Washington (Platts)--13Jun2008

With the recent floods across the Midwest showing no signs of abating,
western railroads BNSF Railway and Union Pacific are warning of coal traffic
delays that could last for another month or more on some routes.

"Flooding is affecting velocity of both loaded and empty trains as
railroads, including BNSF, are routing trains around areas affected by
flooding in the upper Mississippi Valley," BNSF spokesman Pat Hiatte said.

He added that rising waters in the Mississippi Valley may pose challenges
for railroad traffic for the next 45 to 60 days "if typical seasonal flooding
patterns persist."

Union Pacific spokesman Mark Davis said that about a third of the
railroad's coal loads go across Iowa. Those shipments have been slowed down by
the floods since last weekend, he added.

In its latest update, BNSF said river levels have risen in parts of Iowa,
Missouri, Kansas and Nebraska.

Union Pacific's coal train traffic has been delayed as a result of
significant rains and flooding in Minnesota, Iowa, Illinois, Nebraska,
Missouri, Wisconsin and Kansas.

Other railroads are also facing a battle with the floods. Norfolk
Southern and CSX are reporting delays in interchange traffic, including coal
shipments they receive from western railroads at interchange points such as
Kansas City, Missouri.

--Marcin Skomial, Marcin_skomial@platts.com