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Class I Briefs: UP, CN, NS

Hyundai Motor Group will invest $5.8 billion in a new manufacturing facility at RiverPlex MegaPark in Louisiana. Served by UP, it will be the company’s first North American steel facility to support its automotive manufacturing operations across the United States. (Map Courtesy of RiverPlex MegaPark)
Hyundai Motor Group will invest $5.8 billion in a new manufacturing facility at RiverPlex MegaPark in Louisiana. Served by UP, it will be the company’s first North American steel facility to support its automotive manufacturing operations across the United States. (Map Courtesy of RiverPlex MegaPark)
Hyundai Motor Group selects a Union Pacific (UP)-served site in Louisiana for its $5.8 billion steel manufacturing plant. Also, CN releases a Western Canadian grain report and will serve PlasCred’s planned recycling facility near Fort Saskatchewan, Alberta; and Norfolk Southern’s (NS) management team visits HOPE Atlanta.

UP

Hyundai Motor Group will invest $5.8 billion in a new Donaldsonville, La.-based manufacturing facility, Louisiana Economic Development reported March 24. Served by UP, it will be the company’s first North American steel facility to support its automotive manufacturing operations across the United States. Construction is slated to begin in third-quarter 2026.

Hyundai Steel Company (HSC), a member of Hyundai Motor Group, will build the new facility on an approximately 1,700-acre site in the RiverPlex MegaPark, which spans the edge of the Mississippi River. The project is expected to create about 4,100 indirect and 1,300-plus direct new jobs.

According to Louisiana Economic Development, HSC plans to import an estimated 3.6 million tons of iron ore annually to its new facility, produce 2.7 million metric tons of steel annually, and ship completed coils via rail and truck.

HSC is also partnering with the Port of South Louisiana to build a deep-water dock on the Westbank of Ascension Parish to accommodate steel and materials shipments, according to Louisiana Economic Development, which noted that other infrastructure upgrades, including road, rail, electric and pipelines, “will enable the full development of RiverPlex MegaPark, attracting future suppliers and customers.”

To support the project’s workforce needs, River Parishes Community College and the Louisiana Community and Technical College System will develop a new local workforce training center, which will offer hands-on skills coaches from Louisiana Economic Development’s FastStart program and modern learning spaces to provide job-specific instruction and administrative assistance. HSC will also have access to the full suite of FastStart workforce recruitment, training and sustainability services. 

“Hyundai Steel’s investment in an electric arc furnace-based integrated steel mill in the U.S. is anticipated to stimulate local economic growth, including the creation of new job opportunities,” HSC President and CEO Gang Hyun Seo said. “We plan to supply automotive steel plates not only for [HSC’s] Hyundai Motor and Kia’s strategic models but also to expand sales to U.S. automakers in the future.”

“Union Pacific welcomes Hyundai to our rail network!” the Class I railroad reported via social media. “We look forward to serving their new Louisiana plant in the coming years and congratulate everyone who helped bring this deal to life.”

“Hyundai Steel Company represents the largest single economic development project announcement in our region since the formation of BRAC in 2005,” Baton Rouge Area Chamber (BRAC) President and CEO Lori Melancon said. “Located in the RiverPlex MegaPark—established in 2015 through a partnership between Ascension Economic Development Corporation, BRAC, Louisiana Economic Development, and local landowners—this investment will create significant opportunities across the region while advancing new low-carbon projects in the energy and manufacturing sectors.”

In a related development, Hyundai Motor Group in 2022 announced an investment of $5.54 billion to open its first dedicated full electric vehicle and battery manufacturing plant in the United States.

Further Reading:

CN

CN has issued a status report on its Western Canada grain movements for week 32 (March 9-15, 2025) of the 2024-25 crop year (above).

“CN maintained its focus on operational recovery and network fluidity last week,” the Canadian Class I reported in its update. “The return to seasonal temperatures after an extended period of extreme cold has helped CN handle both outstanding traffic and ongoing strong customer orders in March. CN continues its work with customers to prioritize train movement as we work through the recovery period.”

According to the railroad, grain shipments for week 32 were up 7% from the prior week, reaching 653,000 metric tons. This surpassed both supply chain targets and the three-year average, CN noted. Through week 32 of the crop year, CN reported moving 19.7 million metric tons of western Canadian bulk grain, up 22% from the average of the prior three years, and up 12% from last year.

