BNSF to STB: Railroad Moving Record Volume of Grain out of ND
OREANDA-NEWS. September 05, 2014. In testimony BNSF Railway filed today with the Surface Transportation Board (STB) in advance of tomorrow’s hearing in Fargo, N.D., the railroad says it has moved an all-time record volume of grain out of North Dakota this year. The railroad also reports that in four out of the last five months of 2014, ag volume shipped in the four-state region on BNSF has surpassed previous peak levels. (STB filing is available at: Service Transportation Board Update )
For North Dakota, in particular, traffic in and out of the state has increased 144 percent on BNSF since 2009. Last year, North Dakota represented 20 percent of all new volume on the U.S. rail network.
While it is experiencing continued strong volume growth this year in the state, in its testimony BNSF reports that due to BNSF’s efforts past due car orders for ag customers have steadily decreased with less than 1,000 outstanding past due orders in North Dakota from the high of 8,164 in March. It also details that shuttle trips per month to the Pacific Northwest, where most grain products in the region are shipped, have hit the goal of 2.5 trips per month for the last four weeks. Shuttle trips per month are a key indicator of velocity on its network.
As producers know, no one can predict the timing of grain movement because of the market uncertainty created by the many variables that influence it, including crop prices, weather and demand. However, BNSF says it is ready for this year’s harvest and will have the resources in place to move record bushels when the market demands it.
The railroad says it is offering more capacity for the movement of grain than ever before and will run the highest number of shuttles ever during the peak season of October through March. BNSF expects a large crop this year, with its grain volume transportation capability to increase by 10 to 15 percent as a result of the increased shuttles it is offering.
In its outlook for the region, BNSF says there will be continued incremental improvements as more capacity projects come online. This year BNSF is spending \\$390 million in expansion and maintenance projects in North Dakota alone, and cumulatively, BNSF will have spent almost USD 1 billion in expansion and maintenance in North Dakota since 2009. The new capacity will be lasting capacity that benefits all of BNSF’s customers.
The BNSF representatives offering testimony before the STB during tomorrow’s hearing are Steve Bobb, Chief Marketing Officer and Executive Vice President, and Bob Lease, Vice President, Service Design and Performance.
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