News Release

SWRR Announces Lease of New Mexico Line from BNSF

CLARKDALE, ARIZONA and FORT WORTH, TEXAS – October 4, 2004:

Southwestern Railroad, Inc. (SWRR) is now serving rail customers on 263 miles of track between Loving Junction and Clovis, N.M. SWRR is leasing the line, known as the Carlsbad Subdivision, from The Burlington Northern and Santa Fe Railway Company (BNSF) and began operations over the line Sunday, October 3.

This additional SWRR trackage will serve customers at the stations of Cameo, Portales, Yerba, Delphos, Kermit, Elida, Tornero, Kenna, Boaz, Campbell, Acme, Melena, Poe, Roswell, South Springs, Chisum, Dexter, Hagerman, Espuela, Artesia, Atoka, Dayton, Lakewood, Avalon, Carlsbad, Otis, and Loving, N.M. SWRR will interchange with BNSF at Clovis, N.M.

With the addition of the Carlsbad Subdivision, SWRR consists of three distinct operations, with lines in New Mexico, Texas and Oklahoma. SWRR began operations in June 1990 on lines purchased from the Santa Fe Railway, a BNSF predecessor. SWRR’s other two operations are the "Whitewater Branch" based in Hurley, N.M., and the "Shattuck Branch" in the Texas-Oklahoma Panhandle.

"We have a well-established working relationship with BNSF, and we’re pleased to bring the benefits of that relationship to customers on the Carlsbad Subdivision," says Ron Lindsey, SWRR’s general manager. "We look forward to serving our new customers and working with them to expand their markets."

"BNSF consistently reviews its network to ensure the most efficient use of assets and to provide the most effective service for its customers," says BNSF’s Pete Rickershauser, vice president, Network Development. "We believe the Southwestern Railroad has the operating flexibility and local business development focus to serve and benefit the customer base in southeastern New Mexico, while, through direct connection with BNSF at Clovis, continuing to offer customers the network reach and marketing opportunities which BNSF provides and continues to refine and enhance."

SWRR is part of The Western Group L.C., an association of short line railroads serving businesses throughout the West and mid-western United States. The short line railroads are all independently operating entities owned by Dave Durbano, President & C.E.O. In addition to short line railroads, during the early 1990s The Western Group expanded its association to include ranching affiliates. The Western Group continues to grow internally by developing each segment of its present business by improving sales and profitability of each of the associate short lines, and through favorable new acquisitions and expansion.

A subsidiary of Burlington Northern Santa Fe Corporation (NYSE:BNI), BNSF operates one of the largest railroad networks in North America, with about 32,500 route miles covering 28 states and two Canadian provinces. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. BNSF is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000