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To: BNSF Consumer Products Customers

Network Update for Friday, November 4, 2016

Operational Performance
The operation generated relatively steady overall performance this week across the network. Car, train and locomotive velocity, while slightly lower versus the previous week, have each improved by several percentage points from the average levels reported at the beginning of October. After exceeding 300 miles per day for the second consecutive week, locomotive velocity continues to run at or near its highest level recorded year to date.

As we have reported, some isolated service challenges have negatively impacted performance on portions of our Northern Corridor between the Seattle area and Glasgow, Montana during the past several weeks. Some trains have experienced delays along this route due to a combination of events, including weather-related interruptions and necessary maintenance activity to ensure safe operation. As conditions improve along the North Line, we continue to make progress in delivering the strong performance that is expected through this busy corridor.

We are also completing some important network expansion projects as the year comes to an end. Earlier this week, nearly six miles of new double-track were placed into service on our Ravenna Subdivision in central Nebraska, between Milford and Pleasant Dale. This new double-track complements the nearly 12 miles that were added on the Ravenna Subdivision last year. The project represents how BNSF remains committed to investing in additional capacity expansion where needed to support customers' freight shipment demands.

Service Expectations for the Week Ahead
More rain is expected for coastal areas of the Pacific Northwest this weekend and into the upcoming week. With record rainfall received in October and saturated ground in many locations, BNSF crews continue to monitor track conditions closely. In our South Region, high winds and strong storms are possible today and tomorrow along portions of our Southern Transcon in New Mexico. Other areas of the network should experience generally favorable operating conditions during the upcoming week with no significant service interruptions due to weather expected.

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

Total trains held for the week was up by more than eight percent with an average 58.7 trains held versus 54.3 trains held during the prior week.

    Versus the November 2015 average: up by 8.7%

Total trains on the system was essentially unchanged with an average of 1,456 trains on the system versus 1,462 trains during the prior week.

Locomotive velocity, measured in miles per day (MPD), was 306.6, which is down by nearly one percent from the 309.1 MPD recorded the prior week.
    Versus the November 2015 average: up by 6.3%

Car velocity was down by nearly two percent at 232.0 MPD versus 236.6 MPD recorded the prior week.
    Versus the November 2015 average: up by 0.7%

Train velocity, measured in miles per hour (MPH), was down by nearly one percent from the prior week at 19.6 MPH.
    Versus the November 2015 average: down by 1.7%

Total volume was essentially unchanged with 198,953 units moved in Week 43 (ending October 29) versus 198,143 units in Week 42 (ending October 22).

Terminal dwell was essentially unchanged from the prior week at 24.4 hours.
    Versus the November 2015 average: down by 1.5%

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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