Tag: BNSF

(BRK.A), (BRK.B)

On December 19, BNSF President and CEO Katie Farmer issued a statement responding to Union Pacific’s merger application filing with the Surface Transportation Board (STB), reiterating BNSF’s strong opposition to the deal.

Farmer said that while BNSF is still reviewing the filing, nothing seen so far changes the company’s view that the merger would harm competition and pose long-term risks to the U.S. economy and consumers. She warned that the transaction would reduce shipping options, drive up freight rates, and ultimately increase prices for consumers, while delivering benefits primarily to shareholders rather than customers.

Citing past rail mergers, Farmer emphasized the risk of serious service disruptions and broader economic impacts. She noted that the STB’s strengthened merger rules require applicants to prove their deal enhances competition and serves the public interest—standards BNSF believes Union Pacific has failed to meet.

Farmer concluded that BNSF remains focused on achieving operational improvements through partnerships and collaboration, which she said can deliver immediate, tangible benefits to customers without the risks of a merger.

© 2025 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.

(BRK.A), (BRK.B)

BNSF Railway has asked the Surface Transportation Board (STB) to immediately review and enforce conditions established during the 1996 Union Pacific–Southern Pacific merger, saying Union Pacific (UP) has spent decades undermining competition and limiting customer choice.

In a new petition, BNSF argues that UP has repeatedly obstructed efforts to preserve competitive rail service that the STB required as a condition of approving the historic merger. Despite negotiations, oversight proceedings, and formal petitions over the years, BNSF says many shippers now have fewer rail options than before UP absorbed Southern Pacific.

“With UP now proposing another unprecedented merger, this time with Norfolk Southern, the stakes for shippers nationwide could not be higher,” said Jill Mulligan, BNSF’s Executive Vice President and Chief Legal Officer. She urged the STB to ensure that commitments made nearly 30 years ago are honored before regulators consider any new consolidation.

BNSF’s filing asks the STB to review how the original merger conditions have been implemented, enforce BNSF’s competitive access rights, and modify existing conditions if necessary to protect the public interest. The railroad is also seeking a procedural schedule so all parties can fully present evidence.

BNSF argues that fair competition is essential for reliable service and reasonable rates, and says UP’s persistent resistance to the 1996 conditions must be resolved before any new merger reshapes the industry and impacts supply chains nationwide.

© 2025 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.

(BRK.A), (BRK.B)

BNSF Railway and COFC Logistics announced a major expansion of COFC’s intermodal service network, extending coverage into the eastern United States and Monterrey, Mexico, through a partnership with GMXT.

The move will provide Intermodal Marketing Companies (IMCs)—particularly asset-light operators—with broader container availability, new market access, and scalable solutions across North America. The expansion includes entry into key Northeast and Southeast U.S. markets, along with seven new ramp pairs and enhanced service schedules tailored to IMCs.

“This expansion is about empowering IMCs with the tools they need to compete and grow,” said Jonathan Mulch, COFC Logistics Vice President of Sales and Marketing. “Our asset-light partners can now tap into a broader ecosystem with confidence in our service reliability.”

BNSF Group Vice President of Consumer Products Jon Gabriel added, “By opening and connecting a network across more of North America, we’re not just adding lanes—we’re adding opportunity to the supply chain.”

Luis Hernandez, GMXT Vice President of Intermodal, noted that the partnership strengthens capacity and service quality for cross-border trade.

With expanded container access, optimized schedules, and new market reach, the initiative aims to give IMCs greater flexibility, efficiency, and growth opportunities in the competitive intermodal logistics sector.

© 2025 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.

(BRK.A), (BRK.B)

BNSF Railway will open a 42-acre intermodal facility in Oklahoma City this November, offering streamlined and cost-efficient transportation options for Hobby Lobby Stores, Inc.

The project stems from a partnership with the Oklahoma City-based retailer, which sought a simpler and more economical way to move containers from the ports of Los Angeles and Long Beach to its local distribution network.

“This expansion shows how we listen to our customers’ needs and deliver solutions that create shared growth opportunities across the region,” said Jon Gabriel, BNSF Group Vice President of Consumer Products. He noted the facility could eventually eliminate up to 40,000 truck moves from highways each year.

Hobby Lobby CFO Jon Cargill said the partnership will help the company maintain efficiency while continuing to provide value to customers.

Looking ahead, the facility will also be available to Oklahoma farmers and other businesses for exports to the West Coast.

© 2025 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.

(BRK.A), (BRK.B)

BNSF Railway and CSX Transportation announced the launch of new intermodal service options designed to give shippers seamless, efficient coast-to-coast solutions.

The expanded offerings include direct domestic routes linking Southern California with Charlotte, North Carolina, and Jacksonville, Florida, as well as a new service connecting Phoenix, Arizona, and Atlanta, Georgia. The latter aims to shift freight from highway to rail through a smooth handoff between the two railroads.

On the international side, new direct intermodal services will connect the Port of New York and New Jersey, and Norfolk, Virginia, with Kansas City. To further support growth, BNSF will also add two new 10,000-foot sidings between Phoenix and Flagstaff, improving efficiency on its busy Southern Transcon corridor.

