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Fuel Conservation and Management Symposium Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

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Page 1: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Fuel Conservation and Management Symposium

September 22, 2008

John LaniganExecutive Vice President and Chief Marketing Officer

Page 2: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Rail Has Economic and Environmental Advantages

Page 3: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Reducing Air Emissions

Truck

Rail

Truck

Rail

0

0.4

0.8

1.2

1.6

2005 2010

NO

x E

mis

sio

ns

(g

/to

n-m

ile

)

PM

Em

iss

ion

s (

g/t

on

-mil

e)

California Statewide with No SCAB Fleet Average– L. S. Caretto: Updated truck versus rail emissions comparison , August 2007

NOx Emissions per Ton Mile of Freight PM Emissions per Ton Mile of Freight

Truck

Rail

Truck

Rail

0

0.02

0.04

0.06

0.08

2005 2010

Together trucks and trains are reducing emissions

Page 4: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Reducing Air Emissions

EPA Locomotive Emission Regulations

Take effect year PM NOx

Remanufactured Tier 0 and 1

2008 as available,2010 required

0.22 7.4

Remanufactured Tier 22008 as available,

2013 required0.10 5.5

New Tier 3 2012 0.10 5.5

New Tier 4 2015 0.03 1.3

Page 5: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

2007 Year-end BNSF Locomotive Fleet Status

• Total locomotive fleet = 6,800• Locomotives w/ AESS = 3,300+• Tier 0 (retrofitted) locomotives = 2,300• Tier 1 (purchased) locomotives = 620 • Tier 2 (purchased) locomotives = 880 • Remaining (Tier 0 retrofit) = 2,260

Page 6: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Reducing Greenhouse Gases• Developing and implementing new clean-air technology

– Committed $2.5 million to jointly fund a research project to develop a high-performance diesel particulate filter

– Piloting 67 NREC GenSet Locomotives– Installing Idle Reduction Devices– Promoting the use of Low Torque Roller Bearings

• Implementing process changes– Conducting engineer training and evaluation programs to further improve train fuel

efficiency performance – Improving intermodal loading methods to reduce aerodynamic drag– Improving wheel and rail lubrication

• Maintaining EPA standards– Retrofitting existing locomotive fleet, and purchasing only Tier 2 or greater

locomotives

Page 7: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Increasing Fuel EfficiencyIf just 10 percent of the freight currently moved by truck were carried by

rail for the long haul, we would save 1 billion gallons of fuel each year

740

750

760

770

780

2000 2001 2002 2003 2004 2005 2006 2007

Gro

ss T

on

Mile

s P

er

Ga

llon

BNSF Fuel Efficiency

Page 8: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Increasing Fuel EfficiencyOperating Practices

Train Handling Practices– Training module for locomotive engineers on BNSF – Supervisor coaching based on locomotive scorecard– Fuel MVP program recognizing top fuel-saving locomotive engineers– Growing On-dock usage & units per train

Company Vehicles– Communications to 10,000 vehicle operators – Focus on reducing idling, keeping tires properly inflated, maintaining

vehicles

Page 9: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Investing in Green Technology Diesel Particulate Filter

• Joint initiative between BNSF and UP railroads

• 5-year, $5 Million R&D project

• Two 1500 horsepower prototype switch engines equipped with DPF technology

• R&D work being performed by Southwest Research Institute through Association of American Railroads

Page 10: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Investing in Green Technology Hydrogen Fuel Cell Switch Locomotive

• First railroad in the world to develop an experimental hydrogen fuel cell switch locomotive

• Potential to reduce air pollution

• Not dependent on oil for fuel

• Debut test run in late 2008

Page 11: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Investing in Green Technology Wide-Span Cranes

• Span multiple loading / unloading tracks

• Powered by electricity vs. diesel hydraulic

• Advanced anti-sway systems• Reduced switching & vehicle

container transfers• Increased inventory capacity;

utilizes hub footprint more efficiently

• Lower energy consumption and noise level thanks to advanced drives and power regeneration

Page 12: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Investing in Green Technology Automated Gates

