20
THE EMPLOYEE MAGAZINE OF TEAM BNSF SPRING 2010 Looking down the line: Leading BNSF through economic recession to recovery Last year tested BNSF’s resilience, and while volumes this year have improved somewhat, they are still significantly lower than historic levels. The BNSF executive team takes a look at 2009 and the year ahead, as well as other issues currently affecting the company. Page 2 Milestones on BNSF’s path of success 2010 marks many significant anniversaries for BNSF and will also be remembered as the year that BNSF became part of the Berkshire Hathaway family. Review some of the events in our recent history that helped lay the foundation for our success today as a company. Page 6 Safety in action: Employees close the loop on risk A cornerstone of BNSF’s safety program is risk identification and reduction. By following the closed-loop safety process, employees can identify potential risks and then systematically decrease or eliminate them. Page 10 Mechanical employees keep risk in check BNSF’s Mechanical work group is using a “Task-at-Hand” safety briefing checklist to identify potential risks. The checklist is also the catalyst for other safety discussions on reducing workplace risk. Page 11

Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

T h e e m P l o y e e m A g A z I n e o f T e A m B n S f S P R I n g 2 010

Looking down the line: Leading BNSF through economic

recession to recoveryLast year tested BNSF’s resilience, and while volumes this year have improved

somewhat, they are still significantly lower than historic levels. The BNSF executive

team takes a look at 2009 and the year ahead, as well as other issues currently

affecting the company.Page 2

Milestones on BNSF’s path of success

2010 marks many significant anniversaries for BNSF and will

also be remembered as the year that BNSF became part of the Berkshire Hathaway family. Review some of

the events in our recent history that helped lay the foundation for our

success today as a company.Page 6

Safety in action: Employees close the loop on risk

A cornerstone of BNSF’s safety program is risk identification and reduction. By following the closed-loop safety process,

employees can identify potential risks and then systematically decrease or eliminate them. Page 10

Mechanical employees keep risk in check

BNSF’s Mechanical work group is using a “Task-at-Hand” safety briefing checklist to identify potential risks. The checklist

is also the catalyst for other safety discussions on reducing workplace risk. Page 11

Page 2: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

VP, Corporate RelationsJohn Ambler

general Director, Internal CommunicationsKristen Rabe

editorSusan Green

Contributing PhotographersHoward Ande, Steve Crise,Dean Dalquist, Chuck Gierhart, Pat Hiatte, Newslink and Brian Riley

Got a Story idEa? Send story ideas to BNSF Railway Editor, via Outlook to: Communications, Corporate, or send by Internet to: [email protected] or mail to:BNSF Corporate RelationsP.O. Box 961057Fort Worth, Texas 76161-0057

addrESS ChanGES employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via BNSF‘s Intranet site at employee.bnsf.com. Go to the Employee tab, click on Life Events, Personal Changes, then Change of Address. Or you may complete and return a Personal Information Change Form (#12796) to the administrative office; mail it to Human Resources Information Systems, P.O. Box 961055, Fort Worth, Texas 76161-0055; or fax it to 817-352-7109.

Retirees: Send address changes and requests to receive Railway after you retire to BNSF Corporate Relations, P.O. Box 961057, Fort Worth, Texas 76161-0057. Please include your former employee ID number.

our vision is to realize the

tremendous potential of BnSF

railway Company by providing

transportation services

that consistently meet our

customers’ expectations.

2 raiLWay I SPRING 2010

on thE CoVErA BNSF train photographed in Montana by Steve Crise.

2009 tested our resolve and resilience like no other year in recent memory. The “Great Recession” had a significant impact on our volume and revenue, challenging all of us to adjust our operation for the declining volumes and to reduce expenses, capital spending and hiring. BNSF employees were negatively impacted in numerous ways. Our focus continues to be on getting employees back to work as our volumes permit. Tragically, we also lost six of our colleagues to fatal injuries.

Yet these challenges also revealed our ongoing strength as a company. Our people responded to the lack of topline growth by acting quickly and prudently to leverage our variable cost structure

and carefully manage expenses, while achieving some of the best service levels in our history. We continued to invest in our track and equipment to maintain a strong network. And, as always, we focused on our vision of an injury-free and accident-free workplace by taking personal accountability for rules compliance and eliminating at-risk behaviors.

Despite the many challenges, we can celebrate what we’ve accomplished. We are a culture of tough-minded optimists, and nothing demonstrates that more convincingly than the success we’ve achieved together.

The recent acquisition of BNSF by Berkshire Hathaway Inc. helps affirm that we’ve been doing the right things, in tough times as well as in good times. At the time our transaction was announced, Warren Buffett, chairman of Berkshire Hathaway, said, “Our country’s future prosperity depends on its having an efficient and well-maintained rail system. Conversely, America must grow and prosper for railroads to do well. Berkshire’s $34 billion investment in BNSF is a huge bet on that company … and the railroad industry.”

Buffett called it an “all-in wager” on the U.S. economy and one that will produce returns for the next century. As all of you know, the acquisition was formally approved by shareholders on Feb. 11, 2010, and closed the following day. I think we can all take pride in becoming part of one of the largest companies in the world. The iconic, legendary investor of the day, Warren Buffett, could have chosen any railroad, and he chose BNSF. And he did it because of the people who work here.

The reality is that, given the way Berkshire manages its assets, there’s going to be very little change to employees. If you have any doubts, here’s what Buffett has said: “We buy well-run companies and let them run.” We expect this to be business as usual; that includes no change in our corporate headquarters, company name and logo.

How did we build the company we have today? It reflects many years of hard work, focus and careful decisions, as well as the commitment and dedication of employees over many decades. In this issue of Railway magazine, we look back on some of the milestones along the way. We look especially at some of the events in our recent history that helped lay the foundation for our success today as a company – including the decision to build the track serving the huge deposits of low-sulfur coal in the Powder River Basin and the landmark agreement that paved the way for today’s intermodal growth.

While we can celebrate many successes, we know the year ahead will not be easy. Volumes have improved somewhat, but they are still significantly lower than our historic levels, and it is unclear whether the improvements reflect a sustained recovery. We also recognize the impact that continued furloughs have on employees and their families, and we will bring many back as soon as we see sustained volume increases.

We’ve said many times that our objective is to lead our company through the economic recession to the recovery. We should continue our focus, every day, on improving safety, getting more freight to the railroad, managing costs and going deeper into our customer supply chain.

I am confident in the future of our company because I’ve seen what we can achieve together. We’ve built a strong foundation in a difficult environment, and we will be ready as volumes increase. In the pages that follow, the members of BNSF’s executive team discuss their perspective on the economy and the year ahead.

Thank you for all you did in 2009 to support BNSF, and thank you for your continued efforts in 2010.

matthew K. Rose, BNSF Chairman, President and CEO

Looking down the line Leading BNSF through economic recession to recovery

Page 3: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

raiLWay I SPRING 2010 3

Executive Vice President and Chief Financial officer tom hund

Q in 2009, our ability to manage costs was very important, given the lack of topline growth. are we planning to hold steady in 2010, or are we looking to further cut costs?

a Last year was one of our most difficult years. As volumes declined, we acted quickly to adjust our operations and take other measures to reduce expenses and capital spending. We can all be proud of what we achieved during tough times.

Regardless of whether volumes are growing or not, however, we are always looking to manage costs and be more efficient. Great companies achieve superior results by growing volumes, improving pricing, and controlling costs and assets all at the same time.

In 2010, we anticipate that efficiency improvements will come from technology and process improvement, such as the Best Way initiatives that are under way at numerous terminals and other parts of our operation. We are beginning to see some improvement in volumes, though it is unclear whether these indicate a sustained recovery. Either way, we will continue our focus on improving efficiency and controlling costs.

Q how will we track our financial performance now that we don’t report our quarterly results to Wall Street? What does this mean for employees?

a Although we will not report our results to Wall Street with a formal announcement the way we have in the past, we will still need to report results to the Securities and Exchange

Executive RoundupThoughts on Navigating 2009 Challenges

Commission because we have publicly registered debt. Also, we will report our results to our new parent, Berkshire Hathaway, which is a publicly traded company.

We will measure and review our results internally with the same rigor we’ve always used. Because of the accounting for our transaction with Berkshire Hathaway, there will be some differences in results, which have yet to be completely determined. However, I don’t see any real impact to our employees.

Q now that we no longer have public shareholders, how will Finance’s role change?

a Because we will no longer have public owners to report to, we will not have quarterly earnings calls, annual shareholder meetings to attend or an Investor Relations function. However, we will need to coordinate some functions with Berkshire Hathaway because we will be included in their results, including tax returns and financial results. We may see some modest impacts in accounting, tax, treasury, risk management and a couple of other areas, but I do not expect those to be significant.

In all other areas, I really don’t see much change. We will still need to bill and collect for our services, pay our employees, pay our bills and keep track of how we are doing – just as any well-run company must.

Executive Vice President and Chief operations officer Carl ice

Q Please review our plans for safety in 2010.

a We believe we have the right foundation in place to improve our safety performance to achieve our safety vision. We must hold

ourselves and our co-workers accountable for 100-percent rules compliance 100 percent of the time. By consistently following our safety processes, targeting at-risk behaviors and focusing especially on our most critical behaviors, together we can achieve a workplace free of injuries and accidents. Our success as a company begins with success in safety.

