Infrastructure antiquated.

Despite potentially enhanced profits, a large portion of America's exportable raw materials are sold at mine site, or Freight on Board (FOB) rail and less often FOB port of loading. This is due to lack of logistical sophistication and often to financial constraints. The cost of rail, truck, ocean freight, storage and terminal can easily exceed the cost of the product. Banks have the least experienced personnel to assist small and medium-size companies with this type of financing.

As one walks through America's crumbling infrastructure, it is no wonder our products are becoming less competitive. Although we are sitting on a 200-year supply of low sulfur in the Wyoming Basin, the cost of transporting it to other states is so excessive that we import the same product from Indonesia, Venezuela and Colombia. This is true for most exportable raw materials and agricultural products.

In the case of agricultural exports, our rail and barge system brings cargo to port at a significantly higher price than our competitors. It has only been our general proximity to export markets that has kept our products competitive. This year, Brazil will surpass the United States as the largest soybean exporter. The failure of Americans to navigate the labyrinth of export trade has led to a blossoming in profits for logistics companies, freight forwarders and third-party expeditors. Some of these companies are now providing financing or upfront payments.

Overall, the system will eventually find the right efficiencies and the inability of government to fully understand world trade may be a blessing in disguise.

L. Kravitz,

President, Paragon Lines

Westcliffe, Colo.