2015 capital expenditures
take a leap by Mischa Wanek-Libman, editor
Norfolk Southern
Capital spending will be up among the seven Class 1 railroads in North America. NS’ crude train staging tracks in Conway, Penn.
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orth American Class 1 railroads plan to spend approximately $20 billion in 2015 on capital expenditures. A number that is more than 40 percent above what the Class 1s spent in 2013, just two years ago. The biggest jump in yearto-year planning is from BNSF, which increased its spend by $500 million followed by Canadian National with an increase of $237 million. Investments remain focused on growth and core maintenance will continue to be strong with all railroads continuing to focus on rail, crosstie and bridge work. Information found in our annual capital expenditure story comes from earnings reports, industry association presentations and general reporting. All figures are in U.S. dollars and should be read as estimates and are subject to change.
BNSF BNSF was the fir st railroad to announce its 2015 capital expenditure plan in November 2014. The railroad 22 Railway Track & Structures
plans to spend a record $6 billion in 2015, a large chunk of that, $1.5 billion, in its North Region across eight states for engineering maintenance and line expansion projects. The 2015 spend includes $2.9 billion to replace and maintain core network and related assets, nearly $1.5 billion on expansion and efficiency projects, $200 million for continued implementation of positive train control (PTC) and about $1.4 billion for locomotives, freight cars and other equipment acquisitions. “Building on the 2014 capacity increases, we will continue investing in our railroad to make us ever more capable of getting agriculture, energy supplies and a wide range of consumer and industrial products where they want to go,” said Carl Ice, BNSF president and chief executive officer. Highlights from work planned in the North Region include installing double track on the Glasgow Subdivision; extending the siding on the Dickinson Subdivision and terminal expansion of Dickinson yard; converting the entire Devils Lake
February 2015
Subdivision to centralized train control (CTC) and complete CTC implementation on the Hillsboro Subdivision. Highlights from the South Region include connecting two sidings on the Mojave Subdivision; construction of double track on the Panhandle Subdivision and the Clovis Subdivision. In its Central Region, BNSF will construct two new sidings on the northern and southern ends of the Hannibal Subdivision in western Illinois; construct two double track segments on the Ravenna Subdivision and extend sidings at six locations on the Brush Subdivision.
canadian national Canadian National is targeting a 2015 capital spend of approximately $2.06 billion, which is an increase of $237 million over its 2014 spend. CN plans to increase its basic capital renewal program in several categories including a 33-percent increase in new rail laid; a 26-percent increase in crossties; a 145-percent increase in www.rtands.com