Pontiac Beltline (PONB)

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AARR
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Pontiac Beltline (PONB)

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Pontiac Beltline (PONB) Acquired 2018 from CN

There are three segments. The first starts at Johnson Yard Wye at north end of Pontiac Yard and extends 2.6 miles to Walton Jct. The other is the old PolyAnn and starts at Montcalm Ave. extends through Walton Jct. to Eames (Orion Branch Jct.) 4.9 miles. The third starts at Orion Branch Jct. (Eames) and eventually wraps around the GM Orion Assembly for 3 miles.

Uses an ex-GTW SW1200RS 1512-1519 series and ex-GTW GP9 4433.

Interchanges with CN in Pontiac

Engine house in Orion Yard

Started out operating twice a week but since GFL opened current operations is Monday-Friday and occasional Saturday.

Original three customers:
Bolyard Lumber Transload - Receives 35-50 cars annually
GM Pontiac Stamping - Shipped 3-5 cars per week of stampings (by 2019 increased carloads to 6-9 per week then stopped shipping late 2021)
Ferrous Processing & Trading (former Sam Allen Scrap by which it is often still referred) - Shipped 1-3 cars per week of scrap metal (by 2019 increased carloads to 3-6 per week and in 2022 10-16 per week (with a potential to substantially ship more)

New Customers
Green For Life: Consolidated its scrap paper operation in 2021 to an old GM building east of Walton Jct. on the original Beltline ROW. Upgraded track one mile east of Walton Jct. Switched Monday-Friday and occasionally on Saturdays. Averages 5-8 loaded box cars per weekday.

GM Orion Assembly was building the Bolt, but sales volume never amounted enough to interest CN (best year they built 22,000 vehicles). However, they will begin building electric pickup trucks in late 2022-23. Anticipating 21-28 loaded vehicle racks per weekday the first year. Also, there is a possible inbound move of frames which would amount to 5 cars per weekday. However, they might unload these frames off CR in Sterling Heights and truck them in.

If Bolt production continues and it gets shipped by rail that will add 9-12 cars per weekday.
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AARR
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Re: Pontiac Beltline (PONB)

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After several years of negotiating, we have successfully persuaded Ferrous Processing & Trading to move some metal scrap shipments from NS to CN. Both CN and NS have access to a large steel factory east of Chicago. The steel plant is dissatisfied with NS's inconsistent service and their customer response. The transportation rate will be a little higher but with better service predictability it will cost less in the overall supply chain process and savings in storage/emergency truck service. Carloads will increase from 3-6 per week to 10-16 per week (changes made in above post). The metal scrap yard will be switched three times per week instead of two. There remains a big upside for additional metal scrap shipments from here. Hopefully, if this new movement works out there will be more opportunities to grow the business.

Also, although we have not heard anything official it appears GM Pontiac Stamping will not be shipping anything by rail in the foreseeable future. See the above post for its short history with PONB.
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Re: Pontiac Beltline (PONB)

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Although the engine house is in Orion Yard (or what is left of it) the crew normally starts their day at the GFL recycle paper warehouse. They will pull 5-8 loads everyday and spot a similar number of empties from the staging track.

M, W & F they head to Ferrous Processing and pick up 3-6 loads. On the way back they will tie on to the GFL scrap paper loads.

On average once a week there will be one or two empties at the Bolyard Lumber Transload. They will pull the empty and maneuver around the wye to add it to the consist.

They proceed to CN's Pontiac Yard where they set out and pick up.

On the way back they will spot lumber loads at Bolyard (usually once a week), pull on the former PO&N heading east and back empties to Ferrous, after spotting the empties they run around the wye again and push the GFL empties onto the staging track.

If only GFL is switched the crew can normally finish in about three to four hours. If all three customers require service it can be around a six hour day.

The SW1200RS and GP9 are used equally to keep them in running condition. Once a week both engines are run to Orion Yard for service and to keep the line open.

