BNSF Railway
BNSF Railway is the largest freight railroad in the United States. One of six North American Class I railroads, BNSF has 36,000 employees, of track in 28 states, and over 8,000 locomotives. It has three transcontinental routes that provide rail connections between the western and eastern United States. BNSF trains traveled over in 2010, more than any other North American railroad.
The BNSF Railway Company is the principal operating subsidiary of parent company Burlington Northern Santa Fe, LLC. Headquartered in Fort Worth, Texas, the railroad's parent company is a wholly owned subsidiary of Berkshire Hathaway Inc., of Omaha, Nebraska. The current CEO is Kathryn Farmer.
According to corporate press releases, BNSF Railway is among the top transporters of intermodal freight in North America. It also hauls bulk cargo, including coal.
The creation of BNSF started with the formation of a holding company on September 22, 1995. This new holding company purchased the Atchison, Topeka and Santa Fe Railway and Burlington Northern Railroad, and formally merged the railways into the Burlington Northern and Santa Fe Railway on December 31, 1996. On January 24, 2005, the railroad's name was officially changed to BNSF Railway Company using the initials of its original name. Warren Buffett's Berkshire Hathaway acquired BNSF Railway in February 2010, obtaining all of its shares and taking the company private.
BNSF and its chief competitor, the Union Pacific Railroad, have a duopoly on all transcontinental freight rail lines in the Western, Midwestern and West South Central United States and share trackage rights over thousands of miles of track.
History
BNSF's history dates to 1849, when the Aurora Branch Railroad in Illinois and the Pacific Railroad of Missouri were formed by a group of millers who were granted a charter to build a -long railroad that connected Aurora with the Galena & Chicago Union Rail Road. The Aurora Branch eventually grew into the Chicago, Burlington and Quincy Railroad, a major component of successor Burlington Northern. Part of the Pacific Railroad became the St. Louis-San Francisco Railway.The Atchison, Topeka and Santa Fe Railway was chartered in 1859. It built one of the first transcontinental railroads in North America, linking Chicago and Southern California; major branches led to Texas, Denver, and San Francisco. The Interstate Commerce Commission denied a proposed merger with the Southern Pacific Transportation Company in the 1980s.
The Burlington Northern Railroad was created in 1970 through the consolidation of the Chicago, Burlington and Quincy Railroad, the Great Northern Railway, the Northern Pacific Railway and the Spokane, Portland and Seattle Railway. It absorbed the St. Louis-San Francisco Railway in 1980. Its main lines included Chicago-Seattle with branches to Texas and Birmingham, Alabama, and access to the low-sulfur coal of Wyoming's Powder River Basin.
The city of Burlington, Iowa is the namesake of Burlington in each of Chicago, Burlington and Quincy Railroad, Burlington Northern Railroad, and BNSF.
BN-ATSF merger
On June 30, 1994, BN and ATSF announced plans to merge. They were the largest and smallest of the "Super Seven", the seven largest of the then-twelve U.S. Class I railroads. The long-rumored announcement was delayed by a disagreement over the disposition of Santa Fe Pacific Gold Corporation, a gold mining subsidiary that ATSF agreed to sell to stockholders. This announcement began the next wave of mergers, as the "Super Seven" were merged down to four in the next five years. The Illinois Central Railroad and Kansas City Southern Railway, two of the five "small" Class Is, announced on July 19 that the former would buy the latter, but this plan was called off on October 25. The Union Pacific Railroad, another major Western system, started a bidding war with BN for control of the SF on October 5. The UP gave up on January 31, 1995, paving the way for the BN-ATSF merger. Subsequently, the UP acquired the Southern Pacific Transportation Company in 1996, and Eastern U.S. systems CSX Transportation and Norfolk Southern Railway split Conrail in 1999.On February 7, 1995, BN and ATSF heads Gerald Grinstein and Robert D. Krebs announced that shareholders had approved the plan, which would save overhead costs and combine BN's coal and ATSF's intermodal strengths. Although the two systems complemented each other with little overlap, in