“This collaboration between BNSF and CSX demonstrates the power of partnership, delivering greater flexibility, efficiency, and value for our customers,” said Jon Gabriel, BNSF Group Vice President of Consumer Products.

Drew Johnson, CSX Vice President of Intermodal Sales and Marketing, added, “Together, we’re opening access to key markets and strengthening options for our mutual customers.”

© 2025 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.

(BRK.A), (BRK.B)

BNSF Railway has introduced a new expedited rail service connecting Los Angeles to Houston in just three days. The service officially began operations on July 10 and marks a significant step forward in offering fast, reliable alternatives to traditional over-the-road shipping.

“Our expedited service from Los Angeles to Houston is a strategic development that not only extends BNSF’s market reach but also connects two major metropolitan areas more effectively,” said Jon Gabriel, BNSF Group Vice President, Consumer Products.

The new service runs between BNSF’s Hobart intermodal facility in Los Angeles and its Pearland facility in the Houston area. It is designed to meet growing demand for faster and more consistent freight movement, especially for shippers currently trucking freight from Dallas-Fort Worth to Houston.

Leveraging BNSF’s busy Southern Transcon route, the service offers improved transit times, expanded capacity, and a compelling rail alternative for time-sensitive shipments. The initiative is part of BNSF’s broader effort to convert more over-the-road freight to rail, providing cost-effective, environmentally friendly supply chain solutions.

© 2025 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.

(BRK.A), (BRK.B)

BNSF Railway, in partnership with Norfolk Southern (NS) and the Northwest Seaport Alliance (NWSA), has launched a redesigned intermodal rail service that reduces transit time by three days for freight moving from the Pacific Northwest (PNW) to Chicago and beyond.

The new Inland Point Intermodal (IPI) service features a more efficient process at the NWSA ports of Seattle and Tacoma, where trains will now be built in under two days. This accelerated turnaround enables seamless transfer via BNSF’s Northern Transcon route, improving speed and consistency for shippers.

“This collaboration is the result of listening to our customers, who want to shift more freight to rail while lowering inventory and transportation costs,” said Jon Gabriel, BNSF Group Vice President, Consumer Products.

Thanks to operational enhancements, NWSA now reports the lowest rail dwell time in the U.S. so far this year. The updated service delivers cargo from ship to Chicago in just six days—the fastest transit time from any PNW port.

Norfolk Southern and BNSF will streamline the journey further by consolidating handoffs at a single Chicago location (NS-Ashland), facilitating quick crew swaps before cargo continues to inland destinations such as Ohio and Pennsylvania.

“This partnership is a great example of how we can innovate to meet the evolving needs of shippers,” added NWSA CEO John Wolfe.

The new service is effective immediately.

© 2025 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.

(BRK.A), (BRK.B)

BNSF Railway has unveiled its $3.8 billion capital investment plan for 2025, emphasizing safety, reliability, and future readiness to meet customer needs.

“Our 2025 capital plan reflects BNSF’s commitment to supporting customer growth while operating a safe, efficient, and reliable railroad,” said Katie Farmer, President and CEO.

The majority of the investment—$2.84 billion—will focus on maintenance to keep the network in optimal condition. Projects include replacing 2.5 million rail ties, 410 miles of rail, and conducting surfacing work across 11,400 miles of track. These efforts aim to minimize service disruptions and enhance capacity.

Additionally, $535 million is allocated for expansion and efficiency initiatives, building on over $2.6 billion invested in similar projects over the past five years. Key developments include:

Completing the Cicero Intermodal Facility expansion in Chicago.

Advancing the Barstow International Gateway project in California.

Initiating plans for a future intermodal facility in Phoenix, Arizona.

BNSF will also continue constructing a third main line track near Needles, California, and increasing siding capacity near Phoenix to boost network capacity and service reliability.

This investment underscores BNSF’s dedication to meeting current and future demands while delivering strong service to its customers.

© 2025 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.

(BRK.A), (BRK.B)

The Bureau of Land Management (BLM) has approved the sale of approximately 30 acres of public land to Burlington Northern Santa Fe Railway (BNSF) for the development of the Barstow International Gateway, a transformative rail facility project. The land, located 0.5 miles west of Barstow in San Bernardino County, California, is isolated and surrounded by BNSF-owned private property, making it difficult to manage. The sale will be conducted at no less than the appraised fair market value.

BNSF plans to invest over $1.5 billion to create the 4,500-acre state-of-the-art facility, the first of its kind developed by a Class 1 railroad in the United States. The integrated rail yard, intermodal facility, and warehouses will support the seamless transfer of freight from international containers to domestic containers.

The project aims to streamline cargo transport by transferring containers directly from ships at the Ports of Los Angeles and Long Beach to trains through the Alameda Corridor, up to Barstow. At the Barstow International Gateway, cargo will be processed using clean-energy-powered equipment, staged, and built into trains for nationwide transport. Westbound freight will similarly be processed to enhance efficiency for shipments to ports and California terminals.

This facility is expected to significantly enhance freight movement, reduce congestion at ports, and support sustainable logistics across the region.

© 2025 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.