Extensive flooding in the Midwest has caused damage to railroad infrastructure and additional flooding is expected now along the Mississippi River, resulting in widespread service disruptions in the Iowa-Kansas-Missouri-Nebraska area.
The Federal Railroad Administration has declared an “emergency event” related to railroad operations as the National Weather Service has documented historic flooding throughout the region with rivers rising to recored levels in over 40 locations, causing power outages and breached dams and levees. The situation has created delays in the transportation of biofuels all over the Midwest.
Growth Energy CEO Emily Skor has called on the U.S. Department of Transportation to help expedite rail delivery of biofuels amid historic flooding.
“While we certainly understand and appreciate that these rail issues have been caused by the calamitous flooding currently occurring in the Midwest, it is imperative that all possible actions be taken by the nation’s railroads to ensure that these critical fuel supplies are immediately prioritized and reach markets as quickly as possible,” Skor said in a letter to Transportation Secretary Elaine Chao. “Further delays could not only impact our industry, but could also ultimately increase fuel costs for American drivers.”
Last week ethanol reached a seven-month high on the Chicago Board of Trade and it has been reported that 13 percent of the nation’s ethanol production capacity has been impacted by the flooding.