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Rail Congestion Needs Resolved

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Renewable Fuels Association CEO Bob Dinneen told a Senate Committee this week the current rail congestion has become a huge and costly problem. Dinneen submitted written testimony to the U.S. Senate Committee on Commerce, Science, and Transportation, which held a hearing to examine rail congestion and the harmful impact it has had on agriculture and other commodities.

In his testimony he said, “This crisis is one that is causing significant harm to the economic health and well-being of our nation’s economy.”  He called the rail industry a vital asset to the ethanol industry as trains have typically served as a virtual pipeline for ethanol. Grain shipments are expected to increase this fall as America is on course to harvest a record corn crop. With the increase in grain shipments this fall and the current rail congestion, Dinneen stressed that “rail operators must respond in a way that treats the vast array of other goods and commodities competing with crude oil on the rails fairly and equitably.”

The letter suggest greater transparency is needed to help regulators oversee and monitor how logistics and contracting decisions are being made by rail operators.  Dinneen also suggested regulators have the ability to oversee what new shipping contracts are being negotiated while the rail operators continue to try to catch up with current customers.

Source: NAFB News Service