MPC
Research Projects (2002-03)

Identifying Number

MPC-203

Project Title

Containerized Grain & Oilseed Exporters: Industry Profile and Survey, Phase II

University

North Dakota State University

Project Investigator

Kimberly Vachal
Upper Great Plains Transportation Institute
North Dakota State University
(701)231-6427
kimberly.vachal@ndsu.edu

External Project Contact

Heidi Reichert
Shipper & Exporter Assistance/USDA
1400 Independence Avenue SW, Room 1217S
Washington, DC 20250-0267
(202)690-2325
heidi.reichert@usda.gov

Project Objective

The goal of this project is to develop a profile of the U.S. containerized grain and oilseed export industry, including marketing activities, future expectations, information needs, and business practices. This profile will be the first in a two-stage project to be completed over a two-year period. The second stage of the project, to be completed in year two, will be a survey of this industry. This survey will be used to expand and update the industry profile created in year one of the project.

Project Abstract

Competitive access to an array of agricultural markets is critical to agricultural shippers and rural economies in the Midwest. One sector that has gained notoriety in recent years is that sector marketing its grain and oilseed products via container. It seems that technological advancements in shipping, grain production, grain handling, communications, sophistication of buyer expectations, and grain producer business developments may lend themselves to continued development of this sector.

It has been estimated that currently, less than one percent of the U.S. grain and oilseed production is marketed via container. A recent survey of grain industry experts suggests that this volume could increase by more than 300 percent over the next five years. Limited, and rather disjointed, information exists for profiling the industry or identifying trends required for regional and national logistical planning. Information ascertained through this survey would be valuable in addressing logistical planning distributing resources for economic development, addressing regulatory issues, planning infrastructure investment, and other facets associated with this sector of the grain transportation industry.

Task Descriptions

• Task 1 – Work with USDA to form industry advisory group, including selection and invitation. (September 2002)
• Task 2 – Revise draft survey that will be sent to active grain container shipper. Data collected will enhance information developed in the Phase I review of grain container data and literature. (September 2002)
• Task 3 – Attend Transportation Research Board working grain committee meeting to discuss project with industry, academia, and government committee participants. (November 2002)
• Task 4 – Plan and hold meeting of industry advisory group and ask these individuals for survey input. (December 2002)
• Task 5 – Administer survey. (January 2003)
• Task 6 – Present survey results in report form. (July 2003)
• Task 7 – Meet with industry advisory group to discuss survey results and future activities. (August 2003)

Milestones, Dates

Starting Date: September 2002
Ending Date: August 2003

Yearly and Total Budget

Year 1 $43,197
Year 2 $80,000

Student Involvement

None

Relationship to Other Research Projects

This is a continuation of the project titled by the same name. An MPC report has been published with the findings of Phase I. USDA has contributed $50,000 to Phase II of this project and is an active participant in the work.

Technology Transfer Activities

Final report and presentations of results.

Potential Benefits of the Project

National, state and local planning and marketing agencies may utilize this information to assess current activities, define factors that contribute to the success of this form of grain marketing, and develop expectations for this sector of the grain industry.

• The grain and oilseed export sector may use the data for benchmarking their industry.
• State DOTs may use the information in state transportation planning and in evaluating rail and road investments.
• Regulatory agencies may utilize the information in policy decisions regarding the grain industry.
• Local and state economic development initiatives may utilize the information in infrastructure decisions.

TRB Keywords

Intermodal, grain