BNSF lowers capital expenditures budget slightly for 2020

BNSF lowered its overall budget for capital expenditures in 2020 from 2019 levels, although more funding will be allocated toward replacing and upgrading network assets.

The privately-held,  Western U.S. carrier expects capital investments to total $3.4 billion, according to a Jan. 31 note to customers. Of that, approximately $2.55 billion will go to replace and upgrade rail, rail ties and ballast, as well as maintain BNSF’s rolling stock. Maintenance improvements will involve approximately 11,000 miles of track surface and/or undercutting work, and it will include approximately 489 miles of rail and nearly 2.7 million rail ties.

Also in this year’s capital expenditures budget is $581 million that will go toward expansion and efficiency projects in key growth areas such as BNSF’s Southern and Northern Transcon routes and connections between Southern California and Chicago, as well as the Pacific Northwest to the Upper Midwest.

In contrast, BNSF planned a capital investment budget of $3.57 billion in 2019, which included $2.47 billion for the replacement and maintenance of core network assets, $760 million for expansion and efficiency projects, and $340 million for freight cars and other equipment acquisitions.