Monday, September 29, 2014

Rail Cars and the Capital Beltway

The Dakotas, that is their politicians and farm leaders, are upset over a shortage of rail cars to transport the big crop of grain, blaming in part the Canadians for mishandling and in part the transport of oil from the Bakken formation.

To those like me who live in the past, this seems familiar.  Sometime after I joined ASCS but before the end of the 70's there was a similar shortage of cars--I remember because the county ASCS offices were required to do a survey of their local rail facilities and report up the line. If memory serves it was a one-time deal.

What's my point and how does the beltway come into it?  I'd ass u me that there are cyclical surges and valleys in the demand for rail cars, and railroads are reluctant to spend money on more cars until they see a sustained demand (and until they have the money--which may have been a problem in the 70's--lots of big railroads going broke (NYCentral, Penn Central, etc.).  And of course there are surges and valleys in grain harvests, so there's the likelihood that sometimes railroads won't have enough cars, simply because it's easier to absorb a public beating once every few years than to have dollars sitting idle. For the same reason we won't usually have superhighways, like the Capital Beltway, free of traffic.  When we do, it's likely to be something named after a recent politician, a pork barrel project, not something like the Beltway.

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