CSX uses rail-barge link to deliver fuel
Container barge service between New York City and Albany, N.Y. has not yet been widely adopted by shippers, but a major railroad has decided to employ the concept in reverse with a different commodity.
CSX Transportation said it has begun a rail-water intermodal service for ethanol fuel produced in the Midwest bound for New York City. The railroad said it will transport bulk shipments on dedicated unit trains to Albany, N.Y., then transfer the fuel to barges for the journey down the Hudson River for use in gasoline blends in New York and New England markets.
“With the growing demand for ethanol in the Northeast, and a lack of pipeline infrastructure from the Midwest, CSX set out to fill the distribution void by building a virtual pipeline,” said David Kennedy, manager of business development for CSX’s agricultural products group.
CSX said it will take advantage of existing barge capacity. Last week, for example, CSX supplied a backhaul load of ethanol for a tank barge that had made gasoline deliveries from Philadelphia to Newburgh and Albany, N.Y.
Aventine Renewable Energy Inc. is the first ethanol supplier to commit to ship ethanol to the East coast on the rail-barge network.