If Orion Assembly resumes shipping by rail again the schedule will be modified to meet all customers needs.
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Re: Pontiac Beltline (PONB)

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Engine Roster:
Owner: Pontiac Beltline 1203
Model: EMD SW1200 Built As: GTW 1516 (SW1200)
Serial Number: 25748 Order No: 4437
Frame Number: 4437-6 Built: 3/1960
Other locos with this serial: RJCR 1203(SW1200) GTW 1516(SW1200)
Notes: Acquired from RJCR 2018
Image

Owner: Pontiac Beltline 4433
Model: EMD GP9 Built As: GTW 1757 (GP9)
Serial Number: 19671 Order No: 5343
Frame Number: 5343-7 Built: 8/1954
Notes: Acquired from GLLX 2021
Other locos with this serial: GLLX 4433(GP9) GTW 4433(GP9)
Image

Ferrous Processing has moved the additional scrap traffic back to NS (and loaded at their other scrap yards...they have 11 locations in Detroit). Turns out NS went back to them and promised better service and a reduced price. FP hasn't officially said anything to DIND representatives but the cars being loaded at their site along DIND's line is back down to the 3-6 cars per week prior to. This is a loss of 7-10 cars a week. This affects both DIND and PONB locations.
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Re: Pontiac Beltline (PONB)

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PONB is forecasting 1,700-2,300 carloads in 2022. 1,485-1,980 are loaded box cars of scrap paper from Green for Life. 180-270 are loaded gondolas of scrap metal from Ferrous Processing and the Bolyard transload will receive 35-50 cars of lumber.

The track is in good condition and rated for 286,000 lbs cars.

Both engines, although 65 (SW1200RS 1516) and 68 (GP9 PH1 4433) years old respectively and with mostly original components, continue to serve well. They are reliable. Routine maintenance is handled at the engine shed in Orion Yard. Heavier maintenance is contracted out often to GLC in Owosso.

There continues to be talks about the GM Orion plant building an electric pick up truck. There is a very good possibility rail service will resume there if the trucks are built. The plant does not build enough Bolts to interest CN in establishing a pool of tri-levels for service.

GM Pontiac Stamping has not shipped in nearly a year. All of their production goes to local assembly plants (including Orion) so no rail service is anticipated in the near future. However, they are paying to keep their spur connected for now.

After a short period of heavy shipping from Ferrous Processing (10-16 cars per week) they have gone back to the three to six per week range. The additional traffic went back to NS and shipped from other FP yards that directly connect to NS (or CR) due to pricing and a promise of better service.

PONB is financial strong and able to reinvest in itself without subsidies and still earn a profit. If Orion Assembly builds the EV pick up motive power will be evaluated as will operations.
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Re: Pontiac Beltline (PONB)

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Bad news, Green for Life (GFL) is going to move its scrap paper operation to a recently vacated steel warehouse on CR in Dearborn on Wyoming Ave. The primary factor for moving is the location on CR will give it access to all the Class 1’s that go through Detroit (CN, CP, CSX and NS) which will provide for better shipping lanes and prices. They must pay a penalty for leaving Pontiac so soon after the major renovations and track work that were done to the former GM building on E. Columbia Ave. so the savings to move must be significant.

Now for some good news. Ferrous Processing (FP) signed a long-term contract to provide scrap metal to American Iron and Metal (AI&M). AI&M has several huge locations on CN in Canada, so the single carrier routing is attractive and cost effective. AI&M has a large fleet of high-top and standard height gondolas (black and gray) that will be used in this service. Scrap from both FP’s Detroit and Pontiac locations will be the staging yards for AI&M’s shipments of 17-26 cars per week that will be shipped to AI&M’s foundries. PONB will switch FP daily, five days per week and deliver to CN in their Pontiac Yard.
Image

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FP will continue to ship 3-6 cars a week to Chicago mills in addition to the new business for AI&M.

In more possible good news, General Motors (GM) announced they will be making a significant investment in its Orion Assembly plant to make an EV pickup. One of GM’s conditions is that they want rail service to the plant. The plant, currently making the Bolt, which is down due to serious product issues, has not shipped by rail in over 10 years. Much of the staging yard has been removed except for a few sidings. The 40-car loading ramp yard is still in place and good condition. The inbound parts tracks on the north side of the building have been removed except for a couple stub tracks. It is unlikely any parts will arrive by rail except for frames. Of course, with GFL moving out of its Pontiac building that could be a perfect warehouse to stage parts for assembly. This project is around two years away so there is always a deal-killer out there.

Operations is five days a week with the engines parked at FP. The crew usually goes on duty between 7-8am and are normally finished before noon.
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Re: Pontiac Beltline (PONB)

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PONB now belongs to the TOAD family of railroads including TOAD, WDIN, DIND, PHIN, LIND, PONB, JAIL and CHIN.

