Indiana short line takes wraps off long-in-the-making transload facility
1/17/2025
By Jeff Stagl, Managing Editor
Last year ended on a very high note for the Madison Railroad. The short line completed a transload facility in Madison, Indiana, capping off a project that took more than two years to develop.
The project involved constructing 3,700 feet of new track, installing four turnouts and surfacing about one mile of track.
Madison Railroad acquired property for the transload facility in 2022. Owned by the city of Madison and a division of the Madison Port Authority, the short line operates a 22.7-mile mainline between Madison and North Vernon, Indiana, and interchanges with CSX.
The $1.8 million transload facility had advanced in phases starting in August 2022, with the bulk of the project completed at the end of December 2024. Additional phases are planned for 2025 and beyond based on demand.
The facility significantly enhances rail access for industrial customers in Madison, southern Indiana and the northern Kentucky region, Madison Railroad officials say. The short line previously didn’t have a flexible facility in Madison that could be used for transloading until it purchased the transload property several years ago.
“At that time, we just had one track and a short access road to work with,” said Madison Railroad General Manager Adam Robillard in an email. “We decided that in order to capture any growth in the transloading business, we should have a plan that allows for ample material laydown space, truck access, security improvements and track arrangements that can be configured for any type of transloading need.”
Owned by the city of Madison, the short line operates a 22.7-mile mainline between Madison and North Vernon, Indiana, and interchanges with CSX. Madison RailroadThe short line designed a five-track transload facility and built the first three tracks last year to better handle existing business, while creating additional capacity to promote traffic growth, he said.
The project has enabled Madison Railroad to gain one new freight customer and better accommodate the needs of Road & Rail Services, which required expanded track space for rail-car repairs. The short line’s freight-car repair partner in the project, Road & Rail Services provides car and locomotive repair services in Madison.
The service provider now can consolidate its car repair projects on two 1,100-foot tracks within one facility. The company previously leased two tracks in separate areas for repair work, which caused inefficiencies in their operations and operational difficulties for the railroad, said Robillard.
“They’ve been able to consolidate all of their operations to one area, improving efficiency and safety for their employees,” he said.
In addition, Madison Railroad’s transload customers and employees will benefit from the expanded material staging area and significantly increased rail-car capacity for transloading, Robillard stressed.
“New customers interested in transloading will have the opportunity to move forward with those plans at this facility,” he said. “Additional commodities, such as lumber, can now be handled more efficiently and safely.”
The transload facility currently handles coal byproducts (such as fly ash), lumber and all rail-car types, but it’s also designed to accommodate plastics, salt, steel and other bulk commodities.
The transload facility currently handles coal byproducts (such as fly ash), lumber and rail cars, but also is designed to accommodate plastics, salt, steel and other bulk commodities. Madison RailroadThe Indiana Department of Transportation provided a combined $500,000 for the project through two separate state grants, which were a part of an industrial rail service fund program. The remainder of project costs were covered by the railroad, facility users and Road & Rail Services.
Madison Railroad offers daily switching services at the facility and access to the North American rail network via CSX. In addition, new rail-ready sites are available in the vicinity for businesses seeking shovel-ready development opportunities.
“Southeast Indiana is experiencing robust industrial demand for rail services, and capturing this growth requires ongoing investment, dependable operations and an unwavering commitment to safety,” said Robillard.
