Rail News: Class Is
BNSF boosts capex budget to $3.9 billion for 2012

Yesterday, BNSF Railway Co. announced it has budgeted about $3.9 billion for the 2012 capital spending program compared with 2011’s $3.5 billion budget.

The 2012 budget’s largest component, $2.1 billion, will be allocated for work associated with the core network and related assets, BNSF officials said in a prepared statement. The Class I also plans to spend about $1.1 billion on locomotive, freight-car and other equipment acquisitions, and about $300 million on positive train control work.

In addition, $400 million is budgeted for terminal, line and intermodal expansion and efficiency projects, which primarily will focus on coal routes to improve velocity and throughput capacity, and a new intermodal facility in the Kansas City, Kan., area.

The capex budget “will ensure our infrastructure remains strong and improve the efficiency of our operations,” said BNSF Chairman and Chief Executive Officer Matt Rose. “BNSF remains committed to making the necessary investments to maintain and grow the value of our franchise’s capacity to meet customers’ needs and to provide the nation’s supply chain with more efficient freight transportation.”