Richmond, Romeo & Rochester (RR&R)

[AARR]

The RR&R, MC&S and PHSC are now in the same family under RR&R.

SIT (Storage in Transit) covered hoppers and tank cars has dropped slightly but keeps the crew busy sometimes five days per week.

Certain Teed remains on target to begin production mid-2023. They are projected to receive/ship between 20-30 cars per week.

A two-track yard will be laid between 31 and 32 Mile Roads for SIT traffic. This is the location of the original Romeo siding that was removed when the small yard between M53 and Powell Road was built to service the Ford Tractor plant in 1967.

Online traffic for 2022 was 333 cars not including SIT traffic. 290-410 are forecasted for 2023 which does not include the traffic generated by Certain Teed which will add 20-30 cars per week.

SW1200RS 1514 and GP9 4428 are the primary engines used. GP38ac 1776 spends most of its time on the MC&S pulling entertainment trains where it is very popular and on the PHSC where traffic has been very heavy with propane both inbound and outbound.

If it were not for the SIT business this line would not be viable and close. With Certain Teed on the way the line would still operate in the red so the SIT traffic will continue to get great customer service.

[AARR]

PHSC was sold to LSRC leaving RR&R and MC&S. During the winter months one crew will be used to operate both lines.

[AARR]

RR&R is adding a new customer in 2023. L&L Products, located in Romeo on the north side of the yard, is building a $25 million expansion to their existing plant and adding another 65 jobs to their 525 current Team. L&L will receive chemicals for various product lines that the plant manufacturers make including bonding, foam and sealants. They are expected to receive 2-3 tank cars per week.

In other news CertainTeed is on schedule to open the 3rd quarter of 2023.

RR&R has aggressively approached Star of the West in Richmond to use the rail service to this plant. Star of the West acquired this location from Helena in 2021. The spur is still in place but has not been used since 2006 when United Agricultural Products closed. It would be a small volume customer (inbound fertilizer and outbound edible beans). Star of the West is content to truck to their Emmet, Michigan, location and use the spur there because they can ship in larger volumes (up to 25 car blocks).

RR&R continues to operate five days per week. They run to the end of the line once a week (it usually takes them two days to go there and back). The other days they switch SIT traffic and run to Richmond to interchange with CN.

[AARR]

RR&R will be adding another new customer before the end of 2023. Airboss Flexible Products, located at the very end of the line by I-75, will receive tank cars of Liquid Butyl Rubber. The piping system will be built from the plant to where the tank cars will be parked. They are anticipating receiving 7-10 cars per month.

Whenever Airboss receives cars, the cars for Peninsula Plastics will have to be moved, relocated and then spotted back at their original location, as both companies use the former mainline to receive their cars.

There is a ROW of an old spur that was located on the north side of the mainline that serviced previous companies at both buildings. The track is long gone but the ROW remains. However, there is a very steep grade to contend with along with the cost of laying new track so for now everyone is happy using the former mainline to spot the cars.

RR&R is also having discussions with Armada Grain. Armada Grain is the largest manufacturer of animal feed in Macomb County. Although their business is smaller than feed mills in the thumb and western Michigan, they receive a few commodities in enough volume to justify the cost of reopening their spur and adding a short track that will end at their dock for cotton seed unloading. In addition to the cotton seed, they would also receive tank cars of organic molasses. At this time there are no local farmers growing organic sugar beets (The sugar beet growers in the MI Thumb are not certified), so they must go outstate. They forecast a carload of each every three to four weeks.

[AARR]

CertainTeed is scheduled to open 9/1/23. A 30-car block of roofing granules are ordered along with eight tank cars of bonding agent and four cars of rubber chips. These volumes represent approximately a two-weeks supply which they must always have on hand to ensure fluid operation in case of supply chain disruption. A group of 35, 60’ hi-cube boxcars, rated at 210,000 pounds load limit tons is provided by CN. Each boxcar is expected to make one revenue trip per month.

SW1200RS 1514 and GP9 4428 will share the duties of daily switching at the plant. It will shuttle cars between the small Romeo Yard and the plant tracks. It will average switching the plant several hours per day and make a run to Richmond to exchange cars with the CN Local from Port Huron.

