(The following article by Michael Hooper was posted on the Capital-Journal website on April 13.)
TOPEKA, Kan. — Burlington Northern and Santa Fe Railway attributes about 25 percent of its revenues from trade with Asian countries, such as China.
Because of its reliance on the global economy, BNSF is positioning itself for further growth from imports from the Far East.
BNSF already has a sales office in Tokyo and plans to open another office in Shanghai, a seaport in Eastern China, said Steve Forsberg, spokesman for BNSF.
As companies import automobiles, electronics, computers and other consumer goods into the United States, BNSF is positioned to transport those goods from ports in California. The United States receives more goods from Asia than Europe. This benefits BNSF, which operates all over the western two-thirds of the United States.
Today, Matthew Rose, chairman, president and chief executive officer of BNSF, is expected to talk about BNSF’s role in the world economy as Washburn University’s eighth annual Oscar S. Stauffer Executive in Residence. An early morning speech to students is titled “Rail and the Global Economy,” and his noon luncheon speech is “BNSF in Kansas — A Real Partnership.”
BNSF trains travel on 33,000 miles of track in the western two-thirds of the United States as well as two Canadian provinces. The railway moves more intermodal traffic than any other rail system in the world and is America’s largest grain-hauling railroad.
BNSF is the second largest railroad in the country behind Union Pacific Railroad. In 2003, BNSF’s revenues rose 5 percent to $9.4 billion from $8.9 billion in 2002. About 60 percent of revenues come from the shipment of commodities, such as coal and grain. Agricultural product revenues grew by about 4 percent in 2003, primarily because of a strong export wheat market and a large grain harvest.
However the big growth continues to be in truckload intermodal business, which grew by 19 percent in 2003, according to BNSF’s 2003 annual report. Many trucking firms have been partnering with the railroads as they cope with their own economic challenges — including new federal hours-of-service rules, stricter emissions regulations, driver availability issues and rising insurance and fuel costs.
Railroads continue to be the least expensive way to haul heavy freight over land. On average, U.S. trains moved one ton of freight 408 miles on one gallon of fuel in 2003, according to the Association of American Railroads. That is about three times the fuel efficiency of a truck.
BNSF has cut its staffing levels more than 6 percent to 36,644 in 2003 from 39,217 in 2001. But it now is hiring again at a fairly aggressive pace, primarily because of retirements and a rebounding economy.
BNSF
Headquarters: Fort Worth, Texas
Employees: 36,644 at year end 2003, down 6.5 percent from 39,217 in 2001. There are 4,800 BNSF employees in Kansas and about 1,000 in Topeka. Topeka had 2,500 employees in 1995.
Employment Outlook: Because of a rebounding economy and retirements, BNSF is hiring 1,500 employees every year for the next five years. Pay is $40,000 to $80,000 annually. The company has 120 openings in the Argentine Yard in Kansas City, Kan., which processes an average of 1,814 cars daily, making it the busiest freight yard in the BNSF system.
Forsberg said many BNSF employees are approaching retirement age. Railroad workers now can retire with full benefits at age 60 with 30 years of service because of changes by Congress in the railroad retirement system.
The company expects to hire 1,000 train service workers this year and in each of the next five years. The company also expects to hire 500 workers per year in other crafts, such as track maintenance and railcar repair, Forsberg said.
BNSF has openings for 135 conductors in Lincoln, Neb. There are 120 openings each in Kansas City and Chicago. Alliance, Neb., has 75 openings, he said.
Kansas currently has 4,800 BNSF workers, including 1,000 in Topeka. The company consolidated the locomotive repair shops in Topeka and Burlington, Iowa, into the Topeka shops. About 46 BNSF workers from Burlington are transferring to Topeka this spring.
The shops in Topeka handle heavy locomotive maintenance and overhauls, but Forsberg said that segment of support work isn’t expected to grow. BNSF has one of the newest locomotive fleets in the industry, which has reduced the need for overhauling older locomotives.
General Electric Co., Alstom Transportation, OmniTRAX Locomotive Services and the Electro-Motive Division of General Motors Corp., performed maintenance and overhauls on 3,200 locomotives at rail yards in Galesburg, Ill., Kansas City, Kan., and Alliance, Neb. Forsberg said those outside companies supervised BNSF employees in the maintenance and repair of locomotives.