Railroads tout improved fertilizer shipping performance, but industry remains skeptical

The BNSF Railway Co. and Canadian Pacific Railway Co. (CP) reported in late May that they have met or exceeded fertilizer delivery goals for the spring planting season in the U.S. Midwest and Northern Plains states.

In reports submitted to the U.S. Surface Transportation Board (STB) on May 30, BNSF said that as of May 29 it had delivered 56 trainloads of fertilizer to ultimate unloading destinations in Iowa, Minnesota, Missouri, Montana, Nebraska, the Dakotas, and Texas. That number exceeded the railroad’s initial goal set on April 12 of moving 52 trainloads of fertilizer over a six-week period, BNSF said.

On a state-by-state basis, BNSF reported that as of May 28 it had delivered 19 unit trains of fertilizer in South Dakota, 14 in North Dakota, 5 each in Minnesota and Texas, and 3 each in Iowa, Montana, and Nebraska.

“In addition to exceeding the 52-trainload goal, we were also able to move 19 fertilizer trainloads that we received in interline service for delivery on BNSF’s network in addition to the individual carloads of fertilizer moving in manifest service,” BNSF said. “While we have achieved the goals set as part of our Six-Week Fertilizer Campaign, we will continue to focus resources on achieving the fluidity and reliability across our network that our agricultural and other customers require.”

CP’s final report showed statistics only for the May 18-24 week, during which it delivered 346 fertilizer railcars in Minnesota to some 25 receivers; 229 railcars in North Dakota to 9 receivers; and 52 railcars each in Iowa and South Dakota to 4 and 5 receivers, respectively. CP said the average transit times “are currently faster than the service standard” in Minnesota and the Dakotas, with “dwell and speed” improvements driving the improved service.

“Performance metrics continue to reflect normal operations across our U.S. rail network,” said Robert Johnson, vice president of operations for CP’s Southern Region. “Overall U.S. and CP network performance remains consistent week over week, with very strong volumes being presented to the railway across all commodities. Chicago remains at Alert Level 1, but CP is operating normally with heavy inbound volumes from offline carriers. With respect to fertilizer, as a result of consistent and average transit times, carload volume levels continue trending well above the 3-year average for this final reporting week.”

The May 30 reports were the sixth and final reports submitted by the two railroads to the STB in response to an April 15 directive (GM April 21, p. 1) from the STB requiring BNSF and CP to provide weekly updates on their efforts to ensure timely deliveries of fertilizer during the planting season. The STB had ordered the reports in response to persistent complaints from the fertilizer and other industries of critically delayed rail shipments this spring.

“This is encouraging news for our producers,” said U.S. Rep. Kevin Cramer (R-N.D.) in a June 2 statement. “With fertilizer needs largely met, BNSF and CP Railway can more closely focus on agriculture product shipment needs in the region. I will continue working with the rail companies to monitor progress and facilitate updates.”

The favorable reports were met with incredulity from some fertilizer industry contacts, however. “We can’t rely on rail service to receive deliveries,” an exasperated Pacific Northwest contact told Green Markets in late May. “Even with product already shipped, we are still experiencing an extra 30-65 day travel time after they have shipped. BNSF must be broken, they can’t get anything right.”

BNSF reported on May 9 that it had already loaded 73 percent of the promised unit train volume of fertilizer, but the railroad also acknowledged a p