Success on the rails
EnergyLines August 2016
Transload facility partnership a success
On July 14 Hoosier Energy joined Indiana Rail Road (INRD) and the Nelson Brothers, who provide services and solutions to open pit mining operations, in dedicating the Merom Transload facility. This $2.5 million rail-to-truck facility, located on Hoosier Energy property, creates a more efficient supply chain and has added four jobs to the local economy.
Hoosier Energy and the Indiana Rail Road began developing the facilities concept in 2012. Putting to use existing assets including Indiana Rail Road’s main line and Hoosier Energy’s existing property and rail spur, the project was formalized in 2015.
“This Transload Facility is a great example of the 25-year partnership between Indiana Rail Road and Hoosier Energy,” said Will Kauffman, Hoosier Energy Manager of Fuels. “We both recognize that through collaboration we can better serve our members, customers and the residents of southern Indiana and Illinois.”
The value this facility provides can be seen in the reduction of transportation costs. Soda ash used at the Merom Generating Station, to reduce sulfuric acid emissions, is mined more than 1,300 miles away in Wyoming. It is then transported to Indianapolis and sent by truck to the station.
The new transload facility gets the soda ash delivered 2.5 miles from the station. This transportation improvement reduces the delivery cost annually by $250,000.
“The savings is just another example of Hoosier Energy identifying sustainable cost-management measures in order to continue providing our 18 member cooperatives with reliable and affordable power,” said Rob Horton, Hoosier Energy Vice President of Power Production.