Short lines prove they’re long on industrial development
When Southeast Aggregates searched high and low for a distribution facility site in Georgia earlier this year, a city offering long-term business growth potential was priority No. 1. A close second? Rail access.
The company, which operates an aggregate distribution facility in Metter, Ga., found both in Statesboro. The city is a hotbed of aggregates demand and the site is adjacent to Georgia Midland Railroad’s (GMR) line.
On Sept. 1, Southeast Aggregates opened the distribution facility, which features track with unloading capacity for 15 cars.
Owner and Manager Jerry Brown believes the location “would not have been logical without the GMR available to serve our material transportation needs by rail,” according to a posting on GMR owner Atlantic Western Transportation Inc.’s Web site.
When it comes to industrial development, short lines are doing a better job of convincing shippers they can be the rail provider of choice for a new plant. How? By being a “we’re there when you need us” transportation provider.
I often hear short-line operators say they can provide more “personalized” service than a Class I. Need cars once or up to seven days a week? You got ‘em, the operators say.
But they’re not just talking the talk. Although short lines might not have a Class I’s long-haul reach or marketing power, they know how to sell — and excel at — their niche as a local service provider. Especially in the already ripe ethanol/biodiesel market.
Witness Atlantic Western’s other short line, the Heart of Georgia Railroad (HOG). Alterra Bioenergy Resources Corp. is building a plant in Plains, Ga., on HOG’s line that will produce biodiesel from crude soybean, peanut and other oils.
To open in November, the 30 million-gallon capacity facility is located in the Heart — make that heart — of Georgia’s soybean, peanut and cotton crops. But the short line’s ability to move thousands of carloads of inbound raw materials and outbound biodiesel to and from the plant when needed certainly had Alterra Bioenergy officials going, well, HOG-wild for the site, as well.
The company, which operates an aggregate distribution facility in Metter, Ga., found both in Statesboro. The city is a hotbed of aggregates demand and the site is adjacent to Georgia Midland Railroad’s (GMR) line.
On Sept. 1, Southeast Aggregates opened the distribution facility, which features track with unloading capacity for 15 cars.
Owner and Manager Jerry Brown believes the location “would not have been logical without the GMR available to serve our material transportation needs by rail,” according to a posting on GMR owner Atlantic Western Transportation Inc.’s Web site.
When it comes to industrial development, short lines are doing a better job of convincing shippers they can be the rail provider of choice for a new plant. How? By being a “we’re there when you need us” transportation provider.
I often hear short-line operators say they can provide more “personalized” service than a Class I. Need cars once or up to seven days a week? You got ‘em, the operators say.
But they’re not just talking the talk. Although short lines might not have a Class I’s long-haul reach or marketing power, they know how to sell — and excel at — their niche as a local service provider. Especially in the already ripe ethanol/biodiesel market.
Witness Atlantic Western’s other short line, the Heart of Georgia Railroad (HOG). Alterra Bioenergy Resources Corp. is building a plant in Plains, Ga., on HOG’s line that will produce biodiesel from crude soybean, peanut and other oils.
To open in November, the 30 million-gallon capacity facility is located in the Heart — make that heart — of Georgia’s soybean, peanut and cotton crops. But the short line’s ability to move thousands of carloads of inbound raw materials and outbound biodiesel to and from the plant when needed certainly had Alterra Bioenergy officials going, well, HOG-wild for the site, as well.
Posted by: 
Jeff Stagl | Date posted: 9/19/2007
