Rail industry petitions to stop moving toxins

By Thomas Frank, USA Today, May 20, 2009

 

WASHINGTON — Railroad companies are pressing federal regulators to cut back on trains carrying hazardous materials through urban areas, saying they fear a catastrophic release of toxic chemicals in a large city.

 

The companies also fear billions in legal claims if toxic materials spill during a derailment or act of sabotage. Rail industry associations are petitioning to allow railroads for the first time to refuse to carry chemicals such as chlorine over long distances.

 

Federal law requires railroads to transport such materials, which are used in manufacturing, agriculture and water treatment.

 

See the URL for the rest of the article.

http://www.rtands.com/breaking_news.shtml#Feature5-5-28

 

May 27, 2009

 

Railroads adapt, look to the future, UP chairman tells NARS

 

While the nation has faced extraordinary economic challenges, America’s freight railroads in 2008 invested a record $10 billion in capital projects that increase capacity, improve service and prepare for growth, all while continuing to improve safety, on-time performance and average train speeds, said Union Pacific Corp. Chairman, CEO and President Jim Young, speaking as Chairman of the Association of American Railroads at the annual meeting of the North American Rail Shippers Association.

 

Read more at the ink above:

U.S. needs national freight policy, BNSF's Rose says

Progressive Railroading

 

The biggest challenge to an efficient U.S. freight system? The lack of a national freight policy, said BNSF Railway Co. Chairman, President and Chief Executive Officer Matt Rose, who testified last week at a Senate Commerce Committee hearing on the nation’s freight transportation system.

 

Read more at:

 

http://www.progressiverailroading.com/news/article.asp?id=20694

Morgan Stanley: Auto forecast bolsters freight rail outlook 

 

Freight railroads could benefit from what Morgan Stanley analysts William Greene and Adam Longson describe as “a large increase in North American auto production” during the third quarter. Citing the latest Wards North American auto production forecast, Greene and Longson “estimate that the likely increase in [railroad] auto volumes could add up to 2.0% and 1.0%-to-3.5% to our EPS [earnings per share] estimates for the railroads in 2009 and 2010, respectively.”

 

Read more at:

 

http://www.railwayage.com//content/view/959/121/

From an e-mailed press release:

 

July 20, 2009

 

Rail Can Help Relieve Highway Congestion Crisis, Norfolk Southern CEO Tells Nation’s Governors

 

NORFOLK, VA – Wick Moorman, CEO of Norfolk Southern Corporation (NYSE: NSC), called on the nation’s governors Saturday to consider railroads as “a vital part of the solution to our nation’s transportation crisis.”

 

Addressing the National Governors Association at Biloxi, Miss., Moorman said “railroads offer significant economic and environmental benefits while helping relieve highway congestion – which is fast becoming public enemy number one.”

 

“Our nation’s transportation network is a complex, interdependent system that demands our combined creative efforts to operate it most efficiently,” Moorman said. “Our experience at Norfolk Southern has shown that by working together in public-private partnerships, we can achieve far more in far less time and with far greater public benefits than any of us can by working alone.”

 

Moorman cited two rail routes – the Heartland Corridor between the Port of Virginia and Columbus, Ohio, and Chicago, and the Crescent Corridor linking New Jersey to New Orleans and Memphis, Tenn. – as examples of how public-private partnerships “can create additional capacity in our rail transportation network, with public benefits of jobs creation, less highway congestion, lower environmental emissions, and fuel savings.” He said the Crescent Corridor project alone will result in 41,000 “green” jobs over the next decade and move more than a million trucks annually off the highways onto rail, saving more than 150 million gallons of fuel every year and reducing carbon emissions by nearly two million tons per year.

 

“It’s clear we must do something,” Moorman said. “Freight volumes in this country are projected to grow 88 percent by 2035 alone. To handle that freight, we must improve our national transportation infrastructure.”

 

Norfolk Southern Corporation is a leading North American transportation provider. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products.

 

Norfolk Southern contacts

Media | Frank Brown | 757-629-2710 | [email protected]

Investors | Leanne Marilley | 757-629-2861 | [email protected]

 

 

Norfolk Southern Corporation | http://www.nscorp.com

CSXT and NS push for federal tax incentives, public-private partnerships

 

Last week, CSX Transportation and Norfolk Southern Corp. touted the economic benefits of government funding support for freight rail through tax incentives and public-private partnerships.

 

Read more at:

 

http://www.progressiverailroading.com/news/article.asp?id=21052

Norfolk Southern 2nd Quarter Operating Revenues Down 33% From 2Qtr 2008

 

http://www.nscorp.com/nscportal/nscorp/Media/News%20Releases/2009/earn2q_09.html

 

NORFOLK, VA. – For the second quarter of 2009, Norfolk Southern Corporation (NYSE: NSC) reported net income of $247 million, or $0.66 per diluted share, compared with $453 million, or $1.18 per diluted share, for the second quarter of 2008.

 

“Second-quarter results obviously reflect the impact of the recession,” said Norfolk Southern CEO Wick Moorman.  “However, the measures we are taking to control expenses while maintaining our industry-leading service levels have enabled us to post solid second-quarter results, while at the same time we continue to invest in projects that position us for the eventual economic recovery.”

 

Second-quarter railway operating revenues were $1.9 billion, down 33 percent, compared with the second quarter of 2008, primarily the result of a 26 percent reduction in traffic volume and lower fuel-related revenues.

 

General merchandise revenues were $978 million, 33 percent lower compared with the same period last year.  Coal revenues declined 34 percent to $511 million compared with second-quarter 2008 results. Intermodal revenues decreased 31 percent to $368 million compared with the second quarter of last year.

 

Railway operating expenses for the quarter were $1.4 billion, a decrease of 29 percent over the same period of 2008.

 

The railway operating ratio was 74.8 percent, compared with 71.1 percent during second-quarter 2008.

 

Norfolk Southern Corporation is a leading North American transportation provider. Its Norfolk Southern Railway subsidiary operates approximately 21,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products.

