BNSF Railway Announces $6 Billion Capital Improvements Plan

The BNSF Railway announced earlier this month a $6 billion capital spending plan that includes about $1.5 billion in engineering maintenance and line expansion products along its routes eight northern US states.

The railroad — which is a subsidiary of Berkshire Hathaway, the Nebraska-based holding company of billionaire investor Warren Buffett — is targeting its northern routes in support of anticipated growth in the oil industry, as well as agriculture and coal products.

Problems in the region have plagued BNSF since 2013 due to bad weather, surging crude oil production, and a bumper crop in grain that substantialy increased demand for rail cars to carry agricultural products to ports in the Pacific Northwest where they could be transported to overseas markets.

The recent drop in oil prices will not affect the railroad’s capital investment plans, according to BNSF spokeswoman Amy Casas.

“We fully expect to execute on our 2015 capital expenditure plan regardless of what happens in the short term to certain commodities,” Casas told DC Velocity. “Our capital programs are about investing in our railroad and continuing to position ourselves to meet anticipated future demand.”

The railroad will invest $800 million for engineering maintenance along its southern routes, which includes its high-speed transcontinental route that links West Coast ports to Chicago. In its central region, which are primarily used to transport coal within six states, the BNSF wil invest about $650 million this year.