New York, 4 January 2008 - Rock Island Railroad CEO Danny Ocean, after appearing on late night television, released new figures that puts the Class I ahead of others in transporting ethanol for the 2007 fiscal year.
As a guest on the Late Show with David Letterman this week, he made a few remarks toward the exciting new fuel trend. "People are divided on whether ethanol will keep booming or go bust," Ocean remarked, "but one thing is for certain: this is putting new strength into smaller branch lines that did not have much hope for future survival." Ocean made the point that as new ethanol plants are opened, tracks are being upgraded by using funds tapped from new revenues that would otherwise have not existed.
The largest majority of Rock Island ethanol plants exist in the state of Iowa. A historically midwestern granger railroad, these lines have been with the railroad for over 150 years. The main revenue producer is the so-called "CRANDIC" line that stretches between Cedar Rapids and Iowa City.
During the Southern Pacific merger in the mid-90s, this line was initially planned to be spun off to a shortline operation. But visionary heads prevailed and the line was kept as part of a secondary north-south route. Today it serves several new ethanol plants.
Terminals are another important aspect of the ethanol craze. In the last two years, yards have had to be widened at Manly, Iowa; Kelly Yard at Silvis, Illinois; and the Kanesville Yard at Council Bluffs, Iowa. These are major capital investments that may transcend the life of ethanol.
Additionally, interchange with other railroads is on the rise, especially with eastern partners such as the New York Central, who have had to add trains to an already busy corridor to serve customers interested in ethanol fuel.
Ocean concluded his spot on the Late Show with a somewhat cautious yet satirical statement that "because railroads rely on private investment and very little public investment, we are at the forefront of revolutionizing global commerce - which is one of the reasons I am on this show tonight instead of lobbying at Capitol Hill."
For further information, contact Basher Tarr, Public Affairs. |
