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Post Info TOPIC: More signs of harder times


Unstable & Irrational

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More signs of harder times
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Yesterday, they gathered a train of just coil steel cars and shipped them to S Jersey for storage. 

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Upgraded Condition?

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Hancock siding was filled up about a month ago with coil steel cars and mill gondolas. In the paper round here, Bay Liner is completely shutting down, and the Paper Mill is gonna start laying off.
Coal is going nuts...We run more in one day than we used to in a WEEK!!
Hope it don't dry up after the first of the year...A big portion is getting loaded on ships and sailing away to foreign countries.
We have 2 new tipples going on line soon up on the S&C Branch. Supposed ta be able ta load as many trains as Bailey Mine out on the old Monongahela..(shared assets).
Now that we have those new ES44AH's with DP, I guess its only a matter of time before we don't have ta stop for Helpers in Brunswick anymore..  

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Force Majeure

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Export coal just fell out of bed middle of the week due to the credit squeeze.

Stay tuned.



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Published November 15 2008

Midwest Energy expects record coal shipments

By: Peter Passi , Duluth News Tribune

Midwest Energy Resources Co., operator of the largest coal terminal on the Great Lakes, loaded 17.9 million tons of coal onto lakers at its facility in Superior during the first 10 months of 2008. Thats 9.1 percent more coal than Midwest put on the water during the same period last year.

Midwest President Fred Shusterich expects the facility to top 23 million tons in coal shipments this season, blowing by its previous record of 21.8 million tons, set in 2006.

If things hold, this should be a good year for us, he said.

I hate to see taconite shipments taking a beating because of the slowdown in the steel industry, but the truth is, it should help us stay active, said Shusterich, explaining that when theres less competition for vessels, its easier for Midwest to move coal to market.

Midwest Energy Resources Co. is a wholly owned subsidiary of the Detroit Edison Co. It receives low-sulfur western coal via BNSF Railway and loads it onto ships that deliver it downlake to power plants and industrial customers.

Being part of a utility, MERC seems to enjoy a fairly steady stream of business, said Adele Yorde, public relations manager for the Duluth Seaway Port Authority. She referred to Midwests growth as encouraging, especially in light of decreased shipments of iron ore pellets and aggregate construction materials since the recent economic downturn.

Yorde expressed optimism that Midwests business will hold strong through the end of the year, despite an uneven economy.

With winter weather setting in, I wouldnt think we would see their business decline during the last quarter of this year, she said.

Shusterich said Midwest hasnt experienced some of the same kind of immediate ill effects as other businesses have because of the slowing economy. But he noted that if steelmakers continue to idle furnaces, and U.S. automakers are forced to curtail operations, it could have a significant impact on demand for coal and coal-generated electricity in the months to come.

For his part, Shusterich is hoping for a quick economic recovery. Since 2001, Midwest has invested more than $6 million in its Superior operations, including the $3 million installation of a new rotary railcar unloader this past year. The facility is now permitted to handle up to 25.5 million tons of coal per year, and Shusterich would like to see that capacity put to good use.



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Unstable

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We just shoved a big cut of center beams onto an old unused brachline the other day. Guess nobody is building houses.

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Enemy of the State

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We have a track full of loaded auto racks in our yard. They call them "holds". They've been there for about 2 weeks. I always thought we'd be storing empty racks, I guess now nobody wants them emty or loaded.

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Pipes FC wrote:

We have a track full of loaded auto racks in our yard. They call them "holds". They've been there for about 2 weeks. I always thought we'd be storing empty racks, I guess now nobody wants them emty or loaded.



On the way out to last springs summit, Tupac and I saw maybe about 3 or 4 sidings with stored autoracks in Northern Nevada. They are just putting them anywhere they can.



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Enemy of the State

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I heard someone saying that there was a plan to take the trucks off of them and place them in a field somewhere. I dont know thats true but they must be ruing out of siding space with all the unused intermodal equipment. Seems like that was all we passed when we were going through NM.

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Unstable

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You know what ever car company they are from are paying through the nose for those racks.

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