Growth Energy wants relief for ethanol shippers suffering from rail delays

July 8, 2014 |

In Washington, the ethanol industry Monday urged a federal regulator overseeing the nation’s railroads to provide relief for shippers of the renewable fuel who have faced delays. Growth Energy, which represents ethanol manufacturers, told the Surface Transportation Board that producers of the renewable fuel should be given the same relief that the agency provided to grain shippers in June.

Last month, the STB ordered Canadian Pacific Railway and BNSF Railway to provide the agency an update on their plans to reduce the backlog of grain cars across their networks — a step welcomed by agricultural groups concerned that farmers could struggle to get their crops to market this fall.

In a letter sent Monday to the STB, Tom Buis, chief executive with Growth Energy, said with more than 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.”

Buis said immediate action was necessary to “ensure that railroads improve their service.” Ethanol supplies were squeezed and prices soared earlier this year, he noted, because of the inability to get rail cars to ship their product. Many ethanol producers were forced to reduce production because they had no place to store the fuel.

 

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Category: Fuels

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