Neither company would provide specific numbers. Reading Blue Mountain & Northern Railroad and the North Shore railroads in Pennsylvania are also storing cars, according to company officials. Demand has been rising since late last year, accelerating further in the past three months, Miller said. The company is also storing up to 700 frac sand cars, as plummeting oil prices have pushed production into reverse for the first time in five years. Gennessee and Wyoming, the nation’s largest short line rail road, is collecting as much as $5 a day on each of about 2,000 idle crude rail cars in Utah, the Midwest and Canada, according to chief commercial officer Michael Miller. By comparison, BNSF has 32,500 route miles in 32 states. WNY&P’s main rail line is about 190 miles (306 km) long. “They’ve been here for about five months, and we hear rumors more are coming,” Carl Belke, chief operating officer for the line, told Reuters. Outside this town of 14,000, along sidings that once helped ship vast volumes of coal, lumber and other raw materials during the region’s industrial heyday, the Western New York and Pennsylvania Railroad is now collecting fees for about 800 cars. Short-line railroads from Utah to Pennsylvania are making millions of dollars every month by providing refiners, producers and traders a place to park their unused tank cars. They show how the pain from the slump in the oil-by-rail industry has spread far and wide.īig rail lines, such as Berkshire Hathaway-owned BNSF Railways or Union Pacific are losing what used to be their fastest-growing source of new traffic refiners such as PBF Energy are left with millions of dollars worth of unused rolling stock and leasing firms such as Trinity Industries and Greenbrier Companies Inc have seen monthly rates fall to a third of peaks above $2000 per car. shale oil production and the completion of new pipelines. The oil tank cars - a year ago sought-after to haul crude from North Dakota to New Jersey - now stand idle as a result of two converging trends: the reversal in U.S. OLEAN, New York, Sept 1 (Reuters) - Amid the rolling mountains surrounding this quiet town in southwest New York state, tucked away on miles-long stretches of underused rail tracks, hundreds of idle oil tank cars attest to the extent of fallout from oil’s rout.
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