WEDA 2018 Fall Conference Eric Pitcher REGIONAL MANAGER, ECONOMIC DEVELOPMENT SEPTEMBER 28, 2018
BNSF Railway BNSF Railway is committed to serving our customers today and investing to accommodate their growth tomorrow. 28 ~400 32,500 States Served +3 Canadian Provinces Route Miles Transload Facilities on Network 25 ~8,000 40+ Intermodal Facilities Locomotives Ports Served 41,000 ~10 Million $60+ Billion Employees Carloads Shipped in 2017 Invested Since 2000 2 2
Our Network 3
What We Carried in First Half 2018 Total units and % change from 2017 In Thousands Agricultural Products 609 +7.8% 899 YTD 2018 Coal TOTAL VOLUME -1.4% 5,270 2,798 +5.2% Consumer 4 Products +5.4% 964 Industrial Products +9.8%
We’re On Your Side Count on BNSF Railway’s Economic Development Team to Help You: Select a site for a new facility Expand an existing site Evaluate transportation options Improve transportation infrastructure Establish rail service Navigate the process 5
We’re Here To Help BNSF’s Economic Development team will guide you through: Real estate Property Construction Commencement market research acquisition of shipping and planning 6
The BNSF Economic Development Process 7
Process: Evaluate 8
Process: Evaluate 9
Process: Prepare 10
Process: Build + Ship 11
Common BNSF Agreements Lease of Land for New Industry Track Agreement Lease for Land and Track Track Construction (ITA) (LLT) (Construction Lease or CL) Required prior to a customer Allows customer to enter BNSF Outlines ownership, operation and receiving service on a BNSF-owned property to construct and / or liability maintenance responsibilities track and addresses ownership, maintain track. relative to a private track when maintenance responsibility, BNSF Railway crews or equipment permitted uses and liability. are operating over customer-owned track. Locomotive Use Leasing Agreement Contractor’s Right of Entry (CROE) (LULA) Provides for a private contractor who is Deals with the specificity of use and insurance engaged by a customer to enter BNSF requirements when using BNSF locomotives to load / unload commodities. leased property to construct / maintain track or other related activities. 12
Our Experience Benefits You The Economic Development professionals at BNSF: Support rail-served building or expansion projects in communities across the network Have over 250 years of combined experience Help more than 100 shippers grow their business each year 13
BNSF Economic Development Team AVP – Colby Tanner Reeve Co-Location Geary Director – Cary Hutchings NORTH Justin Pearson Director – Open Eric Goodman Jon Arita SOUTH Lindsey Director – David Polzin Eric Van Meter Pitcher Strategic Programs John Rider Director – Darrell Coffey Port Business Development Jennifer Cherie Gordon Director – Don Karls Fitzgerald Lacy Kreger Director – Sam Galltin Michelle Pagel Kevin Leddy Peiter Hjertstedt Janet Black Ean Johnson Unit Train Projects Director – Pat Thompson Stan Ujka - Sand/ Crude James O’Donley John Karl - Wind/Pipe/NGLs Opportunity Management Mike Ray - AG North Director – Pat Thompson Mike Martucci - AG South Josh Stewart George Pacocha - Coal/Aggregate Shauna Stagner 14
Economic Development Strategic Program Premier Parks, Sites & Transloads Program Logistics Logistics Private Parks & Transload Parks Centers Site Certification Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network 15
Economic Development Strategic Program 16
Logistics Park Overview Logistics Park Kansas City Premier Parks, Sites & Transloads Program Private Logistics Logistics Parks & Site Transload Parks Centers Certification Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network Logistics Park Description • Intermodal Service business park focus Value Proposition but Direct Rail available • Consumer, packaged, 3PL & export • Maximize intermodal service • focused tenants Minimize inbound dray, maximize truck-turns-per-day • Strong developer partnerships • Reduce emissions, fuel consumption • Private Capital & Public Investment • Combine Direct Rail w/ Intermodal • Modal Connectivity • Heavyweight capabilities 17
Logistics Center Overview Logistics Center Sweetwater Premier Parks, Sites & Transloads Program Private Logistics Logistics Parks & Site Transload Parks Centers Certification Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network Logistics Center Description • Direct rail served focus • Multi-commodity, multi-customer Benefits • Carload and/or unit train • BNSF controlling interest • Create product in a site deficient market(s) • BNSF capital drives development of • Focus on end-user markets business park • Public & Private Partnership investment • Modal Connectivity • Aggregate demand for operational and service improvements 18
Private Parks & Site Certification Overview Premier Parks, Sites & Transloads Program Private Logistics Logistics Transload Parks & Site Parks Centers Certification Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network Description • Direct rail service focus • Multi-commodity and customer • Private business park developments Benefits • Partnerships with economic development • organizations, developers and communities Reduce development time • • Creating a robust, visible site inventory on Increase speed to market • our network Reduce upfront development risk of rail-served industrial sites • • Sites locations are reviewed to ensure Increase awareness of sites accurate, reliable data 19
Private Parks & Site Certification Overview PROGRAM GOALS CERTIFIED SITE PROGRAM : A pilot program launched in 2015 to develop a collection of prospective rail-served industrial sites along the BNSF network. • Reduce development time, increase speed to market, reduce upfront development risk for customers • Foster development of business parks and attract capital investment along BNSF Right of Way • Create product inventory of available, rail-ready industrial sites for internal and external stakeholders • Lower upfront development risk for community and industry • Guide customers to pre-approved, choice locations along BNSF network • Strengthen political and community relationships • Increase wins for BNSF Railway 20
BNSF Certified Sites 21
Types of Transloading Facilities 22
Transload: Benefits Truck-like services with Preferred service provider economies of rail network (Premier) Value-added services ; Facilities capable of handling multiple inventory management commodities storage and packaging Unbundled pricing helps Unlimited access to maximize savings your customers 23
Transload: Facts BNSF serves or has access to more BNSF handled 103,980 carloads than 391 transloading facilities through transloading facilities in 2016 • Nearly 150 are BNSF premier transloaders 24
1.888.428.BNSF • www.bnsf.com/ rail-development 25
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