 

There is a NS crossing that everyone has to cross to get to the government installation. Workers have their cars. Trucks come in and out. I try to get there around 7:30AM. Today, NS really upset me. There was one truck in front of me. The train was crossing. It's usually a long coal train, going to the Servistal steel. The tuck was all the room before the tracks. I had to stay on the main road. I don't like to do that. It's very fast with cars and trucks taking a short cut from Niles to Warren. They cut around you. I watch to see if they are going to slow down. There is a dangerous bend. I was stuck on the road for about 15 minutes.The trucker was getting a little impatient. There was another truck in back of me going into government place. I don't know how long the train was before I got there. Is there a certain time limit that NS can disrupt the crossing. It is the only way in or out. What about emergency situations?

 

 

http://www.rtands.com/newsflash/rail-projects-gain-steam-across-chicago.html

 

Aug. 6, 2009

Rail projects gain steam across Chicago        

 

A motorist often needs two hours to travel from one end of the Chicago area to the other, but it can take two days for a freight train, slowed by a bewildering, century-old maze of tracks and outdated signals and switches, The Chicago Tribune reports. So transportation officials were heartened when the Illinois legislature recently set aside $320 million for rail improvements, hoping it would help unlock train gridlock in Chicago -- the nation's biggest, busiest and most congested railroad hub.

 

Read more at the URL above:

http://www.rtands.com/newsflash/ns-12.8-millin-project-in-toledo-may-start-next-summer.html

 

Aug. 6, 2009

NS’ $12.8-million project in Toledo may start next summer        

 

Last week's action by the Ohio Controlling Board to release a $2.7-million state loan for expansion of Norfolk Southern's intermodal terminal in South Toledo completes the funding for the $12.8 million project, officials said yesterday, according to the Toledo Blade.

 

Read full story at URL above:

http://www.rtands.com/newsflash/groundbreaking-set-for-csx-ohio-yard.html

 

Aug. 12, 2009

Groundbreaking set for CSX Ohio yard        

 

Ohio Governor Ted Strickland will be on hand Aug. 14 to break ground on North Baltimore's CSX Intermodal rail yard, local media report. The company's CEO, Michael Ward, will join Strickland to break ground on the terminal which will serve the Midwest.

 

Full story at URL above:

Found a few factoids connected with the North Baltimore intermodal yard:

 

The terminal will generate 30 trains a day, in excess of 2.5 miles in length.

 

The trains will run 24 hours per day / 7 days a week.

 

Construction will include closing two grade crossings and creating a highway-over-rail grade separation to improve local motor vehicle traffic and reduce delays from trains.

 

It is also part of the planned "National Gateway" project by CSX.  See their press release below:

 

CSX Announces National Gateway to Improve Flow of Freight

Program Launched at Ohio Offices of Pacer International, a CSX Customer

Released: May 01, 2008

 

Dublin, Ohio - May 1, 2008 - CSX Corporation today launched the National Gateway, a $700 million public-private infrastructure initiative to create a highly efficient freight transportation link between the Mid-Atlantic ports and the Midwest.

 

When completed, the National Gateway would provide greater capacity for product shipments in and out of the Midwest, reduce truck traffic on already crowded highways, and create thousands of jobs that directly or indirectly support the National Gateway.

 

CSX has already committed $300 million to the National Gateway, and will work with several states and the federal government to secure additional funding.

 

The National Gateway incorporates two primary parts. First, CSX would build or expand several high-capacity, job-producing intermodal terminals where product shipments are exchanged between trucks and trains. At the same time, CSX would work together with state and federal government agencies to create double-stack clearances beneath public overpasses along the railroad. Double-stack clearances allow rail carriers to stack intermodal containers atop each other, enabling each train to carry about twice as many cargo boxes. Currently many overpasses only accommodate single-stack trains.

 

"More and more, the nation is becoming aware of the tremendous safety, economic and environmental benefits that railroads create. Our trains can move a ton of freight 423 miles on a single gallon of fuel, and one train can carry the load of more than 280 trucks," said Michael J. Ward, chairman, president and chief executive officer of CSX. "The National Gateway leverages those benefits to the fullest by combining the resources and expertise of the public and private sectors."

 

The National Gateway was launched at the offices of Pacer International, a CSX customer, in Dublin, Ohio with Governor Ted Strickland. The governor has pledged to work with state and federal officials to support the initiative, which calls for two new intermodal terminals in Wood County and Columbus at a cost of $130 million to CSX. The terminals will ultimately spur the development of related businesses and thousands of jobs to support them.

 

"In Ohio, this initiative helps solidify our state's position as a transportation gateway for the country," said the Governor. "This is a major competitive advantage that can greatly benefit the citizens of Ohio, and the state of Ohio is committed to doing its part to help build this sort of needed infrastructure. In doing so, we'll also be setting an example for other states around the nation."

 

"We are delighted that CSX and Governor Strickland are taking these important steps to ensure the future viability of our transportation system," said Michael E. Uremovich, Chairman and CEO, Pacer International.

 

The National Gateway will enhance three existing rail corridors that run through Maryland, Virginia, North Carolina, Pennsylvania, Ohio and West Virginia. Those corridors include:

 

--The I-70/I-76 Corridor between Washington, D.C. and northwest Ohio via Pittsburgh;

--The I-95 Corridor between North Carolina and Baltimore via Washington, D.C.; and

--The Carolina Corridor between Wilmington and Charlotte, North Carolina.

 

The U.S. Department of Transportation forecasts that by 2020, overall freight tonnage hauled in the United States will have grown by 70% from 1998 levels. The National Gateway infrastructure initiative is designed to address the ever-increasing demands placed on the nation's capacity strained freight network.

 

A study of the National Gateway project by Cambridge Systematics, a nationally recognized transportation research firm based in Cambridge, MA found that every $1 of public money invested in rail infrastructure improvements will lead to $8 in public benefits. The study noted that by improving the flow of freight and shifting freight transportation from the highway to the railway, the initiative will improve safety, relieve congestion, benefit the environment and reduce highway maintenance costs. For more information, visit www.nationalgateway.org.

