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2017 Railway Infrastructure and Vehicle Inspection Technology Conference John Cech AVP & CHIEF ENGINEER SYSTEM MAINTENANCE & PLANNING 6/20/17 BNSF is a Leading U.S. Railroad A Berkshire Hathaway company 41,000


  1. 2017 Railway Infrastructure and Vehicle Inspection Technology Conference John Cech AVP & CHIEF ENGINEER – SYSTEM MAINTENANCE & PLANNING 6/20/17

  2. BNSF is a Leading U.S. Railroad • A Berkshire Hathaway company • 41,000 employees* • Approximately 8,000 locomotives • Moves one-fourth of the nation’s rail freight • Operates over 1,200 freight trains per day • A leader in the industry in technological innovation 2 *BNSF Railway employees as of Dec. 31, 2016

  3. BNSF is a Leading U.S. Railroad • 32,500 route miles in 28 states and three Canadian provinces • 13,000 bridges and 88 tunnels • Serves over 40 ports 3

  4. Rail Infrastructure and Vehicle Inspection Technology Conference • First ever to be focused on the advancements and applications of the ever increasing array of new technologies to improve railway safety, operations, and efficiency. • Bring together the railroad and rail transit community to exchange information and advance the state of the art with objectives of: • Improving the effectiveness of existing technologies • Development and implementation of new technologies • Research on emerging technologies with the potential to improve rail transport • Goal of connecting industry needs with the people and organizations that can develop solutions “Discuss yours and BNSF’s perspective, vision, and leadership regarding inspections technologies and their vital importance to the future of rail safety , efficiency , and reliability .” 4

  5. Rail Equipment Incidents Since 2007, the industry rail equipment incident rate has been reduced by 32% and BNSF’s rail equipment incident rate has been reduced by 42% Incidents per million train-miles 5.00 4.00 3.39 3.00 3.31 2.31 2.00 1.93 1.00 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Industry Reportable Total REI Rate BNSF Reportable Total REI Rate 5 Source: FRA 1.12 – Ten Year Accident/Incident Overview. Excludes Highway Crossing Accidents

  6. On BNSF All Types of Incidents Have Declined Incidents per million train-miles Track-Caused Equipment-Caused Human Factor-Caused 1.60 1.40 1.20 0.97 1.00 -32% 0.80 0.53 0.60 -51% 0.40 -50% 0.20 0.19 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6 Source: FRA 1.12 – Ten Year Accident/Incident Overview. Excludes Highway Crossing Accidents.

  7. Prevention: Reducing Risk Track/Signal Human Factor Equipment/Mechanical • Training • Ultrasonic inspection • Enhanced track inspection training • Remote monitoring • Detector network - dragging equipment • Continued elimination of • Positive Train Control • Technology jointed rail & joints in CWR • Self reporting protocol • Thermal/infrared scanning for • Strong capital program in warm bearing detection rail, tie, and ballast renewal • Technology - enhanced Our ongoing focus geometry testing, is on instilling a aggressive rail detection culture of program, improved use of commitment and data compliance – a culture that is sensitive to exposure and risk. 7

  8. Inspection Capabilities and Methods MECHANICAL Railcar – Equipment Detection Locomotive – RM&D ENGINEERING Track Inspection Structures Inspection 8

  9. Prevention: Equipment Detection Technology • More than 2,000 trackside detectors • Hot Box Detector (HBD) • Wheel Load Impact Detector (WILD) • Trackside Acoustical Detector (TADS) • Sonic Cracked Wheel/Axle Detector (CWAD) • Machine Vision Systems • Magnetic Particle Inspection • Warm Bearing Detection System Optical Geometry Detector Acoustic Bearing Detector (WBDS) Cold Wheel Detector Wheel Impact Load Detector Truck Performance Detector • Hot Wheel Detectors (HWD) Machine vision System Cracked Wheel Detector Truck Hunting Detector • Truck Performance Detectors (TPD) Hot box Detector 9 Hot Wheel Detector

