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BNSF Railway, a subsidiary of Berkshire Hathaway, has reported that investments from its customers soared to over $4.1 billion in 2023, marking a significant contribution to local economies and job creation. Notable investments hailed from key supply chain partners and customers such as Cenovus Energy and Green Bison Soy Processing LLC. These investments have not only bolstered infrastructure but have also spurred the creation of more than 4,200 new jobs in communities where BNSF operates.
The surge in investments underscores a collaborative effort between BNSF and its customers to tailor rail development solutions to meet specific needs, thereby enhancing supply chains and driving economic growth. Chris Danos, Assistant Vice President of Economic Development at BNSF, emphasized the company’s commitment to creating customizable solutions that not only streamline logistics costs but also foster sustainability.
Throughout 2023, BNSF facilitated various industrial and agricultural projects across its network, aiding in the transportation of commodities crucial to local economies. Two standout examples include:
Cenovus Energy: With a substantial investment, the Superior Refinery in Superior, Wisconsin, acquired by Cenovus Energy in 2021, underwent reconstruction and reopened its doors in 2023. The rail-served refinery, which produces asphalt, vacuum gas oil, light cycle oil, and LPG products, employed over 350 people and contributed significantly to the economic vitality of the Superior-Duluth area. Annual payroll exceeded $29.9 million, while substantial spending with contractors and vendors further boosted local economies.
Green Bison Soy Processing LLC: In Spiritwood, North Dakota, an investment of approximately $350 million saw the establishment of Green Bison Soy Processing, a soybean processing plant operated by ADM & Marathon Petroleum Corporation. This facility addresses the growing demand for renewable fuels, particularly renewable green diesel, sourcing and processing local soybeans. The complex, featuring over 22,000 feet of new track, can annually ship 14,000 carloads of outbound soy meal and vegetable oil. Notably, the plant has created hundreds of regional jobs and generated an additional 75 positions.
The influx of investments in 2023 represents the largest commitment by BNSF customers and local economic development organizations to new or expanded facilities in the past five years. These endeavors highlight the pivotal role of rail infrastructure in driving economic prosperity and fostering sustainable growth in communities across the BNSF network.
© 2024 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.