BNSF SERVICE UPDATE MATT JONES REGIONAL DIRECTOR PUBLIC AFFAIRS - - PowerPoint PPT Presentation

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BNSF SERVICE UPDATE MATT JONES REGIONAL DIRECTOR PUBLIC AFFAIRS - - PowerPoint PPT Presentation

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BNSF SERVICE UPDATE MATT JONES REGIONAL DIRECTOR PUBLIC AFFAIRS 12/04/2014 1 BNSF Saf BNSF Safety ety Results esults EMPLOYEE RAIL EQUIPMENT REPORTABLE PERSONAL INJURY INCIDENTS REPORTABLE DERAILMENT PER 200,000 EMPLOYEE HOURS

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SLIDE 1

BNSF SERVICE UPDATE

MATT JONES REGIONAL DIRECTOR

PUBLIC AFFAIRS

12/04/2014 1
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SLIDE 2

BNSF BNSF Saf Safety ety Results esults

Source: FRA Safety Data, through June 30, 2014

1.77 1.30 1.11 1.10 0.99

2010 2011 2012 2013 1H14

2.64 2.72 2.19 2.07 1.92

2010 2011 2012 2013 1H14

1.76 1.65 1.58 1.69 1.56

2010 2011 2012 2013 1H14

EMPLOYEE

REPORTABLE PERSONAL INJURY INCIDENTS PER 200,000 EMPLOYEE HOURS

RAIL EQUIPMENT

REPORTABLE DERAILMENT INCIDENTS PER MILLION TRAIN MILES

PUBLIC

CROSSING ACCIDENTS PER MILLION TRAIN MILES

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SLIDE 3 12/9/2014 3
  • 32,500 route miles in 28 states

and two Canadian provinces

  • 43,000 employees
  • Over 7,000 locomotives
  • Over 100,000 freight cars owned or leased
  • 13,000 bridges and 89 tunnels
  • 1,600 freight trains per day

32,500 route miles in 28 states and two Canadian provinces.

BN BNSF SF Ov Over erview view

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SLIDE 4

BNSF BNSF Volume

  • lume – YTD

YTD 2014 2014

Consumer Products 3,759 +0.6% Industrial Products 1,479 +5.4% Ag 712 +0.6% Coal 1,678 +0.7%

4

Total BNSF Volume 7,628 +1.5% YTD 2014 through Sept. 30, 2014 Total units and % change from YTD 2013 In Thousands

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SLIDE 5

5

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SLIDE 6

BNSF BNSF in in Mon Monta tana na

  • BNSF employs more than 2,200 in MT

and has plans to hire 450 new employees in 2014

  • BNSF has invested more than $470

million in MT for capacity expansion and maintenance (2010-2013)

  • New or expanded BNSF served

facilities represent investments worth more than $200 million creating more than 250 jobs in MT (2011-2013) For more than a century, BNSF Railway has played an important role in Montana’s economy

6
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SLIDE 7

BNSF BNSF 20 2013 13 Volume

  • lume – Mon

Monta tana na

342,973 Total Carloads

7

In all, BNSF moves nearly 2 million

carloads of freight in Montana annually

Products Shipped from Montana Products Shipped to Montana 342,743 Carloads 33,936 Carloads

Consumer Products Coal Industrial Products Agricultural Products

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SLIDE 8

Experiencing Volume Growth

Experiencing Volume Growth

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SLIDE 9

BNSF BNSF Weekl eekly y Volumes

  • lumes

Cont Continue inue to to Gr Grow

Fourteen times this year, BNSF handled over 200,000 units/week

120 125 130 135 140 145 150 155 160 165 170 175 180 185 190 195 200 205 210 215 220 225 230 235 1 3 5 7 9 1113151719212325272931333537394143 2 4 6 8 1012141618202224262830323436384042 1 3 5 7 9 1113151719212325272931333537394143
  • --- 2013 ----
  • --- 2012 ----
  • --- 2014 ----

Week

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SLIDE 10

Ec Econom

  • nomic

ic De Developm elopment an ent and Rail Gr Rail Growth wth in the Nor in the North Dak th Dakota

  • ta Region

gion

2010 through Aug. 31, 2014 Forecast Sept. 1 – Dec. 31, 2014

114%

Traffic into North Dakota since 2009 increased Increase in rail traffic out of North Dakota since 2009

191%

North Dakota

Unparalleled Growth

ND

2009-2014 Jan. – Sept. Actuals
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SLIDE 11

More Growth, More Challenges

Historic volumes affect all shipments. COAL AG IP CP

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SLIDE 12

77%

Decrease in U.S. Past Dues Since March 2014 High

87%

Coal Coal Tons

  • ns Deliv

Deliver ered ed Year ear-to to-Da Date te

BNSF CUMULATIVE COAL DELIVERIES BY MONTH

Tons (in millions) 50 100 150 200 250 Jan Feb Mar Apr May Jun Jul Aug Sep Oct

2012 2013 2014

As of Oct. 31, 2014
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SLIDE 13

Coal Coal Ne Netw twor

  • rk

k Plannin Planning g Pr Proces

  • cess
  • Coal movement is part of the

network planning process.

