2016 CAPITAL EXPENDITURES: DON'T PANIC

摘要

The business of railroading is a long-term proposition. While Class 1s have been ramping up their capital programs for many years, 2016 is showing a pull back on spending. In 2015, the North American Class 1s spent an approximate $19 billion on their individual capital programs, but preliminary 2016 estimates are putting capital spending down about 15 percent at $15.9 billion. Canadian Pacific and BNSF each have capital programs that reflect a 27 percent and 25 percent reduction respectively from 2015, but officials at each railroad say they can reduce spending due to heavy capital spending in previous years.