WEDA 2018 Fall Conference

Transcription

1 WEDA 2018 Fall Conference Eric Pitcher REGIONAL MANAGER, ECONOMIC DEVELOPMENT SEPTEMBER 28, 2018

2 BNSF Railway BNSF Railway is committed to serving our customers today and investing to accommodate their growth tomorrow. 28 States Served +3 Canadian Provinces 32,500 Route Miles ~400 Transload Facilities on Network 25 Intermodal Facilities ~8,000 Locomotives 40+ Ports Served 41,000 Employees ~10 Million Carloads Shipped in 2017 $60+ Billion Invested Since

3 Our Network 3

4 What We Carried in First Half 2018 Total units and % change from Agricultural Products +7.8% In Thousands 899 Coal -1.4% 964 Industrial Products +9.8% YTD 2018 TOTAL VOLUME 5, % 2,798 Consumer 4 Products +5.4%

5 We re On Your Side Count on BNSF Railway s Economic Development Team to Help You: Select a site for a new facility Expand an existing site Evaluate transportation options Improve transportation infrastructure Establish rail service Navigate the process 5

6 We re Here To Help BNSF s Economic Development team will guide you through: Real estate market research and planning Property acquisition Construction Commencement of shipping 6

7 The BNSF Economic Development Process 7

8 Process: Evaluate 8

9 Process: Evaluate 9

10 Process: Prepare 10

11 Process: Build + Ship 11

12 Common BNSF Agreements Industry Track Agreement (ITA) Outlines ownership, operation and liability maintenance responsibilities relative to a private track when BNSF Railway crews or equipment are operating over customer-owned track. Lease for Land and Track (LLT) Required prior to a customer receiving service on a BNSF-owned track and addresses ownership, maintenance responsibility, permitted uses and liability. Lease of Land for New Track Construction (Construction Lease or CL) Allows customer to enter BNSF property to construct and / or maintain track. Locomotive Use Leasing Agreement (LULA) Deals with the specificity of use and insurance requirements when using BNSF locomotives to load / unload commodities. Contractor s Right of Entry (CROE) Provides for a private contractor who is engaged by a customer to enter BNSF leased property to construct / maintain track or other related activities. 12

13 Our Experience Benefits You The Economic Development professionals at BNSF: Support rail-served building or expansion projects in communities across the network Have over 250 years of combined experience Help more than 100 shippers grow their business each year 13

14 BNSF Economic Development Team AVP Colby Tanner NORTH Director Open Reeve Geary Justin Pearson Co-Location Director Cary Hutchings Eric Goodman Jon Arita Port Business Development Director Don Karls Director Sam Galltin SOUTH Director David Polzin Jennifer Fitzgerald Lindsey Van Meter John Rider Eric Pitcher Strategic Programs Director Darrell Coffey Cherie Gordon Lacy Kreger Michelle Pagel Unit Train Projects Peiter Hjertstedt Janet Black Ean Johnson Kevin Leddy Director Pat Thompson Stan Ujka - Sand/ Crude John Karl - Wind/Pipe/NGLs Mike Ray - AG North Mike Martucci - AG South George Pacocha - Coal/Aggregate James O Donley Opportunity Management Director Pat Thompson Josh Stewart Shauna Stagner 14

15 Economic Development Strategic Program Premier Parks, Sites & Transloads Program Logistics Parks Logistics Centers Private Parks & Site Certification Transload Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network 15

16 Economic Development Strategic Program 16

17 Logistics Park Overview Premier Parks, Sites & Transloads Program Logistics Park Kansas City Logistics Parks Logistics Centers Private Parks & Site Certification Transload Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network Logistics Park Description Intermodal Service business park focus but Direct Rail available Consumer, packaged, 3PL & export focused tenants Strong developer partnerships Private Capital & Public Investment Modal Connectivity Value Proposition Maximize intermodal service Minimize inbound dray, maximize truck-turns-per-day Reduce emissions, fuel consumption Combine Direct Rail w/ Intermodal Heavyweight capabilities 17

18 Logistics Center Overview Logistics Center Sweetwater Premier Parks, Sites & Transloads Program Logistics Parks Logistics Centers Private Parks & Site Certification Transload Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network Logistics Center Description Direct rail served focus Multi-commodity, multi-customer Carload and/or unit train BNSF controlling interest BNSF capital drives development of business park Modal Connectivity Benefits Create product in a site deficient market(s) Focus on end-user markets Public & Private Partnership investment Aggregate demand for operational and service improvements 18

19 Private Parks & Site Certification Overview Premier Parks, Sites & Transloads Program Logistics Parks Logistics Centers Private Parks & Site Certification Transload Invest Develop Partner Promote Strategic Approach - create conditions to attract customer site location opportunities to the BNSF network Description Direct rail service focus Multi-commodity and customer Private business park developments Partnerships with economic development organizations, developers and communities Creating a robust, visible site inventory on our network Sites locations are reviewed to ensure accurate, reliable data Benefits Reduce development time Increase speed to market Reduce upfront development risk of rail-served industrial sites Increase awareness of sites 19

20 Private Parks & Site Certification Overview PROGRAM GOALS CERTIFIED SITE PROGRAM: A pilot program launched in 2015 to develop a collection of prospective rail-served industrial sites along the BNSF network. Reduce development time, increase speed to market, reduce upfront development risk for customers Foster development of business parks and attract capital investment along BNSF Right of Way Create product inventory of available, rail-ready industrial sites for internal and external stakeholders Lower upfront development risk for community and industry Guide customers to pre-approved, choice locations along BNSF network Strengthen political and community relationships Increase wins for BNSF Railway 20

21 BNSF Certified Sites 21

22 Types of Transloading Facilities 22

23 Transload: Benefits Truck-like services with economies of rail Preferred service provider network (Premier) Facilities capable of handling multiple commodities Value-added services; inventory management storage and packaging Unbundled pricing helps maximize savings Unlimited access to your customers 23

24 Transload: Facts BNSF handled 103,980 carloads through transloading facilities in 2016 BNSF serves or has access to more than 391 transloading facilities Nearly 150 are BNSF premier transloaders 24

25 BNSF 25