by Gilbert B Norman
Here we go; I always thought Uncle Warren, or maybe it was just his propagandists, was happy with how BNSF was "earning its keep". Apparently not the case; or at least his heir-apparent:
Wall Street Journal
Fair Use:
Wall Street Journal
Fair Use:
Warren Buffett built Berkshire Hathaway into a trillion-dollar conglomerate by scooping up quality businesses, picking the right CEOs and adopting a hands-off management style.
But the billionaire’s designated successor, Greg Abel, has been taking a more hands-on approach lately with one of its biggest companies, BNSF Railway. Abel has openly discussed his dissatisfaction with the freight railroad’s profit, and BNSF recently tapped an outsider to rethink its operations.
The railroad hired industry veteran Ed Harris, a proponent of precision scheduling, an operating model that is prized by investors and that executives at BNSF have resisted. Harris has told people that Abel recruited him as a consultant for BNSF, according to people familiar with the matter.
A BNSF spokesman said Chief Executive Kathryn Farmer has known Harris for years and the company has a history of seeking outside perspectives to ensure it is delivering the best service possible. The spokesman disputed that Abel initiated the hiring of Harris. Abel didn’t respond to a request for comment; Harris declined to comment.
Harris, 74, is a disciple of the late Hunter Harrison, the father of precision scheduled railroading, or PSR. Harris has helped implement the system at multiple freight railroads in North America. The strategy aims to cut costs in part by running trains on tighter schedules, removing excess equipment, and trying to get more cargo on a return trip rather than having a train return empty. Railroad employees say the strategy threatens jobs, safety and their quality of life, while regulators have said it hurts service.