Privately held Western U.S. railroad BNSF (NYSE: BRK) expects to spend $2.99 billion in 2021 for capital projects that will upgrade and maintain the company’s rail network.
“Every year through our capital plan we work to ensure we are able to continue to operate a safe and efficient rail network, provide our customers with the level of service they have come to expect from BNSF as well as position ourselves for future growth opportunities,” said BNSF President and CEO Katie Farmer. BNSF is part of Berkshire Hathaway.
The lion’s share of capital expenditures will go toward replacing and maintaining BNSF’s core network and related assets, which BNSF hopes will result in fewer unscheduled service outages.
About $2.41 billion will go toward maintenance projects, including replacing and upgrading rail and track infrastructure like ballast and rail ties. The plans consist of nearly 11,000 miles of track surfacing or undercutting work and the replacement of 428 miles of rail and approximately 2.6 million rail ties, BNSF said.
Approximately $400 million will go toward multiyear expansion and efficiency projects. One project is to double-track several segments in eastern Kansas that are part of BNSF’s Southern Transcon route between the West Coast and the Midwest. Another is a bridge project near Sandpoint, Idaho, that will help increase train capacity in the Pacific Northwest.
About $180 million will go toward freight car and other equipment acquisitions.
BNSF’s capital expenditures budget for 2020 was $3.08 billion.
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