Memphis is a major player in the emergence and transformation of the railroads into a primary transportation mode of business and commerce both domestically and internationally. Iconic, mutual fund investor, Warren Buffett, has added his confirmation of the shift in transportation with an 'all-in wager' in the Berkshire Hathaway $34 Billion dollar acquisition of Burlington Northern (BNSF) railroad, the 2nd largest railroad in the country. In true Buffet fashion, he is quoted on msnbc.com as saying, “Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team and the railroad industry. Most important of all, however it’s an all-in wager on the economic future of the United States. I love these bets” (read the entire article here). So what does that have to do with Memphis?BNSF recently opened its $300 million "Memphis Intermodal" sort located on Lamar just north of Shelby Drive. With lift capacity in excess of 500,000 per year, the Memphis operation is reflective of the BNSF preparations for a changing focus of moving goods and products via the more 'green' railroad mode for longer distance shipping and shifting the trucking industry to more short-haul focus. The BNSF/Berkshire/Buffett combination makes a 'killer Bs' alignment for the Memphis economy. According to the BNSF website, “The expansion creates a sort of ripple effect of other new developments and growth in an area buzzing with warehouses, distribution centers and other transportation industries.” These new lifts not only help to fuel jobs and commerce locally, but they further edify Memphis’s role in the global marketplace as a transportation/distribution hub.
During difficult economic times, the major railroad companies continue to invest or have plans to invest more than $1 billion in rail infrastructure enhancements in the Memphis market.
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