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Burlington Northern Santa Fe 1998/1999 Motive Power Annual by Shippen & Shine HC
Burlington Northern Santa Fe 1998/1999 Motive Power Annual by Bill Shippen & Joe Shine
Hard Cover
160 pages
Copyright 1999?
CONTENTS
Acknowledgements 2
Introduction 4
BNSF 1998-1999 6
BNSF's Theyar Subdivision Maintenance Blitz 12
Running Extra - 1998 14
BNSF 1998/1999 Motive Power 28
BNSF - North to South in Montana by Dale Jones 32
BNSF's Franklin Canyon by Jamie Miller & Eric Blasko 56
BNSF - Arizona's Nelson Tunnel by Al Chione 62
BNSF Motive Power 66
GP60M 66
GP60B 67
Dash 8-40BW 68
Dash 9-44CW 69
Dash 8-40CW 74
Dash 9-44CW 78
MK1200G 82
GP-7 82
GP-10 83
SWBLW 84
GP315-1 84
GP28M 85
GP28P 86
GP-9 87
GP-9B 89
GP2090
GP3891
GP38-2 94
GP3096
GP3598
GP39-2 99
GP39M 101
GP38E104
GP39V 105
GP40M 106
GP40E107
GP40X 107
GP53109
GP50111
SW-1 113
NW-12113
SW1500 113
SW1200 114
SW1000 114
MP15 115
GP-7 115
4-axle slug 116
6-axle slug 117
B30-7A 118
B23-7 119
Dash 9-44CW 122
C30-7 130
SF30C 131
SD-9 132
SD39133
SD38P (slug mother) 134
TEBC6 (yard slug) 134
SD40135
SD40-2 137
SD45140
SD45-2 141
SDF45 142
SDF40-2 142
SD40-2B 142
SD45B143
SD45-2B 143
SD40C143
SD75M & SD75I 144
GECX & LMX B39-8E 148
Dash 8-40B 149
GP60150
EMD SD60 151
SD6OM 152
SD60MAC 154
SD7OMAC 154
INTRODUCTION
No matter what measure is used, 1998 was a record-breaking year for Burlington Northern Santa Fe Corporation. The winter of 1997/1998 was much milder than was endured at the beginning of 1997. Although the Pacific Northwest region had its usual mud slides, the Midwest had their usual annual floods, etcetera; BNSF weathered 1998 rather well.
Revenues grew 6.8 percent to a record $8.94 billion compared with 1997. During the first three full years of operation, BNSF increased annual revenues by $862 million. BNSF completed 1998 with a 44.3 percent share of the western rail market, a gain of more than four share-points, or 1 million units, in a two-year period.
Almost 7.9 million freight units traveled on BNSF's 34,000-route-mile network in 1998, a 7.3 percent increase from 1997. These units generated a record 469 billion revenue-ton miles (the movement of a ton of revenue freight one mile), a 10.5 percent increase from 1997. Intermodal and automotive accounted for a record 3.4 million units; coal represented 2 million loads, or a record 230 million tons; chemicals, metals and minerals, forest products and consumer goods accounted for a record 1.9 million loads, and agricultural commodities represented 581,000 loads.
Adjusted operating income grew $301 million, or 16 percent, to a record $2.16 billion from a year ago. Since 1995, BNSF has generated an additional $625 million in adjusted operating income.
Adjusted net income exceeded $1.12 billion, or $2.36 per share, a 19 percent improvement compared with a year ago. Almost $390 million, or $0.75 per share, has been added to BNSF's adjusted net income in the past three years.
Operating ratio (the amount of operating expense spent to generate every dollar of revenue) was 75.9 percent, the lowest ever and nearly two points under 1997's adjusted ratio. Between 1996 and 1998, BNSF has reduced this ratio by 5.2 points, reflecting the compound benefits of significant revenue growth and productivity gains from new capital investment and smart expense management.
On September 1, 1998, BNSF implemented a three-forone stock split, the first in its history, and on October 1, the railroad initiated a 20 percent increase in their dividend rate, which is now 48 cents per share per year.
Investing for Today and Tomorrow
During 1998, the railroad continued making progress in key areas: investing in facilities, equipment, and information systems in order to provide better and more consistent on-time service; and investing in their people to help them relate better to one another and to the entire BNSF Community.
These investments are keys to revenue growth and efficiency gains that will enable BNSF to achieve its vision: To realize their tremendous potential by providing transportation services that consistently meet their customers' expectations.
Between 1996 and 1998, BNSF invested $7.1 billion to maintain and expand its network to provide customers with more reliable, consistent train service. In addition, the railroad hired and trained almost 8,100 people, mostly for train, yard and engine service, maintenance-of-way, shopcraft, and other union-represented positions. BNSF's average workforce for year end 1998 was 44,349 people, a reduction of 1,306 over the past three years.
About $1.4 billion was spent on capacity expansion projects to remove constraints to service improvements. Investments in terminal and intermodal facilities, main line track capacity, and the purchase of the Inside Gateway from the Union Pacific (UP) are beginning to produce results.
Another $1.4 billion was spent to acquire 933 road locomotives increasing the horsepower of the road fleet by 27 percent, which, along with fuel conservation measures, have improved fuel efficiency by 6 percent to 737 gross ton miles/ gallon at year end 1998 from 693 at year end 1995. These investments will eliminate approximately $130 million in annual locomotive maintenance costs, that otherwise would have been incurred. During 1998, the number of different locomotive models was reduced in the road fleet from 19 to 10, reducing parts inventory, and simplifying locomotive training.
About $3.7 billion has been spent over this three-year period on maintaining track, signals, bridges and tunnels, and to overhaul locomotives and freight cars. While track maintenance always makes for tough conditions for dispatchers and train crews due to required work windows, the pay off for the future makes these minor delays worth the wait. With the physical plant coming nearer to what BNSF needs as the years go by, on time performance will only increase.
Another $143 million has been invested in a new information system, which today provides integrated, real-time data for all business transactions. The Transportation Support System (TSS) is helping to better manage the rail network and to improve day-to-day performance. In addition, customers can now order cars, provide shipping instructions and arrange billing through BNSF's Internet site.
As a result of a series of shipper forums held during the last half of 1998, BNSF and the other Class I railroads have been providing performance measurement data since January 13, 1999, to help customers remain current on how the railroad is operating, as well as to improve communications. Data on total cars on line, average train speed, average terminal dwell time and the number of freight cars received without a bill of lading is being published weekly on their Internet site as indicators of how well traffic is moving on the BNSF network.
One annual measure of how well BNSF serves customers took place in 1998 during the 27-day period preceding Christmas. For their largest intermodal customer, United Parcel Service (UPS), BNSF handled 31,786 trailers, or 55 million packages without a single service failure - the largest UPS peak volume ever handled by a railroad and a 15 percent increase over BNSF's 1997 - 26-day peak volume, which was also failure free. BNSF's latest failure-free streak for UPS began prior to Thanksgiving and continued through January 4, 1999 - 45 days during which BNSF handled 43,394 trailers without a single service failure.
The railroad expects to invest another $2.5 billion in BNSF's network and locomotive and equipment fleets during 1999. BNSF will acquire 476 road locomotives, the largest single-year total in railroad history, which should alleviate the locomotive shortage they have struggled with since the merger. Beginning in 2000, the railroad expects new locomotive acquisitions to significantly decline compared with 1999.
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