BNSF Railway Releases 2019 Economic Development Results

(BRK.A), (BRK.B)

BNSF Railway Company (BNSF) has reported investments from customers served by the freight rail provider in 2019 totaled approximately $1.2 billion.

Large investments from customers including Ag Processing Inc., SeaCa Packaging and Hostess Brands, LLC contributed to the sum.

As a result of customer investments, BNSF projects the creation of more than 2,000 new jobs in local communities. This marks the ninth consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities.

“BNSF strives to offer unique supply chain solutions that fit our customers’ logistical needs and help maximize their investments,” said Colby Tanner, assistant vice president, economic development. “The flexibility of our rail development program allows our customers to reach new growing markets while saving time and money.”

In 2019, new developments supported a wide variety of commodities including consumer, agricultural and industrial products in more than 100 communities across the BNSF network. Highlights of supply chain solutions BNSF helped its customers achieve in 2019 include:

• Ag Processing Inc. – A $300 million investment led to the opening of its 10th soybean processing location in Aberdeen, S.D. Ag Processing Inc.’s newest facility is expected to process more than 50 million bushels of soybeans annually and create 60 new jobs.

• Hostess Brands, LLC – Located in Edgerton, Kan., the new distribution center supports 200 new jobs. The $35 million investment strengthens the company’s distribution strategy with a direct connection to the nation’s supply chain through Logistics Park Kansas City.

• SeaCa Packaging – A subsidiary of Seattle-Tacoma Box Company, the plastics manufacturer invested $18 million in opening its first plant location in Surprise, Ariz., creating boxes for agriculture products and gaining access to demand in the Southwest region.

© 2020 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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