Michigan Southern (MSO)

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AARR
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Michigan Southern (MSO)

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Acquired from Gordon Morris in 1997 from White Pigeon Jct. (NS and later GDLK) to end of line east to Quincy, MI and a connection with IN for 40 miles. In Sturgis they acquired the old Grand Rapids & Indiana line from south of Sturgis near the IN-state line to the Abbott plant on the north side of Sturgis (2.3 miles). However, in 2004 MSO lost a lawsuit with IN over customers in Coldwater to Quincy and cut its line back to east of Burr Oak for a new distance of 20.5 miles. What little traffic was exchanged between the two railroads stopped immediately and the line from Sturgis to the new end of line was used for storage.

MSO started operations with a pair of RS2's, ex-D&M 466 and 467. Later, a pair of high noses GP38's were acquired from NS and replaced the RS2's. 467 was scrapped and 466 was donated to the City of Tawas as the first RS2 built. The noses were chopped, and they continue as the power to this day as straight 38's.

Mr. Morris kept the track in good condition and MSO has maintained it that way. Most years they upgrade a mile or two or rail and after 25 years the line from White Pigeon to Sturgis and the industrial branch in Sturgis are rated for 286 lbs. cars.
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Michael
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Re: Michigan Southern (MSO)

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I just read this in the news today. I had not realized the plant was even closed

Top baby formula manufacturer Abbott has reached an agreement with federal regulators on a plan to restart production at its shuttered Michigan plant. The Sturgis Abbott plant, which is the nation’s largest baby formula manufacturing hub, has been closed since February over a contamination issue. According to an Abbott spokesman, the plant will need six-eight weeks in order to resume production.

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AARR
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Re: Michigan Southern (MSO)

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Thank you, Michael. Abbott receives 3-4 tank cars per week of soy. They have been a steady customer from MSO's start up in 1991. More on the customers later.
Michael wrote:
Wed May 18, 2022 9:00 am
I just read this in the news today. I had not realized the plant was even closed
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AARR
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Re: Michigan Southern (MSO)

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Customers from White Pigeon to Sturgis (excludes former customers in Coldwater and Quincy):
- White Pigeon Jct.: Commodity Concepts receives 2-3 cars a month of cottonseed in large open top hoppers (covered with a tarp). They also ship a carload or two of pulp logs every two to three months (6-9 per year).

- PRM Trucking: At the former site of the Morris Contracting gravel pit, is a long team track that PRM transloads from. A variety of commodities arrive/depart from here including aggregates, bond, coal, coke, fertilizer, foundry sand, Plastic ETC and scrap. Up to 1,000 carloads will be shipped in a very good year but it also can be substantially less.

- White Pigeon: A recycling paper plant now operated by OX. OX currently does not ship anything by rail but has requested and will pay to leave the spur in place for now. The previous owner was White Pigeon Paper who would receive a few cars a month of clay slurry.

- White Pigeon: There is a tank car cleaning terminal here that is currently not operational.

- White Pigeon Co-op: Does not receive rail service currently.
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AARR
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Re: Michigan Southern (MSO)

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After White Pigeon the next group of customers are in Sturgis.

Iceberg Molding receives a couple cars a week of plastic pellets.

Atlantic Packaging has a spur for loading scrap paper that is not being used at this time. They have another spur off the old GR&I line for receiving carboard stock.

On the old GR&I line starting at the south end is Frank Miller & Sons. They receive a few cars each month of deicers and salt. This location is new. They formerly were located north about a mile or so. The new, present, location is much larger and gives them plenty of space to grow and increase business. They are forecasting increased volume in the near future.

Omnisource is next. They ship 1-2 cars per week of scrap metal. They reopened recently after being closed for many years. Back in the 90's it was operated by Sturgis Iron and Metal and shipped 20-30 cars per month. They were closed around 2005 due to environmental issues. Omnisource acquired the land around 2015 and after a slow start business is starting to pick up. They, like FM&S, are forecasting increased volume in the near future.

Atlantic Packaging and OX have warehouses along this stretch with a spur that is currently inactive. These buildings a mostly used for finished product which goes out by truck so it is unlikely this spur will see any rail service but MSO leaves the spur in place at their cost just in case.

Next up is Atlantic Packaging's other spur to their receiving dock which can hold five 50' or four 60' box cars. Currently they receive 6-8 box cars a week of cardboard stock.

