Durand & Grand Rapids (D&GR)

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AARR
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Durand & Grand Rapids (D&GR)

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Acquired from CMGN in 1993 from a connection with CMGN on the west side of Owosso (M21) (MP 80.8 ) (to a connection with GTW in Durand) and GRE on the east side of Ionia (MP 122.1) (and connections with CSX and NS in Grand Rapids) for a total of 41.3 miles. Despite the abandonment claims, the rail and ballast were in very good shape.

In 2007, GRE abandoned their line from east of Ionia (Prairie Center, MP 122.1) to a point east of Lowell (MP 138.0) adding 16 miles and retaining their connection with GRE.

A GP38ac was acquired from CMGN. It was in a wreck and was going to be scrapped. D&GR bought it for scrap value and had TSBY’s shops rebuild it.
Owner: Durand & Grand Rapids
Model: Rebuilt EMD GP38AC Built As: BO 3708 (GP40)
Serial Number: 34831
Order No: 7158
Frame Number: 7158-9 Built: 2/1969
Notes: Ex-BO GP40 3708, reblt mid-87 to GP38AC
Other locos with this serial: DGR 8801(GP38AC) CMGN 8801(GP38AC) BO 3708(GP40)
Image

Customers were sparse and generated few carloads. There were a pair of elevators in Ovid and one in St. Johns. St. Johns also had a small liquid fertilizer plant. Service averaged once or twice a week. .

The first several years were financially tough with low carloads and no new customers. More than once the owners wondered if they had made a mistake in their vision of the line. Fortunately, the track was in good condition and required little investment to keep it open because of the limited traffic.
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AARR
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Durand & Grand Rapids (D&GR)

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D&GR’s first big break came in 1997 when Auburn Bean and Grain builds a large elevator in Pewamo. It ships 560-750 cars per year in small car lots up to 25 (CN), 50 (NS) or 65 (CSX) car units. Service averages 1-2x per month.

Anything above 20 cars requires a second engine. CMGN had another GP38ac available, and they acquired it (CMGN has just purchased GP40-2W making 8803 available).
Owner: Durand & Grand Rapids
Model: Rebuilt EMD GP38AC Built As: BO 3727 (GP40)
Serial Number: 34850
Order No: 7158
Frame Number: 7158-28 Built: 3/1969
Notes: ex-B&O GP40 3727, reblt in 6/88 to GP38AC
Other locos with this serial: DGR 8803(GP38AC) CMGN 8803(GP38AC) BO 3727(GP40)
Image

The two GP38ac’s could pull up to 50 cars, slowly, anything more and they would rent an engine from CMGN or TSBY for the day.

In 2007, Auburn Bean & Grain expanded its storage capacity and could ship up to 1,000 cars a year (up from 750).
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AARR
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Durand & Grand Rapids (D&GR)

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By 2007 all three of the original small elevators were either closed or stopped shipping by rail.

In 2007, Auburn Bean & Grain expanded its storage capacity and could ship up to 1,000 cars a year (up from 750).

Also, in 2007 Great Lakes Hybrid opened a transload spur in Ovid. It was on the old Ovid Elevator spur. They shipped three to five box cars per month of bagged seeds.
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AARR
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Durand & Grand Rapids (D&GR)

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In 2010 an ethanol plant opened west of Ionia named Superior Corn Products. They had considered building in Woodbury on CSX but chose Ionia and D&GR due to cost considerations and D&GR’s access to three Class 1 connections. Rail traffic was slow to develop, though, with the owners preferring to ship by truck due to the short distances most of the product traveled. The only commodity shipped by rail was denaturant, about four cars per week. Infrequently inbound corn and outbound Dry Distillers Gran and ethanol was shipped by rail but not on a regular basis. In 2020, the company now called Carbon Green Bioenergy, began receiving a 28-car block corn each week from CSX. Shortly after, they began shipping out DDG (6-8 cars per week) and ethanol (7-10 cars per week). CGB is switched by the twice per week Owosso Turn. They are also GRE’s largest shipper receiving/shipping between 37-50 cars per week steadily.
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Durand & Grand Rapids (D&GR)

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Agro-Culture Liquid Fertilizers west of St. Johns was a steady shipper from the beginning receiving about 120 cars a year of feed stock and shipping out 60 a year of their special blend liquid fertilizer. In 2011 they expanded and began to manufacture more than 30 million gallons of fertilizer a year. A large tank farm was built on the south side of Airport Rd. that would be capable of receiving up to 75 car units of feed stock. The loading dock/plant, on the west side of Airport Rd., would be expanded from 3 to 6 stations.

