Minnesota Ag Department study concludes more rail competition would benefit shippers

02/26/2010

A lack of competition among railroads in Minnesota is resulting in higher rates for shipping corn, wheat and soybeans. That's according to a new study conducted by Minnesota Department of Agriculture’s Ag Marketing Services and the Minnesota Department of Transportation.

The study also finds that the further a shipment originates from barge transportation, the higher the rail rates. For example, wheat shipments originating 100 miles from water transportation pay rates that are 8.7 percent higher than those originating 50 miles from port. The study was prompted by concerns expressed by shippers and farm associations that as agricultural exports increase, rail rates have also gone up.

To view the full MDA study, go to: http://www.mda.state.mn.us/sitecore/content/Global/MDADocs/food/business/railcompstudy.aspx

Or send a request to info@mnshippers.org and MSA will forward the study.


Source: Minnesota Department of Agriculture Marketing Department, February 2, 2010