In a collaborative supply chain partnership spanning more than 30 years, Arkansas-based J.B. Hunt Transport Services Inc. and North Texas based-Burlington Northern Santa Fe, LLC announced J.B. Hunt has entered into a definitive agreement to purchase the brokerage operations of BNSF Logistics, LLC.
BNSF Logistics, LLC is an affiliate of BNSF Railway Company (BNSF), providing third-party logistics (“3PL”) services for the movement of full truckload, flatbed, temp-controlled, drayage, expedited, and less-than-truckload services to a large and diverse group of customers through both an employee and agent model. BNSF Logistics also provides warehouse, retail specialty, heavy-haul and project services which are not included in the transaction.
“As we continue to work with BNSF Railway to develop solutions that drive value for customers, we recognized a unique opportunity to combine the companies’ efforts to serve the transportation market with 3PL services and leverage the investments J.B. Hunt has made in our technology platform, J.B. Hunt 360°®,” said John Roberts, CEO of J.B. Hunt. “This acquisition is another step forward in our mission to create the most efficient transportation network in North America.”
J.B. Hunt and BNSF Railway disrupted the transportation industry in 1989 by developing a double-stack shipping solution that would complement both rail and trucking services, a first for modern transportation. In March 2022, the two companies launched a joint effort to substantially improve capacity in the intermodal marketplace. This latest effort will build on a long-term business relationship and strategic vision to provide efficient, value-added solutions for customers across the North American supply chain.
“This agreement with J.B. Hunt reflects our companies’ shared commitment to provide industry-leading intermodal service to our customers,” said Katie Farmer, President and CEO of BNSF Railway. “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.”
When the transaction closes, the brokerage operations of BNSF Logistics will roll into J.B. Hunt’s Integrated Capacity Solutions (ICS) for segment reporting purposes. BNSF Railway and J.B. Hunt will enter into a long-term service agreement whereby J.B. Hunt will continue to provide those services for BNSF Railway.
The transaction will be funded using J.B. Hunt’s existing cash balance and is expected to close before year-end.