 

CSX Corporation, based in Jacksonville, Fla., is a leading transportation company providing rail, intermodal and rail-to-truck transload services. The company's transportation network spans approximately 21,000 miles with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports. More information about CSX Corporation and its subsidiaries is available at the company's web site, www.csx.com.

 

ABOUT PACER INTERNATIONAL (www.pacer-international.com)

Pacer International, a leading asset-light North American third-party logistics and freight transportation provider, through its intermodal and logistics operating segments, offers a broad array of services to facilitate the movement of freight from origin to destination. The intermodal segment offers wholesale services provided by Pacer Stacktrain (cost-efficient, two-tiered rail transportation for containerized shipments) and Pacer Cartage (local trucking), as well as retail services through its Rail Brokerage group (intermodal marketing). The logistics segment provides retail truck brokerage, trucking, warehousing and distribution, international freight forwarding, and supply-chain management services. Pacer International is headquartered in Concord, California. Its intermodal and logistics operating segments are headquartered in Concord, California, and in Dublin, Ohio, respectively.

 

Contact:

Robert T. Sullivan

1-877-835-5279

[email protected]

 

Domestic container volume remains intermodal's only bright spot in second quarter, IANA says

 

Similar to the first quarter, domestic container volume was the only positive for intermodal traffic in the second quarter, according to the Intermodal Association of North America’s (IANA) latest Intermodal Market Trends & Statistics report. Domestic containers totaled 969,231 units, up 0.9 percent compared with second-quarter 2008 volume.

 

Full story at:

http://www.progressiverailroading.com/news/article.asp?id=21179

 

 

CSXT prepares major bridge, track projects in Ohio        

Monday, August 24, 2009 

 

CSX Transportation Inc. will raise and remove bridges and lower railroad tracks throughout Northeast Ohio starting next year as part of its $840 million National Gateway plan, according to the Akron Beacon Journal. The local work includes removing the Park Street bridge in Akron, replacing the Knapp Road bridge in Ravenna and raising the Portage County Hike & Bike Trail in Kent.

 

Full story at:

 

http://www.rtands.com/newsflash/csxt-prepares-major-bridge-track-projects-in-ohio.html

NB is site of world-class railroad hub

By Vicki Johnson, [email protected]

POSTED: August 28, 2009

 

http://www.advertiser-tribune.com/page/content.detail/id/517068.html

 

BOWLING GREEN - The Wood County town of North Baltimore is on its way to becoming one of CSX railroad's globally significant hubs. Construction is under way on an $175 million "intermodal" facility.

 

Full story at link above:

 

http://www.railwayage.com/breaking-news/ns-begins-returning-stored-cars-and-power-to-service.html

 

NS begins returning stored cars and power to service 

Friday, August 28, 2009

 

As an indication that the rail industry is truly on the rebound, analysts have been awaiting the return of stored freight cars and locomotives to service.  That is now happening.

 

Full story at link above:

The at-grade rail-rail crossing separation sounds like something that's been discussed for many years at Vickers Crossing in Toledo which sees perhaps double the rail traffic as the crossing in Charlotte.......

 

 

N.C. DOT seeks to ease rail logjams       

Monday, August 31, 2009 

 

State transportation engineers are preparing a series of railroad track improvements they hope will ease bottlenecks for ever-increasing rail traffic in central Charlotte, N.C., the Charlotte Observer reports. The N.C. Department of Transportation wants to make upgrades to a 10-mile stretch of Norfolk Southern track from near Charlotte-Douglas International Airport to Orr Road in northeast Charlotte.

 

Read more at:

 

http://www.rtands.com/newsflash/n.c.-dot-seeks-to-ease-rail-logjams.html

Welcome back, choo-choos!

 

Thanks to Noozer for cleaning this.

Derailed

Recession has stalled transportation-sector growth locally

Sunday,  October 11, 2009 3:35 AM

By Dan Gearino

 

THE COLUMBUS DISPATCH

 

In good times, Buckeye Yard on the Far West Side is alive with the screech of metal on metal.

 

Now, it is a kind of parking lot. Hundreds of idled locomotives and rail cars are spread across acres of track, just west of I-270 and south of Roberts Road.

 

Read more at:

 

http://www.dispatch.com/live/content/business/stories/2009/10/11/empty_trains.ART_ART_10-11-09_D1_KSFAME8.html?sid=101

I think the reporter fails to account for the impact of fuel costs in her assumptions about expected growth in hauling freight by highway and air.  That one big reason why rail was growing so steadily until earlier this year.

Shippers are the focus as rail plan develops

(NITL) The National Industrial Transportation League -- Logistics Management, 10/28/2009

 

The Association of American Railroads (AAR) issued a statement characterizing the Federal Railroad Administration‘s (FRA) Preliminary National Rail Plan as an "excellent first step in developing a longer-range national rail plan" that ensures the U.S. freight rail system continues to be safe, efficient and cost effective.

 

The full preliminary National Rail Plan is available on FRA‘s Web site:

 

http://www.fra.dot.gov/Downloads/RailPlanPrelim10-15.pdf.

 

Full article at:

 

http://www.logisticsmgmt.com/article/366647-Shippers_are_the_focus_as_rail_plan_develops.php

19 Oct 2009

 

For More Information Contact:

AAR Communications

Holly Arthur 202-639-2100

[email protected]

 

 

AAR Lauds FRA Preliminary National Rail Plan

Recognizes Need for Law, Policies that Support Healthy Freight Rail

 

 

WASHINGTON, D.C. – Oct. 19, 2009 – The Association of American Railroads (AAR) today applauded the Federal Railroad Administration’s (FRA) Preliminary National Rail Plan and its recognition that freight rail’s investment in infrastructure maintenance and capacity enhancements meets national safety, reliability and capacity needs.

 

 

“This preliminary plan is an excellent first step in developing a longer-range national rail plan that ensures the U.S. freight rail system continues to be the safest, most efficient and cost effective in the world,” said AAR President and CEO Edward R. Hamberger.

