Tag: BNSF

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BNSF Railway Company has reported investments from customers served by the freight rail provider in 2021 totaled approximately $1.5 billion.

Large investments from customers including The Gatorade Company Inc., Mark Anthony Brewing and Northern Metal Recycling contributed to the sum. As a result of customer investments, BNSF projects the creation of more than 1,700 new jobs in local communities.

This marks the 11th consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities.

“The success of BNSF’s rail development program is a result of our employees working with our customers to build unique supply chain solutions that fit their distinctive needs,” said Chris Danos, assistant vice president, economic development. “Flexibility is the key to helping our customers maximize their investments, saving them development costs and expediting their speed to market.”

In 2021, new developments supported a wide variety of commodities including consumer, agricultural and industrial products in communities across the BNSF network. Highlights of supply chain solutions BNSF helped its customers achieve in 2021 include:

• The Gatorade Company, Inc. – With a significant investment, The Gatorade Company, Inc., co-located at BNSF’s Logistics Park Kansas City for warehouse and distribution center capabilities, generating 200 employment opportunities for surrounding communities.
• Mark Anthony Brewing – In Glendale, Arizona, Mark Anthony Brewing invested $450 million to build a new facility capable of receiving tank car shipments of glucose and alcohol to produce White Claw Hard Seltzer, creating 300 jobs.
• Northern Metal Recycling – Investing $75 million, Northern Metal Recycling constructed a new facility at the Becker Industrial Park in Becker, Minnesota, to handle both manifest and unit train shipments of scrap metals, offering 90 new roles for community members.

© 2022 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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A potential strike against BNSF Railway Company over a new point system for attendance has been temporarily blocked by a federal judge.

The threat of a strike by some 17,000 members of the Brotherhood of Locomotive Engineers and Trainmen, and the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation had appeared imminent.

The U.S. District Court for the Northern District of Texas issued a Temporary Restraining Order (TRO) prohibiting both BLET and SMART-TD from authorizing, encouraging, permitting, calling, or otherwise engaging in any strikes, work stoppages, picketing, slowdowns, sickouts, or other self-help against BNSF or its operating rail subsidiaries over any dispute relating to BNSF’s new Hi Viz attendance policy and the standards in the policy.

The Brotherhood of Locomotive Engineers and Trainmen sent the following to its members:

Pursuant to the Court’s Order, BLET is hereby instructing all of its members employed by BNSF that they must NOT engage in any self-help against the railroad. This means that members must NOT engage in any strikes, work stoppages, picketing, slowdowns, sickouts, or any other activity intended to disrupt the operations of the railroad in response to BNSF’s Hi Viz attendance policy.

Further, pursuant to the Court’s Order, BLET is notifying and instructing all members who are now or who may in the future engage in any strike, work stoppages, picketing, slowdowns, sickouts, or any other activity intended to disrupt the operations of the railroad to immediately cease and desist all such activity and to immediately cease and desist all exhortations or communications encouraging same upon pain of fine, suspension, or other sanction by BLET. This means that any member who continues to encourage other employees on social media, or in any other forum, to engage in a strike, work stoppages, picketing, slowdowns, sickouts, or any other activity intended to disrupt the operations of the railroad MUST immediately stop doing so. Members who continue to do so risk fine, suspension, or other sanction by BLET.

The temporary restraining order is set to expire February 8, 2022.

© 2022 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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Progress Rail, a Caterpillar Inc. Company, BNSF Railway Company and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation have signed a memorandum of understanding (MOU) to advance the demonstration of a locomotive powered by hydrogen fuel cells.

The goal of the demonstration is to confirm the feasibility and performance of hydrogen fuel for use as a viable alternative to traditional fuels for line-haul rail. Hydrogen has the potential to play a significant role as a lower-carbon alternative to diesel fuel for transportation, with hydrogen fuel cells becoming a means to reduce emissions.

Under the MOU, the parties are working toward reaching definitive agreements on a demonstration with three primary objectives. First, Progress Rail plans to design and build a prototype hydrogen fuel cell locomotive for line-haul and/or other types of rail service. Second, Chevron expects to develop the fueling concept and infrastructure to support this use of the locomotive. Lastly, the prototype hydrogen fuel cell locomotive is expected to be demonstrated on BNSF’s lines for a mutually agreed upon period of time.

“Caterpillar has made great strides in moving our advanced power technology forward. Our Progress Rail team will leverage that knowledge and experience toward a hydrogen fuel cell locomotive,” said Joe Creed, Caterpillar group president of Energy and Transportation. “Working with Chevron and BNSF will allow us to advance hydrogen technology across the industry.”

“BNSF is pleased to collaborate with Chevron and Progress Rail in piloting locomotives powered by hydrogen fuel cells,” commented John Lovenburg, vice president of Environmental for BNSF. “This technology could one day be a lower-carbon solution for line-haul service, as it has the potential to reduce carbon emissions and remain cost competitive.”