Q We recently announced a $2.4 billion capital plan. how are we approaching our capital projects this year? how do our investments in positive train control (PtC) affect our overall capital plan?

a We are committed to making the necessary investments to ensure the safety and efficiency of our network. In fact, due to our continued investments in our equipment and physical plant, our railroad is in better shape today than it has ever been.

Of our planned 2010 capital program of $2.4 billion, we’ll spend about $2.1 billion for track, signal systems, structures, freight cars and technology, including the unfunded mandate for PTC. We are acquiring fewer locomotives this year, however, which will reduce our total capital spending by about $240 million compared with 2009. We will also be selective about our expansion projects again this year, focusing our expansion dollars on projects where we’ve already made a multiyear commitment, notably the Abo Canyon double-track project.

We are concerned that the considerable expense of installing PTC on many routes will impact our ability to invest in other parts of our network as we work to meet Congress’ mandated deadline of 2015. Our considerable challenge is to ensure the continued efficiency and reliability of our existing network while also diverting a significant amount of capital to PTC.

Page 4: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

4 raiLWay I SPRING 2010

Q BnSF continued to provide strong service last year, in fact achieving some of the best service and velocity levels in our history. What contributed to this performance, and what must we do this year to continue to build on that success?

a We’ve steadily improved our velocity and efficiency in recent years, and I am especially proud of the service levels we achieved last year, which were some of the best in our history.

I also attribute part of the strong performance to our ongoing capital investments in our track and equipment. We’re committed to maintaining a safe, reliable network and providing the needed capacity to meet customers’ expectations.

Our processes are an important part of our continued improvements in velocity. Best Way is a good example. It provides a framework to identify best practices, improve communication, build stronger cross-functional teams and apply consistent standards. Best Way has substantially increased on-time performance and many other measures for our terminal operations, and we are applying similar processes to Engineering, Mechanical, the NOC and Intermodal. Process improvements in other areas also enhance our service and efficiency, such as our focus on building longer trains.

Finally, and most importantly, I credit our people for their continuing focus on meeting customer expectations, despite severe weather and other operational challenges. That commitment will continue to be important in maintaining our velocity and service levels as the nation’s economy and our volumes begin to recover.

Executive Vice President and Chief Marketing officer John Lanigan

Q 2009 was a challenging year. What are our customers telling us 2010 might bring?

a 2009 was the most challenging financial environment since the Great Depression. Many of the customers we serve saw their poorest results in decades.

While economists say the worst is behind us, we are not going to see volume levels like we did a few years ago for some time. It will be a slow recovery.

We have been staying close to our customers and trying to understand their growth signals. In some sectors, our customers have been guardedly optimistic. In other sectors, they still feel they do not have enough knowledge to forecast growth.

Because the Asian economy is recovering faster than the West, we are seeing strong demand for agricultural products exports.

For coal, higher unemployment in 2009 resulted in lower electricity demand as people turned their thermostats up in the summer and down in the winter to save money. We also saw lower industrial utilization of electricity. This

resulted in higher than normal coal stockpiles. However, the harsh winter has started to reduce utility coal stockpiles.

Industrial products had a tough year in 2009, as some of these commodities were also impacted by consumer spending, such as waste, pulp board (used in packaging consumer goods), newsprint and lumber. We also saw the worst housing starts in 50 years. However, as consumer confidence starts to grow, we can expect slow growth in these areas. We saw taconite mines and steel mills shut down in 2009, but many of those facilities are up and running now.

The economic downturn had a significant impact on the consumer products segment last year. We saw the lowest level of auto sales in 40 years, but we are starting to see sales slowly pick up again. However, while consumer confidence is a little bit higher, our customers haven’t given us strong indications that we’re going to see significant retail growth in 2010.

Q during these challenging times, are we exploring new options in the marketplace? are we testing any new services, new markets or new approaches?

a We are continuing to work with our customers to convert more freight that is currently moving over the highway to rail, and have made service schedule adjustments and added new services to make intermodal rail shipping even more competitive.

There has been some new growth in the energy markets, such as wind energy where we are moving parts to construct wind towers. Additionally, BNSF moved the first unit train of crude oil last year from the Bakken Shale, which spans North Dakota, Montana and Canada. We anticipate more growth in the movement of clay, sand and pipe as the drilling and exploration of oil and natural gas continue in not only the Bakken Shale, but also in Texas, Louisiana and Arkansas.

Q as more companies show concern for environmental impacts, are we seeing a shift in our customers’ transportation decisions? What are we doing to promote the environmental benefits of rail?

a We are starting to see broader awareness of the environmental impact of their transportation decisions, but the majority of customers are looking at the economic impact first and the environmental impact second. Most companies know that they will have to pay more attention to their environmental impact in the future, but they are not focused on it right now. They are focused on recovering from the recession.

The benefit of rail transportation is that we offer outstanding economic, environmental and service value in the supply chain. Starting last year, we sent personalized letters to our customers calculating their carbon footprint on BNSF for their prior year’s shipments. We reported how much more carbon would have been emitted had that freight moved over the highway. We recently sent these letters out again to our customers for their review of their 2009 shipments.

Executive Vice President Law and Secretary roger nober

Q We’ve seen an overall shift toward increased regulation at all levels of government. notable issues include recent developments in rail regulation, PtC and climate change legislation. What do these shifts mean for BnSF and the rail industry, and what are we doing to respond?

a Like many companies, BNSF is seeing increased regulatory activity. The discussion in Congress about rail economic regulation,

BNSF’s Consumer Products business was significantly impacted by the economic downturn in 2009.

Page 5: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

raiLWay I SPRING 2010 5

for instance, is the most concentrated effort we’ve seen in more than 30 years. A draft bill was introduced last year in the Senate, and we’ve been working with public policymakers and others in the rail industry to evaluate the potential impact of the newly proposed regulatory scheme. We believe in balanced regulation, and we are concerned that the proposed legislation will make it more difficult for us to reinvest in our network and remain competitive. At the same time, we’re eager to have closure and certainty, and we’re working with lawmakers and others in the rail industry to expedite the discussion.

The legislation requiring railroads to install PTC on key lines by 2015 is another area that will have a significant impact. This unfunded mandate is vastly expensive, and the Federal Railroad Administration (FRA) recently issued new rules that would further increase the cost of PTC with no substantive added benefits, as we see it. Although PTC is a valuable safety overlay, the costs of installing PTC will be far higher than the value of the potential benefits – by a factor as high as 34:1 with the recent FRA additions. We’re working diligently to install the infrastructure for PTC, while joining with others in the rail industry to address concerns about some PTC rules.

Proposed climate change legislation is not directed toward railroads specifically, but it would have an impact. A cap-and-trade market on carbon emissions would challenge our coal shippers and our coal business, for instance. On the other hand, rail offers environmental

benefits over other modes of surface transportation, as we produce significantly fewer greenhouse gas emissions per ton-mile. In fact, you could make the case that the nation would realize significantly more environmental benefits by shifting more freight to rail than it would by shifting more passengers to rail.

Q What trends are you seeing in litigation costs and issues affecting BnSF?

a As a large company with an extensive operation, we are going to be a target for litigation. But thanks to a variety of programs, we’ve actually seen our casualty costs coming down in the past few years.

Importantly, our focus on safety is making a difference – whether it’s employee safety, grade- crossing safety or general operational safety. In grade-crossing safety, we see the benefits of our focus on controlling vegetation, enforcing federal train whistle requirements, closing unnecessary crossings and installing locomotive cameras to record driver behavior. The locomotive cameras have been tremendously helpful; in more than 99 percent of the cases, the cameras demonstrate that our locomotive engineers were doing all the right things – including using the correct whistle procedures – and that the grade-crossing warning devices were working as required. This evidence really helps affirm our employees’ behavior and the safety of our operation in court.

Q With the Berkshire hathaway acquisition, we are no longer a public company governed by a board of directors. how will BnSF be governed? What other changes can we expect?

a We ceased to be a public company on Feb. 12 when we became a part of Berkshire Hathaway. We believe this was a great deal for our shareholders and for our company, and in almost all areas it will be business as usual for us.

But we will see a few changes in how we’re governed. Instead of being guided by a board of directors, we will have a board of managers comprised of key Berkshire Hathaway leaders, Matt Rose and our Executive Vice Presidents. This board of managers will apply the same kind of rigorous analysis and discipline we’ve always applied to our decision-making. Of course, as a company, we’ll also be accountable to the Berkshire Hathaway board of directors.

But overall, in our day-to-day operations, we’ll continue to be guided by the principles that we’ve always followed. Our Vision and Values, our Code of Conduct and our Leadership Model are as important today as they have always been. And we’ll approach our business with the same focus on delivering results that we have always had. If anything, the new structure enables us to focus more on the longer term, which is especially important in a capital-intensive business like ours where our assets are long-lived and our investment projects extend over many years.

There is strong demand for export of agricultural products, because the Asian economy is recovering faster than the West.

Page 6: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

6 raiLWay I SPRING 2010

Milestones on BNSF’s path of success

he past five decades have been eventful for BNSF and the entire rail industry. With deregulation, the industry transitioned from a period of bankruptcies and abandonments to what more recently was dubbed a rail renaissance. Changes in the economy, fuel costs,

consumer demand, mergers and many other factors have also had an influence. BNSF, now the second-largest railroad system in North America, has emerged as a leader from

the past 50 years (and the 100-plus years that preceded them). Our railroad has maintained this reputation over time, thanks largely to a team that is progressive, vital, resourceful and approachable.

