Growth Energy, the nation's largest association of ethanol producers and supporters, welcomed today’s announcement of a tentative labor deal that averts a nationwide interruption of rail service.
“Farmers and biofuel producers across the country are very encouraged by news that this agreement will avert a potentially devastating rail shutdown,” said Growth Energy CEO Emily Skor.
“We appreciate the work of all parties involved in keeping trains and commodities moving across the country. Nearly 70 percent of U.S. ethanol production is moved by rail — more than 400,000 carloads annually — and no one wants to see American motorists cut off from a vital supply of lower-cost, lower-carbon fuels.”
Background:
The ethanol industry ships more than 400,000 ethanol carloads per year (USDA data: Annual U.S Rail Carloads of Ethanol | Open Ag Transport Data (usda.gov)), an estimated 200,000 carloads of distillers dried grains (DDGS), and more than 10,000 cars of corn oil. The ethanol fleet is now more than 36,000 cars (RSI data: Progress - Tank Car Resource Center).