Agricultural Products Network Update for Friday, February 2, 2024

Date
Feb 2, 2024

OPERATIONAL PERFORMANCE
BNSF teams are driving improved operational performance as favorable weather conditions have returned across much of the BNSF network. Average car velocity was significantly higher than last week. Terminal dwell, while elevated, was also reduced substantially. Our local service measure improved by over 4% and rebounded to December levels.

As reported, on Monday night, we experienced a derailment on the Brush Subdivision near Roggen, Colorado, approximately 50 miles northeast of Denver. The main track was out of service until Wednesday morning as BNSF teams and contractors completed track repairs. Traffic flows through the area continue to normalize.

In Washington, heavy coastal rain triggered slide activity along our main lines in multiple locations on our Seattle Subdivision, which runs between Vancouver and Seattle. Some trains experienced delays due to a track outage that occurred on Friday. All main lines are currently open, but speed restrictions remain in place.


2024 CAPITAL PLAN
BNSF announced our 2024 capital investment plan last week. The $3.92 billion plan will ensure we continue to operate a safe and reliable network while supporting the anticipated needs of our customers.

The largest part of this year’s plan, $2.88 billion, is dedicated to replacing and upgrading rail, track infrastructure like ballast and rail ties and maintaining rolling stock. Maintenance investment ensures the railroad is in top condition, which results in less unscheduled service outages that can slow down the rail network and reduce capacity. This year’s program will include approximately 13,000 miles of track surfacing and/or undercutting work and the replacement of 365 miles of rail and about 2.8 million rail ties. Approximately $440 million of this year’s capital plan is for equipment acquisitions.

Approximately $600 million of this year’s capital plan has been allocated for expansion and efficiency projects, which help support the growth of all our customers across the network. These projects are focused in key areas along the Southern Transcon route, connecting Southern California to Chicago, as well as property acquisitions and development activities for the planned Barstow International Gateway (BIG) project.

We will provide further details on many of the capacity projects in subsequent updates throughout the year.

SERVICE EXPECTATIONS FOR THE WEEK AHEAD
A storm that brought heavy rain to the West Coast this week is moving east across the Western Rockies. Another weather system is expected to land in roughly the same area of California on Sunday; thunderstorms and flash flooding are forecasted to impact most of California and portions of Oregon into next week. The heaviest rain is predicted from San Diego to San Francisco, with several inches to more than a foot of rain expected to fall. BNSF teams are prepared and ready to respond to weather-related service challenges. The rest of the network should experience mild weather and favorable operating conditions.

We thank you for your business and appreciate the opportunity to serve as your transportation service provider. We welcome your feedback and questions.