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Rail News Home Kansas City Southern

April 2014

Part 1 : Freight and passenger railroads ramp up 2014 budgets to improve more infrastructure

Part 2 : Large freight railroads forge a heavy slate of infrastructure work for 2014

Part 3 : Small freight railroads' infrastructure programs suggest a busy year

Part 4 : Passenger railroads share ambitious infrastructure programs for 2014

Rail News: Kansas City Southern

Large freight railroads forge a heavy slate of infrastructure work for 2014



2014 MOW Plans (By Budget Amount)

BNSF Railway Co.

2014 capex budget: About $5 billion (a record), includes $2.3 billion for core network and related assets, $900 million for terminal, line and intermodal expansion and efficiency projects, and $200 million for positive train control work.

2013 capex budget: About $4 billion (including $2.3 billion for core network and related assets).

Reasons for increase: Much of the capacity expansion (more than $900 million in capital) this year is for infrastructure work on the Northern Corridor to better meet all customer service expectations, including Amtrak. Expansion and efficiency projects will be primarily focused on line capacity improvements to accommodate growth in agricultural products, intermodal, automotive and industrial products volumes related to crude-oil production.

Rail: Install or replace 1,216 track miles of rail with continuous-welded rail (CWR); includes new out-of-face relay, new curve relay and secondhand relay rail.*

Double/triple track projects: Total of 201 track miles in various locations. Install double track from Minot, N.D., to Glasgow, Mont., $162 million.**

Sidings: Add sidings between Fargo and Grand Forks, N.D.; Bismarck, N.D., and Glendive, Mont.; Minot and Grand Forks; and Fargo and Minot to address congestion.**

Grinding/surfacing: Surface 18,988 track miles.

Ties: Install 3,523,000 wood and 521,010 concrete ties.

Ballast: Install 5,975,000 net tons.

Bridge work: Total of 221 major bridge projects, including some in Canada. Work includes rebuilds, re-decks and ballast deck conversions, and bridge fills. Heavy bridge program includes work in Bellefontaine, Mo.; Ponca City, Okla.; and Plattsmouth, Neb.*

*Information from BNSF's presentation Jan. 8 at the National Railroad Construction and Maintenance Association Inc.'s (NRC) annual conference

**Information from March 7 press release

Union Pacific Railroad

2014 Engineering Plan: $1.73 billion (infrastructure replacement), also about $680 million for capacity work/commercial facilities.

Rail: Replace/install about 900 miles of rail.*

Trackwork projects: Replace 31,700 concrete ties, install 16,670 tons of ballast and renew 29 crossings in Iowa and Nebraska, $4.5 million, complete by May 31; and replace 89,900 ties, install 39,700 tons of ballast and renew surfaces at 103 crossings in Missouri, $11.8 million, complete by June 2.**

Double track: Install double track and sidings at Glidden/Eagle Pass, and install 43 miles of additional second main track on the Sunset Corridor.*

Sidings: Build and extend sidings along I-5 corridor, near El Paso, Texas, and near New Orleans and Shreveport, La.*

Ties: Install or replace about 3.9 million ties.*

Facilities: Mainline fueling station in Santa Teresa, N.M.; expand crude-oil capacity in Louisiana and West Texas; expand/add frac sand origination capacity in Upper Midwest; expand Mesquite, Texas, intermodal and auto facility; complete various frac sand and pipe unloading projects; and expand storage-in-transit (SIT) yards.*

*Information from UP's presentation Jan. 6 at the NRC's annual conference

** Information from March 19 and 24 press releases


2014 MOW budget: $1.05 billion (in mixed currency), includes $881 million for track and roadway, $49 million for signals and communications, $19 million for work equipment and $10 million for bridges and structures.

2013 MOW budget: $1.03 billion (in mixed currency), included $876 million for track and roadway, $100 million for bridges and structures, $39 million for signals and communications, and $20 million for work equipment.

Reason for increase: Budget consistent with last year. Focus is on asset utilization and replacement as required.

