Railroad plans $15.2 million upgrade

The Daily Inter Lake

BNSF Railway Co. will spend $15.2 million this year on track upgrades and improvements along its northern Montana route, including 10,000 concrete ties and snow-shed renovation in Glacier National Park.

The railroad's investment in its northern route is part of a $54.4 million capital improvement program for Montana tracks. BNSF also will hire more than 100 additional employees statewide in 2007, about 10 of whom will be based in the Whitefish area, spokesman Gus Melonas said.

"We're moving record amounts of freight," he said.

Train traffic has increased over the last seven years from an average of 35 freight trains a day rolling through Whitefish to as many as 45 trains in a 24-hour period.

The company has earmarked $2.75 billion for track improvements and facility expansion nationwide this year in response to an unprecedented demand for freight rail service. Better railroad technology and a strong economy have boosted freight volume. At the same time the long-haul trucking industry has been challenged by high fuel prices and a shortage of drivers over the past couple of years.

"BEGINNING in mid-March, traveling rail gangs will be a regular sight in the Whitefish-Glacier corridor," Melonas said.

Crews of 35 to 45 - a total of 300 construction workers statewide - will work through the early fall to complete the rail and tie replacement and track surfacing.

Projects include:

. 59,358 new ties between Glasgow and Malta - $6.3 million.

. New rail between Whitefish and Havre - $4.9 million.

. New rail between Whitefish and the Montana/Idaho border - $2.3 million.

. Concrete ties from East Glacier to Kootenai Falls - $1.7 million. Concrete ties are used where elevation and degree of curve are factors, Melonas said. They have a 50 percent greater life span than wooden ties.

. Renovation of a snow shed near Essex.

Other statewide projects include new rail and ties in the Glendive area and a bridge project at Great Falls. Sections of track on the southern line between Billings and Huntley and between Laurel and the Wyoming line also are scheduled for upgrades.

BNSF last week reported record quarterly earnings of $1.42 per diluted share, a 26 percent increase over fourth-quarter 2005 earnings of $1.13 per diluted share. It was the 19th consecutive quarter of volume increases, BNSF President and CEO Matthew Rose said in a prepared statement.

Fourth-quarter 2006 freight revenues increased $323 million, or 9 percent, to $3.77 billion compared with $3.45 billion in the prior year. Revenue for the fourth quarter of 2006 included fuel surcharges of approximately $450 million compared with approximately $400 million for the fourth quarter of 2005. The increase in fuel surcharges was driven primarily by increased participation in BNSF's fuel surcharge program.

Features editor Lynnette Hintze may be reached at 758-4421 or by e-mail at lhintze@dailyinterlake.com