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Rail News: Rail Industry Trends

New ethanol facilities to build up Iowa short lines' traffic


Archer Daniels Midland Co. (ADM) recently announced plans to build an ethanol plant in Cedar Rapids, Iowa, adjacent to its corn processing facility — good news for Iowa Interstate Railroad Ltd. (IAIS), which serves the plant.

After the 275-gallon-capacity dry corn milling facility is completed in second-half 2008, the 550-mile regional expects to move ethanol east to Chicago and west to Rock Island, Ill. In addition, the plant might spur grain traffic into Cedar Rapids, IAIS said.

ADM also will build an ethanol plant in Columbus, Neb.

Meanwhile, Manly Terminal L.L.C. plans to construct an ethanol and multi-product truck and rail reload facility in Manly, Iowa. Designed to handle more than 20 million gallons of liquid products, the 100-acre facility will be served by Iowa Northern Railway Co. and LB Transport\MinnIowa Distributing Co.’s trucking arm.

The project will enable Manly Terminal to provide the first common delivery point for ethanol trading and truck and rail distribution throughout North America, the company said.