U.S. mindful of policies to boost rail investment

WASHINGTON, Nov 3 (Reuters) - The decision by Warren Buffett's Berkshire Hathaway Inc to buy Burlington Northern Santa Fe Corp for $26 billion comes just weeks after the U.S. government outlined policy aims supportive of freight rail. While the Obama administration has proposed $8 billion to support high-speed rail development and continues subsidies for long-haul passenger service, there are no plans for economic stimulus or other taxpayer funds to flow directly to the freight companies. But indirect federal and state spending as well as investments in passenger rail could rub off positively on freight haulers, which provide much of the tracks and other infrastructure used by the U.S. passenger network. The administration is also mindful of regulatory steps that would help the industry move goods more efficiently, according to a draft of a congressionally ordered plan for national rail priorities. "Freight rail infrastructure maintenance and capacity enhancements, however, can only occur with federal legislation and policies that allow rail carriers to earn revenues that are sufficient to encourage their continued investment in the system," the Federal Railroad Administration said in its plan. Freight rail trade group, the Association of American Railroads, said in a statement the Berkshire Hathaway announcement "affirms the importance of freight rail to our nation's economic health." The industry's legislative priorities at the moment include a push for investment tax credits, according to the association. (Reporting by John Crawley: Editing by Steve Orlofsky) Keywords: BURLINGTONNORTHERN/BERKSHIRE US (john.crawley@@thomsonreuters.com; reuters.com [phone]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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