Growth Energy Calls on Surface Transportation Board to Address Disruptions in Rail Supply Chain

WASHINGTON, D.C. — Late last week, Growth Energy sent a letter to the Surface Transportation Board (STB) to voice concerns over the significant service delays – such as empty car arrivals and extreme delays in manifest and unit train traffic – in the rail supply chain impacting the biofuel industry. Growth Energy, whose members ship nearly 70 percent of ethanol by rail to key distribution points throughout North America, explains that this disruption affects not only business but American drivers as it can ultimately result in less biofuel blending.

“While we certainly understand that a variety of factors have contributed to these rail disruptions, 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,” wrote Growth Energy. “Further delays could not only impact our industry but could ultimately increase fuel costs for American drivers.

“With ethanol trading 80 cents to a dollar per gallon less than wholesale gasoline, it is essential that ethanol reach its destination to benefit American drivers facing high gasoline prices.”

Read the full letter here.