There are two spurs on the plant property, one on the east and west ends.
• The west end spur goes into the plant and can hold three 60’ boxcars. It is anticipated that the plant will ship five to nine outbound loads of shingles per week.
• The east end spur is for all inbound raw materials. First up is one spot where the rubber chips are unloaded (one to two cars per week). Next are the storage tanks for bonding agents (three to four cars per week). Finally, near the property line a pit was dug under the spur where roofing granules will be unloaded under a canopy and stored in a tent next to the pit (12-16 cars per week).

The Romeo Yard job will also handle Sit In Transit cars. The SIT cars are being moved to the new pair of sidings south of the current yard because it will be needed to store CertainTeed traffic. SIT cars consist of traffic for Sarnia, Ontario, and its immense Petro-chemical business.

On Saturdays a local will switch all customers south of Romeo to Auburn Hills. If it does not make it back to Romeo before dying on hours the Monday yard job will dog catch it before starting their day.

GP38ac 1776 is also available for duty but has been spending most of its time on the MC&S excursion line. It is immensely popular there so GP9 4930, normally in the MC&S rotation, will be shipped to RR&R whenever one of the other two engines needs service. 4930 is especially easy on the lighter tracks south of Romeo where weight restrictions limit just the SW1200RS. GP9 4930 is a lighter built model because it was intended for commuter service when it was built in 1958.

With the opening of CertainTeed, several new customers on the horizon, and SIT traffic, RR&R will be a profitable line. The track from a mile south of Romeo to Richmond is rated at 286,000 pounds and 25 mph. The line to the end of the line in Auburn Hills is rated at 263,000 pounds and 5 mph. As traffic and revenue grow, the south end will begin to receive upgrades.

[AARR]

The CertainTeed recycled plastic roof shingle plant is fully operational and keeps the RR&R busy. The plant is switched at least three days per week with inbound roofing granules (10-14 per week), bonding agents (three to four per week) and rubber chips (one to two per week). They also ship five to seven cars per week of finished shingles. A typical week RR&R handles 19-26 cars here.

Other promising opportunities have fizzled out. Even one (L&L Products) that a spur grade was laid out, but the customer backed out before the rail was laid. The rest of the customers looks like this:
• Romeo – Allwood Building Components: Receives one to three centerbeams a month.
• Romeo – Transload:
o Pfizer (Rochester) ships a carload of ammonia every three to four weeks
o Westlake (Shelby Twp.) receives one to two cars of plastic pellets a week.
• Romeo – Sit in Transit cars for the chemical/petrol plants in Sarnia, ON: It is common for several hundred cars on the RR&R that require switching at least three days per week. They are treated as Just in Time cars. They are given 24 hours’ notice, including weekends, to pull the cars and spotted in Richmond for CN to pick up.
• Washington – Washington Elevator/Capital Fertilizer: Receives three to six cars of fertilizer a month and when in season one to two cars of salt per week for a total of about 90 per year.
• Rochester – Acme Building Materials: Receives a carload of roof shingles every one to four months.
• Auburn Hills – Church’s Wholesale: Receives one to three centerbeams a month.
• Auburn Hills – Peninsula Plastics: Receives four to six cars a month of plastic pellets.

SW1200RS 1514 and GP9 4428 continue to handle duties. Although both are long-in-the-tooth, they perform their chores well.

GP38ac 1776 spends most of its time on the MC&S pulling passengers between Mt. Clemens and Selfridge ANG. On several occasions, when RR&R needed a third engine, MC&S GP9 4930 was sent to RR&R instead of 1776.

Traffic in Romeo pays the bills of the entire railroad. Traffic between Romeo and Auburn Hills is pure profit. However, the railroad is marginally profitable and gets by with everyone pitching in to do what is needed.

RR&R is cautiously railfan friendly. They have had problems with Rail to Trail activists trying to sabotage (including trying purposely on one occasion to derail a train) and plant evidence against the railroad in hopes that they can be given the ROW to convert into a trail. Also, an occasional rude Foamer has trespassed or tried to steal equipment from the venerable engines. Nevertheless, feel free to call or visit the office in Romeo to find out the schedule.

