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Ethanol, and the unit train vs carload conundrum
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Here's the conundrum: <br /> <br />Assuming all product in and out is brought by unit train, you are going to have at least 4 unit trains of inputs for every 1 unit train of output. And those 4 unit trains of inputs (aka corn) will be a relative shorthaul for the railroads, compared to the long hauls to export facilities. Since it is unlikely that acreages of corn plantings will increase much due to ethanol plants sprouting up, that corn will simply be diverted from long haul unit trains headed for ports, to short haul unit trains running from shuttle elevator to ethanol plant. <br /> <br />Isn't one unit train cycling a thousand miles more profitable than four unit trains cycling 100 miles at a shot?
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