MANKATO — Though the recession roiled the rail industry in 2009, the head of a Texas-based railway company is bullish about its Asia-enhanced future.
“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 America’s expanding role in providing the world’s food supply and Asia’s economic growth.
“Asians’ increased incomes have led to a growing demand for food products,” he said. “They’re able to purchase more products and consume more complex products.”
Rose said by 2014 most of China’s 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 nation’s 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 railroad’s 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 Rose’s total compensation package for the past fiscal year at more than $15 million.
Big Story
Related Photos
-
Railway company head Matthew Rose said America’s food-basket-to-the-world dynamic coupled with expanding Asian markets will help carry the freight for American farm products. John Cross
Rail leader reports growing Asian market
- Big Story
-
-
PHOTO GALLERY: Photos of the Week, Oct. 5-11, 2011
The best local, state and national photographs from the week ending Oct. 11, 2011.
-
Bids for Highway 14 project far over budget
MnDOT, North Mankato, Nicollet County ponder options
-
Locals’ thoughts go to family on 9/11 anniversary
About 20 people attended a moment of silence at noon Sunday to remember the victims of the attacks.
-
For St. Clair, a tech-savvy school is a magnet
Open enrollment swells the student body
-
Chief Sleepy Eye’s possession returns home
Descendant: 'The pipe wanted to be here' in Sleepy Eye
-
Sculpture tour wins accolades
Named 'Best of Minnesota'
-
Road construction catching up
Wet weather, state shutdown complicated roadwork schedules
-
As fundraiser for House of Hope, this race was just ducky
5,000 rubber ducks bob down Blue Earth River
-
Neighbors watched shooting scene unfold
Authorities confirm officer Timothy Spellacy shot Jonathan Hess when he pointed his gun at the officer
-
Update: Obama says Gadhafi rule is over
Rebels ride triumpantly into Tripoli; Libyan strongman's whereabouts unknown
- More Big Story Headlines
-
