Have you seen the map of the BNSF system? I’ve been thinking about Warren Buffett all day and his purchase of the BNSF Railway. This is a bold move, although not out of line with most of what he has been talking about the last few years in terms of energy efficiency, transport and the cycle of development. Do you think Buffett would buy a railroad that did not have a rail carbon calculator — probably not!
Trains move more freight at lower cost than any other means. That is energy efficiency. When energy prices rise, freight and inter-modal services have major advantages. If your railroad generates electricity in rural areas (where trains go) — then maybe electricty will become the energy source for locomotives. Europe does it, why not North America?
Canadian National railway covers a wide area of Canada and into the U.S. and both of these railroads together would be a formidable linkage, but BNSF is particularly interesting.
BNSF stands to benefit as a convergence happens. Fuel prices will rise undoubtedly, but that coupled with the large amount of goods that will surge into rail cars as the economy in North America picks up, could provide extended benefits.
From a geospatial perspective a period of reinvestment into rail seems possible, with high speed rail also included. New controls, topographic data resources, the move of communities toward sources of power (solar, wind, geothermal) all seem to point to rural development. It is interesting that Buffett has invested in rail to this degree, particularly since he tends to be a longer term investor — that in itself is telltale I think.
Discussion
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