Media Releases
Increased ethanol production creates new jobs and demands in the railroad industry
December 21 , 2006 -
With ethanol plants springing up all over the Midwest and the Renewable Fuels Association expecting over 230,000 new jobs to be created by 2012, it is clear that the ethanol industry has become a great success story. What might not be as clear is just what industries are seeing the most impact.
One such industry is railroad. With gas prices climbing, problems with traffic congestion rising, and planes, trucks, and barges having limited carrying capacities, rail has proven to be a cost-efficient way to transport ethanol across the U.S.
Statistics presented by the Renewable Fuels Association (RFA) showed that in 2005, the U.S. produced 4 billion gallons of ethanol, a 17 percent increase from 2004, with another increase expected in 2006. As these production numbers grow, so does the issue of transport.
A study by the Iowa State Extension Office showed that Iowa, the current leader in ethanol production, moves 65.3 percent of ethanol by rail and only 34.7 percent by truck.
State and local government is helping the railroad industry keep up with the growth by providing grant money to rebuild or develop new tracks, but the industry still is in need of one very important resource: railroad conductors.
While the rapid growth of the ethanol industry may have been cause enough to create a high demand for trained conductors, another factor has had an impact on the shortage. In 2001, a change in legislation lowered the retirement age for conductors, thus causing a significant exodus of individuals in the industry.
With this legislative change and the increasing rail transport demands, the industry now projects that 80,000 workers will need to be hired nationwide over the next six years, leaving them with the challenge of finding the individuals and providing them with the proper training.
One solution for the railroad industry was working with higher education to develop training programs and aid in recruiting efforts.
Officials at Dakota County Technical College in Rosemount, Minn., were approached by the railroad industry in 2004. After hearing about the huge demand for conductors, the college realized that it would be an outstanding opportunity for their students and began program development.
Union Pacific, Canadian Pacific Railway, and Progressive Rail worked with Dakota County Technical College on developing curriculum, donating equipment, and allowing access to facilities. The railroads also helped establish certain physical requirements and admissions prerequisites for entrance to the program. Additionally, the college built a quarter-mile track with six cars on the campus so students could get the hands-on experience necessary for success in the industry.
Today, the program is booming. Students complete the program in seven weeks, have the opportunity to interview with railways, receive hands-on training, and see an excellent job placement rate.
Despite the strong start, the demand for railroad conductors remains high, and both the railroad industry and schools such as Dakota County Technical College are encouraging interested individuals to enroll.
"The demand is there and wages are good. Once you are in, the average salary is at $67,128 for a conductor. And, there are opportunities to advance," said Larry Raddatz, a customized training coordinator at Dakota County Technical College.
Other programs like this exist throughout the Midwest, but Dakota County Technical College is the first institution in Minnesota to house a railroad conductor training, resulting in them seeing students from all over.
"People who have gone through the program have had all sorts of backgrounds, whether that be where they are from or what kind of work they did before deciding to become a railroad conductor. The common factor is that they are interested in the opportunities that this line of work presents," said Raddatz.
To learn more about the railroad conductor training program at Dakota County Technical College and about the current demands of the railroad industry, visit www.dctc.edu or call 877-YES-DCTC.