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Twin Cities Business - Short Lines, Big Problems http://tcbmag.com/news/articles/2017/June/short-lines,-big-problems <br />"So we had to convert to truck. For us to make an investment in Morton we need to know this track will be <br />improved. We're trying to stop an exodus of grain going by our door. This elevator is extremely important to this <br />community." <br />On a given afternoon, there are more people gathered at Morton's elevator than any place in town. It is the <br />economic hub of the community, even though the trains don't load there. <br />As Vaske explains the economics, any grain shipment over 60 miles should be by rail for the farmer to maximize <br />return. That is why Harvest Land trucks crops 24 miles from Morton to the Canadian Pacific at Springfield rather <br />than trucking to its destination. <br />"When a farmer puts an acre of corn in and he's paying more to transport it to a shipper, it can cost 10 cents a <br />bushel," explains MVRRA lobbyist Michael Beard. "That's $20 an acre that doesn't stay in Morton. That's $20,000 <br />per farm family that leaves" The common wisdom is one agricultural railcar takes three to four trucks off the road. <br />Morton's biggest employer that uses rail is Step -Saver Inc., which is relocating operations from Redwood Falls to <br />take advantage of rail access and available commercial space. Step -Saver delivers salt to regional businesses via a <br />customized system that moves it from truck directly to water softener. It imports salt by rail from Utah. <br />From Morton, Step -Saver serves an area from South Dakota to Iowa to Alexandria, with a diverse customer base <br />that includes Jennie -0, Target, Thompson Reuters and Michael Foods. Co-owner Chuck Steffl says good rail service <br />is essential to his viability; trucking it in would create a cost penalty that would render his business uncompetitive. <br />"If I had to truck my salt in, we wouldn't be here," he says. "Theoretically I don't have to be in Minnesota. I could be <br />in South Dakota or Iowa." <br />The risk to Morton is obvious. Failure to improve the western end of the railroad will result in either a catastrophic <br />derailment, regulatory embargo or merely a decision by Wegner that his railroad can't generate a long-term return <br />operating half -full cars at 7 mph. Without prospect of rehabilitation, the elevator's continued presence is in <br />jeopardy and Steffl moves out. <br />"Morton will suffer and continue to decline if we lose the railroad," says Rath. And each year the repairs cost more. <br />"In 2003 all the work was estimated at $25 million," says Rath. "Today we've spent $30 million and need another <br />$60 million. Inflation kills you" <br />BACK TO ARTICLES <br />[Close] <br />9 of 9 6/16/17, 11:35 AM <br />