[AARR]

The track from Richmond Jct. (Lenon) to 31 Mile Rd. (one mile south of Romeo) for about 16 miles is rated for 286,000 lbs. cars. It was upgraded back in 2008-2010 to handle the heavier cars Ford Romeo Engine Plant required. There was enough traffic from Ford to justify the investment in heavier rail. Since then, the addition of SIT traffic has bolstered this segment. Although Ford closed, the new CertainTeed Roofing Shingle Plant has enough traffic to maintain the heavier track.

However, from 31 Mile Rd. (approximately MP 16) to the end of the line (approximately MP 32.5) is rated for 263,000 lbs. cars. The four customers on this 16.5 mile segment generate less than 200 cars annually, well short of the 100 cars per mile per year minimum level of profitability. Nor are there any prospects in this segment that will justify the cost of the heavier rail. The total carloads for the entire 32.5 mile line (Richmond to Auburn Hills) for non-SIT traffic is about 1,150-1,600 cars per year. Enough to maintain Romeo to Richmond but not Romeo to Auburn Hills. The SIT traffic adds around 750-1,000 cars annually, still not enough to cover the cost of upgrading the entire line (32.5 miles) but also vulnerable to reduction or elimination without notice (SIT traffic is controlled by the shippers but CN and CSX have invested in storage track for Sarnia’s chemical/petroleum customers, so it has become more price sensitive).

Three of the four customers between Romeo and Auburn Hills are willing to invest partially in upgrading the track but well short of the actual dollars it will take. The shortfall will have to be made up by RR&R and without additional traffic there isn’t enough carloads for them to invest.

A loan, even a low-interest one, is out of the question because, again, of insufficient traffic. However, both President Biden and Governor Whitmore are pro-railroad because they leave a smaller carbon footprint than trucks. A typical rail car carries the same traffic as four trucks. The four customers on the line have spurs that allow them to avoid truck traffic which not only helps the environment but also wear and tear on the roads. Even though it would be a poor investment, the current administrations doesn’t care about that because they are only concerned about pushing their environmental agenda. So, RR&R will apply for both Federal and State Grants to pay for the upgrade. Fortunately, there is minimal bridge work involved so the total cost to upgrade from 263,000 lbs to 286,000 lbs is around 5 million dollars.

Also, RR&R will investigate what to do with GP9 4428. It is a perfect fit for the RR&R spending most of its time taking interchange traffic between Romeo and Richmond three to five times per week. However, it hasn’t had major work done in 25 years and is overdue. SW1200RS 1514 was also rebuilt 25 years ago and after the GP9 is completed its future will be determined too. It is a perfect unit to handle the weekly Romeo to Auburn Hills Turn and switching the CertainTeed plant three times per week.

[AARR]

There are several updates to report on.

Business continues to be strong with the new CertainTeed recycled plastic roofing plant in Romeo. They steadily handle 19-26 cars per week and are switched three times per week.

The five other customers between Romeo and Auburn Hills only generate three to five cars a week. Once a week RR&R services these customers.

RR&R’s transload has dried up. One customer went back to trucks and the other went to another transload site with better pricing. CN is RR&R’s only connection and they charge higher prices than CSX and NS. As the economy is becoming more uncertain companies are cost cutting and seeking lower price options.

Also, RR&R’s SIT traffic has dried up and ended. CN opened a huge SIT Yard in Sarnia (closer to the customers who use the cars) and the traffic that was using RR&R shifted over there. However, RR&R is making the best use of their ex-SIT Yard using it as railcar storage as the economy is flattening.

Berry Global, an international plastic packaging manufacturer, is looking at the old Letica pail production plant land (off Hamlin Road in Rochester Hills) to build a new state of the art auto parts plant. Normally they would not have looked in this area but with Michigan’s economy lagging due to green energy initiatives not taking off like promised major incentives were promised to Berry. This could be the boost that RR&R is looking for to upgrade the track south of Romeo and keep the line open.

RR&R wants to contract with Cincinnati Scenic Railway to rebuild its venerable GP9 4428. However, part of the deal to land Berry Global may include trading it in for a greener friendly locomotive (paid for by the state of MI).

[chapmaja]

To bad the RR&R wasn't able to get the tracks all the way into Pontiac and instead stops east of I-75. With CN selling the line to the Pontiac and Lake Orion, that would have been a nice little connection between the RR&R and P&LO.