  10. Technology driven risk reduction – 2001 – 2016 Mechanical Derailments Mechanical Derailment Frequency 1 by Year per Million Train Miles 2 3 4 6 5 Technology / Processes Mechanical (‘01-’16) 1 WILD and TPD Initial Installations Bearing related HWD, HBD, ABD -11% Warm Bearing Analysis and Acoustic Bearing Detectors 2 Wheel related WILD -2% WILD increased coverage and process improvements 3 Truck related TPD -5% Cars Out of Storage Process 4 Machine Vision – Coupler Carrier/ Cross Key -6.33% All Mechanical Derailment CAGR 5 6 Comprehensive Mechanical Equipment Health (CMEH) 10

  11. Service Interruptions (2010 – Present) Service Interruptions (SI) by Category 6 Count of SI's (Thousands) 5 4 3 2 1 0 Air hose Brakes Knuckle Bearing UDE Car body Wheel defect Primary Cause 11

  12. Detector Network Overview Failure modes driving continued development Bearings Body Brakes Wheels Trucks 12

  13. Detector Network Overview Bearing Monitoring Technology Description Identifies defects on specific internal Acoustic Bearing Detector (ABD) bearing components (e.g. cup, cone, roller and cage) based on acoustic signature. Measures surface temperature of bearing Hot Bearing Detector (HBD) to identify defects associated to improper installation or internal damage. Rules Engine including bearing Warm Bearing System (WB) temperature trending and composites with ABD / WILD. 13

  14. Detector Network Overview Truck Evaluation Technology Description Identifies worn wheels and truck steering Truck Geometry Detector (TGD) related issues. Can be used to identify wheel manufacturer by plate shape. Measures and inspects truck springs and Spring / Wedge Detector (SWD) friction wedges for worn, broken or missing components. Truck Performance / Hunting Measures forces applied to rail associated Detectors (TPD / THD) to poorly steering trucks or truck hunting. 14

  15. Detector Network Overview Car Body Inspection Technology Description Identifies missing fasteners, broken welds Machine Vision – Undercarriage and damaged structural components. Can Inspection (AISC) be used to detect dragging equipment. Machine Vision – Detects missing fasteners, broken welds Coupler Securement Systems: and damaged structural components and • Coupler Carrier Plate missing cotter keys and / or cross key (CCP) retainers. • Coupler Cross Key (CCK) 15

  16. Detector Network Overview Brake Evaluation Technology Description Determines presence of brake shoe, if the Machine Vision – brakes are applied and measures Brake Shoe Detector (BSD) remaining brake shoe thickness. Measures wheel plate temperature to Hot / Cold Wheel Detectors identify hot or cold wheels due to dragging (HWD / CWD) / sticking or ineffective brakes. Machine Vision – Identifies low air hoses and / or hose Low Air Hose Detector (LAHD) * damage. 16

  17. Detector Network Overview Wheel Inspection Technology Description Measures the energy generated by wheels Cracked Wheel / Axle Detector / axles to determine good from bad (CWAD) (cracked). Machine Vision – Visually identifies wheel surface wear and Wheel Tread Detector (WTD) / or defects. Wheel Impact Load Detector (WILD) Measures vertical wheel force on rail to identify surface defects and out-of-round. Machine Vision – Measures wheel dimensions to identify Wheel Profile Detector (WPD) worn or loose wheels. 17

  18. New Technology – MVS TreadView

  19. New Technology – MVS TreadView

  20. New Technology – MVS TreadView

  21. New Technology – MVS Air Hose Inspection 21

  22. Trends and Future Needs - Mechanical • Enhanced use of existing data • Incorporate all relevant data sources • Condition-Based, Maintenance planning • Composite rules leverage complementary detector data • Optimize detector set points and setout locations • Continued development and use of technologies • Increase use of high speed imaging • Re-purpose / refine existing technologies • Explore use of emerging technologies • Fiber optic • Onboard monitoring • Strategically expand network coverage • Increase detector density • Provides redundancy • Reduces spacing • Facilitates trending 22

  23. Derailment Prevention Vision Next Step 0.70 Derailments per Million Train Miles 1 Level 0.60 2 3 Improvement? 0.50 0.40 4 0.30 5 0.20 0.10 0.00 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 23

  24. BNSF’s Capital Investments $ Billions

  25. 2017 Capital Investments $3.4B

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