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BNSF

BNSF Recognized as a “Best Place to Work for Disability Inclusion”

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Berkshire Hathaway’s BNSF Railway has been recognized as a “Best Place to Work for Disability Inclusion” by the esteemed Disability Equality Index (DEI). With an impeccable score of 100, BNSF has showcased its unwavering dedication to cultivating an inclusive workplace that honors the talents and contributions of every individual, including those with disabilities.

The Disability Equality Index, an all-encompassing benchmarking tool collaboratively developed by the American Association of People with Disabilities (AAPD) and Disability:IN, commends organizations that actively champion disability inclusion and parity. By attaining the highest score, BNSF secures its position among the industry’s foremost companies committed to constructing diverse and inclusive work environments.

Debra Ross, BNSF’s Assistant Vice President of Talent Management, expressed her profound pride in the company’s remarkable accomplishment.

“At BNSF, we firmly subscribe to the belief that diversity and inclusion must encompass everyone,” asserted Ross. “We feel deeply honored to receive this prestigious accolade, a testament to our unwavering endeavors in supporting individuals with disabilities and forging an environment where every employee feels empowered to embrace their authentic selves wholeheartedly, every single day.”

BNSF’s commitment to nurturing a diverse and inclusive workforce is unmistakable through its array of business resource groups, notably the Disability Inclusion Alliance. These groups work tirelessly to promote awareness, education, and equitable access to resources within the organization.

© 2023 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 a 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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BNSF

BNSF Ordered to Ship Millions of Tons of Navajo Coal

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In a recent development, Berkshire Hathaway’s BNSF Railway has been directed to transport a significant amount of coal from the Navajo Transitional Energy Company’s facility in Montana to Westshore Terminals in British Columbia, Canada. This order comes as a result of a preliminary injunction issued by the Surface Transportation Board on June 23.

According to the ruling, BNSF Railway is required to transport approximately 4.2 million tons of coal from NTEC’s Spring Creek mine to the export facility in British Columbia during 2023. Additionally, as train sets and crews become available, BNSF will need to transport an additional one million tons. This effectively translates to moving 23 trains per month of NTEC’s coal immediately, and an extra six trains per month in due course. To ensure transparency and progress, the Board has mandated weekly status reporting by the parties involved.

The Surface Transportation Board determined that NTEC had a strong likelihood of succeeding in its claim that BNSF had violated its statutory common carrier obligation to transport the requested volume of coal. The Board found NTEC’s request for service to be reasonable, considering BNSF’s historical performance and the railway company’s own statements regarding its capacity to meet the minimum service requirements. The Board also acknowledged the potential irreparable harm NTEC would suffer, including damage to its reputation as a reliable global coal supplier, which monetary compensation alone could not rectify.

In balancing the needs of other BNSF customers, the Board concluded that granting the injunction was not detrimental. It was evident from the record that BNSF could comply with the order while still fulfilling the requirements of other shippers. The Board further recognized the public interest in accessing the rail network and emphasized the critical role NTEC plays in the Navajo Nation’s economy.

Chairman Oberman highlighted the significance of the common carrier obligation, describing it as a core principle governing the freight railroad industry and a key responsibility of railroads to the nation’s economy. The Board’s decision upholds the notion that railroads are held to a higher standard of responsibility compared to most private enterprises. This ruling reflects the majority’s belief that a railroad must fulfill its common carrier duty by providing service within its capacity when requested by a customer.

© 2023 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 a 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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BNSF

BNSF to Build Second Logistics Center in Texas

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Berkshire Hathaway’s BNSF Railway is expanding its operations yet again, this time with the establishment of a brand-new logistic center in Gunter, Texas. Spanning an impressive 200 acres, this facility marks the railroad giant’s second logistics center in the Lone Star State.

The announcement came at a community engagement event held at Gunter’s City Hall on the 27th of June. BNSF Railway showcased its ambitious plans to attendees. Jeanelle Davis, BNSF’s executive director of public affairs, explained that the logistic center’s primary purpose is to cater to customers engaged in light manufacturing, acting as a crucial link in their supply chain.

