Financial and physical capacity of the Burlington Northern Railroad to move western coal

Abstract

Studies conducted by the Department of Energy, the Department of Transportation, and the National Transportation Policy Study Commission (NTPSC) express concern about the ability of railroads both to carry projected coal traffic and to finance physical plant expansion to accommodate additional coal volumes. These studies, along with past experiences, have called into question the overall physical capacity of the Burlington Northern (BN) Railroad to meet future demands for the movement of coal out of its service areas. The conditions under which the BN could or could not meet projected levels of demand were identified. The study has relied upon secondary information provided by the BN and other sources without verifying such data. The achievement of any financial projection may be affected by possible fluctuating economic conditions and depends on the occurrence of future events which cannot be assured. Therefore, actual results achieved may vary from the projections and such variations could be material.