Western Railroad Discussion > Best Route Structure UP or BNSF?

Good Morning:

Which railroad, UP or BNSF, has the best route structure overall, based on markets served and transit times from major interchange locations with eastern roads to the west coast?

Thank you in advance.

Not sure there is one answer as it depends heavily on which commodity and route direction.

If you're talking east-west priority intermodal then it is easily BNSF. Minus the Sunset route into TX and connection with NS at Shreveport for the UP, they simply don't have the route structure to compete with BNSF in east-west lanes. However, flip that to north-south routes especially ones that connect with Mexico and UP has a distinct advantage in the north-south priority intermodal business.

For lower priority domestic intermodal or international it's pretty much a wash between the two as other factors matter more than simply who has the shorter route.

As far as auto traffic this one tilts heavily in favor of UP, especially with regard to access to more western markets and interchange into Mexico. With that stated BNSF has made up some ground especially with plants in the south as BNSF is hauling a fair amount of traffic out of places like Birmingham.

Coal tilts heavily toward BNSF as minus access to the ever shrinking CO/UT coal mines they simply have access to more WY/MT mines than does UP.

As far as chemical traffic, this is a UP dominant commodity as they still have a decided lock on much of the Gulf coast plants.

Oil is pretty even as BNSF has the Bakken fields why UP has the Permian basin.

All other commodity groups such as grain are so variable it's hard to really say much.

PRR_4859 Wrote:
-------------------------------------------------------
> Good Morning:
>
> Which railroad, UP or BNSF, has the best route
> structure overall, based on markets served and
> transit times from major interchange locations
> with eastern roads to the west coast?
>
> Thank you in advance.



Edited 1 time(s). Last edit at 06/13/18 05:28 by AaronJ.

"All other commodity groups such as grain are so variable it's hard to really say much. "

I can say that with grains/soybeans I think BNSF has some advantages. Especially in Hard Red Spring out of the northern states. Exports out of the PNW mostly arrive on the BNSF. UP has better north/south traffic to the Gulf. Rate issues are a big player as to who gets the haul too.

I seem to recall that Fred Frailey wrote an article in Trains about a year ago on that very question, best route structure of all Class I's. He gave the edge to UP. Worth finding and reading.

Mexrail

mexrail Wrote:
-------------------------------------------------------
> I seem to recall that Fred Frailey wrote an
> article in Trains about a year ago on that very
> question, best route structure of all Class I's.
> He gave the edge to UP. Worth finding and
> reading.
>
> Mexrail

Was about to post this. It was significantly more than a year ago, though, I'm pretty sure.


EDIT: 98% sure the issue is November 2010 -- "Ultimate Railroad."


Posted from iPhone



Edited 1 time(s). Last edit at 06/13/18 12:27 by FiestaFoamer.

In comparing the 2 railroads you have to factor in this: one is privately owned (BNSF) and one is publicly owned (UP). In that regard I tend to believe it gives BNSF a bit more leeway in regards to rate structure. They seem to be more willing to go after volume business (especially grain and coal) in exchange for a bit lower rate of return, something UP tends to frown on. But UP does have stockholders to answer to so...

Even though oil train traffic isn't near what it was 3 years ago BNSF still benefits from North Dakota shale oil production, just as the oil/gas boom in the Permian Basin of west Texas and eastern New Mexico has benefited BNSF and UP, especially UP (pipe and frac sand). I suspect UP never dreamed they would be hauling so much frac sand as they are now, and despite new sand mines opening in west Texas the demand for various grades of frac sand from Nebraska, Wisconsin, Illinois, Missouri, Arkansas, ect. just keeps going up.



Allen



Edited 2 time(s). Last edit at 06/13/18 08:57 by bradleymckay.

Coming out of Southern California UP is unique in that it has four ways to leave for other parts of the country.

CN.

One reason BNSF tried to merge with them two decades ago.

Dick Eisfeller

UP used to be very good stock to own. But now seems that some type of "hedge fund fear" has caused a fevered drop operating ratio concept that may be causing loss of profitable traffic which BNSF seems to be willing to pickup. Still own UP stock and wish them good luck and feverishly enjoy the ongoing steam program.

SuperChiefDon