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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.

Rail News Home Union Pacific Railroad 2/28/2022 Rail News: Union Pacific Railroad
Union Pacific Railroad announced last week that it has lowered its fuel consumption for the third year in a row, helping its customers eliminate 22.9 million metric tons of greenhouse gas (GHG) emissions by choosing rail over truck.In 2021, the Class I’s fuel consumption rate — measured in gallons of fuel per thousand gross ton-miles — improved 1%, its best-ever performance. On average, rail consumes three to four times less fuel than moving the same freight on the highway, UP officials said in the railroad’s Inside Track blog.The record comes as UP began 2022 by advancing its ESG goals, including purchasing the world's largest carrier-owned fleet of battery-electric locomotives for testing in yard operations. First deliveries are expected in late 2023. In late December, UP released its climate action plan, which includes a commitment to pursue net zero emissions by 2050.The railroad’s fuel-efficiency gains can be attributed to numerous operational and technological advancements, including identifying ways to reduce idling engines and ensuring that the optimal horsepower is used to haul freight.Another key element is expanding and improving the use of energy management systems (EMS) on nearly 2,900 locomotives in the railroad’s fleet. Installation of the original EMS prototype occurred in 2011.Today, the system has been refined and improved, with more train crews using the system sooner and longer on individual train trips. The goal is to finish installing the system in all of UP’s high horsepower locomotive fleet by 2024.