All about the community of model railroading and rail enthusiasm throughout the Southwest and Midwest

  • 0
  • 1

Cowcatcher Magazine

  • Home
  • News
    • Top News
    • Class 1 Railroads
    • Short Line Railroads
    • Light Rail / Commuter
    • Model Railroading
    • Railroad in Focus
    • Up Close
    • Heritage
  • About
  • Subscribe
    • Info & Updates
    • Subscribe or Renew with Paypal
    • Subscribe or Renew with Credit Card
    • Back Issues
    • Retrospectives
  • Contact Us
  • Available At

Concerns arise over ability of North American railroads to maintain pace with record grain crops

September 1st, 2014

Farmers and shippers are expecting a record grain crop in 2014 and have voiced concern over the ability of North American railroads to handle additional volumes. BNSF Railway (above) and Canadian Pacific have recently reported a backlog of cars available to meet shipping requests. - Cowcatcher Magazine

Farmers and shippers are expecting a record grain crop in 2014 and have voiced concern over the ability of North American railroads to handle additional volumes. BNSF Railway (above) and Canadian Pacific have recently reported a backlog of cars available to meet shipping requests. – Cowcatcher Magazine

An anticipated record grain harvest is gaining traction among North American farmers but not so much on the rails. As wheat and soybean production surges, shipments on U.S. railroads have been delayed because of backlogs attributed to increased demand for rail cars that some say points to the oilfield.

BNSF Railway and Canadian Pacific have reported backlogs of almost 2,400 cars between them, according to published reports. Both railroads maintain that oil shipments have not replaced crop shipments but farmers and shippers are applying pressure in an attempt to get product to market.

On Thursday, the U.S. Surface Transportation Board will hold a public hearing in Fargo, ND, where farmers and shippers can voice concern. CP and BNSF representatives are expected to attend.

While oil production from the Bakken Shale in North Dakota and other U.S. North American oil plays have commanded significant track time, America’s grain belt has been churning at a record pace. The U.S. Dept. of Agriculture said that total inspections of grain (corn, wheat, and soybeans) from all major export regions reached for the week ending Aug. 21 were up 51 percent from last year and 22 percent above the three-year average. Total inspections were 1.81 million metric tons, an 11 percent increase from the previous week.

This year’s U.S. wheat harvest is expected to be a record 273 million bushels, up from 235 bushels in 2013. Record amounts of soybeans are expected, as well as a significant increase in corn production.

However, opportunities are being lost because product can’t get to market fast enough.

In May, a North Dakota State University study concluded that North Dakota farmers have lost nearly $67 million this year because of rail shipment delays, and could lose an additional $95 million if the delays persist.

North Dakota farmers rely on rail transportation to move its top major crops of wheat, corn, and soybeans. They know their produce is kept safe and compact in bulk bags and that the transportation via trains is smooth and quick.

The study reported that increased oil transportation contributed to delayed grain deliveries and increased costs in transportation. An extremely cold winter and high demand for grain shipments also contributed.

Petroleum and petroleum-related shipments have been on the rise, but so have other commodities.

The Association of American Railroads (AAR) reported last week that total combined U.S. traffic for the first 34 weeks of 2014 was 18,557,471 carloads and intermodal units, up 4.6 percent from last year. For the week ending Aug. 23, carloads were up 3 percent compared to the same time last year.

Eight of 10 of the carload commodity groups posted increases compared with the same week in 2013, including petroleum and petroleum products with 16,396 carloads (up 28.4 percent) and grain with 18,721 carloads (up 17.6 percent). Nonmetallic minerals were up 10.5 percent.

Canadian railroads have posted similar increases in rail traffic.

Average terminal dwell time per hour per car, however, is on the rise, indicating that car movement across U.S. and Canadian rail systems is slower. Of six Class Is voluntarily reporting dwell time to the AAR, all posted higher times in July 2014 compared to the second quarter of 2013. BNSF and CSX topped the charts, each averaging five additional hours.

But railroads are making an effort to meet demand by the farm, even if it means stepping back from the oil patch so who knows what the future will look like, it might be the time to learn how to invest in oil, who knows anymore.

In August, OmniTRAX Canada announced it would suspend plans to ship crude oil for the foreseeable future to accommodate large grain contracts.

