Wood Energy Group to Expand Operations, Relocate to LNW Railroad’s New Iron
Bridge Road Transload Facility
BOCA RATON, Fla. -- November 10, 2011
The Wood Energy Group, Inc. (“Wood Energy”), a division of Banyan Rail
Services Inc. (OTCBB: BARA), today announced plans to expand operations and
relocate to a 10-acre site at Louisiana & Northwest Railroad’s (“LNW”) new
Iron Bridge Road transload facility in Gibsland, LA. Wood Energy, one of the
nation’s largest railroad tie reclamation and energy generation operations,
entered into a five year lease at the Iron Bridge Road facility. LNW is a
subsidiary of short line railroad holding company, Patriot Rail Corp.
The move to a larger, more efficient site and an investment in new tie
grinding equipment will streamline operations, reduce costs and position the
company for growth, according to Wood Energy Group President Greg Smith.
“Being based at the transload facility gives us numerous advantages that will
improve customer service,” he said. The state-of-the-art facility will feature
new grinding equipment. Wood Energy has worked with experts on plant design,
such as Continental Biomass Industries Inc., to improve the operating
efficiency of the Gibsland facility. The company expects to relocate before
year end from its current three-acre site in Shreveport, LA.
Johnnie Raab, General Manager of the LNW, said, “We are pleased Wood Energy
has chosen to locate here. The commitment is good news for the region, as well
as for the LNW. It is a welcome example of how the railroad’s revitalization
is attracting new business and expanding economic opportunity in the area.”
The new transload facility, which opened this past October, is part of a $3.3
million investment by Patriot Rail.
In 2010, Wood Energy, headquartered St. Louis, MO, reclaimed over 1.5 million
railroad ties from Class I railroads. Following an agreement earlier this year
with the Kansas City Southern Railway Company and Union Pacific Railroad, Wood
Energy expects to reclaim over 2 million ties in 2012 and expects a growing
demand for its service. The ties are ground and then sold to the energy
co-generation market as a green source of biomass fuel for industrial plants
Banyan Rail Services Inc.
Alex Redfearn, 561-443-5300
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