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Churning Biodiesel for Fun and Profit

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1 of 4
speedbird71
12/5/12 1:36 PM
Someone figured out how to take churning and kick it up a few notches....

"A CBC News investigation has uncovered a cross-border mystery involving unexplained shipments of biodiesel tanker cars that were sent back and forth numerous times between Canada and the U.S. by CN Rail but were never unloaded.

According to leaked internal CN documents, the rail company stood to make $2.6 million for the effort.

“CN received shipping directions from the customer, which, under law, it has an obligation to meet,” CN Rail spokesman Mark Hallman said last week. “CN discharged its obligations with respect to those movements in strict compliance with its obligations as a common carrier, and was compensated accordingly.”

News story at CBC news
WikiPost
12/5/12 1:36 PM
xerty
12/5/12 2:16 PM
Yup, sounds like some government incentive program is getting gamed and the railroad was happy to (get paid to) help.


“This unit train will move at least once daily to Port Huron starting on Tuesday, June 18,” said an email written by Teresa Edwards, CN’s manager of transportation for Port Huron/Sarnia.

It will “clear customs and return to Sarnia. If we can get in more flips back and forth we will attempt to do so. Each move per car across the border is revenue generated for Sarnia/Port Huron.

“It will be the same cars flipping back and forth and the product will stay on the car.”

The email ends with a reminder that the move “has the potential to make a lot of money for CN so need everyone’s assistance to maximize the number of trips that we make and ensure that it all moves smooth.”

ScrawneyWallet
12/5/12 2:52 PM
June, huh? Right at the end of AARP 5%...hmmm...
Glitch99
12/5/12 6:10 PM
I understand the Shipping company is generating revenue for each cross-border shipment, but I'm still confused as to why someone would pay them to ship "the package" back and forth? It's someone else's cargo, and it's worthwhile for that someone else to keep paying these shipping costs over and over, so the article must not even be scratching the surface of the truly profitable aspect of this.

Maybe the company ended up with alot of unaccounted for inventory from illigitimate sources, and needed to quickly generate receiving records to match the volume on-hand? I get the feeling from the article that some form of smuggling (all the cars didnt actually contain the same thing each trip) wasnt likely.
speedbird71
12/5/12 6:18 PM
Glitch99 said:   

I understand the Shipping company is generating revenue for each cross-border shipment, but I'm still confused as to why someone would pay them to ship "the package" back and forth? It's someone else's cargo, and it's worthwhile for that someone else to keep paying these shipping costs over and over, so the article must not even be scratching the surface of the truly profitable aspect of this.



Some sort of tax benefit or government kickback for importing/exporting biodiesel? They are paying 2 mil to ship the stuff, so the reward has to be worth that...
Mickie3
12/6/12 5:27 AM
speedbird71 said:   

Glitch99 said:   

I understand the Shipping company is generating revenue for each cross-border shipment, but I'm still confused as to why someone would pay them to ship "the package" back and forth? It's someone else's cargo, and it's worthwhile for that someone else to keep paying these shipping costs over and over, so the article must not even be scratching the surface of the truly profitable aspect of this.



Some sort of tax benefit or government kickback for importing/exporting biodiesel? They are paying 2 mil to ship the stuff, so the reward has to be worth that...



Without those facts, where is the story? Shouldn't this be in "off topic"?
beatme
12/6/12 8:35 AM
Glitch99 said:   

Maybe the company ended up with alot of unaccounted for inventory from illigitimate sources, and needed to quickly generate receiving records to match the volume on-hand?



At first I was thinking they were exploiting a government incentive program, but I think Glitch is correct. It matches with their other issues abroad.
stiltner
12/6/12 12:10 PM
Whatever it is, its just more corruption. I'm sure it'll lead back to tax dollars wasted and lies generated and nobody
will have to take claim for it, because they're all protected while the little guy swims in the fecal pond
kickerstarter
12/6/12 1:05 PM
I haven't read into the detail but it seems like fraud to me. So it is for fraud and profit.
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