2021 Capital Investments
Overcoming Supply Chain Challenges
The ongoing effects of the COVID-19 pandemic contributed to significant global supply chain congestion in 2021. BNSF helped our customers overcome these challenges by taking action to ensure the fluid movement of our freight at key risk points.
For example, at BNSF Logistics Park Chicago, we took two track segments from one of our widespan cranes out of service in order to create an additional stacked container area. This improved our ability to de-ramp inbound trains, allowing for immediate staging of units and giving trucking partners immediate freight access to help circumvent chassis shortages.
To meet increased demand in the greater Memphis region, we temporarily re-opened our Harvard Facility in Marion, Arkansas, for intermodal service.
We also increased lift capacity at our intermodal hubs, adding both equipment and personnel to meet customer demand.
Finally, to handle greater volumes, we augmented our intermodal flatcar capacity, increasing our fleet of 53-foot domestic flatcars by 20%.
Encouraging Economic Development
BNSF is always eager to support our customers who are ready to grow, increase their rail shipments, locate their facilities on or near our network and create community jobs. In 2021, BNSF customers and local economic development organizations invested approximately $1.5 billion to establish or expand rail-served facilities. This impressive investment is expected to create more than 1,700 jobs in local communities.
Highlights include:
The Gatorade Company, Inc. co-located at BNSF Logistics Park Kansas City for warehouse and distribution center capabilities, generating 200 local jobs.
Mark Anthony Brewing invested $450 million to build a new facility in Glendale, Arizona, capable of receiving tank car shipments of glucose and alcohol to produce its White Claw Hard Seltzer, creating 300 local jobs.
Northern Metal Recycling invested $75 million to construct a new facility at the Becker Industrial Park in Becker, Minnesota, to handle both manifest and unit train shipments of scrap metals, creating 90 new jobs.
Maintaining and Expanding our Network
Every year, BNSF invests billions of dollars to maintain our core network and related assets and to expand our capacity to handle our customers’ demand for increased volumes.
One key project continued in 2021 was the expansion of the Emporia subdivision on our Southern Transcon route. The Southern Transcon is our key intermodal route running from Southern California to Chicago, and its Emporia subdivision runs in Kansas between Wellington and Kansas City. This is the last segment of the corridor to have adjacent double-track. The new track improves capacity and the flow of trains on this key section of the Southern Transcon.
On our Northern Corridor, running from the Pacific Northwest to Chicago, a key ongoing project is the Sandpoint Junction Connector in Sandpoint, Idaho. When complete, the project will eliminate a major bottleneck for both freight and Amtrak trains.
Expanding Services
In 2021, BNSF launched a new service option for our intermodal customers, running between California and St. Louis.
Expanding Facilities
To better meet customer demand, BNSF is engaged in multi-year intermodal facility expansion projects in North Texas (Alliance) and Chicago (Cicero). We are also undertaking initiatives to improve intermodal facility efficiency in Southern California (San Bernardino).
Utilizing Technology
BNSF uses technology to make the shipping process simpler, faster and more efficient for our customers.
Recent technology initiatives include:
- Application Programming Interfaces (API) that allow customers door-to-door visibility of their shipments using their existing internal systems.
- RailPass mobile app enhancements that speed up processes for our trucking partners.
- Automated Gate System (AGS) touchless gate pilot program at our South Seattle Intermodal Facility.
- Artificial Intelligence (AI) model for optimizing hostler movements at our Alliance Logistics Park.
- Unmanned Aircraft Systems (UAS) pilot program to perform yard checks at Alliance.
Adjusting for Ida
Hurricane Ida posed one of the major weather event challenges of 2021. BNSF responded quickly to minimize any disruptions to service on our jointly operated single main track between Lafayette and New Orleans in Louisiana. In anticipation of Ida, several trains were re-routed. After the storm, some 2,300 freight cars were redirected to other routes. Fortunately, inspections showed no damage to track, structures and bridges, so once trees and other debris were cleared, we were able to fully restore service on the line within days of the storm.