Grain exports on Mississippi river start to recover

By Peter Stiff

- Last updated on GMT

Related tags Mississippi river

A joint effort between government and industry is ensuring that
normal levels of grain export movement along the lower Mississippi
river are resumed as quickly as possible.

The area is still recovering from the aftermath of Hurricane Katrina that first struck the New Orleans region on the 29 August, causing substantial damage to waterways and grain handling facilities.

The Mississippi River is the cheapest route for shipping many crops and other commodities that are destined for overseas and domestic markets.

Therefore news that ships are again moving in the channel comes as a great relief to traders who had heard reports that up to 300 barges containing grains and other products had been left stranded, as parts of the river had become inaccessible.

With peak shipping season fast approaching US agriculture secretary Mike Johanns said he was "encouraged by the resumption of grain movement along the Mississippi River just one week after grain transportation was virtually halted".

But he warns there is "still much work to be done". Vessel restrictions, slower barge movements and limited staffing, have cut operational capacity of elevators and floating rigs to about 63 per cent of normal capacity.

Despite this, Johanns is "confident that remaining obstacles will be overcome to resume all activity in a timely manner".

There are ten export elevators in the surrounding New Orleans area with a storage capacity of about 53 million bushels of grain: they can load 970,000 bushels per hour when fully operational.

In addition, three "floating rigs" can load 30,000 to 60,000 bushels of grain per hour from river barges, directly on to ocean going vessels.

Now that ships are moving again the focus of the join task force, that includes the US Department of Agriculture and the department of Transportation, will be to restore power to facilities, ensure adequate staffing and reinstall navigational aids.

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