Charlotte Pipe's new plants pose more carloads for North Carolina short line, Kansas regional
11/10/2023
By Jeff Stagl, Managing Editor
A short line in North Carolina recently gained carloads while a regional in Kansas expects to do the same in less than two years because of new facilities developed by Charlotte Pipe and Foundry Co.
In late October, Charlotte Pipe opened a $460 million, state-of-the-art foundry in Oakboro, North Carolina, that’s served by the Aberdeen Carolina and Western Railway (ACWR). The sprawling facility covers 11.5 acres of roofed area and is situated on 700 acres.
Located about 35 miles east of the cast-iron foundry Charlotte Pipe has operated in uptown Charlotte for more than 100 years, the facility employs 530 people.
Charlotte Pipe — one of the nation's leading producers of cast-iron, plastic pipe and fittings for plumbing applications — needed one of the largest and most technologically advanced operations in the world to grow its business, ACWR officials say.
The new foundry provides a more efficient layout, is equipped with better and more modern equipment, and is designed with flexibility in mind since it can be expanded to meet future needs, Charlotte Pipe officials stress.
A family-owned business, ACWR is the largest privately held short line in North Carolina and is centrally located between all major metropolitan areas in the state. The railroad’s line runs 150 miles from Charlotte toward Raleigh and extends south toward Pinehurst. The short line interchanges with Norfolk Southern Railway in Charlotte and CSX in Aberdeen.
The North Carolina short line operates 150 miles of track between Charlotte, Raleigh and Pinehurst, and interchanges with CSX and Norfolk Southern Railway. Aberdeen Carolina and Western RailwayACWR — which also provides transloading, industrial site development and locomotive/rail-car repair services — hauls numerous commodities, including aggregates, brick, butane, dimensional lumber, ethanol, plastics, poultry, propane and wood chips.
Charlotte Pipe’s use and recycling of scrap steel will add a new commodity to the railroad’s diverse portfolio, ACWR officials say. Moreover, the foundry promises potential future business growth for the short line with Charlotte Pipe vendors that supply and support the plant, they add.
In April 2019, Charlotte Pipe leaders decided to replace the company’s plant in Charlotte with the new foundry. However, ACWR officials have held discussions about the move with Charlotte Pipe leaders for the past 10-plus years, says ACWR Director of Business Development Paul Hoben.
Charlotte Pipe added a rail spur to connect the new plant to the short line. ACWR performed some of the construction work on the spur, says Hoben.
The short line’s connection to NS provides the Oakboro foundry rail access to move recycled materials to and from the Eastern Seaboard and Midwest, Charlotte Pipe officials say.
The foundry has Class I access to NS and CSX, but Charlotte Pipe currently is only using NS, says Hoben.
Come early 2025, the Kansas & Oklahoma Railroad expects to begin serving Charlotte Pipe and Foundry’s new $80 manufacturing plant in Maize, Kansas. Watco “I know discussions between Charlotte Pipe and CSX are ongoing,” he says.
The foundry handles both inbound and outbound rail traffic. Inbound loads primarily are scrap metal and foundry sand, while outbound traffic mostly is finished steel pipe, says Hoben.
Although it took years to be realized, the new plant’s timing is perfect for the short line, ACWR President Jennifer White believes.
“We look forward to a long relationship with Charlotte Pipe,” she says.
Ditto for Watco, K&O
So does Watco and its Kansas & Oklahoma Railroad (K&O) subsidiary.
In May, Charlotte Pipe purchased 80 acres in Maize, Kansas — a Wichita suburb — for a new $80 million manufacturing facility. The plant will be served by the K&O after it opens in early 2025.
The facility will expand the company’s operations in the Midwest, Charlotte Pipe officials say. Construction is slated to start in January 2024.
When the 134,000-square-foot plant opens, K&O will provide vital rail transportation service that will support the production of PVC pipes for plumbing and irrigation applications, Charlotte Pipe officials say.
K&O operates 974 miles of track in central and western Kansas. The regional interchanges with BNSF Railway Co., Union Pacific Railroad, and the South Kansas and Oklahoma Railroad.
Serving as a single-source transportation and supply-chain services company, Watco is a pivotal partner in addressing the company’s rail needs, Charlotte Pipe officials say. The upcoming new business is pivotal to the short-line holding company, as well, helping to fulfill its approach to growth, according to Watco.
“Partnerships such as this highlight how thoughtful teamwork leads to success and longevity in community and business,” says Watco Sales Director Casey Harbour.
