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Buisness Operations

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Cars were built to operate on the same kind of fuel, but now advanced technology has allowed gas stations are offering alternative fuels including ethanol, an alcohol fuel distilled from corn and sugar plant materials (Sclar, Auto Repair For Dummies). If I were to open an ethanol refinery in California, I would open one in Stockton, California. I chose this city because it is located in California’s Central valley, which is large, flat, and has productive agriculture. Because Stockton is a rural city, the ethanol industry can jump-start it by adding many jobs. Stockton is along major freeways, such as Interstate 5 and State Route 99. It is also south of the state’s capital, Sacramento, and connected westward to San Francisco. Since corn is the primary source for Ethanol and is primarily grown in the states of Kansas, Iowa, Indiana, Nebraska, and Minnesota, I would definitely access raw materials through Nebraska because it is the closest primary corn producing state to California and their California is the largest market state for Nebraska corn (Nebraska Corn Board). Corn growers rely upon dependable and cost-effective transportation. Even though major freeways surround Stockton, the distance between Nebraska and California is about 1,430 miles away from each other, which has a negative cost advantage for transportation of corn with trucks because their functions are primarily based on shorter distances. Instead, railroads have better cost advantages because they operate to move longer distances and more raw materials than trucks. An example of an ideal railroad to transport corn from Nebraska to Stockton, California is Union Pacific, which covers “23 states in the western two-thirds of the United States” (UP). Because ethanol reduces the need for high-octane, petroleum-based gasoline components, and expensive imports, it saves consumers money at the gas pump.

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