The final customer is Abbott Nutrition which as Michael pointed out is the closed baby food plant that has dangerously dropped the national supply leaving millions of mothers worried about how to feed the babies. Fortunately, they will be running again very soon. They usually receive 3-4 cars per week of soy. Abbott still has a spur that goes into their plant that has not been used in years but they haven't asked to have it removed so MSO leaves it there for now.
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AARR
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Re: Michigan Southern (MSO)

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The original engine house is in White Pigeon next to the old Wickes Lumber yard. The second engine house id located on the long spur for PRM Trucking.

Both engines are typically used in a push/pull format. The track is rated for 286 lbs. cars but at speeds of 10 mph. With only 25 miles of track all work can usually get done in one day. Operations is typically three days per week. Two of the days all customers are switched from White Pigeon to Sturgis and the storage track. The third day, if needed, usually only the PRM Team track is switched. They have four dock spots on this 1/2-mile-long single track so when all four spots need switching it takes quite a bit of time.

The first PRM spot is for unloading aggregate, bond, coal and coke. Car quantities can vary but in a busy year it averages 3-5 cars per week.

The second PRM station is used to load foundry sand. Again, car quantities can vary but the last several years they have been shipping a steady 7-10 cars per week.

The third PRM dock is a bulk liquid unloading station for up to for up to five cars at a time. It can average 1-3 cars per week.

The last dock is for unloading directly into trucks like fertilizer, plastic pellets and soda ash. It typically receives 1-3 cars a week.

The line would barely pay for itself if it wasn't for PRM Trucking. PRM makes it a nice profitable line especially when their volumes are high.

There are several prospective customers in White Pigeon and Sturgis. MSO maintains good relationships with both customers and prospects in hopes of growing their business.
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AARR
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Re: Michigan Southern (MSO)

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Owner: Michigan Southern 2809
Model: EMD GP38 Built As: SOU 2809 (GP38)
Serial Number: 36057 Order No: 7240
Frame Number: 7240-57 Built: 3/1970
Notes: Acquired from NS and short hoods chopped
Other locos with this serial: NS 2809(GP38) SOU 2809(GP38)
Image

Owner: Michigan Southern 2822
Model: EMD GP38 Built As: SOU 2822 (GP38)
Serial Number: 36070 Order No: 7240
Frame Number: 7240-70 Built: 3/1970
Notes: Acquired from NS and short hoods chopped
Other locos with this serial: NS 2822(GP38) SOU 2822(GP38)
Image
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AARR
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Re: Michigan Southern (MSO)

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MSO is on pace to handle between 1,350-1,890 cars in 2022. About 680-960 will go to the PRM Trucking transload tracks.

Both GP38's are operating without issues. The are dependable, reliable and require little non-routine maintenance.

The Abbott baby formula plant is operating again. They were initially shutdown due to quality concerns, then reopened only to be shutdown again by flooding. They typically receive 3-4 cars a week of soy and require service twice a week.

The single largest source of carload traffic is foundry sand from PRM which averages 7-10 cars a week.

The next largest is Atlantic Packaging which receives 6-8 box cars a week of cardboard stock.

The 3rd largest customer is also on PRM transloading 3-5 cars a week of coke for a local foundry.

The smallest shipper is the outbound wood logs from Commodity Concepts totaling 20-30 car loads annually.

The line is marginally profitable and gets by with employees who can multitask and perform many functions in-house.
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AARR
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Re: Michigan Southern (MSO)

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MSO and PRM have jointly changed PRM’s single transload track (with multiple docks for various commodities) into a three-track plastic pellet transload yard for customers primarily around the Elkhart, IN area (ex. Elkhart Plastics has multiple plants). A concrete pad was poured in-between the tracks for truck access. This new terminal is expected to handle 11-15 cars per week. With the Sit-In-Transit (SIT) cars, 30-40 will be always on the property. The other commodities that PRM was handling (coke, sand, etc.) by rail have either ceased or significantly reduced in volume.
PatC created a monster, 'cause nobody wants to see Don Simon no more they want AARR I'm chopped liver, well if you want AARR this is what I'll give ya, bad humor mixed with irrelevant info that'll make you roll your eyes quicker than a ~Z~ banhammer...

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AARR
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Re: Michigan Southern (MSO)

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MSO has entered into an agreement with Patriot Rail to sell MSO. PR will bundle the operations of MSO with its EWR. Upon all the necessary approvals, the transaction will officially take place approximately March 1st, 2023.

MSO has worked hard to successfully regain and add new business. Despite its growth, MSO operates at a loss. PR will have the resources to maintain the ROW and upgrade it for heavier loads.
PatC created a monster, 'cause nobody wants to see Don Simon no more they want AARR I'm chopped liver, well if you want AARR this is what I'll give ya, bad humor mixed with irrelevant info that'll make you roll your eyes quicker than a ~Z~ banhammer...

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