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Chrysler Vans Sitting Idle As Oil Boom Robs Rail Capacity
The Truth About Cars ^ | 4/24/2014 | Derek Kreindler

Posted on 04/24/2014 4:33:51 PM PDT by nascarnation

Several hundred Chrysler minivans are stuck indefinitely on a piece of prime Detroit real estate, unable to be transported across America. The reason? The fossil fuel boom in Canada and the United States is hogging much of the available rail capacity needed to transport the vans.

Citing a report by the Associated Press, the Windsor Star reports that railway capacity – which is normally transport new vehicles – is being eaten up by deliveries of oil from both the Alberta Oil Sands and the Bakken shale formation in the United States. According to the AP, just 9,500 railway carloads of crude were being transported in 2008, but that number exploded to 434,032 in 2013. In addition, ethanol shipments have exploded nearly fivefold since 2005, with up to 325,000 carloads being shipped last year.

One of the biggest players in energy shipments is CP Rail, a Canadian railway company that is also the major player in the Windsor, Ontario region, where Chrysler’s minivan plant is located. Aside from capacity issues, a CP spokesman told the Star that the extreme weather has created supply chain issues that still linger at CP’s Chicago hub.

A Chrysler spokesman told the Star

“We have experienced delays of delivery of our finished vehicles due to rail car shortages…We are using alternative modes of transport and alternative routes where possible to move around the biggest problem areas.”

Inventories of the two vans have fallen sharply in the last month. As of April 1st, Chrysler had 50 days worth of Town & Country vans, and 37 days worth of Caravans, down from 75 days and 50 days respectively on March 1st.


TOPICS: Agriculture; Business/Economy; Miscellaneous
KEYWORDS: alberta; associatedpress; bakkenshale; canada; chrysler; crude; derekkreindler; detroit; keystonexl; michigan; oil; opec; railroad
Huge numbers of oil tankers on the rails now.

Obama has blocked pipeline construction to reward his railroad owning buddies like Warren Buffet.

1 posted on 04/24/2014 4:33:51 PM PDT by nascarnation
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To: nascarnation
" rail car shortages"

Minivans are now shipped in Tank Cars?

Oil trains now go through Detroit on their way to Ontario?

2 posted on 04/24/2014 4:37:58 PM PDT by Paladin2
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To: Paladin2

Detroit is the second busiest freight crossing on the continent.


3 posted on 04/24/2014 4:42:07 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Paladin2

Engines to pull them, engines to bring back the empties to reload with cars. Much more profitable to pull tank cars, I reckon. Look for shipping surcharges to be added to the new vehicle price.


4 posted on 04/24/2014 4:43:47 PM PDT by NonValueAdded (Operating out of weakness? Imagine if he was working from a position of strength!)
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To: nascarnation

Hey! How about if we build a pipeline. That would work. Don’t ya think?


5 posted on 04/24/2014 4:44:44 PM PDT by deweyfrank
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To: cripplecreek
Yabut are crude oil trains crossing at Detroit?

Port Huron?

To do that they'd pretty much have to come through Chicago.

6 posted on 04/24/2014 4:47:09 PM PDT by Paladin2
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To: deweyfrank
"Hey! How about if we build a pipeline. That would work. Don’t ya think?"

You are to smart to be a serf, you should be president.

7 posted on 04/24/2014 4:50:58 PM PDT by The_Republic_Of_Maine (Be kept informed on Maine's secession, sign up at freemaine@hushmail.com)
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To: Paladin2

I would think most of the crude going to Sarnia would be through the Embridge pipeline. They just doubled capacity on it.

However a lot of freight passes through Detroit both by train and truck. Availability of trains will make a difference.


8 posted on 04/24/2014 4:51:53 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Paladin2
"Yabut are crude oil trains crossing at Detroit? "

It isn't about crossings at Detroit, it's about A) a nation-wide shortage of locomotives and B) trains literally having to wait for an available slot, all over the US, but especially along lines coming out of Alberta and North Dakota.

Trains around here are running almost bumper-to-bumper.

9 posted on 04/24/2014 4:54:15 PM PDT by cookcounty (IRS = Internal Revenge Service.)
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To: cripplecreek
"The Lac-Megantic train was loaded in New Town, N.D., in the middle of the Bakken deposit, and shipped through Windsor by CP."

At least they don't come through here. Sounds like there are plenty running through the RR tunnel.

10 posted on 04/24/2014 4:55:37 PM PDT by Paladin2
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To: nascarnation

An increase in tank car traffic of a whopping 5,000% over 6 years.


11 posted on 04/24/2014 4:56:20 PM PDT by cookcounty (IRS = Internal Revenge Service.)
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To: The_Republic_Of_Maine

Good thing I’m not Pres. I would piss off Warren Buffett and Carl Icahn for sure.


12 posted on 04/24/2014 5:10:58 PM PDT by deweyfrank
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To: nascarnation
Too bad there's no mechanism to allow those car carriers to be attached to the rear of an oil tanker train.


13 posted on 04/24/2014 5:14:34 PM PDT by SnuffaBolshevik
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To: nascarnation

If there is so much oil in transit then why the heck did I just pay $4.05 a gallon for premium? I gotta get a different car.


