Comments on: Buffett Buys Burlington Northern: The Green Dimension

By: David Schatsky

David Schatsky — Thu, 05 Nov 2009 17:33:21 +0000

I suspect that becomes even more true as the cost of carbon-intensive fuel rises relative to other things. Thanks for your comment.

By: David Schatsky

David Schatsky — Thu, 05 Nov 2009 17:32:05 +0000

Very interesting point, Anthony. Indeed you are right that the company ships vast amounts of coal--the say "enough coal to generate nearly 12 percent of the nation's electricity." The company reported loading some 274.7 million tons of coal in the Powder River Basin in 2008. Judging from EIA figures that's 55% of all the coal mined in that region and 23% of all coal produced in the U.S. last year. EID forecasts increased coal production in the Western Region through 2030, though with slowing growth. I suspect Buffett would posit a shift in freight from trucks to rail in coming years which could foster growth for the company while also mitigating a slowdown in coal shipments.

By: Anthony Brown

Anthony Brown — Thu, 05 Nov 2009 14:56:02 +0000

Although a very efficient form of transport, one of BNI’s largest passengers is coal, for our energy use, as well as Chinas. Stepping away from coal powered power plants to something more clean like natural gas, isn’t something BNI is going to be happy about.

By: Dikaios Logos

Dikaios Logos — Thu, 05 Nov 2009 14:16:43 +0000

I agree this is the biggest cleantech play yet. One point in sustainability you missed relates to network effects and cities. Cities are much more sustainable/green than remote areas served by Wal-Marts located out on miles of empty highways. By strengthening their rail links, cities, including ‘rust belt’ ones become much more cost competitive with sprawling areas.