Friday, November 18, 2011

Coal transport rates will start leveling off: energy consultant

Railroad rates for carrying coal will flatten in the near term after doubling since 2006, the president of energy consulting firm Hellerworx said Friday.
A combination of extra scrutiny over rates and tremendous profitability among railroads are slowing the exponential rate increases, said Jamie Heller at a luncheon hosted by the National Capital Area Chapter of the US Association for Energy Economics.
Railroads began increasing their rates once they realized most of their simple productivity gains through longer and faster trains, he said. But Heller cautioned that rates certainly won't start decreasing, even with utilities turning to cheaper natural gas. Continued

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