Tag: BNSF

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In a strategic collaboration, BNSF Railway, GMXT, and J.B. Hunt Transport Services Inc. have announced the launch of a cutting-edge intermodal service connecting key regions in Northern and Central Mexico to the United States. This groundbreaking initiative is set to commence operations on January 1, 2024, offering businesses a faster and more sustainable transportation solution for seamlessly moving goods across the border.

BNSF Railway, recognized as North America’s largest intermodal rail, joins forces with GMXT, Mexico’s leading rail provider, and J.B. Hunt Transport Services Inc., a major player in supply chain solutions. The collaboration aims to enhance connectivity between Monterrey, Silao-Bajio, and Pantaco-Mexico City regions through the Eagle Pass, Texas border gateway.

This upcoming intermodal service is designed to be a day faster than the existing route from Monterrey to Chicago, providing customers with a reliable and eco-friendly option for cross-border transportation. By leveraging the capabilities of the largest intermodal railroad in the U.S., the largest railroad in Mexico, and the largest domestic intermodal carrier, this joint effort ensures a seamless connection within the North American intermodal network.

Katie Farmer, BNSF President and CEO, highlighted the commitment to growth in Mexico, stating, “Our organizations are committed to growth in Mexico and this joint service offering is a direct reflection of that commitment.” The collaboration is positioned to facilitate economic expansion and trade opportunities between the two nations.

The intermodal containers will interchange at Eagle Pass, Texas, with GMXT operating trains between the border crossing and Monterrey, Silao-Bajio, and Pantaco-Mexico City six days a week. An alternative option via the El Paso, Texas border gateway will also be available, providing flexibility for businesses.

John Roberts, CEO of J.B. Hunt, emphasized the resilience and cross-border solutions this new service brings to customers, stating, “This new service offering will provide resilient, cross-border solutions that give our customers optionality to support their growing supply chain needs in Mexico.” The collaboration aims to capitalize on the cost savings and sustainability benefits inherent in intermodal services, promoting a more efficient and environmentally friendly approach to transportation.

J.B. Hunt, with the largest intermodal fleet in North America boasting over 117,000 containers and nearly 7,000 trucks, stands at the forefront of this innovative venture. As the intermodal landscape evolves, this collaborative effort is poised to unlock new opportunities for businesses looking to thrive in the expanding markets of Mexico.

© 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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In a groundbreaking collaboration, J.B. Hunt Transport Services Inc. and BNSF Railway, two major players in North America’s supply chain and intermodal rail sectors, have introduced Quantum, a game-changing intermodal service designed to cater to the service-sensitive freight needs of customer supply chains.

Quantum is set to redefine the landscape of intermodal shipping by offering the consistency, agility, and speed required to transport service-sensitive highway freight efficiently using rail. The service is tailored to each customer’s unique requirements, considering service expectations, transit needs, and operational procedures.

The Quantum team, comprising operators from both J.B. Hunt and BNSF, is headquartered at the newly established Intermodal Innovation Center in Fort Worth, Texas. This collaborative hub ensures seamless integration of workflow at every stage of the intermodal shipping process, from planning to execution and oversight to exception management.

Darren Field, President of Intermodal at J.B. Hunt, emphasized, “Quantum allows customers with service-sensitive freight to benefit from the cost savings of intermodal, while reducing their carbon footprint and maintaining the level of service and consistency needed in their supply chains.”

Quantum customers can expect up to 95 percent on-time delivery service, approximately a day faster than traditional intermodal services. The planning process involves aligning forecasts for dray, container, and rail capacity with customer needs, incorporating priority drayage and rail movement to ensure faster and more consistent transits.

Tom Williams, Group Vice President of Consumer Products at BNSF, expressed excitement about bringing this innovative vision to life, stating, “Quantum will provide a faster and more consistent intermodal solution to customers, fostering continued collaboration between our companies to create the intermodal solution of the future.”

The Quantum team provides 24/7 oversight of every Quantum load, swiftly detecting and resolving issues before they impact final delivery. The integration of service and technology enables the team to identify variability and recommend alternate solutions, including standard intermodal, expedited intermodal, and over-the-road options.

Spencer Frazier, Executive Vice President of Marketing and Sales at J.B. Hunt, highlighted, “Quantum provides the exceptional intermodal service needed to consistently meet the demands of the most complex freight. Its solutions are flexible to address supply chain challenges in real time.”

