Genesee & Wyoming Opens Dillard Transload Facility Oregon

DILLARD, USA – Genesee & Wyoming subsidiary Central Oregon & Pacific Railroad (CORP) has commenced operations at a new bulk transload facility in Dillard, Oregon. The terminal is designed to transfer materials between trucks and rail, featuring a five-car handling capacity and daily weekday service. The site also includes a 20-car storage track and a small warehouse to support local industries, primarily lumber shippers.

What Is the Full Scope of This Project?

The Dillard Transload Facility is a new terminal developed by CORP to expand freight services for industrial shippers in southern Oregon not located on a rail line. Its core infrastructure includes track space to unload and reload five rail cars at once, a 20-car storage-in-transit track, and a small online warehouse for just-in-time product staging. While initially focused on handling lumber from center beam cars or boxcars, the operator has stated the facility can be adapted for other bulk commodities. The total investment value for the project was not disclosed.

Key Project Data

How Does This Compare to Similar Projects?

The Dillard facility’s scale, with a five-car capacity and 20-car storage track, is typical for a regional shortline investment designed to capture local industrial markets. This model aligns with parent company Genesee & Wyoming’s broader “Choice Terminal” transload network strategy, which establishes similar sites across its North American portfolio. For instance, G&W’s Indiana & Ohio Railway opened a comparable Choice Terminal in Elkhart, Indiana in 2023, also focusing on transloading construction and building materials to serve regional customers not directly rail-served. (Source: Genesee & Wyoming, 2023).

Editor’s Analysis

This investment underscores the strategic importance of “first-mile, last-mile” logistics in the North American freight market. By providing an accessible transloading point, G&W captures revenue from truck-dominant supply chains and integrates them into the more cost-effective long-haul rail network. This move is part of a wider industry trend where rail operators are investing in intermodal and transload infrastructure to compete more effectively with trucking, particularly as road congestion and driver shortages persist. (Source: Association of American Railroads, 2024).

FAQ

Q: What specific industries will the Dillard facility serve?
A: The terminal is primarily designed to handle lumber products from center beam rail cars and boxcars, catering to the significant forestry and wood products industry in southern Oregon. CORP has stated the facility is adaptable for other bulk commodities based on customer demand.

Q: What is the strategic advantage of this facility’s location?
A: The facility is located directly off Interstate 5, a major highway on the U.S. West Coast, and is approximately one hour from the coast. This positioning allows it to efficiently aggregate freight from trucks for long-haul rail shipment and serve coastal businesses that previously lacked direct rail access.

Q: Is this part of a larger investment strategy by Genesee & Wyoming?
A: Yes, this project is consistent with Genesee & Wyoming’s strategy of developing a network of “Choice Terminal” transload sites across its shortline and regional railroads. These terminals aim to expand the company’s customer base by offering rail access to businesses without their own private sidings.