Buffett’s BNSF Cuts Ethanol Shipper Costs Amid Push for Safer Train Cars
by Jarrett Renshaw and Chris Prentice (Reuters) BNSF Railway Co will start offering discounts to ethanol shippers this April if they agree to use new, safer train cars, as it pushes to scrub puncture-prone ones from its rail lines at a faster pace than required by U.S. regulations.
The move by Warren Buffett’s Berkshire Hathaway (BRKa.N) rail company comes even as ethanol shippers have been slow to embrace the new train cars mandated by sweeping new regulations enacted in 2015 after a series of fiery crude oil derailments.
BNSF is offering shippers discounts of $300 per carload if they use newer model tank cars, called DOT 117s, according to a shipping notice seen by Reuters. Ethanol shippers are not required to use those newer cars until 2025, a longer timeline than given to crude oil shippers. READ MORE
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