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View Full Version : Smurfit Stone closes two plants, two railroads take hit


ShortlinesUSA
01-15-2010, 08:28 PM
At the end of 2009, Smurfit Stone permanently closed two plants-- Frenchtown, MT and Ontonagon, MI. The latter had been closed temporarily, reopened in the fall of 2009, and then got the axe again.

For the railroad impacts, Montana Rail Link takes the hit in Montana. This closure resulted in the layoff of 46 employees, and elimination of the Schilling Local.

In Michigan, things are a bit more drastic. The plant there was the main customer of the Escanaba & Lake Superior, and basically renders their trackage north of Channing, MI useless. There are already a huge number of cars stored on dormant branches and sidings throughout the 250 mile ELS system. There is presently strong speculation that an abandonment on the northern portion of the system is imminent.

So far, 2010 is definitely not looking like the year where things are going to turn around for the railroad industry.

Andrew Blaszczyk (2)
01-16-2010, 05:01 PM
At the end of 2009, Smurfit Stone permanently closed two plants-- Frenchtown, MT and Ontonagon, MI. The latter had been closed temporarily, reopened in the fall of 2009, and then got the axe again.

For the railroad impacts, Montana Rail Link takes the hit in Montana. This closure resulted in the layoff of 46 employees, and elimination of the Schilling Local.

In Michigan, things are a bit more drastic. The plant there was the main customer of the Escanaba & Lake Superior, and basically renders their trackage north of Channing, MI useless. There are already a huge number of cars stored on dormant branches and sidings throughout the 250 mile ELS system. There is presently strong speculation that an abandonment on the northern portion of the system is imminent.

So far, 2010 is definitely not looking like the year where things are going to turn around for the railroad industry.
That's sad news. I'm sure the type of stone hauled is different but it is interesting that the opposite is happening here. CSX will begin serving the stone quarry in Skillman, NJ once a week starting in the spring.

New Jersey Seashore Lines is beginning to get the ex-CNJ Southern Division from Woodmansie to Lakehurst back into service to haul sand again as well.

nikos1
01-17-2010, 12:18 AM
Too bad about the E&LS, looked like some scenic trackage. I have read that the railroad has already petitioned to abandon this segment.
[photoid=304915]

TheRoadForeman
01-17-2010, 12:30 PM
That's sad news. I'm sure the type of stone hauled is different but it is interesting that the opposite is happening here. CSX will begin serving the stone quarry in Skillman, NJ once a week starting in the spring.

New Jersey Seashore Lines is beginning to get the ex-CNJ Southern Division from Woodmansie to Lakehurst back into service to haul sand again as well.

Andrew, Smurfit Stone is a cardboard box company, FYI.... My company serves one of their plants, they actually expanded their facility about 3 years ago.

Andrew Blaszczyk (2)
01-17-2010, 11:05 PM
Andrew, Smurfit Stone is a cardboard box company, FYI.... My company serves one of their plants, they actually expanded their facility about 3 years ago.
My fault, I was going by the name. Thanks for the correction!

TheRoadForeman
01-17-2010, 11:31 PM
My fault, I was going by the name. Thanks for the correction!

It is very misleading, the actual name of the company is, Smurfit Stone Corrugated Container.

ShortlinesUSA
01-18-2010, 12:31 AM
My bad, guys-- sorry for the confusion. Having grown up around several Smurfit operations, I made the gross assumption everyone else had, too!