More than $100 million slated for maintenance and expansion
BNSF Railway Company plans to invest more than $100 million from its 2006 capital program to expand rail capacity in California and to maintain its track, facilities and equipment in good condition.
BNSF’s 2006 capacity enhancements in California include a $26 million expansion of parking and stacking capacity at BNSF’s Hobart intermodal facility in Los Angeles, a $16 million track expansion on BNSF’s main line near East Barstow, and a $9 million expansion of parking capacity at BNSF’s San Bernardino intermodal facility, in addition to continuing work on a third main line on the Cajon subdivision.
Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer, said in a letter to California Governor Arnold Schwarzenegger outlining BNSF’s capital plans, “We are proud of our ability to provide transportation services to the businesses and communities we serve in California. We look forward to continuing to grow our capacity in a way that facilitates growth for the California economy, along with the necessary environmental sensitivity to the citizens of your great state.” About $600 million of BNSF’s 2006 capital program will be used to acquire 310 low-emissions locomotives, many of which will operate through California.
BNSF has increased its capital budget for the second year in a row as a result of increased returns on its capital investments and continued increases in demand for freight rail transportation. However, even with BNSF’s improved returns, the need for expanded rail capacity is expected to outpace the ability of private railroads to invest enough capital.
That’s why Rose also expressed appreciation to the Governor for Caltrans considering a $155 million allocation to add a third rail line and additional overpasses between Los Angeles and Fullerton. “The BNSF/Caltrans partnership has been invaluable as together we build California’s rail infrastructure for passenger and freight mobility,” he said.
Rose said that as long as BNSF’s return on capital investment and freight rail demand continued to increase, BNSF is committed to expanding capacity and improving customer service while keeping its physical plant strong.