Sept. 17, 2014
Esmark to Convert OCRC to Transportation Terminal
Esmark Inc. plans to convert the former Ohio Cold Rolling Co. steel finishing mill in Yorkville, Ohio, into a tri-modal industrial services terminal to support companies engaged in oil and gas exploration and production in the Marcellus and Utica shale plays. Esmark acquired the former steel finishing mill two years ago and recently announced its closing.
The company is in the process of repurposing the million-square-foot facility into the newly named Yorkville Energy Services Terminal, offering rail, truck and barge logistics and transportation services to companies serving the shale plays in Ohio, Pennsylvania and West Virginia. Esmark expects to have a staggered opening by mid-October, with tenants coming online into November.
James P. Bouchard, chairman and CEO of Esmark Inc., says market dynamics, pricing disparities in the hot-rolled steel and tinplate markets, and the explosive growth of oil and gas exploration in the region were key factors in the decision to transform the facility. "The steel services industry has changed dramatically since Esmark acquired the Yorkville finishing mill in 2012, and we believed the idled facility was ideally suited to serve companies engaged in oil and gas exploration and production," he says. "With its on-site rail, truck and barge access and complementary heavy equipment, Yorkville Energy Services Terminal offers companies a fully integrated logistics and transportation solution."
J. Gregory Pilewicz, president of Yorkville Energy Services Terminal, says the market opportunity is driven by several powerful trends, including the forecast of continued growth in the Marcellus and Utica shale formations' drilling and exploration fields. "The significant upstream, midstream and downstream expansion, coupled with the resources required for horizontal drilling in the region, provide a strategic opportunity for the terminal. We believe our tri-modal platforms and services infrastructure will be in great demand."
Pilewicz says a number of large and midsized energy services companies are interested in locating at the Yorkville terminal, including companies engaged in material handling and trans-loading, rail switching and stowage, fresh water services, field lay-down, production flow-back water treatment and chemical store and forward. Discussions with several prospective tenants are under way, the company claims.