Rail: Install 364 miles of new rail and replace 167 miles of partially worn rail.

Double track: Build 20 to 25 track miles of double track from Winnipeg, Manitoba, to Edmonton, Alberta, and from Winnipeg to Chicago; still subject to executive and board approval. As part of Prairie Capacity Expansion Program, build 10.5 miles of double track and 2-mile-long siding, and expand Winnipeg yard on Prairie Northline, $56.4 million cost in 2014.*

Sidings: Build 3 to 5 long sidings, 1 to 2 in each region, subject to executive and board approval.

Grinding/surfacing: Grind 19,500 pass miles and surface 9,000 to 9,500 track miles.

Ties: Install 1,654,000 wood and 93,000 concrete ties.

Ballast: Install 1.4 million metric tons.

Bridge work: Total budget of $100 million for various projects across the system. Major projects paid for with 2014 special capital include year 3 of 10-year, $25 million Quebec Bridge project; year 4 of 4-year, $12 million Sault Ste. Marie Bridge project; and year 4 of 4-year, $20 million Dubuque Bridge project.*

Facilities: 2013/14 marketing business development projects in 2014 include an Edmonton intermodal terminal expansion, continuation of Brampton intermodal terminal expansion, Bienfait Yard expansion for crude oil, and continuation of Ultramar unloading facility and support track in Quebec.*

*Information from CN's presentation Jan. 8 at the NRC's annual conference

Norfolk Southern Railway

2014 MOW budget: $935 million (replacement capital); $603 million (maintenance capital).

2013 MOW budget: $855 million (replacement capital); $609 million (maintenance capital).

Reasons for increase: A 13 percent increase in capital rail replacement and 8 percent increase in tie capital installations in 2014.

Rail: Replace or install 501 miles of new and relay rail, CWR.

Double track: Build 4.5 miles of double track in Grove, Ky., $19 million, complete by 2014's end.

Sidings: Build 3.2-mile siding in Goshen, Ind.; extend siding in Shenandoah Junction, W.Va., to 9,000 feet.

Grinding/surfacing: Grind 18,000 pass miles.

Ties: Install 2.6 million new and relay wood ties.

Ballast: Install 2.6 million tons.

Bridge work: Total budget of $60 million for new and rehab bridge projects. Major replacement project calls for replacing a pin-connected truss bridge in Monroe, Mich., $13.9 million.

Facilities: Expand yard in Bellevue, Ohio, add 45 tracks; expand intermodal facility in Rutherford, Pa., by adding more than 400 trailer spaces, 4 more pad tracks, 4 more storage tracks and another lead track.

Unusual/unique project: Engineering Department has a significant amount of roadbed stabilization projects planned in 2014.

CSX Transportation

2014 MOW budget: $760 million

2013 MOW budget: $793 million

Rail: Replace or install about 380.2 track miles of rail; 322.9 track miles of new CWR in various locations and 57.3 track miles of relay CWR in various locations.

Double track: Continue adding second main track in River Subdivision between Selkirk, N.Y., and northern New Jersey, 7 miles; install new second main track and sidings in Chattanooga Subdivision between Nashville and Chattanooga, Tenn., 5 miles.

Grinding/surfacing: Grind 21,000 miles; surface 2,993 miles with tie teams and 2,600 miles with CAT teams.

Ties: Install 3,065,000 wood and 7,500 concrete ties.

Ballast: Install 3.3 million tons.

Bridge work: Complete steel bridge replacements and improvements systemwide, $20 million; replace 230-foot steel truss crossing NS and Amtrak in Baltimore, $15 million; complete timber bridge replacements and upgrades systemwide, $14 million; replace deck pinned truss in North Branch, W.Va., $10 million; complete concrete bridge replacements and upgrades systemwide, $10 million; complete culvert replacements and drainage improvements systemwide, $7 million; replace deck riveted truss in Springfield, Tenn., $6 million; complete deck improvements systemwide, $6 million; and complete movable bridge reliability improvements systemwide, $3 million.