They already had a fleet of 30+ white tank cars that each had a capacity of between 17,000 and 18,500 gallons each.

30% of the feed stock (ammonia, nitrogen, phosphorus & potassium) will arrive by rail. 15% of their special blend liquid fertilizer would be shipped by rail. This translated to 300 inbound cars and 250 outbound. As ACLF expanded their customer reach more cars were shipped out. Currently, they ship about 500 cars a year of their product.

They are switched twice a week with most of the cars going to GRE / CSX.
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AARR
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Durand & Grand Rapids (D&GR)

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With a quickly growing agricultural market in mid-MI several fertilizer companies located on the D&GR.

Wilbur-Ellis had a spur on MQT north of Grand Rapids. It was cramped and they were looking for another location with more room. It came down to GDLK south of Grand Rapids or D&GR. Pewamo had two long sidings of which one was being used by Auburn Bean & Grain (on the north side). The south side was open and centrally located for W-E to reach its customers. They decided on D&GR because the siding was already there. In 2012 they built a terminal and opened it for business. Initially they expected to receive about 80-100 cars a year of dry fertilizer feed stock (nitrogen, pot ash and urea) and have held steady at those numbers. Pot ash can arrive in blocks of around 12 cars and the other ingredients less. They also receive 40-50 tank cars per year of nitrogen solution. These usually arrive in 10-car blocks.

Another fertilizer retailer opened in Fowler in 2014. Several individuals saw an opportunity to invest in a fertilizer company. After performing their due diligence, they liked the proposal D&GR submitted. They named their company Gratiot Agricultural Production Services (GAPS). Their preference was to locate in St. Johns near Agro-Culture Liquid Fertilizer but with the St. Johns sidings being utilized by ACLF, D&GR suggested Fowler instead. There was cheap, vacant land and an unused siding on the east side for staging their cars. With an incentive from the City of Fowler they accepted that proposal and located their dry fertilizer plant on the west side behind Simon Brothers Trucking (who would later get their contract to distribute their products). They receive 20-25 cars a year of dry fertilizer products (mostly pot ash).

GAPS liked the location well enough and D&GE’s service that they that when they opened a liquid fertilizer terminal in 2016, they chose the same Fowler location. They receive 8-10 tank cars a year of nitrogen solution.
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AARR
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Durand & Grand Rapids (D&GR)

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In 2014 The Anderson's acquired all of Auburn Bean and Grains business. In Pewamo, they immediately added additional capacity so they could ship up to 1,200 cars a year and added fertilizer business (both dry and liquid). The fertilizer business added about 35-45 cars annually.

Also, unit trains were increased to 75 for NS and 90 for CSX. The siding capacity was still enough for shuttling cars around during loading.

The Anderson's has invested more capacity over the years. Grain shipments can now approach 1,700 cars a year. Unit grain trains have grown too with NS shipping 85 car blocks, CSX 90 and CN has gotten in the unit grain train business but ask for 110 car blocks. Siding capacity in Pewamo is limited to 100 cars so the 110 car blocks require additional switching to load and build.

Fertilizer shipments remain steady at 35-45 per year (1/3 dry and 2/3's liquid).
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AARR
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Durand & Grand Rapids (D&GR)

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The Anderson’s was shipping more frequent and heavier unit grain trains. D&GR decided it made economical sense to add a couple heavy pullers to their roster. CEFX had a pair of SD60’s stored in LSRC Saginaw Yard available. D&GR are leasing these engines with an option to buy.
Owner: CIT Group/Capital Finance, Inc
Model: EMD SD60 Built As: SOO 6017 (SD60)
Serial Number: 867164-18
Order No: 867164
Frame Number: 867164-18 Built: 8/1987
Notes: Ex-SOO
Other locos with this serial: CITX 6017(SD60) CEFX 6017(SD60) INRD 6017(SD60) SOO 6017(SD60)
Image

Owner: CIT Group/Capital Finance, Inc
Model: EMD SD60 Built As: SOO 6020 (SD60)
Serial Number: 867164-21
Order No: 867164
Frame Number: 867164-21 Built: 8/1987
Notes: Ex-SOO
Other locos with this serial: CITX 6020(SD60) CEFX 6020(SD60) SOO 6020(SD60)
Image
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Re: Durand & Grand Rapids (D&GR)

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D&GR has not changed much since the last report. The two GP38ac’s handle most of the local work usually in a push/pull format. A local operates from the St. John’s engine house. Typical operations is two days per week (Monday and Thursday). The Monday job often doesn’t complete its work until Tuesday. Unit grain trains are handled separately and usually needs all four engines. The track, which was in good condition when D&GR started, is nicely maintained and can handle 286,000-pound cars. The speed limit is 25 mph.

