CHICAGO, Sept 30 (Reuters) - Berkshire Hathaway ( BRK/A )-owned
BNSF Railway will resume issuing permits for grain
shuttles heading to Mexico starting Tuesday, the company told
Reuters on Monday, in a move that could help ease some delays
impacting agricultural exports.
The news comes as U.S. East and Gulf Coast port workers are
set to go on strike on Tuesday, with no talks currently
scheduled to head off a stoppage.
Rail backlogs have been disrupting export trade between the
United States and Mexico and snarling agricultural supply chains
as the fall harvest is under way.
In late August, BNSF stopped issuing permits for grain
shuttle trains going into Mexico, in part because booming demand
outstripped the system's capacity, creating heavy congestion and
a growing backlog of loaded trains, according to the company and
agricultural export sources.
BNSF said it will resume issuing the permits, except for a
small number in early October. Some permit requests still may
not be fulfilled, and BNSF is monitoring the situation, the
company said in an email to Reuters.
"BNSF's actions are a great first step to getting ag
commerce flowing freely between the countries again," National
Grain and Feed Association President Mike Seyfert said Monday.
"Until this bottleneck is fully addressed and trains are moving
without delay, U.S. carriers and shippers could still face
unexpected delays."
BNSF said it has continued to move agricultural trains of
grains and grain products to Mexico during this process.
"We only limit shuttles due to congestion," the company
said.
Union Pacific Corp ( UNP ) also has stopped issuing permits
for grain shuttle trains to Mexico, according to its website.
Ferromex (FXE), the Mexican railroad that interchanges with
BNSF and Union Pacific ( UNP ), has embargoed permits for grain trains
at border crossings at Eagle Pass and El Paso, Texas, USDA said.
A UP spokesman said the company is closely monitoring the
situation. Ferromex did not respond to a request for comment.