 

 

In its plan, FRA highlighted the many achievements of freight rail since being partially deregulated in 1980. In addition to significant safety and energy efficiency improvements, FRA cited freight rail’s inherent efficiency as the reason the industry has been able to build and maintain its own infrastructure, add capacity, host passenger operations, and pay hundreds of millions of dollars in local property taxes to communities all around the country.

 

 

“Railroads are eager to meet the freight and passenger transportation challenges of the 21st century, and having a national rail plan will allow us to set policies that ensure success,” said Hamberger. “We look forward to working with FRA as they meet with rail stakeholders around the country to address the many important issues outlined in the plan’s framework, including cost equity, safety technologies and energy efficiency.”

 

 

The full preliminary National Rail Plan is available on FRA’s Web site: http://www.fra.dot.gov/Downloads/RailPlanPrelim10-15.pdf

 

 

# # #

 

 

Editors Note: The Association of American Railroads is a Washington, D.C.-based trade association whose members include the major freight railroads, or Class I railroads, of the U.S., Canada and Mexico, as well as Amtrak. Class I railroads represent 67 percent of the U.S. freight rail mileage and 90 percent of freight railroad industry employees. Railroads account for 43 percent of intercity freight volume — more than any other mode of transportation. To learn more about how freight rail works for America, the environment and for you, please visit: www.freightrailworks.org.

 

http://www.aar.org/NewsAndEvents/PressReleases/2009/10/101909_FRARailPlan.aspx

PBS segment on Chicago's effect as rail freight choke point:

 

http://video.pbs.org/video/1113563932/

Buffett's Berkshire buys Burlington Northern railroad

USA Today

 

NEW YORK (AP) — Warren Buffett's Berkshire Hathaway says it has agreed to buy Burlington Northern Santa Fe railroad and will ask shareholders to split Berkshire Class B stock (BRKB) 50-to-1 to help make that deal happen.

 

Berkshire Hathaway already owns about 22% in Burlington Northern and says it will pay $100 a share in cash and stock for the 77.4% of the company Berkshire doesn't already own, putting BNSF's value at about $34 billion.

 

The price represents a premium of 31.5% over Burlington Northern's closing stock price on Monday. The deal has been approved by the boards of both companies.

 

Full story at:

http://www.usatoday.com/money/industries/2009-11-03-berkshire-bnsf-buffett_N.htm

WHOA.

 

In a statement announcing the deal on Tuesday, Buffett said railroads are key for U.S. growth and will grow as the nation grows.

 

"It's an all-in wager on the economic future of the United States," he said. "I love these bets."

 

What a badass!

Railroad industry media take on the BNSF/Buffett story:

 

Berkshire Hathaway to buyout BNSF for $44 billion

Progressive Railroading Magazine

 

 

Berkshire Hathaway Inc. long has owned a piece of Burlington Northern Santa Fe Corp. Now, the firm owned by billionaire Warren Buffet has struck a $44 billion deal to own the Class I lock, stock and barrel.

 

Today, Berkshire Hathaway and BNSF announced they reached a definitive agreement under which Buffet’s firm will acquire the remaining 77.4 percent of the Class I’s outstanding shares for $100 per share in cash. Berkshire Hathaway’s largest-ever deal — which is valued at $34 billion for the stock transaction and includes $10 billion of outstanding BNSF debt — will increase the firm’s holdings in the railroad to 100 percent.

 

More at: http://www.progressiverailroading.com/news/article.asp?id=21867

 

And from Railway Age Magazine:

 

"One analysis suggests Berkshire Hathaway not only is committing to the future of U.S. freight railroading, but is also making a strategic move to bolster support for coal energy despite environmental concerns. Berkshire Hathaway owns MidAmerican Energy Holdings, which controls power companies in the Midwest and Pacific Northwest regions served by BNSF, and which has voiced disapproval over climate change legislation aimed at coal-fired plants."

 

http://www.railwayage.com/breaking-news/berkshire-hathaway-to-buy-bnsf-for-34-billion.html

Buffett's firm to buy Burlington Northern

Berkshire Hathaway will acquire unowned stake of railroad in a cash-and-stock deal worth $44 billion.

By David Ellis, CNNMoney.com staff writer

Last Updated: November 3, 2009: 10:39 AM ET

 

NEW YORK (CNNMoney.com) -- Warren Buffett's Berkshire Hathaway said Tuesday it will buy railroad operator Burlington Northern Santa Fe for $44 billion.

 

Berkshire (BRKA, Fortune 500), which already has major stake in Burlington Northern, said it would acquire the remaining 77.4% of the company in a cash-and-stock offer worth $100 per share....

 

...."Our country's future prosperity depends on its having an efficient and well-maintained rail system," Buffett said in a statement.

 

Find this article at:

http://money.cnn.com/2009/11/03/news/companies/buffett_burlington_northern/index.htm 

 

 

 

 

BNSF Investor Contact: Linda Hurt Berkshire Hathaway Contact:

(817) 352-6452 Marc Hamburg

402-346-1400

BNSF Media Contact: John Ambler

(817) 867-6407

 

BERKSHIRE HATHAWAY INC. TO ACQUIRE BURLINGTON NORTHERN SANTA FE CORPORATION (BNSF) FOR $100 PER SHARE IN CASH AND STOCK

 

BNSF will continue to operate from its Fort Worth, TX headquarters and will become a wholly owned subsidiary of Berkshire Hathaway

 

FORT WORTH, TX / OMAHA, NE – Nov. 3, 2009 – The boards of directors of Berkshire Hathaway Inc. (NYSE: BRK.A;BRK.B) and Burlington Northern Santa Fe Corporation (BNSF; NYSE: BNI) today announced a definitive agreement for Berkshire Hathaway to acquire for $100 per share in cash and stock the remaining 77.4 percent of outstanding BNI shares not currently owned to increase its holdings to 100 percent.  Based on the number of outstanding BNI shares (including shares currently owned by Berkshire) on Nov. 2, 2009, the transaction is valued at approximately $44 billion, including $10 billion of outstanding BNSF debt, making it the largest acquisition in Berkshire Hathaway history.

