BNSF Division Realignment

Sad news....................

Those people will have a hard time finding a good job.

Regards,

Swafford

Tom:  what is the technology or whatever that supports these consolidations?

I can't get the division map to work!

Thanks Wyhog!    Don't foresee coal coming back anytime soon, so these lost jobs are probably gone permanently.

mark s posted:

Don't foresee coal coming back anytime soon, so these lost jobs are probably gone permanently.

Never say never, they said the same thing about domestic oil...

Doesn't look like anything real major going on, really. Down a little in 2015. Looking at recent revenues, it looks like total revenues for the BNSF were up 6% in 2013, up 6% in 2014, and down 5% in 2015. Down first quarter 2016. Ebbs and flows of economic trends and commodities, including coal, of course. Lower coal demand, though, wasn't caused by what some might think - it was caused by high customer inventories, mild weather (the recent mild winter), and low natural gas prices (thank fracking for that - as in nature, in economics when you change something, there are ripple effects that most people are often completely unaware of). I suspect there have been some increased productivity factors at work also, including improved information systems, that have contributed to the layoffs. For more complete information:

"First quarter operating income was $1.5 billion, a decrease of $389 million (21 percent) versus 2015. Our lower earnings for the first quarter of 2016 were a result of a continued decline in demand for coal, energy-related commodities and certain other industrial products categories. Total revenues for the first quarter 2016 were down 15 percent compared with the same period in 2015 as a result of a 6 percent decline in unit volume and due to lower fuel surcharge revenues, primarily a result of lower fuel prices. The decline in average revenue per car/unit in 2016 was primarily due to lower fuel surcharges driven by lower fuel prices and business mix changes partially offset by increased rate per car/unit. The impact of lower fuel surcharge revenues affected revenue of all product lines. Business unit first quarter 2016 volume highlights: • Consumer Products volumes were up 9 percent in the first quarter of 2016 compared with the same period in 2015 due to increased international intermodal volumes received from U.S. West Coast ports. During the first quarter of 2015 unit volumes were negatively impacted by congestion on the U.S. West Coast caused by port labor disruptions. • Industrial Products volumes decreased 9 percent in the first quarter of 2016 compared with the same period in 2015, primarily due to lower crude prices impacting petroleum products and frac sand demand. Additionally, there was lower demand for taconite and steel products. • Agricultural Products volumes were up 1 percent for the first quarter of 2016 compared with the same period in 2015. Increases were driven by higher ethanol shipments, as well as a first quarter record for soybean exports through the PNW. • Coal volumes decreased 33 percent for the first quarter of 2016 compared with the same period in 2015. The decrease was due to lower demand driven by high customer inventories, low natural gas prices and reduced electricity generation in part due to historically mild winter weather."

Dominic Mazoch posted:

I can't get the division map to work!

I inserted a file name instead of the pdf image.  That might work better.  Sorry about the failure on first attempt.

Works now, thanks.

But why is Chicago in the SOUTH Region.  And Heartland in the NORTH?  That does not make any sense to me!

Dominic Mazoch posted:

But why is Chicago in the SOUTH Region.  And Heartland in the NORTH?  That does not make any sense to me!

It actually has nothing to do with the geographic connections or the latitude.  In the BNSF management structure, several Superintendents-Operations manage fairly large territories within each division; General Managers head each division; General Managers report to Regional Vice Presidents (of which there are two).  Thus about half of the railroad is assigned to each Regional V.P., and the map shows how the top management felt it would be most equitable.