Western Railroad Discussion > BNSF inks deal with US Steel

BNSF Reaches Agreement with U.S. Steel

BNSF has reached a three-year transportation agreement with U.S. Steel, the nation's largest producer of steel products. The agreement is effective immediately. The contract will produce significant top-line revenue growth for this year and, depending on product demands, also for 2002 and 2003.

"This agreement positions BNSF as the primary western rail carrier for U.S. Steel in terms of total tons of product to be transported," says Dave Hallberg, assistant vice president, Metals Marketing. "Our success in capturing this new business is the result of a total team effort involving the support from BNSF's equipment management, operations and marketing teams. This deal never would have happened without the extensive personal involvement from John Keigley, Operations; Doug Langston, Equipment Management; and Bill Houston and Kit Beedle, Marketing."

Three commodity areas will be supported by the new agreement—taconite (concentrated iron ore), metallurgical coal, and coiled sheet steel. BNSF will transport taconite from U.S. Steel's Mountain Iron, Minn., facility to Fairfield, Ala. Volume will move at the rate of one, 120-car train every two and one-half days. The contract calls for one train of metallurgical coal per week to be transported from Norrell Junction, Ala., to Gary, Ind. Coiled sheet steel will be transported from Fairfield to the Houston area.

Karldotcom:
Thanks, I thought all steel came from Korea these days..
ebg