Our modern-day leaders have made – and continue to make – critical decisions that will have a positive impact on our current business and our future. For instance, in this competitive business, decisions about maintenance, technology, capacity expansion and other capital investments require careful analysis and discussion.

The following is a look at major milestones in BNSF’s recent history – some of which celebrate anniversaries this year. The latest decision for BNSF to become a wholly owned subsidiary of Berkshire Hathaway is among these milestones. Warren Buffett’s bid for BNSF underscores that our railroad is one that will thrive – and lead – for years to come.

50 years ago: merger attemptThree railroads – the Great Northern (GN),

the Northern Pacific (NP), and the Chicago, Burlington and Quincy (CB&Q) railroads – announced on July 16, 1960, that they would seek federal approval to merge and form a new railroad to be known as the Great Northern Pacific and Burlington Lines Inc.

At the time, the railroads’ traffic was in a long period of decline following the very high levels during World War II. The properties were in poor condition, and other forms of transportation were rapidly increasing, creating overcapacity on the railroads in the Midwest. A merger of three railroads with essentially parallel lines would reduce expenses and eliminate redundant facilities and people.

40 years ago: Birth of Bn and Santa fe equipment innovation

Nearly 10 years later, a period marked with hearings, filings, rebuttals, petitions and rulings – all the way to the Supreme Court – the Burlington Northern Railroad (BN) was created. The long approval process would merge five railroads: the CB&Q, the GN, the NP, the Spokane, Portland and Seattle, and the Pacific Coast, a small regional railroad.

On March 2, 1970, BN began operations as the longest railroad in the United States. With headquarters in St. Paul, Minn. (moved to Fort Worth, Texas, in 1984), the BN carried forward the innovation and traditions established by the more than 300 predecessor railroads that were part of its network.

In the mid-1970s, Santa Fe people developed the first articulated intermodal railcar, featuring a skeleton design for lighter weight, a lower center of gravity and reduced fuel consumption. This “Six-Pack,” which later became the “Ten-Pack Fuel Foiler,” was the forerunner of today’s articulated intermodal cars. Santa Fe is credited with industrywide improvements to other types of railcars as well, including the development of the Super Hopper and the articulated Autoveyor.

30 years ago: A coal business established

Following the Energy Crisis of the early 1970s, the economics of electricity generation changed significantly. Given its abundance in the western U.S., low-sulfur coal became an important energy alternative. BN had rail lines near the huge deposits of low-sulfur coal in the Powder River Basin (PRB), and BN leaders recognized the tremendous market opportunities in extending the rail lines to connect with the mines.

BN sought approval in 1972 for what would be called the “Joint Line” (under an agreement reached between BN and the Chicago & North Western, a Union Pacific predecessor). In 1976, approval was granted for what would be the longest new rail construction in half a century. In 1979, BN completed the 116-mile line from Gillette to Douglas, Wyo. The first train operated on Nov. 6, 1979.

The Northern Pacific was one of three railroads to announce merger plans in 1960.

Burlington Northern was formed on March 2, 1970, by combining five railroads.

t

Page 7: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

raiLWay I SPRING 2010 7

Milestones on BNSF’s path of success

Over the years, BN upgraded secondary main lines, and the coal line achieved another milestone on May 14, 2008, when 21 miles of fourth main track went into service. Today, more than 400 million tons of coal move out of the PRB annually, compared with the 26.9 million tons shipped in 1979.

frisco joins the familyAn attractive property thanks to its healthy

industrial business, the Frisco (St. Louis-San Francisco Railway Company) merged into the Burlington Northern on Nov. 21, 1980. Frisco’s industrial base would eventually help BN – primarily a transporter of coal, grain and forest products – develop a more diverse traffic base.

Also considered a bridge carrier, one that connected U.S. markets in the East with those in the West, the Frisco’s merger with BN provided direct routes from Kansas City and St. Louis to Texas. The merger also enabled BN to tap growing Southeast markets.

The addition of the Frisco enlarged BN to nearly 30,000 miles, making it close to becoming the nation’s first coast-to-coast railroad.

20 years ago: A Quantum leapOn Feb. 5, 1990, Quantum, a joint venture

between J.B. Hunt Transport and Santa Fe Railway, carried its first revenue load. The deal between the two companies, which was announced in 1989, represented a “quantum” leap in transportation, as together trucks and rail offered customers a door-to-door intermodal product.

Under the venture, loads of manufactured goods originating in Michigan and Ohio were trucked by Hunt to Santa Fe’s Corwith Yard in Chicago. Here, the goods were loaded for train service to Southern California using Santa Fe’s premium-service train. On arrival, Hunt trucks drayed the loads to destination, with customers paying a single waybill.

The Chicago-Los Angeles corridor was so successful that, shortly after its launch, more corridors were added, including Kansas City to Los Angeles and Northern California via Stockton, Calif.

While the service today is commonplace, it was considered novel for the time, appealing to customers who would never have considered shipping by rail before. In 1990, Santa Fe hauled 5,500 loads for Hunt. Last year, BNSF shipped more than 730,000 loads with Hunt.

15 years ago: Bn and Santa fe merged

Two western railroads became one on Sept. 22, 1995. The BN and Santa Fe merger was good for both roads; more than 50 percent of Santa Fe’s business was intermodal, and BN was a unit-train railroad, hauling primarily coal and grain. Not only did the merger diversify the traffic base, it resulted in a greater network – two values that would appeal to customers.

The two railroads’ route structures were also end-to-end, and at the time of the merger that created BNSF Railway, it was the largest rail network in North America.

2010: Joining the Berkshire hathaway family

In the 15 years since the merger, BNSF has grown significantly, with volumes peaking at more than 10 million units in 2006. Today, our railroad continues to play a vital role in the U.S. economy, bringing people every day the products that contribute to their quality of life. America’s growth and prosperity will continue to depend on BNSF, perhaps the chief reason that Warren Buffett is making an “all-in wager” on this, his largest investment ever.

On Feb. 12, 2010, the latest chapter in BNSF’s history began as BNSF joined the Berkshire Hathaway family.

The Powder River Basin coal reserves proved to be an important energy alternative.

The Frisco joined the BN in 1980.

In 1990, 5,500 loads were moved for JB Hunt. Last year, the number exceeded 730,000.

It was 15 years ago that BN and Santa Fe merged.

Berkshire Hathaway’s Warren Buffett, left, and BNSF’s Matt Rose.

Page 8: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

8 raiLWay I SPRING 20108 raiLWay I SPRING 2010

Safety Bell awards recognize Operations teams that model safety excellence. Safety Bells are awarded annually for best safety performance by Operations groups in the following areas: Best Frequency Ratio, Best Severity Ratio and Best Derailment Performance.

The Nebraska Division received two Safety Bell awards for achieving Best Frequency Ratio and Best Severity Ratio for division performance, based on 2009 safety performance. “All three division work groups, Mechanical, Transportation and Engineering, utilized our strong safety foundation and focused on safety awareness and peer-to-peer programs to reduce injuries,” says Boyd Andrew, general manager, Nebraska Division.

The Galesburg, Ill., Diesel Shop, recipient of two Safety Bells for Best Frequency and Best Severity Ratios in Mechanical shops, maintained a strong focus on risk assessment prior to performing tasks, according to David Anderson, general foreman, Locomotives. Additionally, employees exhibited a high level of peer-to-peer safety interaction. The Northtown (Minneapolis) Diesel Shop also received a Safety Bell for Best Severity Ratio where, like Galesburg, the shop went the entire year without a lost or restricted day. At Northtown, work teams focused on removing barriers to improve shop safety performance, notes Doug Wagner, shop superintendent.

The Gulf/Texas Engineering team garnered a Safety Bell for Best Frequency Ratio for Engineering teams, while the Nebraska Engineering team earned a Safety Bell for Best Severity Ratio. “I credit the Gulf/Texas Engineering team with moving our safety culture in a positive direction by

focusing on empowerment, improved safety briefings and courageous safety leadership,” says Dean Dalquist, general director, Maintenance, for the

Gulf and Texas divisions.The Safety Bell for Best Derailment Performance was awarded

to employees of the Chicago Division, who focused on rules compliance and critical work practices, according to Rob

Reilly, general manager, Chicago Division.“BNSF’s overall 2009 safety performance fell well short

of our stated improvement goals, but I want to commend these work groups,” says Mark Schulze, vice president, Safety, Training and Operations Support. “These teams have shown that large work groups can operate in a safe and

productive manner. I’m encouraged by their performance and believe that other groups can attain a similar level of safety in 2010.”

The bells on the trophies come from locomotives that were once in service on BNSF or a predecessor railroad. Members of BNSF’s Operations leadership team traveled to congratulate winning teams. Employees on these work teams also received Safety Bell lapel pins in recognition of their safety achievements.

2009 Safety Bell teams model excellence

Matching Gift Program: double your donations!if you have a nonprofit cause or organization that is near and dear to you, the BNSF Foundation has a Matching Gift Program that could help. Through this program, the Foundation will match your donation dollar for dollar – from $100 up to $20,000 per year, per employee.

The program is designed to encourage employees to contribute to qualified educational institutions, cultural organizations or private hospitals. Unlike grant proposals that not-for-profit organizations are required to submit to the Foundation, the Matching Gift Program must be initiated by a BNSF employee.

