A Sunrise Ag Services employee dumps corn at the Havana, Ill., barge-loading facility on the Illinois River, jointly operated with CHS. It is paramount to constantly look for opportu-nities to extend and improve the transportation network for CHS customers, Mack says. “Whether it’s purchasing new railcars or part-nering with local cooperatives on hub plants, we have to be strategic and creative in meeting the transportation needs of the cooperative system. An efficient distribution and logistic system is critical for the long-term success of CHS and its customers.” RAIL DEREGULA TION The 1970s was a difficult decade for U.S. railroads. Cheap diesel fuel sparked trucking growth, which had a crippling effect on rail traffic. Many of the nation’s 300,000 miles of rail lines fell into disrepair and several rail lines went out of business. The Staggers Rail Act of 1980 deregu-lated the industry and triggered significant consolidation. Of the more than 40 railroads that existed prior to deregulation, only seven remain, and they operate on just 160,000 miles of track. Today, conditions have improved greatly for railroads, with demand for freight hauling soaring since 2000, due to increased global trade. Profits have doubled for the industry since 2003, due in part to increased freight rates, which some in agriculture are now calling out of line. Those hit hardest are “captive shippers” who don’t have other viable transportation options. But railroads argue higher rates reflect the increased cost of providing service to those areas, as well as the large investments they’ve made in infrastructure in recent years. In 2008, for example, the industry spent $10 billion to build new track and im-prove facilities — an all-time high for industry reinvestment, according to the Association of American Railroads. CHS doesn’t support re-regulation, now being debated by lawmakers, but favors es-tablishing a neutral body to resolve conflicts between shippers and rail providers, says Jim Bareksten, CHS director of government affairs. “CHS supports efficient, available and cost-effective transportation,” he continues. “We don’t support any decisions that would upset the marketplace or economics because we are concerned about long-term investment in rail infrastructure.” IMP A C T OF •• LEARN MORE •• For more, watch an interview with Dan Mack and a cooperative manager at www.chsinc.com/c. 12 November/December 2008 WWW.CHSINC.COM