Chemical ramp-up threatened | Chemical & Engineering News
Volume 95 Issue 10 | p. 14 | Concentrates
Issue Date: March 6, 2017

Chemical ramp-up threatened

Department: Business
Keywords: trade, chemical shipments, shale gas

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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