MANKATO, Minn. Though the recession roiled the rail industry in 2009, the head of a Texas-based railway company is bullish about its Asia-enhanced future, The Free Press reports.
China is the next big thing in our industry, Matthew Rose told attendees Monday at the Minnesota Grain and Feed Association convention in Verizon Wireless Center.
Rose, president and CEO of Burlington, Northern Santa Fe Railway, said two of the most prominent issues impacting the future of agriculture are Americas expanding role in providing the worlds food supply and Asias economic growth.
Asians increased incomes have led to a growing demand for food products, he said. Theyre able to purchase more products and consume more complex products.
Rose said by 2014 most of Chinas population will live in urban areas, a tremendous demographic shift from even a decade ago.
And the rail company has been ramping up to meet that demand for agricultural products, which comprise 11 percent of its total freight business.
Rose said the company bought 357 locomotives in 2009 and in the past decade has purchased 2,500.
The company shipped about 200,000 carloads of agricultural products out of Minnesota in 2009.
Rose said energy costs company trains burn 1.4 billion gallons of oil a year will continue to have a salient impact on the rail industry. But he also is solidly optimistic about the nations economic rebound.
We know the economy is going to recover.
Rose, 49, ascended quickly in the management ranks of Burlington, Northern Santa Fe and became its CEO in 2002.
The railroads 2008 profit went up 16 percent despite weaker freight demand, and revenue was $18.02 billion, up 14 percent from the year before.
Business Week magazine calculated Roses total compensation package for the past fiscal year at more than $15 million.
(This item appeared in the Free Press Feb. 9, 2010.)
