Railroad News

Rail News Home BNSF Railway 5/3/2022 Rail News: BNSF Railway
BNSF Railway Co. late last week reported double-digit increases in first-quarter 2022 revenue, net income and operating expenses compared with the same period a year ago.Total revenue in Q1 2022 climbed 10% to nearly $6 billion; operating income rose 8% to $2 billion; net income increased 10% to $1.4 billion; and operating expenses jumped 12% to $3.9 billion compared with the same quarter last year, according to a statement posted on BNSF's website.The Class I posted an operating ratio of 64.6% for the quarter, up from 63.7% a year ago.BNSF attributed the revenue increase primarily to a 14% increase in average revenue per car/unit resulting from higher fuel surcharge revenue driven by higher fuel prices along with increased rates per car. Revenue was partially offset by a 3% decrease in unit volume.In addition, BNSF reported revenue changes resulted from the following:
• Consumer products volumes decreased 8% due to lower international intermodal volumes caused by supply-chain challenges and lower automotive shipments;
• Agricultural products volumes fell 4% primarily because of lower grain exports, which were partially offset by higher volumes of ethanol and related commodities;
• Industrial products volumes rose 1% primarily due to growth in the U.S. industrial economy; and
• Coal volumes climbed 14% due to increased electricity generation, higher natural gas prices and improved export demand.BNSF attributed the increase in operating expenses to higher compensation and benefits, higher fuel costs and inflation.

Rail News Home BNSF Railway 3/10/2022 Rail News: BNSF Railway
BNSF Railway Co. and Wabtec yesterday announced they're working together to advance sustainability with a new biofuel project aimed at quantifying the impact of alternative fuels on emissions, durability and performance in Wabtec locomotives.BNSF and Wabtec will begin testing biofuel in the second quarter. The companies aim to demonstrate the performance of biodiesel (B20) and renewable diesel (R55) in revenue service on Wabtec Tier 3 and Tier 4 Evolution Series locomotives in California. BNSF will operate the locomotives between Barstow and Los Angeles, the companies said in a press release.Wabtec already has approved a 5% biodiesel (B5) and 30% renewable diesel (R30) blend for its locomotive engines."Rail is already the most carbon-efficient mode of land freight transport, and the use of these lower carbon fuels is another means for BNSF to reduce its emissions and help meet its carbon reduction goal," said John Lovenburg, BNSF's vice president of environment and sustainability.Last year, BNSF conducted a pilot with a battery-electric locomotive developed by Wabtec in commercial service between Barstow and Stockton that showed an 11% reduction in fuel consumption and greenhouse gas emissions compared with standard diesel units operated on the same route.

Rail News Home BNSF Railway 3/4/2022 Rail News: BNSF Railway
Last year’s investments mark 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. Photo – BNSF Railway Co.

Rail News Home BNSF Railway 3/1/2022 Rail News: BNSF Railway
The largest component of BNSF's 2022 capital plan will be to replace and maintain the railroad's core network and related assets. Photo – bnsf.com

Rail News Home BNSF Railway 3/1/2022 Rail News: BNSF Railway
BNSF Railway Co. logged $1.7 billion in net income in fourth-quarter 2021, a 13% increase from 2020's bottom line, the Class I announced yesterday.Total revenue for the quarter rose 11% to $6.3 billion from $5.7 billion a year ago. Operating income climbed 12% to $2.4 billion, while operating expenses increased 10% to $3.85 billion.The railroad recorded an operating ratio of 60% in the quarter versus 60.3% in fourth-quarter 2021.For full-year 2021, BNSF reported net income of nearly $6 billion, up 16%; total revenue of $23.3 billion, up 12%; operating income of $8.8 billion, up 14%; and operating expenses of $14.5 billion, up 10% year over year.BNSF's earnings were a record for the railroad, according to Berkshire Hathaway Inc. Chairman and CEO Warren Buffet's letter to shareholders in the company's 2021 annual report. Berkshire Hathaway owns BNSF."BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier," Buffett wrote.In 2021, BNSF's full-year volumes were 1% lower than the pre-pandemic volumes of 2019. The changes included a 3% decrease and 7% increase in unit volume for the fourth quarter and full-year 2021, respectively.The full-year volume increase is primarily due to continued improvements from the 2020 effects of the COVID-19 pandemic, partially offset by the ongoing disruptions in the global supply chain, as well as the following:
• Consumer products volumes decreased 9% in the fourth quarter and increased 8% in full-year 2021 compared with the same periods in 2020.
• Industrial products volumes increased 6% and 5% in the fourth quarter and full year, respectively.
• Agricultural products volumes decreased 2% and increased 3% in the fourth quarter and full-year 2021.
• Coal volumes increased 9% in both the fourth quarter and full year.

