Leveraging Our New Rail Spur: Driving Efficiency and Cost Savings for Our Customers
At MCMILLANCO, we’re always looking for ways to make our services more efficient and cost-effective for our partners. With our recent move to our new facility in Perrysville, Ohio, we’ve unlocked a powerful advantage for our warehousing and blending operations: a direct rail spur.
Why Rail Matters in Today’s Supply Chain
Transportation is one of the largest cost drivers in manufacturing and distribution. For decades, companies have relied heavily on trucks for freight movement. While trucks offer flexibility, they come at a premium—especially with rising fuel prices, driver shortages, and increased regulatory costs.
Rail, on the other hand, offers a compelling alternative:
- Lower Cost per Ton-Mile: Rail transport can be 3–4 times more fuel efficient than trucking, translating to lower freight costs.
- Bulk Capacity: A single railcar can move the equivalent of 3–4 truckloads, reducing the number of shipments required.
- Reduced Congestion & Emissions: Fewer trucks on the road mean lower environmental impact and fewer logistical headaches.
According to the Association of American Railroads, rail can cut transportation costs by up to 50% compared to trucking on long hauls. For bulk commodities—such as agricultural feedstocks, industrial powders, and raw materials—the savings can be even greater.
Real Cost Savings: Rail vs. Truck
Let’s break it down:
- Average truckload costs range from $3.50–$5.00 per mile (and higher for specialized freight).
- Rail transport can deliver similar loads for as little as $0.05–$0.10 per ton-mile.
- For a 1,000-mile haul of a 100-ton shipment, rail can save $10,000–$15,000 compared to trucking.
These savings add up quickly, especially for clients moving large volumes of raw materials or finished goods.
| MODE OF TRANSPORT | AVERAGE COST PER TON - MILE | EXAMPLE COST FOR 100 TONS OVER 1,000 MILES |
|---|---|---|
| TRUCK | $0.20 - $0.30 | $20,000.00 - $30,000.00 |
| RAIL | $0.05 - $0.10 | $5,000.00 - $10,000.00 |
| ESTIMATED SAVINGS | - | $10,000.00 - $15,000.00 |
Our Perrysville Facility: Designed for the Future
With our on-site rail spur, MCMILLANCO can now receive and ship products via rail directly to our warehouse and blending operations. This means:
- Faster inbound raw material handling – receive bulk materials like silica, hydrated lime, or grain directly by railcar.
- Lower outbound freight costs – ship blended and packaged goods more efficiently to customers nationwide.
- Seamless integration with our storage silos and packaging lines for bulk-to-bag transitions.
This rail capability gives our customers a competitive edge by lowering transportation costs, improving supply chain reliability, and enabling larger-scale projects without the limitations of truck-only delivery.
Ready to Put Rail to Work for You?
Whether you’re shipping bulk raw materials or finished products, MCMILLANCO’s Perrysville facility is ready to handle your freight needs—efficiently, cost-effectively, and at scale.
Contact Us today to learn how our rail spur can reduce your logistics costs and streamline your supply chain.