Wood Energy Group to Expand Operations, Relocate to LNW Railroad's New Iron Bridge Road Transload Facility

BOCA RATON, Fla.--(BUSINESS WIRE)--

The Wood Energy Group, Inc. (“Wood Energy”), a division of Banyan Rail Services Inc. BARA, today announced plans to expand operations and relocate to a 10-acre site at Louisiana & Northwest Railroad's (“LNW”) new Iron Bridge Road transload facility in Gibsland, LA. Wood Energy, one of the nation's largest railroad tie reclamation and energy generation operations, entered into a five year lease at the Iron Bridge Road facility. LNW is a subsidiary of short line railroad holding company, Patriot Rail Corp.

The move to a larger, more efficient site and an investment in new tie grinding equipment will streamline operations, reduce costs and position the company for growth, according to Wood Energy Group President Greg Smith. “Being based at the transload facility gives us numerous advantages that will improve customer service,” he said. The state-of-the-art facility will feature new grinding equipment. Wood Energy has worked with experts on plant design, such as Continental Biomass Industries Inc., to improve the operating efficiency of the Gibsland facility. The company expects to relocate before year end from its current three-acre site in Shreveport, LA.

Johnnie Raab, General Manager of the LNW, said, “We are pleased Wood Energy has chosen to locate here. The commitment is good news for the region, as well as for the LNW. It is a welcome example of how the railroad's revitalization is attracting new business and expanding economic opportunity in the area.” The new transload facility, which opened this past October, is part of a $3.3 million investment by Patriot Rail.

In 2010, Wood Energy, headquartered St. Louis, MO, reclaimed over 1.5 million railroad ties from Class I railroads. Following an agreement earlier this year with the Kansas City Southern Railway Company and Union Pacific Railroad, Wood Energy expects to reclaim over 2 million ties in 2012 and expects a growing demand for its service. The ties are ground and then sold to the energy co-generation market as a green source of biomass fuel for industrial plants and utilities.