Monday, August 13, 2012

CN invests US$35 million in Wisconsin to serve Superior Silica Sands

Canadian National and Superior Silica Sands have entered into a multi-year agreement to move frac sand from a new processing plant now under construction in northern Wisconsin.

Texas-based Superior Silica Sands is building an 85-acre sand processing plant and rail storage facility adjacent to CN's Barron Subdivision near Poskin, Wis., capable of producing up to 2.4 million tons per year of high-quality frac sand products.

CN this spring launched a US$35-million project to restore nearly 40 miles of track between Ladysmith and Barron, Wis. CN will upgrade rail and replace ties, repair culverts and bridges and restore rail service along the line. The Barron Subdivision will connect to CN's North American rail network at Ladysmith and will be in service later this year.

CN will provide rail service to the new plant, moving frac sand from northern Wisconsin to shale drilling areas across North America, including Western Canada.

Superior Silica Sands President Rick Shearer said, "We are excited to partner with CN on this project, which will open a new supply chain for our customers and allow us to reach new markets across North America. This major expansion allows Superior Silica Sands to realize its business model for dynamic growth."

Superior Silica Sands broke ground on the processing plant and rail storage yard this month and expects to start production this November. Superior Silica Sands has invested more than US$50 million in this frac sand operation, which is expected to bring more than 100 new jobs to the area.

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