It is reported that Mr Matthew Rose BNSF Railway Chairman and CEO weighed in Thursday on his company involvement in controversial plans to export coal from the Pacific Northwest, saying some of the concerns are overblown and that fewer export terminals will be built than the five now proposed in Washington and Oregon.

Mr Rose said of his swing through Washington state this week including visits to Spokane, Vancouver, Bellingham and Seattle “We owe you as a community more information.”

Mr Rose has led Fort Worth, Texas-based BNSF Railway since 2000. His boss is billionaire investor Warren Buffett, who acquired the railroad in 2010 through his Berkshire Hathaway Inc.

Mr Rose said there been widespread speculation about the potential increase in coal train traffic through the Pacific Northwest driven by half a dozen proposals to construct coal-export operations. Some estimates have pinned the traffic increase at 60 to 100 trains a day but “I promise you, that’s nowhere in the realm of seriousness. It’s not realistic.”

For one thing, Mr Rose said one of the six proposed coal terminals has been shelved. It would have exported as much as 5 million tons of coal a year from the Port of Grays Harbor to Asia.

What’s more, Mr Rose said he doesn’t expect all of the other five terminals to be built. He added that “Five facilities, I do not believe, will ever be built. The market will sort that out.”

Mr Rose said what’s likelier is that the market will support the development of two, maybe three coal terminals. He said that that would put the total amount of potential coal exports from the Pacific Northwest at roughly 50 million to 100 million tons annually. That contrasts with some estimates that pegged it at 150 million tons or more annually.

As a result, Mr Rose said he expects there would be an additional eight to 12 coal-hauling trains maybe 12 to 16 running through the Columbia River Gorge to export facilities in the Northwest. The coal would arrive by rail or rail and barge from the Powder River Basin in Montana and Wyoming.

He said that “That’s a real issue. We don’t deny that eight trains a day or 10 trains a day is going to be an issue.”

Mr Rose said train traffic in Clark County would be affected by proposed coal terminals in Whatcom and Cowlitz counties. He estimated the projects would add six to 10 coal-bearing trains to rails running through the county.

Source - on.fb.me

(www.coalguru.com)