Growth Energy letter addresses continued rail shipment delays

By Growth Energy | July 07, 2014

WASHINGTON, DC — In response to a recent order by the Surface Transportation Board, which called on specific rail providers to resolve backlogs of rail cars for grain orders, but failed to address the substandard rail service for the delivery of ethanol, Tom Buis CEO of Growth Energy sent a letter to the STB outlining the ethanol industries concerns.

Specifically, the letter noted, “We appreciate the opportunity to share with you our concerns about the efficient rail delivery of ethanol across the country and the problems that our producers have encountered with the rail industry.  Most recently, we are in receipt of your June 20 decision requiring Canadian Pacific Railway and BNSF Railway to resolve backlogs of their grain car orders.  We are concerned that this or another order did not directly address the shipment of ethanol.  With over 61 percent of all ethanol delivered by rail, it is imperative that these issues be directly addressed and given the same priority as grain shipments.

“Earlier this year, we saw ethanol supply dwindle and prices skyrocket solely because of the inability to get rail cars to ship product – even to the point of having many plants reduce production.  Ultimately, these service failures hurt the American consumer as these costs are borne in the form of higher gasoline prices, which impact every segment of the American economy.

“We want to get low-cost renewable fuels to the American people safely, quickly, and efficiently.  We feel as though it is necessary for the Board to immediately act to ensure that the railroads improve their service.”