A train ferry is a ship designed to carry railway vehicles. Typically, one level of the ship is fitted with railway tracks, and the vessel has a door at the front and/or rear to give access to the wharves. In the United States, train ferries are referred to as "car ferries". The wharf (sometimes called a "slip") has a ramp, linkspan or "apron", balanced by weights, that connects the railway proper to the ship, allowing for the water level to rise and fall with the tides. For an example of a specialized slip to receive railcars see ferry slip.
While railway vehicles can be and are shipped on the decks or in the holds of ordinary ships, purpose-built train ferries are much quicker to load and unload, especially as several vehicles can be loaded or unloaded at once. A train ferry that is a barge is called a car float.
Burlington Northern might or might not own a few of these. But given the investment Buffett is putting into railways, one can't help wondering why some rail ferry owners are selling at a discount.
Interesting. I like the technicals and the story, but there's a Research firm out there with a SELL on it: "From a range of 2,000 to 3,000 over 2005-2007, the Baltic Dry Index (BDI) increased sharply to a peak of 11,000-12,000 between mid-2007 and mid-2008. From these peaks, the index dropped as much as 92% to 1,000 before recovering to its current level around 3,000. After signing shipping contracts at peak rates over 2007-2008, the company is now renewing them at much reduced market rates."
Posted by: Alex Golubev | 08 March 2010 at 04:12 PM
The more research firms that put a sell on a stock, the more interested I get in buying it.
Posted by: Michael F. Martin | 08 March 2010 at 04:57 PM
the stock reaction to the "news" of reduced contract rates will be the "tell", so even better odds after that.
Posted by: Alex Golubev | 19 March 2010 at 12:14 PM