Fred Frailey's November 2019 TRAINS column regarding disinvestment "to make the numbers" by the Class I roads should be disturbing to any railroad stakeholder. It should be especially disturbing to learn that the BNSF is also engaging in this "unreported liquidation" practice as well. Here is pertinent Fair Use quotstion from Mr. Frailey's column:
To date, the media has reported that BNSF has resisted pressures to adapt Precision Railroading on the property. What I've learned of these practices, PSR holds that the shipping community is there to serve the railroad, that will handle their traffic at their convenience. As such, it is an unreported liquidation of the property, for In a competitive transportation environment, it's supposed to be the other way around.
Now I suppose the next development will be BNSF embraces PSR.
That leaves BNSF Railway, which appears to be torn. I sense that CEO Carl Ice wants to keep investing in a bigger railroad, but last year BNSF returned twice as much to owner Berkshire Hathaway ($5.5 billion) than it had in 2016, and had to borrow to fund capital spending.When Warren has made a major investment, his philosophy has been a holding period of "forever". As a result, BNSF needed not to be concerned with next quarter's "numbers" be they the "whispers" leaked to analysts or any other party in interest.
To date, the media has reported that BNSF has resisted pressures to adapt Precision Railroading on the property. What I've learned of these practices, PSR holds that the shipping community is there to serve the railroad, that will handle their traffic at their convenience. As such, it is an unreported liquidation of the property, for In a competitive transportation environment, it's supposed to be the other way around.
Now I suppose the next development will be BNSF embraces PSR.
