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Rail Market Share of Grain and Oilseed Transportation

Author

Listed:
  • Prater, Marvin E.
  • Sparger, Adam
  • Bahizi, Pierre
  • O’Neil, Daniel Jr.

Abstract

The share of the grain and oilseed harvest moved by rail has been declining since 1980, when the Federal Motor Carrier Act and the Staggers Rail Act were passed. Large structural changes associated with these acts affected the decline over the following two decades. Yet, even though the large structural changes had already taken place by 2000, the rail market share of grain and oilseed transportation has continued to decline. This paper develops a state-level statistical model for 21 of the top grain-producing states (which produce 86.6% of all grain and oilseeds) to investigate which major factors have been responsible for the decrease in the rail market share of grain and oilseed transportation since 2001. Twenty variables are tested in the model, and 10 are found to have a statistically significant impact on rail market share. Of these, three are most important in the decrease of rail market share: ethanol production, biodiesel production, and the concentration of animal feeding.

Suggested Citation

  • Prater, Marvin E. & Sparger, Adam & Bahizi, Pierre & O’Neil, Daniel Jr., 2013. "Rail Market Share of Grain and Oilseed Transportation," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 52(2).
    • Handle: RePEc:ags:ndjtrf:207350
    DOI: 10.22004/ag.econ.207350
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    References listed on IDEAS

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    1. MacDonald, James M., 1989. "Effects of railroad deregulation on grain transportation," Technical Bulletins 312302, United States Department of Agriculture, Economic Research Service.
    2. Tun-Hsiang (Edward) Yu & Chad E. Hart, 2009. "2007/08 Iowa Grain and Biofuel Flow Study: A Survey Report, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 09-sr103, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Wilson, William W., 1998. "U.S. Grain Handling And Transportation System: Factors Contributing To The Dynamic Changes In The 1980s And 1990s," AE Series 23081, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Bitzan, John & Vachal, Kimberly & VanWechel, Tamara & Vinje, Dan, 2003. "The Differential Effects of Rail Rate Deregulation U.S. Corn, Wheat and Soybean Markets," MPC Reports 231695, North Dakota State University, Upper Great Plains Transportation Institute.
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    Cited by:

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    2. Li, Xishu & Zuidwijk, Rob & de Koster, M.B.M, 2023. "Optimal competitive capacity strategies: Evidence from the container shipping market," Omega, Elsevier, vol. 115(C).
    3. Ndembe, Elvis & Bitzan, John D., 2022. "A shadow price approach examining service quality in a heavily captive U.S. freight transportation market: The case of grain transport," Transport Policy, Elsevier, vol. 116(C), pages 1-10.
    4. Sichao Jiang & James Nolan & Wesley W. Wilson, 2022. "Exit Decisions in the Canadian Grain Elevator Industry," Journal of Industry, Competition and Trade, Springer, vol. 22(1), pages 1-19, March.
    5. Nash, Chris A. & Smith, Andrew S.J. & van de Velde, Didier & Mizutani, Fumitoshi & Uranishi, Shuji, 2014. "Structural reforms in the railways: Incentive misalignment and cost implications," Research in Transportation Economics, Elsevier, vol. 48(C), pages 16-23.
    6. Peitz, Martin & Schwalbe, Ulrich, 2016. "Zwischen Sozialromantik und Neoliberalismus: Zur Ökonomie der Sharing-Economy," ZEW Discussion Papers 16-033, ZEW - Leibniz Centre for European Economic Research.

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