Carl Ice, President and CEO, BNSF Railway

https://www.bnsf.com
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Carl Ice

The overall state of the economy is one of the best indicators of what we can expect to occur with freight demand in the coming year. Last year we saw some positive economic signs that we should expect to carry over into 2018, as consumer spending continues to grow and certain industrial segments see some positive momentum.

While the North American rail industry remains focused on maintaining a strong supply chain, we know the pace of change is accelerating. This has had a direct impact on our business mix.

The coal industry is undergoing a structural change as long-term volumes decline with more coal plants shutting down and utilities shifting to other fuel sources. On the other end of the spectrum, as trucking capacity tightens, more long-haul freight will continue to convert from over the road to rail.

Looking ahead, the rail industry is implementing technology that make rail even safer. US railroads have reduced employee injury rates, train accident rates, and grade crossing collision rates by nearly 80 percent since 1980.

By applying advanced analytics, railroads can proactively leverage the data they gather. As an example, BNSF utilizes more than 3,000 wayside detectors to predict issues before they occur, improving our efficiency and enhancing safety. We are also deploying unmanned aerial vehicles (UAVs), which enable our inspectors to gather valuable information, keeping our team members and rail network safe.

We are also continuing to implement Positive Train Control (PTC). BNSF is on track to meet the Dec. 31, 2018, deadline for PTC implementation and will work with the rest of the industry to test interoperability to ensure PTC works properly across the US rail network between all PTC-equipped passenger and freight railroads.