BNSF Announces 2023 Capital Investment Plan
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Berkshire Hathaway's BNSF Railway has announced a 2023 capital investment plan of $3.96 billion. BNSF's capital investments play a key role in its ability to operate a safe and reliable network while
"Our capital plan reflects our growth mindset and commitment to having the capacity and equipment we need to support our customers. Continued investment in our network through our capital plans helps ensure we run a safe, efficient and growing railroad that provides customers with the service they expect from BNSF," said Katie Farmer, President and CEO.
The largest component of this year's capital plan, $2.85 billion, is devoted to maintaining BNSF's core network and related assets. Investing in BNSF's existing infrastructure ensures the railroad is in top condition, which results in less unscheduled service outages that can slow down the rail network and reduce capacity.
Maintenance projects include replacing and upgrading rail, track infrastructure like ballast and rail ties, and maintaining its rolling stock. It will consist of nearly 14,000 miles of track surfacing and/or undercutting work and the replacement of 346 miles of rail and approximately 2.8 million rail ties. $402 million of this year's capital plan is for equipment acquisitions. Over $700 million of this year's capital plan will be for expansion and efficiency projects, adding to the nearly $2.5 billion invested in expansion projects over the past five years. This year's expansion plans support the growth of BNSF Intermodal and Automotive, Agricultural and Industrial Products customers.
On its Southern Transcon route between the West Coast and Midwest, BNSF will support traffic growth by beginning the construction of a second bridge over the Missouri River at Sibley, Missouri, completing double track for one of the last segments of single track along the Southern Transcon. The plan continues projects that add several segments of new track in Eastern Kansas and Southern California. It will also begin a multi-year terminal and fueling project near Belen, New Mexico. All four projects will increase capacity throughout the corridor. Also, in the South, BNSF will complete a second main track expansion in Fort Worth. In the Pacific Northwest, BNSF will begin a multi-year project to add double track near Spokane, Washington, including over the Spokane River and by constructing a siding near Pasco, Washington. BNSF will continue multi-year intermodal facility expansion projects in Chicago (Cicero) and Stockton, California. Also, in California, BNSF will continue its track efficiency improvement projects in San Bernardino, along with property acquisitions in the Barstow area, enabling future rail facility and infrastructure development for the Barstow International Gateway Project.
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.
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