Railroad News

Rail News Home BNSF Railway 5/30/2017 Rail News: BNSF Railway
Pictured left to right: BNSF Marketing Director Jon Tinker, AmeriGas Rail Supply Manager Torri Stuckey, BNSF Marketing Director Pat Moynihan, AmeriGas Director of Supply Heather GranzinPhoto – bnsf.com

Rail News Home BNSF Railway 5/24/2017 Rail News: BNSF Railway
The U.S. Environmental Protection Agency (EPA) announced on Monday an agreement with BNSF Railway Co. to begin cleanup at the Haystack Mines Site, a group of three abandoned uranium mines near Prewitt, N.M., and the Baca/Prewitt chapter on Navajo Nation.Work at the site is slated to begin in July and last four months, according to an EPA press release.The mines operated from 1952 to 1981, and produced 400,000 tons of uranium ore. Today, the 174-acre site is used for livestock grazing, one residence and a few nearby homes.Under the agreement, BNSF will:
• take biological and cultural assessments of the property to ensure cultural resources and sensitive species are not impacted;
• fence the property and post warning signs;
• provide temporary alternative housing to affected residents, if necessary;
• construct access roads; and
• excavate contaminated soil.During the Cold War, 30 million tons of uranium ore were mined on or adjacent to the Navajo Nation, leaving more than 500 abandoned mines. The EPA has entered into settlement agreements valued at $1.7 billion to reduce the highest risks to the Navajo people, agency officials said. Contact Progressive Railroading editorial staff. More News from 5/24/2017

Rail News Home BNSF Railway 5/23/2017 Rail News: BNSF Railway
American PetroLog's new storage and transloading facility will be served by BNSF.Photo – American PetroLog's Facebook page

Rail News Home BNSF Railway 5/16/2017 Rail News: BNSF Railway
BNSF Railway Co. has appealed an environmental review of the proposed Columbia River coal-export terminal in Washington state, according to reports in local news media.Last year, Millennium Bulk Terminals-Longview LLC proposed the construction and operation of a terminal to export coal from the site of the former Reynolds Aluminum smelter in the city of Longview in Cowlitz County. The terminal would be served by BNSF.The project's Final Environmental Impact Statement (FEIS) by the Washington Department of Ecology and Cowlitz County determined that diesel particulate emissions from trains serving the terminal would cause "an unavoidable increase" in the cancer risk rate for area residents, according to The Daily News.BNSF officials believe the FEIS "makes several faulty assumptions about BNSF's railway operations, resulting in conclusions that overstate, in a counterproductive manner, the potential health risks associated with railroad operations in Washington, and the United States," according to BNSF's "Inside Track" newsletter dated May 10."Our biggest concern with this new analysis is that it suggests diesel particulate emissions from locomotives substantially increase cancer risks in communities that are located by railroad tracks in Washington," the BNSF newsletter states. "No credible scientific studies have ever shown this to be the case."Millennium Bulk Terminals-Longview operates a bulk materials port on the Columbia River. Contact Progressive Railroading editorial staff. More News from 5/16/2017

5/16/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 5/8/2017 Rail News: BNSF Railway
BNSF Railway Co.'s first-quarter revenue rose 8.8 percent to $5.2 billion and pre-tax earnings increased 6.9 percent to $1.3 billion compared with the same quarter a year ago, the Class I's parent Berkshire Hathaway Inc. reported late last week.BNSF posted operating income of $1.6 billion, an increase of 6 percent, and net income of $838 million, an increase of 7 percent, compared with operating and net income in first-quarter 2016.The quarter's revenue reflected a 2.7 percent year-over-year increase in average revenue per car/unit, and a 6.4 percent increase in volume, according to the parent company's 10Q filing with the Securities and Exchange Commission.By commodity, the Class I posted Q1 2017 freight revenue of:
• $1.7 billion from consumer products, up 8.8 percent compared with the year-ago period. Consumer product volume benefited from higher domestic and international intermodal, and automotive volumes.
• $1.2 billion from industrial products, up 3.9 percent compared with last year's Q1. The increase was primarily the result of higher average revenue per unit. Overall, industrial product volumes were slightly higher in Q1 2017 than they were in Q1 2016. BNSF experienced volume increases in minerals and other commodities that support domestic drilling activity and decreases in petroleum products volume due primarily to a displacement of U.S. crude-oil traffic, as well as lower plastics volume.
• $1.1 billion from agricultural products, up 5.7 percent compared with a year ago. The railroad attributed the gain primarily to higher average revenue per unit, as well as volume growth of 1.8 percent. During Q1 2017, the railroad posted higher grain exports that were partially offset by lower domestic grain shipments.
• $960 million from coal, up 23.2 percent in Q1 2017 compared with a year ago. The coal revenue increase reflected an 18.5 percent increase in volumes and higher average revenue per unit. Higher coal volume in the quarter resulted from mild winter weather in Q1 2016 and higher natural gas prices in Q1 2017.BNSF's operating expenses rose 9.9 percent to $3.6 billion in Q1 2017 compared with last year's first quarter. The railroad's operating ratio rose 0.7 percentage points to 69.2 percent. Year over year, operating expenses rose because of higher compensation and benefit costs (up 6.2 percent) and higher fuel expenses (up 53.2 percent). Depreciation expense climbed 10.2 percent due to a larger base of depreciable assets in service. Contact Progressive Railroading editorial staff. More News from 5/8/2017

