By TIM ALEXANDER
Illinois Correspondent

ANKENY, IOWA — Shippers of corn and soybeans, such as grain elevators and cooperatives, gave the nation’s freight railroads a passing grade for their performance thus far during 2010’s frenzied harvest, said Mike Steenhoek.

“As you know, given the large harvest, the fact that both corn and soybeans were being harvested at the same time, the increased world demand for U.S. wheat given Russia’s export ban and a few other issues, our rail infrastructure has certainly been tasked with a sizable challenge,” said Steenhoek, executive director of the Soy Transportation Coalition (STC),

“Farmers and agricultural shippers certainly understand there will be logistical challenges with absorbing such as sizable and compressed harvest. However, this fall is demonstrating that certain railroads – particularly BNSF and Union Pacific – have been more strategic in planning and more prudent in investing that others.

“Feedback from agricultural shippers validates that the harvest surge, while producing temporary congestion, does not have to result in system paralysis,” he said.

Shippers’ comments, which were solicited last week, were both positive and negative. “We’re pretty well harvested with no major backups ... To build the infrastructure to handle the crop in seven to 10 days would be costly and the U.S. farmer would run the risk of not being competitive with the extra costs,” one shipper responded.
Another lamented, “Grim performance by both eastern Class I (railroads): insufficient crews, insufficient or out of position power. Service is poor to very poor.”

Other comments included:
•“Some congestion at the Gulf and trains are backed up for grains.”

•“Overall, harvest has been going well. Railroad service has been up and down. Still lots of car delays and shortages of equipment and service causing problems moving product.”

•“I would say that our infrastructure has held up pretty well in light of the compressed harvest. It really has been a tale of two regions this harvest, as far as rail service. The NS has failed miserably this fall ... CSX is somewhat better than the NS, but is still a far cry from being fluid ...

“The Western carriers are performing pretty well. In fact, the BNSF’s velocity has picked up since September ... The UP has been a little late in getting equipment placed, but seems to be holding up pretty well.”

•“Some start-up problems, but overall it’s been a relative non-event ... Some elevators were plugged, but it only lasted a brief time.”

Earlier this year, the STC published its first annual Rail Customer Satisfaction Index showing BNSF and Union Pacific Railroad ranked first and second, respectively, by ag shippers for quality of service. Highlights may be accessed online at http://soytransportaion.org/newsroom/stc042310railcustomersatisfaction.pdf