Last evening, I had a chance to talk at length, with Terry Nanti, General Manager, Pellet Plant, Magnetation Inc. This was at a public forum introducing Magnetation Inc. to area residents. It was enlightening, to say the least.
The site in Reynolds was chosen, because of its access to rail, with rail infrastructure, already on the site. There will be some reconfiguration of existing on-site trackage.
Almost all incoming materials (Iron concentrate, Limestone, Bentonite clay, used in the manufacture of the end product (Round Iron pellets about the size of a marble) will be brought in by rail. If they can get it all in by rail, so much the better. They're not in favor of using trucks, unless they absolutely have to.
CSX will get ALL the business. They made the company a very attractive offer on rates. TP&W's offer wasn't even close Hence, the decision to use CSX for ALL inbound and outbound train movements. For the time being, there will be no direct connection between the plant site and the TP&W line. There could be a future direct connection installed, for inbound Limestone, IF TP&W would offer an attractive rate. The feeling is that TP&W just isn't interested.
This plant will operate 24/7, 330 days a year, Expect to see one 11,000 ton inbound unit train and an equivalent outbound unit train on a DAILY basis (that's seven days a week, folks). In addition, there will be inbound loads of Limestone and Bentonite clay.
This is GREAT business for CSX. The old Monon is fixin' to get a lot busier, when this plant goes into full production, sometime in 2014.
Bob Callahan
Monticello, IN