Unlike privately owned business parks, BNSF’s logistic centers offer a distinct advantage – direct-rail service. This means that businesses located within these centers can benefit from the convenience and efficiency of having direct access to BNSF Railway’s extensive network. By investing directly in these logistics centers, BNSF demonstrates its commitment to supporting businesses and fostering economic growth.

The decision to establish a logistic center in Gunter, Texas, highlights the region’s strategic significance and its potential for future growth. BNSF Railway’s presence will undoubtedly attract businesses involved in light manufacturing, providing them with a prime location that optimizes their logistical operations.

© 2023 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 a 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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BNSF

Ready to Roll: BNSF Poised for Intermodal Volume Surge on West Coast

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Berkshire Hathaway’s BNSF Railway is gearing up to accommodate the rising intermodal volume through West Coast ports following the announcement of tentative contract agreements by the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA). This development sets the stage for an exciting new chapter in the future of West Coast ports, and BNSF has made substantial investments over the past few years to prepare for the immediate and long-term growth potential in the intermodal segment, which happens to be their largest segment.

Katie Farmer, President and CEO of BNSF, expressed her enthusiasm, stating, “We are beginning an exciting chapter in the future of the West Coast ports, and BNSF has made key investments over the past several years in preparation to support both immediate and long-term volume growth for intermodal, our largest segment with the most growth potential.”

BNSF has spared no effort in expanding its capacity and enhancing its infrastructure. Since 2019, the company has invested over $2 billion in capital expansion, with a focus on increasing the overall capacity of tracks, railcars, and facilities. These investments have resulted in the addition of 58 miles of main line track capacity, approximately 30,000 feet of new production tracks, and around 6,000 new parking spaces at BNSF intermodal facilities. Moreover, BNSF is actively incorporating new technologies to enhance consistency, capacity, and customer experience.

Tom Williams, Group Vice President of Consumer Products at BNSF, elaborated on their strategic approach: “We’re creating an integrated intermodal network, both physically and digitally to ensure we are a supply chain partner of choice into the future.”

To facilitate the increasing intermodal volume, BNSF has recently expanded capacity at its intermodal facilities on the West Coast. They have augmented the parking capacity at their Los Angeles intermodal facility by 500 spaces and implemented new crane stacking technology. Additionally, they have enhanced transloading capacity in the Seattle region. Furthermore, BNSF is actively working on a multi-year project to improve efficiency at its San Bernardino intermodal facility in the Inland Empire. To address potential service disruptions, BNSF has positioned 100 locomotives as a “ready fleet” across the West Coast and other strategic network locations.

BNSF has also focused on expanding capacity and capabilities at its inland intermodal facilities. Notable projects include the addition of 3 miles of production tracks, over 2,000 parking spaces, and a new multi-lane ingate at the BNSF intermodal facility in Alliance, TX. Similarly, at Logistics Park Chicago (LPC) in the greater Chicago area, BNSF has leveraged remotely operated cranes to maximize capacity and improve throughput, gaining 18 hours of productivity each day. They have also expanded parking capacity by approximately 20% through ongoing expansion work at the BNSF Cicero intermodal facility. BNSF has secured an additional 2,000 parking stalls in secondary locations near its intermodal facilities to accommodate volume surges effectively.

Looking ahead, BNSF has planned several critical projects for 2023. They are currently working on adding approximately 45 miles of triple track between Barstow and Needles, CA, with about 30 miles expected to be completed this year. Furthermore, a 50-mile double track segment in Kansas is nearing completion, closing one of the last major single track sections on the Southern Transcon, which connects the West Coast to Chicago. BNSF has also initiated the construction of a new second main track bridge over the Missouri River at Sibley, a significant project expected to span the next couple of years. These developments will not only enhance transit times and consistency but also improve BNSF’s ability to handle seasonal volume fluctuations across the Southern Transcon.