“Chevron is dedicated to scaling up its hydrogen business to help meet the needs of customers who want to reduce the lifecycle carbon emissions of their operations,” said Jeff Gustavson, president of Chevron New Energies. “Our work with Progress Rail and BNSF is an important step toward advancing new use cases for hydrogen in heavy duty transport, as we seek to create a commercially viable hydrogen economy.”

As previously announced, Caterpillar Inc. is collaborating with Chevron for the demonstration of hydrogen projects in transportation and stationary power applications.

The proposed demonstration project is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval. If established, additional details about the hydrogen locomotive demonstration, including where the initial pilot will take place and its timing, will be released at a later date.

© 2021 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 and other railroads could save as much as 30 percent on fuel costs and greenhouse gas emissions for an entire train when a new generation of lithium-ion battery-powered locomotives go into commercial service.

Wabtec Corporation’s pilot of its first generation FLXdrive battery-electric locomotive delivered more than an 11 percent average reduction in fuel consumption and greenhouse gas emissions for an entire train. It is the equivalent of over 6,200 gallons of diesel fuel saved and approximately 69 tons of CO2 emissions reduced.

The outcomes are the result of a three-month pilot with BNSF Railway, the largest railroad in the U.S., where the FLXdrive, the world’s first 100-percent battery locomotive, was put to the test in revenue service across more than 13,320 miles of hilly terrain in San Joaquin Valley, California – a territory surrounded by mountains. The region is classified as a non-attainment area, where the air quality is worse than the National Ambient Air Quality Standards.

Wabtec’s next step is to build a second-generation locomotive with a battery capacity of more than 6 megawatt hours – a level of energy that can reduce a locomotive consist’s fuel consumption and carbon emissions by up to 30 percent, even while hauling several thousand tons of freight in a mile-long train.

“The FLXdrive battery-electric locomotive is a defining moment for freight rail and will accelerate the industry toward low- to zero-emission locomotives,” said Eric Gebhardt, Wabtec Chief Technology Officer. “It builds upon the rail industry’s position as the most efficient and sustainable mode of transportation. Building on our long history of pioneering train energy management technologies, this demonstration of coupling 2.4 megawatt hours of battery storage into the mix fully validated our assumptions for the potential for this next generation technology to further drive efficiencies and greenhouse gas reductions. At more than 6 megawatt hours, Wabtec’s next version of FLXdrive technology will have an opportunity to reduce fuel consumption and emissions by up to 30 percent – putting the industry on the cusp of a once-in-a-generation improvement in energy savings and emission reductions.”

The California pilot program was part of a $22.6 million grant from the California Air Resource Board awarded to Wabtec, BNSF and the San Joaquin Valley Air Pollution Control District. The 430,000-pound FLXdrive in the pilot boasts 18,000 lithium-ion battery cells. The battery locomotive charged at the rail yard and recharged during the trip through regenerative braking. The FLXdrive manages the overall train energy flow and distribution through its Trip Optimizer system, an intelligent cruise control system programmed through artificial intelligence to respond to every twist and grade of the track in the most energy-efficient way possible.

A fleet of second-generation FLXdrives could enter supply chain routes in the next few years.

© 2021 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

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Berkshire Hathaway’s BNSF Railway suffered a major fire at its Alliance Intermodal Facility in Alliance, Nebraska on Sunday, April 11. The fire was in the roof of the structure, but the majority of the damage was caused by smoke and the water used to extinguish the blaze.

The damage was initially estimated at $3 million, including $2 million in damage to electronic equipment.

There were no injuries.

“We did have a structural fire; all our employees were safely evacuated, thankfully,” Amy Casas, senior director of external communications with BNSF Railway, said. “The local fire department managed to extinguish the fire within a few hours. We currently have a temporary worksite set up for any employees who worked out of that building while we conduct inspections and any necessary remediation work to the facility. The cause of the fire is currently under investigation.”

Berkshire Hathaway has been snakebit with fires recently, with a major fire destroying a Lubrizol plant in Rouen, France in September 2019. Last month a fire destroyed a Forest River RV plant in Goshen, Indiana, and on April 7, there was a fire at a Johns Manville plant in Winslow Township, New Jersey.

© 2021 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and BYD, 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 continues to rack up strong Intermodal shipment numbers with an increase of 14.3 percent year to date as compared to the same period in 2020.

BNSF’s Group Vice President, Consumer Products, Tom G. Williams in testimony on March 10 before the House Committee on Transportation and Infrastructure’s Railroads, Pipelines and Hazardous Materials Subcommittee, noted that December 2020 and January 2021 “were the two largest months in BNSF history for moving volume direct to rail off the ports in Southern California. We have called back furloughed employees and pulled railcars and locomotives out of storage to help handle the increased freight demand and drive improved fluidity through this gateway.”