5/8/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 4/13/2017 Rail News: BNSF Railway
BNSF Railway Co. this week recognized a group of employees for outstanding achievements in 2016.BNSF's annual Employees of the Year program identifies employees who've made exceptional contributions while demonstrating the company's "vision and values through commitment, leadership and focus on working safely and efficiently to meet customer expectations," according to a BNSF press release.Of more than 40,000 employees, 65 were recognized for individual and team achievements last year. Another 40 were acknowledged for safety leadership, all of whom led teams that worked throughout 2016 without a reportable injury."These employees are a reflection of our entire team's resolve to focus on safety, serve our customers, improve efficiency and performance, and deliver on the essential role we play in our global economy every day," said BNSF President and Chief Executive Officer Carl Ice.Examples of the employees' efforts include the efficient transition of the majority of BNSF's frac sand business to unit train service; the successful renewal of BNSF direct operations on the 130-mile rail line between Tenaha and Silsbee, Texas, previously operated by Timber Rock Railroad; and partnership with the Federal Aviation Administration to develop a safety integration plan for beyond-visual-line-of-sight operations of unmanned aerial vehicles in the United States.Also recognized were five Safety Employees of the Year, who represent the engineering, intermodal business unit operations, mechanical, telecommunications and transportation teams. Contact Progressive Railroading editorial staff. More News from 4/13/2017

4/13/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 4/7/2017 Rail News: BNSF Railway
(Left to right) D’Anne Duclos, VP, Toyota Logistics Services; Bill Barrett, senior rail and truck strategy and operations manager, Toyota; Dave Fleenor, AVP-automotive, BNSF; Katie Farmer, group VP-consumer products, BNSF; Aaron Lakey, director of automotive sales, BNSF; and Lee Hobgood, general manager of vehicle transportation, ToyotaPhoto – BNSF Railway Co.

4/7/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 3/15/2017 Rail News: BNSF Railway
BNSF Railway Co., Husky Energy, the Washington State Department of Ecology and Washington State Department of Transportation (WSDOT) have agreed on a framework for the environmental cleanup of an underground oil contamination area in northeast Spokane that is within the alignment of the North Spokane Corridor freeway project.The framework sets the basis for WSDOT to continue design and construction of the corridor freeway in a way that aligns the department's legislative funding and construction schedule with the ecology department's obligation to ensure a thorough cleanup of the "Black Tank" contamination site, according to a press release issued by the state, BNSF and Husky Energy.Also, the framework outlines the right-of-way access provisions to the BNSF property needed to keep the freeway profile within the project's approved footprint, and close to WSDOT's original final environmental impact statement plan.The framework sets a 20-year restoration timeframe for the site, which will include pilot tests that will allow final cleanup decisions to be based on performance at the site.All four parties worked together over the past 18 months to develop the agreement. It's a win for all involved, including community members that expressed various concerns such as the impact on neighborhood aesthetics and the need for more expensive bridges and infrastructure maintenance costs, officials said. "We are focused on moving forward with the remediation of the Black Tank site in partnership with our stakeholders and look forward to continued collaboration," said Allen Stegman, general director of environmental at BNSF."Cleaning up the Black Tank site remains our top priority, and we're committed to ensuring a safe groundwater supply for Spokane," said Jim Pendowski, program manager of the ecology department's toxics cleanup program manager. "We're pleased that by working with WSDOT, Husky, and BNSF, we're on the path toward the community-preferred freeway alignment and achieving an effective cleanup." Contact Progressive Railroading editorial staff. More News from 3/15/2017