 

“Our country’s future prosperity depends on its having an efficient and well-maintained rail system,” said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer.  “Conversely, America must grow and prosper for railroads to do well. Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry. 

 

“Most important of all, however, it’s an all-in wager on the economic future of the United States,” said Mr. Buffett.  “I love these bets.”

 

“We are thrilled to have the opportunity to become a part of the Berkshire Hathaway family,” said Matthew K. Rose, Burlington Northern Santa Fe chairman, president and chief executive officer. “We admire Warren’s leadership philosophy supporting long-term investment that will allow BNSF to focus on future needs of our railroad, our customers and the U.S. transportation infrastructure. This transaction offers compelling value to our shareholders and is in the best interests of all of our constituents including our customers and employees.”

 

 

- More -

- 2 -

Terms of the Transaction

 

The definitive agreement provides that each share of BNI common stock will at the election of the shareholder be converted into the right to receive either (i) a cash payment of $100.00 or (ii) a variable number of shares of Berkshire Hathaway Class A or Class B common stock, subject to proration if the elections do not equal approximately 60 percent in cash and 40 percent in stock. The stock component of the consideration is subject to a “collar” whereby the value of each Berkshire Hathaway share received is fixed at $100.00 if the price of Berkshire Hathaway Class A stock at closing is between approximately $80,000.00 and approximately $125,000.00 per share. If the value of Berkshire Hathaway Class A stock is outside of this collar range at closing, then the number of shares received of Berkshire Hathaway Class A stock will be fixed at either 0.001253489 per BNI share for values below the collar range, or 0.000802233 per BNI share for values above the collar range. The shareholder may receive Class A or, in lieu of fractional Class A shares, equivalent economic value of Class B Berkshire Hathaway shares, subject to certain limitations as described in the definitive agreement.

 

The transaction requires approval by holders of two-thirds of BNI’s outstanding shares (other than shares held by Berkshire Hathaway), and customary closing conditions, including Department of Justice review.  Closing is expected to occur during the first quarter of 2010.

 

BNSF Railway Company will continue to focus on providing outstanding service to its customers from its Fort Worth, TX, headquarters. Included in the transaction are all assets and subsidiaries of BNSF.

 

Goldman, Sachs & Co. and Evercore Partners, Inc. acted as financial advisors to BNSF and the company’s legal counsel is Cravath Swaine & Moore LLP.  Berkshire Hathaway’s transaction counsel is Munger, Tolles & Olson LLP.

 

At 8:30 a.m. eastern, BNSF executive management will conduct a briefing for investors and other interested parties. The briefing will be Web cast and available via the investor relations section of www.bnsf.com. The call in number is (800) 398-9367 and the replay number is (USA) (800) 475-6701, (International) (320) 365-3844, and access code 122409. The briefing will not include a question and answer session.

 

BNSF is a holding company and through its principal operating subsidiary, BNSF Railway Company, BNSF owns and manages one of the largest railroad systems in North America.

 

Berkshire Hathaway Inc.  is a holding company owning subsidiaries engaged in a number of diverse business activities including property and casualty insurance and reinsurance, utilities and energy, manufacturing, retailing and services. . .

- More –

- 3 -

Forward-Looking Statements

Statements contained herein concerning projections or expectations of financial or operational performance or economic outlook, or concerning other future events or results, or which refer to matters which are not historical facts, are "forward-looking statements" within the meaning of the federal securities laws.  Similarly, statements that describe BNSF’s or Berkshire Hathaway’s objectives, expectations, plans or goals are forward-looking statements.  Forward-looking statements include, without limitation, BNSF’s or Berkshire Hathaway’s expectations concerning the marketing outlook for their businesses, productivity, plans and goals for future operational improvements and capital investments, operational performance, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance.  Forward-looking statements also include statements regarding the expected benefits of the proposed acquisition of BNSF by Berkshire Hathaway. Forward-looking statements involve a number of risks and uncertainties, and actual results or events may differ materially from those projected or implied in those statements.

 

Important factors that could cause such differences include, but are not limited to: adverse changes in economic or industry conditions, both in the United States and globally; continuing volatility in the capital or credit markets and other changes in the securities and capital markets; changes affecting customers or suppliers; competition and consolidation in the industries in which BNSF and Berkshire Hathaway compete; labor costs and labor difficulties; developments and changes in laws and regulations; developments in and losses resulting from claims and litigation; natural events such as severe weather, fires, floods and earthquakes or acts of terrorism; changes in operating conditions and costs; and the extent of BNSF’s or Berkshire Hathaway’s ability to achieve their operational and financial goals and initiatives.  In addition, the acquisition of BNSF by Berkshire Hathaway is subject to the satisfaction of the conditions to the completion of the acquisition and the absence of events that could give rise to the termination of the merger agreement for the acquisition, and the possibility that the acquisition does not close, and risks that the proposed acquisition disrupts current plans and operations and business relationships, or poses difficulties in employee retention.

 

We caution against placing undue reliance on forward-looking statements, which reflect our current beliefs and are based on information currently available to us as of the date a forward-looking statement is made.  We undertake no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs.  In the event that we do update any forward-looking statements, no inference should be made that we will make additional updates with respect to that statement, related matters, or any other forward-looking statements.  Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from our forward-looking statements, including discussions of significant risk

 

- More -

factors, may appear in BNSF’s or Berkshire Hathaway’s public filings with the Securities and Exchange Commission (the “SEC”), which are accessible at www.sec.gov, and which you are advised to consult.

