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Chemical ramp-up threatened

by Marc S. Reisch
March 6, 2017 | A version of this story appeared in Volume 95, Issue 10

Transportation logistics threaten to bedevil the U.S. chemical industry as petrochemical output generated because of the shale gas revolution ramps up. According to a report just released by consultants PwC and the American Chemistry Council, bottlenecks in rail, ship, and truck chemical shipments could cost the industry more than $22 billion over a 10-year period ending in 2025. Challenges include a shortage of qualified truck drivers as baby boomers retire, congestion at marine ports, and significant delays at high-traffic rail nodes such as in Chicago, Houston, and New Orleans. The report, which surveyed 68 chemical firms and a number of transportation sector stakeholders, calls for cooperation, rule changes, and infrastructure investment “to ensure the chemicals renaissance delivers its full economic potential.”

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