Railroad News

BNSF Railway Co. is challenging in federal court an Oklahoma law that requires railroads operating in the state to minimize blocking grade crossings for longer than 10 minutes without good reason, an Oklahoma newspaper reported today.

The suit, which the Class I filed yesterday in Oklahoma City, targets Oklahoma's elected corporation commissioners and two cities' police departments that have cited the railroad for violations so far, The Oklahoman reported.

Ceres Global Ag Corp. has established a yet-to-be-named joint venture with Steel Reef Infrastructure Corp. that will focus on transloading hydrocarbon products for transportation between the United States and Canada.

The joint venture's facilities will be located at Ceres' Northgate rail terminal in Saskatchewan, Canada, which is served by BNSF Railway Co. The joint venture will begin operations July 1, according to a Ceres press release.

BNSF Railway Co. reported its first-quarter 2019 operating income rose 2 percent to $1.8 billion, total revenue climbed 2 percent to $5.76 billion and net income jumped 9 percent to $1.25 billion compared with the same period a year ago.

The Class I attributed its growth in total revenue to higher rates per car, a favorable outcome of an arbitration hearing and higher fuel surcharges, according to a quarterly financial summary posted on bnsf.com.

By Vesna Brajkovic, Associate Editor

BNSF Railway Co. last week was granted exemptions from the Federal Aviation Administration’s (FAA) Extension, Safety, and Security Act of 2016, which will help lay the foundation for expanded drone operations, according to an FAA grant of exemption document. 

BNSF Railway Co. yesterday rolled out more of its state-by-state capital expenditure plans for 2019, announcing $445 million worth of projects slated for Kansas, Missouri and Nebraska.

In Kansas, the Class I will invest $165 million to replace and upgrade rail, ties and ballast. The maintenance program will include 560 miles of track surfacing and/or undercutting work, as well as the replacement of 30 miles of rail and 120,000 ties. In addition, BNSF plans to begin a multiyear project to install double track on portions of the Emporia Subdivision, which operates between Wellington and Kansas City.

BNSF Railway Co. yesterday announced it will invest $105 million this year on capital expenditures in Montana.

Consisting mostly of planned maintenance, the plan calls for more than 840 miles of track surfacing and/or undercutting work, as well as the replacement of 55 miles of rail and close to 110,000 ties. 

BNSF Railway Co. posted fourth-quarter operating income of $2.1 billion, up 3 percent over the same quarter's results in 2017.

A subsidiary of Berkshire Hathaway Inc., BNSF logged quarterly revenue of $6.2 billion, up 10 percent, and a net income of $1.4 billion, up 30 percent, compared with 2017's results, according to a BNSF financial performance summary.

BNSF Railway Co. yesterday unveiled its 2019 capital expenditure plans for California, New Mexico and Texas.

In Texas, the Class I will spend $405 million for expansion work that will include a new double track to be constructed between the Alliance Intermodal Facility in Fort Worth and Cleburne, as well as two new sidings in the Madill Subdivision north of Dallas.

BNSF Railway Co. will spend $3.57 billion on capital expenditures this year, up from $3.4 billion in 2018, the Class I announced yesterday.

This year's plan will continue to emphasize maintenance and expansion of the network "with an unwavering focus on operating a safe railroad that meets customers' demands," BNSF officials said in a press release.

The U.S. Coast Guard has released a draft environmental assessment (EA) of BNSF Railway Co.'s proposed construction of railroad bridges across Lake Pend Oreille and Sand Creek at Sandpoint in Bonner County, Idaho.

BNSF proposes constructing a second mainline track and associated bridges parallel to existing rail bridges that cross the lake and creek. As structures over U.S. navigable waters, the proposed bridges will require a Coast Guard bridge permit.

BNSF Railway Co. announced yesterday that plant construction and upgrade investments made by its customers in 2018 totaled nearly $3 billion.

Last year marked the eighth consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities, according to a BNSF press release.

BNSF Railway Co. has awarded its "Certified Sites" designation to two new industrial locations in Galesburg, Illinois, and Clovis, New Mexico.

The program identifies optimal rail-served sites for customer development along the Class I's network. To be considered for the designation, sites must undergo a thorough analysis that includes an evaluation of environmental and geotechnical standards, available utilities and site availability.

By Jeff Stagl, Managing Editor

BNSF Railway Co. is moving strong volumes throughout its network during the late portion of the peak season, according to a customer letter issued by the Class I Dec. 21.

Volume in the week ending Dec. 15 increased slightly over the prior week and represented a new year-to-date high at nearly 216,500 units, BNSF officials wrote in the letter. Year-to-date volume through that week totaling 10.3 million carloads and intermodal units exceeded the full-year volume in each of the past 11 years, they said.

The City Council of Willmar, Minnesota, this week unanimously approved master agreements for the Willmar Wye rail project.

The project is a public-private partnership between BNSF Railway Co., the Minnesota Department of Transportation (MnDOT), Kandiyohi County and the city of Willmar to build a new rail line bypass on the city's west side.