USDA Grain Transportation Report (8/11): Two Class I Railroads Announce Capital Plans For 2022

Canadian National Railway (CN) and BNSF Railway (BNSF) have released their capital investment plans for upgrading and maintaining infrastructure in key grain-producing states.

Structures to be maintained and/or replaced include railroad tracks, railroad ties, road crossing surfaces, bridges, culverts, signal systems, and other track infrastructure.

CN plans to invest $150 million in Illinois, $55 million in Minnesota, $20 million in Iowa, and $25 million in Louisiana, among other states key to grain transportation.

BNSF has announced a multi-year effort to add segments of double- and triple-track along its Southern Transcon route between Southern California and the Midwest.

In recent months, congestion on BNSF’s Southern Transcon route has contributed to container delays at the Los Angeles/Long Beach ports and in Chicago.

The route has also been central to concerns of California agricultural producers who have struggled to get feed from the Midwest.

Although immediate concerns over rail service remain, these track investments could help improve the resiliency of the railroad over the longer term.

This article comes from the U.S. Department of Agriculture's (USDA) Aug. 11, 2022, Grain Transportation Report.