Hibbing Taconite said Friday that the slowdown in U.S. rail service has forced it to begin hauling taconite pellets by truck to Duluth-Superior Harbor to supply customers and reduce a massive stockpile at the plant.
"This action will ensure … steelmaking customers on the lower Great Lakes will have an adequate supply of pellets to maintain steelmaking operations," company officials said in a statement.
For about two months, Hibbing Taconite expects to load its iron-ore pellets onto 100 trucks 24 hours a day, seven days a week. The company said it "needs to take immediate steps to fulfill its commitment to supply iron ore pellets to its customers."
The pellets are loaded onto ships in the harbor and taken to steel customers across the Great Lake states.
At a recent Senate Commerce, Science and Transportation Committee hearing, U.S. Sen. Amy Klobuchar said that Minnesota companies have 2 million tons of taconite pellets ready to be shipped but stored in stockpiles because of rail delays.
Many rail shippers, including coal companies, electric utilities and grain farmers, have complained of delays, with some blaming the congestion on oil-train traffic from North Dakota. On Wednesday, the U.S. Surface Transportation Board declared that "service disruptions have hindered nearly all carriers," and ordered major railroads to submit detailed weekly reports about congestion.
Lourenco Goncalves, CEO of Hibbing's parent, Cliffs Natural Resources, asked for patience from the community affected by the uptick in local truck traffic between Hibbing, Minn., and the Allouez Dock in Superior, Wis.
He said Cliffs officials have been discussing the problem with rail carriers for some time. He said he is optimistic the recent talks will help improve the situation.
