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Service problems give BNSF 'a lot of work to do,' Buffett says


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#1 CNJRoss

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Posted 02 March 2015 - 10:32 PM

World-Herald, Omaha, NE, 3/1:
 

Service problems in 2014 give BNSF 'a lot of work to do,' Buffett says

 

For the managers of Berkshire Hathaway’s BNSF Railway, the chairman’s letter released Saturday was both a love letter and a rebuke.

 

Warren Buffett lavished the railroad with praise, calling it “by far, Berkshire’s most important non-insurance subsidiary” and an enduring bet on the health of America’s economy.

 

But the employer of about 5,000 people in Nebraska needs to do a far better job, wrote Buffett, who engineered Berkshire’s $26.5 billion purchase of BNSF in 2009.

 

“During the year, BNSF disappointed many of its customers,” Buffett wrote in his 2015 shareholder letter. “These shippers depend on us, and service failures can badly hurt their businesses.”

 

SNIP

 

“The story at BNSF was not good in 2014 ... a year in which the railroad disappointed many of its customers,” Buffett wrote. “This problem occurred despite the record capital expenditures that BNSF has made in recent years, with those having far exceeded the outlays made by Union Pacific, our principal competitor.”

 

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