While some railroads are still holding their cards close to their vests, indications are the industry will spend about the same amount on m/w and capital in 2009 and 2010.

by Tom Judge, editor

For 2010, indications are that the railroad industry will be spending approximately $10 billion on infrastructure capital and maintenance, roughly the same amount spent in 2009.

However, with traffic down and the future unclear, some railroads are reluctant to reveal at this time how much they will be spending this year on engineering capital programs and general maintenance-of-way work. Our annual RT&S survey had fewer returns than usual.

In the following story, we bring you the results supplied by the railroads who responded to our survey and information gathered from a number of other sources ranging from industry association presentations to general reporting. Virtually all the information is preliminary, subject to final approval by the various boards of directors.

RT&S thanks all those who responded to the survey.

Railroads expect tie gangs to be out in force in 2010. Again, wood will have the lion’s share, but concrete, composite/plastic and steel are making inroads in the market.

Amtrak

In 2010, Amtrak expects to spend $635 million on engineering, $194 million operating and $441.8 million capital. In 2009, Amtrak spent a total of $620 million, including $181 million operating and $439 million capital.

In C&S this year, Amtrak plans to spend $511 million, including $15.7 million operating and $35.4 million capital. That compares to $44.8 million in 2009, broken down into $14.2 million operating and $30.6 million capital.

Amtrak plans to install 6,678 net tons of new rail, more than double the 3,064 installed in 2009.

The railroad expects to install about 49,688 wood crossties this year and 112,453 concrete ties for a total of 162,141. In 2009, Amtrak put in 99,984 wood ties and 129,862 concrete ties, or 239,846 total ties.

The railroad plans to surface 50 miles of track in 2010, down from 898 the previous year.

BNSF

BNSF declined to respond to the RT&S survey, partially due to the process of changing ownership.

The railroad has indicated it shipped three million wood crossties in 2009 and expects approximately the same in 2010. In addition, there will be several thousand concrete and plastic/composite ties installed.

In 2009, BNSF forecast a total of 3.4 million ties, including 3.2 million wood ties, 149,000 concrete ties and 12,000 plastic ties.

In 2010, BNSF hopes to start two major bridge projects spanning the Mississippi River, one at Burlington, Iowa, and the other at Ft. Madison, Iowa. The Burlington bridge project is valued at $56 million, while the Ft. Madison project is rated at $70 million.

CN

CN declined to respond to the 2010 survey. In the previous year, the railroad planned to install 55,000 net tons of new rail and 50,000 tons of relay rail, 1,750,000 wood ties and 50,000 concrete ties and 1.5 million tons of ballast behind tie programs and for out-of-face surfacing.

In 2009, CN completed the $100-million multi-year construction project to reconfigure and modernize its Memphis rail classification yard.

Canadian Pacific Railway

Canadian Pacific Railway responded to the survey, but declined to provide a capital spending estimate for 2010 as the budget development process was not yet complete.

In 2009, CPR spent approximately C$451 million on engineering m/w capital and operating expenses. CPR also spent C$22 million this past year on C&S.

In 2010, CPR plans to install 55,049 net tons of new rail and 18,518 net tons of relay rail, very similar to the 2009 numbers of 58,874 net tons of new rail  and 11,494 net tons of relay rail.

This year, the railroad plans to install 707,900 new wood crossties and about 1,400 steel ties, as well as 45,100 relay ties. In 2009, CPR installed 739,700 new wood crossties and 22,400 relay ties.

CPR plans to surface 848 track miles in 2010 compared to 1,672 in 2009.

CSX Transportation

In responding to a Railway Age survey, CSX Transportation said: "Capital spending in 2009 is projected at $1.6 billion. We continually evaluate market and regulatory conditions, but believe that our capital investment is in the appropriate range to protect our core assets, capitalize on future growth in rail volumes and produce long-term value for shareholders. We are currently planning for 2010 capital investments. In general, the view looks similar to 2009."

CSXT expects to install three million new wood crossties in 2010. The railroad also plans to install a number of steel ties at its intermodal facility in North Baltimore, Ohio, which is now under construction.

CSXT is still heavily involved with the National Gateway project, an $842-million multi-state public-private infrastructure initiative.

To date, the project has received $395 million in funding commitments from CSX Corporation and its affiliates. States involved in the project are expected to fund $189 million, with an additional $258 million requested from the federal government.

Montana Rail Link

Montana Rail Link expects to spend about $57 million on infrastructure in 2010, down from $76 million in 2009. However, this past year, the railroad did a $20-million tunnel upgrade project. The railroad also plans to spend $4.5 million in C&S, similar to the $4.8 million spent the previous year.

MRL plans to install 5,000 net tons of new rail in 2010. In 2009, the railroad installed 5,200 net tons of new and 486 tons of relay rail.

The railroad plans to put in 110,000 new wood crossties compared to 112,000 in 2009.

MRL will surface 265 miles of track in 2010, up slightly from 260 in 2009.

Norfolk Southern

Norfolk Southern is still finalizing its capital budget for 2010. In 2009, the railroad spent $469 for maintenance and $728 million on capital projects.

On the C&S side, in 2009 Norfolk Southern spent $159 million capital and $70 million maintenance.

"In addition to the completion of the Heartland tunnel clearance project, we will complete during 2010 a major rehabilitation project to the Eastern Branch Bridge in Norfolk, Va.,"said Timothy Drake, vice president engineering. "The assignment of stimulus funds to our various project requests will define our major track and rehabilitation projects this year."

NS plans to install 63,315 net tons of new rail and 17,424 net tons of relay rail this year. In 2009, the railroad installed 70,031 tons of new rail and 19, 625 tons of relay rail.

NS is a wood crosstie railroad. For 2010, NS plans to install 2,312,356 new ties and 296,793 relay ties. In 2009, the railroad installed 2,588,706 new ties and 231,473 relay ties. Totals were 2,820,279 in 2009 and 2,609,149 in 2010.

The railroad plans to surface 5,232 miles of track this year compared to 5,539 miles in 2009.

In responding to a Railway Age survey, NS said: "We anticipate that our capital budget in 2010 will be about $1.4 billion, the second highest in the company's history, and about the same as 2009. We take a long-term perspective on capital spending and invest in projects that we believe are critical to our future."

Union Pacific

Because it was still developing its 2010 capital plan at press time, Union Pacific responded to the RT&S survey with a statement: "Union Pacific plans another year of significant replacement and restoration capital spending to support our infrastructure needs. Our spending level will be balanced between current low demand levels and our commitments to long-term strategic growth. In addition to surfacing and ballast efforts, this includes supporting our tie program, as well as installing and undercutting track in our heavy-haul corridors. We also will take on the additional capital burden for the development and installation of Positive Train Control resulting from the Rail Safety Improvement Act of 2008."

Estimates are that UP will spend about $1.68 billion on infrastructure in 2010.

In ties, the railroad plans to install about 4.5 million in 2010, including 3.5 million wood, 200,000 plastic and 335,000 concrete.