BNSF sets $2.4 billion capital spending budget for 2006
After posting record annual revenue for 2005, BNSF Railway Co. set a $2.4 billion capital spending budget for 2006 about 10 percent higher than 2005.
“For 2006, BNSF currently expects to spend more than $1.4 billion to keep our infrastructure strong by replacing track, signal systems, structures, rebuilding rolling stock, and implementing new technologies,” said Matthew K. Rose, BNSF’s chairman, president and chief executive officer. “Compared with 2005, this represents an increase of about $100 million. Also, we will acquire 310 locomotives at a cost of about $550 million.”
BNSF anticipates investing about $400 million in track and facilities to expand capacity. Some of the railroad’s largest capacity expansion programs for this year are:
* Southern Transcon — Double- or triple-track another 40 miles and start building a second main line across Abo Canyon, a project scheduled for completion in 2007.
* Coal route – Expand Lincoln, Neb. yard, and add about 50 miles of double- and triple-track on the Powder River Basin Joint Line and in Nebraska.
* Intermodal facilities – Expansions at Alliance, Texas; Houston.
* Logistics park – Chicago; Memphis; San Bernardino, Calif.; Seattle; Los Angeles; and St. Paul, Minn.
* Other infrastructure – Extend sidings in Washington, Texas and British Columbia; expand and improve fueling facilities in Nebraska, Texas, Illinois and New Mexico.