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BNSF 2006 Capital Program to Expand Washington Rail Capacity

Posted on: Friday, 31 March 2006, 15:00 CST

BNSF Railway Company (BNSF), a subsidiary of Burlington Northern Santa Fe Corporation (NYSE: BNI), plans to invest an estimated $21.4 million from its 2006 capital program on rail capacity enhancement and expansion projects alone in Washington. The capacity expansion investments are in addition to the significant 2006 capital maintenance investments BNSF will make in Washington. In 2005 BNSF invested an estimated $102 million for both capital maintenance and capital expansion in Washington.

BNSF's 2006 capacity enhancement projects in Washington include $10.6 million to improve terminal capacity at BNSF's Seattle International Gateway Intermodal facility, $9.4 million to add a new siding near Lyle along BNSF's Fallbridge subdivision, and $1.4 million in support of the Seattle FAST project to enhance port access and increase freight mobility on BNSF's Scenic subdivision. In addition, about $550 million of BNSF's 2006 capital program will be used to acquire 310 low-emissions locomotives, many of which will operate through Washington. The 2006 capacity enhancements are part of the 10 percent increase BNSF announced in January to its 2006 capital program to $2.4 billion.

Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer, said in a letter to Washington Governor Christine Gregoire outlining BNSF's 2006 capital plans that, "BNSF is proud of its ability to provide transportation services to the businesses and communities we serve in Washington, and we look forward to continuing to grow our capacity in a way that facilitates growth for the Washington economy."

BNSF has increased its capital budget for the second year in a row as a result of increased returns on its capital investments and continued increases in demand for freight rail transportation.

Rose said that as long as BNSF's return on capital investment and freight rail demand continue to increase, BNSF is committed to expanding capacity and improving customer service while keeping its physical plant strong.

Railroads in the United States move more freight for less money and with less negative impact on the environment than any other surface transportation system. However, railroads are America's most capital-intensive industry, and even with BNSF's improved returns, the need for expanded rail capacity is expected to outpace the ability of private railroads to invest enough capital.

In order to encourage increased use of the economic, energy and environmental benefits of the U.S. rail network, BNSF is supporting creation of a federal infrastructure tax credit to stimulate additional private investment in rail infrastructure.

A subsidiary of Burlington Northern Santa Fe Corporation (NYSE: BNI), BNSF Railway Company operates one of the largest railroad networks in North America, with about 32,000-route-miles in 28 states and two Canadian provinces. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other North American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

 Contact: Gus Melonas (206) 625-6220  

SOURCE: BNSF Railway Company

Source: MARKET WIRE

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