  • Coal tons delivered is a function of

set productivity, which is a function

  • f network productivity. An

increased number of sets results in velocity declines and less coal delivered.

Customer review and escalation:

  • Criticality of plant to reliability
  • Contractual obligations
  • Operating parameters

Critical customers under watch:

  • Under or at 10-day stockpile
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SLIDE 14

Ag Ag Volum

  • lume

e to/f to/from

  • m Nor
  • rth

th Da Dakota

  • ta,

, Sou South Dak th Dakota

  • ta,

, Montana and Minnesota Montana and Minnesota

14

200,000 250,000 300,000 350,000 400,000 450,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: BNSF internal data YTD through October for origins/destinations to/from North Dakota, South Dakota, Montana and Minnesota and excludes intrastate and interstate volume within above mentioned states.

2014 YTD is on pace for record volume.

Ag V Ag Volume

  • lume to/f

to/from

  • m Nor

North th Dak Dakota

  • ta,

, So South uth Dak Dakota

  • ta,

, Mon Montan tana an a and d Mi Minn nneso esota ta

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SLIDE 15 12/9/2014 15

Secondar Secondary y Mar Market et Shutt Shuttle le Freight eight Value alue October October 2014 2014

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SLIDE 16

Industrial Industrial Pr Products

  • ducts Volumes
  • lumes

Gr Growing wing

  • Up nearly 6% YTD
  • Driven by energy-related

commodities, crude oil and frac sand

  • Cements and aggregates

up 7% due to heavy construction Construction Products

+3.4%

Petroleum Products

+11.8%

Chemicals & Plastics 0.0%

Building Products

+3.7%

Food & Beverage

  • 3.0%

Construction Products

+4.4%

Petroleum Products

+12.1%

Chemicals & Plastics 0.0%

Building Products

+3.3%

2014 IP VOLUME, % CHANGE VS. 2013

Source: BNSF internal data year-to-date through Oct. 30, 2014
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SLIDE 17

Incr Increas easing ing BNS BNSF F Volumes

  • lumes Acr

Acros

  • ss

s Commodit Commodities ies Im Impacts pacts Ser Service vice Acr Across

  • ss

Commo Commodities dities

Source: BNSF internal data year-to-date through Oct. 31, 2014

24,128 4,522 64,756

Coal Ag Crude

GROWTH YEAR TO DATE OVER 2013 IN COAL, AG AND CRUDE SHIPMENTS

Measured in Units Handled

  • 15%
  • 20%
  • 22%

Coal Ag Crude

SLOWER TRAIN VELOCITY YEAR OVER YEAR HAS BEEN FELT ACROSS COMMODITIES

Miles Per Day Change for Coal and Crude (YTD October 2014 vs. YTD October 2013) Shuttle Trips Per Month Change for Agriculture (YTD October 2014 vs. YTD October 2013)

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SLIDE 18

Moving Forward for Tomorrow

Moving Forward for Tomorrow

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SLIDE 19

$ Billions

$2.3 $1.9 $2.1 $2.0 $2.6 $3.1 $3.8 $3.4 $3.4 $3.3 $3.6 $2.7 $4.0 $3.6 $5.5

BNSF BNSF is is In Investing esting in in Gr Growth wth

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SLIDE 20

Expanding Expanding Infr Infrastr astructur ucture

Lakeside Sub

17 new miles of double track, 1 new siding

Forsyth Sub

2 new sidings, 4 siding extensions

Devils Lake Sub

6 CTC islands

Dickinson Sub

1 new siding, 3 siding extensions

Glasgow Sub

55 new miles of double track, additional 8 miles in Nov.

Hillsboro Sub

2 new sidings, 2 siding extensions

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SLIDE 21 12/9/2014 21

2014 Montana Ca 2014 Montana Capital pital Plan Plan

Expansion projects include:

  • Extending track lengths at train yards in Glendive and Forsyth,

Mont.

  • Constructing a siding between Marsh and Terry, Mont.
  • Extending train sidings at Beaver Hill, Blatchford, Hodges,

Hysham and Rosebud, Mont.

