Berkshire's BNSF Railway Sets $3.57 Billion Capital Investment Plan
February 13 2019 - 12:51PM
Dow Jones News
By Colin Kellaher
Berkshire Hathaway Inc.'s (BRKA, BRKB) BNSF Railway Co. unit on
Wednesday unveiled a $3.57 billion capital investment plan for
2019, with the bulk of the spending aimed at maintaining its
network.
The Fort Worth, Texas, railroad said it will spend about $2.47
billion this year on maintenance projects, including roughly 12,000
miles of track surfacing and/or undercutting work, the replacement
of 535 miles of rail, and nearly 2.3 million rail ties.
BNSF said it will spend another $760 million on expansion and
efficiency projects. The railroad plans to expands its routes that
connect southern California with Chicago and the Pacific Northwest
to Upper Midwest.
BNSF said it has earmarked about $340 million to buy freight
cars, locomotives, and other equipment.
The railroad, which operates about 32,500 route miles of track
in 28 states, spent about $3.4 billion on capital projects last
year.
Berkshire bought BNSF in 2010, paying $26 billion for the 77%
that it didn't already own in one of the biggest deals ever for
billionaire Warren Buffett's investment vehicle.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 13, 2019 12:36 ET (17:36 GMT)
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