J.B. Hunt Transport to acquire BNSF's brokerage operations

A logistics and supply chain deal is set to send ripples across the space as J.B. Transport Inc. revealed Thursday plans to acquire the brokerage operations of BNSF Logistics.

J.B. Hunt Transport is a subsidiary of massive supply chains solutions company J.B. Hunt Transport Services Inc. (Nasdaq: JBHT), while BNSF Logistics is an affiliate of Fort Worth-based BNSF Railway Co. and provides third-party logistics services for BNSF Railway. BNSF is wholly owned by Warren Buffet's Berkshire Hathaway Inc. (NYSE: BRK.A).

J.B. Hunt will use its existing cash balance to fund the purchase, which is anticipated to create a more efficient transportation network by combining BNSF Logistics' 3PL services with its technology platform.

“This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers,” said BNSF Railway President and CEO Katie Farmer in a prepared statement. “This continues more than 30 years of partnership between BNSF and J.B. Hunt and builds on our announcement to further integrate our joint services.”

With the transaction, BNSF Logistics will roll into J.B. Hunt's Integrated Capacity Solutions segment.

Upon close of the deal, BNSF Railway and J.B. Hunt are expected to form a long-term service agreement in which J.B. Hunt will continue to provide 3PL services to BNSF Railway.

Earlier this year, BNSF Railway revealed a nearly $4 billion capital investment plan.

The largest component of the company's capital plan consistent of a $2.85 billion investment in BNSF's maintenance projects, including replacing and upgrading rail, track infrastructure, and rolling stock. The capital investment also breaks down $402 million into equipment acquisitions and more than $700 million for expansions and efficiency projects.

"Our capital plan reflects our growth mindset and commitment to having the capacity and equipment we need to support our customers. Continued investment in our network through our capital plans helps ensure we run a safe, efficient and growing railroad that provides customers with the service they expect from BNSF," said Farmer at the time.

In 2022, BNSF Railway also announced it planned to invest $1.5 billion to build a 4,500-acre facility in Southern California to aid in alleviating port congestion.