Mid-Missouri Energy makes use of rail track in December's export plan

Wednesday, December 17, 2014
Derek Byerly, process technician, readies one of the many rail tanks to be loaded with ethanol at Mid-Missouri Energy, in Malta Bend, Wednesday, Dec. 17.

The ethanol plant on the outskirts of Malta Bend, owned by Mid-Missouri Energy, will be making use of its rail system to ship products in addition to shipping through their primary truck market.

General Manager and CEO Chris Wilson was able to shed some light on the purpose of incorporating the rail system in this month's business plans. He explained how their shipping strategy typically works for exporting their product.

"We have been in operation since 2005, and initially we ship the majority of our products via rail ... We switched in, I would say, 2008 or 2009, just market conditions led us to convert more to a truck market for ethanol," Wilson said, "For the last five years we've been shipping our ethanol via truck. We've always had a rail and been able to use it ... Here as of recent, we had some market opportunities to ship via rail and we're doing so."

Opportunities this month that influenced the decision to ship by rail included the pricing option to ship was beneficial. But Wilson also seemed adamant about Mid Missouri Energy relying on trucking for the majority of their export services.

"We're still remaining a truck market. For us, we just had an opportunity to extract value by selling a portion of our production for this month into the market that requires us to ship via rail," Wilson said. "We monitor and make those decisions on a weekly/monthly basis ... It's just been a while since we've found value in doing this."

Wilson said December is likely to be the only month when products will be shipped via rail.

Contact Lucas Johnson at ljohnson@marshallnews.com

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