Post by pavel on Jan 26, 2016 16:44:39 GMT -6
BNSF Railway Co., the Fort Worth-based railroad owned by Warren Buffett’s Berkshire Hathaway Inc., plans to reduce capital expenditures for the first time in six years as railroads seek to rein in costs amid a freight slump.
The rail carrier said it will spend $4.3 billion, down 26 percent from a record $5.8 billion in 2015, on locomotives, rail cars, track and maintenance. BNSF had increased investment since 2010, which marked a six-year low of $2.7 billion.
The railroad joins Union Pacific Corp., CSX Corp. and Kansas City Southern in ratcheting down spending amid a drop in carloads, led down by coal. Total traffic for large U.S. railroads fell 2.5 percent last year and the declines have continued in the first two weeks of 2016, according to data from the Association of American Railroads.
BNSF’s capital expenditures last year were slightly lower than the company’s original target of $6 billion.
Read more: www.dallasnews.com/business/business-headlines/20160126-fort-worth-s-bnsf-cuts-capital-spending-amid-cargo-slump.ece
The rail carrier said it will spend $4.3 billion, down 26 percent from a record $5.8 billion in 2015, on locomotives, rail cars, track and maintenance. BNSF had increased investment since 2010, which marked a six-year low of $2.7 billion.
The railroad joins Union Pacific Corp., CSX Corp. and Kansas City Southern in ratcheting down spending amid a drop in carloads, led down by coal. Total traffic for large U.S. railroads fell 2.5 percent last year and the declines have continued in the first two weeks of 2016, according to data from the Association of American Railroads.
BNSF’s capital expenditures last year were slightly lower than the company’s original target of $6 billion.
Read more: www.dallasnews.com/business/business-headlines/20160126-fort-worth-s-bnsf-cuts-capital-spending-amid-cargo-slump.ece