Railroad News

Rail News Home Canadian National Railway - CN 3/2/2022 Rail News: Canadian National Railway - CN
CN has asked the Surface Transportation Board (STB) to condition any approval of the Canadian Pacific-Kansas City Southern merger on the divestiture of the KCS line from Kansas City, Missouri, to Springfield and East St. Louis, Illinois, to CN.CN made the request based on the STB’s statutory authority to order “the divestiture of parallel tracks" as a merger condition, company officials said in a press release. Granting CN control of what it calls the "Kansas City Speedway" line would provide rail customers with a new competitive option to move goods across a key North American economic corridor, they proposed.CN would invest in the Kansas City Speedway, which would "benefit customers and communities, create union and management jobs, and produce substantial environmental benefits by taking 80,000 trucks off the road annually," company officials said."Under the right ownership, we believe there is a clear opportunity to bring widespread economic benefits for customers and communities across the American Midwest and Canada," said CN Executive Vice President and Chief Operating Officer Rob Reilly. "CN has a comprehensive plan for the Kansas City Speedway that will increase competition, create jobs, reduce roadway congestion, and positively impact the environment."CN’s creation of the Kansas City Speedway would ensure that automotive and intermodal customers in particular would have "greater competitive shipping options between Eastern Canada, Detroit, Chicago and Kansas City," CN officials said.Over 70 letters of support for the proposal have been filed with the STB, they added.

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.