To download the contribution form and see program guidelines, go to Employee Services on the Intranet. Under the heading BNSF Services, the link called “Matching Gifts” brings up the form. Or go to www.bnsf.com/assets/matching_gifts.pdf.

In 2009, more than $1.48 million was distributed, representing more than 1,300 matching gifts. That was an increase of approximately $500,000 over 2008 Matching Gift Program donations.

Last year, a few changes were made to the program, including when the eligible matching gift contributions are paid. Previously they were paid in March of the year after the applications were received. Now they are distributed as they are received – assuming the forms are filled out correctly and the organization has provided all necessary documentation. (Please see box.)

Another change last year: The matching program now allows contributions to U.S.-based organizations that benefit international aid programs, such as Save the Children. Also starting last year, faith-based matching gifts are allowed if the 501(c)(3) organization is nonsectarian, and the gift is for health and human services provided by the organization and does not directly benefit a church, synagogue or mosque.

Note that the Foundation does not match United Way or Red Cross; any athletic activities (programs, scholarships or facilities), walk-a-thons or pledge-driven fundraisers; capital campaigns; any public schools or education programs; Chamber of Commerce activities; community foundations; alumni or class dues; subscriptions, tuition, employee tithes or church-related commitments; bequests; fraternities or sororities; any in-kind contribution based on cash value of an item; or contributions that provide any benefit to the employee.

For an application and complete instructions on what organizations

qualify, go online to www.bnsf.com/assets/matching_gifts.pdf. Or on the employee portal, under the @BNSF tab, click on the “Company” sub-tab, and then look for the “In the Community” window; under the “Charity” listings, find a link to “Matching Gifts.”

these steps will help ensure that your eligible donation is properly matched: Donor completes Parts 1 and 2 and mails the entire form with the gift to the designated institution.

A responsible financial officer of the designated institution countersigns Part 2, thereby certifying receipt and intent in accordance with program conditions. The institution returns the entire form with original signatures and proof of the donation to: BNSF Foundation, 2650 Lou Menk Drive, Fort Worth, TX 76131-2830.

The Foundation will pay eligible matches when it receives correct and complete forms from the organizations.

The BNSF Foundation may amend or terminate this program at any time. The interpretation, application and administration of the Employee Matching Gift Program shall be determined by the Foundation, and its decisions shall be final.

Contact information: Deanna Dugas, manager, Corporate Contributions; (817) 867-6458; [email protected].

Categories Divisions Shops Engineering

Best Frequency Ratio Nebraska Galesburg Gulf/Texas

Best Severity Ratio Nebraska Galesburg Nebraska Northtown

Best Derailment Performance Chicago

1

2

3

4

5

Page 9: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

9 RAILWAY I MAY/JUNE 2008 RAILWAY I SPRING 2010 9

Reaching our 2010 safety goals

Dear Valued Member of Team BNSF:

Improving safety is all about identifying and eliminating risk. We have a variety of tools that help us do that. The best way to eliminate risk is unwavering compliance with our safety and operating rules. But many other aspects of our safety program – including our Safety Action Plans, our emphasis on our most safety-critical behaviors and our site-safety teams – also focus on risk reduction. This year, we must continue addressing risk and the behaviors that put every one of us at risk of sustaining injury. The first step in achieving safety is to identify the behaviors that can put us at risk of sustaining an injury. Each employee can use the risk analysis worksheet to find preventive safety solutions to identified risks (page 11). Employees at the Lincoln Diesel Shop in Lincoln, Neb., and many other Mechanical employees are working to identify and eliminate risk, using a Task-at-Hand checklist (page 11). I also encourage you to review and use the closed-loop safety process, described on page 10 of this issue of Focus on Safety. There you will read how employees on the Springfield Division, from every work group, are using the closed-loop safety process to methodically eliminate identified risks. We know that we have work to do to meet our safety vision of achieving an accident- and injury-free workplace. We remember, with sadness, our six colleagues who were fatally injured in 2009. We also recognize that injury rates increased in 2009. At the same time, our Safety Bell winners for 2009, which we profile on page 8 in Railway magazine, model the way with significant safety improvements. To achieve our vision of an accident- and injury-free workplace, each one of us should approach safety with these objectives in mind:

n Taking personal accountability for rules compliance

n Eliminating variability in our work tasks and safety performance

n Adhering to proven safety processes

Going forward in 2010, we must commit to following our own rules. These begin with strict adherence to critical work practice behaviors. The Deadly Decisions, Critical Decisions and Safety Absolutes are listed on page 12. By committing to these safety basics, I believe we will not only increase safety but also begin to reduce variability across the system and particularly in our work tasks. In the end, a strong collective safety foundation depends on the efforts put forth by each one of us. This year, I hope you resolve to focus on safety.

Sincerely,

Mark Schulze Vice President, Safety, Training and Operations Support

Page 10: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

Last fall, a shoving incident on the Springfield Division resulted in a serious injury. Statistically,

that shove represents one of 65,000 “at-risk” decisions that safety experts estimate happen before an injury actually occurs. To mitigate at-risk decisions, employees can proactively engage in the closed-loop safety process (CLSP), a process that protects against, addresses and reduces risk. Risk reduction is a fundamental part of BNSF’s overall safety program and is at the heart of the five-step CLSP. By using the CLSP, employees can identify opportunities to increase their personal safety and lower the probability of injuries, says Eric Weber, director of Occupational Safety and Environmental Health. “There is some level of risk in everything we do. The closed-loop safety process is a tool to help employees effectively manage those risks that increase the likelihood of injury or, put another way, that put employees ‘at risk,’” Weber says.

The CLSP can be performed by an individual or a team, depending on the situation. The five steps listed below include examples of how a cross-functional team on the Springfield Division applied the CLSP to a broader safety issue.

Step 1: Identify riskThe first step is to identify all potential risks before beginning a task.

By definition, risk is the possibility of loss or injury and is caused by any of four components:

1. Physical plant – This includes physical structures, such as track or buildings.

2. Environment – These factors include weather, temperatures or track conditions.

3. Human factors – This broad category, which accounts for 95 percent to 98 percent of all risk, includes an individual’s decision-making process, such as choice of tools, but it can also encompass all the decisions made when performing a task.

4. Procedures – Complying with rules or modifying procedures are examples of this component.

Step 2: Problem solve Once potential risks are identified, employees can move to the second phase, which is to brainstorm solutions that will help eliminate the risk altogether or lower the risk to a level where injury is unlikely to result. One problem-solving approach uses work process analysis to analyze risk. (See Worksheet for Analyzing Risk, page 11.) Work process analysis looks beyond “symptoms,” like unsafe acts and conditions, to understand why those symptoms exist.

10 RAILWAY I SPRING 2010

Safety

Action

in

Step 3: Implement solutions Once the employee or group decides on a risk solution, the employee should implement a plan, effectively completing the third step of the CLSP. That plan should designate the

person responsible for the risk solution, quantify the resources needed to support the solution, and estimate a timeline for implementation.

Step 4: Measure results A fundamental component of the CLSP is to monitor the effectiveness of any solution to ensure that risk has been mitigated or lowered to a manageable level. Most employees can measure results by periodically auditing their prevention process to ensure that the solution is working as expected and to determine that they are maintaining safe performance. Other ways to gauge safe performance include:

n Peer-to-peer feedbackn Work practice observationsn Operations testingn Safety statistics

The CLSP does not end with this initial risk solution; if the solution ineffectively manages risk, the employee begins the “loop” again at the problem-solving step. If the solution reduces or eliminates risk, the employee begins to identify potential new risks. In this way, the process “closes the loop” to ensure that the employee reaches an appropriate solution.

Step 5: Provide feedbackCommunication enhances the CLSP by informing others who may be

affected by the same risk. Safety experts agree that providing performance feedback in itself is a proactive way to reduce risk. Employees can share results in e-mails, safety conference calls, job safety briefings and Web sites.

On the Springfield Division, Safety Manager Carter Tuggle and Roger Cadden, the United Transportation Union (UTU) safety coordinator, identified unacceptable

risks surrounding shoves when they noticed a spike in reports, particular to one site, concerning shove protection. Together, Tuggle and Cadden identified risks from all four categories that could be contributing to potential at-risk behavior.

To address concerns around shoves, Tuggle and Cadden gathered a cross-departmental group, including the trainmaster, yardmaster, switchman and site-safety

representative, who is also a local chairman. Cadden says that to effectively problem solve, the group needed to include employees involved in shoves and those who have yard expertise. At the meeting, attendees partnered to analyze risk, using work process analysis. The group discussed behaviors, communication, rules, physical plant and other contributing factors.

S a f e t y i n a c t i o n

Identify risk Problem solve

Pro

vide

feed

ba

ck

Implement sol

utio

ns

Measure results

CLOSED-LOOP

SAFETYPROCESS

Yes No

A cornerstone of BNSF’s safety program is risk reduction. Employees can systematically analyze risk by using a five-step closed-loop safety process to first identify potential risks and then create solutions that will decrease or eliminate them.

employees close the loop on risk

Although the at-risk shoving group hasn’t yet reached Step 5, the group is planning to share mitigation results for shoving risks via e-mail and conference calls.

The at-risk shoving group reconvened in late March to evaluate shoving behaviors.* If results show that employees effectively modified shoving behaviors, this particular group will disband, having completed the CLSP. If at-risk

shoving behaviors are still evident, the group will re-engage in the problem-solving step.