Quantum, positioned as a premium intermodal service, offers flexible pricing based on individual needs, ranging between traditional intermodal and over-the-road service costs. J.B. Hunt estimates that as many as 7 to 11 million loads of freight could potentially convert from over-the-road truck service to intermodal service, significantly reducing carbon emissions by an average of 60 percent compared to traditional truck transportation.

The name “Quantum” pays homage to the historic collaboration between J.B. Hunt and BNSF (formerly Santa Fe Railway), dating back to 1989 when the two companies launched the industry’s first modern intermodal transportation solution with 150 trailers. Now, Quantum stands as a testament to their ongoing commitment to innovation and sustainability in the realm of intermodal freight solutions.

© 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 Railway and The International Association of Sheet Metal, Air, Rail and Transportation Workers, Transportation Division (SMART-TD) have reached a system-wide agreement that will significantly benefit ground service employees at BNSF.

The tentative agreement, which was announced on September 28, follows up on the mandatory local bargaining items from last year’s Presidential Emergency Board (PEB) and goes well beyond.

This breakthrough tentative agreement comes after several months of negotiations, and pending ratification by SMART-TD’s members at BNSF, it is expected to bring positive changes to both the professional and personal lives of these employees.

The agreement will allow for more predictable scheduling (with rest days available to all pool and extra board employees) and enables all ground service employees to take paid sick days, with many additional quality of work/life changes. These enhancements will not only benefit current employees, but they will also contribute to more consistent service for BNSF’s customers, and aid in the recruitment and retention of employees.

© 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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Berkshire Hathaway’s BNSF Railway is selling the brokerage operations of BNSF Logistics to J.B. Hunt Transport Services Inc., one of the largest supply chain solutions providers in North America. Terms of the deal were not disclosed.

BNSF Logistics provides third-party logistics services for the movement of full truckload, flatbed, temp-controlled, drayage, expedited, and less-than-truckload services to a large and diverse group of customers through both an employee and agent model. BNSF Logistics also provides warehouse, retail specialty, heavy-haul and project services, which are not included in the transaction.

“This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers,” said Katie Farmer, President and CEO of BNSF Railway. “This continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services.”

Following the closing of the transaction, the brokerage operations of BNSF Logistics will roll into J.B. Hunt’s Integrated Capacity Solutions for segment reporting purposes. The transaction will be funded using J.B. Hunt’s existing cash balance and is expected to close before year-end.

“As we continue to work with BNSF Railway to develop solutions that drive value for customers, we recognized a unique opportunity to combine the companies’ efforts to serve the transportation market with 3PL services and leverage the investments J.B. Hunt has made in our technology platform, J.B. Hunt 360°®,” said John Roberts, CEO of J.B. Hunt. “This acquisition is another step forward in our mission to create the most efficient transportation network in North America.”

BNSF Logistics provides value-added 3PL services for BNSF Railway. Upon closing the transaction, BNSF Railway and J.B. Hunt will enter into a long-term service agreement whereby J.B. Hunt will continue to provide those services for BNSF Railway.

© 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.

The Brotherhood of Locomotive Engineers and Trainmen (BLET) and BNSF Railway have reached a system-wide agreement this week that will significantly benefit locomotive engineers at BNSF. The tentative agreement includes up to eight paid sick leave days and grants access to scheduled time off in an effort to improve the quality of work-life balance for the engineers.

This breakthrough tentative agreement comes after several months of negotiations, and pending ratification by BLET’s members at BNSF, it is expected to bring positive changes to both the professional and personal lives of locomotive engineers. The agreement will allow for more predictable scheduling and enable engineers to take paid sick leave without any penalty. These enhancements will not only contribute to a more consistent service for BNSF’s customers but also aid in the recruitment and retention of employees.

Furthermore, the agreement introduces work/rest options that can be implemented in every pool. Locomotive engineers will have the opportunity to earn an “Earned Day Off” (EDO) quarterly. Additionally, all BLET-represented engineers at BNSF will be provided individual paid sick days.

Approximately 7,500 BLET members at BNSF will receive detailed information about the tentative agreement this week, and a ratification vote is scheduled for September.

The cooperation between BLET and BNSF marks an important step forward in supporting the well-being and satisfaction of locomotive engineers, ensuring a more balanced and efficient work environment.

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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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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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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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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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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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.