New steel mills in Arkansas, Texas to boost traffic for three Class Is
2/23/2022
By Jeff Stagl, Managing Editor
Two major events in the U.S. steelmaking industry that occurred on Feb. 9 have major traffic-building implications for three Class Is.
For BNSF Railway Co., U.S. Steel Corp.’s (USS) development of Big River Steel Works in Osceola, Arkansas, is anticipated to generate more carloads in a couple of years.
The steelmaker broke ground Feb. 9 on a $3 billion electric arc furnace (EAF) steel mill in Osceola adjacent to its Big River Steel plant. To open in 2024, the new mill will be paired with the existing facility to form Big River Steel Works.
BNSF, which already serves the existing plant, will service the new mill, too. The new facility will be the most advanced steel mill in North America and the largest private project in Arkansas, USS officials said in an online post.
The mill will feature two EAFs and be equipped to produce 3 million tons of steel per year. The plant also will employ an endless casting and rolling line — the first use of such technology in the United States, USS officials said. An endless casting and rolling line offers significant energy, efficiency and capability enhancements, they added.
BNSF acknowledges the efforts of state and public partners to diligently progress the permitting process for the mill, which will create new jobs and economic growth for Arkansas and the surrounding region, wrote BNSF spokesman Ben Wilemon in an email. The site is ideally situated to tap multiple modes, he said.
UP is one of two Class Is that directly serve Steel Dynamic’s new mill near Corpus Christi, Texas, which opened in early February. Union Pacific Railroad“This location provides a key access point to our network with connections to Mississippi River docks and the interstate highway system,” Wilemon wrote.
BNSF also indirectly serves USS plants in Granite City, Illinois, and Gary, Indiana, via short lines and handling carriers.
Meanwhile, Steel Dynamics Inc.’s newly minted EAF mill in Sinton, Texas, is expected to generate more carloads for BNSF and two other Class Is. The $1.9 billion, 1.2 million-square-foot facility — considered the largest steel mill in Texas — officially opened on Feb. 9 with a ribbon-cutting ceremony. Construction began in November 2019.
Located near Corpus Christi, the flat-rolled steel plant is designed to produce about 3 million tons of steel annually — such as coils weighing up to 52.5 tons — and manufacture the latest generation of advanced high-strength steel products. The mill will produce both hot-rolled and cold-rolled coil, and hot-dipped galvanized products.
The mill is directly served by BNSF and Union Pacific Railroad, while Kansas City Southern provides transloading options. The plant is situated near major U.S. highways and can access the Port of Corpus Christi.
