Berkshire s Buffett on BNSF Railway and energy effciency

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“Morning. My name is bill moyer and i m from vashon island. Washington and i i m part of a team called the solution airy rail project interestingly only. 35 the value of freight in the us.

Moves on trains berkshire hathaway is incredibly well positioned with its investments in the northern and southern transcon through bnsf to grab far more of that freight traffic off of the roads and get diesel out of our communities as well as harness transmission corridors for your berkshire renewable energy assets for which you re obviously very proud would you consider meeting with us to cancel for utilizing your assets and leveraging. A public private partnership to electrify your railroads and open those corridors for renewable energy future no i we ve examined a lot of things in terms of lng. I mean there obviously we want to become more energy. Efficient as well as just generally efficient and i m not sure about the value of freya mentioned three and a half percent.

I believe i mean i m not sure what figured you re using as as the denominator there because if you look at if you look at the movement of traffic by ton miles. Rails are around 40 of the us..


We re not talking local deliveries or all kinds of things like of that but they re 40 percent. Roughly by rail and bnsf moves more ton miles that any other entity. We move 15 percent plus of all the ten miles moved in the united states. But if you take trucking for example.

An intermodal freight. We re extremely competitive on the longer hauls. But the shorter of the haul. The more likely.

It is that the flexibility of a freight where a truck can go anyplace and we have rails so the equation changes depending on distance hauled and other factors. But distance all those it is a huge factor..


We can move a ton mile with 500. We can move 500 plus. 10 miles afraid for one go gallon of diesel. And that is far more efficient than trucks.

So the long haul traffic and the heavy traffic traffic. It s going to go to to the rails and we try to improve our part of the equation on that all the time. But it s going to transport something 10 or 20 or 30 miles between a shipper and a receiver. And there you re not going to move that by rail so we look at things all the time i can assure your car all ice is in place probably here now and they ll be in the other room and yeah.

And he s running the railroad you re free to talk to him. But i i don t see any breakthrough like you re talking about i do see us getting more efficient year my year by year and and obviously if if trucks driverless trucks become part of the equation that moves things toward trucking..


But our long haul heavy stuff you know and there s a lot of it you re looking at the railroad that that carries more than than than any other mode of transportation and bnf bnsf. It was the leader charlie well our questioner is on the side of the angels sooner or later. We ll have a more like electrified. I think gregg will decide what happens yeah.

But we re all working on the technology. But and we re we re considerably more efficient than 10 20 30 years ago. If you look at the numbers. But it wasn t wasn t indicate went one interesting figure they cried after world war two when the country probably had about 140 million people against her 330 million.

Now. So we had 40 percent of the population..


We had over a million and a half people employed in the railroad industry. Now there s less than 200000. And we re carrying a lot more freight now. There s obviously there s at some change in passengers.

But the the efficiency of the railroads compared to and the safety compared to what it was even immediately after world war two has ” ..

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