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Tuesday, September 25, 2007 1:56 PM ET
Mine loading issues hamper PRB coal shipments in September
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Loading problems at mines in the Wyoming Powder River Basin have slowed coal shipments out of the region during September, according to the two major Western rail carriers, which both issued customer alerts recently notifying them of the loading issues.

"Mine issues have resulted in the loss of an average of 5.2 train loading opportunities per day in the Powder River Basin (PRB), including Wyoming and Montana mines, during the first 16 days of September 2007," BNSF Railway said in a Sept. 20 customer update. "Up to 40 empty trains per day were holding for mine loading slot availability during the first half of this month."

BNSF noted that its PRB shipments are still up compared to September 2006, but that the current September has been slower than August, when monthly shipments out of the PRB moved very efficiently. In August, mine issues resulted in the loss of an average of only 2.2 train loading opportunities per day, BNSF said.

Year to date through Sept. 16, BNSF has loaded a total daily average of 49.5 trains in the PRB, compared to the 49.3 average trains per day loaded through the same period in 2006. Systemwide, BNSF has loaded a total of 204.1 million tons through Sept. 16, 2007, 1.3% above the 2006 year-to-date total of 201.4 million tons.

Union Pacific Railroad recently released similar data about September loadings, stating that through Sept. 23 there had been 98 missed loading opportunities in the southern PRB. Of the 98 missed loadings, 77 were attributable to the mines, seven to congestion on the Joint Line, one to a utility customer and 13 due to events on UP, the railroad said.

Through Sept. 23, UP was on pace to load 1,090 coal trains in the southern PRB in September, up from 1,029 trains in September 2006, but down from 1,118 trains in August. UP Vice President Doug Glass recently reported that the 1,118 trains loaded in August set a new monthly record for the railroad.

In other PRB rail news, BNSF reported that it recently completed several construction projects in the region, including the placement into service of 13 miles of new third main track on the Wyoming Joint Line between Coal Creek Junction and Reno Junction. Work is also nearing completion on 12 miles of additional third main track between Caballo Junction and Coal Creek Junction, with that line expected to come into service in October.

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