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To: BNSF Coal Customers

Network Update for Friday, October 7, 2016

Operational Performance
The operation sustained solid performance this week with good fluidity reported across the network. Both overall car and train velocity averages were slightly higher versus the prior week, while locomotive velocity continues to run above the strong 300 miles per day level. Total weekly volume moved by the railroad was robust, exceeding 200,000 units for the second time this year. We also experienced some service disruption yesterday on two of our North Line subdivisions in western Montana caused by separate incidents involving a stalled train and a trespasser fatality. Several trains were delayed due to the resulting track outages. Service through both locations was restored within a few hours, and train flows will continue to normalize into the weekend.

With several locations in our North Region receiving their first measurable snow this week, the full onset of winter weather for some areas will arrive soon. In preparation, each of our 10 BNSF operating divisions evaluates their winter action plan to ensure that the right resources and procedures are in place to address severe weather conditions. During this evaluation, teams examine their current processes, priorities and responsibilities to determine whether adjustments are needed based on past experience as well as each division's unique climatology. BNSF will enter this 2016-17 winter season ready and prepared, including some additional snow removal and anti-freezing equipment for deployment, to move your freight reliably and efficiently to its destination.

Service Expectations for the Week Ahead
As Hurricane Matthew impacts the southeastern U.S., customers may experience delays to interchange traffic bound for coastal locations in Florida, Georgia and South Carolina into early next week. Most of the BNSF network will experience mild temperatures and favorable operating conditions during the next several days. Heavy rain is possible in the Pacific Northwest but no significant service interruptions due to weather are expected.

Below is a look at the key operational performance categories for the week ending October 6:

Total trains held for the week decreased by nearly eight percent with 53.3 trains held versus 57.6 trains held during the prior week.

    Versus the October 2015 average: down by 6.8%

Total trains on the system was essentially unchanged with an average of 1,454 trains on the system versus 1,459 trains during the prior week.

Locomotive velocity, measured in miles per day (MPD), was 300.7, which is essentially unchanged from the 301.2 MPD recorded the prior week.
    Versus the October 2015 average: up by 3.0%

Car velocity was up by nearly one percent at 229.6 MPD versus 227.5 MPD recorded the prior week.
    Versus the October 2015 average: down by 0.9%

Train velocity, measured in miles per hour (MPH), was up by nearly one percent from the prior week at 19.3 MPH.
    Versus the October 2015 average: up by 1.4%
Total volume was up by more than two percent with 202,853 units moved in Week 39 (ending October 1) versus 198,188 units in Week 38 (ending September 24).

Terminal dwell was essentially unchanged versus the prior week at 24.4 hours.
    Versus the October 2015 average: unchanged

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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