Both the SW1200RS and GP9 were removed from the roster and replaced with:
Owner: Pontiac Beltline
Model: EMD SW900 Built As: NYC 9604 (SW8)
Serial Number: 15500
Order No: 4109
Frame Number: 4109-3 Built: 2/1952
Notes: Acquired from LTEX 2022
Other locos with this serial: PONB 905(SW900) LTEX 905(SW900) LTEX 905(SW8) CR 8604(SW8) NYC 9604(SW8)
Image

Unlike CSX and NS, CN has a cold and hot relationship with the scrap metal industry. The AI&M traffic stopped within 30 days of starting and traffic from Ferrous Processing (FP) is back down to 3-6 cars per week for Chicago mills. There was a long-term contract in place for the AI&M traffic so something very compelling must have happened for them to back out so quickly.

GM continues to invest in Orion Assembly. It is expected to begin production in 2024.

Service is one day a week (Wednesday). A crew that handles the WDIN job (Tuesday, Thursday and Saturday) works PONB.

PONB is forecasting 215-325 carloads in 2023. By operating just one day a week, sharing the crew costs with other railroads and declaring the line north of FP OOS (but not officially abandoned), PONB covers its costs but will need significant attention when Orion Assembly begins production.
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Re: Pontiac Beltline (PONB)

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PONB will benefit from the $4 billion investment GM and the US Government are making at Orion Assembly. GM will build the Chevrolet Silverado EV and electric GMC Sierra. GM has not shipped anything by rail from here in over 10 years. Enough track remains in place to service the loading docks and some of the yard tracks.

The Orion facility will have a capacity to build 300,000 full-size electric trucks when fully ramped. This would require PONB to switch the loading dock tracks (capacity to load 40 auto racks) at least twice per day, seven days per week. All inbound components will be trucked in with the Flint Distribution Center handling any inbound parts arriving by rail. GM will build the Chevrolet Silverado EV and electric GMC Sierra using a new Unibody design that eliminates frames so there will be no opportunity for frame traffic. The target opening date is 2024. PONB is considering acquiring a pair of GP, MP or SW 15’s to handle the additional traffic.

Current operations remains a weekly job on Wednesday’s switching Ferrous Processing each time (3-6 cars) and Bolyard Lumber Transload as needed (2-5 cars per month).
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Re: Pontiac Beltline (PONB)

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Typical operations consists of the crew going on duty between 7am-8am. PONB keeps the engine on the Ferrous Processing spur inside their gated yard. The FP switcher pushes the loads up to PONB’s SW900 905. They depart with three to six scrap metal loads. If there is no empties to be picked up at the Bolyard Lumber Transload they take the west wye at Baldwin Jct. and make straight for CN’s Johnson (Pontiac) Yard. If there is a pickup to be made at Bolyard, they stop short of Walton Rd., proceed engine light to Bolyard, pick up and back toward Baldwin Jct. taking the north wye. After clearing the wye, they back the empties and connect to the scrap loads before proceeding to Johnson Yard. After arriving at Johnson Yard, they stop and wait for permission to enter (which normally doesn’t take long). They proceed to the bypass track, set out their consist, run around it, make their way to the yard lead and back in the yard track to pick up their outbound consist (usually three to eight cars). After waiting for clearance (which usually doesn’t take long) they proceed to FP setting out lumber loads at BLT as necessary, taking the north wye at Baldwin Jct. and backing the empty gondolas to FP. Once inside their property they uncouple the gondola and park for the day. FP switches its on tracks and will pick up the empties and push the loads to PONB for next week’s run. The PONB crew usually completes their day in two to five hours.
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Re: Pontiac Beltline (PONB)

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In 2023 PONB handled 52 inbound lumber loads to the Bolyard Transload and 612 outbound scrap loads from Ferreous Processing.

Ferreous Processing has been shipping a lot lately, averaging 21-32 cars a week during the first two weeks of January. They require switching five to six days a week. If this pace continues PONB may acquire a second engine as a backup. Note that Ferreous has a history of up and down shipping.

GM recently delayed production at its Orion Assembly until 2025 citing a lack of demand for electric vehicles. Renovation of the facility has slowed as well. Some say that the recent strike and wage increases will affect the profitability of electric vehicles and GM is pausing until they can calculate the profit margins they need to justify the increased cost.
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