U.S. GRAIN HANDLING AND TRANSPORTATION SYSTEM: FACTORS CONTRIBUTING TO THE DYNAMIC CHANGES IN THE 1980S AND 1990S

This paper describes the important changes that occurred in the U.S. grain handling and transportation system in the period following deregulation in 1980. This system has evolved and will continue to do so in response to technological and institutional changes, competitive pressures and a changed regulatory regime. The effect has been to induce investments throughout the system ultimately to improve the efficiency. Some of the important rail innovations include the use of rate discounts to induce more efficient movements from origins first, and more recently at destinations. In addition, each railroad has adopted car allocation systems comprising of several mechanisms, giving shippers logistical choices which have also facilitated more efficient allocation of cars among shippers. Finally, a number of important implications for the Canadian industry are identified as it evolves through its forthcoming changes.