CHICAGO MoveTran LLC,
founded by former RG Steel LLC employees, is launching a
transloading and logistical services operation in a high-end
The company will handle steel
coil, pipe and tube, aluminum and other products, president
Damon Gunter told AMM Monday.
MoveTran has signed a three-year
lease with Heidtman Steel Products Inc. to use a
206,700-square-foot warehouse in Baltimore for the start-up.
Heidtman, which processed steel for RG Steel and others at the
amm.com, July 5), has agreed to sell the property
to MoveTran when the lease expires.
MoveTran has four partners,
three of whom worked at RG Steel. Gunter was division manager
for supply chain and logistics at the shuttered Sparrows Point,
Md., steelmaking complex.
"We are turning the service
center into a transloading facility," Gunter said. RG Steel
typically moved 280 inbound and outbound truckloads per day, he
said, but "because RG is no longer operating, truckers have
increased their pricing to come to the East Coast because they
dont have backhauls."
MoveTran wants to save steel
mills and their customers freight costs by encouraging them to
ship by rail. Its facility is serviced by both CSX Corp. and
Norfolk Southern Corp., and rail lines run directly into the
"They can send coils by rail and
we can unload and redistribute them throughout the Mid-Atlantic
and East Coast," Gunter said. "You are looking at a $30-per-ton
savings in supply chain costs," although that will vary
depending on where the coils originate: Chicago, Cleveland or
Berkeley, S.C., for example. "We can also receive coils from
overseas and load to rail cars or trucks to ship
Gunter said the company is in
the process of lining up customers. "We are talking to all the
big steel mills," he said. One of its first customers is
shipping 200 containers to be unloaded, or "stripped" in
The facility features four
74-ton overhead cranes, one 25-ton crane, a 50,000-pound
forklift, three 15,000-pound forklifts, six drive-through doors
and a loading dock that can accommodate 40-foot containers. "A
lot of traders do container work," Gunter said.
Due to its proximity to the Port
of Baltimore, MoveTran will study the feasibility of "turning
part of the facility into a foreign trade zone," he added.
Start-up costs range from $1.5
million to $2 million, according to Gunter, who said Heidtman
helped MoveTran to obtain financing.
MoveTran expects to employ 20
people during ramp-up starting Jan. 1 and eventually hopes to
operate 24/7 with the help of a large trucking firms
on-site agent, Gunter said. When fully ramped up, the facility
could handle 40,000 to 60,000 tons of metal per month.