Growth Energy comments on rail shipment delays

Tom Buis, CEO of Growth Energy, has sent a letter to the Surface Transportation Board (STB) outlining transportation concerns within the ethanol industry.

The move follows a recent order made by the STB, requesting that rail providers clear backlogs of grain orders transported by rail cars, but excluded the poor rail service that is used to deliver ethanol.

In the letter, Buis states: 'We appreciate the opportunity to share with you our concerns about the efficient rail delivery of ethanol across the country and the problems that our producers have encountered with the rail industry. Most recently, we are in receipt of your 20 June decision requiring Canadian Pacific Railway and BNSF Railway to resolve backlogs of their grain car orders. We are concerned that this or another order did not directly address the shipment of ethanol. With over 61% of all ethanol delivered by rail, it is imperative that these issues be directly addressed and given the same priority as grain shipments.'

He went on to say: 'Earlier this year, we saw ethanol supply dwindle and prices skyrocket solely because of the inability to get rail cars to ship product – even to the point of having many plants reduce production. Ultimately, these service failures hurt the US consumer as these costs are borne in the form of higher petrol prices, which impact every segment of the US economy.'

'We want to get low-cost renewable fuels to the US people safely, quickly, and efficiently. We feel as though it is necessary for the Board to immediately act to ensure that the railroads improve their service.'