The Ohio Rail Development Commission approved grants for three projects throughout the state.
Edon Farmers Co-Op
A $375,000 grant was approved for Indiana Northeastern Railroad (INE) to extend an existing siding near the Edon Farmers Co-Op in Edon, Ohio. The project will increase the rail car capacity on the siding from 60 cars to 110 cars.
Edon Farmers Co-Op is a unit train grain shipper from its Edon elevator. The co-op ships out approximately 700 carloads of grain per year and interchanges with Norfolk Southern (NS). NS is planning to adjust grain shipping rates to favor unit train sizes of 105 cars or more, rendering the smaller 85-car shipments non-competitive.
The increase in minimum train size means loads will exceed the existing sidetrack capacity, effectively blocking INE from continuing service to its customers along the western portion of the line. The siding expansion will allow for the room needed to accommodate increased traffic demands and preserve service efficiency and satisfaction for the railroad's customers.
"The new siding will ensure service to the Edon Farmers Co-Op while allowing the railroad to effectively serve existing customers and create an opportunity to attract new customers along the line. We are happy to support Indiana Northeastern in this effort," said Matthew Dietrich, executive director, Ohio Rail Development Commission.
"Edon Farmers Co-Op has been a long-valued customer for our railroad, and we are pleased to work with the state of Ohio to increase capacity, safety and accessibility for them as well as future rail customers," said Andrew Hershman, marketing and sales, Indiana Northeastern Railroad. "The investment will increase our ability to provide competitive, reliable service in an ever-changing transportation industry."
Kalmbach Feeds
A $300,000 grant was awarded to Kalmbach Feeds Inc. to install a new rail spur at its feed mill near Upper Sandusky, Ohio. The new spur will directly serve the feed mill and a new pet foods facility. This project is estimated at more than $125 million.
Kalmbach Feeds is a family-owned Ohio company founded in 1963 in Upper Sandusky. The company currently has operations in four states. Kalmbach Feeds produces a variety of animal feeds and nutrition for livestock such as horses, cows and chickens.
The company is planning to expand its product line to include pet foods for dogs and cats. The new facility, however, must be separated physically from other aspects of the operation in Upper Sandusky due to the significantly different regulatory structure for feed operations as compared to pet food operations. Kalmbach plans to locate the new pet foods plant on a parcel at their northernmost facility, the MPK Feeds Plant.
Raw materials will be shipped to the facility via rail to the newly constructed Rail Receiving and Transload facility, and then transloaded to the new pet foods facility where the materials will be processed, packaged and shipped to customers via truck. Upon completion of this project, Kalmbach Feeds will commit to hiring 213 new employees, retaining 509 existing employees and ship/receive 400 new rail cars per year at their Upper Sandusky-area operations.
"We are happy to partner with Kalmbach Feeds and support them in this endeavor. The new siding will improve the company's operations and allow for their continued growth in Ohio," said Matthew Dietrich, executive director, Ohio Rail Development Commission.
"We're grateful for our partnership with the Ohio Rail Development Commission in bringing this new industrial rail siding project to fruition," said Paul Kalmbach Jr., Kalmbach Feeds Inc. president. "This rail infrastructure upgrade significantly improves our ability to receive high-quality ingredients, enabling us to produce the premium feeds our customers expect with greater speed and reliability."
Ohio Central Railroad
Ohio Central Railroad (OHCR) received a grant in the amount of $1,055,817 to replace 19,200 linear ft. of 90-lb. jointed rail with 115RE continuous-welded rail, upgrade a turnout in Beach City, Ohio, and rehabilitate three grade crossing surfaces. The total project is estimated at $2.1 million.
OHCR is a Class 3 railroad operating over approximately 74 mi. of track between Zanesville, Ohio, and Brewster, Ohio. The route primarily handles interchange traffic between Wheeling & Lake Erie Railway at Brewster and the Ohio Central System railroads.
Commodities include aggregate trains from National Lime and Stone from Brewster to Coshocton, Ohio, along with general manifest traffic. Interchange traffic between OHCR and Wheeling and Lake Erie Railway has increased dramatically since 2019. Possible re-routing of traffic through the Brewster gateway has the potential to increase this volume even more in the future.
The proposed project is the final phase of a multi-year project to upgrade 90-lb. jointed rail between Brewster and Beach City to 115RE continuously welded rail. The rail being replaced is substandard weight for 286,000-lb. rail traffic and the light rail weight, combined with shorter 4-hole joint bars, results in increased rail flaw fatigue defects and broken rails. This rail was rolled between 1925 and 1941, so it is beyond its useful service life.
"This project is an important component of the railroad's overall plan to maintain safety of operations and ensure continued service for their customers who expect it," said Matthew Dietrich, executive director, Ohio Rail Development Commission.
"The Ohio Central Railroad Rail Replacement project has been a priority for some time and without the partnership with ORDC, the project would have been delayed further, preventing the true benefits to the railroad and rail freight shippers," said Charles Hunter, AVP Government Affairs of Genesee and Wyoming Railroad Services Inc. "The new rail will be of heavier manufacture weight and of higher quality to better support the heavier railcars used in modern day rail freight service."