President Merv Tweed said that consultations with First Nations, Metis and the provincial government were important factors in the company’s decision to suspend shipping crude by rail.

“Our decision to suspend crude by rail was based in part that grain shippers were willing to commit long-term orders in contracts of over 700,000 metric tons due to the market’s overall growth,” Tweed said in a news release. “Following last year’s record crop, we’re preparing for another strong shipping season.”

The railroad group also said it would continue to diversify its product mix through the Port of Churchill to include potash, feed and wood pellets.

“After reviewing our current business operations, we are also developing a long-term sustainability strategy that will make policy recommendations to the Provincial and Federal Governments, as well as identifying critical infrastructure investments required to continue the development of the Northern Gateway trade corridor,” said Tweed.

The Port of Churchill handled over 600,000 metric tons of grain in 2013; almost 10 million liters of petroleum products; building and construction materials as well as dry goods, vehicles and equipment and a variety of products for mining companies, communities and individuals.

  • Class 1 Railroads, News

Add Your Comment

Cancel reply
  • March/April 2021

  • Order Today!

    PURCHASE THE CURRENT ISSUE TODAY!

    JUST $5.95, includes shipping (U.S. only)!

     

    Allow 3-5 business days for delivery upon placement of order.

     

    ** Email us for international shipping rates**

     

  • Pressing Ahead

    The Cowtown Model Railroad Club has evolved from the former Lockheed Martin Recreation Association Railroad Activity, once Dallas/Fort Worth’s premier model railroad club. A handful of members have carried on the HO Gulf & Denver Railroad Authority, which is back in operation and sporting a new mission.

     

  • Time now for passenger rail

    Tracks are aligning for a bright future in public transportation and travel by rail with the onset of a new administration on Capitol Hill.  Funding opportunities await for returning Amtrak daily long-distance service and improving transit rail infrastructure. The key will be keeping several bills on course.

     

     

     

  • PLUS…

    The Cowcatcher’s N-scale Whitehurst & Pine Ridge Railroad found a way to visually block the main line from Dallas to Kansas City when it comes a little too close for comfort.

     

     – Cowcatcher Magazine                                        
     

    BNSF Railway Co. (BNSF) and Wabtec’s exploration of the future of battery-electric locomotives crossed another milestone in early January with testing in revenue service between Barstow and Stockton, CA…

    …

     

    Pat Hiatte resumes his virtual travel along the nation’s rail network when passenger rail was king. He rides the Colorado Eagle from Denver to St. Louis…

     

    LGB is producing an F7A-B locomotive set in Amtrak’s original paint to celebrate the passenger line’s 50th anniversary in 2021.

     

     

    THESE STORIES AND MORE, PLUS A FULL CALENDAR OF UPCOMING EVENTS!

     

  • Product News & Review

    Rapido HO Flexi-Flo Hoppers

     

     

    Last fall, Rapido Trains released its first HO-scale replica of the ACF PD3500 Flexi-Flo covered hopper in each variation produced by American Car & Foundry. Models feature a wealth of detail.

     

    More product reviews!

     

    See product news!

     

  • Don’t Miss an Issue

    Click here to subscribe to Cowcatcher Magazine, the model railroad magazine and rail enthusiast magazine all about the community of model railroading and rail enthusiasm, today!
  • Back Issues

    Be sure to check out our Back Issues page for any issues you may have missed. We have expanded descriptions for issues published beginning in 2007. Click here to order.

     

    Order the January/February 2021 issue today!

     

  • Article & Photo Submissions

    We encourage readers to submit articles and photos. For details, visit our guide here .

  • Railroad in Focus

    Cowcatcher Magazine routinely features short lines and regional railroads that roam the Midwest and Southwest. Features include color photographs and maps, but an overview of operations and latest business trends.

     



    Like us on Facebook!  
  • The New Whitehurst & Pine Ridge Railroad




    Visit the new N-scale Whitehurst & Pine Ridge Railroad, the official model railroad of the Cowcatcher Magazine, and track progress. All aboard!
  • HMA Promotional Video

    https://youtu.be/bxrwl13N1Rc

© 2020 Cowcatcher Magazine | No content from this site may be copied or re-used without permission | 2021 Cowcatcher Magazine. Site powered by Childress Media