  • Upgrading to CTC and extending a train siding at Terry, Mont.

Maintenance projects include:

  • Surfacing and undercutting of more than 900 miles of track.
  • Replacing about 60 miles of rail.
  • Replacing more than 145,000 ties
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SLIDE 22

2014 2014 Long Long-Ter erm m Act Actions ions to A to Add d Ca Capacity pacity (YTD (YTD)

As of Oct. 31, 2014. *Includes long-term leases and acquisitions

2,958 2,601 574* $2,181 $760

$1,050 $2,500 600 >2,500 3,500

85% +100% 96% 87% 72%

Yearly Goals: Actuals: TY&E Hiring Engineering & Mech Hiring Locomotives Delivered Maintenance Capital

(Millions)

Expansion Capital

(Millions)
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SLIDE 23

Ser Service vice Design: Design: Maximizing Maximizing Ef Efficienc ficiency y and and Velocity elocity

Problem:

Track capacity issues on the Fallbridge subdivision and increased traffic

Solution:

New operation route

Result:

Additional capacity provided; 12% increase in total trains operated YTD 2014 vs. YTD 2013

Example: PNW Triangle

As of Sept. 8, 2014
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SLIDE 24 Source: AAR Train Speed and Dwell; CS54 units as of week ending Aug. 29, 2014. Indexed to Feb. 7, 2014.

BNSF BNSF Perf erfor

  • rmance

mance

90 95 100 105 110 115

2/7/2014 2/14/2014 2/21/2014 2/28/2014 3/7/2014 3/14/2014 3/21/2014 3/28/2014 4/4/2014 4/11/2014 4/18/2014 4/25/2014 5/2/2014 5/9/2014 5/16/2014 5/23/2014 5/30/2014 6/6/2014 6/13/2014 6/20/2014 6/27/2014 7/4/2014 7/11/2014 7/18/2014 7/25/2014 8/1/2014 8/8/2014 8/15/2014 8/22/2014 8/29/2014 Q

BNSF Weekly Volume (Units) Train Speed (MPH) Dwell (Hours)

TERMINAL DWELL IS STEADILY DECLINING WHILE TRAIN SPEED REMAINS CONSTANT WITH INCREASING VOLUMES

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SLIDE 25 Service Challenges

Continu Continuing to ing to In Invest in est in Our Railr Our Railroa

  • ad in

d in 20 2015 15

12/9/2014

$6B

Total Planned Capital Expenditures for 2015

$2.9B

Renewal of Assets and Maintenance

$1.5B

$500M

Expansion in the Northern Region

Moving Forward for Tomorrow

Expansion Projects

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SLIDE 26

26

BNSF BNSF Economic Economic De Development elopment

  • Help customers and communities establish new rail-served

facilities

  • Three-phase process that involves coordinated efforts with you

and our Economic Development team

  • BNSF team will help guide you through step-by-step
  • Phase I - Gather information
  • Phase II - Develop infrastructure and operating plan
  • Phase III - Construction and send/receive your first shipments

More information is available at http://www.bnsf.com/customers/support-services/new-or-expanded- customer-sites

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SLIDE 27 27

Bison Bison Rail Rail – Poplar

  • plar,

, MT MT

BNSF Mainline to North BNSF Siding BNSF Track 1702 A&S Track 1704 A&S Track 1703

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SLIDE 28

Tongue Riv

  • ngue River

er Railr Railroad

  • ad
  • Expected to serve Otter

Creek Coal Mine

  • $1 Billion investment

(mine and rail projects)

  • 2600 construction jobs
  • 1700 permanent jobs
  • Permitting ongoing with

the STB

  • Approx. 4 trains per day
  • Serving domestic and

foreign demand

Preferred Tongue River Railroad Alignment

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SLIDE 29 12/9/2014 29
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SLIDE 30

Gr Grea eat Nor t Norther thern n Cor Corridor ridor

Ov Over erview view

30
  • A primary east/west route that serves 8 States and 3 Canadian Provinces
  • Over 35 million people and nearly 12.5 million jobs - $1.45T GDP
  • Over 3 million units moved on the Corridor in 2013
  • The Corridor includes BNSF’s rail route, first/last mile connections, border

crossings, freight terminals, ports, and critical roadways

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SLIDE 31

Conc Conclusions lusions

31
  • Forecast for more people and more freight is strong
  • Rail volumes will continue to grow due to rail’s

environmental and economic advantage

  • BNSF is investing to meet growing demand
  • Infrastructure investment, project streamlining and
  • perational improvements will benefit all commodities
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SLIDE 32 12/9/2014 32

Questions Questions