In addition to infrastructure investments, BNSF is actively deploying new technologies to improve consistency, capacity, and customer experience. They are enhancing their driving interface app RailPASS and implementing a new pickup appointment system for stacked units at LPC, slated to launch in the fourth quarter of 2023. These innovations aim to reduce dray drivers’ time spent in facilities and improve overall efficiency. BNSF is also leveraging various technologies to optimize unit loading and de-ramping, improve inventory accuracy, and enable real-time tracking of shipment parking locations. These efforts will contribute to a seamless driver pick-up experience and enhance train loading efficiency.

With an array of measures in place to boost network fluidity, velocity, and capacity, BNSF is well-prepared to handle the increased demand through West Coast ports. Their commitment to meeting customer service expectations and their continued investments in infrastructure and technology position them as a reliable and efficient supply chain partner in the future.

© 2023 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 a 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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BNSF

BNSF Launching Intermodal Service From Houston Port to Dallas & Denver

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Berkshire Hathaway’s BNSF Railway, in a bid to enhance their service offerings, has revealed plans to launch intermodal service options from the Port of Houston to two major destinations: Dallas/Fort Worth and Denver.

Commencing on June 2, this new endeavor will witness BNSF providing on-dock rail service from Barbours Cut Container Terminal at the Port of Houston.

The intermodal facility in Alliance, Texas, will serve as a key point of connection for this service, catering to the bustling Dallas/Fort Worth area. Additionally, BNSF’s intermodal facility in Denver will be another vital destination accessible through this service.

By introducing these intermodal service options, BNSF aims to bolster supply-chain efficiency while capitalizing on the escalating demand for intermodal transportation at the Port of Houston.

The Port of Houston, being one of the busiest ports in the United States, serves as a critical hub for international trade and commerce. The availability of efficient and reliable intermodal services is vital for facilitating the smooth flow of goods and ensuring seamless connectivity between various regions. BNSF’s decision to launch this new service demonstrates their foresight and understanding of the market’s demands.

The intermodal sector has witnessed significant growth in recent years, with businesses increasingly recognizing the benefits of integrating multiple modes of transportation to optimize their supply chains.

© 2023 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 a 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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BNSF

BNSF Rebuffed in $21.7 Million Settlement Offer With Swinomish Tribe

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BNSF Railway, a subsidiary of Berkshire Hathaway, recently found their attempt to settle a lawsuit with the Swinomish Tribal Community met with rejection.

The company had offered a settlement sum of $21.7 million, only to have it dismissed by the tribe. In response, the freight railroad has requested the involvement of a federal judge to appoint an arbiter who can determine an appropriate settlement, as the tribe did not provide a response to BNSF’s offer.

The lawsuit in question was initially filed back in March 2015, asserting that BNSF had breached the terms of a right-of-way easement granted to them by the railroad.

According to the Swinomish Tribe, BNSF had exceeded the agreed limits on train and car crossings outlined in the agreement. The violation was deemed to be conscious and deliberate by U.S. District Court Judge Robert Lasnik, who issued a ruling on March 27. Judge Lasnik also pointed out that this transgression was motivated by the pursuit of profits.

The primary concern of the Swinomish Tribe revolves around the potential risks posed to their waterways by the transportation of oil via trains passing over the Swinomish Channel. This channel acts as a crucial link between Skagit Bay in the south and Padilla Bay in the north. The tribe’s historical treaty rights safeguard their fishing activities, and they are apprehensive that BNSF’s transportation of Bakken crude oil, in a manner and quantity that contravenes the explicit terms of the easement agreement, may jeopardize their way of life. Furthermore, the tribe asserts that BNSF had operated these trains without obtaining their consent or permission.

Should BNSF lose the lawsuit, they could potentially face significant damages.

The Swinomish Indian Tribal Community holds the status of a federally recognized tribe residing in the Pacific Northwest, specifically in the state of Washington. Their ancestral connection to the Skagit River-Delta of Puget Sound spans numerous centuries, during which they have relied on fishing in the region’s brackish waters. The tribe’s historical treaty rights serve to safeguard their cultural heritage and way of life, and their deep-rooted ties to the land and waterways are self-evident.

