BNSF Railway - statistics & facts
The BNSF Railway Company was the the second leading North American railroad company in 2023, with a total operating revenue of over 23.8 billion U.S. dollars. A subsidiary of Berkshire Hathaway—one of the companies with the highest market capitalization worldwide—BNSF Railway plays a significant role in developing the freight railroad industry in the United States. With a rail network of 32,500 route miles, it connects businesses in 28 states in the U.S. and three Canadian provinces.
The company’s 2023 performance improved compared to 2022, when consumer product demand continued to feel the disruption caused by the Covid-19 pandemic, especially in the automotive sector. By example, its operating revenue was up some 11.6 percent year-over-year, and surpassed its pre-pandemic earnings from 2019. However,despite the improved performance, the railroad operator’s operating expenses remained high in the 2023 fiscal year. Fuel price inflation through 2024 due to the continuation of the war in Ukraine might lead to further expense increases.
North American railroads tend to be the highest valued railway companies worldwide, with Union Pacific topping the sector ranking in 2023. However, BNSF’s parent company dwarfed Union Pacific a year earlier, with a market capitalization over four times that of the railway operator. BNSF was Berkshire Hathaway’s seventh-largest source of revenue in 2023.
BNSF’s slow recovery through its rail freight operations
BNSF generated around 22.9 billion U.S. dollars in freight revenue in 2023, making its rail freight operations its primary source of income. The railway operator hauls products from consumer to coal, agricultural or industrial commodities. Its major share of freight revenue comes from the consumer products sector, such as automotive, which makes up over 37 percent of its freight earnings. In 2023, the railroad hauled 1.6 million carloads of industrial products and over 1.4 million carloads of coal products. While coal is one of the key commodities traded across North America, forecasts are not optimistic for this commodity. As the United States moves toward more sustainable and renewable energy uses, the electric power sector—the leading sector for coal use in the U.S.—has been steadily decreasing its coal consumption. This market development will increase the importance of other types of freight as BNSF’s primary source of income.The company’s 2023 performance improved compared to 2022, when consumer product demand continued to feel the disruption caused by the Covid-19 pandemic, especially in the automotive sector. By example, its operating revenue was up some 11.6 percent year-over-year, and surpassed its pre-pandemic earnings from 2019. However,despite the improved performance, the railroad operator’s operating expenses remained high in the 2023 fiscal year. Fuel price inflation through 2024 due to the continuation of the war in Ukraine might lead to further expense increases.
A global and regional freight leader
BNSF Railway is often ranked among the best Class I freight rail companies worldwide. The Union Pacific Railroad Company is its main competitor in the NAFTA market. With Union Pacific’s freight revenue reaching over 22.5 billion U.S. dollars in 2023, the two companies held most of the market in terms of revenues. BNSF was also the leading North American railroad company based on carloads. With close to 9 million carloads transported in 2023, it dwarfed its main competitor by almost one million.North American railroads tend to be the highest valued railway companies worldwide, with Union Pacific topping the sector ranking in 2023. However, BNSF’s parent company dwarfed Union Pacific a year earlier, with a market capitalization over four times that of the railway operator. BNSF was Berkshire Hathaway’s seventh-largest source of revenue in 2023.
