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Rail issues concern West Coast grain shipper

Increased shipments of coal and oil, by rail, to the West Coast are creating logistics challenges for a Tacoma, Washington-based grain export facility.

“It’s not uncommon to be waiting for a shuttle train—or a 110-car train—to finish a cargo on a vessel,” says Terry Johnson, who manages the TEMCO grain export terminal in Tacoma. “I’m sure the cold weather back in the Midwest—the rough winter—and all the traffic that’s increased with coal trains and oil trains has really hurt our logistics this year.”

Johnson says as exports of coal and oil to China and other Asian countries increase, grain shipments are being squeezed.

“Grain is not a high priority on the railroad,” Johnson says. “Energy and containers and merchandise moves—and of course, Amtrak—so we’re kind of on the low rung there.”

The supply of rail cars is not the issue, Johnson says. It’s because rail lines funneling into the Pacific Northwest have become jammed up due to the increased energy shipments.   And Johnson is concerned that if those shipments continue to increase, the problem will only worsen over time.

TEMCO is a joint venture between CHS and Cargill.  The TEMCO facility was one of the stops on last week’s “See For Yourself” tour, sponsored by the Nebraska Soybean Board.

AUDIO: Terry Johnson (5:37 MP3)

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