 

 

 

Additional Information

In connection with the proposed transaction, Berkshire Hathaway will file with the SEC a registration statement that will include a proxy statement of BNSF that also constitutes a prospectus of Berkshire Hathaway relating to the proposed transaction.  Investors are urged to read the registration statement and proxy statement/prospectus and any other relevant documents filed with the SEC when they become available, because they will contain important information about BNSF, Berkshire Hathaway and the proposed transaction.  The registration statement and proxy statement/prospectus and other documents relating to the proposed transaction (when they are available) can be obtained free of charge from the SEC’s website at www.sec.gov, Berkshire Hathaway’s website at www.berkshirehathaway.com and BNSF’s website at www.bnsf.com.  In addition, these documents (when they are available) can also be obtained free of charge from Berkshire Hathaway upon written request to Corporate Secretary or by calling (402) 346-1400, or from BNSF upon written request to Linda Hurt or John Ambler or by calling (817) 352-6452 or (817) 867-6407.

BNSF, Berkshire Hathaway and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders in connection with the proposed transaction under the rules of the SEC.  Information regarding the directors and executive officers of BNSF may be found in its 2008 Annual Report on Form 10-K filed with the SEC on February 13, 2009 and in its definitive proxy statement relating to its 2009 Annual Meeting of Shareholders filed with the SEC on March 16, 2009.  Information regarding the directors and executive officers of Berkshire Hathaway may be found in its 2008 Annual Report on Form 10-K filed with the SEC on March 2, 2009 and in its definitive proxy statement relating to its 2009 Annual Meeting of Shareholders filed with the SEC on March 13, 2009.  These documents can be obtained free of charge from the sources indicated above.  Additional information regarding the interests of these participants will also be included in the registration statement and proxy statement/prospectus regarding the proposed transaction when it is filed with the SEC.

 

It's a stunning testimonial when one of America's most canny financial gurus speaks out on the importance of railroads and invests with the intent of maintaining and probably growing operations.

 

I'm waiting for the other shoe; a merger or acquisition between BNSF and either NS or CSX to create a seamless transcontinental freight route. When that happens, it will drive UP to hook up with whichever eastern system remains. Both systems will work to create routings that bypass Chicago and run fast all the way, with longer crew districts. Transcon rail freight will be so much faster and energy-efficient than trucks that there will be a marked increase in Road-Railer and TOFC, and dramatically fewer trucks on routes like I-80.

I've really believed in BNI for years now. B-H is proof I'm not totally nuts.

Valley rails to get revamp

Bridge replacement, other work to allow for double-stacked trains

 

By RON SELAK JR.

Tribune Chronicle POSTED: November 8, 2009   

 

WARREN - A nearly $850,000 million public and private effort to connect mid-Atlantic ports to midwest U.S. population and manufacturing markets using double-stack trains has railroad improvement projects scheduled for Trumbull and Mahoning counties.

 

What's going to be done locally includes bridge replacement and other projects necessary to provide the vertical clearance to allow train cars hauling two shipping containers stacked on top of one another.

 

Full story at:

http://www.tribtoday.com/page/content.detail/id/529485.html?nav=5021&showlayout=0

U.S. trucking feeling pressure from greener trains

Wed Nov 11, 2009 2:06pm EST

Thursday, 5 Nov 2009 03:52pm EST

By Basil Katz

 

NEW YORK, Nov 11 (Reuters) - U.S. truck operators are under pressure to improve energy efficiency as rail companies tout their green credentials and bid to win more freight haulage.

 

The American Trucking Association says trucks transport about 70 percent, or 10 billion tons of all U.S. freight annually. But they use at least three times as much energy as trains per ton carried, analysts say.

 

Full story at:

http://www.reuters.com/article/RAILRD/idUSN1136428420091111

Intermodal Marketers Lean More to Trains

John D. Boyd | Nov 16, 2009 3:55PM GMT

The Journal of Commerce Online - News Story

 

Intermodal marketing companies, middleman firms that arrange either all-highway or combined rail-truck shipments for clients such as factories or retail stores, used trains for a greater share of their load mix in the summer than they did last spring.

 

The Intermodal Association of North America, in its review of third-quarter industry performance, said IMCs booked combination intermodal shipments for 61.8 percent of the loads they handled in the July-September period, up a full point from the April-June quarter.

 

More at: http://www.joc.com/node/414670

Freight rail more than doubles trucks' fuel efficiency, FRA study shows

ProgressiveRailroading.com

 

Yesterday, the Federal Railroad Administration (FRA) released a study showing freight-rail fuel efficiency increased 22 percent between 1990 and 2006.

 

Entitled “Comparative Evaluation of Rail and Truck Fuel Efficiency on Competitive Corridors,” the study determined that diesel-electric locomotive improvements, increased double-stack train usage, track and signal upgrades, and longer trains were the primary fuel-efficiency drivers.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=22021

It is a long report...but well worth reading at:

 

http://www.fra.dot.gov/Downloads/Comparative_Evaluation_Rail_Truck_Fuel_Efficiency.pdf

Cross-posted at:

Youngstown-Warren Steel Industry on the rebound?

http://www.urbanohio.com/forum2/index.php/topic,6916.0.html

 

Council OKs Purchase of Rail Line for V&M

Dec. 17, 2009 6:48 a.m.

By Dan O’Brien

 

YOUNGSTOWN, Ohio -- Just when you thought all the land the city needs for the proposed expansion of V&M Star’s operation on Martin Luther King Jr. Boulevard was secure, another parcel pops up.

 

City Council Wednesday gave the go-ahead to spend $805,000 to buy 60 acres owned by the Geneva and Wyoming Railroad so the company could re-route the rail to support its proposed operations there.

 

V&M is considering spending $970 million to construct a new plant at the site, which could bring 400 new manufacturing jobs and hundreds of construction jobs to the Mahoning Valley.

 

READ MORE AT:

http://www.business-journal.com/default.asp?sourceid=&smenu=1&twindow=&mad=&sdetail=15303&wpage=1&skeyword=&sidate=&ccat=&ccatm=&restate=&restatus=&reoption=&retype=&repmin=&repmax=&rebed=&rebath=&subname=&pform=&sc=1711&hn=business-journal&he=.com

CSXT to speed up work on its National Gateway project    

Monday, December 21, 2009 

 

With a goal of speeding freight between East Coast ports and the Midwest, CSX Transportation has undertaken what it calls the National Gateway project - an $842-million public-private upgrade of rail infrastructure to accommodate double-stack container cars, The State Journal in Huntington, W.Va., reports.

