EASING CONCERNS ABOUT PLANNED RIVER SYSTEM CLOSING
U.S. WHEAT ASSOCIATES READY TO HELP
U.S. wheat importers are likely aware that the Columbia Snake River System (CSRS) will close for extended maintenance
beginning Dec. 12, 2016, and ending March 20, 2017. This will allow the U.S. Army Corps of Engineers to make
essential renovations to all the navigation locks on the Columbia River and the Snake River. No barge traffic will be able to
pass during this time. We know you may be concerned about supply, cost impact and logistical options. We take those
concerns seriously and want to help you minimize any possible impact before, during, and after the river system closure.
An Important Investment
Such extended closures are unusual but U.S. Wheat
Associates (USW) welcomes this investment as a
critical part of being the world’s most reliable supplier to
our customers. As we learned during the last extended
closure in 2010/11, the entire Pacific Northwest (PNW)
system is fully capable of ensuring an uninterrupted supply
of wheat to export terminals.
SYSTEM IS BETTER PREPARED
Storage and Rail Capacity are Up
USW believes the industry will consider every logistical
option to keep wheat, especially soft white (SW) wheat,
flowing to export elevators. Significant changes in the
PNW will help make this closure more manageable. For
example, the addition of an entirely new export terminal
plus expansion at several others have increased storage
capacity from 564,000 metric tons (MT) to 866,000 MT
today. The PNW’s total up-country grain storage capacity
has also grown to 17.3 million MT from 16.4 MMT.
Rail shipping will likely make up most of the barge capacity
shortfall during this closure as it did in 2010/11. Only
a small volume of hard red spring and hard red winter
wheat moves to PNW terminals by barge. Rail sourcing
of soft white will have to increase, but railroads have also
increased loading sites and capacity.
Rail shipping will likely make up most of the barge capacity
shortfall during the Columbia Snake River upgrade.
system is prepared. Rail
“ The
shipment made up 54% of
soft white sourced during the
2010/11 river closure. PNW
exporters already source about
80% of hard red winter and 90%
of hard red spring by rail. Rail
capacity is up today, and export
terminal storage capacity is now
close to 900,000 MT.
– U.S. Wheat Associates
“
SUPPLY CHAIN PREPARATIONS
Knowing the CSRS will be closed during the upgrade,
exporters, grain originators, barge operators, railroads,
and trucking lines are already planning to minimize
interruptions and costs. Alternatives include:
•
•
•
Pre-positioning the maximum number of barges to
load SW before the closing (the Bonneville Lock
and Dam should re-open after 8 weeks, which would
open facilities up river to The Dalles, about 135 km
east of Portland);
Moving more rail cars and locomotives into the region
to handle increased demand from rail-loading interior
elevators;
Coordinating truck and rail delivery from the
Willamette Valley, south of Portland.
USW believes there will be sufficient volume of all U.S.
wheat classes normally available from the PNW. Buyers
can also help lower the risk of interruption and minimize
potential costs by taking a longer view of their purchase
needs.
USW Advises its Customers to Consider:
•
Consulting with PNW exporters as early as
possible to help give exporters more time to
respond to your needs and to manage their
logistical challenges.
•
Scheduling a meeting soon with the local USW
representative to identify buying strategies that
fit specific needs and capabilities;
•
Analyzing inventory needs and logistical
capabilities;
•
Increasing SW wheat and/or flour storage;
•
Increasing SW purchase cadence in the
harvest and immediate post-harvest period
(July – November) before the closure;
•
Deferring as an offset some hard red winter
(HRW) and hard red spring (HRS) shipments
from the immediate post-harvest period into the
maintenance period.
As an objective voice for U.S. wheat producers, USW
greatly values the trust customers have in our products
and service. Our focus remains fixed on helping buyers,
millers, and wheat food processors learn how to grow
their enterprises using our wheat. Working together, we
believe we can help ease any concerns related to the
closure and even strengthen our partnership. We look
forward to assisting you now, as always.
About the Columbia Snake River System
The CSRS is a vital transportation link for wheat
producers in the states of Idaho, Montana, Oregon and
Washington. The economies of these four states rely
heavily on the commerce that flows up and down this
system. The CSRS is the #1 U.S. wheat export gateway.
The deep draft channel supports 46 million tons of
cargo each year, valued at $20 billion. The inland system
supports more than 9 million tons of cargo.
For more information, visit:
•
•
www.pnwa.net
http://1.usa.gov/1tn0L9b
The world’s most reliable choice.
U.S. Wheat Associates (USW) is the industry’s market
development organization working in more than 100 countries.
Its activities are made possible by producer checkoff dollars
managed by 18 state wheat commissions and through cost-share
funding provided by USDA’s Foreign Agricultural Service.
WWW.USWHEAT.ORG
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