Railroads loosening purse strings for m/w: as traffic increases, railroads are spending more and more money on the infrastructure to maintain and to build more capacity into the system

Railway Track and Structures, Jan, 2006

The spending outlook for all the railroads responding to the RT & S annual survey are all trending in the same direction: up. All seven Class 1 railroads responded, as well as Amtrak and Montana Rail Link and the Florida East Coast, the latter two representing the regional/shortline community.

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Increasing traffic has pounded the infrastructure and created a tremendous capacity demand. Railroads will be spending many billions in 2006 to keep up with maintenance and to increase infrastructure capacity.

Amtrak

In 2006, Amtrak plans to spend $658 million, up from $530 million in 2005. On the C & S side, Amtrak is increasing expenditures from $78 million to $92 million.

This year's programs include 9,400 net tons of new rail and 800 net tons of relay rail, compared to 6,500 and 2,200 this past year. Amtrak plans to install 195,000 ties, 65,000 wood and 130,000 concrete. That compares to 205,000 ties in 2005, 160,000 of them concrete and 45,000 wood.

In 2005, Amtrak surfaced 700 track miles and plans to increase surfacing to 800 track miles this year.

Amtrak's largest construction project for 2006 will be the replacement of the Thames River movable bridge in Connecticut. The existing bridge was built between 1917 and 1919. The total cost is estimated at $76 million. Work will be done over three years, with $23 million set for 2006.

BNSF

BNSF is increasing its engineering m/w capital and operating budget from $1.582 billion in 2005 to $1.681 billion this year. The signal budget will rise from $166 million to $172 million.

This year, the railroad plans to lay 155,390 net tons of new rail and 29, 522 net tons of relay rail, up from 148,064 new and 23,948 relay in 2005. Total ties for the year will be 3,140,982, down slightly from 3,391,007 this past year. That breaks down to 2,811,908 new wood ties,

308,816 new concrete ties, 183 new steel ties, 14,000 new plastic ties and 6,075 relay ties. In 2005, BNSF's ties total broke down to 2,846,448 new wood, 506,506 new concrete, 981 new steel, 16,162 new plastic and 20,910 relay.

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BNSF plans to surface 14,256 miles in 2006, up from 12,970 miles in 2005.

Major construction projects for 2006 include 18.8 track miles of triple track on the Wyoming coal route and 40 miles of double track on the Southern Transcon (Chicago-Los Angeles).

CN

CN plans to spend more than C$1.5 billion in capital programs in 2006, an increase of nine percent over 2005 spending. The railroad will spend about C$800 million on infrastructure, replacing rail, ties, ballast and other track material and upgrading bridges and signaling systems. CN will also spend close to C$250 million on network productivity initiatives and strategic projects, including siding extensions in Western Canada, investments in the company's Prince Rupert, B.C., corridor and the reconfiguration of Johnston Yard in Memphis, Tenn.

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Canadian Pacific Railway

In 2006, Canadian Pacific Railway plans to spend C$718 million for m/w capital and operating expenses, up from C$680 million this past year. The C & S budget is scheduled to rise to C$68 million from C$63 million.

This year, CPR plans to install 71,946 net tons of new rail and 32,218 net tons of relay rail. That's an increase from 68,076 net tons of new rail and 29,553 net tons of relay rail in 2005.

The 2006 crosstie total should be 951,043, broken down to 918,193 new wood, 2,250 new steel and 30,600 relay. The 2005 total was 990,641, including 949,963 new wood and 750 new steel and 39,928 relay.

CPR plans to surface 2,500 miles this year, the same amount it surfaced this past year.

Major projects on CPR this year include 75 miles of out-of-face rail renewal between Medicine Hat and Lethbridge, Alta., and the replacement of a 400-foot double-track bridge over BNSF in Minneapolis.

CSX Transportation

Spending for m/w capital and operating on CSX Transportation in 2006 is scheduled to increase to $1.178 billion from $861 million this past year. C & S numbers will rise to $248 million from $224 million.

CSXT plans to lay 90,801 net tons of new rail and 11,843 net tons of relay rail this year. That's up substantially from 76,380 net tons of new rail and 550 net tons of relay rail in 2005.

Crosstie totals jump to three million this year, all wood. This past year, the railroad installed 2,042,000 million ties, including 1,991,000 wood and 51,000 concrete.

Track surfacing for 2006 is set at 5,839 track miles, up from 3,840 in 2005.

In 2006, CSXT plans to work on several major projects that will expand the railroad's capacity.

Florida East Coast

Florida East Coast's 2006 m/w capital and operating budget will be $22.945 million, up from $21.558 million this past year. C & S should total $5.005 this year, an increase from $4.980 in 2005.

FEC plans to install 1,297 net tons of new rail and 917.2 tons of relay rail in 2006. In 2005, the railroad installed 1,463 net tons of new rail and 1,088 net tons of relay rail.

Crossties for this year will total 28,350, including 17,000 new wood ties, 10,000 new concrete ties, 1,200 new steel ties and 150 plastic ties. The 2005 crosstie numbers were 20,998 new wood, 5,400 new concrete, 600 new steel and 350 plastic.