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Barges, unit trains increasingly important for American farmers Tuesday, July 20, 2004
Agri News staff writer
ST. PAUL -- A University of Minnesota Extension transportation specialist says barges and unit trains are increasingly important to moving corn, soybeans and value-added products to market.
The state is processing more corn into ethanol and is increasing soybean crushing capacity, creating such co-products as dried distillers grain and soybean meal that need to be transported.
As a result Minnesota farmers have more products and need more total transportation now than a decade ago, said Jerry Fruin, who is also a University of Minnesota associate professor.
Planning needed
Policy leaders need to plan ahead to meet those needs, Fruin said. Bulk commodity transportation should be increasing by one-half to two-thirds of the nation's Gross National Product per year to keep up with shipping demand, instead of being studied for 12 years when already at capacity.
The nation's railroads are at capacity, and in some places the river transportation system is at capacity. Highways are also reaching capacity, he said.
The lock and dam upgrade is vital, he said. Most of the state's bulk grain shipments continue to move down the Mississippi River to the Gulf of Mexico because that's where ocean-going vessels are waiting for cargo. Transportation to the West Coast via rail is increasing and will require unit train transportation, he said. Unit trains of soybeans are also moving to Mexico.
There won't be much cost savings if backups don't occur on the river. On the other hand, the backups limit the nation's competitiveness. If products can't be shipped, the nation won't be able to meet world demand, he said.
"The problem is political as much as anything on these locks and dams," Fruin said.
Legislation has been introduced in the U.S. Senate and House to authorize $2.4 billion for building new locks and dams at five locations -- locks 20 through 25 -- on the Mississippi River in Illinois and Missouri, and at LaGrange and Peoria on the Illinois River. An additional $5.3 billion would be budgeted for environmental improvements.
Commodity groups have heralded the legislation, but conservation groups have sounded alarms.
Mark Muller, director of environment and agriculture programs for the Institute for Trade and Agriculture Policy, said there isn't ample evidence that longer locks are required.
Instead, Muller said, the locks should be used more efficiently. The Institute references a National Academy of Sciences report that suggested appointments be set to reduce waiting time, that mechanical wrenches be used to reduce lockage time and that helper boats be used.
Time is critical
This measures should be implemented immediately, Muller said, and given five years to work. River cargo has been dropping and provides no economic justification for lock and dam lengthening to 1,200 feet, he said.
Paul Rohde, vice president of the Midwest Area River Coalition 2000, said statistics can be manipulated to show what a group wants to show.
"The reality is river traffic is increasing," Rohde said.
He says the Corps has spent 12 years studying every available option and has determined that the river transportation system needs to be upgraded. If the system isn't upgraded, river traffic will be forced onto railroads and highways, which will have other environmental consequences.
Friendly means
River transportation is the most environmentally friendly method of moving bulk commodities long distances, he said.
The locks are 70 years old, and they are showing their age, Rohde said.
He encourages farmers to call their lawmakers to voice support for the lock and dam upgrade.
Muller, on the other hand, said value-added agriculture is a better place to invest federal money. That will bring more money to farmers than shipping raw products down river. Renewable fuels and renewable energy made from commodities are the future, he said.
Conservation groups are encouraging citizens to call their lawmakers to oppose the upgrade. |
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