BNSF Railway (BNSF) is planning to invest $199m in Texas and $30m in South Dakota for railway maintenance, capacity improvements and expansion projects during 2012.
Under the project, BNSF will expand rail capacity at Tower 55 in Fort Worth, realign its mainline for the extension of the Alliance Airport runway, replace the Galveston Causeway Bridge and install wheel detectors in Galveston.
BNSF is also planning to develop its Amarillo car shop and upgrade signals for US government-mandated positive train control (PTC) system.
The investment will also be used for BNSF's track maintenance programme, which will include 1,341 miles of track surfacing and undercutting work, the replacement of 84 miles of rail and 563,000 ties.
BNSF chairman and chief executive officer Matthew Rose said: "BNSF's investments will improve our ability to provide rail freight services to Texas businesses and communities, and will expand opportunities to create more jobs and growth for the Texas economy."
BNSF's capacity improvements in South Dakota include expansion of rail sidings to boost rail capacity and signal upgrades.
Under the project, BNSF will carry out 676 miles of track surfacing and undercutting work, as well as replace 28 miles of rail track and 121,000 ties.
The planned investments in Texas and South Dakota are part of the company's $3.9bn capital investment programme for 2012, the largest portion of which goes into $2.1bn improvements of the railway's core network and related assets.
BNSF is also planning to invest $1.1bn on locomotives, freight cars and other equipment acquisitions, many of which will serve Texas.
About $300m will be invested for federally-mandated PTC technology and $400m for terminal, line and intermodal expansion and efficiency projects.