Tag: BNSF

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Berkshire Hathaway’s BNSF Railway, in collaboration with Norfolk Southern Corporation, has announced tentative five-year collective bargaining agreements with The International Brotherhood of Boilermakers (IBB) and The National Conference of Firemen and Oilers (NCFO).

This development follows recent agreements with four other labor unions, providing 17 percent of BNSF’s union-represented workforce with pending tentative agreements. The timing of these agreements, four months before the next bargaining round, ensures covered employees enhanced pay, health care, and vacation benefits.

BNSF President & CEO Katie Farmer emphasized the importance of employee well-being and praised the swift collaboration in reaching these agreements. The deals include a 3.5 percent average annual wage increase, improved vacation policies, and enhanced health care benefits.

IBB and NCFO leaders expressed their satisfaction with the agreements, highlighting the positive impact on their members’ quality of life and commending BNSF’s proactive approach to labor negotiations.

© 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 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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BNSF Railway has completed its multi-year, mainline improvement project in Becker, New Mexico. This new investment is adjacent to the railroad’s Belen facility, the largest fueling facility in North America, and will improve the railroad’s total train capacity through the Southern Transcon route by roughly 30 percent.

“Belen, New Mexico is really the heartbeat of our Southern Transcon, accounting for about a quarter of BNSF’s entire fuel usage and 25% of our volume,” said VP of Service Design Jon Gabriel, who will take over as group vice president of Consumer Products in September. “Having this new added capacity in Becker positions us for tremendous growth, while improving service consistency for all our current customer traffic further reducing our carbon emissions across this key intermodal route.”

The Becker facility includes two new processing tracks at approximately 20,000 feet available for fueling, inspections and crew changes. These additions will minimize the time it takes for trains to stop and get moving again toward their destination.

BNSF’s Belen, New Mexico facility, located on the Clovis Subdivision, serves as the primary hub for BNSF fueling and inspections between Los Angeles and Chicago.

© 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 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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BNSF Railway, part of Berkshire Hathaway, has earned a top score of 100 on the 2024 Disability Equality Index, marking it as a “Best Place to Work for Disability Inclusion” for the second consecutive year.

“This recognition solidifies our efforts toward becoming a more inclusive and diverse place to work,” said Dustin Almaguer, vice president of compliance and audit, and executive sponsor of BNSF’s Disability Inclusion Alliance (DIA) business resource group. “We are committed to building upon our progress so our railroad continues to be a leader in fostering a trusted environment where everyone feels included and valued for who they uniquely are.”

The Disability Equality Index, created in 2015 by Disability and the American Association of People with Disabilities (AAPD), encourages best practices in workplace disability inclusion and equality. Celebrating its 10th year, the index is a comprehensive tool for businesses aiming to positively impact the employment of people with disabilities.

BNSF’s evaluation included categories such as culture and leadership, enterprise-wide access, employment practices, community engagement, supplier diversity, and responsible procurement.

“We’re extremely proud of the 542 national and international companies that are taking a proactive role in leading progress toward disability inclusion, setting a benchmark for others to follow,” said Jill Houghton, President and CEO of Disability. “Their dedication to fostering inclusive workplaces not only attracts top talent but also drives innovation and creates sustainable performance in today’s global market.”

© 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.

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BNSF Railway, a subsidiary of Berkshire Hathaway, has unveiled plans for a new regional rail-served facility near Phoenix, Arizona. Spanning approximately 4,321 acres in northwest Maricopa County, this master-planned logistics hub aims to transform the transportation, storage, and distribution of goods across the Phoenix metro area and the greater southwest.

The facility will feature three interconnected components:

1. Intermodal Facility (1,770 acres): A central hub for rail shipments, utilizing standardized containers and trailers for efficient transfer.

2. Logistics Park (1,420 acres): State-of-the-art sites for warehouse and distribution operations.

3. Logistics Center (1,131 acres): Direct-rail-served sites to support local industry needs.

By integrating into the existing rail network, the facility is set to optimize supply chain operations, enhance efficiency, and minimize environmental impacts. This development is expected to generate significant job opportunities and foster economic growth by encouraging businesses to co-locate.

Jon Gabriel, BNSF’s Vice President of Service Design, emphasized the project’s importance: “As BNSF and our customers adapt to changing market demands and technological advancements, expanding rail capacity in the Phoenix area is crucial. This long-term investment underscores our commitment to our customers and the broader community in Arizona and beyond.”

The new facility will help reduce trucking distances in the region, decreasing air emissions, lowering road maintenance costs, and enhancing road safety.

© 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.

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BNSF Railway, a subsidiary of Berkshire Hathaway, has been ordered to pay $400 million to the Swinomish Tribal Community for the railroad’s continued unauthorized crossing of the tribe’s land in order to reach an oil refinery.

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.

BNSF had offered a settlement sum of $21.7 million, only to have it dismissed by the tribe.

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 asserted that BNSF had operated these trains without obtaining their consent or permission.

© 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.

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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.

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BNSF Railway, a subsidiary of Berkshire Hathaway, has set a remarkable milestone at its Los Angeles Hobart Intermodal Facility in 2023. Handling the world’s largest quantity of domestic intermodal freight, the facility achieved an impressive on-time departure record of 94%, surpassing the previous high of 86% set in 2012. What makes this achievement even more remarkable is that it was accomplished during the safest year on record for accidents and injuries.

