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Are grain farmers losing to oil for rail service?

"In 2009, there were 11,000 rail carloads of crude oil but in 2013 there were 400,000 carloads," said Mike Steenhoek, executive director of the Soybean Transportation Coalition."

Dang.

http://www.cnbc.com/id/102021264

Comments

  • I'm not a railroad expert but they require different cars. Any delay in rail transport would be booking the train but I assume there is a schedule already in place for pickup at the terminal/elevator.

    Warren must be smiling.
  • Quote from article- For their part, railroads contend they're doing all they can to improve the situation, no matter the customer.

    I think not - Prices bid for unit trains makes grain movement from the northern states prohibitive. Warren's crew down at BNSF and other RR's wont make changes until mandated by government. Canada took action this last summer to move more grain to the PNW.

    Need pipeline approved and built to move the crude oil.

    Some experts say that by the time the pipeline is built there will not be any frackin oil in the Bakkens left to move. At the earliest no oil will be move by pipe till late 2016.

    http://online.wsj.com/articles/north-dakotas-bakken-oil-fields-to-get-new-pipelines-1403810341
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