United Group Insurance

Ethanol producers complain about rail service

Ag/Outdoor

April 4th, 2014 by Ric Hanson

OMAHA, Neb. (AP) – Ethanol producers say clogged rail lines and other shipping problems have forced them to reduce production of the fuel and contributed to higher prices.  The Renewable Fuels Association criticized railroads Thursday and triggered a strong response from the Association of American Railroads.  RFA President and CEO Bob Dinneen says railroads should take the blame for ethanol prices jumping more than $1 a gallon between early February and late March.

AAR CEO Ed Hamberger acknowledges rail traffic slowed in certain areas, but he says it’s preposterous to suggest the rail network is in disarray. Hamberger says railroads have done their best to deal with an exceptional winter, sizeable grain harvest and increased coal demand.

Railroads have hauled 6.8 million carloads this year – about 2 percent more than last year.