• Digital cameras record images of container, chassis, tractor, & unit #’s

• Drivers identified by biometric and unique pin ID

• Improves safety

• Reduces truck idling and increases facility throughput

Page 13: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Investing in Green Technology GenSet Switch Locomotive

• BNSF is testing 67 GenSet switch locomotives in the Dallas-Fort Worth and Houston areas

• Low-horsepower switch locomotive with three engines that operate only as needed

• Potentially reducing nitrogen oxide and particulate matter emissions by 80 to 90 percent and improving fuel efficiency by 15 percent over standard switch engines

Page 14: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Investing in Green Technology LNG Switch Locomotives

• BNSF operates the only four environmentally friendly liquid natural gas locomotives that reduce emissions and fuel consumption

• 1200 sustainable horsepower, spark ignited

Page 15: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

• Clean trucks and designated truck routes– BNSF will ensure a clean drayage operation– 100% of the fleet will be 2007 or newer trucks upon facility opening – exceeding CAAP

compliance– Trucks serving SCIG required to adhere to specified, non-residential routes and be equipped with

GPS to monitor and enforce truck routes

• 2,500-foot entrance lane• LNG (or equivalent) hostler tractors• LNG, multi-engine or “hybrid” switch locomotives• Low-sulfur fuel and automatic shutdown

devices for locomotives• Urban forest• Sound wall• Electric rail-mounted gantry cranes• Jobs – workforce training

BNSF is designing SCIG to reflect community concerns

Investing in Green Technology Southern California International Gateway

Page 16: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Fuel Efficiency and CO2 Emissions ImpactIntermodal v. Truck

Truck vs. Rail @ 2000 miles

Fuel Efficiency of Trailer on Flat Car (TOFC) vs. Truck

CO2

emission reduction

Fuel Efficiency of Container on Flat Car

(COFC) - Double Stacked vs. Truck

CO2

emission reduction

Actual Drayage Miles = 100 2.1 53% 2.6 62%Actual Drayage Miles = 250 1.9 47% 2.3 56%Actual Drayage Miles = 500 1.6 37% 1.8 45%

Truck vs. Rail @ 1500 miles

Fuel Efficiency of Trailer on Flat Car (TOFC) vs. Truck

CO2

emission reduction

Fuel Efficiency of Container on Flat Car

(COFC) - Double Stacked vs. Truck

CO2

emission reduction

Actual Drayage Miles = 100 2.1 52% 2.5 61%Actual Drayage Miles = 250 1.8 44% 2.1 52%Actual Drayage Miles = 500 1.4 30% 1.6 38%

Truck vs. Rail @ 1000 miles

Fuel Efficiency of Trailer on Flat Car (TOFC) vs. Truck

CO2

emission reduction

Fuel Efficiency of Container on Flat Car

(COFC) - Double Stacked vs. Truck

CO2

emission reduction

Actual Drayage Miles = 100 2.0 49% 2.4 58%Actual Drayage Miles = 250 1.6 37% 1.8 45%Actual Drayage Miles = 400 1.3 24% 1.5 32%

Note: BNSF has assumed 18 Tons of Cargo per Trailer

Page 17: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Carbon Calculator

• Working with customers like Schneider to calculate lane-specific fuel efficiency and emissions impacts, rail v. truck

• Will provide summary information to customers on a yearly basis

• Tool will be available by customers to calculate fuel efficiency and environmental impacts on lane-specific routes

Page 18: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium

Summary

• Truck-Rail intermodal is the easiest, quickest and most economic way to reduce your company’s carbon emissions

• Rail is the most environmentally friendly provider of surface transportation and BNSF is a leader in the rail industry

• BNSF is employing technology and operating practices to improve fuel efficiency and reduce green house gas emissions

• BNSF is leading the industry in testing, development and implementation of green technology

• BNSF’s environmental stewardship promotes sustainability in the communities it serves today, and gives future generations a cleaner road ahead

Page 19: Fuel Conservation and Management Symposium September 22, 2008 John Lanigan Executive Vice President and Chief Marketing Officer

Fuel Conservation and Management Symposium