Buffett's Railroad To Spend $3.9B On Upgrades

OMAHA, Neb. (AP) — Burlington Northern Santa Fe, the railroad owned by Warren Buffett's Berkshire Hathaway Inc., plans to spend $3.9 billion on network upgrades this year as the economy improves.

The railroad says that its capital spending plan is $400 million bigger than its 2011 budget.

The nation's major freight railroads, which include BNSF, together plan to spend about $13 billion this year, up from 2011's $12 billion.

BNSF says it will spend $2.1 billion to upgrade its core rail network; $1.1 billion on locomotives, freight cars and other equipment; and about $300 million on developing the federally mandated system to remotely stop trains headed for a collision.

The railroad is based in Fort Worth, Texas. Berkshire Hathaway is based in Omaha, Neb.