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BNSF $2.45 billion capital commitment program
BNSF Railway Company (BNSF) announced its planned $2.45 billion capital commitment program for 2008. BNSF anticipates leasing 200 locomotives with a cost of about $400 million and investing over $200 million in track and facilities to expand capacity to continue to meet demand for consistent freight rail service. The 2008 capacity expansion program is expected to be approximately $350 million lower than 2007.For 2007, BNSF’s Return on Invested Capital (ROIC) was 10.5%, a modest decrease from 2006. “Although we saw a decline in our ROIC for 2007, we continue to believe in the long-term growth potential of our franchise and in our ability to improve our returns,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer.
Rose added, that “For 2008, BNSF currently expects to spend more than $1.8 billion to keep our infrastructure strong by refreshing track, signal systems, structures, freight cars, and upgrading technologies.”
Some of the major 2008 capacity expansion programs are:—Southern Transcon—Continue to install double- or triple-track; including a second main line across Abo Canyon in New Mexico;—Coal Route—Continue to install double-track in Nebraska and Wyoming;— Intermodal Facilities—Expansions at Kansas City, Los Angeles, and Memphis; and— Other Infrastructure—Sidings between Fort Worth and Houston, Texas
A subsidiary of Burlington Northern Santa Fe Corporation, BNSF Railway Company operates one of the largest railroad networks in North America, with about 32,000-route-miles in 28 states and two Canadian provinces. The railway is among the world’s top transporters of intermodal traffic, moves more grain than any other North American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulfur coal to generate about 10 percent of the electricity produced in the United States.
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