Metro Aluminum in Chesterfield

[AARR]

Checked out Metro Aluminum in Chesterfield on CN's Mt Clemens Sub for the first time. There were 7-8 50' box cars outside the building. There is probably around that many inside the building. Nice busy customer for CN.

They used a good portion of the old spur to Ford's sewing plant. Ford shipped by rail from here until the mid 1990's. They would ship 2-3 86' box cars a day.

One big difference is the MA spur runs due east where it connects with CN's mainline. The Ford spur connected to an industrial lead that connected with the main about 1/2-3/4 mile to the south. When Ford stopped shipping and CN redid the line the industrial lead was torn out necessatating building a new connection to the main line.

For many years Ford shipped from here. The spur crossed the main road through the park. They installed flashers in the early 1990's only to have Ford stop using rail service a year or two later. Even after the track was torn out they kept the flashers there so they only had to attach the new spur track to both sides of the crossing.

[AARR]

Heard on an interview on WJR that Goldman Sachs took control of all 19 local warehouses and issued limits to how much aluminum can be released. Companies that purchase this aluminum (like Coca Cola) somehow missed this clause and cannot get enough aluminum without paying more. It is turning into a legal mess.

[Raildudes dad]

Ah, our friends at Goldman Sachs. I figured something funny was up. Economy was (still is) in the dumps and someone is filling 19? warehouses in the Detroit area (where empty factories are a dime a dozen) with aluminum? These are the same b#&*2ds that MADE (as in profits) $1.4 BILLION trading oil and gasoline futures in 2004 and $3.4 BILLION last year. I guess you can corner the aluminum supply when you make that kind of money on one commodity.

The zinc futures market instituted a "no trading" if you can't take physical delivery. The same rule needs to be instituted for oil and gas futures. Will it happen? never! Geither, Berneke and the Wall Street boys will never agree and Obama and Congress won't act either. That's it, no more political opinion

The aluminum came by boat initially to Nickleson's on the Detroit River. Now it appears to be railed in.

[AARR]

The aluminum came by boat initially to Nickleson's on the Detroit River. Now it appears to be railed in.

For about the last 2 years many 50' box cars of aluminum ingots have been coming in on CN's Mt Clemens Sub from Canada and distributed to on line warehouses or other railroads with warehouses on their Detroit area lines. CN has at least 3 warehouses on its Mt Clemwns Sub alone. it is my understanding two of the three are switched almost daily including weekends.

[Raildudes dad]

Another news story on aluminum about our friends at Goldman Sachs http://www.msnbc.msn.com/id/43931226/ns ... jnj-mGyAes

[AARR]

Went by here tonight and saw no railcars, no trucks, no cars in parking lot, no lights on. Anyone know what is going on here?

[AARR]

Went by there yesterday and it is all closed up. I believe it was one of the bigger aluminum warehouses in the Detroit area. Anyone know why it was vacated?

[AARR]

From RandallG

The current demand for aluminum no longer requires that it be stored in large volumes - as it is going right to market. As such, the aluminum storage facility on the MTC Sub at 9 Mile Rd (former Weyerhauser) has been permanently closed and the Chesterfield and Mt. Clemens facilities are currently idled. It is all cyclic and aluminum may begin to arrive later in the year - or maybe not. It is a known fact that these companies are continuously seeking more favorable terms and locations for their facilities, and perhaps CN is no longer a viable option for them. I certainly would not read too much at this point into the Chesterfield wharehouse being unused.

The MTC locals (L524, L529, R102) are no less busy without those duties, as the seasonal businesses along the line are doing much better than in previous years - and with the addition of Carter Lumber in Mt. Clemens (former Stock), and the potential New Haven aggregate spur, things remain optimistic on the GTW.....

[TrainWatcher]

From RandallG

The current demand for aluminum no longer requires that it be stored in large volumes - as it is going right to market. As such, the aluminum storage facility on the MTC Sub at 9 Mile Rd (former Weyerhauser) has been permanently closed and the Chesterfield and Mt. Clemens facilities are currently idled. It is all cyclic and aluminum may begin to arrive later in the year - or maybe not. It is a known fact that these companies are continuously seeking more favorable terms and locations for their facilities, and perhaps CN is no longer a viable option for them. I certainly would not read too much at this point into the Chesterfield wharehouse being unused.

The MTC locals (L524, L529, R102) are no less busy without those duties, as the seasonal businesses along the line are doing much better than in previous years - and with the addition of Carter Lumber in Mt. Clemens (former Stock), and the potential New Haven aggregate spur, things remain optimistic on the GTW.....

Well this may explain the use of the Bay Logistics location on CSX south of Plymouth.

[GTW6401]

529 had 5 cars for Metro with them out of East Yard on Monday.

[AARR]

Thought RDD may enjoy this. It's an article in today's Detroit Free Press. Goldman Sachs sold Metro Warehouses to two Swiss billionaire brothers, David and Simon Rueben.

However, Goldman Sachs is being investigated by a US Senate panel for deliberately delaying delivery of aluminum ingots thereby creating longer rental fees and driving up the price of aluminum. G S owned about 100 warehouses in 30 countries including about 30 in and around Detroit. G S acquired Metro Warehouses in 2010 and in a short time delivery went from 40 to as long as 674 days in May of 2014.

[hoborich]

Nothing will happen to GoldInMySacks. You heard it here first!

[AARR]

An article in Crain's business Detroit says that Goldman sold the warehousing in 2014 to Reuben Bro. A softening demand and tighter regulation (due to Goldman's practice hoarding the product which drove up the price) has reduced its profitability. 2016 income will be around $60 million down from $275 million in 2011. Storage is at 231,500 metric tons down from its peak of 1.4 million in 2011. They operate more than 30 warehouses in the region. Anyway, to sum it up while activity is down what's left will continue for the foreseeable future so we should continue to see bx cars (now using 60' hi-cubes rather than CN & family 50' standard height) box cars.