Analysis of structural changes in a grain logistics system: Trainload facilities and intermodal competition in northwest Kansas

This article evaluates potential change in Central Plains grain logistics systems, focusing on a supply area in northwest Kansas and export markets at the Gulf of Mexico and Pacific Coast. Employing a network model, total efficiency gains as well as changes in storage and transport costs are measured. Specific logistical changes that are evaluated include construction of trainloading facilities (subterminals) and increases in rail rates. Construction of subterminals results in substantial system cost savings and nearly all export wheat moves through the subterminal-unit train marketing channel. Rail rate increases of 15% result in only minor changes in marketing patterns and intermodal substitution.