RRVW Railroad Company gets $12 million for track improvements ahead of Casselton soybean plant opening

BISMARCK, N.D. — Red River Valley and Western Railroad Company has received a $12 million grant to develop, design and construct track improvements to help accommodate the expected growth in carloads of agricultural products in the region due to the

North Dakota Soybean Processors plant expected to come on line in 2024

.

The grant will upgrade track between Casselton, North Dakota, and Wahpeton, North Dakota, to continuous welded rail to avoid either diverting soybeans on a more than 100-mile detour or shipping soybeans by truck. The grant is being awarded through the Department of Transportation’s Consolidated Rail Infrastructure and Safety Improvements grant program.

RRVW operates more than 500 miles of track primarily in the southeast quarter of North Dakota and serves more than 60 customers, including nine grain shuttle facilities, 33 grain elevators, and a number of processors.

North Dakota’s Congressional delegation — Sens. John Hoeven and Kevin Cramer and Rep. Kelly Armstrong — expressed their support for Red River Valley and Western Railroad Company’s grant application

in an Oct. 18, 2022, letter to Transportation Secretary Pete Buttigieg and Federal Railroad Administrator Amit Bose

.

The delegation said an anticipated 10,000 new rail carloads of soybeans, soybean oil and soybean meal are expected to travel on the rail line when the new plant in Casselton is operational. The $400 plant broke ground in August 2022 and expects to be taking soybeans during 2024. North Dakota Soybean Processors, a joint venture between Minnesota Soybean Processors and Louisiana-based CGB Enterprises, is expected to crush 42.5 million bushels of soybeans in the first year.

The plant is poised to be North Dakota’s second large-scale crush plant.

The Green Bison crush plant, a 75-25 venture between Archer Daniels Midland Co. and Marathon Petroleum Corp., started accepting soybeans in mid-September.

“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,” the delegation said in a statement.

The new soybean plants in the region

are expected to have a strong economic impact

. Along with the Casselton and Spiritwood plants, another North Dakota plant

has been announced in Grand Forks by Epitome Energy

. In South Dakota,

High Plains Processing broke ground on a plant near Mitchell, South Dakota, on Sept. 19

.

Jenny Schlecht is the director of ag content for Agweek and serves as editor of Agweek, Sugarbeet Grower and BeanGrower. She lives on a farm and ranch near Medina, North Dakota, with her husband and two daughters. You can reach her at jschlecht@agweek.com or 701-595-0425.