Flooded roads, rails limit Midwest shipping

Date : 06/13/2008 @ 6:41PM
Source : TFN
Stock : United Parcel Service Inc (UPS)
Quote : 51.7  -1.3 (-2.45%) @ 8:00PM
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Flooded roads, rails limit Midwest shipping

        (AP) - Flooding in the Midwest has swelled rivers and submerged roads and
rails, halting or delaying shipments of food, fuel and other goods.
Manufacturers also have been forced to suspend production of everything from
oatmeal to pork products.
    At the earliest, barge, road and rail traffic will get back to normal next
week. But companies are focused on getting through the weekend, when at least
one river is expected to crest at nearly 32 feet, making it possible that the
transportation snags could drag on.
    Union Pacific Corp., the nation's biggest freight railroad, currently has
six mainline tracks out of service that carry freight through Iowa. Burlington
Northern Santa Fe Corp. is experiencing delays along its key routes along the
Mississippi River -- from Ft. Madison, Iowa, to Memphis, Tenn.
    A bridge over the Cedar River has collapsed, and another owned by Union
Pacific is being monitored for possible washout. Several more are under water.
The shutdowns are expected to last about a week, but warned further delays are
possible.
    Flooding in Iowa and Wisconsin also is affecting Amtrak service on two major
western routes from Chicago to San Francisco and Seattle. Some service also is
suspended between Chicago and Denver, spokesman Mark Magliari said. Amtrak is
providing alternative service by bus and train in some areas, but not in Iowa,
at least through the weekend. Major lines to Wisconsin and some parts of
Minnesota have been suspended since Tuesday.
    The situation is slightly better for trucks, which can more easily redirect
cargo shipments to alternate routes.
    David L. Miller, chief operating officer for Con-way Freight, said regional
service has been shut down or delayed through virtually all the flooded areas.
He expects service to be nearly restored by Monday, as freight is transferred to
other routes.
    Both FedEx Corp. and United Parcel Service Inc. also said delays should be
minimal. Barring any further severe weather, both shippers expect to return to
normal operations by early next week.
    As shipments are delayed across the country, the floods also have caused
shutdowns at several food processing plants in Iowa, including a Quaker Oats
facility in Cedar Rapids and two Tyson Foods Inc. pork facilities.
    Quaker Oats, a unit of PepsiCo, Inc., makes its signature oatmeal cereals at
the Cedar Rapids plant, which employs 1,100 people, spokeswoman P.J. Sinopoli
said.
    A nearby distribution facility has not been affected. "We have ample
inventory on hand at this point to meet customer needs," she said, adding that
the company is reassessing the situation daily.
    Cedar Rapids is one of the worst-hit areas, with the Cedar River expected to
crest at 31.8 feet on Friday. In a 1993 flood, considered the worst in recent
history, it was at nearly 19.3 feet.
    "There is no business ... near downtown Cedar Rapids that isn't completely
shut down," Sinopoli said.
    Meanwhile, barge operator American Commercial Lines Inc. said flooding on
the Mississippi River will cause several lock closures, which could last about
two weeks, and more flooding over the weekend is expected to create delays
around St. Louis. Conditions on the Illinois River have stabilized and normal
operations have resumed, but a wet forecast could affect service this weekend,
the Jeffersonville, Ind.-based company said on its Web site.
    The railroad industry has been particularly hard it.
    -- Norfolk Southern Corp. expects flooding to shut down service through
Hannibal, Mo., this weekend. The company plans to reroute service on the line
through St. Louis.
    -- Canadian National Railway Co. currently has two sections of rail out of
service in Iowa, and spokesman Bryan Tucker said a portion of a mainline track
carrying cargo to Chicago washed out early Friday. Canadian Pacific Railway Ltd.
has shut its mainline through Wisconsin, which carries freight from Canada to
Chicago.
    "We're at the mercy of the weather at the moment, as is everybody else,"
said Canadian Pacific spokesman Mike LoVecchio.
    
    AP Business Writer Samantha Bomkamp reported from New York and Christopher
S. Rugaber reported from Washington.
    
Copyright 2008 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.
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