Coal Network Update for Friday, May 10, 2024

OPERATIONAL PERFORMANCE
BNSF continues to address flood-related track outages that have caused ongoing service challenges in Texas. On Sunday, high water levels on the Brazos River caused a washout on our Fort Worth Subdivision, which runs between the Texas/Oklahoma border and Temple, Texas. BNSF operations teams had recovery equipment and materials pre-positioned and implemented procedures to re-route some traffic where possible to minimize the disruption. As water levels receded, crews worked aggressively to complete track repairs. The main track was put back in service on Tuesday; however, as we reported to impacted customers, we experienced a derailment on the Fort Worth Subdivision on Tuesday, near Clifton, approximately 39 miles northwest of Waco. The main track opened yesterday, but customers should expect lingering delays into next week as traffic normalizes.

BNSF crews completing track remediation work - Fort Worth Subdivision, Texas

As reported, parts of the Conroe Subdivision, located north of Houston, Texas, were taken out of service last Friday due to washouts in several locations. While the subdivision re-opened on Sunday, another round of weather caused subsequent flooding on the main track midweek near Navasota, approximately 24 miles southeast of College Station. Restoration efforts are ongoing and there is currently no estimate for when the main track will be back in service.

Despite the operational challenges in Texas, average car velocity is up five percent from last week and continues upward compared to April, reflecting improved fluidity across much of the Southern Transcon. Terminal dwell has also decreased from last week and has improved compared to April. Our local service compliance measure, which reflects our timeliness in handling carload freight, has increased and is at 92 percent.

SERVICE EXPECTATIONS FOR THE WEEK AHEAD
With more rain expected, flood warnings are currently in effect throughout much of East Texas. We will continue operating a 24/7 command center to help expedite the recovery process in Texas and BNSF crews continue to closely monitor and evaluate affected areas for additional track issues.

Other areas of the network are expected to experience favorable operating conditions moving into next week, with no severe weather events forecasted to begin the week.

We thank you for your business and appreciate the opportunity to serve as your transportation service provider. We welcome your feedback and questions.