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Grain elevators and capacity
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Mark and all. <br /> <br />We should point out that, in theory, the lowest combo rate for moving grain to deep water ports for overseas shipment should be rail to barge, the next lowest would be the competition of all rail vs truck/barge, then truck to rail, then lastly all truck. <br /> <br />Some of that rail to barge combo transport does exist here in the Pacific Northwest. The lines that were mentioned as being taken over by the Washington DOT using the DOT's own grain hoppers sometimes run all the way to Portland et al, while at other times they run only as far as the Port of Wallula for transload to barge the rest of the way. I guess it depends on rail traffic in the Columbia Gorge and the willingness of the two Class I's in this area (UP and BNSF) to take on the grain shuttles from the shortline operators. It is interesting in that the shortline operator in this case has secured running rights over UP's Spokane line to reach the barge port. The UP Spokane line apparently does have excess capacity for them to allow this arragement. <br /> <br />It is also interesting that WSDOT officials involved with this line takeover admit that the current ratio of grain shipment by rail vs shipment by truck/barge (roughly 30% to 35% by rail, 65% to 70% by truck/barge) will not change appreciatively even with the state's take over of the lines. I pointed out to them that it would be cheaper in the long run to forego the cost of a state takeover of the branchlines and instead build a new connecting line between the branchlines and the barge ports, since that is the only way to effectively shift grain off the roads to the rails, and allowing the shortline operator to bypass the Class I's and ship direct to the barge ports would allow them to dominate grain hauling (albeit for the shorthaul shuttle only). Also, the local port districts (which are targeted to takeover the lines from the state sometime in the future) would be more willing to do so if they can also enhance the value of their barge port properties along the river rather than being forced to fund a competing (read: diverting) entity away from the river properties. <br /> <br />Also, the operators of the former Camas Prairie lines run shorthaul grain shuttles to the Port of Lewiston ID from time to time using older 80 ton hoppers which are not allowed off the shortlines' home rails. <br /> <br />If you think about it, it makes more sense for railroads (especially shortlines and regional's) to focus on competing soley with trucks for the haul to the barge ports rather than competing with the combined truck/barge rates by trying to run all rail to the deep water ports. Which scenario provides a greater revenue buffer: Competing with trucks at $0.06/ton-mile, or with the truck/barge combo rate at $0.03/ton-mile? Obviously, if they can achieve the same relative annual utilization of their rail hoppers, it would be the former. Would a railroader rather publish his cutthroat price at $0.05/ton-mile instead of $0.02/to-mile? Why shortchange yourself for the sake of pride? <br /> <br />How long did it take for the railroads to finally start working with the trucklines by running TOFC instead of trying to compete with them? How much longer will we wait until railroaders start working with barge lines instead of trying to undermine them via the environmentalist extremist movement? <br /> <br />The concept of rail/barge combo rates is one that has barely been scratched at the surface, and as capacity issues on mainline rails constrain the operation of grain trains, more Class I's might just choose to shorthaul themselves by transloading unit grain trains at a barge port and free up the mainlines for more intermodal.
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