 

Citing forecasts of a nearly 70 percent increase in the freight industry by 2020, CSX argues that the massive multi-state rail upgrade it envisions will ease highway congestion, create new jobs and reduce pollution. A long list of public officials, including West Virginia Gov. Joe Manchin and Rep. Shelley Moore Capito, R-W.Va., have signed on to support the project.

 

When completed, the upgrade will enable double-stack container trains to travel from North Carolina through Virginia and Maryland, across West Virginia's Eastern Panhandle and then into Pennsylvania and on to Ohio.

 

READ MORE AT:

http://www.rtands.com/newsflash/csxt-to-speed-up-work-on-its-national-gateway-project.html

Public-private partners mark completion of CREATE's seventh project

 

Chicago Region Environmental and Transportation Efficiency (CREATE) program partners recently capped off another project. They completed the $13.1 million “McCook Connection” project in McCook, Ill., which will provide “additional connectivity” between BNSF Railway Co., CSX Transportation and Indiana Harbor Belt Railroad Co. (IHB) lines. The project, which began a year ago, is the seventh of 71 planned CREATE projects to reach the completion stage.

 

Trains previously had to wait or travel at a maximum speed of 10 mph on the lines; now, they can move through the area at 25 mph. The project provides additional capacity and congestion relief in northeastern Illinois, CREATE partners said in a project bulletin, adding that potential conflicts will be reduced between 15 to 20 freight trains and several Metra and Amtrak trains that move through the connection each day.

 

Full story at:

http://www.progressiverailroading.com/news/article.asp?id=22261

latimes.com/business/la-fi-rail3-2010jan03,0,27378.story

 

latimes.com

Freight trains make big comeback in nation's transportation network

Warren Buffett's recent purchase of Burlington Northern Santa Fe shows the renewed importance of railroads in the global supply chain.

By Alana Semuels

January 3, 2010

 

More than 4,000 miles of train tracks stretch through California, winding up the blustery Cajon Pass and snaking through the desert surrounding Barstow.

 

Those tracks could be seeing a lot more traffic in the next few years as trains loaded with Chinese-made toys, electronics and clothing roll eastward, connecting West Coast ports with cities across the U.S.

 

Warren Buffett is a believer. In November, the world's second-richest man paid $34 billion for railroad giant Burlington Northern Santa Fe Corp., despite a deep downturn in the railroad industry. Buffett characterized his investment as an "all-in wager on the economic future of the United States." But it's also a bet on globalization and the renewed importance of rail in the nation's transportation network.

 

More at link above:

 

And a quote from another business media story:

 

Other investors are looking at rail traffic in North America, which showed a 4.6% rise in December, the first year-on-year growth after slumping for more than a year, according to Dahlman Rose & Company. Rail carloads reached 714,015 units, up from a year ago, but still 14% lower than the same week in 2007

 

An increase in rail volume is a precursor of growing economic activity, as manufacturers, construction firms and car dealers are among the top railway shippers. Analysts are looking to see whether the increases continue.

 

Full story at: http://online.wsj.com/article/SB10001424052748704789404574636413584486326.html?mod=dist_smartbrief

Intermodal Takes Record Share From Trucks

John D. Boyd | Feb 8, 2010 3:46PM GMT

The Journal of Commerce Online - News Story

 

 

U.S. freight shippers sent their highest shares yet by intermodal combination moves in the 2009 fourth quarter, compared with using trucks only, said transportation consultants FTR Associates.

 

Intermodal, which pairs short-haul trucking with long-haul rail service, took an estimated 13.3 percent of the long-haul market for international and domestic containerized freight, FTR said.

 

That is up 0.2 percent from the third quarter and is “slightly above the previous high-water mark” in fourth-quarter 2008, FTR said.

 

Full story at: http://www.joc.com/node/416539

http://www.bloomberg.com/apps/news?pid=20601103&sid=aOLsZCyllcdo

 

Buffett Takes on Chokepoint in Chicago With Burlington Northern

By John Lippert

 

Feb. 10 (Bloomberg) -- Warren Buffett and Bill Gates face a roadblock on the route toward payoff on their investment in U.S. freight transportation.

 

Chicago, whose railroads made it hog butcher for the world a century ago, is a tangle of bottlenecks where a quarter of the nation’s rail freight stalls while trying to navigate the city.

 

“We can’t keep running trains from Los Angeles to Chicago in 55 hours and then take 36 hours to get a rail car from one side of Chicago to the next,” said Matt Rose, chief executive officer of Burlington Northern Santa Fe Corp. “We either need to fix Chicago or avoid it.”

 

More at link above:

^Good article.  I've said it before if the only "thing" Obama gets done in office is helping to take out the rail obstacles in Chicago, then he will have done a lot.  If its inefficient to get freight in and out of Chicago its obviously going to be hell to get passenger trains into Chicago.  Alas if those things are corrected, a 4hr train trip from Cleveland would be very competitive with air.

 

But obviously the main thing economically would be the massive efficiencies created by getting Chicago rolling again.  This would clearly affect every surrounding state and then many states beyond those and shrink the world once again.

 

Analysts: Robust rail revenue growth predicted   

Railway Age Magazine

 

Two leading railroad industry analysts have weighed in with projections on railroad traffic and revenue growth.

 

Dahlman Rose & Co. recently held a seminar with freight economist and transportation industry veteran Noel Perry, who offered a wide array of observations, views, and predictions on the railroad and trucking industries.

 

“On the rail front Perry’s traffic forecast calls for 2010 carloading growth reaching the 6% to 7% range, with growth accelerating in 2011,” said Director-Equity Research and Railway Age Contributing Editor Jason Seidl. “While a vigorous return of traffic, along with solid pricing, should lead to strong revenue growth over the next few years, top line improvement will not necessarily be accompanied by equally robust operating profits, according to Perry.