Because of the complexity of the shoving concerns, the team settled on both short-term and long-term solutions. One short-term solution was to create and issue a briefing

that would clarify the intent of the 6.5 rule on shoving. To communicate the briefing, Don Davis, UTU local chairman and site-safety representative, says they held safety marathons to discuss and clarify point protection with yard crews. Long term, the committee decided to advance the problem to the local site-safety committee’s Safety Issue Resolution Process. For both solutions, however, the group assigned roles and responsibilities, and identified appropriate resources and timelines.

Safety

Action

in

Safety

Action

in

Safety

Action

in

Safety

Action

in

“Employees who use the closed-loop safety process on a daily basis are helping to create an injury-free workplace at BNSF,” says Weber. “That’s the best way to ensure that everyone goes home at the end of the day in the same condition as they came to work.” *Results were still being evaluated at press time.

Page 11: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

RAILWAY I SPRING 2010 11

Employee safety tips

“When applying blue signal protection, proper planning prevents poor protection.”– Nicholas Esquivel, carman,

Lincoln, Neb.

“The entire terminal works together to keep conversation and communication lines open.”– Evan Schroedel, trainmaster,

Beaumont, Texas

Focus on Safety

VP, Safety, Training and Operations Support: Mark Schulze, [email protected]

Editor: Linda Jacobson, [email protected]

Contributing Photographers: Newslink, William Snyder

Got a story idea? Send story ideas, safety tips, suggestions and comments to [email protected], or call Eric Weber at (817) 352-1144.

SAFETY VISIOn We believe every accident or injury is preventable. Our vision is that BNSF will operate free of accidents and injuries.

WORkShEET FOR AnALYzInG RISk

Step 4n List ways to enhance existing processes to increase safety. • Whatcanbeimprovedtopreventfutureoccurrences?

Step 5n Develop recommendations for each enhancement opportunity. • Considerandincluderesponsibilitiesforbothemployees

and supervisors. • Listtheemployee(s)andsupervisor(s)responsiblefor

following through. • List the timeline for correction

or modification.

Step 1 n Interview employees and supervisors who are knowledgeable about the job task.

n Describe in detail. List any sequence of tasks/events in chronological order.

Step 2n List all contributing factors associated with identified risk, including: • Workprocesses • Physicalhazards • Timeofday • Weatherconditions • Communications

Step 3n List questions related to each identified contributing factor. • Ask“why”questions. • Question the degree to which conditions listed in

Step 2 contributed risk.

between employees and supervisors, shop management became aware that a specific tool was unavailable. That awareness then drove conversations about the correct tools that employees should use, whether the shop had

the correct number of these tools and whether the tools were in proper condition. “Because of the Task-at-Hand checklist, we looked more closely at our tooling,” says Hughes. “We want to be sure that employees have the correct tools to do the job safely.”

Managing potential riskSimple to use, the checklist is a guide that

employees can use to check off risks surrounding a particular task. Checklist prompts include:

n Physical plant hazards, such as slip, trip, fall hazards, and close clearances

n Environmental conditions, such as inclement weather and extreme temperatures

Mechanical employees keep risk in check

n Human factors risks, such as unfamiliarity with a task and using the incorrect tool

Following through by describing specific actions employees will take to eliminate or reduce risks is key to increasing individual safety.

The checklist was developed based on input from craft employees, safety assistants and supervisors. “We recognized that employees wanted a tool to address risk,” says Hennessey. “The Task-at-Hand checklist answers that need.”

The Mechanical team is committed to achieving an injury-free workplace. By using a checklist to help identify potential risks, employees can proactively prepare for the “task at hand.”

Mechanical employees are keeping risk in check by using a “Task-at-Hand” safety

briefing checklist to identify potential risks before tackling a job. By systematically considering hazards that could be present, employees can determine risks associated with the work they will be performing. The checklist helps employees identify not only all potential risks but also precautions that address each risk. “The checklist is a learning tool to help employees evaluate risks associated with a specific task,” says Ron Hennessey, safety director, Mechanical. “Though tasks may remain the same, conditions can change. By recognizing and addressing these changing conditions, employees can apply preventive measures.” Ultimately this helps promote an injury-free environment, says Hennessey.

Encouraging safetyThe checklist can be used by individuals or

teams, as well as by supervisors who want to discuss with employees the process of evaluating and addressing risks. At the Lincoln Diesel Shop in Lincoln, Neb., the Task-at-Hand process has increased the number of people talking about safety, according to Gary Hughes, safety assistant. Encouraging supervisory safety contact is one focus of the Mechanical work group this year, along with peer-to-peer safety interaction and rules compliance. Hughes also credits the use of the checklist in furthering discussions about the shop’s tooling and how best to reduce the risk of injury. Based on Task-at-Hand conversations

Mechanical employees are using the Task-at-Hand check-list to review potential risks before beginning job tasks.

Page 12: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

12 RAILWAY I SPRING 2010

The “A” and “B” training cycleUnderstanding the aBcs of training and certificationTransportation employee “Year A” and “Year B” training cycles do not include required certification schedules.

his year, BNSF is simplifying safety and rules training for all Transportation employees, moving to a two-year cycle that alternates between “Year A” and “Year B” training. But for engineers, RCO and hostler employees, any certifications required on a three-year cycle are separate from BNSF’s alternating “Year A” and “Year B” training cycle. All Transportation employees follow the two-year alternating training cycle, completing either “Year A” or “Year B” training annually; the three-year certification schedule applies only to engineers, RCO and hostler employees, and must be completed prior to the date of license expiration. “Transportation employees should understand that the new two-year cycle does not affect the three-year certification requirements for employees who are required to be licensed,” says Scott Schafer, general director, Railroad Training Services. “Training and certification cycles are separate, and we handle them separately.” Positive changes In addition to the move to “Year A” and “Year B” training cycles, employees are able to choose the method of rules instruction in “Year B” that best suits their learning style. This year, 61 percent of Transportation employees scheduled for “Year B” rules training chose instructor-led classes. Mike Blevins, a locomotive engineer on the Kansas Division, opted to take an instructor-led rules class this year. He says that for him, the four-hour class was beneficial. “I liked the shared experience that the classroom provided,” says Blevins. “Questions that others asked led

T

“Year A” training

Who takes it

All Transportation employees assigned to “Year A” training cycle must take Other Required Training (ORT). ORT includes Securing America’s Railroads, Hearing Conservation, Hazardous Materials and other safety training.

Method of training

ORT is only available via computer-based training (CBT).

Who schedules it

The Technical Training Center (TTC) schedules all ORT.

Method of notification

Employees are notified via the paperless timekeeping system in TSS of “Year A” training assignment from the TTC.

Additional requirements

Most locomotive engineers will take their required NETSIM training on the scheduled day of their CBT training.

“Year B” training

Who takes it

All Transportation employees assigned to “Year B” training cycle are required to take Rules training. Rules training includes GCOR, ABTH and safety training.

Method of training

Employees select either instructor-led classes or CBT for Rules training.

Who schedules it

The TTC schedules all “Year B” Rules training.

Method of notification

Employees are notified via the paperless timekeeping system in TSS of “Year B” training assignment (either instructor-led classes or CBT) from the TTC.

Additional requirements

Locomotive engineers will normally receive their train ride from a road foreman of engines.

Certification requirementsRe-certification

Who must meet certification requirements

Engineers, RCO and hostler employees must meet certification requirements. Employees must complete hearing and vision exams, and motor vehicle paperwork.

Who schedules it Employees schedule hearing and vision exams by calling LHI at 1-888-634-1121. Employees complete motor vehicle paperwork and submit it to the certification office.

Method of notification

Beginning in 2010, employees will receive re-certification instructions and forms via a General Notice rather than U.S. mail. Ninety (90) days prior to the expiration of the employee’s license, the employee will receive a courtesy reminder from the TTC via the paperless timekeeping system in TSS.

Additional requirements

1. Any certified employee who completes federally-mandated hearing and vision testing automatically meets the hearing conservation requirement from BNSF Medical.2. To meet federal requirements, some certified employees may be required to take a 50-question open book rules exam in addition to “Year A” training. Employees will be notified via the paperless timekeeping system in TSS if this applies to them.

to discussions on different scenarios. That really gave me insight on some of the rules. You don’t get that with the CBT module.” Employees who prefer computer-based learning still have that option, as well. Another change allows employees to use their rule books during exams. “We believe the open book testing better reflects our expectation for employees to use their rule book if they’re uncertain about the rule or requirement,” says Schafer. Cobey Hangebrauk, an engineer based in Denver, Colo., agrees. “I need to be able to find the information in the rule book as well as know the rules,” he says. “If something happens on a train, the rule book is a tool that I will most certainly be using.”

“Most of these training changes were based on employee input,” says Schafer. “Those are what we changed this year; the certification requirements are separate, and that schedule remains the same.”

