(BRK.A), (BRK.B)
Speeds for BNSF Railway’s freight service moving through New Mexico will receive a boost thanks to a $21.3 million upgrade of 158-miles of track between Pierceville, Kansas, and Las Animas, New Mexico.
The upgrades are needed to provide speeds up to 79 miles-per-hour for Amtrak’s Southwest Chief service that runs daily between Chicago and Los Angeles. The Southwest Chief carried 352,000 passengers in fiscal year 2014.
Funding for the improvements come from a $12.5 million Transportation Investment Generating Economic Recovery grant, with an additional $9.3 million in state, local and private funds. BNSF is contributing $2 million of the private funds.
Passenger Service at Risk
Deteriorating track conditions had put Amtrak’s Southwest Chief in jeopardy, and the Colorado legislature in 2013 created the Southwest Chief Commission to negotiate with Kansas and New Mexico on saving the route.
Faster Passenger Service Means Faster Freight Too
Track improvements to speed up passenger service, and in some cases to save routes running on substandard track, brings significant benefits nation-wide to freight railroads such as BNSF.
The Southwest Chief’s route is not the only route being upgraded. High-Speed Intercity Passenger Rail funds currently being invested to bring higher speed passenger rail service in the Pacific Northwest will also bring benefits to BNSF’s freight hauling capacity.
Under the American Recovery and Reinvestment Act (ARRA), a 467-mile rail corridor between Eugene, Oregon and Vancouver, B.C., is being upgraded in order to bring improved passenger rail service for Amtrak’s Cascades service.
In the Pacific Northwest, the improvements include new bypass tracks to add capacity, upgrades to warning signal systems, safety-related improvements, and multiple upgrades to existing track. A new rail bridge will cross the Coweeman River near Kelso, Washington, and there will be upgrades to wayside signal systems components at all control points, sidings and turnouts between the U.S./Canada border and Vancouver, Washington.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.