Railroads have been on a roll that most of us just didn't see coming. "The industry, so recently an aging also-ran in the age of superhighways, is now a fountain of superlative figures. ." like 10,000 new jobs since 2009. "This is the best they've been doing in half a century," says a rail consultant. Revenues (income, not profit) have climbed 19% since 2009.
Well, at least one investor apparently saw it coming. Warren Buffett purchased the Burlington Northern RR four years ago for $34 billion, while today the company is estimated to be worth $65 billion.
Improved technology has helped railroads achieve amazing efficiency, that is, work can get done using up fewer resources: just a single gallon of fuel can move a ton of goods 500 miles.
The boom of U.S. domestic oil and gas production is another factor driving railroad growth. It has to be transported as economically as possible. But there's been a challenge in that area, details tomorrow.
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