Richard Dennison, BNSF California Division General Manager, attributes this success to the strong execution of the local team, a commitment to continuous improvement, and ongoing investments in Southern California.

To further enhance its capabilities, BNSF has expanded capacity at the Hobart facility by 500 spaces and introduced new crane stacking technology. Moreover, the company is dedicated to increasing efficiency at its San Bernardino intermodal facility and has strategically positioned 100 locomotives across the West Coast and other key network locations to mitigate potential service disruptions.

In a significant infrastructure development, BNSF completed a project in 2023 to add approximately 45 miles of triple track between Barstow and Needles, CA. Additionally, the company is progressing with the Barstow International Gateway, a groundbreaking master-planned rail facility expected to revolutionize logistics in the U.S. Upon completion, this facility will drive down supply chain costs, reduce carbon emissions, and offer a more cost-effective rail move compared to traditional truck transportation.

BNSF is also investing in cleaner technologies, including electric hostlers, as well as implementing advanced systems like Load Plan Optimizer and Automated Yard Checks to boost efficiency.

Looking ahead, Dennison emphasizes BNSF’s commitment to adapting to the evolving supply chain landscape through new service offerings and continued capital investments. With a focus on accommodating the growth in Southern California and across its network, BNSF Railway remains at the forefront of innovation in the transportation industry.

© 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

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BNSF Railway Company (BNSF) has revealed its ambitious capital investment plan for the year 2024, totaling a whopping $3.92 billion.

According to Katie Farmer, President and CEO of BNSF, this year’s capital plan epitomizes the company’s steadfast commitment to expansion and enhancement. Farmer emphasized the crucial role these investments play in bolstering BNSF’s operational capacity and ensuring optimal service delivery to customers.

A substantial portion of the investment, approximately $2.88 billion, is earmarked for the maintenance of BNSF’s core network and associated assets. This allocation underscores BNSF’s proactive approach to infrastructure upkeep, aimed at minimizing service disruptions and optimizing network efficiency.

Key maintenance initiatives include the replacement and upgrading of rail infrastructure, including ballast and rail ties, along with the maintenance of rolling stock. Noteworthy projects in this domain encompass track surfacing spanning nearly 13,000 miles, the replacement of 365 miles of rail, and approximately 2.8 million rail ties. Additionally, a significant portion of the capital plan, totaling approximately $440 million, is dedicated to equipment acquisitions, ensuring BNSF’s fleet remains modern and efficient.

In line with its commitment to expansion and efficiency, BNSF has allocated just under $600 million for various expansion projects. This allocation builds upon the company’s substantial investments in expansion endeavors over the past five years, totaling nearly $2.6 billion. These expansion initiatives are designed to accommodate the growth trajectories of BNSF’s diverse clientele across its expansive network.

Noteworthy expansion projects include enhancements along the Southern Transcon route, facilitating increased traffic flow between the West Coast and the Midwest. These initiatives encompass the addition of new track segments in Eastern Kansas, as well as terminal and fueling improvements near Belen, New Mexico. Additionally, in Illinois, BNSF is advancing multi-year intermodal facility expansion projects in Chicago (Cicero), aimed at enhancing operational capabilities. In California, the company is actively pursuing property acquisitions and development for the Barstow International Gateway project, while also completing a multi-year track efficiency improvement project in San Bernardino.

© 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.

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BNSF Railway marked a historic achievement in workplace safety in 2023, recording the lowest injury frequency rate in its 175-year history. The company, comprised of 37,000 dedicated employees, operated its extensive 32,500-mile network without a single loss of life and achieved the lowest number of employee injuries ever. Notably, employee injury rates witnessed a significant reduction of over 20 percent, and injury severity decreased by nearly 35 percent, year-over-year, positioning BNSF as an industry leader in safety.

Katie Farmer, the President and CEO of BNSF, expressed pride in the outstanding performance, stating, “Our success in 2023 is a giant leap towards realizing our ultimate safety vision of a workplace free of accidents and injuries. This monumental achievement is a testament to the commitment and passion for safety demonstrated by everyone at BNSF, especially our Operations teams. We extend our gratitude to all our frontline employees, whose dedication to safety made this significant milestone possible.”

This exceptional safety record in 2023 builds upon a groundbreaking Transportation Safety Agreement (TSA) initiated by BNSF in 2022 with its transportation workforce. The TSA has played a crucial role in enhancing collaboration and communication between management and employees, setting a positive precedent for the industry.

Rich O’Connell, SMART-TD General Chairman, emphasized the commitment to safety among the workforce, stating, “Our membership is committed to safety, and having those closest to the work lead this effort is showing positive results.” Rob Cunningham, Brotherhood of Locomotive Engineers and Trainmen (BLET) General Chairman, added, “We take great pride in our dedicated members who prioritize safety in their daily work. The successful collaboration between labor and management, as evidenced by the TSA, stands as a testament to our effective model.”

As BNSF looks ahead to 2024 and beyond, its safety vision remains unwavering – a workplace completely free of accidents and injuries. Matt Igoe, Executive Vice President and COO, commended the people of BNSF for their commitment to safety, stating, “Our commitment and passion for safety set the people of BNSF apart. The strong finish to the year is clear proof of that. A special thanks to everyone who contributed throughout the year to elevate our safety performance to the next level.” The success of BNSF in 2023 not only reflects a dedication to safety but also underscores the effectiveness of collaborative efforts between employees and management in creating a secure and accident-free workplace.

© 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.