Eastern Railroad Discussion > USS Steel DRI project in Arkansas.

New project in the works to ship iron ore from Minnesota to USS Arkansas mill. Have to think it would have some shipment by rail?

"The new plant will connect mining operations in Minnesota with steel production in Arkansas, improving efficiency and reducing the need to ship materials. Keetac makes DR-grade pellets.

“From iron ore in Minnesota to steel production in Arkansas, this $1.9 billion investment strengthens our ability to create steel that is truly mined, melted, made in America, from start to finish. By vertically integrating DRI production directly at Big River Steel Works, we enhance efficiency, secure our competitive advantage, and position U. S. Steel for long term success. Our partnership with Nippon Steel helped accelerate this investment years sooner than would have otherwise been possible,” U. S. Steel President and Chief Executive Officer David B. Burritt said.

Posted from Android

The plant in Arkansas is right next to the Mississippi and there appears to be a sizeable barge operation there so iron-ore movement by barge is a definite possibility.

Here's some background on the project, and what it might mean.

Two cautions: One is that Nippon Steel now controls USS, and has made assurances that the Edgar Thompson works near Pittsburgh will remain open. Two is that the US government holds a "golden share" which gives it veto rights over major corporate decisions such as plant closings, etc.  So the speculated plant shut downs might not happen as quickly as expected.

https://www.trainorders.com/discussion/read.php?1,5725448,5725448#msg-5725448

This is good news, since USS has been wanting to enter the DRI game for awhile (esp. since they went big for EAF steelmaking). They even toyed with the idea of switching to a granulated iron process at Granite City a few years ago. Now this will likely spell a sooner retirement of the blast furnace at GC, but will move them squarely into the new epicenter of modern steelmaking developing in the south. This is better in the longterm for a variety of reasons, not the least of which is the emergence of auto assembly in the region...

JG

SCAX3401 Wrote:
-------------------------------------------------------
> The plant in Arkansas is right next to the
> Mississippi and there appears to be a sizeable
> barge operation there so iron-ore movement by
> barge is a definite possibility.


Where would the transfer take place between rail and barge?? Calumet Harbor in Indiana lake freighters to barge?



Edited 1 time(s). Last edit at 04/30/26 07:42 by CP8888.

CP8888 Wrote:
-------------------------------------------------------
> Where would the transfer take place between rail
> and barge?? Calumet Harbor in Indiana lake
> freighters to barge?

I thought about this and that's the first thing that popped into my head. USS already ships the DRI-grade pellets to Gary and puts them on the ground. It wouldn't be much to build an operation to transfer more pellets to a barge or even rail from there to Arkansas. I have no knowledge of how it will turn out, but my guess is if any rail is used it will only be from the lakeshore down to BRS...

JG

Thanks for calling the Arkansas operation out as Big River Steel (BRS).

I know nominally the Arkansas property was divided but I don't know what's BRS and what will be another USS comapny in the future, assume it's just a number game. But there are two different oxygen supplies there now, one Air Products and one BRS-owned, that's my world.

Watching whatever happens with great anticipation!

Rich

RichM Wrote:
-------------------------------------------------------
> Thanks for calling the Arkansas operation out as
> Big River Steel (BRS).
>
> I know nominally the Arkansas property was divided
> but I don't know what's BRS and what will be
> another USS comapny in the future, assume it's
> just a number game. But there are two different
> oxygen supplies there now, one Air Products and
> one BRS-owned, that's my world.
>
> Watching whatever happens with great
> anticipation!
>
> Rich

I believe the Big River Steel identity was kept separate from US Steel because of the union issue.  BRS is non-union, USS is union and the union had a big say in the Nippon takeover, "Golden Share" etc arrangement.  

CP8888 Wrote:
-------------------------------------------------------
> SCAX3401 Wrote:
> --------------------------------------------------
> -----
> > The plant in Arkansas is right next to the
> > Mississippi and there appears to be a sizeable
> > barge operation there so iron-ore movement by
> > barge is a definite possibility.
>
>
> Where would the transfer take place between rail
> and barge?? Calumet Harbor in Indiana lake
> freighters to barge?


I have always been completely mystified by all rail movements not being competitive with rail/barge or especially rail/barge/rail movements. It sure seems like a sharp operator could make all rail an absolute slam dunk.

Posted from iPhone

junctiontower Wrote:
-------------------------------------------------------
> CP8888 Wrote:
> --------------------------------------------------
> -----
> > SCAX3401 Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > The plant in Arkansas is right next to the
> > > Mississippi and there appears to be a
> sizeable
> > > barge operation there so iron-ore movement by
> > > barge is a definite possibility.
> >
> >
> > Where would the transfer take place between
> rail
> > and barge?? Calumet Harbor in Indiana lake
> > freighters to barge?
>
>
> I have always been completely mystified by all
> rail movements not being competitive with
> rail/barge or especially rail/barge/rail
> movements. It sure seems like a sharp operator
> could make all rail an absolute slam dunk.
>
> Posted from iPhone

But not so here, as the rivers flow south, with Mother Nature literally providing the horsepower to move this heavy freight.  It's almost free, save for the need of a tug, and locks.  But barely any power is needed to move the stuff, except in river curves, and docking.  It's always been the cheapest way to move freight--"down the river."

coach Wrote:
-------------------------------------------------------

>
> But not so here, as the rivers flow south, with
> Mother Nature literally providing the horsepower
> to move this heavy freight.  It's almost free,
> save for the need of a tug, and locks.  But
> barely any power is needed to move the stuff,
> except in river curves, and docking.  It's always
> been the cheapest way to move freight--"down the
> river."

At one point Canadian Pacific was railing Alberta crude to Missouri, and barging it down river to Louisiana.  A six to eight barge lash up can move a lot of oil, very cheaply. 

coach Wrote:
-------------------------------------------------------
> junctiontower Wrote:
> --------------------------------------------------
> -----
> > CP8888 Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > SCAX3401 Wrote:
> > >
> >
> --------------------------------------------------
>
> >
> > > -----
> > > > The plant in Arkansas is right next to the
> > > > Mississippi and there appears to be a
> > sizeable
> > > > barge operation there so iron-ore movement
> by
> > > > barge is a definite possibility.
> > >
> > >
> > > Where would the transfer take place between
> > rail
> > > and barge?? Calumet Harbor in Indiana lake
> > > freighters to barge?
> >
> >
> > I have always been completely mystified by all
> > rail movements not being competitive with
> > rail/barge or especially rail/barge/rail
> > movements. It sure seems like a sharp operator
> > could make all rail an absolute slam dunk.
> >
> > Posted from iPhone
>
> But not so here, as the rivers flow south, with
> Mother Nature literally providing the horsepower
> to move this heavy freight.  It's almost free,
> save for the need of a tug, and locks.  But
> barely any power is needed to move the stuff,
> except in river curves, and docking.  It's always
> been the cheapest way to move freight--"down the
> river."

Yes, but to me most of the savings is lost when you have to unload and reload, and then there equipment utilization and other parasitic costs. I don't believe John Kneiling bought the math, and I'm not sure I do either.