Wood Energy adds new tie-grinding facility, sign with KCS
Written by jrood
Banyan Rail Services Inc. said that its wholly-owned subsidiary, The Wood Energy Group, Inc., has completed the construction of a railroad tie-grinding facility in Shreveport, La. Wood Energy, one of the nation's largest railroad tie reclamation/energy generation companies, reclaims railroad ties for Class 1, regional and shortline railroads and then disposes of the ties to either the energy co-generation or landscape markets.
In
its newly-completed Shreveport facility, Wood Energy is grinding reclaimed rail
ties and providing the product to International Paper, which uses the product
as a source of biomass fuel for its containerboard mill in Mansfield, La. The
new tie-grinding facility increases Wood Energy’s operating margin as this
business was previously outsourced.
In
addition, Kansas City Southern recently signed an agreement with Wood Energy to
deliver reclaimed railroad ties to Wood Energy’s tie grinding facility in
Shreveport. This new business increases the supply of ties for Wood Energy’s
grinding facility.