14 posted on 04/24/2014 5:21:14 PM PDT by Afterguard (Liberals will let you do anything you want, as long as it's mandatory.)
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To: Afterguard

If there is so much oil in transit then why the heck did I just pay $4.05 a gallon for premium?


Refineries ?

I know there are restrictions in the US for NEW refineries, but why isn’t Canada building refineries ?


15 posted on 04/24/2014 5:27:57 PM PDT by Zeneta (Thoughts in time and out of season.)
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To: Paladin2

Doing a little digging and it looks like you’re right, a lot of oil is moving through Detroit and Windsor.

I’m betting that people in Detroit don’t have a clue that “The one” allows the danger. Looking at maps and I see a potential disaster that could kill thousands.


16 posted on 04/24/2014 5:35:27 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SnuffaBolshevik

Some research (I’m definitely not a rail expert) indicates that oil tankers are pretty heavy per car compared to typical freight cars. So the “typical” tanker train is pulling the max weight that the locomotives can handle for the grades to be traversed at the speeds required.


17 posted on 04/24/2014 5:49:11 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: Zeneta
I know there are restrictions in the US for NEW refineries, but why isn’t Canada building refineries ?

Or Mexico? Plenty of other Maquiladora-type factories along the border. Why not a refinery or 25?

18 posted on 04/24/2014 5:51:20 PM PDT by Disambiguator
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To: Disambiguator

I was going to say Mexico, but I figured Carlos “Slim Shady” is happy to make his money from US taxes as opposed to US consumers.


19 posted on 04/24/2014 5:59:12 PM PDT by Zeneta (Thoughts in time and out of season.)
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To: SnuffaBolshevik

There’s more single track than there used to be, so trains are limited in length by the length of the passing sidings.


20 posted on 04/24/2014 5:59:37 PM PDT by Paladin2
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To: Afterguard

Taxes and one world government.


21 posted on 04/24/2014 6:00:41 PM PDT by Paladin2
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To: deweyfrank

“Hey! How about if we build a pipeline. That would work. Don’t ya think?”

That, and outlawing gasohol


22 posted on 04/24/2014 6:20:14 PM PDT by Figment
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To: nascarnation
"Some research (I’m definitely not a rail expert) indicates that oil tankers are pretty heavy per car compared to typical freight cars. So the “typical” tanker train is pulling the max weight that the locomotives can handle for the grades to be traversed at the speeds required.

Not busting your chops, nas.

There are some truly immense tonnage coal trains that have 3-5 locomotives at the head end with a few more mid-train and a couple more at the end (remotely controlled). Of course, these are unit trains that pick up at the mines and deliver to the customer without picking up general freight at every Bugtussel siding.

That being said, leaving cars full of minivans at a siding makes no sense. Unless someone wants to send a message to the manufacturer of them. Ciao.

/tinfoil.

23 posted on 04/24/2014 6:31:50 PM PDT by SnuffaBolshevik
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To: nascarnation

Comments at the site indicate plenty of other newly-built Chrysler vehicles are filling up Detroit.

If they were selling them at an ACTUAL profit, they would be getting to the dealers.

Sergio Marchionne will probably lead the largest corporate bankruptcy in world history and demand to be bailed out by taxpayers.


24 posted on 04/24/2014 6:40:14 PM PDT by jjotto ("Ya could look it up!")
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To: nascarnation

Most oil trains are unit trains. What we need is to reactive some of the old railroads (that we made in rail trails) and get GE Texas locomotive plant to build more locos!


25 posted on 04/24/2014 6:40:57 PM PDT by ExCTCitizen (I'm ExCTCitizen and I approve this reply. If it does offend Libs, I'm NOT sorry...)
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To: NonValueAdded

At the railroad that I work for, we’re pulling all of our older locmotives out of long term storage, and putting them back into service for this very reason. Carloading are through the roof right now, and not enough power to pull them. A lot of those return to service locomotives are also going to the Canadian railroads as horsepower payback. Also, tank car manufacturing is running at capacity right now.


26 posted on 04/24/2014 8:09:56 PM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: deweyfrank
"Hey! How about if we build a pipeline. That would work. Don’t ya think?"

For shipping minivans? No sweat! If it's for electric vehicles, obama will subsidize it.
27 posted on 04/25/2014 2:26:02 AM PDT by clearcarbon
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To: Paladin2
Must be a shortage of these things too or drivers for them or whatever.


28 posted on 04/25/2014 2:46:22 AM PDT by xp38
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...
Thanks nascarnation.
...railway capacity – which is normally transport new vehicles – is being eaten up by deliveries of oil from both the Alberta Oil Sands and the Bakken shale formation in the United States. According to the AP, just 9,500 railway carloads of crude were being transported in 2008, but that number exploded to 434,032 in 2013.
IOW, because that Kenyan-born muzzie jackhole has stonewalled the Keystone XL.
29 posted on 04/25/2014 3:39:42 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: deweyfrank

If you can really live with being free, you should consider moving to Maine and helping us secede.


30 posted on 04/25/2014 5:25:45 AM PDT by The_Republic_Of_Maine (Be kept informed on Maine's secession, sign up at freemaine@hushmail.com)
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To: nascarnation

All big oil does is refine it and ship it over seas. Who cares anymore...


31 posted on 04/25/2014 5:33:05 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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