CRITICAL WORk PRACTICES

1 Blue Signal Protection S-24.2, S-24.2.1 through S-24.2.7

2 Lockout/Tagout S-3.1.6, S-10.17, S-16.4, S-16.17, S-27.13

3 Jacking Equipment S-10.1, S-10.1.1; Road Truck Jacking Certification and job safety analysis: http://bnsfweb.bnsf.com/departments/mechanical/safety/road_truck.html

4 Vehicle Operations S-8.3.2, S-11.8.2, S-11.8.3, S-11.8.5, S-11.9.1 through S-11.9.9, S-12.1.1, S-12.2, S-12.4 through S-12.6, S-12.8, S-12.9.1, S-12.16, S-13.1.3

5 Fall Protection S-9.13.2, S-10.18, S-21.1, S-28.20

6 Crane Operations and Rigging S-17.1 through S-17.1.5, S-17.2.1 through S-17.2.7, S-17.5.1, S-17.5.2, S-17.6, S-17.7, S-17.9

7 Locomotive and Car Movement S-10.2.1, S-10.2.2, S-10.3.2, S-10.10, S-10.15, S-13.1.1 through S-13.1.5, S-13.1.9, S-13.2.1 through S-13.2.4, S-14.3

1 On and Off S-13.5, MWOR Rule 6.53

2 Going Between S-13.1.1, SSI Item 23(A) Part C

3 Separation S-13.1.1 (TY&E employees only) S-13.2.4 and S-13.2.5 (all employees)

4 Riding End S-13.1.5

5 Fouling GCOR 1.20, MWOR 1.20, Safety Rules S-1.1, S-1.2.3, S-1.6.1, S-13.1.3, EI 1.1.1

6 Running S-1.5.3, S-13.2.2

7 Riding to a Joint S-13.1.5

8 Shoving GCOR 5.3.3, 6.5, 6.27, 6.28

T

T EM

M

1 Track Occupancy MWOR 6.3.1, 6.3.2, 6.3.3, 12.2, 12.3

2 Lockout/Tagout EI 1.10

3 Fall Protection EI 1.4

4 Boom Equipped Vehicles and Equipment MWOR Safety Rules S-17.2.3, S-17.2.5, S-17.2.6, EI.15.5

5 Main Track Switches MWOR 8.2, 8.3, 14.12

6 HLCS Compliance MWOR 6.50.5, EI 15.4.11, SSI 21

7 Initiating Movement MWOR 6.2.1

8 Reporting Clear of Authority Limits MWOR 2.14.2, 6.3.1

E EnginEEringCritiCal dECisions

MECHaniCalsaFEtY aBsolUtEs

transPortationdEadlY dECisions

Page 13: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

raiLWay I SPRING 2010 13

Burlington Bridge getting a liftBurlington Bridge getting a lift

Work is under way to replace the swing span on BNSF’s 118-year-old bridge over the Mississippi River at Burlington, Iowa, with a vertical-lift span.

A swing span, as its name suggests, opens as would a gate, on a pivot. When a barge needs to pass, train traffic is stopped, and motors rotate the bridge approximately 90 degrees horizontally. A vertical-lift bridge rises up to allow marine traffic to pass under the bridge while remaining parallel with the deck.

When completed in mid-2011, the new lift span will make the opening of the bridge wider for marine traffic. (The current swing span provides

two 150-foot openings; the vertical-lift span will provide one 350-foot-wide opening.) The new design will accommodate the largest barge tows.

The project has long been on the U.S. Coast Guard’s list of bridges in need of upgrade, because it is one of the top three in the United States most often hit by barges or other towing vessels.

“Because of the narrow channel openings and the river currents, the barge operators have issues while trying to get through the channel without making contact with the bridge,” explains Mike Schaeffer, project engineer. “The way the bridge is situated on the river, with a

turn just before they get to the bridge, it’s not a straight-shot approach. The new, wider opening will alleviate a lot of the challenges and make it a safer passage for the marine traffic.”

Currently, crews are working on the lift span’s new foundations, drilling through the sand into the river bottom, down into the bedrock shale.

Freezing temperatures have recently made work difficult, with 12-inch-thick ice forms building up around the bridge. In addition, while drilling foundations, workers encountered large rocks and other buried debris that prevented them from reaching the bedrock to secure the foundations. The discovery – most likely riprap and metal placed in the river to stabilize areas subject to erosion when the bridge was originally constructed – necessitated a slight redesign after the project began.

Once warmer weather arrives, the vertical-lift span’s construction – Part 1 of the project – will take place on barges on the river. The existing swing span will be floated out on barges and the new span will be floated into place. The span portion is expected to be completed in the summer of 2011.

Construction of the lift span is being financed in part through the federal government’s American Recovery and Reinvestment Act of

2009 and the Truman-Hobbs program, which provide funds to alter bridges found to be unreasonably obstructive to navigation. The total cost is $82 million, slightly more than originally planned due to the recent design changes.

When it first opened in 1868, the bridge was single track, but it was made a double-track bridge in 1891. Due to the corrosion and fatigue, the rest of the bridge will also be replaced. BNSF is going to undertake the replacement of the remaining portions of the bridge. That part – Part 2 of the project – will begin over the summer and should be completed by the end of 2011.

Bridge Stats• The first steel bridge to cross the Mississippi River, the Burlington Bridge opened in 1868.• It is used by about 30 trains a day, including two Amtrak trains linking Chicago and the West Coast.• The bridge opens about 300 times a month to let river traffic pass.• Located on the Ottumwa Subdivision, the bridge is 2,002 feet long and carries about 45 million gross tons of traffic annually.

The Burlington Bridge project involves rebuilding a bridge that was originally constructed between 1867 and 1868.

Crews are currently working on the lift span’s new foundations.

The bridge’s vertical-lift span’s construction will take place on barges on the river.

Page 14: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

projections. As those continue to improve, crew line-up accuracy should also improve.

Future functionality will consider the need for build-up turns, the return of RSIA-unavailable employees and rest cycle handling, and other suggestions from

subject matter experts – active TY&E employees who have helped us since the

high-level design phase.

Railway: Can you tell us about the subject matter experts (SMEs) and their involvement in the development process?Pechal: Several SMEs from across the BNSF

system have been involved with the initiative since it began. They helped us identify the types

of information TY&E employees review when projecting on-duty times. Based on that “real world” input,

we develop “push” notifications that provide meaningful information to TY&E employees.

TY&E employee participation in this process has made a big difference for current features as well as features planned for rollout later in 2010.

Railway: how do BWLU and rail Safety improvement act (rSia) fit together? how do changes in the Federal railroad administration’s interpretation of rSia affect this process? Pechal: We’ve adjusted some functions because of RSIA requirements, such as including uninterrupted or undisturbed rest, as well as unavailable time, as factors that need to be included when calculating availability. Any future RSIA changes from the FRA will be addressed and implemented as soon as possible.

Railway: how can employees determine the accuracy of the information being pushed to them?Pechal: From the main menu, employees can choose to store any projected

time received. When TY&E employees use the “P” view option, the information that is projected – as well as any “push” to an employee’s texting or e-mail device – is stored in a history log. Using Option 20, Option 5, an employee can compare the time projected with the time actually called to determine the accuracy of the push.

Railway: What other information on functionality and coming enhancements is available to ty&E employees?Pechal: Any changes made to BWLU are outlined on the

Labor Relations Web site, as referenced above. In addition, we will include information in division newsletters, BNSF-TV and the Labor Relations Web site that will outline new features and how to use them. Watch for updates quarterly in the coming year.

Also, when employees add their e-mail address to the telephone screen (Option 24, Option 1), we send out information regarding not only the BWLU initiative, but other helpful hints on the use of TSSCREW.

Editor’s Note: Last February, Railway reported about the Best Way Line-Up initiative being introduced by Crew Management. The following Q&A with Bobby Pechal, director, Crew Support, gives an update on this initiative, which is designed to help train crews predict their on-duty time, based on train standing and future layoff/mark-up transactions.

Railway: how can train, yard & engine (ty&E) employees benefit from the Best Way Line-Up initiative (BWLU)? how does it differ from traditional ways of projecting their on-duty time?Pechal: Traditionally, TY&E employees logged into the Transportation Support System (TSS) or called the interactive voice response system for their projected on-duty time. The effort is not only time-consuming and cumbersome, but it does not always result in the most accurate information.

Today, TY&E employees have a much easier option – one that “pushes” information they want to receive out to them. BWLU also allows TY&E employees to choose how they receive the information: text message to their cell phone, e-mail to a PDA or e-mail account, or phone call to a specified phone.

The use of this technology is voluntary and designed to be used at the convenience of the employee. Employees have the ability to turn the “push” option on and off at their convenience to prevent any interruption of rest in preparation for duty.

Railway: Since it was rolled out last year, what changes and improvements have been made to BWLU?Pechal: Employees now have more options for “push” notification. Initially, three notification preferences were available: 1) how many times out you are on the working board, 2) how many times out you are on the active/ratio board and 3) how many hours are projected prior to on-duty time. In December, we added three more notification preferences: 1) when on-duty time has changed, 2) when turn is activated/deactivated and 3) when turn is back at the home terminal.

To use any of these options, select Option 24 – Employee Phone Menu, Option 2 – Push Profile and enter the information to initiate the push. For more information, go to the Labor Relations page on the BNSF Intranet, navigating down to the Important Links – Crew Initiatives on the left panel. The direct Web link from a BNSF computer is: http://bnsfweb.bnsf.com/departments/laborrelations/html/crew/crew_index.html.

Remember, this link is on the Intranet. Employees can only access it when logged into the BNSF system.

Railway: What can ty&E employees expect to receive when selecting a push option?Pechal: Their projected on-duty time is delivered based on train standing and future layoff/mark-up transactions. Related initiatives are under way to improve the accuracy of projected on-duty times and estimated train line-up times. For example, the Best Way initiatives for the Network Operations Center and Terminal Operations are driving improved on-duty

Best Way Line-Up initiative Increasing options for TY&E employees

Train crews who elect to receive information to help them predict their on-duty time – based on train standing and future layoff/mark-up transactions – should go to Option 24-Employee Phone Menu, Option 2-Push Profile and enter the information to initiate the push.