The tribe’s concerns regarding the threat posed by oil trains to their waterways are not without foundation. The Swinomish Channel, which the trains traverse, stretches over 11 miles and links Skagit Bay in the south to Padilla Bay in the north, forming a separation between Fidalgo Island and mainland Skagit County. Any accidents or spills involving these trains could have dire consequences for the local environment, potentially leading to water contamination, harm to aquatic life and wildlife, as well as damage to tribal lands.

The Swinomish Tribe’s anxieties materialized on March 16 when two BNSF locomotives derailed on the Swinomish Indian Tribal Community Reservation, resulting in the spillage of diesel fuel. As a result, cleanup efforts were undertaken, involving the removal of roughly 2,100 cubic yards of contaminated soil and 4,300 gallons of groundwater from the site.

This struggle for their land rights is not the first instance in which the tribe has had to contend with external forces. The passage of trains through the tribe’s land has a long and contentious history, beginning with the laying of the original tracks in the late 1800s, without the consent of the Swinomish or the U.S. government. These tracks intersect with the northern boundary of the reservation, and the Swinomish, as the contemporary political successor to certain tribes and bands that signed the 1855 Treaty of Point Elliott, initially filed a lawsuit against the railroad in 1976.

© 2023 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 a 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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BNSF

BNSF Railway’s Union Agreement Continues to Resolve Sick Days Issue

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BNSF Railway, a subsidiary of Berkshire Hathaway, has announced that members of the Transportation Communications Union (TCU)/Brotherhood of Railroad Carmen (BRC) will now receive an additional four paid days off to use as sick days. Furthermore, these members will gain the ability to convert up to three personal leave days to sick days each year, which is a great benefit for the affected team members.

BNSF’s announcement continues the progress it is making in resolving a key area of contention between the railroad and its employees. It recently reached agreement with the International Brotherhood of Boilermakers (IBB) for paid sick leave, and previously announced that it would grant individual paid sick days to its railroaders who are members of the Transportation Communications Union (TCU) and the National Conference of Firemen and Oilers (NCFO); and provide sick leave to its railroaders who are members of the International Association of Machinists and Aerospace Workers (IAM), the BRS, and the International Association of Sheet Metal, Air, Rail and Transportation Workers-Mechanical and Engineering Department (SMART-MD).

© 2023 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 a 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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Commentary

Commentary: BNSF’s Swinomish Trial Looks Headed for a Train Wreck

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BNSF, a subsidiary of Berkshire Hathaway, is facing a costly lawsuit by the Swinomish Tribal Community over the crossing of its reservation in Washington state and looks ever more to be headed down the wrong track.

The lawsuit, initially filed in March 2015, claims that BNSF violated the terms of a right-of-way easement granted to the railroad by running more trains and cars than allowed under the agreement.

On March 27, a federal judge ruled that BNSF “willfully, consciously and knowingly exceeded the limitations on its right of access” from September 2012 to May 2021. U.S. District Court Judge Robert Lasnik also noted that this action was “in pursuit of profits.”

The Swinomish Tribe is concerned that the oil trains are a potential threat to their waterways, as they pass over the Swinomish Channel, which connects Skagit Bay to the south and Padilla Bay to the north.
The tribe’s historic treaty rights protect their fishing rights, and they fear that BNSF’s shipment of Bakken crude across the right-of-way in a manner and in quantities that violate the explicit terms of the easement agreement could put their way of life at risk. The Swinomish also claim that BNSF ran the trains without their consent or permission.

The railroad is facing the potential of significant damages if it loses the lawsuit.

The Swinomish Indian Tribal Community is a federally recognized tribe located in the Pacific Northwest region of the United States, specifically in the state of Washington. They have lived in the Skagit River-Delta of Puget Sound for many centuries, fishing the region’s brackish waters. The tribe’s historic treaty rights protect their way of life and cultural heritage, and they are deeply connected to the land and waterways of the region.