Rail News Home BNSF Railway 2/16/2022 Rail News: BNSF Railway
The company uses more than 75,000 suppliers across the world in all modes of transportation. Photo – BNSF Logistics

Rail News Home BNSF Railway 2/1/2022 Rail News: BNSF Railway
BNSF Railway Co. scored a 90% rating from the Human Rights Campaign on its 2022 "Best Places to Work for LGBTQ+ Equality" list, which recognizes leading U.S. corporations for their policies, practices and benefits pertaining to LGBTQ+ people."Diversity, equality and inclusion are at the core of BNSF’s vision and values," said BNSF Vice President and Chief Human Resources Officer Judy Carter in an emailed statement. "We are committed to a culture where every team member has an equal opportunity to achieve their full potential. It is an honor to be recognized by the Human Rights Campaign and to stand with our peers who share the belief that every employee deserves to be treated with dignity and respect."The index recognized 1,271 companies that promote LGTBQ+ friendly workplace policies. Other railroads that scored high on the index included Union Pacific Railroad, which achieved a perfect score, and Amtrak, which scored a 90% rating.

Rail News Home BNSF Railway 11/17/2021 Rail News: BNSF Railway
BNSF Railway Co. has asked the Surface Transportation Board (STB) to extend its the proposed timeline for making comments on or objections to Canadian Pacific's application to acquire Kansas City Southern.In a Nov. 12 filing with the board, BNSF says that the proposed 90-day comment period (and Jan. 27, 2022 deadline) is not enough time to address one of the central issues in the proposed acquisition, which is how competition, rate-setting and regulation will affect U.S. shippers involved in transborder movements into and out of Mexico."This issue has important implications for U.S. grain shippers in competition with counterparts in Canada, for rail shippers on other U.S. rail networks that compete for access to Mexican origin and destination markets and for communities on rail lines that will be affected by the supposed growth in transborder traffic," BNSF officials state in their filing.The CP-KCS application provides scarce information on the Mexican portion of the proposed transborder flow of freight, according to BNSF."As a result, the Board and interested parties will need to develop this information (or applicants will need to supplement or refile their application to include this information) in order to assess the benefits that applicants claim will result from these new cross-border movements, along with any potential harms to U.S. shippers of transborder freight that may result from competitive conditions in Mexico," BNSF's filing states.BNSF asks the STB to extend the comment deadline for another 60 days so that it and "other interested parties" can analyze the impact of new single-line service to Mexico.To view BNSF's filing, click here.

Rail News Home BNSF Railway 11/11/2021 Rail News: BNSF Railway
BNSF Railway Co. has joined other Class Is that have filed lawsuits against rail unions that are fighting implementation of the COVID-19 vaccine mandate, a company spokeswoman confirmed yesterday.BNSF's stance had been that an employee's decision to get the vaccine was personal. But, the railroad implemented a vaccine mandate after the Biden administration required federal contractors to implement a vaccine policy. BNSF is a federal contractor."While we maintain that the decision to be vaccinated for COVID-19 is a personal one — and have encouraged employees to make the decision that is best for them and their families — the Biden administration’s vaccine mandate now obligates BNSF’s employees to be vaccinated and we all must work toward that end," spokeswoman Amy Casas said in an email. "That said, the company has processes in place for reasonable accommodations for employees exempting them from the vaccination requirement."Casas confirmed that BNSF on Sunday joined other Class Is that are suing certain rail unions that are fighting the mandate."It was apparent that there is a Rail Labor Act (RLA) dispute requiring federal court resolution," she said. "BNSF thinks it's logical for all those RLA issues to be resolved in a single, coordinated litigation."Both Union Pacific Railroad and Norfolk Southern Railway — which are federal contractors — are involved in legal battles with rail labor unions over the vaccine requirement.CSX and Kansas City Southern have said they are encouraging their employees to get vaccinated, but have not yet required them to do so.

Rail News Home BNSF Railway 11/9/2021 Rail News: BNSF Railway
BNSF Railway Co. yesterday reported third-quarter 2021 net income rose 14% to $1.5 billion and total revenue climbed 12% to $5.8 billion compared with Q3 2020 income and revenue levels.Operating income during the quarter was $2.3 billion, a 12% increase, and operating expenses were $3.5 billion, an 11% increase, compared to a year ago, according to financial results posted on BNSF's website.The Class I reported an operating ratio of 59.5% in the quarter compared to 59.7% a year ago.BNSF's revenue gain reflected higher volumes of 4% in the quarter. The average revenue per car/unit increased 5%. Higher rates per car/unit and increased fuel surcharges principally from higher fuel prices were offset by business mix changes.Revenue changes were driven by continued improvements from the 2020 effects of the COVID-19 pandemic, partially offset by the ongoing disruptions in the global supply chain. Also during Q3:
• Consumer products volumes increased 3% primarily due to growth in intermodal in both international and domestic shipments driven by increased retail sales, inventory replenishments by retailers and increased e-commerce activity, as well as from growth in automotive shipments;
• Agricultural products volumes decreased 10% due to lower grain exports;
• Industrial products volumes rose 14% due to improvement in the U.S. industrial economy driving higher volumes in construction and building sectors; and
• Coal volumes increased 12% due to increased electricity generation, higher natural gas prices and improved export demand.

Rail News Home BNSF Railway 9/8/2021 Rail News: BNSF Railway
Katie Farmer Photo – bnsf.com