Railcar makers rally as BNSF seeks to buy up to 5K safer oil cars

|By:, SA News Editor

Berkshire Hathaway's (BRK.A, BRK.B) BNSF Railway says it plans to buy its own fleet of up to 5,000 new crude oil tank cars with safety features that exceed the latest standards adopted by the industry more than two years ago.

BNSF's plan, unusual for a railroad which generally owns only the tracks and locomotives that pull trains, is intended to further the industry's push for safer movement of crude by rail in light of several recent derailments and crashes, including one involving a BNSF train in North Dakota last December.

BNSF isn't identifying railcar makers from which it will seek bids, but U.S. manufacturers include Trinity Industries (TRN +9.5%), American Railcar Industries (ARII +10.3%) and Greenbrier (GBX +5.4%).