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home : news : news April 16, 2014

2/28/2013 11:13:00 AM
Randolph terminal project breaks ground

by Ken Haggerty

Construction has begun in Randolph Township for a $24 million corn and soybean terminal project by Interstate Mills, LLC, a wholly owned subsidiary of Cannon Valley Cooperative, which has current facilities in Northfield/Dundas, Kenyon, Dennison, West Concord, Hayfield, Blooming Prairie, Owatonna, Ellendale and Austin.

The facility, scheduled to be ready this fall, will employ four to eight people.

The project is located on 78 acres in the Great Western Industrial Park, north of the city of Randolph. All of the land has been purchased by Interstate Mills. Some was in the Great Western Industrial Park and some was adjacent to it. Access is from Minnesota Highway 56, near St. Mark's Church.

The facility will have a five million bushel storage capacity and a railroad loop that will allow 110-car unit trains to be efficiently brought in and out of the facility. It will accommodate the dumping of up to 60,000 bushels of grain per hour and will have the capacity to dry 10,000 bushels per hour. The system will allow truckers to unload in less than four minutes. During harvest, truck traffic of 450 trucks per day could be possible, but rail and truck traffic could be very slow in non-harvest periods.

It will target growers in southeastern Minnesota and western Wisconsin, who regularly receive the worst prices in the entire corn and soybean belt due to being located the farthest away from ocean ports and high density livestock markets. The goal is to handle 15 to 20 million bushels per year. Traffic of 50 trains per year was mentioned in talks with the Township.

The new terminal will have rail access through Progressive Rail on a line that comes north out of the city of Randolph. The line connects to the Union Pacific out of Northfield, and opens up to markets in the western and southeastern U.S.

The terminal will be Interstate Mills' first location with direct rail service. General Manager Jim Dell said, "Our Randolph terminal will position us to provide a consistent, competitive marketplace for our customers, along with high service capabilities."

He continued, "With the addition of Randolph, we will have tripled our storage capacity from 5 million bushels in 2007 to 15 million bushels." Over the past six years, Interstate Mills added 1.5 million bushel capacity in Kenyon and 3.5 million bushels in Hayfield.

Interstate Mills is acting as its own general contractor, using the following Minnesota firms: J & D Construction, Montevideo, grain elevator; Rud Construction, Webster, excavation; Knobelsdorff Electric, Goodhue; Keith Pumper Plumbing and Heating, Dundas, plumbing; Central Valley Cooperative, Owatonna, heating and ventilation; Prehn Building Sales, Rochester, buildings; RailWorks, Lakeville, rail loop; Hartmann Well Drilling & Service, New Prague; I & S Group, Faribault, engineering; Kennedy Scales, Coon Rapids.

A ceremonial groundbreaking was held on Feb. 20 to recognize the following: Larry Neumann, consultant to Interstate Mills; Doug Felton, Great Western Industrial Park; Andy Brandel, I & S Engineering; Dave Fellon President, Progressive Rail; Gary Mohr, General Manager, Central Valley Cooperative; Jim Dell, General Manager, Interstate Mills; Scott Mitlyng - Owner, J & D Construction; Bob Appelgren, Mayor, Randolph; Bill Callister, Randolph Township Board; Dave Estrem, Nerstrand, President, Interstate Mills Board.

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