JPM Global Railway Stock Fund Plans to Buy Rail Companies
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JPM Global Railway Stock Fund Plans to Buy Rail Companies

08 Apr 2010

The ¥138bn ($1.5bn) JPM Global Railway Stock Fund is planning to acquire US rail companies such as Union Pacific, CSX and Norfolk Southern. The move follows Berkshire Hathaway's purchase of 77.4% of Burlington Northern, worth $27bn last year, according to businessweek.com.

The ¥138bn ($1.5bn) JPM Global Railway Stock Fund is planning to acquire US rail companies such as Union Pacific, CSX and Norfolk Southern.

The move follows Berkshire Hathaway’s purchase of 77.4% of Burlington Northern, worth $27bn last year, according to businessweek.com.

The JPM Global Railway Stock Fund expects the rail companies to gain from a government policy, which allows goods to be transported by rail instead of roads.

The policy aims to reduce fuel costs and pollution as railroads burn less diesel than trucks for each ton of cargo carried.