I have been looking for a transportation stock to add to my portfolio. I currently own Diana Shipping (DSX) but this is more of a play on the growing need for commodities in China and India.

I found an interesting article on Smart Money called Five Transportation Stocks Ready to Roll. Here are some highlights.

Burlington Northern Santa Fe (BNI)
In the battle of trucks versus trains, the rails increasingly have the advantage. With trains three times as fuel efficient as trucks, more shippers have turned to railroads to move their goods. Seemingly insatiable demand for commodities is also keeping train cars brimming with grain and coal, offsetting the slump in autos and home building.

Burlington Northern shares are up nearly fourfold since 2003, but Craig Hodges, comanager of the Hodges Fund, says the rail-revival story is still in its early stages. He thinks that at 17 times 2008 expected earnings, the stock is still attractive, given prospects for 13 to 15 percent profit growth for the foreseeable future.

J.B. Hunt (JBHT)
The U.S. trucking business is under siege; total freight shipped is down, and fuel costs are up — way up. The stocks of most trucking firms have jackknifed over the past year as investors have shied away from the industry. But J.B. Hunt Transport Services keeps rolling along, with its shares recently trading just barely below their all-time high.

Still, UBS transportation analyst Rick Paterson says J.B. Hunt is one of the best-run truckers, and its truck-to-rail business will keep profit from sinking too low. And if recent history is any guide, trucking stocks could jump at the first hint of an economic recovery.

United Parcel Service (UPS)
The Atlanta-based company figures that it moves about 6 percent of U.S. gross domestic product. With UPS shares trading at about 17 times 2008 earnings — near five-year lows — bargain hunters might consider hopping aboard. The stock's 2.5 percent dividend yield should help allay any motion sickness along the way.

Expeditors Int'l (EXPD)
Seattle-based Expeditors International of Washington is one of the leaders in global logistics, managing cargo in 61 countries. But the best part of Expeditors' business model, analysts say, is that the firm owns very few assets. So in dicey economic times, it doesn't have planes, trains or trucks standing idly by. T. Rowe Price logistics analyst Joe Fath says Expeditors has a strong business model and will do well as long as global trade continues to increase.

DryShips (DRYS)
DryShips Chief Executive George Economou says his company is like a taxi service, shuttling commodities such as iron ore and fertilizer around the world. A U.S. recession or even a drop in commodity prices isn't going to hurt DryShips' business much, Economou tells SmartMoney.

"If you are investing in DryShips, you are a gambler betting on jockey Mr. Economou," says Buckingham, of the Al Frank fund.

I like BNI the best out of all the stocks in the article and Warren Buffett has recently increased his holdings in the stock. I will do some more research on BNI and keep an eye on the stock price.

Disclosure: The Div Guy does not own any of the stocks in this article at the time of this post.