Tuesday, November 03, 2009

Warren Buffet is betting on fuel-efficient transportation infrastructure:

Nov. 3 (Bloomberg) -- Warren Buffett’sBerkshire Hathaway Inc. agreed to buy railroad Burlington Northern Santa Fe Corp. in what he described as an “all-in wager on the economic future of the United States.”
The purchase, the largest ever for Berkshire, will cost the company $26 billion, or $100 a share in cash and stock, for the 77.4 percent of the railroad it doesn’t already own.

Trains stand to become more competitive against trucks with fuel prices high, he[Buffet] has said.



It's also a bet that there will be no significant change in the transportation technology. Introduction of energy-efficient trucks will take a very long time.

see also Energy Use for Transportation from DOE.

tags: greatest, infrastructure, example, distribution, transportation, efficiency, niche construction,

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