Tuesday, January 26, 2010

BNSF: $2.4 Billion for Capital Expenditure in 2010

Class I railroad BNSF Railway Inc. plans to spend $2.4 billion on infrastructure and equipment in 2010, a 10 percent drop in expenditures compared to last year.

Despite 2009 revenues dropping nearly $600 million to $3.3 billion, the Fort Worth, Texas-based railroad said it remains committed to a high level of capital expenditure.

During 2010, BNSF plans to spend about $320 million to purchase 170 locomotives with the remaining $2.1 billion set for infrastructure projects, including freight car upgrades, signal systems, technology systems such as the federal government mandated positive train control, and track development and upgrades.

“We remain committed to making the necessary investments to protect and grow the value of our franchise despite an uncertain economic environment,” said Matthew K. Rose, chairman and chief executive officer, in a statement.