INE question

[Marylee]

I believe Notch8 has access to this facility. Following the third expansion in three years at Martinrea in Jonesville, the inbound coil semi's are lined up around the clock to unload here. With the INE mainline adjacent to the property (and former FW&J) is it about time to get some rail service inbound to this increasing large stamping plant? I believe most scrap goes to Omnisource next door which is railserved.

[AARR]

I believe Notch8 has access to this facility. Following the third expansion in three years at Martinrea in Jonesville, the inbound coil semi's are lined up around the clock to unload here. With the INE mainline adjacent to the property (and former FW&J) is it about time to get some rail service inbound to this increasing large stamping plant? I believe most scrap goes to Omnisource next door which is railserved.

I have heard there are discussions to develop rail service here. One thing you can be sure of is if its viable IN will get it done

[berkmeister]

Isn't this the facility that received a very large stamping press recently off the INER? I would like to think with all that steel coil coming in, it would be cheaper to bring in that steel on coil cars. I'm sure INER will try to solicit new business from Martinrea if at all possible. I consider the INER to be a "heavy duty" type of shortline! In fact, i believe there is another very large press coming to this facility via the INER, there you go! Here in Goshen, IN. there is an auto stamping facilty called Benteler in the Goshen Industrial Park that brings in steel coils on flatbed semi-trucks. They're lined up out in the street numerous times waiting to unload. Just a 100' or so to the west is Norfolk Souhtern's Marion District. I think it would be easy to construct a spur to this factory, but so far that doesn't seem to be going to happen. Only Berry Plastics uses rail in the Park, four other facilties there have spurs, but haven't used rail service in several years. Berk

[AARR]

Isn't this the facility that received a very large stamping press recently off the INER? I would like to think with all that steel coil coming in, it would be cheaper to bring in that steel on coil cars. I'm sure INER will try to solicit new business from Martinrea if at all possible.

There are a few factors involved, I have learned, whether rail is advantagous over trucks. Volume of course is one. Another one is distance. A third is number of railroads involved. I am told if more than three are involved it makes many traffic lanes not profitable enough. There are other factors such as price of fuel, taxes, etc. Keep in mind if the steel is moving from a company in MI the 70 ton truck load limit reduces railroads effeciency.

[Notch 8]

I believe most scrap goes to Omnisource next door which is railserved.

The scrap from the Martinrea Plant goes elsewhere I think Alma Iron & Metal but it does not go next door to Omnisource.There has been talk and meetings about recieving steel via rail and several problems come to light and if the economics were in favor I think this would have happened.
Problem 1 is I think the distance might come into play. too short. But I do have a customer in Garrett IN that gets steel from Gary IN just over a 100 mile trip. Albeit it is all on CSX trackage, Too many RR's might have to get involved and kills the economics of the rail advantage. However if the traffic orginates on NS this could be good because NS has a marketing dept that could help make this happen. I think NS would have to play as big as role as the INER in this matter. Dealing with the RR can be a pain in the a%$ about getting cars on time and then the demurrage factor. My customer that deals with CSX does not have good things to say about CSX. CSX wanted the customer to provide a more level walk surface so when the crew detrains to switch out cars they don't stumble.. We are talking Garrett IN a former swamp, terrain is level in this area.. and then the demurrage charges, the customers complaint with that is the RR can show up days late with a car and nothing is said.. However is the customer is 1 day late unloading a car Too Bad you get charged..

Another problem with rail cars at Martinrea is the steel recieving bay is on the NW corner of the building and to get to that part of the building the INER would almost have to come off the main near the crossing at M-99. difficult but possible. Martinrea just added another 150' to the north side of the building that was just compleed 1 year ago and has set up 1)3000 ton press in the new addition with others coming. This place

This place generates massive amounts of scrap and some of this product is a rather thick gauge of steel. the convey system is impressive that gets the scrap out of the plant. You could fit a pickup truck into the conveyor that runs under the floor and it would make it outside in the rolloffs. The scrap company is always there switching rolloffs or waiting for the next full one..

Could be a good account for INER, $5.00 diesel fuel could accelerate such a happening...

On a side note I noticed the MSO hauling a load of logs on bulkhead car outbound from Sturgis MI

[Marylee]

I have seen several Alma Iron and Metal trucks at Omnisource in Jonesville going into and out of the scrapyard. Maybe Alma is a subsidiary or affiliate? If it is not taken to Butler by rail or truck, the guys at Omnisource/Mid-Star/Jackson Iron&Metal/Jonesville Iron&Metal/ Risk Iron&Metal (I guess I am getting old), have said it is trucked to Mac Steel in Jackson.

[AARR]

I have seen several Alma Iron and Metal trucks at Omnisource in Jonesville going into and out of the scrapyard. Maybe Alma is a subsidiary or affiliate? If it is not taken to Butler by rail or truck, the guys at Omnisource/Mid-Star/Jackson Iron&Metal/Jonesville Iron&Metal/ Risk Iron&Metal (I guess I am getting old), have said it is trucked to Mac Steel in Jackson.

IIRC Alma I & M was acquired a year or so ago by someone. I thought it was Padnos but maybe it was OmniSource

[Raildudes dad]

I have seen several Alma Iron and Metal trucks at Omnisource in Jonesville going into and out of the scrapyard. Maybe Alma is a subsidiary or affiliate? If it is not taken to Butler by rail or truck, the guys at Omnisource/Mid-Star/Jackson Iron&Metal/Jonesville Iron&Metal/ Risk Iron&Metal (I guess I am getting old), have said it is trucked to Mac Steel in Jackson.

IIRC Alma I & M was acquired a year or so ago by someone. I thought it was Padnos but maybe it was OmniSource

Padnos

[Marylee]

I googled and Alma is on the Padnos Iron and Metal website as their Central Michigan Facility. I guess all I can verify then is that daily Alma Iron and Metal trucks (atleast two different trucks) go into and out of Omnisource in Jonesville. Maybe Padnos has the Martinrea contract and dumps at Omnisource versus hauling to their own facility up north or maybe Omnisource just bought trucks that Alma sold and didn't re-letter them. But I doubt that as Omnisource and Steel Dynamics have been pumping a lot of money into the Jonesville ops with a building addition, new excavators, a new computer system (that the local employees hate), new paving on both ends of the scale and down to the pig iron pit, and fancy new signs on their gates.