Tag Archives: BNSF

BNSF Receives $22.6 Million State Grant for Clean Technology Pilot Program

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BNSF Railway may have scrapped its plan for liquid natural gas powered engines, but that doesn’t mean it has given up on lower-polluting technology for a host of railroad applications, including locomotives and railyards.

BNSF and the San Joaquin Valley Air Pollution Control District were preliminarily awarded a $22.6 million Zero and Near Zero Emission Freight Facilities grant from the California Air Resource Board to pilot several emissions reducing technologies in and around railyards.

BNSF will collaborate with various industry partners to test the feasibility of these technologies.

“BNSF is focused on continuing to reduce our environmental impact, and we’re committed to doing our part to test and prove the commercial viability of emerging technologies that reduce emissions,” said John Lovenburg, vice president, Environmental.

These initiatives will build on BNSF’s existing investments in sustainable technologies including idle control, electric wide-span cranes, electric hostlers, automated gates at its intermodal facilities, and Tier 4 locomotives. As part of the project, BNSF will partner with GE Transportation on a battery-electric locomotive that will be paired with diesel locomotives to power a freight train traveling from Stockton to Barstow.

Transportation will develop an all battery-electric locomotive to validate the technology’s tremendous operational benefits and growth potential in the freight rail industry. The company will design and build an AC Evolution Series locomotive featuring an overall energy-management system, including onboard energy storage, which coupled with advanced system-optimization controls will improve performance. This battery-electric locomotive will generate 2,400 kilowatt-hours of power and could potentially reduce a freight train’s total fuel consumption by at least 10 to 15 percent.

“Battery-powered or hybrid locomotives are promising technologies for the rail industry with the potential to reduce operating costs and emissions,” said Dominique Malenfant, vice president, Global Technology, GE Transportation. “This project will give us tremendous insight into the capabilities of battery power and the best operational methods of leveraging the technology. It will accelerate the development of this cleaner, more efficient solution for the freight rail industry.”

In addition, two hybrid rubber-tire gantry cranes from Mi-Jack will be piloted; one at the Stockton Intermodal Facility and another at the San Bernardino Intermodal Facility. The hybrid cranes, when compared to their diesel counterparts, have the ability to reduce emissions by 70 percent.

A Taylor all-electric side loader will also be piloted at the San Bernardino Intermodal Facility. Finally, BNSF will partner with SH&H, a drayage truck provider, to demonstrate a BYD all-electric drayage truck in San Bernardino.

The equipment will be manufactured in 2019 and deployed in 2020. The grant will cover approximately half the cost of what is estimated to be a $45 million project. The remaining amount will be funded by BNSF and the other corporate partners.

© 2018 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.

BNSF Chairman Matthew Rose to Retire in April 2019

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BNSF Railway chairman Matthew Rose has announced that he will step down and retire in April of 2019.

At the end of his tenure, Rose will have been Executive Chairman for six years, and BNSF Chief Executive Officer for the prior 13 years. He also served in senior leadership for marketing and operations before assuming the CEO role in 2000.

During his tenure as CEO, he helped guide the acquisition of BNSF by Berkshire Hathaway (BRK) in 2009.

“It was a very lucky day for me and for Berkshire Hathaway when I met Matt Rose,” said Warren Buffett, chairman of Berkshire Hathaway. “Under Matt’s management, BNSF has become a major source of profit and pride for Berkshire. And, as a citizen, Matt has been an exemplar for corporate leadership.”

“I have been incredibly fortunate to work alongside some of the most talented people in the transportation industry,” said Rose. “Through my 26 years at BNSF – 19 in leadership – I have seen enormous change in our economy. Our company has navigated those changes well and now is extremely well positioned for the next several decades. It has been an honor to lead this organization, as a publicly traded company and also as part of BRK.”

© 2018 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.

BNSF Opens New Logistics Center

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BNSF Railway has opened its newest logistics center in Moore, Okla., near Oklahoma City.

Logistics Center Oklahoma City is located within the city limits of Oklahoma City and Moore and is designed to accommodate manifest and unit train customers in addition to a site for storage.

