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Krispy Kreme Doughnut Corp. is building a packaging and distribution center in Effingham, Ill. — good news for two-mile Effingham Railroad Co.

That's because the 187,000-square-foot facility will be located in Enterprise Rail Park, which is serviced by the short line with connections to CSX Transportation and Canadian National Railway Co.

The city of Effingham, which provided a grant for a Krispy Kreme rail spur, recently awarded a spur construction contract to Granville, Ill.-based Heartland Track Works Inc. The spur is expected to be complete in mid-November.

Krispy Kreme is constructing a rail shed, where Effingham Railroad daily would inbound seven cars to move raw materials.

The doughnut retailer's facility — designed for doughnut-mix blending, packaging and distribution — is scheduled to be complete in June 2002.