14 raiLWay I SPRING 2010

Page 15: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

raiLWay I SPRING 2010 15

One easy way to get started is to make a phone call to your family physician for a preventive care appointment – a wellness visit. The frequency with which you make this appointment depends on your age, general health and family history. (The Preventive Care Benefits Guides that were mailed to all employees’ homes this year listed recommended exams and screenings by age and gender.)

In addition to talking to your physician about any diseases that run in your family, which will help him or her recommend a course of action to reduce those risks, you should also discuss what tests are important. Selected tests will establish your “numbers” for blood pressure, cholesterol and weight. These quick indicators of your condition can point you to actions that will help you stay on track or get on track to good health.

Blood PressureNearly one in three adults in the United

States has high blood pressure – the “silent killer.” But about 30 percent don’t know they have it. Left untreated, high blood pressure can cause stroke, heart attack, kidney problems, heart failure and eye problems. All can happen without warning. This is why it is called the “silent killer” and why screening is critical.

Blood pressure is measured by two numbers. The first (or top) number – systolic – is the pressure in your blood vessels when your heart beats. The second (or bottom) number – diastolic – is the pressure in your blood vessels between heartbeats.

Blood pressure is defined as the force of blood pushing against blood vessel walls. The heart pumps blood into the arteries, which carry

the blood throughout the body. If your blood pressure is high (called hypertension), the heart has to work harder to pump blood to the body. This contributes to hardening of the arteries and the development of heart failure.

The goal of treatment is to lower elevated blood pressure numbers. Studies have shown dramatic decreases in risk of stroke and heart disease when a patient successfully lowers high blood pressure by as little as five or six points.

The U.S. Preventive Services Task Force recommends the following:

• If your blood pressure is less than 120/80, you should have it checked again in two years or less.

• But if the top number (systolic) is between 120 and 139 or the bottom number (diastolic) is 80 to 90, have it checked again in a year or less. Always ask your doctor for your blood

pressure numbers, and write them down to compare with future readings.

CholesterolNever mind that it’s confusing which

type of cholesterol is “good” and which is “bad.” It’s simply important to have your cholesterol checked to find out if you are at risk of developing heart disease, especially because there are no signs or symptoms of high cholesterol.

Everyone has cholesterol in their blood. It is a normal and important part of a healthy

body. It actually helps in producing cell membranes and some hormones, as well as other needed bodily functions. But too much total cholesterol in the blood is a major risk for heart disease and stroke.

To know your cholesterol levels, ask your doctor for a blood test called a lipoprotein profile. A sample of blood is taken from your finger or arm. The profile will measure:

• Total cholesterol – Under 200 is optimal.

• LDL cholesterol (bad type) – Under 130 is OK for most people.

• Triglycerides (a type of fat in your blood) – Under 150 is best.

• HDL cholesterol (good type) – Below 40 is a major risk factor.The higher your total

cholesterol, the greater is your risk for heart disease, heart attack or stroke. If your test results show you have

high cholesterol, your doctor may recommend medication and a special low-fat diet. Other measures to control your cholesterol as well as high blood pressure are those we know well: getting active, controlling your weight and avoiding tobacco.

Weight Last, but not least, is

weight – a number we all tend to hedge. Today about two-thirds of American adults are overweight, and a third of those are clinically

obese. If you are overweight, you are at elevated risk for developing heart disease, stroke, diabetes, cancer and a variety of ailments, from sleep apnea and depression to joint and skeletal conditions of the feet, legs, knees, hips and spine.

The way the doctor most likely will measure you will be on a scale, but another is by your body mass index (BMI). This is a measure of body fat based on height and weight that applies to both adult men and women.

Finding out your BMI is the best way to learn if you are overweight or obese. Online tools can help you determine your BMI (such as http://bnsfweb.bnsf.com/departments/hr/wellness/pcc/bmi.html on the Intranet) or you can do it manually:

• First, take your height in inches and square the number (multiply the number of inches by the same number of inches).

• Second, divide your weight in pounds by that figure (your height in inches squared).

• Third, multiply your answer by 703.

• The result is your BMI.If your BMI is 40 or higher, you are at very

high risk. A BMI of 30 or higher is considered obese, and a BMI of 25 to 29.9 is considered overweight. Normal is considered 18.5 to 24.9 and underweight is anything below 18.5.

Call your doctor. Learn your numbers. Take another step in the right direction on your personal healthier way forward.

Editor’s Note: To learn more about these health indicators, see the Preventive Care “Hot Spot” on the Online Wellness Center at http://bnsfweb.bnsf.com/departments/hr/wellness/pcc/index.html.

9060

Blood Pressure

12080

14090

20

BMI

25

30

200 240

Total Cholesterol

A Healthier Way Forward

What’s in your numbers? Me

THESOLUTION

STARTS WITH

We’re a couple of months into our New Year’s resolutions, and the weight-loss commercials and fitness center discounts have finally started to taper off. Has your commitment to getting into better shape waned as well? If so, then it’s time to recommit.

nearly one in three adults in the United States has high blood pressure – the “silent killer.”

the higher your total cholesterol, the greater is your risk for heart disease, heart attack or stroke.

if you are overweight, you are at elevated risk for developing heart disease, stroke, diabetes,

cancer and a variety of ailments.

Page 16: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

16 raiLWay I SPRING 2010

Safety Drawing Contest winners announced

“Because Someone loves you”Ages 7 to 9 (and Grand Prize Winner): Alisa Roll, 9, is the daughter of Mike Roll, conductor, Gillette, Wyo.

“Better late Than Sorry”Ages 4 to 6: Aryamann Zutshi, 6, also the son of Mamta Zutshi.

“Safety first”Age 3 and under: Anshumann Zutshi, 3, is the son of Mamta Zutshi, revenue management clerk in Topeka, Kan.

Page 17: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

raiLWay I SPRING 2010 17

Budding artist alisa roll, daughter of Mike roll, a conductor in Gillette, Wyo., won the grand prize in BnSF’s recent safety drawing contest. alisa, 9, also won the category for her age group. the contest was open to children, grandchildren and dependents of BnSF employees and retirees.

Sponsored by the Labor Relations and Safety departments, the contest focused on the “Stay Off the Tracks” and “Look, Listen and Live” themes of Operation Lifesaver. BNSF is committed to the goals of Operation Lifesaver, which focuses on reducing fatalities and collisions involving rail right-of-way and highway-rail grade crossings.

Alisa’s heart-warming entry was titled “Because Someone Loves You.”

This was the first safety coloring contest for BNSF on this scale, and it was open to children of all ages, with five age-group categories: 3 and under; 4 to 6; 7 to 9; 10 to 12; and 13 to 18. The artwork had to be original (drawn or painted by hand using crayons or other art tools), and the entry also had to include a railroad image and show railroad right-of-way.

Each age-group winner received a $50 gift card, and Alisa, as the grand prize winner, received an additional gift card award of $100.

Mark Schulze, vice president, Safety, Training and Operations Support, says he was excited about the number of entries in the contest and sees tremendous value in any programs that raise awareness of railroad safety messages.

“We are focused on raising awareness of these themes from Operation Lifesaver in the communities we serve, just as we focus on the importance of safe behaviors for our employees,” Schulze says. “Safety is a top priority at BNSF, and many of the entries submitted focused on how important railroad safety is for employees, their families and the community.”

Congratulations to the winners and thanks to all who submitted entries!

Safety Drawing Contest winners announced

“Country Crossroads”Ages 10 to 12: Annalyssa Hardin, 10, is the daughter of Scott Hardin, a fuel management analyst in Fort Worth, Texas.

“Stay off the Tracks!”Ages 13 to 18: Connor Silliker, 18, is the son of Chad Silliker, a locomotive engineer in Whitefish, Mont.

Page 18: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

Wigs for childrenIt all started 25 years ago when Bill

Blankenship, Memphis mechanical foreman, attended an event for St. Jude Children’s Research Hospital. A nurse admired his long locks and then asked if he would donate his

hair to provide wigs for children who had lost their hair due to medical conditions. The children wear the wigs in professional family portraits.

Because of the effect the children had on him, he

couldn’t say no. He donated half the length of his hair, and a month later, he donated the other half. Every 18 to 24 months after that, he continued to donate 12 inches of hair at a time.

While he admits his long hair sometimes causes strangers to give him a second glance, his hair is not about vanity. He knows he helps families have a memory of their loved one without the painful reminder of how sick they are.

His next haircut may be his last as he’s seeing more gray hairs. (St. Jude does not accept gray hair, which is brittle and breaks easily.) “I wish I could do 30 more years of it,” Blankenship says.

Saving livesNorthwest Division Track Inspectors Gene

Astor and James Watts took action instead of looking the other way when they saw trespassers along the rail. This happened not once, but twice in one month.

While inspecting track, the two came upon a woman standing near the tracks who was not of sound mind. They convinced her to move

away from the tracks before calling a special agent. Three weeks prior to that incident, they encountered another woman on the tracks who had been injured in an accident.

“It was a cold morning and this poor girl was in bad shape,” Watts says. “We had to get her warmed up and get her some medical help.”