contrast to the Santa Fe-Southern Pacific merger, which failed because it would have eliminated competition in many areas of the Southwest, BN and ATSF came to agreements with most other Class Is to keep them from opposing the merger. UP was satisfied with a single segment of trackage rights from Abilene, Kansas, to Superior, Nebraska, which BN and ATSF had both served. KCS gained haulage rights to several Midwest locations, including Omaha, East St. Louis, and Memphis, in exchange for BNSF getting similar access to New Orleans. SP, initially requesting far-reaching trackage rights throughout the West, soon agreed to a reduced plan, whereby SP acquired trackage rights on ATSF for intermodal and automotive traffic to Chicago, and other trackage rights on ATSF in Kansas, south to Texas, and between Colorado and Texas. In exchange, SP assigned BNSF trackage rights over the former Chicago, Rock Island and Pacific Railroad between El Paso and Topeka and haulage rights to the Mexican border at Eagle Pass, Texas. Regional Toledo, Peoria and Western Railway also obtained trackage rights over BN from Peoria to Galesburg, Illinois, a BN hub where it could interchange with SP. The Interstate Commerce Commission approved the BNSF merger on July 20, 1995, less than a month before UP announced on August 3 that it would acquire SP. Parents Burlington Northern Inc. and Santa Fe Pacific Corporation were acquired on September 22, 1995, by the new Burlington Northern Santa Fe Corporation. The merger of the operating companies was held up by issues with unions; ATSF merged on December 31, 1996, into BN, which was renamed the Burlington Northern and Santa Fe Railway Company.
Effect of UP-SP merger
Union Pacific's merger with Southern Pacific further enlarged the combined BNSF network. Unlike BN and ATSF, UP and SP had significant overlap, where the end of competition between the two risked creating a monopoly for freight carriage in much of the West. UP and BNSF announced in late September 1995 that, in exchange for BNSF not opposing the merger, it would obtain ownership of of line and about of trackage rights to reach these "two-to-one" shippers. Significant additions included rights over SP's Central Corridor from Denver via the Moffat Tunnel and Salt Lake City, and over Donner Pass, to the San Francisco Bay Area, with an alternate route through the Feather River Canyon along UP. The ATSF trackage in California's Central Valley was linked to BN's line into Oregon, through trackage rights over UP between Stockton and Keddie and acquisition of UP's section of the "Inside Gateway" to the beginning of BN trackage at Bieber. In Texas, BNSF received rights in several directions from the Houston area: west over UP to San Antonio, with a branch to Waco, and continuing over SP to Eagle Pass ; south over UP to Brownsville; east over SP to New Orleans ; and northeast over SP to Memphis with a branch on UP to Little Rock. Ownership of a short connection between Waxahachie and Dallas also went from UP to BNSF. UP, in return, got a few short sections of trackage rights over BNSF, mainly connecting the SP at Chemult to the UP at Bend, Oregon, and connecting the SP at Mojave, California with existing UP rights on ATSF at Barstow, California. On April 18, 1996, UP, BNSF, and the Chemical Manufacturers Association entered into an agreement giving BNSF rights over the UP line between Houston and East St. Louis, paralleling the Houston-Memphis SP line, and allowing BNSF to participate in the UP's plan for directional running, in which each line would serve through trains in only one direction. The Surface Transportation Board, successor to the ICC, approved the UP-SP merger on July 3, and UP control of SP took effect on September 11, 1996. BNSF trackage rights operations began on the Central Corridor on October 10, and soon thereafter on other lines.BNSF continued projects started by its predecessors, most notably BN's work on reopening Stampede Pass. BN had closed Stampede Pass, the Northern Pacific Railway's main line across Washington, in 1984, in favor of the ex-Great Northern Railway's Stevens Pass. BN never abandoned the line and began rehabilitating it in early 1996, and the route reopened in early December, relieving the crowded Stevens Pass. The ex-ATSF main line, now known as the Southern Transcon, has also seen steady work to add tracks, giving BNSF more capacity on this major intermodal route.