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Transactions - MARCH 28, 2018

BNSF Railway plans $230m capital program in California for 2018

by Jody Barhanovich

BNSF Railway Co. (BNSF) has announced that its 2018 capital expenditure program in California will be approximately $230 million. This year’s plan includes several capacity expansion projects in addition to scheduled maintenance projects to ensure BNSF continues to operate a safe and reliable rail network.

BNSF operates a 2,000-mile network in California and has invested approximately $1 billion to expand and maintain its network in the state over the past five years. In 2018, additional production track and new lift equipment will be installed at the Los Angeles Intermodal Facility. At the Stockton Intermodal Facility, BNSF will extend the existing north lead track to improve switching capability.

On the Needles subdivision, BNSF will begin the multi-year construction of a third main track between West Needles and Ibis. Capacity through the city of Needles will also be expanded by adding approximately four miles of quadruple main track to the existing triple track. The 2018 maintenance program in California includes more than 570 miles of track surfacing and/or undercutting work as well as the replacement of approximately 40 miles of rail and close to 100,000 ties.

The 2018 planned capital investments in the state are part of BNSF’s $3.3 billion network-wide capital expenditure program announced last month. These investments include $2.4 billion to replace and maintain core network and related assets, approximately $500 million for expansion and efficiency projects and $100 million for continued implementation of Positive Train Control (PTC). Another element of its capital plan will be $300 million for freight cars and other equipment acquisitions.

BNSF Railway is a North America freight transportation company. BNSF operates approximately 32,500 route miles of track in 28 states and also operates in three Canadian provinces. The company transports consumer goods, grain and agricultural products, low-sulfur coal, and industrial goods such as petroleum, chemicals, housing materials, food and beverages.

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