IMPROVING OUR NETWORK PERFORMANCE. BNSF Service Update

Transcription

1 IMPROVING OUR NETWORK PERFORMANCE BNSF Service Update 1

2 Service Challenges Taking Action Progress

3 Service Challenges Service Challenges

4 Increasing Volumes Support Continued BNSF Growth 11, Units = 10, Units = 10, ,000 10, ,000 Thousands 10,000 9,500 9,000 8,500 8, , , , , , ,000 Millions 7, Units RTMs 4

5 Product Mix Has Changed BNSF TOTAL UNITS 2014 (in thousands) & PERCENT CHANGE FROM 2009 INDUSTRIAL PRODUCTS CONSUMER ( ) PRODUCTS Agricultural Products % Coal 2,270-5% Industrial Products 1, % Consumer Products 5, % +70% +29% Other IP Automotive Building Products International Intermodal Construction Products Petroleum Products Domestic Intermodal Source: BNSF internal data 5

6 Unprecedented Growth in the Northern Region Facilities Completed or Expanded 2010 through Dec. 31, 2014 Traffic into the region since 2009 increased31% Increase in rail traffic out of the 69%region since 2009 Source: BNSF internal data through Dec. 31, 2014 for origins/destinations to/from MT, ND, SD, and MN; excludes potential double-counts on intra-region O/D pairs. 6

7 Taking Action Taking Action 7

8 BNSF Investing to Meet Capacity Demands $ Billions Replacement Capital Other Locomotive Expansion PTC Equipment $5.5 $6B $2.6 $3.1 $3.8 $3.4 $3.4 $3.3 $3.6 $2.7 $3.6 $4.0 $2.3 $1.9 $2.1 $ P 8

9 BNSF Investments Completed in 2014 CAPACITY $3,643M Maintenance Capital: $2,615M Expansion Capital: $1,028M RECORD $5.5B INVESTED LOCOMOTIVES 612 *includes long-term leases and acquisitions RAILCARS 7,500 * PEOPLE +7,000 DOUBLE TRACK 82 MILES 9 * Includes acquired and renewed

10 Expanded Capacity Projects in the Northern Region Lakeside Sub 17 new miles of double track in service, 1 new siding Glasgow Sub 55 new miles of double track in service Devils Lake Sub 6 CTC islands Hillsboro Sub 2 new sidings, 2 siding extensions Forsyth Sub 2 new siding, 4 siding extensions Fallbridge Sub 2 new sidings Dickinson Sub 1 new siding, 3 siding extensions Jamestown Sub 1 new siding, CTC signaling* * Projects Underway 10

11 Record Investment Continues in 2015 to Meet Capacity Demands BNSF s 2015 Capital Commitment $6B 4% 23% 48% 25% Core Network and Related Assets Expansion and Efficiency $2.9 billion Core Network & Related Assets $1.4 billion Loco, Freight Car, & Other Equip $1.5 billion Expansion & Efficiency $200 million PTC Locomotive, Freight Car, and Other Equip PTC 11 11

12 BNSF s 2015 Capacity Projects

13 Continuing to Expand in the North Region

14 Progress Progress 14

15 With Added Capacity Comes Improved Performance Percent BNSF Train Speeds (Indexed Miles per Hour to June 2014*) Difference from June Week MAVG * - 4-week average of 5/31/14 through 6/27/14 Source: AAR through January 9th,

16 More Locomotives Increases Ability to Meet Demand for Power Total Trains Holding for Power Source: BNSF Internal Data 16

17 Continuous Improvement in Safety and Reliability Through Maintenance 25 BNSF S RAIL-RELATED DERAILMENTS ARE AT ALL-TIME BEST LEVELS 0.12 DETECTION* OF RAIL AND WELD DEFECTS CONTINUE TO DECLINE Rail Joint Other Per MTM *Includes Detected and Service Failed: Detail Fracture, Engine Burn Fracture, Transverse Fissure, Compound Fissure, Horizontal Split Head, Vertical Split Head, Crushed Head, Shelled/Spalled/Corrugated, Worn Rail, Piped Rail, Split Web, Broken Base, Welded Engine Burn Fracture, Boutet Weld, Orgotherm Weld, Boutet Wide-Gap, Orgotherm Wide-Gap, Thermite Weld, Pressure Gas Weld, Pressure Electric Weld & Ordinary Break. 17