[AARR]

Good point!

I have thought about keeping the entire Romeo Sub intact from Pontiac to Richmond, but I am trying to stay true to realistic situations and I just can't see how it would have been economical to rebuild the bridge over I75 when there were connections at both ends of the line. The reason the line is disconnected by I75 is because I75 was being widened and there were CN connections on both sides (Richmond and Pontiac). However, with Ford Romeo Engine not interested in using rail, CN was eager to rid itself of the entire line.

To bad the RR&R wasn't able to get the tracks all the way into Pontiac and instead stops east of I-75. With CN selling the line to the Pontiac and Lake Orion, that would have been a nice little connection between the RR&R and P&LO.

[AARR]

Richmond Romeo and Rochester GP9 4428 is at Cincinnati Scenic Railway for rebuilding. It will retain its outside appearance (including its high nose). However, the electrical, engine, etc. will be completely rebuilt. It is expected to be back by the end of October 2024.

In the meantime, GP38ac 1776 holds down the three times per week Romeo to Richmond Turn. SW1200RS 1514 works the weekly Romeo to Auburn Hills Turn.

When 4428 returns, 1514 will be sent out for a full rebuild. A company has not been chosen yet.

The CertainTeed Roofing Shingle Plant has reduced rail shipments due to demand for their product is below forecasted production. They continue to receive roofing granules (9-12 per week), adhesives (four to six per week) and ship out finished product (one to two per week). However, they changed their rubber chip vendor who trucks everything in so that is no longer shipped in by rail. The plant still does 15-20 cars per week of business and keeps the line from Romeo to Richmond marginally viable.

Berry Global is moving forward building a new plant in Rochester along Hamlin Road (site of the old Letica Plastic Pail Plant). The ground is broken, and they anticipate beginning operations in the last quarter of 2025. This will be a big boost for RR&R on its segment from Romeo to Auburn Hills which currently sees three to five cars per week and operates at a loss.

The track from Richmond to Romeo (approximately 16 miles) is in good condition and rated for 286,000 pounds and 25 miles per hour (trains usually run at 10-15 mph because of the numerous crossings without signals). The track from Romeo to Auburn Hills (approximately 16.5 miles) is in fair condition but only rated for 263,000 lbs and five mph. It is difficult to compete with trucks unless the heavier cars are allowed to operate over this segment. The rail will be upgraded to at least the BG plant (milepost 28.5) leaving 3.2 miles and three customers on the lower rated track without the financing to upgrade. Two of these three customers are willing to assist to pay for the upgrade, but they are small customers (one to three cars and four to six care per month) so they will not contribute much. The last customer, who will not contribute financing to the upgrade, only gets a carload every two to three months. RR&R is looking into its options.

RR&R has not done well with its transload business. It did fantastic with its Sit in Traffic business but that dried up when Canadian National and CSX opened their own SIT yards in Sarnia. So, RR&R is talking to the owners at Hamilton Hartford Group who have done a phenomenal job developing sustainable transload business on its three West Michigan lines. RR&R has a small, underutilized four track yard by Powell Road (used to stage cars for CertainTeed and cars for Romeo to Auburn Hills) and a two track yard (formerly used for SIT traffic) between 32 and 31 Mile Roads. With CN becoming more aggressive in getting carload traffic from its Michigan lines the time may be right to get better utilization of RR&R’s Romeo yards.

It has been several years since RR&R walked away from its litigation with CN to get trackage rights from Richmond to Port Huron and interchange directly with CSX. Even though RR&R had a valid case, it did not have the finances for a long, drawn out process and CN seemed determined to fight to the bitter end. So, RR&R dropped the case. However, attitudes at CN seemed to have changed and RR&R is going to bring it up again. The back-story is when RR&R opened in 1999, CN gave them the trackage rights, but RR&R didn’t exercise it. A large stone contract that would have generated 3,500 cars annually between CSX and RR&R fell through so RR&R didn’t take advantage of it at the time thinking they could pick it up anytime later. In 2022 they tried (again for stone traffic) and CN rigidly said no and would fight to the end to prevent it.

RR&R (and Mt. Clemens & Selfridge) are on lean times but have promising opportunities.