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Transportation/Logistics Trend CBR. John Irvine PUBP 716 September 22, 2014. “Crude Oil by Rail: The Industry is Changing,” by Steven R. Ditmeyer Eno Brief , August/September 2014 Steven R. Ditmeyer is an Adjunct Professor of Railway Management at Michigan State University.
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Transportation/Logistics Trend CBR John Irvine PUBP 716 September 22, 2014
“Crude Oil by Rail: The Industry is Changing,” by Steven R. Ditmeyer Eno Brief, August/September 2014 Steven R. Ditmeyer is an Adjunct Professor of Railway Management at Michigan State University. The Eno Center for Transportation is a neutral, non-partisan think-tank that promotes policy innovation and provides professional development opportunities across the career span of transportation professionals.
Article Overview • Key Arguments (5+/- minutes) • Conclusions (5+/- minutes) • Impressions (5+/- minutes) • Questions (10+/- minutes)
Key Arguments • Demand for Crude Oil • Not All Crude is Equal • Clogged Network
http://www.theodora.com/pipelines/united_states_pipelines_map.jpghttp://www.theodora.com/pipelines/united_states_pipelines_map.jpg
Conclusions • Accidents • Costs (Old vs. New Tank Cars) • Congestion/Backlogs on Rails
Impressions • Industries vs. Regulators • Tank Cars Hold Aces • Future: Keystone XL Pipeline?
Private & Public Stakeholders • Association of American Railroads (AAR) • Tank Car Builders • Owners/Lessors of Tank Cars • Crude Oil and Refiners • PHMSA • FRA • USDOT • SERC • STB
Tank Car Manufacturers Greenbrier Companies American Railcar Industries, Inc. FreightCar America Inc. Westinghouse Air Brake Technologies Corporation Trinity Industries Inc. Source: The Street, By: Kapitall, 01/18/13 http://www.thestreet.com/story/11817169/1/5-tank-car-manufacturers-to-benefit-from-crude-by-rail.html,
Follow the … Tank Cars Warren Buffett Cashes In on Railroad Tank Cars Bloomberg Business Week By Drake Bennett November 14, 2013
Questions • Should Congress lift the 1975 ban on exporting crude oil? • How will the global value chain be impacted by clogged rails in the US?
Sources Eno Center for Transportation • https://www.enotrans.org/eno-brief/crude-oil-by-rail-the-industry-is-changing • Image credit: slides 6, 10, 11 Association of American Railroads • https://www.aar.org/keyissues/Documents/Background-Papers/Crude%20oil%20by%20rail.pdf • Image credit: slides 5, 7, 8, 12 Bloomberg Business Week • http://www.businessweek.com/articles/2013-11-14/2014-outlook-warren-buffett-cashes-in-on-railroad-tank-cars