18 Summary by Business Unit Improved service across the entire network. AG COAL CP IP 18

19 Shuttle Fleet Productivity is Becoming More Productive PNW SHUTTLE TPMs RECOVERED FROM A LOW OF 1.9 IN DEC 2013 TO A HIGH OF 2.5 IN DEC Avg Avg Avg DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Source: BNSF internal data. 19

20 Record Ag Volumes Handled From Northern-Tier States 550,000 VOLUMES TO/FROM ND/SD/MT/MN 500, , , , , , , Source: BNSF internal data for origins/destinations to/from North Dakota, South Dakota, Montana and Minnesota, excluding intrastate and interstate volume within above mentioned states. 20

21 Ag Velocity Improving 200 AG FLEET MILES PER DAY INCREASED 41% FROM JUNE 2014 TO JANUARY JUN JUL AUG SEP OCT NOV DEC JAN YR YR Source: BNSF internal data 21

22 Coal Performance AVERAGE DAILY LOADED TONS 830, , , , , , , , , ,000 Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Source: BNSF internal data 22

23 Coal Velocity Has Improved BNSF WEEKLY AVERAGE COAL TRAIN SPEED IN MILES PER HOUR Jun Jul Aug Sep Oct Nov Dec Jan BNSF Coal Train Speed (MPH) Source: AAR data through Jan. 30,

24 Coal Stockpiles /9/2014 CRITICAL COAL STOCKPILE CUSTOMERS NET INVENTORY DAYS GAIN / LOSS Alliance Bridger Glendive Net Days Gain / Loss /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 9/5/2014 9/12/2014 9/19/2014 9/26/ /3/ /10/ /17/ /24/ /31/ /7/ /14/ /21/ /28/ /5/ /12/ /19/ /26/2014 1/2/2015 1/9/2015 1/16/2015 1/23/2015 1/30/2015 2/6/ Source: BNSF internal data through Feb. 6, Watch List customers are defined as under 20 days of stockpile as self-reported. 24

25 BNSF Intermodal Performance Improving ALL INTERMODAL BNSF WEEKLY OTP & AVG TRANSIT DAYS 5 Avg. Transit Days OTP % 100% Average Transit Days % 80% 70% 60% 50% 40% 30% % % 3 6/1/2014 6/8/2014 6/15/2014 6/22/2014 6/29/2014 7/6/2014 7/13/2014 7/20/2014 7/27/14 8/3/14 8/10/14 8/17/14 8/24/14 8/31/14 9/7/14 9/14/14 9/21/14 9/28/14 10/5/14 10/12/14 10/19/14 10/26/14 11/2/14 11/9/14 11/16/14 11/23/14 11/30/14 12/7/14 12/14/14 12/21/14 12/28/14 1/4/15 1/11/15 1/18/15 1/25/15 0% Source: ROG Interactive, OTP includes grace, Loads only 25

26 Intermodal Velocity Has Improved BNSF WEEKLY AVERAGE INTERMODAL TRAIN SPEED IN MILES PER HOUR Jun Jul Aug Sep Oct Nov Dec Jan Source: AAR data through Jan. 30,

27 Terminal Dwell Has Decreased BNSF WEEKLY AVERAGE TERMINAL DWELL (HOURS) Jun Jul Aug Sep Oct Nov Dec Jan BNSF Terminal Dwell (All types) Source: AAR data through Jan. 30,

28 Industrial Products Velocity Has Improved 23 BNSF MANIFEST AVERAGE TRAIN SPEED IN MILES PER HOUR Jun Jul Aug Sep Oct Nov Dec Jan BNSF Manifest Train Speed (MPH) Source: AAR data through Jan. 30,

29 Service Expectations Looking Forward North Region Improved performance compared to 2014, particularly Fargo west to the Pacific Northwest ports Gradual velocity improvement along key route between Twin Cities and Chicago; additional improvement as new capacity installed towards end of 4th quarter Central Region Improved reliability and consistency compared to 2014 Additional capacity to address congestion and improve the throughput into/out of Denver South Region Improved performance and compared to 2014 Expansion projects targeting last remaining bottlenecks on Southern Transcon; only seven miles of single track will remain on the Southern Transcon going into

30 After safety, nothing is more important than improving service and velocity on our network. Your business is important to BNSF. We re growing to serve you now and in the future.

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