WASHINGTON, DC, US — Red River Valley & Western Railroad Co. has been awarded a nearly $12 million federal grant to construct track improvements in anticipation of expected agricultural freight growth from a new soybean crushing facility being built near Casselton, North Dakota, US.
North Dakota Soybean Processors, a joint venture formed by CGB Enterprises, Inc. (CGB) and Minnesota Soybean Processors, unveiled plans for a new soybean crush plant in Casselton in December 2021. A groundbreaking ceremony was held in August 2022, and the facility is expected to be fully operational in 2024.
The grant will upgrade track between Casselton and Wahpeton to continuous welded rail to avoid either diverting soybeans on a more than 100-mile detour or shipping soybeans by truck. The grant, announced Sept. 26 by North Dakota’s congressional delegation, is being awarded through the US Department of Transportation’s Consolidated Rail Infrastructure and Safety Improvements grant program.
The new facility is expected to crush 42.5 million bushels of soybeans in the first year – producing soybean oil, soybean meal and hulls – and provide a more competitive and viable market within North Dakota for production that previously left the state.
“With the new soybean crushing plant in Casselton, we expect to see more than 10,000 new rail carloads per year of soybeans, soybean oil and soymeal on this rail line,” the delegation said. “This grant will help to transport these products, as well as other agriculture products in the region, more safely and efficiently. Improving the short-line railroad network in our state is vitally important to moving our agriculture products safely and efficiently, while at the same time helping to grow our state’s economy.”