transportation in illinois - illinois soybean association 2014
TRANSCRIPT
TRANSPORTATION
IN ILLINOIS
To ensure efficient
transport of soybeansand soybean products
– Increase farmer
profits
– Protect market
access
ISA’s second highest priority
ILLINOIS TRANSPORTS
A LOT OF SOYBEANS
How much?
5.7 million tons annually
To whom?
Domestic and international
customers
How?Illinois roads, waterways
and railways
– Harms competitiveness in
domestic and
international markets
– Reduces efficiency and
productivity
– Increases costs for Illinois
farmers as much as
$1 – $2 per bushel
• Roads & BridgesROADS & BRIDGES
Without sufficient funding, areas that cannot afford
infrastructure improvements will be left with minimized
access to markets
RURAL COMMUNITIES RELY ON ROADS
AND BRIDGES TO MOVE SOYBEANS
FROM FARM TO MARKET
Weight restrictions and detours also impact the local
elevators and processors because farmers shift where
they take their grain
INFRASTRUCTURE PROBLEMS CAN
FORCE FARMERS TO DETOUR AS MANY
AS 20 – 50 MILES. THIS CAN COST AN
ADDITIONAL $.05 PER BUSHEL
A checkoff-
funded study
found:
• RailwaysRAILWAYS
In Illinois, rail is king:• Soybeans typically travel between
500 – 800 miles
• Illinois processors receive half of all
soybeans by rail
THE FEDERAL RAILROAD
ADMINISTRATION ESTIMATES THAT
RAILROAD TONNAGE WILL INCREASE
88% BY 2035
Leads to detours and delays
Reduces access in many rural communities
Increases reliance on trucking
MORE THAN 100,000 MILES
OF RAIL LINES HAVE BEEN
ABANDONED IN RECENT
DECADES
WATERWAYS
Nearly 23.5 million tons of grain
are shipped annually via
inland waterways
When Lock 27 near Granite City, Ill., was
closed in September 2012 because of the cell
damage, it cost the shipping industry about
$3 million a day in lost revenue
- The U.S. Army Corps of Engineers
This struggle to move product ultimately risks losing
market share to international soybean producers
WITHOUT MAINTAINED WATERWAYS, AN
ADDITIONAL 58 MILLION TRUCK TRIPS
PER YEAR WOULD CONGEST ALREADY
HEAVILY USED ROAD SYSTEMS
CONTAINERS & INTERMODAL
– Transport various types of soybeans overseas—high protein,
identity preserved or non-GMO
– Ship to markets that cannot accept bulk vessels
The growing demand
could help Illinois
soybeans stand out to
global customers
Legislators from Illinoisand the U.S. have set
goals to take advantage
of this growing market
+Some Illinois processors are loading intermodal
containers with
soybeans, soybean
meal and even distiller's
dried grains (DDGS)
+
Exporting soybeans in
containers offers a much
higher return to the local economy compared to
paper or scrap, which may
otherwise fill backhauls
ISAINITIATIVES
HOW: Bring together industry stakeholders to develop an Illinois
container-on-barge service that supports transportation of soybeans
and soy products
• New containerization facilities planned in Decatur, ILand Norfolk, VA
• Working with USSEC on developing key international markets
for these containers
WHY: Initiate a commercially
competitive and sustainable
COB circuit
HOW: Use multiple channels to raise awareness of Illinois
infrastructure issues impacting the transport of soybean products
– DeKalb, IL – Keslinger Road
– Peoria, IL – Multiple Locations
– Rock Island – Lock 14
– LaGrange
WHY: Collaborate to improve
freight movement and logistics
HOW: Facilitate public and private investments that improve
soybean movement and ensure competitiveness for Illinois
– Peoria County officials and U.S. Army Corps of Engineers
– DeKalb County officials involved with the Keslinger Rd. Bridge, via the U.S. Dire States tour and media outreach
WHY: Encourage public-private
financing to improve transportation
infrastructure throughout Illinois
GETINVOLVED.