On Friday, Cargill announced plans to add a rail loop at its grain elevator in Tuscola, Ill., to gain access to CSX Transportation.
The elevator already is served by CN and Union Pacific Railroad. Accessing CSXT will help expand the market for local farmers' corn and soybeans to additional eastern livestock markets, Cargill's soybean processing plants in the Southeast and Gulf export markets, said Doug Childers, farm service group leader for Cargill AgHorizon's Central Illinois region, in a prepared statement.
"Our draw area for grain is from the five surrounding counties, which are some of the top producers of corn and soybeans in the country," he said.
The $6.4 million rail loop is slated for completion in spring 2013. The loop, which is designed to accommodate 110-car unit grain trains, will be built around the perimeter of 200 acres at the Tuscola site.
"Unit trains are an efficient way to move large volumes of corn and soybeans," said Todd Wiessing, Cargill's project leader. "This helps our competitiveness in bidding local grain, giving us year-round access to the eastern and Gulf markets."
Cargill has operated the grain business in Tuscola since 1969. The elevator can store 7.5 million bushels of grain, while another 4 million bushels can be stored on temporary ground piles.
Browse articles on Cargill on Progressive Railroading