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

Author

Listed:
  • Ming H. Chow

    (Research Associate in the Department of Agricultural Economics, Kansas State University)

  • Michael W. Babcock

    (Professor in the Department of Economics, Kansas State University)

  • L. Orlo Sorenson

    (Professor in the Department of Agricultural Economics, Kansas State University)

Abstract

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.

Suggested Citation

  • Ming H. Chow & Michael W. Babcock & L. Orlo Sorenson, 1986. "Analysis of structural changes in a grain logistics system: Trainload facilities and intermodal competition in northwest Kansas," Agribusiness, John Wiley & Sons, Ltd., vol. 2(3), pages 279-292.
    • Handle: RePEc:wly:agribz:v:2:y:1986:i:3:p:279-292
    DOI: 10.1002/1520-6297(198623)2:3<279::AID-AGR2720020303>3.0.CO;2-U
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    References listed on IDEAS

    as
    1. Fuller, Stephen & Shanmugham, Chiyyarath, 1978. "Network Flow Models: Use in Rural Freight Transportation Analysis and a Comparison with Linear Programming," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 10(2), pages 183-188, December.
    2. Jerry A. Fedeler & Earl O. Heady, 1976. "Grain Marketing and Transportation Interdependencies: A National Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(2), pages 224-235.
    3. Fuller, Stephen W. & Shanmugham, Chiyyarath V., 1978. "Network Flow Models: Use In Rural Freight Transportation Analysis And A Comparison With Linear Programming," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(2), pages 1-6, December.
    4. Wen-Shyong Chern & Leo Polopolus, 1970. "Discontinuous Plant Cost Function and a Modification of the Stollsteimer Location Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(4), pages 581-586.
    5. Donald A. Hilger & Bruce A. McCarl & J. William Uhrig, 1977. "Facilities Location: The Case of Grain Subterminals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(4), pages 674-682.
    6. Wilfred Candler & James C. Snyder & William Faught, 1972. "Concave Programming Applied to Rice Mill Location," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 126-130.
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    Cited by:

    1. Chow, Ming H. & Sorenson, L. Orlo, 1986. "Railroad Pricing in Grain Transportation Markets: A Kansas Case Study," 1986 Annual Meeting, July 27-30, Reno, Nevada 278175, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Tilley, Daniel S., 1989. "Value-Added Activities As A Rural Development Strategy: Discussion," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-4, July.

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