December 04, 2008

BNSF coal traffic to exceed 290 million short tons in 2007

Platts reported that Burlington Northern Santa Fe Railway's total coal tonnage is expected to exceed 290 million short tons in 2007, as mines in the Powder River Basin are off to a great start in the Q4 of 2007.

Mr John Lanigan executive VP and CMO of Burlington Northern Santa Fe Railway during a third quarter conference call told reporters that significant flooding and washouts in the Midwest affected Burlington Northern Santa Fe Railway's coal traffic early in Q3 of 2007 and while operations rebounded quickly, Powder River Basin mines kept the railroad from significantly increasing shipments out of the basin during the remainder of the quarter.”

Mr Lanigan added that "Utility forecasts continue to indicate higher demand than what the mines are producing." But he added that the railroad has seen improvement in mine loadings in recent weeks. Demand for Powder River Basin coal is strong noting that the Powder River Basin burn is up 5% year to date over the 2006 period.

Mr Lanigan also said the railroad is focusing on improving the efficiency of its coal operations, which includes replacing some of the older steel railcars with aluminum railcars that are lighter and more efficient.

Burlington Northern Santa Fe Railway loaded a total of 228.2 million short tons through October 15, an increase of almost 2% over the 2006 year to date total of 224.5 million short tons.

Burlington Northern Santa Fe Railway's coal revenues were up by 14% YoY to USD 849 million in Q3 of 2007 and the results included a net increase in revenues of USD 14 million as a result of developments in several coal rate disputes.