3/15/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 3/6/2017 Rail News: BNSF Railway
BNSF Railway Co. will clean up coal and petroleum coke in waterways, fund a study of rail-car covers and pay $1 million for environmental projects in Washington state, according to consent decree filed in U.S. District Court.The decree resolves a Clean Water Act lawsuit in Seattle brought against BNSF by environmental groups including the Sierra Club, Puget Soundkeeper, Columbia Riverkeeper, Spokane Riverkeeper, RE Sources for Sustainable Communities, Natural Resources Defense Council (NRDC) and Friends of the Columbia Gorge.Under the decree, BNSF will pay for the cleanup of Pacific Northwest waterways that were polluted by coal or petroleum coke that spilled from open-topped rail cars. In addition, BNSF will pay $1 million for environmental projects in the Bellingham, Puget Sound, Columbia River and Spokane River areas. The Class I also will clean up areas of the Columbia River and its tributaries that have been littered with coal and petroleum coke from BNSF trains.Moreover, the decree requires the railroad to fund a study about covers for rail cars carrying coal and petroleum coke.BNSF officials said the agreement reflects the Class I's long-term efforts to address coal dust "and allows us to continue that practice without the distraction of a prolonged legal battle," according to a prepared statement issued by company spokeswoman Courtney Wallace.The environmental groups initially sued BNSF for $4.6 trillion, and the $1 million settlement "reflects the truth that the sweeping allegations from the plaintiffs were simply unfounded," said Wallace.Additionally, BNSF denies any violations of the Clean Water Act, and the U.S. District Court judge did not find any specific violations.Regarding the study of physical covers for coal and petroleum coke trains, Wallace said the first step will be to identify available prototypes for testing."BNSF will develop a study protocol to assess the safety and commercial and operational feasibility of available prototypes, as well as their effectiveness in reducing coal or petroleum coke dust," Wallace said. "The settlement does not require a particular outcome or conclusion with respect to car covers. The study results will be driven by data and technical analysis."During a weeklong trial in November 2016, scientists testified that a million or more coal particles per second come off each rail car. The particles release mercury, arsenic and other pollutants into waterways along BNSF rail lines, they testified, according to a press release issued by the environmental groups. Contact Progressive Railroading editorial staff. More News from 3/6/2017

3/6/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 2/28/2017 Rail News: BNSF Railway
BNSF Railway Co. reported fourth-quarter 2016 revenue, operating income and net income all declined compared with the same quarter in 2015.In 2016, total revenue slipped 2 percent to $5.3 billion, operating income fell 8 percent to $1.8 billion and net income decreased 8 percent to $993 million compared with the previous year's quarter, BNSF said in a financial performance statement.For the full year, the Class I's total revenue dipped 10 percent to $19.8 billion, operating income tumbled 13 percent to $6.7 billion, and net income plummeted 16 percent to $3.6 billion compared with 2015's results.BNSF attributed the decrease in earnings for the quarter and full year to "continued decline in demand, in particular in coal and crude oil businesses."The drop in total revenue for the quarter and full year was due to "a flat unit volume for the fourth quarter and a decrease in full year 2016 unit volume of 5 percent, respectively, compared with the same periods in 2015, as well as business mix changes and the impact of lower fuel prices on our fuel surcharge revenues."The railroad also reported an operating ratio of 65.1 percent for Q4 2016 compared with 62.6 percent for Q4 2015, and 65.5 percent for full-year 2016 compared with 64 percent in 2015.Among the business unit highlights for fourth-quarter and full-year 2016:
• Higher domestic intermodal volumes and the addition of a new automotive customer helped boost consumer product volumes 3 percent and 1 percent for Q4 and full year, respectively, compared with the same periods in 2015.
• Industrial products volumes fell 9 percent and 8 percent for Q4 and full year, respectively, compared with the same results in 2015. The primary cause was lower petroleum products, reflecting pipeline displacement of U.S. crude rail traffic and lower U.S. oil production. In addition, there was lower demand for steel and taconite. The full year volume decrease was partially offset by increased plastics products volume.
• Higher corn, soybean and wheat exports helped lift agricultural products volumes, which rose 5 percent and 6 percent for Q4 and full year, respectively, compared with 2015's volumes.
• Coal volumes were down 4 percent for Q4 and 21 percent for the full year compared with 2015 levels. The Q4 decline was primarily due to coal retirement and high coal stockpiles, while the full year decline was due to those factors as well as lower demand driven by reduced energy consumption and low natural gas prices during the first half of 2016.BNSF's operating expenses rose 2 percent in Q4 2016, but fell 8 percent for the full year compared with expenses in the previous year.The railroad spent $3.9 billion on capital expenditures in 2016, the largest component of which supported maintenance and replacement of BNSF's core network and related assets.BNSF has committed $3.4 billion for its 2017 capital expenditures. The capex program will continue to focus on maintenance and replacement of the network and related assets to ensure a safe and reliable network. In 2017, that component is expected to cost $2.4 billion. Those funds will primarily go toward replacing and upgrading rail, rail ties and ballast, as well as maintaining rolling stock.The company plans to spend $400 million on expansion projects, $100 million for continued implementation of positive train control and $400 million for locomotives, freight cars and other equipment acquisitions. Contact Progressive Railroading editorial staff. More News from 2/28/2017

2/28/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 2/22/2017 Rail News: BNSF Railway
One major project includes United Sugars' storage dome, which can hold 60,000 metric tons of sugar.Photo – American Crystal Sugar Co.

2/22/2017    

Rail News: BNSF Railway

Rail News Home BNSF Railway 2/17/2017 Rail News: BNSF Railway
The Illinois attorney general announced a settlement with BNSF over a 2015 crude-oil train derailment in Galena, Ill.Photo – BNSF.com