High Speed Rail // Current

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1 month ago

Warren Buffett Makes a $44 Billion (!) Bet on Trains, Buys BNSF

Has the Oracle of Omaha seen the future? If so, it seems to include more trains, because Berkshire Hathaway, Warren Buffett's investment vehicle, decided to buy the remaining 77.4% of Burlington Northern Santa Fe (BNSF) railway that it didn't already own, and the price tag wasn't small: 44 billion dollars when cash, stock and debt are included. Mr. Buffett says that he's betting on "the United States", because "railroad operators cannot do well unless American businesses were producing goods and customers were buying them." But is it possible that he's also betting that relatively fuel-efficient trains will play a bigger role in the future of transportation?

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BNSF is one of only four remaining transcontinental railways, and the second largest one in the US after the Union Pacific Railroad. It is said to be better managed and more forward-looking, though (for example, it installed pipes carrying optical fiber next to its tracks in some places, allowing it to carry both heavy freight and digital goods).

The NYT writes:

The deal, which including Berkshire's previous investment and the assumption of $10 billion in Burlington Northern debt brings the total value to $44 billion, represents what Mr. Buffett said was a big bet on the United States.

BNSF is a freight company, but many Amtrak routes use BNSF rails, and maybe one of Buffet's plans is to expand into passenger rail? This could certainly be a growth sector if oil becomes more expensive and low-carbon technologies are given a push because of concerns about global warming.

Trains area already pretty fuel-efficient by amount of weight they carry, but new technologies such as hybrid and electric locomotives could make them even greener.

One of the side benefits of this investment by Mr. Buffett could be rising the profile of rail in the US. This could attract other investors - many of whom try to follow Buffett wherever he goes - and help modernize the rail network in the country.

http://www.treehugger.com/files/2009/11/warren-buffet-buys-bnsf-railway-trains-berkshire.phpHas the Oracle of Omaha seen the future? If so, it seems to include more trains, because Berkshire Hathaway, Warren Buffett's... more

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16 days ago

‘Company’ to Country’ strategy leads to growth opportunities

GE and its Chinese partners that represent some of that country’s key infrastructure development goals announced the signing of a series of “Country to Company” agreements aimed at promoting collaboration between GE and Chinese public and private sector aviation, energy and transportation organizations. The announcements, which were made as part of "GE's Clean Technology Week in China" activities, included the formation of two joint ventures – in avionics and locomotive engines; and the parties’ agreements to explore future “cleaner coal” gasification and high-speed rail opportunities.

The agreements encourage active collaboration to advance clean technologies that address both long-term strategic challenges and economic opportunities for GE and China. Over time, these initiatives are expected to create and safeguard thousands of jobs in both countries.

Jeff Immelt, Chairman and CEO of GE said, “These agreements share common themes – rapid growth potential, clean technologies and job creation. Whether expanding our existing aviation, energy and transportation relationships or looking at technology collaborations to open up new growth opportunities, partnerships like these help protect and grow employment for both GE and China’s infrastructure sectors.

“We expect these investments and commitments to yield long-term benefits,” Immelt said. “New global sales will be a direct result of these collaborations – safeguarding and growing U.S. jobs while supporting Chinese growth for GE businesses and the Chinese aviation, energy and transportation industries,” Immelt said. These partnerships will also give GE the opportunity to strengthen our own local capabilities, enhancing our ability to serve our Chinese customers as that nation drives its technology initiatives.”

Mark Norbom, GE’s president & CEO for Greater China, said: “The deals we are signing are built upon GE's rapid growth in mainland China in the first three quarters of 2009. They not only represent tremendous growth opportunities for our China platforms but also support jobs in the United States. The partnerships we are building with the Chinese industry leaders will better position GE in strategic growth sectors in China such as aviation, transportation and energy. "
http://3blmedia.com/theCSRfeed/GE-Chinese-Partners-Sign-Agreements-Advance-Clean-Technologies-Create-JobsGE and its Chinese partners that represent some of that country’s key infrastructure development goals announced the signing... more