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Ohio approves higher weight limits for exported containers

By DOUG GRAVES
Ohio Correspondent

WORTHINGTON, Ohio — When it came to hauling grain in containers across the state, Ohio growers just wanted an even playing field with other grain-producing states.

Last month, they received what they bargained for, when the Ohio Department of Transportation raised the truck weight limits from 40 to 46 tons.

The new limits were put into effect thanks to the efforts of Ohio’s Joint Committee on Agency Rule Review (JCARR). The new rules went into effect Oct. 28.

“We’re very excited about the new weight limits,” said Jeff Wuebker, president of the Ohio Soybean Assoc. (OSA). “These will help keep Ohio farmers competitive with other states that already have similar limits and also help increase the competitiveness of the containerized shipping industry for specialty soybeans.”

The new permits put Ohio on a level playing field with states such as Illinois, Indiana, North Carolina, South Carolina and Virginia. Those states already have the type of permit allowing for overweight trucks carrying export containers. Ohio shippers are optimistic that the volume of containerized exports of grain and other products from Ohio will increase now that the per-bushel transportation costs are competitive with other sources of supply.
The permits will cover the container’s travel between its loading location on a truck and an intermodal facility, where it would then be loaded on a train, barge or ship.

The permits require the loading location and intermodal facility to be located in Ohio, not in adjacent states. Those intermodal facilities are located in Cleveland, Columbus, Cincinnati and North Baltimore (near Toledo).

Research conducted this past year by the Ohio Soybean Council and soybean checkoff had identified containerized exports as a good growth opportunity that could benefit Ohio soybean farmers. And it will help other grain producers and exporters as well.

“From our standpoint our containers were only partially full,” said Todd Nicholson, director of government affairs with the Ohio Corn Growers Assoc. “Normally, buyers of grain from southeast Asia would purchase corn from Illinois, Indiana and the Carolinas because those containers were full. This will allow grain elevator operators in our state to compete in this export market where they couldn’t before.”

Wheat growers are just as ecstatic.

“This is excellent news,” said Mark Wachtman, president of the Ohio Wheat Growers Assoc. “Steel companies already had permits to transport steel at those increased weights so they were ahead of the game. Now this will level the playing field.”

All grain experts agree that containers left partially empty to meet Ohio’s 80,000-pound weight limit aren’t economical to ship. In 2009, Ohio had 4,113 grain-filled containers lifted for export. That same year Illinois had 185,000 grain-filled containers shipped.
A chief critic of the heavier truck loads is the railroad industry, which competes with trucks to move grain and other freight.

“The new policy is being rushed without answering how the heavier loads will increase the cost of maintaining roads, setting a bad precedent that could lead to more trucks and even heavier equipment,” said Art Arnold, president of the Ohio Railroad Assoc.
According to a 2009 survey by the Ohio Department of Transportation, overweight trucks carrying items such as construction equipment or other freight cause about $144 million in pavement damage to Ohio highways each year. The trucking industry only partly covers that cost, paying about $97 million in taxes and overweight fees, leaving taxpayers to cover a $45 million shortfall.

Advocates for the new rules were the OSA, Ohio AgriBusiness Assoc., Ohio Farm Bureau Federation, Ohio Corn Growers Assoc. and the Ohio Manufacturers’ Assoc.

The JCARR committee included Sen. and chair Tom Niehaus (R-New Richmond), Rep. Clyde Evans (R-Rio Grande), Sen. Karen Gillmor (R-Tiffin), Sen. Tim Grendell (R-Chesterland), Rep. Sandra Harwood (D-Niles), Rep. Ross McGregor (R-Springfield), Rep. Mike Moran (D-Hudson), Sen. Sue Morano (D-Lorain), Rep. Mike Skindell (D-Lakewood) and Sen. Fred Strahorn (D-Dayton).

“This weight adjustment is important to Ohio farmers so they will be able to get their products to international markets,” Grendell said. “It’s also very important that we do all we can to support our agricultural industry in Ohio.”

12/8/2010