Facilities: Plan to spend $140 million to $150 million on capacity projects in 2014, including new inspection yard near Hopkinsville, Ky. Intermodal maintenance projects for 2014 include relay rail and timber/surface work in Cincinnati, New Orleans and Savannah, Ga., yards. Major facilities projects for 2014/15 include consolidating yard offices in Birmingham, Ala., Buffalo, N.Y., and Lakeland Fla., improving the locomotive service center in Toledo, Ohio, and improving crew and office space at the Mobile, Ala., car shop.*

*Information from CSX's presentation Jan. 7 at the NRC's annual conference

Canadian Pacific

2014 MOW budget: $380 million

2013 MOW budget: $394 million

Reason for decrease: Operational efficiencies.

Rail: Install 385 miles of new CWR and replace or install 180 miles of relay CWR.

Grinding/surfacing: About 6,000 miles.

Ties: Install 936,000 hardwood ties.

Ballast: Install 650,000 tons.

Bridge work: Complete more than 100 projects in various locations; capital funding exceeding $75 million.

Facilities: Upgrade yard in St. Paul, Minn., and Alyth Yard southeast of Calgary, Alberta.

Kansas City Southern

2014 Capex: Low 20 percent range of annual revenue in the U.S. and Mexico, with 11 percent targeted for roadway capital/maintenance and the remainder for growth projects. (Note: KCS has increased the 2014 capex budget to 28 percent of annual revenue.)

2013 Capex: About 21 percent of annual revenue in the U.S. and Mexico.

Rail: Replace about 40 miles of rail in the U.S., add three R&D tracks in Jackson, Miss., and continue to install new rail and ties between Monterrey and Nuevo Laredo, Mexico.*

Double track: Continue development of a double-track corridor between Sanchez and Nuevo Laredo, Mexico.*

Sidings: Complete new sidings in various locations.

Ties: Replace 650,000 ties in the U.S.*

Facilities: Enhance intermodal facilities in the U.S. and Mexico, and upgrade infrastructure to support developing energy opportunities. Expand an intermodal facility in Kendleton, Texas; begin building an intermodal facility in Wylie, Texas; and complete additional expansions at Sanchez Yard and Interpuerto San Luis Potosí in Mexico.*

*Information from President and CEO David Starling's "State of the Railroad" letter released on Dec. 19, 2013

Ferrocarril Mexicano S.A. de C.V. (Ferromex)

2014 MOW budget: $192.9 million (in U.S. dollars)

2013 MOW budget: $186 million (in U.S. dollars)

Reasons for increase: Will invest in a relay rail gauge in the main corridor and continue with a program of general orders reduction and prevention of the same 209 kilometers.

Rail: Install 196 miles of 100-, 115- and 136-pound rail.

Double track: Build 3.2 miles of double track in Bojay Subdivision (Tula, Mexico), $9.3 million, July start; build 4.3 miles of double track in Salamanca Subdivision, $7.8 million, May start.

Sidings: Build 1.7-mile sidings in the Santa Barbara and Esperanza subdivisions; build a 1.4-mile siding in the Doctor Subdivision; extend a Costilla Subdivision siding by 1.4 miles and a Ramos Subdivision siding by 1.7 miles.

Special/unusual trackwork: Lower grade in T line tunnels; establish semi-fixed welding plant in Empalme to continue the consolidation of 100-pound rail; and purchase equipment with ultrasound to detect internal rail defects.

Grinding/surfacing: 901 miles.

Ties: Install 604,000 concrete and 411,300 wood ties.

Ballast: Install 1,213,936 tons.

Bridge work: Replace bridge girders in 20 subdivisions, about $10.5 million total (in U.S. dollars).

Facilities: Reconfigure yards in Altamira, Monterrey, Guadalajara, Torreon, Agua Zarca, Ciudad Obregón and Ciudad Frontera; and develop new yards in Victor Rosales and Roble.

Unusual/unique work: Continue 5-year plan to reduce general orders and improve the quality of track to receive future traffic.

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