Railroad Congestion Stops Grain Crossings at Mexican Border

This article has been reprinted from the Oct. 11 USDA Grain Transportation Report.

Citing congestion across the Mexican rail network, Union Pacific Railroad (UP) and BNSF Railways (BNSF) recently issued embargoes for grain, oilseeds, and other traffic interchanging with Mexican carriers along the Texas-Mexico border.

Embargoes are a temporary restriction on the acceptance and handling of freight.

UP announced slow interchanges with Kansas City Southern de Mexico (KCSM) have created severe congestion at the UP/KCSM interchange at Laredo, TX.

Subsequently, it placed an embargo on southbound traffic through the congested area for intermodal, automotive, fuel, wheat, and corn traffic.

Citing congestion at these crossings, BNSF announced an embargo on all grain, soybeans, dried distillers grain, soybean meal, and corn syrup destined for interchange with Mexican railroad, Ferromex (FXE), at Eagle Pass and El Paso, TX.

FXE has issued an additional embargo on receiving grain, oilseeds, and grain products in order to prevent further congestion on its network.