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Grain freight elevator consolidation, transportation demand, and the growth of shuttle facilities

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  • Ndembe, Elvis
  • Bitzan, John

Abstract

Increasing consolidation and concentration in the U.S. grain-elevator gathering system characterized by larger capacity elevators (shuttle) has altered shippers’ relative usage and demand for transportation services. In this study, we estimate modal demand for individual elevator wheat shipments from the U.S. Northern Plains to export and domestic destinations between 2006 and 2013. We find a much higher rail dependence for shuttle elevators in comparison to non-shuttle elevators reflected by the relative size of modal demand elasticities.

Suggested Citation

  • Ndembe, Elvis & Bitzan, John, 2018. "Grain freight elevator consolidation, transportation demand, and the growth of shuttle facilities," Research in Transportation Economics, Elsevier, vol. 71(C), pages 54-60.
    • Handle: RePEc:eee:retrec:v:71:y:2018:i:c:p:54-60
    DOI: 10.1016/j.retrec.2018.10.001
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    References listed on IDEAS

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    1. William W. Wilson & Bruce Dahl, 2011. "Grain pricing and transportation: dynamics and changes in markets," Agribusiness, John Wiley & Sons, Ltd., vol. 27(4), pages 420-434, September.
    2. Prater, Marvin E. & Casavant, Ken & Jessup, Eric & Blanton, Bruce & Bahizi, Pierre & Nibarger, Daniel & Weingram, Isaac, 2010. "Rail Competition Changes Since the Staggers Act," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 49(3).
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    4. Hyland, Michael F. & Mahmassani, Hani S. & Bou Mjahed, Lama, 2016. "Analytical models of rail transportation service in the grain supply chain: Deconstructing the operational and economic advantages of shuttle train service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 294-315.
    5. Camilo Sarmiento & William W. Wilson, 2005. "Spatial Modeling in Technology Adoption Decisions: The Case of Shuttle Train Elevators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1034-1045.
    6. Tae Hoon Oum, 1979. "A Cross Sectional Study of Freight Transport Demand and Rail-Truck Competition in Canada," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 463-482, Autumn.
    7. Wilson, Wesley W. & Wilson, William W., 2001. "Deregulation, rate incentives, and efficiency in the railroad market," Research in Transportation Economics, Elsevier, vol. 6(1), pages 1-24, January.
    8. Ndembe, Elvis, 2015. "Hard Red Spring Wheat Marketing: Effects of Increased Shuttle Train Movements on Railroad Pricing in the Northern Plains," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 54(2).
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    Cited by:

    1. Masi, Pedro & Harris, Keith, 2021. "The Feasibility of Investing in a High-Speed Grain-Handling Facility in Kansas," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 3(1), March.
    2. Pittman, Russell & Jandova, Monika & Krol, Marcin & Nekrasenko, Larysa & Paleta, Tomas, 2019. "The Effectiveness of EC Policies to Move Freight from Road to Rail: Evidence from CEE Grain Markets," MPRA Paper 97571, University Library of Munich, Germany.
    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. Ndembe, Elvis & Bangsund, Dean A. & Hodur, Nancy M., 2020. "Estimating Rail and Truck Carrier Operation Cost for Transporting North Dakota Grain Freight, 2015-2017: Estimate for Input-Output Analysis," Agribusiness & Applied Economics Report 305223, North Dakota State University, Department of Agribusiness and Applied Economics.

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    More about this item

    Keywords

    Deregulation; Consolidation; Innovation; Efficiency; Shuttle elevators; Freight demand; Grain transportation; Grain supply chain;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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