“Logistics centers are just one way BNSF offers more choices, flexibility and efficiency for new, potential and existing customers,” said Colby Tanner, assistant vice president, economic development. “Logistics Center Oklahoma City provides unrivaled access to the state’s largest population center and one of our nation’s most prominent energy centers.”

The 195-acre site is located due east of BNSF’s Flynn Yard – an ideal location for both rail and highway access. A double-ended industry lead track will connect to the main line to serve customers at this location. Unit trains can arrive from either direction and without impeding access to manifest sites. All customers’ sites at Logistics Center Oklahoma City are customizable to fit their needs.

BNSF Logistics Centers focus on offering direct rail service in multi-customer, multi-commodity business parks. BNSF invests directly in the development of the facility to create sites in under-served, strategic, end-user markets. These facilities can service carload, unit train customers, or both.

© 2018 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.

U.S. Rail Infrastructure Market to Reach $5.93 billion by 2025

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According to analysts at ResearchAndMarkets.com, the U.S. rail infrastructure market is projected to reach $5.93 billion by 2025.

“We will not hesitate to bring on additional resources — including infrastructure, equipment, and people — to handle the growth our customers bring us,” BNSF Railway CEO Carl Ice stated in a recent letter to federal regulators at the Surface Transportation Board.

Traffic volume at BNSF Railways is currently at historically high levels for this time of year, Ice also noted.

The U.S. rail infrastructure market is expected to witness a lucrative growth on account of increasing population and demographics in this country. United States is becoming an urbanized country and it is anticipated that it will cover larger network of metropolitan areas.

The report notes that the industry also provides 221,000 jobs across United States and also offers various public benefits such as reducing highway fatalities, logistics cost, greenhouse gases and fuel consumption, reduction in road congestion, and public infrastructure maintenance cost. Rising passenger volume, increasing number of rail routes and network, rolling infrastructure and stock, growing awareness regarding passenger rail is anticipated to boost the U.S. rail infrastructure market over the forecast period.

Railroads are continuously developing and researching high tech innovations to enhance rail operations which in turn is expected to add market growth. Growing investment in locomotives, freight cars, computer equipment, highway equipment, and other equipment is anticipated to add U.S. rail infrastructure market growth over the forecast period.

© 2018 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.

BNSF Restrictions Creates Rush for New Tank Cars

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After BNSF suffered a June derailment that saw ruptured tank cars spill some 230,000 gallons of crude oil spilled into an Iowa river, the class 1 railroad has reportedly responded by limiting the number of retrofitted tank cars called DOT 117Rs.

According to Reuters, BNSF banned the retrofitted cars, which were the type of cars that leaked in the Iowa spill, from all new contracts. The move sent refiners and producers scrambling to lease new tank cars.

BNSF has not confirmed the restriction.

The lease price of new tank cars has more than doubled from $400 a month last year to $1,000 today.

BNSF does not own the tank cars that run on its lines hauling crude oil and ethanol. The cars are owned by companies such as ConocoPhillips, or leased from brokers.

Ironically, BNSF, which is owned by Berkshire Hathaway, is limiting the very tank cars that are retrofitted by UTLX, another Berkshire company. UTLX has retrofitted almost 5,000 DOT-111 tank cars to the new DOT-117R standards.

In 2016, UTLX opened a tank car remanufacturing facility in Marion, Ohio to bring older tank cars up to DOT-117R standards and continue to be used for flammable liquids service.

The retrofits includes new top fittings protection, thermal insulation, an 11-gauge steel jacket, full ½-inch thick head shields, and a bottom outlet valve handle that disengages from the valve when the car is in transit.

© 2018 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.

Despite PTC Implementation, BNSF Files Extension

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BNSF Railway has announced that as of December 2017 it had fully installed and was operating under Positive Train Control (PTC) on all mandated subdivisions in advance of the December 31, 2018 deadline.

It has now announced that it nonetheless submitted a request to the Department of Transportation (DOT) for a two-year extension of the PTC deadline. The extension is required due to the Federal Railroad Administration’s (FRA) current interpretation of the law that full implementation status cannot be achieved until all non-BNSF trains and/or equipment operating on its PTC-equipped lines are also PTC-compliant.

