CEO Sees Opportunities In Expanded Panama Canal
Posted on January 29, 2013
The head of BNSF Railway Co. said Wednesday that as much as 30% of Pacific Ocean traffic to West Coast ports could divert through the expanded Panama Canal, creating opportunities for U.S. railroad operators.
Matt Rose, chief executive of the second-largest U.S. railroad by revenue, said it is in talks with the state of Texas about developing a north-south rail corridor to capture new business transiting the canal.
Ports along the Gulf of Mexico and East coasts have been investing heavily in new facilities to handle larger ships ahead of the expected completion next year of measures that will double the Panama Canal’s capacity.
Mr. Rose said at an industry conference in Oak Brook, Ill., that a number of factors will determine how much ocean traffic might bypass West Coast ports such as Los Angeles and Long Beach. BNSF, a unit of Berkshire Hathaway, Inc, BRKB -0.28%this month announced a $4.1 billion capital-spending plan.
—Doug Cameron
Source: http://online.wsj.com/article/SB20001424127887324539304578260192810752074.html