JPM Global Railway Stock Fund Plans to Buy Rail Companies

8 April 2010 (Last Updated April 8th, 2010 18:30)

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.