Those in the grain industry in the U.S. northwest are fearing a long-term logistic rail crisis that will cause ongoing disruptions to exports and damage to the local agricultural economy. As North Dakota’s oil industry booms, oil trains hauling crude oil are causing delays in grain shipments that can double hauling time. Grain trains from the Midwest farm belt to ports in the Northwest can take 22 days, and this past winter some vessels were leaving port before being loaded according to the U.S. Department of Agriculture. The railroad that controls transport through the region, BNSF has worked diligently investing $4 billion in capital improvements to purchase hundreds of locomotives and train new employees but another bumper crop is expected this coming harvest and industry insiders fear the problems will only get worse. The Surface Transportation Board (STB), the agency that oversees rail freight, has ordered BNSF and the Canadian Pacific Railway to issue weekly reports on the grain backlog until it is resolved. A March report from the Washington State Department of Transportation (WSDOT) states that the flow of cargo on Washington’s rail lines will double between 2010 and 2035 and that private railroads will likely handle the excess demand. But, the report does not consider the growing oil and coal traffic. Forecasts from the Western Organization of Resource Councils states that the number of coal trains through Washington State will increase from two per day to 18 per day, and the number of oil trains will increase from between two to three to 11 per day. To read further:
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service