Effects of Railroad Deregulation on Grain Transportation PDF Download

Author: James Michael MacDonald
Publisher:
ISBN:
Category : Farm produce
Languages : en
Pages : 52

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Author: James Michael MacDonald
Publisher:
ISBN:
Category : Farm produce
Languages : en
Pages : 52

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Author:
Publisher:
ISBN:
Category : Grain
Languages : en
Pages : 36

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Book Description

Author: Clifford Winston
Publisher: Brookings Institution Press
ISBN: 0815714386
Category : Business & Economics
Languages : en
Pages : 80

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Book Description
For close to 100 years, America's surface freight industries, primarily rail and trucking, operated under the protective wing of the U.S. government. In 1980 Congress, finding vast inefficiencies in the two industries, substantially deregulated both, opening them at last to market competition. Deregulation has brought with it many changes—for firms within the industries, for their labor force, and for shippers and their customers. Clifford Winston, Thomas M. Corsi, Curtis M. Grimm, and Carol A Evans provide a comprehensive evaluation of the effect of the deregulation legislation on the rail and trucking industries. According to the authors, deregulation has made substantial progress in solving the two most vexing problems of the surface freight transportation industry—excessive rates in the trucking industry and insufficient returns on investment in the rail industry. Competition and efficiency have returned to both industries, and although the labor force in each has suffered wage and job losses, shippers and their customers have gained roughly $20 billion a year in benefits. The authors recommend policies that would continue to promote competition and the efficient use of highway and railway infrastructure.

Author:
Publisher:
ISBN:
Category : Government publications
Languages : en
Pages : 28

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This assessmeht report identifies the major post-Staggers impediments to the grain marketing and transportation system and recommends actions to alleviate these problems. the Office of Transportation visited 48 grain shippers in the summer of 1983 and conducted nine regional workshops in 1983-84.

Author:
Publisher:
ISBN:
Category : Government publications
Languages : en
Pages : 68

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Author: John Georgiades
Publisher:
ISBN:
Category : Grain
Languages : en
Pages : 130

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Author: David M. Kessler
Publisher:
ISBN:
Category : Grain
Languages : en
Pages : 142

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Book Description

Author: Kenneth W. Dorsch
Publisher:
ISBN:
Category : Grain
Languages : en
Pages : 216

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Author: Felix Cabeza
Publisher:
ISBN:
Category : Wheat
Languages : en
Pages : 328

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Book Description
This study analyzes the impact of the 1980 Staggers Rail Act (SRA) on Pacific Northwest (Oregon, Washington, Idaho and Montana) wheat transportation. A minimum cost uncapacitated transshipment network flow model is employed to simulate the origination and destination pattern of grain flows before (1977) and after (1985) the SRA. The grain transportation flow for those two years is compared and analyzed as a basis for measuring the impact of rail deregulation. The Transportation Simplex Algorithm is used to find the optimum (minimal cost) wheat transportation flow for the two time periods. Four modes of transportation -truck, barge, rail, and ocean carriers -are used to link a sample of inland grain elevators (source), barge terminals (transshipment), PNW ports on the Lower Columbia River and Puget Sound (transshipment), and foreign countries (sink). The empirical results indicate that the SRA has had a significant impact on modal distribution, overall transportation costs, and rate competition. Under the assumption of perfect information and profit maximizing behavior, and considering both single car and multicar rates, two-thirds of the total PNW wheat traffic should have moved by rail in 1985. This represents a significant increase compared to 1977, when this percentage was estimated at only 46.43 percent. This increase in rail modal share has come at the expense of truck-barge shipments. The truck-barge share of wheat transportation declined from 47.53 percent in 1977 to 25.66 percent in 1985. Most of this increase in rail shipment is the result of lower shipping costs offered through multicar rates. If only single car rail rates are considered in 1985, the rail market share is only 25.66 percent; while truckbarge market share is 66.60 percent. The volume of wheat exported through the Lower Columbia River ports and Puget Sound appears not to have been affected by the SRA. Overall wheat transportation cost decreased significantly over this time interval. In nominal terms, it cost an average of 5.32 percent less in 1985 than in 1977 to transport a metric ton of PNW wheat to the port terminals on the west coast. When adjusted for inflation, average wheat transportation cost decreased around 44 percent. Sensitivity analysis showed that the wheat transportation market in the PNW has been very competitive since 1977 with some apparent changes in market behavior. First, railroads had a greater ability in 1985 than in 1977, to capture wheat traffic from truck-barge by lowering rates. When rail rates are reduced by one percent, rail traffic increases 7.93 percent in the 1985 model and only 2.40 percent in the 1977 model. Rail rate increases, on the other hand, lead to higher traffic losses in 1977 than in 1985. For an increase of one percent in rail rates, rail traffic decreased 10.21 percent in 1977, and only 4.76 percent in 1985. The conclusion of this study is that there has been a significant diversion of wheat traffic from truck-barge to rail, during the period of rail deregulation. Overall transportation costs have also decreased, and the railroads ability to capture wheat traffic by reducing rates has been enhanced. It is concluded that the impact of the SRA on PNW wheat transportation is due largely to the introduction of multicar rates by the railroads serving the region. The implications of these findings are that railroad deregulation has provided many of the benefits expected by this legislation. Shippers are favored by the SRA because they are paying lower transportation costs. Railroads have benefited, to the extent that their market share has increased. Barge companies, however, have been adversely influenced by the SRA because they have lost their modal share of wheat traffic to railroads. Shippers, while benefiting from lower rates, seems now more vulnerable to the potential for future rail rate increases.