Finkl Steel Sold, Leaving North Side Location

[TBurke]

According to an article in Crains Chicago Business\' online edition today, Finkl Steel has been sold to a German steel company and will shut down its North Side plant at Cortland and the river.  Operations will move to another site.  Apparently Finkl ran out of room at their current location which dates to 1902.

My guess is that NIMBY pressure from Lincoln Park neighbors and developers had something to do with it.  Steel plants and upscale homes and shops don\'t always mix well.

The big question now is how does it affect the plans of startup shortline operator Chicago Terminal Railroad (part of the Iowa Eastern holding company)?  Will they renegotiate with CP Rail for better terms?  Or did they know Finkl would be moving?

I estimate that Finkl accounted for about 125 carloads per year-a large percentage of these former Milwaukee Road lines.

On the other hand, General Iron Industries is still a huge shipper of scrap metal while Sipi Metals, Peerless Confectionary, and Big Bay Lumber chip in as well.  The new shortline might attract new shippers on Goose Island or elsewhere for transload purposes as is speculated.

[tom mann]

Big news indeed.  Hopefully, we can get an exact date of the last shipments and document it.

------------
Thomas Mann
http://www.chicagoswitching.com

[GM]

The bigger question is if General Iron will stay without Finkl being there. Chances are the forces working at residential/business development in the area will not want General Iron or any scrap yard around ruining property enhancements or river views/access. Given the few businesses left served by the line you have to wonder if the pressure will be to end all service for the area. Hope not, will be the end of another era. The biggest hope would be service to Goose Island increasing. Seems though like CP knew what was coming and got out while the going was still good. Trends seem to be for moving such industries out of the City to surrounding areas.

quote:Originally posted by TBurke

According to an article in Crains Chicago Business\' online edition today, Finkl Steel has been sold to a German steel company and will shut down its North Side plant at Cortland and the river.  Operations will move to another site.  Apparently Finkl ran out of room at their current location which dates to 1902.

My guess is that NIMBY pressure from Lincoln Park neighbors and developers had something to do with it.  Steel plants and upscale homes and shops don\'t always mix well.

The big question now is how does it affect the plans of startup shortline operator Chicago Terminal Railroad (part of the Iowa Eastern holding company)?  Will they renegotiate with CP Rail for better terms?  Or did they know Finkl would be moving?

I estimate that Finkl accounted for about 125 carloads per year-a large percentage of these former Milwaukee Road lines.

On the other hand, General Iron Industries is still a huge shipper of scrap metal while Sipi Metals, Peerless Confectionary, and Big Bay Lumber chip in as well.  The new shortline might attract new shippers on Goose Island or elsewhere for transload purposes as is speculated.

GM

[Brianbobcat]

I feel like this thread could use an update.  So yes, Finkl will be moving to the south side, but 6 years after this news originally broke, they 1. still haven't moved but 2. Peerless has left.  General Iron and Big Bay are still there, but who else does CTR serve?  Is Finkl still on that list?

[TBurke]

Chicago Terminal still services Finkl and on rare occasion, Sipi Metals.

[cnwnorthline]

BTW the new Finkle is indeed being built: http://www.flickr.com/photos/dwdavidson/6782376388/in/photostream/