Brotherhood of Maintenance of Way Employes Division of the International Brotherhood of Teamsters EWS CLIPS October 5, 2012 Randall Brassell, Director of Communications Telephone: 615-521-4097 (Fax) 615-824-2164 Email:
[email protected] STB Orders Berkshire Hathaway to Divest Two Railroads Posted By The Journal of Commerce On October 1, 2012 @ 9:31 am In More News | No Comments Berkshire Hathaway must explain to the federal government how it will divest itself of two railroads, after the company revealed it owns two carriers other than BNSF Railway. Warren Buffett’s company isn’t allowed “to own or control multiple carriers” without the approval of the Surface Transportation Board, the railroad regulatory agency wrote to Berkshire Hathaway on Sept. 18. BNSF wrote the STB on Sept. 13 that it didn’t think that Berkshire Hathaway’s $43 billion purchase of the railroad [1] in 2010 would be subject to STB oversight because the parent company isn’t a rail carrier and it didn’t “believe it owned or controlled any rail carriers.” BNSF and Berkshire Hatwhaway “have recently become aware that two of Berkshire’s more than 75 operating business groups with nearly 2,000 subsidiaries do in fact have entities within their organization structure that own or control an interest in a total of two rail common carriers,” Roger Nober, BNSF executive vice president, law and secretary, wrote the STB. At the time of the purchase of BNSF, Berkshire owned about 90 percent of MidAmerican Energy Holding Company, which owns a majority stake in CBEC Railway, he wrote.