EnergyBiz - September/October 2007 - (Page 32) King coAl Matt Rose Building rAil to the coAl Fields pOWdEr rivEr basin ExpansiOn by matt rOsE phOtOGraphs by LEE m. buChsbaum These are boom times for Powder River Basin coal. In 2006 Burlington Northern Santa Fe Railway moved a record 287 million tons of coal, nearly 11 percent more than in 2005, and more than 90 percent of that coal was loaded in the PRB. Forecasts from the Energy Information Administration indicate that demand for PRB coal will keep right on growing. To handle growth in demand for PRB coal, we are adding track capacity at historic levels. From 1998 through this year, BNSF will have invested more than $2.8 billion in increasing coal capacity. BNSF will continue to make significant investments to increase coal capacity, as long as we can continue to improve our return on invested capital for our coal business and exceed our cost of capital. Volume growth and pricing that more accurately reflects the value of rail service have enabled BNSF to increase our capital commitments as our returns have improved. There is a direct relationship between the higher rate of return on invested capital and our ability to reinvest in our business. That investment allows us not only to maintain the quality of our infrastructure but also to expand capacity, which is improving velocity and efficiency. 32 E n E rgyB i z September/October 2007
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