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Ethanol Depends on Reliable Rail Service

Dan Environment, Fertilizer, Fertilizer

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We told you last week that The Fertilizer Institute (TFI) had testified before the Surface Transportation Board emphasizing the ongoing need for the freight rail industry to shift its focus toward customer service and growth.

Another group, Growth Energy, is also highlighting the many issues currently plaguing the nation’s rail service that has resulted in delayed shipments, longer wait times, and higher costs for American ethanol producers. The group’s Senior Vice President of Regulatory Affairs, Chris Bliley, also testified to the scale of the problem.

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“With drivers facing high fuel prices and ethanol is consistently trading significantly less than unfinished gasoline, at no other time has the need for timely and efficient ethanol rail service been more important,” Bliley said.

Data posted by the Surface Transportation Board shows that in 2022, the average dwell time for ethanol train units increased, average rail speed decreased, and the average number of ethanol-loaded cars not moved increased, all negative trends that contribute to added costs and other negative consequences through the entire biofuel supply chain.

“The ethanol industry ships almost 70 percent of what it produces via rail,” Bliley added.

(From the National Association of Farm Broadcasters)