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Rail Infrastructure Spending

Railroad investments to meet growing demands

Brian SweeneyBNSF RailwayInternational Legislators ForumDeadwood, SDJune 26, 2015

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2005-2014 BNSF Volumes

2005 2006 2007 2008 2009 2010 2011 2012 2013 20147,500,000

8,000,000

8,500,000

9,000,000

9,500,000

10,000,000

10,500,000

11,000,000

10,415,685

BNSF Units (in thousands)

2006 Units = 10,617K

2009 Units = 8,387K

Source: Association of American Railroads (AAR) data

Con-sumer Prod-ucts 1,185-5.2%

In-dus-trial Prod-ucts494

+3.0%

Coal604

+6.5%

Agri-cultural

233+15.9%

Con-sumer Prod-ucts 5,040+0.1%

In-dus-trial Prod-ucts1,991+6.2%

Coal2,270+1.8%

Agri-cultural

974+1.9%

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BNSF Volumes

2014 TOTAL BNSF VOLUME 10,275 +1.8%

2014 TOTAL UNITS AND % CHANGE FROM 2013

In Thousands

1ST QUARTER 2015 AND % CHANGE FROM 1ST QUARTER 2014*

1ST QUARTER 2015 TOTAL BNSF VOLUME 2,517 +0.8%

*Source: Association of American Railroads (AAR) CS54 data through week 13

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015P

Replacement Capital Expansion

Other PTC

Locomotive Equipment

$6.0

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BNSF Aggressively Deploying Capital to Meet Service Expectations

BNSF CAPITAL INVESTMENT OF $53B FROM 2000 - 2015$ Billions

$2.3$1.9

$2.1$2.0

$2.6

$3.1

$3.8$3.4 $3.4 $3.3

$3.6

$2.7

$4.0$3.6

$5.5

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$5.5B Record Capital Investment in 2014

44%

20%

32%

4%

Core Network and Related Assets

Expansion and Efficiency

Locomotive, Freight Car, and Other Equip

PTC

$2.4 billion

Core Network and Related Assets

$1.8 billion

Loco, Freight Car, & Other Equip

$1.1 billion

Expansion & Efficiency

$200 million

PTC

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2014 Expansion of All Key Resources

• 613 locomotives (leased and purchased)

• +7,000 people added

• Track• More than 70 Miles of Double Track

• 11 New Sidings & 16 Siding Extensions

• 108 Miles CTC

• Intermodal Facilities - $156M in Expansion• Logistics Park Kansas City – Fully Operational

• Alliance & Houston Hubs – Track & Parking

• Phoenix & Stockton Hubs – Track

• Tower 55 - Velocity improvement through Dallas/Ft. Worth

48%

25%

23%

4%

Core Network and Related Assets

Expansion and Efficiency

Locomotive, Freight Car, and Other Equip

PTC

BNSF’s 2015 Capital Commitment $6B

$2.9 billion

Core Network & Related Assets

$1.4 billion

Loco, Freight Car, & Other Equip

$1.5 billion

Expansion & Efficiency

$200 million

PTC

BNSF Spending Even More in 2015 - $6B

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BNSF’s 2015 $6 Billion Capital Plan

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Double Track and CTC Miles Added 2014-2015

Category 2014 2015P

DT Miles Added 82 129

CTC Miles Added 72 806

New Sidings 12 6

Extended Sidings 11 15

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Transcon – Vaughn, New Mexico

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Transcon – Vaughn, New Mexico

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Transcon – Vaughn, New Mexico

North Region – 2015 Projects

Bellingham sub: one double-track

project

Glasgow sub:complete three

double-track projects started in 2014, and begin one additional

double-track project

Dickinson sub:one siding extension

Jamestown sub:completing CTC signaling project started in 2014

Devils Lake sub:

CTC signaling

Noyes sub:one new siding

Hillsboro sub:CTC signaling and

connection upgrade

Staples sub:one CTC signaling project and three double-track

projects

Midway sub:one double-track

projectMonticello sub:

subdivision connection and track

upgradesSt. Paul sub:one triple-track

project

Aurora sub:CTC signaling project with

crossover plants, plus begin construction on two

more double-track segments

St. Croix sub:

CTC signaling project with crossover

plants

Beardstown sub:five siding extensions

plus CTC signaling on the north end of the

subdivision 13

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Locomotive Fleet Meeting Demand for Power

0

20

40

60

80

100

120

140

160

180

Source: BNSF internal data

TOTAL TRAINS HOLDING FOR POWER

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Service Expectations Looking Forward

North Region• Improved performance compared to 2014, particularly Fargo west

to the Pacific Northwest ports.• Gradual velocity improvement along key route between Twin Cities

and Chicago as new capacity is installed throughout the year. Majority of new capacity in service by end of 3Q2015.

Central Region• Improved reliability and consistency compared to 2014.• Additional capacity to address congestion and improve the

throughput into/out of Denver.

South Region• Improved performance compared to 2014.• Expansion projects targeting last remaining bottlenecks on

Southern Transcon; only seven miles of single track will remain on the Southern Transcon going into 2016.

Intermodal Facilities Expanding (2014-2019)

Facility DescriptionAlliance, Los Angeles, Phoenix, Stockton, St. Louis, St. Paul

Strip track & parking

LPC, Corwith Strip track, support track & parking

Houston, San Bernardino

Strip track, lead, & parking

LPKCStrip track, support track, parking & crossover

Spokane Strip track

Stockton Support track

South Seattle, Willow Springs Parking

SCIG New facility

Planned Between 2015 and 2019

EXPANSION PROJECTS

In Process / Approved (2014)

STOCKTON

SOUTH SEATTLE

ALLIANCE

HOUSTON

ST. PAUL

SAN BERNARDINOLOGISTICS PARKKANSAS CITY (LPKC)

PHOENIX

CHICAGO (CORWITH)

WILLOW SPRINGS

LOGISTICS PARK CHICAGO (LPC)

ST. LOUIS

SCIG

LOS ANGELES

SPOKANE

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Maintenance ensures an optimized, safe and reliable network

Approximately $2.9 billion in 2015 for:

• 950 miles of rail relay

• 3.5 million ties

• 1,300 turnouts

• 775 miles of undercutting

• 6,200 miles of high speed surfacing

• PTC

• Heavy bridges and structures

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