CN shipped 5,976 bulk hopper cars, representing more than 100% of the maximum sustainable supply chain capacity guidance of 5,350 bulk hopper cars, it reported. Additionally, the railroad said it “continued to address the backlog of traffic caused by February’s persistent cold weather.”

“CN adhered to federal train length restrictions for nearly 70% of the time from November 2024 to February 2025,” it reported. “With improved temperatures, CN staff are now focused on enhancing overall network capacity and fluidity.” It noted that as temperatures drop to -25C and lower, train length is reduced to maintain safety across the network, but this requires more resources to move the same amount of volume. CN’s winter situation report provides a snapshot of current weather conditions and restrictions across its network, it said.

Further Reading:

(Image Courtesy of CN)

Meanwhile, CN on social media gave a “#SupplyChainSalute” to PlasCred Circular Innovations Inc. (PlasCred), which on March 24 reported signing a definitive agreement for the long-term purchase and sale of renewable green condensate (condensate) to be produced at its proposed recycling facility (Neos) at CN’s Scotford Yard near Fort Saskatchewan, Alberta.

“The Neos plant will convert post-consumer plastic waste into valuable products through PlasCred’s proprietary, patent-pending process,” PlasCred reported. Under the agreement, a “global commodities company,” which it did not name, will purchase condensate at a fixed price of C$120.00 per barrel for a term of five years with a renewal option. Additionally, the global commodities company “will hold a right of first refusal” to purchase additional production at Neos and production from other plants of the company, such as Maximus, a plant projected to be co-located with Neos at the CN Scotford site PlasCred said.

The global commodities company will take custody of the condensate at PlasCred’s Neos facility and “assume responsibility for transportation and associated costs from that point onward,” according to PlasCred.

The initial Neos facility is planned to have a production capacity of approximately 500 barrels per day of condensate and to process approximately 100 metric tons of plastic waste daily, according to PlasCred. The Maximus facility will expand production, processing an estimated 400 to 2,000 metric tons of plastic waste per day.

“CN is proud to partner with PlasCred in advancing sustainable supply chains,” CN Vice President Petroleum and Chemicals Buck Rogers said. “By combining our logistics expertise with environmentally responsible initiatives, we will create innovative solutions to drive growth in the circular economy of plastics.”

“We are excited about the potential of the proposed Neos and Maximus facilities to revolutionize advanced plastic waste advanced recycling at scale,” said Troy Lupul, President and CEO of PlasCred. “This agreement reflects our vision to create a sustainable future, and the development of these facilities is a critical step toward achieving that goal.”

Further Reading:

NS

(NS Photograph)

NS’s Management Committee earlier this month volunteered with HOPE Atlanta, a nonprofit agency dedicated to ending homelessness and hunger in metro Atlanta, Ga., where the railroad is headquartered. Each year, HOPE Atlanta serves nearly 7,000 people by providing stable housing, outreach programs and case management services.

“At Norfolk Southern, we believe that businesses should be a partner in building thriving communities,” wrote Executive Vice President and Chief Operating Officer John F. Orr (left) in a March 24 LinkedIn post. Orr was part of the management team that served recently at HOPE Atlanta’s Women’s Community Kitchen. (Photograph Courtesy of John F. Orr)

NS leaders prepared and served more than 80 meals at the nonprofit agency’s Women’s Community Kitchen. Among those participating: NS President Mark R. George, Executive Vice President and Chief Operating Officer John F. Orr, and Chief Human Resources Officer Annie A. Adams.

“As leaders, we know that service goes beyond business decisions,” said Angie Kolar, NS Chief Compliance Officer and a member of HOPE Atlanta’s Board of Directors. “It’s about showing up, taking action and making a difference in the communities where we operate.”

NS is slated to be recognized this fall at the Heroes for HOPE gala for its “ongoing commitment” to the HOPE Atlanta’s mission.

In a related development, the Class I railroad recently pledged $500,000 to help expand the National Center for Civil and Human Rights.

And don’t miss NS’s Annie Adams this fall at the Railway Age/RT&S 2025 Women in Rail conference, where she will be a featured speaker. The conference, now in its third year, will be held Oct. 15-16 at the Hyatt Regency Schaumburg in Illinois.

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