https://buffalonews.com/business/local/occidental-chemical-to-close-niagara-falls-plant/article_ddb5463c-010a-11ec-a536-9b2a8e99ba71.html
Not a good look for the railroads. I have a feeling we will see some pushback from this in Congress, since it is in the Senate majority leaders state, and he loves the camera on him.
An "expensive model collector"
That sounds like the same sort of complaint that you would hear from wheat farmers in Montana, they can't compete with farmers closer to the Twin Cities because the rail rates are too high. It would appear that environmental issues are a bigger factor in the plant closure but Occidental isn't about to admit that.
I read that differently. It sounds like transportation costs are a factor, but that it's "regional market conditions" that are the main reason the factory is closing. Sounds more like a rust belt industry issue to me.To paraphrase Bruce Springsteen-They're closing down a chemical plant 'cross the railroad tracks.'Foreman says these jobs are goin' boysAnd they ain't comin' backTo your hometown, your hometown.
Thanks to Chris / CopCarSS for my avatar.
Murphy SidingIt sounds like transportation costs are a factor, but that it's "regional market conditions" that are the main reason the factory is closing.
Agreed. Rail costs were only "part" of the issue. Since the company has plants in other states producing the same chemicals, I wonder if New York's tax rates were an issue?
York1 John
Also, I suspect rail rates are related to the 'dangerous' cargo which probably requires special equipment.
Also, with only 130 employees, it sounds like they've been downsizing for years and finally reached the point where it wasn't economical to operate such a small plant anymore.
A total PR 'Spin' release throwing out the reasons that are farthest from the REAL reason(s). At only 120 employees sounds like the plant is too small to earn its keep regardless of any other claimed reasons.
Never too old to have a happy childhood!
Backshop Also, with only 130 employees, it sounds like they've been downsizing for years and finally reached the point where it wasn't economical to operate such a small plant anymore.
Another possibility to consider is that their market may have moved, as well as their sources.
F'rinstance, papermaking used to be a major industry in northern New York. Except for a few specialty papermakers, that industry moved south years ago. Every paper mill had rail service - one even had an in-plant switcher.
Which would clearly make transportation an issue.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
Sounds like the guy who blamed the rising minimum wage for the closure of his restaurant..
CSSHEGEWISCH That sounds like the same sort of complaint that you would hear from wheat farmers in Montana, they can't compete with farmers closer to the Twin Cities because the rail rates are too high. It would appear that environmental issues are a bigger factor in the plant closure but Occidental isn't about to admit that.
+1
The equipment is prescriptive for Chlorine, as is for any other commodity they produce. I suspect the operation is a "closed gate," which means pricing power, and no alternative rail. Railroads know that and........well you know what that means.
Carloads have been decreasing for 2 decades, so growth comes from, wait for it........price increases, each every year.
Most petrochemical plants have small staffing levels. Automation has been designed into these plants for decades.
Murphy Siding Backshop Also, with only 130 employees, it sounds like they've been downsizing for years and finally reached the point where it wasn't economical to operate such a small plant anymore. Especially if you read the part that says they used to employ thousands there.
Backshop
Especially if you read the part that says they used to employ thousands there.
It depends on how long ago it employed thousands. Plants these days are much more automated than they used to be and require significantly less workers to produce the same amount of product than they required decades ago.
"No soup for you!" - Yev Kassem (from Seinfeld)
diningcar Also, I suspect rail rates are related to the 'dangerous' cargo which probably requires special equipment.
ericsp diningcar Also, I suspect rail rates are related to the 'dangerous' cargo which probably requires special equipment. The tank cars are supplied by the shipper. The railroads do not have to worry about supplying the cars.
In many case companies have to lease the tank cars that they use. Doubt that the leases are inexpensive.
Whatever the source, its part of the total shipping cost in the accounting process that "goes to the bottom line".
Our community is FREE to join. To participate you must either login or register for an account.