Big containers head to Bismarck

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Intermodal containers for Bobcat Co. should start shipping into the much-watched Northern Plains Commerce Centre within the next 10 days, management said.

But the city needs to find more companies to use the intermodal service for it to remain fiscally viable for Bobcat. Intermodal services describes containers that can be used in various modes of shipping, such as rail to truck to ship.

"(The cost is) in our planning parameters now,"said Dennis Schneider, vice president of global operations for Bobcat Co. in an interview with the Tribune. "But not long term. Five to 10 years from now, (the cost is)not satisfactory."

Schneider was the keynote speaker at the Bismarck-Mandan Development Association's annual meeting. He joined Bobcat Co. in February 2004 as vice president of manufacturing operations, and became vice president of global operations when Doosan Infracore, based in South Korea, purchased Bobcat, the North Dakota-based manufacturer of skid-steer loaders.

During his address, he explained the company's intention to speed up processes at Bobcat's Gwinner manufacturing plant, taking the process, from start to finish, creation of the machine to shipping it out, down to six hours.

And he also stressed the importance of having all supplies go in and out of one location, at the company's manufacturing sequestration center at NPCC. He said the community needs to continue to have a strong local supply base, work on its basic infrastructure and seek out highly trained, flexible workers.

Accountability is key, he said, noting that it took the city two years to secure an intermodal rail deal.

Sandi Tabor, Bismarck city commissioner, has said securing the rail deal for the center was much more difficult than anticipated.

"This transportation is a very complicated issue,"she said. "We've been very fortunate that our partnership with Bobcat and the business community in Bismarck is really going to pay off."

She added that the management company for the facility, Mallory Alexander, has helped work out a lot of details.

After a successful trial run near the end of 2007, Bobcat determined the facility at NPCC could begin slowly receiving intermodal containers, Aaron Girard, director of outbound transportation and logistics, said.

They plan to start with five to 10 containers, eventually increasing the number of containers as they become more confident with the process.

The NPCCwas intended as an intermodal transloading facility, built in part to help meet the growing transportation needs of Bobcat. The $15.9 million project is heading into its second phase of construction, culminating in the completion of a warehouse for the facility.

Girard said intermodal is key in their business, as it allows for synchronizing inbound and outbound traffic, which keeps inventory levels down. In the long run, it also could contribute to lower costs, although, as Schneider also pointed out, the rail system will need more clients and traffic to reduce costs.

"As the NPCCcontinues to grow with more clients and more customers, that material flow and velocity can help lower everyone's costs,"he said.

He added that Bobcat is very optimistic about the facility and continues to look to the future.

The transloading facility had expected a tenant in Canadian-based Saskan Pulse Trading, a peas and lentils processing and supply company that headquartered its U.S. operations in Bismarck. The company, called United Pulse Trading in the U.S., had planned on building a state-of-the-art processing plant at NPCC, but held off on investing while the city worked on the intermodal rail deals.

Their goal is to be the nation's leader in supplying peas and lentils, said United Pulse Trading Executive Director Eric Bartsch. Again, with this company, logistics and transportation is key.

The company eventually purchased a processing facility in Williston, which has everyday rail service on the main line. From there, product is shipped to a facility where it's transloaded into intermodal containers and shipped around the world.

"Logistics is key to us,"Bartsch said. "We're watching what's happening in Bismarck, what's happening throughout our region."

Tabor said Mallory Alexander continues to look for clients for the facility, and that Bobcat's success will set a good example.

"We're still working,"Tabor said. "One of Mallory Alexander's jobs for us is to continue to market the center, not just helping Bobcat but to build up that transload business."

(Reach reporterCrystal R. Reid at 250-8261 or at crystal.reid@bismarcktribune.com)

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