UP
Ag Processing Inc. (AGP) late last month held a ribbon-cutting ceremony to open its 11th soybean processing and degumming facility, which will support 80 full-time employees. Located in David City, Neb., the facility is scheduled to begin commercial operations later this month, according to the Omaha-based agribusiness, which serves primarily as a U.S. soybean processor/refiner producing and marketing soybean meal, refined soybean oil, and biodiesel. Once fully operational, the facility is expected to be capable of processing more than 50 million bushels of soybeans annually and producing nearly 700 million pounds of degummed oil per year.
“The site encompasses approximately 273 acres with 2.5 miles of paved roads and approaching 13.6 miles of rail tracks providing access to two Class I railroads [Union Pacific and BNSF],” said Lou Rickers, Chief Operations Officer of AGP. “With the amount of rail track on site, AGP will load a unit train of 110 cars every three to four days. We will be able to hold a loaded unit train, receive an empty unit train, and continue to build a third unit train of soybean meal. Also encompassed within the total miles of rail, the site will be able to load and build 110 car unit trains of oil. The degumming plant will be able to load that train in just two days, as long as the cars are available on site. I want to thank AGP’s team and our business partners for building a facility with speed and space to match any customer’s needs.”
“We proudly joined AGP to celebrate the grand opening of its newest soybean processing and degumming facility in David City, Neb.,” UP reported via social media on Aug. 5. “In partnership with [Rio Grande Pacific’s] Nebraska Central Railroad Company, we’re excited to support operations at this state-of-the-art facility.”
Nebraska Central Railroad Company is a 340-mile network comprising five former UP branch lines and one former BNSF branch line (see map above). Trackage includes rights to approximately 60 miles of UP main line between Grand Island, Neb., and Columbus, Neb. The railroad, through its interchanges with UP (Columbus, Central City, and Grand Island) and BNSF (David City), is an integral part of grain shipments in the region. It serves nearly a dozen unit loading facilities and can handle more than 250 unit trains annually in conjunction with its Class I partners.
“As a cooperative, AGP’s mission is to add value to our members’ soybeans by processing the beans into meal and oil, selling those products in the open market, and returning the earnings to our local owners,” AGP Board Chairman Dean Thernes said. “With so many of our existing members in this area, the David City location is not only a great fit with our mission to serve the cooperative system, but it is also a perfect addition to AGP’s existing midwestern processing platform and, we strongly believe, it will improve our ability to compete in the domestic and international markets.”
“We have a network of members who can supply us soybeans to process,” AGP CEO Chris Schaffer added. “We have marketing and logistics systems in place to sell and deliver the soybean meal to domestic and foreign customers. We have the speed, space, and relations to get our soybean oil to both our food and fuel customers. And we have an experienced and dedicated team to run it all.”
Further Reading:
- STB Receives Notice of Intent for Proposed UP-NS Merger
- Union Pacific + Norfolk Southern: It’s Official
- Amtrak, Union Pacific Settle Sunset Limited Dispute
- UP’s Denver, Colo., Equipment Shop Rebuilds 100th Tamper
CSX
CSX on Aug. 5 reported presenting the Madisonville-Hopkins County Economic Development Corporation (MHCEDC) with a commemorative rail spike, celebrating Madisonville Industrial Park II as Kentucky’s first Silver Level CSX Select Site. This recognition, it noted, “highlights the site’s strong infrastructure, direct rail access, and readiness for industrial growth.”
Sites that earn CSX Select Site designation, the railroad said, “meet stringent criteria for infrastructure, site preparedness, and streamlined regulatory compliance, ensuring they are ready for immediate development.”
“We’re grateful to CSX and our local partners who contributed to this effort,” MHCEDC said. “This designation highlights Madisonville’s position as a competitive location for advanced manufacturing and logistics investment.”
According to CSX, Canadian-based plastics packaging producer E. Hofmann Plastics recently broke ground on a build-ready site adjacent to the CSX main line in Hopkins County—an investment of $43 million that will create 164 new jobs and a 100,000-square-foot plant by 2026.
“This represents E. Hofmann Plastics’ first facility investment in the United States,” said Jody Lassiter, Manager of Industrial Development for CSX. “CSX is excited to serve as the rail partner supporting their growth and success.”
CSX in April announced the latest group of properties to receive CSX Select Site designation. Eighteen sites across 12 states earned a Gold, Silver or Bronze rating based on an evaluation of a wide range of site characteristics.
For more on CSX Select Sites, read: Diageo North America Establishes Beverage Distribution Plant at CSX Select Site, Rickenbacker South Industrial Rail Park Receives CSX Select Site Platinum Designation, CSX Adds Eight Rail-Served Properties to ‘Select Site’ Program, and CSX Launches Select Site Online Property Search Tool.
