MARKETS

Coal rises but intermodal saves BNSF quarter

RAIL shipper Burlington Northern Santa Fe, which marked upped revenue in the third quarter, said ...

Donna Schmidt

In its recently released third-quarter performance summary, the company said its total traffic rose 5% year on year to 2.6 million car loads, with industrial products seeing the biggest climb – 9% – to 485,000 units.

BNSF said the sector’s revenue was up 12% to $1.5 billion, primarily due to an increase in petroleum product shipments stemming from a rise in crude unit train loadings.

Coal was another relative winner for the company’s period, with a 5% rise in volume to 605,000 units.

Revenue also rose 5% to $1.3 billion, which the company attributed to increased commodity demand that resulted from higher natural gas prices and reduced utility stockpiles.

Consumer products were also up for BNSF, posting a 6% volume increase, but agricultural shipments declined 5% during the quarter.

The shipper said drought conditions and a high level of competition played a part in the drop.

In all, BNSF’s quarterly freight revenue was up 5% to $5.4 billion, while total operating revenue was $5.6 billion, a 6% increase.

Also, operating income was up 4% to $1.7 billion and net income rose 6% to $989 million.

The company’s volume results became a question mark, at least in the western US, after severe rains and flooding in Colorado impacted its lines in the region.

BNSF spokesman Matt Jones told the Associated Press it was forced to re-route two of its lines between Wyoming and Colorado to the east through Nebraska and through Cheyenne, Wyoming.

“The disruptions are in Colorado, not in Wyoming, but it is disrupting some of the traffic in Wyoming,” he said at the time.

“We're working around the clock to restore service, but in some of these places we're waiting for the water to recede.”

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