An anticipated decrease in grain exports and increase in domestic biofuels production could change U.S. freight railroads’ capacity needs in the coming years.
Union Pacific is constructing a grain transload facility at its intermodal terminal near Chicago, while two U.S. senators introduce bipartisan legislation to form a grant program that aims to reduce highway-rail grade crossings.
U.S. rail volumes rose 5.3% in January as gains for intermodal, chemicals and grain were enough to offset losses for coal and petroleum products, according to AAR data.
Canadian Pacific’s and CN’s estimates of grain they expect to haul in 2020-2021 is in line with past projections.
June grain volumes and second-quarter movements were records for both CN and CP.
Investments in recent years to expand capacity along their western Canadian grain networks have paid off for Canadian Pacific and CN.
Other factors beyond the coronavirus pandemic are weighing on U.S. rail volumes for grain.
Transporting grain is a major source of revenue for the railroads. How will the coronavirus impact the grain market and the railroads?
Organizations may lobby Parliament to declare rail service an essential service so that access remains available during events such as labor strikes.
New hopper cars and a high-efficiency train model at some elevators help boost volumes.
Grain shippers wonder if the Canadian railways will keep up with demand in the 2019-20 crop year.
The record occurred despite extreme weather conditions that stymied rail shipments in February and March, as well as restrictions on Canadian canola exports to China, the railway said.
Canadian Pacific (NYSE: CP) and Canadian National (NYSE: CNI) both moved record volumes of grain in April, following a harsh winter that sometimes curtailed rail shipments. Canadian National said on […]
