By Karl Plume
CHICAGO (Reuters) - As U.S. ethanol production and demand steadily climb, construction of new rail terminals that can quickly and efficiently unload unit trains is critical to sustained growth in the biofuels sector, a transportation industry specialist said on Tuesday.
The majority of ethanol produced in the United States is shipped via railcar, much of it from major production areas in the Corn Belt to blending facilities near large cities along the coasts.
Unit trains, seen as the most efficient and cost effective method of shipping the biofuel, can haul about 1.5 million gallons to 3.25 million gallons at a time.
"Most of the ethanol plants that are being built currently have the ability to ship unit trains, but we have very few destination terminals that can receive trains," said Thomas Williamson, founder and principal of Kansas City-based Transportation Consultants Co.
"When you have 100-some ethanol plants, probably 75 of which can ship unit trains, and you've only got seven destinations, it's a problem," he said, speaking at the Reuters Global Agriculture and Biofuel Summit.
Those terminals can unload unit trains from 50 to 110 cars long in under 24 hours, Williamson said. Some smaller terminals can unload trains that long, but only in multiple phases, he said.
U.S. ethanol capacity increased more than 40 percent in 2007 to nearly 7.6 billion gallons a year.
There are currently 137 ethanol plants operating, with another 62 plants under construction and eight undergoing expansion. If all those plants and expansions come on line, the total U.S. capacity would rise to about 13.3 billion gpy. Continued...
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