BNSF Railway: Buffett’s $44 Billion Bet and the Swinomish Trespass Ruling

BNSF Railway runs about 33,400 miles of track across 28 states and three Canadian provinces with 36,000 employees and more than 8,000 locomotives. Its roots reach back to the 12-mile Aurora Branch in Illinois in 1849, but the modern company formed after Burlington Northern and the Atchison, Topeka and Santa Fe announced their merger in 1994 and outlasted a Union Pacific bidding war in early 1995. When Union Pacific then bought Southern Pacific, regulators gave BNSF about 3,500 miles of trackage rights over UP lines. A planned 1999 merger with Canadian National collapsed after the Surface Transportation Board imposed a 15-month moratorium on major mergers. In 2010 Berkshire Hathaway, already holding about 22 percent, bought the rest in a deal valuing BNSF at $44 billion, Berkshire’s largest acquisition.

BNSF earned over $25 billion in revenue and $5.5 billion in net income in 2022. It hauls Powder River Basin coal in unit trains, serves more than 1,500 grain elevators, and runs 100 to 150 trains a day on the Southern Transcon between Southern California and Chicago, double-tracked and triple-tracked at Cajon Pass. It absorbed the Montana Rail Link between 2022 and 2024 and turned aside a 2025 push from Ancora Holdings for a CSX merger in favor of joint intermodal service. A 2023 Federal Railroad Administration report found a gap between leadership’s safety claims and workers’ experience, and in 2024 BNSF furloughed 360 mechanical workers. In June 2024 a federal judge ordered it to pay $400 million to the Swinomish tribe for running far more traffic across the reservation than a 1991 easement allowed.

  • BNSF carries Boeing 737 fuselages by rail from Wichita, Kansas to Renton, Washington.
  • A commemorative SD70MAC, No. 9647, painted in merged Santa Fe and BN colors was nicknamed the Vomit Bonnet.
  • New terminals include the $1.5 billion Barstow International Gateway and the 4,300-acre Surprise Logistics Center in Arizona.
  • In 2014 OSHA ordered BNSF to pay over $526,000 for firing workers at its Havre, Montana terminal who reported injuries.
  • A 2023 lawsuit by WildEarth Guardians and Western Watersheds Project ties BNSF trains to 63 grizzly bear deaths in Montana since 2008.

Leave a Reply

Discover more from pplpod

Subscribe now to keep reading and get access to the full archive.

Continue reading