Berkshire's BNSF Railway Sets $3.57 Billion Capital Investment Plan

   By Colin Kellaher 
 

Berkshire Hathaway Inc.'s (BRKA, BRKB) BNSF Railway Co. unit on Wednesday unveiled a $3.57 billion capital investment plan for 2019, with the bulk of the spending aimed at maintaining its network.

The Fort Worth, Texas, railroad said it will spend about $2.47 billion this year on maintenance projects, including roughly 12,000 miles of track surfacing and/or undercutting work, the replacement of 535 miles of rail, and nearly 2.3 million rail ties.

BNSF said it will spend another $760 million on expansion and efficiency projects. The railroad plans to expands its routes that connect southern California with Chicago and the Pacific Northwest to Upper Midwest.

BNSF said it has earmarked about $340 million to buy freight cars, locomotives, and other equipment.

The railroad, which operates about 32,500 route miles of track in 28 states, spent about $3.4 billion on capital projects last year.

Berkshire bought BNSF in 2010, paying $26 billion for the 77% that it didn't already own in one of the biggest deals ever for billionaire Warren Buffett's investment vehicle.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

February 13, 2019 12:36 ET (17:36 GMT)

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