Transportation in Illinois - Illinois Soybean Association 2014

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TRANSPORTATION

IN ILLINOIS

To ensure efficient

transport of soybeansand soybean products

– Increase farmer

profits

– Protect market

access

ISA’s second highest priority

ILLINOIS TRANSPORTS

A LOT OF SOYBEANS

How much?

5.7 million tons annually

To whom?

Domestic and international

customers

How?Illinois roads, waterways

and railways

– Harms competitiveness in

domestic and

international markets

– Reduces efficiency and

productivity

– Increases costs for Illinois

farmers as much as

$1 – $2 per bushel

• Roads & BridgesROADS & BRIDGES

Without sufficient funding, areas that cannot afford

infrastructure improvements will be left with minimized

access to markets

RURAL COMMUNITIES RELY ON ROADS

AND BRIDGES TO MOVE SOYBEANS

FROM FARM TO MARKET

Weight restrictions and detours also impact the local

elevators and processors because farmers shift where

they take their grain

INFRASTRUCTURE PROBLEMS CAN

FORCE FARMERS TO DETOUR AS MANY

AS 20 – 50 MILES. THIS CAN COST AN

ADDITIONAL $.05 PER BUSHEL

A checkoff-

funded study

found:

• RailwaysRAILWAYS

In Illinois, rail is king:• Soybeans typically travel between

500 – 800 miles

• Illinois processors receive half of all

soybeans by rail

THE FEDERAL RAILROAD

ADMINISTRATION ESTIMATES THAT

RAILROAD TONNAGE WILL INCREASE

88% BY 2035

Leads to detours and delays

Reduces access in many rural communities

Increases reliance on trucking

MORE THAN 100,000 MILES

OF RAIL LINES HAVE BEEN

ABANDONED IN RECENT

DECADES

WATERWAYS

Nearly 23.5 million tons of grain

are shipped annually via

inland waterways

When Lock 27 near Granite City, Ill., was

closed in September 2012 because of the cell

damage, it cost the shipping industry about

$3 million a day in lost revenue

- The U.S. Army Corps of Engineers

This struggle to move product ultimately risks losing

market share to international soybean producers

WITHOUT MAINTAINED WATERWAYS, AN

ADDITIONAL 58 MILLION TRUCK TRIPS

PER YEAR WOULD CONGEST ALREADY

HEAVILY USED ROAD SYSTEMS

CONTAINERS & INTERMODAL

– Transport various types of soybeans overseas—high protein,

identity preserved or non-GMO

– Ship to markets that cannot accept bulk vessels

The growing demand

could help Illinois

soybeans stand out to

global customers

Legislators from Illinoisand the U.S. have set

goals to take advantage

of this growing market

+Some Illinois processors are loading intermodal

containers with

soybeans, soybean

meal and even distiller's

dried grains (DDGS)

+

Exporting soybeans in

containers offers a much

higher return to the local economy compared to

paper or scrap, which may

otherwise fill backhauls

ISAINITIATIVES

HOW: Bring together industry stakeholders to develop an Illinois

container-on-barge service that supports transportation of soybeans

and soy products

• New containerization facilities planned in Decatur, ILand Norfolk, VA

• Working with USSEC on developing key international markets

for these containers

WHY: Initiate a commercially

competitive and sustainable

COB circuit

HOW: Use multiple channels to raise awareness of Illinois

infrastructure issues impacting the transport of soybean products

– DeKalb, IL – Keslinger Road

– Peoria, IL – Multiple Locations

– Rock Island – Lock 14

– LaGrange

WHY: Collaborate to improve

freight movement and logistics

HOW: Facilitate public and private investments that improve

soybean movement and ensure competitiveness for Illinois

– Peoria County officials and U.S. Army Corps of Engineers

– DeKalb County officials involved with the Keslinger Rd. Bridge, via the U.S. Dire States tour and media outreach

WHY: Encourage public-private

financing to improve transportation

infrastructure throughout Illinois

GETINVOLVED.