Why did a Train Carrying Biofuel Cross the Border 24 Times and Never Unload?

[arikara]

A cargo train filled with biofuels crossed the border between the US and Canada 24 times between the 15th of June and the 28th of June 2010; not once did it unload its cargo, yet it still earned millions of dollars. CBC News of Canada was the first to pick up on this story on the 3rd of December 2012, and began their own investigation into the possible explanations behind this odd behaviour.

CN Rail, the operator of the train, stated their innocence in the matter as they had only “received shipping directions from the customer, which, under law, it has an obligation to meet. CN discharged its obligations with respect to those movements in strict compliance with its obligations as a common carrier, and was compensated accordingly.” Even so, they still managed to earn C$2.6 million in shipping fees.

During their investigation CBC managed to obtain an internal email which stated that the cars of the train were all reconfigured between each trip but that the cargo was never actually unloaded, because “each move per car across the border is revenue generated”, the sale of the cargo itself was inconsequential.

more...

http://oilprice.com/Latest-Energy-News/World-News/Why-did-a-Train-Carrying-Biofuel-Cross-the-Border-24-Times-and-Never-Unload.html

skullduggery.

CBC story here:

Biofuel credits behind mystery cross-border train shipments
http://www.cbc.ca/news/canada/story/2012/12/19/mystery-biodiesel-train-credits.html

[arikara]

1. Sorry for the cross posting

I thought I'd read it somewhere else but it turns out it was here on DU yesterday. Sigh... long day.

[snappyturtle]

2. Au contraire! I SAW it yesterday but didn't have time then to read it....now I just did. Thanks!

[Historic NY]

3. Sure sounds like they were perpetrating a scheme to defraud.

[Wellstone ruled]

4. This crap still happens when it comes

carloads of lumber.

[Peregrine]

5. Sounds like the old Enron scam

If you have price ceilings in your country, export the product at a higher price, buy it back at an even higher price, export at a higher price ...

[JohnnyRingo]

6. They charge by the mile?

I'm kidding (I think), but there has to be a scam here somewhere.

[TreasonousBastard]

7. It may be legal, but it shouldn't be...

selling cargo while enroute is extremely common, and a tanker commonly has its cargo change hands many times from the oil field or refinery to the port. The common reason would be if the price changes enough to make it worthwhile, but subsidiaries, taxes, etc are also part of the reason. This, though, is obviously a scam, but it seems to be exploiting a loophole.

The railroad isn't doing anything illegal, now, not even conspiring with them. But, they're not stupid and they know exactly what's going on as they whistle innocently on the way to the bank.

[djmano88]

8. hi

I thought I'd read it somewhere else but it turns out it was here on DU yesterday. Sigh... long day.