Buffett: No need for more BNSF rail car buys on Keystone delay

Wed Apr 23, 2014 6:30pm EDT
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NEW YORK (Reuters) - Warren Buffett, the chairman of Berkshire Hathaway (BRKa.N: Quote), said on Wednesday the company's BNSF railroad unit probably will not need to expand its rail car purchases as a result of delays in the Keystone pipeline construction.

In addition, he said that the rail industry as a whole remains concerned about safety after a recent string of accidents.

"It's true that the world is going to need an improved tank car," the iconic investor said in an interview with Reuters. How to transport oil by rail safety is "all" the industry is thinking about, he said

Among the worries he cited was the potential for cyber attacks at Berkshire companies, particularly those with large physical facilities such as BNSF and utility operations.

"It's something that the CEOs of our companies worry about plenty," he added.

BNSF plans to move into tank car ownership and buy its own fleet of up to 5,000 new crude oil tank cars with safety features that exceed the latest industry standards.

(Reporting by Luciana Lopez; Editing by Steve Orlofsky)

Investor Warren Buffett poses for a portrait during an interview after a luncheon to benefit the Glide Foundation of San Francisco in New York April 23, 2014. REUTERS/Lucas Jackson