<PAGE>
 
                                                                      EXHIBIT 12

     THE BURLINGTON NORTHERN AND SANTA FE RAILWAY COMPANY AND SUBSIDIARIES
               COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                      (IN MILLIONS, EXCEPT RATIO AMOUNTS)
                                  (UNAUDITED)
                                        
<TABLE>
<CAPTION>
Year Ended,                                                                       1998              1997               1996   
---------------------------------------------------------------------        ------------     -------------      -------------
<S>                                                                          <C>              <C>                <C>          
Earnings:                                                                                                                     
  Pre-tax income                                                                   $1,939            $1,490             $1,489
                                                                                                                              
  Add:                                                                                                                        
      Interest and fixed charges, excluding capitalized interest                      293               281                275
                                                                                                                              
      Portion of rent under long-term operating leases representative                                                         
         of an interest factor                                                        202               183                179
                                                                                                                              
  Amortization of capitalized interest                                                  4                 3                  3
                                                                                                                              
  Less:  Undistributed equity in earnings of investments accounted                                                            
            for under the equity method                                                18                17                  5
                                                                             ------------     -------------      -------------
                                                                                                                              
  Total earnings available for fixed charges                                       $2,420            $1,940             $1,941
                                                                             ============     =============      =============
                                                                                                                              
Fixed charges:                                                                                                                
                                                                                                                              
  Interest and fixed charges                                                       $  310            $  299             $  288
                                                                                                                              
  Portion of rent under long-term operating leases representative                                                             
      of an interest factor                                                           202               183                179
                                                                             ------------     -------------      -------------
  Total fixed charges                                                              $  512            $  482             $  467
                                                                             ============     =============      =============
                                                                                                                              
Ratio of earnings to fixed charges                                                   4.73x(1)          4.02x(2)           4.16x 
                                                                             ============     =============      ============= 
</TABLE>

(1)  Earnings for the year ended December 31, 1998 include a $67 million pre-tax
     gain on the sale of substantially all of the Company's interest in Santa Fe
     Pacific Pipeline Partners, L.P.  Excluding this gain, the ratio for the
     year ended December 31, 1998 would have been 4.60x.

(2)  Earnings for the year ended December 31, 1997 include a special charge of
     $90 million (before-tax).  Excluding this charge, the ratio for 1997 would
     have been 4.21x.