look at the key operational performance categories for the week ending May 3:

Total trains held for the week increased by nearly four percent to an average of 25.3 trains held versus 24.4 trains during the prior week.

    Versus the May 2015 average: better by 68.6%

Total trains on the system was up by nearly two percent with an average of 1,172 trains on the system versus 1,152 trains during the prior week.

Locomotive velocity, measured in miles per day (MPD), was 296.4, which is essentially unchanged from the 296.6 MPD recorded the prior week.
    Versus the May 2015 average: better by 8.3%

Car velocity was essentially unchanged at 230.4 MPD versus 229.5 MPD recorded the prior week.
    Versus the May 2015 average: better by 6.8%

Train velocity, measured in miles per hour (MPH), was down by three percent at 22.3 MPH versus 23.0 MPH recorded the prior week.
    Versus the May 2015 average: better by 23.9%

Total volume was higher by more than one percent with 176,576 units moved in Week 17 (ending April 30) versus 174,273 units in Week 16 (ending April 23).

Terminal dwell was down by more than one percent at 22.4 hours versus 22.7 hours recorded the prior week.
    Versus the May 2015 average: better by 7.4%

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