The tribe’s concerns about the potential threat to their waterways posed by the oil trains are not unfounded. The Swinomish Channel, which the trains pass over, is an 11-mile-long saltwater channel that connects Skagit Bay to the south and Padilla Bay to the north, separating Fidalgo Island from mainland Skagit County. Any spill or accident involving the trains could have severe consequences for the local environment, including the contamination of the water supply, harm to fish and wildlife, and damage to tribal lands.

The Swinomish’s fears were realized on March 16 when two BNSF locomotives derailed on the Swinomish Indian Tribal Community Reservation, spilling diesel fuel. In total, cleanup crews removed approximately 2,100 cubic yards of contaminated soil and 4,300 gallons of groundwater from the site.

This is not the first time that the tribe has had to fight for their rights over the use of their land. Train travel across the tribe’s land has a long contentious history, with the original track having been laid in the late 1800s without the consent of the Swinomish or the US government. The tracks cross the northern edge of the reservation, and the Swinomish, as the present-day political successor-in-interest to certain of the tribes and bands that signed the 1855 Treaty of Point Elliott, first sued the railroad in 1976, alleging a century of trespassing on tribal land. The resulting settlement led to the 1991 Easement Agreement that allowed only the 25-car train limit without the Tribe’s permission.

Despite the agreement, BNSF began running its Bakken oil trains across the Reservation without asking or even notifying the tribe, a move that the tribe views as a direct violation of the agreement. The tribe has repeatedly told BNSF to stop, but the trains kept rolling. The Swinomish have shown willingness to negotiate with BNSF, but their concerns for their environment, cultural heritage, and way of life are not negotiable.

Heading for a Costly Resolution?

The lack of respect shown by BNSF towards the Swinomish Indian Tribal Community’s treaty rights, makes it highly probable that this lawsuit will lead to a costly end for BNSF. It doesn’t require clairvoyance to foresee this outcome. The railroad seems to be on a one-way track towards an expensive train wreck.

© 2023 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 a 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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BNSF

BNSF and 3 More Unions Agree to Sick Leave

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BNSF Railway and three more of its unions have agreed to an additional four paid days off to use as sick days. The unions are the International Association of Machinists and Aerospace Workers (IAM), the Brotherhood of Railroad Signalmen, and the mechanical and engineering department of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-MD).

The Transportation Communications Union, and the National Conference of Firemen & Oilers had already agreed to additional paid sick leave in February .

“BNSF remains committed to continued dialogue, including the potential addition of paid sick days for those crafts that did not already have individual paid sick days prior to the recent national bargaining round,” the railroad stated in a news release.

Starting in December of last year, District 19 set up meetings with BNSF to talk about a number of important issues, including paid sick time. Through a number of in-person meetings and Zoom calls, District 19 leadership was victorious in achieving paid sick time for our members while protecting all other negotiated benefits.

“This is a historic win for our members as we have been fighting for paid sick time for quite some time,” IAM District 19 BNSF Lead General Chairman Kenny Krause said.

District 19 was also able to make improvements and modernize the agreement by incorporating electronic mailing, allowing for better and faster transfer of information. This will also help to speed up the claims process.

© 2023 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 a 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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BNSF

BNSF Agrees to Sick Leave With Two Unions

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BNSF Railway has become the fourth of the seven Class I railroads to announce an agreement for paid sick leave with some unionized workers, reaching agreement with the Transportation Communications Union and the National Conference of Firemen and Oilers.

The TCU agreement applies to insourced intermodal equipment operators, which represent a majority of the union’s members at the BNSF. Other TCU members already had paid sick days in their agreement.

“We hope these are the first of a series of new agreements across our other crafts who did not already have individual paid sick days prior to the recent national bargaining round,” BNSF said in a statement. “Today’s agreements are part of a collaborative effort aimed toward modernizing the work environment and addressing quality of life.”

As in agreements at other railroads, members of the two unions will receive four paid days off to use as sick days and will have the ability to convert up to three personal leave days to sick days each year.

BNSF joins CSX Transportation (which has agreements with six unions), Union Pacific (two unions), and Norfolk Southern (one union) in announcing sick-time agreements with some labor unions.

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 a 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.