MANHATTAN, Kan. — Abandonment of Kansas’ short-line railroads would add nearly $50 million annually in repairs to the state highway system, a Kansas State University report found.
According to the Topeka Capital-Journal, the price tag is based on the increased truck traffic that would be caused if 1,700 miles of short-line railroad track were abandoned in the western two-thirds of the state.
The study — completed this spring by Michael W. Babcock, professor of economics, and graduate student James L. Bunch — examined four short-line railroads: the Kansas and Oklahoma Railroad, of Wichita; Kyle Railroad Co., of Phillipsburg; Cimarron Valley Railroad, of Satanta; and the Nebraska Kansas and Colorado RailNet Inc., of Grant, Neb.
The Kansas and Oklahoma Railroad is a subsidiary of Watco Cos., of Pittsburg, one of the nation’s largest privately owned short-line operators.
About 28 percent of all of the grain shipped from elevators located on the four short-lines in the study is shipped by rail. If abandoned, those grain shipments would be carried by truck.
It takes four trucks to move what is in one rail hopper car. The researchers used engineering equations to calculate the amount of damage those additional trucks would cause the highways.
Babcock said trucks wear out roads much faster than cars because a loaded truck weighs 80,000 pounds, 30 times more than a car.
The report also found that the market share of grain shipped by truck from Kansas grain elevators has increased dramatically during the last decade, raising concerns about the profitability of short-lines in the future, Babcock said.
“If the structural changes in the Kansas grain transportation system continue, the long run viability of Kansas short-lines could be threatened,” Babcock said. “Should this happen, several consequences could occur. One of the most important impacts would be increased road damage as the grain the short-lines transported is diverted to motor carriers.”
The report noted that the share of wheat shipped by truck from Kansas grain elevators increased from 37 percent in 1990 to 47 percent in 1999.
The motor carrier share of soybean shipments went from 35 percent in 1990 to 53 percent in 1999.
The result, according to the study, is that the four short-line railroads reported profit declines ranging from 11 percent to 20 percent during the last five years.
“As more grain has been shipped by truck, short-line traffic and profits have been negatively affected,” Babcock said, “perhaps threatening the long run viability of these railroads.”
The two-year K-State study was funded by a $61,000 grant from the Kansas Department of Transportation.
Contributing to the short-line traffic decline is the ongoing consolidation of Kansas agriculture into fewer and larger farm units, Babcock said.
“With the increased scale of operations, farmer ownership of semi-tractor trailer trucks has increased,” he said. “With these trucks, farmers can bypass the local elevator and the short-line railroad serving it, and deliver grain directly to more distant markets, which will result in increased damage costs for county and state roads.”
The report’s study area included the western two-thirds of Kansas, which accounts for 92 percent of the total annual Kansas wheat harvest and 82 percent of the corn production.
According to the study, shippers cited more frequent and dependable truck delivery service as the main reason for shifting from short-line delivery of grain products, followed by uncompetitive rail shipping costs.
Shippers have increased their trucking of grain primarily because they view motor carrier service and prices as superior to that of railroads, Babcock said.
The study’s authors have pointed out that state government has a stake in preserving short-line rail service, including an option of leasing super jumbo hopper cars to operators.
“Given periodic car shortages and railroad congestion, the (major) railroads cannot always supply short-line railroads with covered hopper cars in a timely manner,” the report noted.