U.S. Drivers to Face Delays at Rail Crossings due to Oil Shipments

September 28, 2014

 

Runaway oil production could slow road traffic as drivers face longer delays to cross train tracks in many congested regions, a U.S. study released on Friday predicted.

Oil, coal and grain shipments are taxing the national rail grid as the deliveries of those commodities are expected to climb along with commercial shipments in the coming years, according to the report from the Government Accountability Office, an investigative arm of Congress.

Freight movements on the tracks are due to rise 51 percent over 2007 levels by 2040, according to the Transportation Department, and so exceed 28 billion tons per year.

One factor is oil train deliveries out of North Dakota's energy patch that neared 250,000 carloads in 2012 compared with roughly 10,000 in 2007, says the study. (Study: http://1.usa.gov/YlzeW6)

The increased oil shipments will translate into tie-ups at highway-rail crossings, though the study said it was hard to judge what areas of the country would be most affected.

The Transportation Department "has generally treated congestion as a source of delay in the delivery of freight shipments and hence as a factor that reduces economic productivity, not as a factor that produces adverse community impacts."

But long trains blocking roads will come as a cost to quality of life in many parts of the country, the report says.

(Reporting by Patrick Rucker; Editing by Lisa Shumaker)

 

Logistics News

Logistical Bottlenecks Threaten Competitiveness of Brazilian Agribusiness

Logistical Bottlenecks Threaten Competitiveness of Brazilian Agribusiness

Africa Global Logistics to Invest in Inland Logistics

Africa Global Logistics to Invest in Inland Logistics

Hapag-Lloyd Freight Demand Boosted by US-China Trade Truce

Hapag-Lloyd Freight Demand Boosted by US-China Trade Truce

Edison Receives First Delivery of US LNG From Venture Global

Edison Receives First Delivery of US LNG From Venture Global

Subscribe for Maritime Logistics Professional E‑News

Kazakhstan's oil production fell 3% but remained above OPEC+ quota
Spot premiums on Russian June ESPO blend decline amid OPEC-driven increase in supply
Vizion reports that China-US ocean cargo bookings have increased after the tariff pause.