Great Lakes Hybrid was bought by Al-Par Peat and later AgReliant. They stopped using the transload in Ovid and truck everything in and out.

D&GR falls a little short of the 100 cars per mile per year of profitability. They make up for it but having employees perform the diverse tasks a railroad needs to operate.
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Re: Durand & Grand Rapids (D&GR)

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The crew reports to the engine house in St. Johns between 7-8am on Monday, Wednesday and Friday. The two GP38ac’s are usually used in push/pull setup. The first order of business is to switch Liquid Fertilizer if necessary. They ship out 5-12 loads a week and receive up to 300 cars a year in blocks of 3-16 at a time. Afterwards, they depart west toward their interchange with GRE (who forwards them to CSX & NS via GDLK) at Lowell (they exchange cars on a siding east of Malta Jct.). Customers are switched enroute including Gratiot Agricultural Production Services, The Andersons, Wilbur-Ellis and Carbon Green Bioenergy. After they exchange cars with GRE, they head east to Owosso and their connection with HESR (who forwards them to CN). Again, they switch customers as required. Currently there are no customers between St. Johns and Owosso. It usually takes them 8-10 hours to complete their work for the day.

Unit grain trains for The Andersons usually arrive in Grand Rapids from CSX and GDLK/NS. GRE will drag the empties to Lowell where D&GR will couple on with all four of their engines and go to Pewamo where they will load it in about 11-12 hours then head back. At Lowell, GRE will attach its lone engine to the point and all five engines will go back to Grand Rapids. After setting out the unit grain train west of Fuller Jct. D&GR’s four engines will head back to St. Johns performing any switching if required.

Recently, CN is getting a few unit grain trains in the 100-110 car range. CN sets out the empties in Durand where HESR will bring them out to Owosso where D&GR will attach their four engines to the consist and proceed to Pewamo. After loading (takes about 14 hours), they go back to Owosso where HESR will couple an engine on the point and all five engines will drag the train to Durand. After cutting off, the D&GR engines will go back to St. Johns light engine.
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Re: Durand & Grand Rapids (D&GR)

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D&GR handled 6,221 carloads in 2023 broken down per customer as follows:
• Agro-Culture Liquid Fertilizers received 297 cars of feed stock and shipped out 482 cars of their special blend liquid fertilizer.
• Gratiot Agricultural Production Services received 23 cars of potash, phosphate and urea.
• The Andersons received 43 cars of fertilizer (approximately 1/3 dry and 2/3 liquid) and shipped out 1,658 cars of corn, soybeans and wheat (1,161 in 12 unit trains of 85-110 cars).
• Wilbur Ellis received 95 cars of phosphate, pot ash and urea and 47 cars of liquid nitrogen.
• Gallagher Farms Service received four cars of nitrogen solution.
• Carbon Green Bioenergy received 2,604 carloads of corn (1,344 from out of the region sources in 28 car blocks and 1,260 from local elevators in shuttles), 150 cars of denaturant, shipped out 368 cars of DDG and 450 cars of ethanol.

With 61-62 miles of track, D&GR is profitable and can invest in its equipment and ROW.

The GP38ac’s haven’t been rebuilt in 35 years. The are both scheduled for a complete rebuild and upgraded to -3 standards. NRE was selected to perform the rebuilds and will do so at their Mt. Vernon, IL facility in 2024.

The SD60’s were overhauled in 2011 and 2012 respectively. Normally they would be overdue for an overhaul/rebuild but because they were sitting for several years can go a few more miles before needing more than routine attention.

The bridges and track are in excellent shape and will receive routine maintenance this year. It supports 286,000 lbs cars and is rated for 25 mph.

Genesee & Wyoming, who connects with D&GR at both ends (HESR in Owosso & GRE in Lowell) has made offers to purchase them. The offers have been attractive, but D&GR remains independent for now. D&GR has investigated rebuilding the 23 mile line from Ionia and Grand Ledge (and a direct connection with CSX) but the cost would be about 23 million dollars and the funding is not there at this time.

East Jordan Plastics is talking to D&GR about transloading plastic pellets at its newly acquired Lyons plant/warehouse. This is the old Chrysler parts plant that has been closed since the late 1970’s. D&GR has proposed they unload their cars from the old spur lead to Ventra Ionia Main (formerly American Bumper).
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