Growth Energy asks STB to address rail delays

April 11, 2022

BY Erin Krueger

Growth Energy on April 8 sent a letter to the Surface Transportation Board calling on the agency to address significant rail service delays that are impacting the biofuels supply chain and have caused some ethanol plants to curtail production.

“Today, ethanol makes up more than 10 percent of our nation’s fuel supply, and we ship nearly 70 percent of ethanol by rail to key distribution points throughout North America,” Growth Energy said in the letter. “With ethanol trading 80 cents to a dollar per gallon less than wholesale gasoline, it is essential that ethanol reach its destination to benefit American drivers facing high gasoline prices.”

According to the letter, some biorefineries with full onsite storage capacity have been forced to curtail production while waiting on delayed empty railcars to arrive. Destination fuel terminals have also run out of ethanol while waiting on delayed shipments, causing fuel retailers to be unable to blend fuel for retail customers. According to Growth Energy, manifest traffic has been 2-4 days slower, on average, with certain lanes delayed 10-14 days. The group also noted that unit train traffic has seen inconsistent pulls and severe delays on getting loaded trains offsite, with delays ranging from 3-12 days.

“While we certainly understand that a variety of factors have contributed to these rail disruptions, it is imperative that all possible actions be taken by the nation’s railroads to ensure that these critical fuel supplies are immediately prioritized and reach markets as quickly as possible,” Growth Energy wrote. “Further delays could not only impact our industry but could ultimately increase fuel costs for American drivers.”

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A full copy of the letter can be downloaded from the Growth Energy website.

 

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