Shipping oil by rail is causing delays and increasing costs for other industries shipping raw materials and finished products. Wheat, automobiles, and coal are a few examples.
Year to date carloading for grain is up almost 20% from 2013. Coal is flat (Thanks, Obama). Motor Vehicles and Parts up 5%.
Delays? Look at volume, first.
Not true. Increased intermodal, motor vehicle and grain traffic contributes to delays as well. Railroads, especially BNSF, haven’t dug out of the mess caused by excessive winter weather. Chicago is still a mess for everyone. The railroads, however, are spending billions this year on capacity expansion to deal with it.
Crude-By-Rail (CBR) shipments are booming because it is a cost-effective alternative to non-existent pipelines, and many oil companies are finding it to be superior to building a pipeline because it gives them more flexibility (unit trains can be diverted).
Pipeline capacity will grow in coming years, but railroads will continue to play a role crude oil transportation. A good resource can be found at https://rbnenergy.com/