“BNSF has succeeded in the adoption of this key safety technology. Even with this request for a deadline extension, BNSF’s PTC network is installed and we are currently running, and will continue to run, more than a thousand trains daily with PTC as we continue to refine the system and resolve technological challenges,” said Chris Matthews, BNSF assistant vice president, Network Control Systems.

As reported, BNSF completed the installation of all mandated PTC infrastructure at the end of 2017, including 88 required subdivisions covering more than 11,500 route miles on its network. However, to be considered fully implemented requires that all other railroads operating across any of BNSF’s PTC-equipped lines must be capable of operating with BNSF’s PTC system. This interoperability of PTC systems between Class I, commuter and short line rail carriers remains a challenge.

BNSF has successfully demonstrated interoperability with several railroads that operate on its network, including commuter railroads and Amtrak. However, not all railroads that operate on BNSF will have completed their PTC installation by the end of 2018.

© 2018 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.

BNSF Logistics Acquires Unlimited Freight

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BNSF Logistics, a multi-modal third-party logistics service provider, has acquired Unlimited Freight, located in New Braunfels, Texas.

This acquisition strengthens BNSF Logistics’ service offering for flatbed movements across North America and provides additional local resources to support this global company.

“We are excited to add Unlimited Freight to our family,” BNSF Logistics President Dan Curtis said. “This addition brings talented employees with deep industry experience as well as valuable new customers to our rapidly growing organization and aligns with our goal to increase our geographic footprint.”

© 2018 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.

BNSF Tops Among Class 1 Railroads

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With its carloads up a strong 10.2 percent year-over-year, BNSF Railway is continuing to power towards an outstandingly profitable year.

The strong gains are the highest of all Class 1 railroads.

Of particular note are higher grain shipments, as well as significant increases in metallic ores and sand/gravel.

The grain shipments mean a record number of trains running through Southwest Washington state. The new record surpasses the previous record set pre-Great Recession in 2006.

Just another sign that this is shaping up to be a very good year for BNSF.

© 2018 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.

BNSF Proposes Idaho Bridge Project

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BNSF Railway is looking to build a second rail line over Lake Pend Oreille in Sandpoint, Idaho to reduce congestion on the current one-lane bridge.

The bridge would be adjacent to the existing rail bridge, and the project also includes new bridges over Sand Creek and Bridge Street in Sandpoint.

In Sandpoint, BNSF’s mainline track merges with Montana Rail Link, creating a bottleneck of multiple tracks merging into a single track across Lake Pend Oreille.

Since only one train can cross at a time, trains are often staged, leaving them idling and blocking local roadways while waiting to cross.

The upgrade will reduce congestion, and help move current freight traffic and future volumes more efficiently.

The bridge will also benefit passenger trains that run on BNSF’s main line.

When the second bridge is completed, trains will run in both directions, reducing the need to idle while waiting to cross the existing single track. As a result, local drivers could see shorter wait times on nearby roads that cross BNSF tracks, and the flow of freight and passenger trains will be improved throughout the region.

© 2018 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.

After 2016 Slump, BNSF Has the Trains Rolling

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Back in 2016, BNSF Railway had a shipping slump that saw it idling over a thousand locomotives,

Now, as shipping numbers continue to climb for the second year, the freight railroad is not only back on track, but the locomotives are back on the track.

At the nadir, BNSF had some 1,200 locomotives in storage. It was a highly visible sign of a lower shipping volumes for coal, petroleum, and metals.

In Gillette, Wyoming alone there were 150 locomotives and rail engines sitting idle.

Now, the 1,200 locomotives in storage has been halved to 600, as combined intermodal and carloads numbers are up a solid 4.87% in the aggregate from the same period in 2017.

Of particular note are higher grain shipments, which as of the week ending April 28, 2018, are up 7.78% over the same period last year.

Back in 2016, BNSF also furloughed roughly ten-percent of its workforce. Now, it is offering bonuses up to $25,000 for new hires.

Just another sign that this is shaping up to be a very good year for BNSF.

© 2018 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.