 

Full story at: http://www.railwayage.com/breaking-news/analysts-robust-rail-revenue-growth-predicted.html

Union Pacific CEO sees signs of improved economy

Sunday, March 14, 2010 6:45 AM EDT

 

 

NEW YORK (AP) — The CEO of Union Pacific said Friday that shipments carried by the nation's biggest railroad are stronger than expected this year, but are still a long way from full recovery.

 

In an interview with The Associated Press, Union Pacific's Jim Young said some key segments, including agricultural, automotive and intermodal shipments show signs of strength. Railroads are indicators of the nation's broader economic health because many things consumers and businesses use every day are shipped by rail.

 

"I'm not willing to say the challenges are over, but some areas are pretty strong," Young said.

 

 

More at URL: http://www.themorningsun.com/articles/2010/03/14/business/srv0000007809909.prt

 

J.P. Morgan raises rail profit outlook   

Railwayage.com

 

Citing strengthening traffic, J.P. Morgan analysts in an investor alert Friday raised their 2010 and 2011 profit outlooks for five major U.S. and Canadian railroads—CSX Corp.; Norfolk Southern Corp., Union Pacific Corp., Canadian National Railway, and Canadian Pacific Railway Ltd.

 

More at: http://www.railwayage.com/breaking-news/j.p.-morgan-raises-rail-profit-outlook.html

 

 

This is an excellent overview of what Buffett sees for the future of railroads....and why he sees it....

 

Warren Buffett sees strong rail system as key to U.S. growth

Updated 11h 31m ago

By Dan Reed, USA TODAY

 

In Matt Rose's 10 years at the helm of BNSF Railway,

he'd heard plenty of investors talk about quarterly

performance. A few would even talk about the

railroad's annual performance.

 

Then on Feb. 12, he answered a call from Warren

Buffett, the legendary investor who looks for long-

term return and whose Berkshire Hathaway holding

company had just closed on its $26 billion

purchase of the 77% of BNSF shares it didn't already

own.

 

"Warren called me and said, 'I'm looking forward to

our first century together,' " Rose says. "I'd never

heard an investor use the word 'century' before."

 

Full story at: http://www.usatoday.com/money/companies/management/2010-03-25-buffett23_CV_N.htm

AAR report: U.S. railroads boost carloads for fourth-straight week

 

U.S. railroads’ traffic winning streak has reached four weeks. During the week ending March 20, their carloads rose 4.3 percent to 287,639 units and intermodal volume increased 9.5 percent to 210,300 units compared with figures from the same week last year, according to the Association of American Railroads (AAR). Total volume rose 5.4 percent to an estimated at 31.3 billion ton-miles as 16 of 19 carload commodity groups posted gains.

 

During the past four weeks, U.S. railroads’ coal volumes have surpassed fourth-quarter 2009 levels by about 3 percent, said Robert W. Baird & Co. Inc. analysts in their weekly “Rail Flash” report.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=22872

It isn't just Warren Buffett recognizing that rail is a good investment....

 

On track for savings

Moving goods by rail helps a local business cut costs 

 

By BRIAN NEARING, Staff writer

Click byline for more stories by writer.

 

First published: Saturday, March 27, 2010

 

At Hillcrest Foods, owner Chris Barkyoumb does a little bit of everything, including fixing the delivery trucks. So it's not surprising that he's added some knowledge about the workings of railroad tracks and freight cars to his repertoire.

To Barkyoumb, who moved his 25-year-old baking supply and speciality foods business to Wilton last year from its original location about 25 miles north of Burlington, Vt., the chance to add a rail spur was a way to cut his fuel and shipping costs by switching from trucks to trains. And that switch also carries another benefit -- lowered emissions of carbon dioxide and other greenhouse gases for every mile that his supplies travel.

 

The future of railroads in a carbon-constrained economy drew a lot of attention in November, when legendary investor Warren Buffett plunked down $26 billion for the Texas-based railroad Burlington Northern Sante Fe. For Buffett, the investment came down to simple math -- a train can move a ton of freight more than 430 miles on a gallon of fuel, about three times further than if moved by truck. And for every rail car used, more than three trucks can be kept off the roads, which extends highway life and keeps worn-out tires out of landfills.

 

Full story: http://www.timesunion.com/AspStories/story.asp?storyID=915640&category=BUSINESS

And note that the authors of the following op-ed are the sitting Democratic and GOP Governors of 5 states.  Their message is a strong one about the value of public-private partnerships to invest in our rail systems....

 

A rail corridor along I-81 that would get traffic and the economy moving again

For The Washington Post

By Bob Riley, Haley Barbour, Ed Rendell, Phil Bredesen and Bob McDonnell

Friday, March 26, 2010; A23

 

 

 

At the White House jobs summit in December, President Obama told dozens of corporate leaders that he is looking for "every demonstrably good idea" to put Americans back to work.

 

Here's one. It's an idea that will not only create jobs but also reduce highway congestion, improve safety and take more than 1 million long-haul trucks off the road each year.

 

Interstates connecting the South and Northeast are choked with traffic. As much as 40 percent of the traffic on Interstate 81 in Virginia is made up of trucks on a highway designed to carry no more than 15 percent truck traffic. And traffic on the increasingly congested road is projected to increase 67 percent over the next decade. Building interstates isn't a solution: There is not enough land, and the federal and state governments don't have the money.

 

A project called the Crescent Corridor, a 2,500-mile rail route stretching across 13 states from New Jersey to Tennessee and Louisiana, would offer significant economic and environmental benefits by creating tens of thousands of jobs and moving trucks off crowded highways such as I-81.

 

Full op-ed at: http://www.washingtonpost.com/wp-dyn/content/article/2010/03/25/AR2010032502404.html

81 is the scariest expressway to drive on in the northeastern third of the U.S. - closely followed by the W.V. turnpike. It wouldn't be so bad without the trucks, kinda pretty actually.

Bring this business to Youngstown, Ohio!!!

 

Railroads booming with Marcellus Shale business

Associated Press - March 31, 2010 12:05 PM ET

 

READ MORE AT:

http://www.urbanohio.com/forum2/index.php/topic,22242.msg475396.html#msg475396