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Class Is’ revenue from transporting soybeans and soy products has nearly tripled during the past decade from $549 million in 1998 to $1.5 billion in 2008, according to a recently published Soy Transportation Coalition (STC) report.

Entitled “Railroad Movement of Soybeans and Soy Products,” the report also states that the largest destination area for rail-moved soybeans is the Pacific Northwest, specifically Washington and Oregon ports. Forty-eight percent of soybeans loaded into rail cars are destined to the ports because of the strength of Asia’s export market.

Established in 2007, STC — which comprises seven state soybean boards, the American Soybean Association and United Soybean Board — released the report to shed light on the volume of soybeans and soy products coalition members believe are transported at “potentially excessive rates,” according to the STC. In addition, the report focuses on the states where the soybean industry is most dependent on rail.

Forty-two percent of soybean rail moves, or a total of 9.2 million tons, are transported at rates the Surface Transportation Board would classify as “potentially excessive,” which resulted in a potential overcharge of $120 million in 2007, according to the STC. BNSF Railway Co. transports the largest volume of soybeans, and Union Pacific Railroad originates the most soybean meal and soybean oil.

“It is important for railroads to generate the necessary returns on their investment to allow them to maintain and expand their network. However, we in the soybean industry are concerned with the volume of money — $120 million — that is not being retained in rural America due to potentially excessive rail rates,” said STC Executive Director Mike Steenhoek in a prepared statement. “There needs to be a way for railroads and the soybean industry to achieve a better balance so that one is not profiting at the expense of the other."