Wading across a shallow creek to remove her from the tracks, they called 911 and hy-railed down to a crossing where they were met by an ambulance.

In both incidents, their reason for acting was simple: “We don’t want to receive the phone call that a train hit a pedestrian because we turned the other way,” Watts says.

Giving in GlobevilleJulian Nieto, Denver switchman, and

Boogie Mondragon, his friend and former Denver Parks and Recreation employee, want to make the community in which they live a better place. So they founded Street-Kidz Inc., a program that serves area children.

“We’ve always worked with youth,” Nieto says. “This is just part of what we’ve been doing for years.”

Through Street-Kidz, the two work with Denver Public Schools to keep children in school. While the focus is on the Globeville community, anyone who wants to be a part of the program is welcome.

Nieto and Mondragon like to show children how choices can impact their lives. Field trips, such as one to a local prison, bring the message home.

“If you choose a positive scene, you get good rewards,” Nieto says. “If you choose

negative, there are consequences.”

The duo has seen positive changes in members of the community, such as the drug-dealing high school dropout who now has a successful job and is married with children.

Street-Kidz hopes to take over the Globeville Recreation

Center and expand services beyond seasonal sports, including free use of computers.

Walking for the homelessA team of BNSF employees and family

members joined 292 other teams and 3,453 individuals in a United Way HomeWalk. The event raised $147,257 to help end homelessness in Los Angeles County.

David Alves, manager hub operations, was

thankful and proud of everyone’s efforts. “We could not have done it without them,”

Alves says.

helping veterans Scottsbluff’s Western Nebraska Veterans

Home has a swimming pool-sized pond that serves as a significant source of recreation and enjoyment for its residents. Unfortunately, the pond began to leak, lose water and turn stagnant.

Facility officials wanted to refurbish the pond, but did not have the resources – until BNSF employees got involved.

Bruce Kutschara, machine operator, heard of the need from his wife, Kristi, a facility supervisor. He quickly proposed railroad involvement to Josh Garner, roadmaster.

“There were no funds to pay for the labor,” Kutschara says. “I knew we could run the heavy equipment and provide the labor.” With Garner’s blessing, Kutschara began recruiting fellow railroaders and “got an overwhelming response” of 20 volunteers.

The group began preliminary work to slope the sides of the pond and dig trenches, followed by installing a new pond liner. Volunteers also resurfaced a donated fishing dock, painted the bridge and installed a fence around the pond.

The first group of fish has been introduced and Nebraska Game and Parks will add more this spring.

Individuals, service organizations and community supporters from throughout the state also made the project happen through donations.

“We all put so much into this to

give a little to the veterans who gave so much for us,” Garner says.

The “Across the BNSF System” section is about BNSF people who are making a difference, who care enough to better the workplace as well as the communities where we live and where our trains operate. This feature is designed to connect us – from one point of pride to another. If you have a story you would like considered, please drop us an e-mail, via Communications, Corporate in Outlook, attention Railway Editor.

Julian Nieto, Denver switchman, left, and his friend, Boogie Mondragon.

Employees and their family members walk to end homelessness.

to the rescueSometimes you see something and you have

to act. This was the case with Ronnie Clark, Lafayette, La., switchman.

While on his way from Birmingham, Ala., to Lafayette, he saw a home blazing with fire. He received no answer after ringing the doorbell, but persisted, banging on the door.

A 15-year-old girl answered, oblivious that the house was on fire. He evacuated her and her 3-year-old and 11-year-old sisters from the house before dialing 911.

While the house was a loss, the girls were safe. The local

fire chief told Clark the situation would have been devastating if he had come along five minutes later.

The fire reinforced to Clark the importance of being aware of one’s surroundings, whether on or off the job.

“You never know who could be in danger, what could be happening around you if you’re not alert and attentive,” he says.

Clark received an award from the City of Monroe, La., recognizing his heroism.

Ronnie Clark, center, receives an award from Monroe, La., Fire Chief Jimmie Bryant; look-ing on is Monroe Mayor Jamie Mayo.

From left: Jeremy Nicholson, Western Nebraska Veterans Home project coordinator; Larry Nimnic, Nebraska Machinery; Lonnie Starke, Western Nebraska Veterans Home director; Travis Jacobs, maintenance section fore-man; Josh Garner, Scottsbluff roadmaster; Bruce Kutschara, machine operator; and Tim Anderson, machine operator.

Bill Blankenship, Mem-phis mechanical foreman.

Track Inspectors James Watts, left, and Gene Astor receive On Guard Awards from Senior Special Agent Tom Good.

18 raiLWay I SPRING 2010

Page 19: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

raiLWay I SPRING 2010 19

leave of absence and the G.I. Bill. We also want to ensure that you are included in local BNSF veterans-related community events throughout the system as well as BNSF’s annual Veterans Day recognition program.

Updating your personnel file is simple. Go to the BNSF Intranet site and click on:

• “Employee” in the upper-left corner.

• Once there, in the “Personal Information” window, click “Additional Personal Data.”

• Locate and click the yellow “Edit” button to update your veteran status.

• Click “Review” then “Save.”Thanks for updating your files – and a

special thanks for your service to our country. If you have additional questions, please contact John Wesley, military staffing manager, at [email protected].

Workplace research shows most companies with similar workforce demographics have almost 10,000 employees who are military veterans or currently serve in the National Guard or Reserve. BNSF’s Human Resources Department predicts there are approximately 3,500 employees working today whose military service has not been recorded.

This has been an Affirmative Action requirement since 1978, and BNSF began actively tracking veteran numbers in 2005 when our Military Recruiting program was initiated. Veterans who hired on before 1996 would not have been prompted to submit this information, so here’s your chance!

We want to make sure you are targeted for benefit-specific information, such as military

despite an uncertain economy, BNSF remains committed to making the necessary investments to protect and grow the value of its franchise. That’s why the company has a 2010 capital commitment program of $2.4 billion, which is slightly lower than 2009, mainly because of fewer anticipated locomotive purchases.

Of this year’s capital program, BNSF expects to spend about $2.1 billion for track, signal systems, structures and freight cars, and to upgrade technologies, including the unfunded mandate for positive train control (PTC). BNSF also anticipates acquiring approximately 170 locomotives at a cost of about $320 million.

The majority of the Engineering work focuses on maintaining and improving the infrastructure to ensure a safe, reliable network when the economy and traffic levels improve.

Already work is well under way in the southern region, and as the weather warms, the season will reach full speed in the north.

Here’s a review of the Engineering team’s plan for 2010:

• Rail replaced – 842 miles

• Ties installed – 3 million

• Undercutting – 428 miles

• Shoulder ballast cleaning – 2,516 milesEngineering continues to make progress

on the Abo Canyon project on the Clovis Subdivision in New Mexico, where BNSF is constructing five miles of second main track. Grading work is nearly complete, and bridge construction is under way. Track and signal work is currently scheduled for 2011.

The Burlington Bridge project is another major project for 2010. (See page 13.)

Engineering is also in the early stages of installing the PTC infrastructure in some key metropolitan areas. This is a significant undertaking for the Signal team, working closely with Telecommunications and Network Control Systems. The teams are working to ensure that the systems are in place to meet the deadline of 2015, as outlined by Congress in the Rail Safety Improvement Act of 2008.

Calling all who have served in the U.S. Armed Forces HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

HHHHHHHHHHH HHHHHHHHHHH

approximately 6,500 BnSF employees have verified that they once served our country in the U.S. military or continue to serve in the national Guard or reserves today. are you one of them?

2010 capital program: When economy rallies, BnSF will be ready

BnSF Units* handledYear-to-Date through March 8, 2010 2010 2009

Coal 416,724 477,118

Agricultural Products 197,476 170,357

Industrial Products 220,822 222,706

Consumer Products 706,819 729,817

System 1,541,841 1,599,998

BnSF Performance Measures

BnSF reportable injuriesYear-to-Date through February 28, 2010

1072009

2010 104

2010 BnSF Velocity PerformanceQuarter-to-Date through March 8, 2010 1st Qtr. Goal Actual QTD

Locomotives miles per day 307.3 308.4

Agricultural car miles per day 204.9 192.0

Merchandise car miles per day 137.9 131.3

Coal car miles per day 328.0 327.6

Intermodal transit days 3.44 3.61

Locomotive data is measured as miles per day.

Agricultural, Merchandise and Coal active car cycle data is measured as miles per day on the BNSF system.

Intermodal average transit days=Average time between cutoff and deramp or interchange delivery (transit time starts at cutoff or first train departure if cutoff is after first train departure). The measure weights average trailer and container transit times. With this measure the lower the number the better.

The majority of this year’s Engineering work focuses on maintaining and improving the infrastructure to ensure a safe, reliable network when the economy and traffic levels improve.

*Carloads, trailers or containers

Page 20: Safety in action: Employees close the loop on risk...employees: To review your address, call company line 676-9001 or dial 1-800-274-6739 or review and change your address online via

P.O

. Box

961

057

Fort

Wor

th, T

exas

761

61-0

057

PR

SR

T S

TD

U.S

. PO

STA

GE

PA

IDFO

RT

WO

RT

H, T

XP

ER

MIT

NO

. 252

8

Th

e e

mP

lo

ye

e m

Ag

Az

Ine

of

Te

Am

Bn

Sf

S

PR

Ing

20

10

GOT QUESTIONS ABOUT AGREEMENTS, BENEFITS AND MORE?

[email protected]