The Way I See the Rail Problem for~Pixie
Ethanol Concerns Due to Surge of Oil Shipped by Rail
and Rail Traffic.
he peak freight seasons are triggered by ~
1.) The exponential growth in crude oil shipments by rail (Tank car shortage and ensuing Rail Traffic)
2.) Summer Fuel Demand
3.) Summer Coal Demand from Coal Fired Power Plants - (Air Conditioning Surge)
4.) Rail Volume do to the strengthening of the economy
5.) Bountifulfall grain harvest
6.) Shipment of retail merchandise for Christmas
7.) Transportation of new vehicles to dealers for the start of the new model-year
8.) Weather
The unknown is whether the railroads can adriotly adjust the allocation of their rail assets, primarily locomotives and crews, to accommodate this increase in freight volume without impacting.
They Were Not Able to On the Frozen Rail Surge and are Still 7 Weeks Behind.
Oil industry forecast is for rail shipments of crude oil to continue to increase each year as the U.S. accelerates toward achieving energy independence, projected to occur post-2020.
Ethanol Movement to the West Coast will be a Problem and Brazil has Limited Ethanol Due to
the Drought.
Percentage of Feedstocks can Avoid Rail Delay
( 30% Sorghum will Ease Corn Shipping Delays )
1.) Southern Sorghum Rail Route from Texas is Uncongested, a Bushel of Sorghum is $1 Cheaper
than a Bushel of Corn right Now.
2.) 15% Raw USDA Sugar Pre Bought and With In 10 Miles of the Idaho Plant Also Eases Corn Need
and Potential Corn Shipping Delays.
3.) 5% to 10% of Corn Is Locally Sourced
That Leaves 45 to 50% Corn Subject to Delays .
This Should Not be a Problem as between Rail Surge Traffic Clogging
They Can Fill their Massive Storage Bins with Corn Enough to Get thrue Rail Delays
- As a Result PEIX Will be Able to Run at Maximum Capacity Unaffected by Delays
and Will be Able to Capitalize On High Pricing during Ethanol Shortage in the West
from Rail Clogs.
- Tanker Car Shortage will not affect PEIX , as Tanker Cars Will get Stuck in the West from Traffic.
The Majority of PEIX's Local West Coast Movement is by Tanker TRUCKS.
The Rail Industry Will be struggling for years with rail-related delays.
For These Reasons I See PEIX Benefiting by Rail Delays.
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