WASHINGTON — Federal regulators today officially rejected as moot a California poultry producer’s request for an emergency service order that would cover corn deliveries from Union Pacific.
But the Surface Transportation Board ordered UP to continue to provide the board with weekly updates regarding unit grain train deliveries to Foster Farms, which operates three rail-served facilities in California.
Foster Farms was granted an emergency service order last summer after its feed supplies were running low due to interruptions in UP service amid ongoing congestion related to crew shortages. UP ultimately delivered more corn than Foster Farms could handle.
Foster Farms sought a second emergency service order on Dec. 29. The next day the board ordered UP to file daily progress reports. UP said harsh winter weather in December delayed grain trains bound for Foster Farms. All of the trains were ultimately delivered, but arrived late.
The board now is requiring UP to provide weekly updates on service to Foster Farms until May 15. Regulators also said the docket will remain open for 180 days in case any further action is warranted.
Maybe Foster Farms need to build a larger surge storage facility for their corn and keep it at a minimum level…usually one or two trains transport times, so that they are covered in extreme circumstances.
Sounds like up til now they have expected the railroad to be that facility, sort of like what plastic producers do with pellet loads sitting and waiting at the railroads yards to be delivered… Well for the most part, those days are over.
If you are not managing your inventory of raw materials, it will manage you. Sounds like Foster Farms unwillingness to build the needed facilities has caught them short and they want the railroads to pay for it…