Rail intermodal, which moves shipping containers and truck trailers by rail, has been reaching record levels, and BNSF is the largest intermodal railroad, transporting over a million more intermodal loads annually than its competitors.

Back in July 2020, BNSF noted that the rise in intermodal volume was primarily driven by e-commerce business.

A single train can take upwards of 400 tractor trailers off of highways, saving energy and reducing traffic congestion. Intermodal shipping includes both containers and trailers, and BNSF’s shipment of trailers is up a dramatic 29.76 percent year to date.

This video shows the scale of BNSF’s intermodal trains.

© 2021 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 Company may soon be carry as much as 25% more freight over parts of its existing rail system, all without building additional track.

BNSF successfully received a patent for a virtual track block system that it says can greatly boost mainline capacity and average track speeds. It can also aid in the detection of broken rails.

The patent issued on January 19, 2021, is described as “A method of railroad track control includes partitioning a physical track block into a plurality of virtual track blocks.”

Using conventional block signaling, track capacity cannot be increased without additional track infrastructure, such as additional signals and associated control equipment. And, conventional block signaling systems cannot identify broken rail within an unoccupied block.

By using “virtual track blocks”, train block spacing is reduced to accurately reflect train braking capabilities. In particular, train spacing is maintained within a physical track block by identifying train position with respect to virtual track blocks within that physical track block. This alleviates the need for wayside signals, since train braking distance is maintained onboard the locomotives instead of through wayside signal aspects. In addition, by partitioning the physical track blocks into multiple virtual track blocks, broken rail can be detected within an occupied physical track block.

© 2021 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 Company has reported investments from customers served by the freight rail provider in 2020 totaled approximately $1.1 billion.

Large investments from customers including Coldpoint Logistics, Delta Peanut and Ingredion contributed to the sum.

As a result of customer investments, BNSF projects the creation of more than 1,700 new jobs in local communities.

This marks the 10th consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities.

“At BNSF, our rail development program offers unique supply chain solutions that fit our customers’ varied logistical needs.” said Colby Tanner, assistant vice president, economic development. “The flexibility of our program provides our customers with the necessary tools to maximize their investments, while saving them time and money in reaching their distinct markets.”

In 2020, new developments supported a wide variety of commodities including consumer, agricultural and industrial products in communities across the BNSF network. Highlights of supply chain solutions BNSF helped its customers achieve in 2020 include:

• Coldpoint Logistics – With a $25 million investment, the cold storage solutions provider opened phase four of their facility located at BNSF’s Logistics Park Kansas City, adding 150,000 square feet of additional space and creating 75 jobs for local communities.
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• Delta Peanut – At their facility in Jonesboro, Arkansas, Delta Peanut invested $70 million to add two tracks to their facility for shipping outbound peanuts, creating 130 jobs.
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• Ingredion – Invested more than $100 million in South Sioux City, NE and created approximately 50 new roles in the community.

© 2021 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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Katie Farmer, the new president and CEO of Berkshire Hathaway’s BNSF Railway Company is making no bones about her attitude towards BNSF’s future. It is about growth.

“We have always had and will always have a bias for growth,” notes Farmer, in comments to the Midwest Association of Rail Shippers. “We are a reflection of what goes on in the industrial and consumer economies. And we all know what happens in those economies: Volumes fluctuate, opportunities present themselves, opportunities go away. And so what that means for us is that we always have to be nimble enough and see growth opportunities in advance and prepare ourselves to be able to say yes.”

BNSF has laid out a 2021 capital investment plan of $2.99 billion, which is down just 2 percent from 2020’s $3.08 billion in capital spending.

“Every year through our capital plan, we work to ensure we are able to continue to operate a safe and efficient rail network, provide our customers with the level of service they have come to expect from BNSF as well as position ourselves for future growth opportunities,” Katie Farmer said.

The largest component of this year’s capital plan will be to replace and maintain BNSF’s core network and related assets, much like last year’s $3.08 billion capital program. Maintaining the railroad results in less unscheduled service outages that can slow down the rail network and reduce capacity.

The maintenance component of this year’s plan is $2.41 billion. The projects included in this part of the plan mostly entail replacing and upgrading rail as well as track infrastructure like ballast and rail ties (which are the main components for the tracks on which BNSF trains operate) and maintaining its rolling stock. It will include nearly 11,000 miles of track surfacing and/or undercutting work and the replacement of 428 miles of rail and approximately 2.6 million rail ties.

Approximately $400 million of this year’s capital plan will be for expansion and efficiency projects, and about $180 million of this year’s capital plan is for freight cars and other equipment acquisitions.

On its Southern Transcon route between the West Coast and the Midwest, BNSF will continue a multi-year effort to add several segments of new double-track in eastern Kansas. Once fully completed, BNSF will have 50 miles of additional main track to support traffic growth.

In addition, in the Pacific Northwest, BNSF will continue a multi-year bridge project near Sandpoint, Idaho to increase train capacity.

© 2021 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.