(The Associated Press distributed the following article on September 15.)
MINOT, N.D. — Grain elevators are getting good service from the two major railroads in North Dakota, but dealers say this year’s late harvest could stress the system in coming months.
Both Burlington Northern Santa Fe and Canadian Pacific Railway are current on orders, said Steve Strege, executive vice president of the North Dakota Grain Dealers Association.
Canadian Pacific has been able to supply enough cars to some 100 elevators it serves in North Dakota, said James Clements, the railroad’s director of grain.
“From our perspective, it’s been a good September,” Clements said. “Right now, we’re in a position to have cars at elevators that didn’t order them. It’s quite a positive story given the time of year.”
Although the harvest has been slow, that is likely to change, Strege said.
“We didn’t get the crop we hoped for,” Strege said. “But I think with late crops like soybeans and corn, the system is yet to be tested.”
“Even wheat in North Dakota is an example. Just in the past week, they’ve gotten to the second half of the crop,” he said.
Clements said cars sent into North Dakota will be put into service as demand picks up. Wheat is the strongest component of Canadian Pacific’s demand and will fill the bulk of the cars now available, he said.
“Our estimate is that they’ll be used up by the end of the week,” Clements said. “Harvest has been slow getting going.”
At the Max Farmers Elevator, manager Charles Gabehart said train service has been good and his crews have already loaded two 25-car trains with canola and flax.
However, shipping rates are too high to justify sending some wheat to the Minneapolis market, Gabehart said.
“I would rather get grain moving to market rather than dumping it on the ground,” Gabehart said. “The service is good, but the rates stink.”