Efforts to build petcoke inventory continue

August 19, 2011

The springtime floodwaters in Minnesota continue to have a ripple effect on the petcoke inventory at sgSolutions. Wabash Valley CEO Rick Coons has continued negotiations with Koch Carbon, the petcoke supplier, as well as the railroads that transport the refinery by-product from the Twin Cities to the West Terre Haute plant. The goal is to overcome the shortages caused by the spring delays.

“We have three trainsets in service now, but our current inventory is at about 40 days, and we are trying to build up to 100 days before December 15,” Rick explained. “By then, things start freezing and it becomes nearly impossible to unload the aluminum rapid-discharge cars we use.”

Koch is attempting to locate additional railcars, Rick added. “They would be steel cars, and we could dig them out during the winter. Basically, you put a backhoe on top of the car and dig the petcoke out of it. It’s labor-intensive, but it only adds a couple dollars per ton. So it’s not cost-prohibitive, but we’d still rather try to avoid doing it.”