- Berkshire Hathaway-owned BNSF Railway (BRK.A, BRK.B) says it plans to reduce capital spending for the first time in six years, as railroads seek to reduce costs amid a freight slump.
- BNSF says it will spend $4.3B in 2016, down 26% from a record $5.8B in 2015, on locomotives, rail cars, track and maintenance, after increasing investment steadily since 2010.
- BNSF joins Union Pacific (NYSE:UNP), CSX and Kansas City Southern (NYSE:KSU) in lowering spending amid a drop in carloads, led down by coal; UNP plans to spend $3.75B this year, down from $4.2B last year, CSX is paring $100M off last year’s $2.5B, and KSU plans to spend $580M-$590M vs. $649M last year.